Royal Vopak has announced the acquisition of a company with two distribution terminals for the storage and handling of refined products in
Montreal and
Quebec City, Canada.
With the acquisition, Vopak Canada's storage capacity increases by 509,000 cubic metres (cbm) to 712,000 cbm, while strengthening its presence in strategic distribution market locations in eastern Canada.
Vopak said the acquisition forms part of its global strategy to further strengthen its leading position in the development of import and distribution terminals in areas with structural deficits in the refined product markets.
The acquired company, known as
Canterm Canadian Terminals Inc., was previously owned and operated by
TransMontaigne Inc. The company and its assets were acquired by Vopak through a tender process. As of today, both terminals will be owned and operated by
Vopak Canada.
The newly acquired Vopak terminals in Montreal and in Quebec City have a storage capacity of 339,000 cbm and 170,000 cbm respectively. Following the completion of an expansion project under construction of 72,000 cbm in Montreal, expected to be commissioned in the first quarter of 2015, the acquired terminals will have a combined storage capacity of 581,000 cbm (3.74 million barrels).
Both ports are located on the banks of one of the largest navigable waterways in the world, the Saint Lawrence river, the main shipping route to and from the Great Lakes.
According to Vopak, Montreal is "the best location" for imports of refined products following recent refinery closures in the region. The port of Quebec City offers deep water access.
"With the addition of the new terminals on top of the existing Vopak terminals in Hamilton and Montreal, Vopak Canada will have a competitive market offering, and benefit from commercial synergies. The acquired terminals will be integrated into the current Vopak Canada organization," Vopak said.
