Capacity and market sensitivity
There is a potential ‘opportunity loss’ if Vopak is unable to meet customer demand because of insufficient storage capacity. In general terms, the opposite is also possible; during an economic downturn, there is a risk of surplus capacity relative to the demand for tank storage, which would have an adverse effect on results. The geographical distribution of 74 terminals in 30 countries mitigates this risk. Furthermore, capacity changes are the result of a clear strategy based on insight into global product flows, developments at customers and competitors and new product developments, such as biodiesel, bio-ethanol and LNG. To take maximum advantage of opportunities, Vopak’s growth strategy follows different lines, including expansion of existing capacity, development of new sites and acquisitions. Management consistently and continually reviews these developments to fine-tune the strategy where necessary.
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