Quenching China's thirst for petrochemicals
Nowhere in the world is the outlook for the petrochemical industry more robust and dynamic than it is in China.
China is the chief growth driver of the global petrochemical industry and is likely to become the world leader in production within the next decade. In 2005, capital spending on petrochemical production in China totalled an estimated $36 billion (€26 billion) - the highest in the world. In many ways, the industry is on a growth track that is impressive even in the context of China's overall expansion. But growth rarely comes without growing pains. As China's imports of petrochemicals continue to rise, as domestic production continues to accelerate, and as export growth surges, issues of storage and transportation become increasingly acute.
The problem is a potentially serious one: the tight supply of petrochemical tankers - a situation unlikely to change in the immediate future - could affect the industry itself. Fortunately, ships are not the only factor in the equation.
'The petrochemical
transportation challenge in
China is essentially a supplychain
optimisation issue,'
notes Walter Wattenbergh, MD
of Stolthaven Terminals.
'Given the limited number of
ships and the huge and
growing volumes of
petrochemicals flowing into
and, increasingly, out of
China, the key is to focus on
increased efficiencies across
the entire length of the supply
chain. We must seek - if not
invent - new ways to make
the most of existing shipping
assets by leveraging other
resources and capabilities.'
