Contanda Terminals – formerly Westway Terminals – explain how their new name supports their ambition to significantly increase their petrochemical and hydrocarbon storage portfolio
With a new name comes new opportunities to grow into flourishing product markets. Contanda Terminals, the new name for Westway Terminals, reflects the company’s ambitions to focus more on petrochemical and hydrocarbon markets by at least doubling its storage capacity over the next five years.
Previously, the company was steered towards the agricultural industry but its new strategic direction has expanded and it is now broadening its product line into these markets. The availability of crude oil and natural gas in the US, spurred on by the shale oil revolution, has created long-term investment in petrochemicals – and it is this market shift that Contanda is seeking to capitalise on.
In an interview with Tank Storage Magazine G.R. ‘Jerry’ Cardillo, president and CEO of Contanda, explains his ambitions for the company as well as an update on its current and future terminal developments
Why have you embarked on a rebranding and what does this signify for the company?
Prior to the name change, Westway Terminals was originally owned by ED&F Man. After the separation in 2013 the image and expectations continued to lead Westway Terminals toward the agricultural industry. Our strategic direction has expanded and the new name gives us a new beginning while leveraging the foundation that was built by Westway Terminals.
The name ‘Contanda Terminals’ is a new beginning for broadening our product line to include petrochemical and hydrocarbon products, while continuing to provide innovative services, and serving new and expanded markets.
We will build on our legacy of safety, service and quality while we remind our existing and new customers that Contanda has the expertise to expand into the petrochemical and hydrocarbon markets.
How is Contanda positioned to take advantages of the small, niche plays that have emerged as a result of the investment in petrochemicals?
Contanda Terminals has recently relocated our corporate headquarters to Houston, Texas where we are closer to our customers. Our staff has been expanded to include extensive industry experience in specialty chemicals, pipeline connectivity, terminal construction and more. Our foundation of expertise remains strong and will continue to grow but this expanded knowledge base offers our customers the confidence in handling their wide range of products by offering heating, chilling, blending, vapour controls, trans-loading and 24/7 operations.
Can you provide an update on the multi-phase project in Houston to construct a petrochemical hub as well as your four additional development projects in Sioux City, Port Allen, Stockton, Baltimore and Toledo?
We have completed the purchase of Contanda Steel in the Houston Ship Channel. This location will give us the opportunity to offer deep water access for specialty chemicals to include vapour controls, blending, heating, chilling and so on while continuing with the steel terminal services. We are expecting to break ground during the first half of 2017, with operations set to begin during the second half of 2018.
We have successfully completed our railcar storage project in Sioux City. Our projects in Port Allen, Stockton, Baltimore and Toledo are in various design phases and we expect to have certain projects underway by the second half of 2017 – if not earlier in some locations.
Do you see any potential to add another petrochemical hub in the Mid-Continent?
Contanda Terminals plans to build a state-of-the-art facility to offer efficient unit train access, pipeline access and the opportunity for customers to assist with the design of their specific system.
What are your ambitions for the future of Contanda Terminals?
The expanding growth in the petrochemical markets as a result of the surge in shale gas production is something that we want to focus our business growth on going forward. Our existing storage portfolio consists of 35% petrochemical and energy focused with the remaining products focused on base oils, food grade products, methanol, acids, caustics and agriculture. Over the next 5 years Contanda will significantly increase the volume of petrochemical and energy based storage through the planned greenfield and organic projects with the expectation to double or possibly triple our storage capacity.
What future developments are planned for the company?
We are focused on developing in areas where are customers have indicated they require storage and as such our efforts are focused on the Gulf of Mexico region. However, project discussions have started in locations in the North East, West Coast and Mexico.
What are the strategic advantages of the locations of your terminals?
In the Gulf Coast region we offer strategic locations for various production facilities, easy access to highways and deep water/river access. In the North East we offer storage opportunities outside of the congested New York Harbour region.
In the South East we offer the only public terminal in the Jacksonville area servicing Florida and the lower East Coast region. In the Midwest we offer easy access to Canada at our Toledo Riverdale and St. Paul locations; our Sioux City terminal provides bulk liquid storage and extensive trans-loading
opportunities and our Cincinnati Terminal offers river access from the Gulf of Mexico.
Our Hamilton Canada terminal offers water access and easy access to the US and on the West Coast we offer deep water access with access to Canada and an alternative to the congested West Coast port markets.
All of the markets we operate in are competitive but we see that tank and dock availability continue to be in demand in various Gulf Coast and West Coast markets.
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