World Point Terminals (WPT) – a Delaware Limited partnership – has paid US$14 million in cash for two terminals in Mobile, US, with a total shell capacity of 1.82 million barrels.
But it will have to fork out an extra US$8million-US$12 million in capital expenditure to bring both terminals – Blakely Island and Chickasaw – up to full operational capacity. This includes the purchase of the land that is currently leased.
With a total storage capacity of 1,182,000 barrels for the storage of crude oil, distillates and residual fuels, the Blakeley Island terminal is currently served by ship and barge, and has the ability to add truck access. None of the tankage is currently under contract.
The Chickasaw terminal has a total capacity of 644,000 barrels for the storage of asphalt, crude oil and residual fuels. The terminal is served by ship, barge, truck and rail.
WPT believes the two terminals, which will provide a 14% increase to its available storage capacity, will align well within its existing geographic footprint, and support its strategy for growth through stable, fee-based revenues.