Hurricane Sandy Kicks Sand in the Eyes of Vopak's Plans for Perth Amboy Terminal

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Researched by Industrial Info Resources (Sugar Land, Texas)--As the people of the Northeast continue to recover and get back on their feet after the devastation of Hurricane Sandy, industry also must regain its footing and get back to pre-Sandy operating conditions. In Perth Amboy, New Jersey, Vopak Logistics North America (Houston, Texas) had just finished razing the formerly owned Hess terminal and was moving ahead with plans to install 30 new storage tanks to hold petroleum and bio-fuel products, but the hurricane pushed the $15 million project back by approximately six months.

The grading had been complete before Sandy washed ashore and, due to the devastion caused by the wind and water, it now must be redone. Original plans had the start date for the terminal fabrication and installation in December 2012. Now the construction start is estimated to be sometime in the summer of 2013.

In planning for this terminal, Vopak selected Chicago Bridge & Iron (NYSE:CBI) (The Woodlands, Texas) to serve as the engineering, procurement and construction (EPC) contractor for all aboveground needs, including the tanks, piping and controls. The underground tanks will be bid out separately, with a contractor expected to be selected in March 2013. The vapor handling also will be bid out separately, giving the project three segments, and two bidders have been named as the frontrunners for this portion, which will also be selected in March 2013. The two companies are John Zink (Tulsa, Oklahoma), a subsidiary of Koch Industries (Wichita, Kansas), and Jordan Technologies (Louisville, Kentucky).

John Zink was established in the 1930s in Tulsa, Oklahoma, and fanned out to include operations in Europe and Mexico. John Zink was sold to Koch Industries in 1989 and is considered a leader in industrial burners and flares, as well as vapor recovery and combustion systems. Zink serves multiple industries, including refining, petrochemical, biofuels, oil & gas and pharmaceuticals, to name a few.

Jordan Technologies manufactures and services vapor recovery units (VRU) on four continents. Jordan started operations in 1980 and grew its client list to include ExxonMobil (NYSE:XOM) (Irving, Texas), BP plc (NYSE:BP) (London, England), Chevron (NYSE:CVX) (San Ramon, California), Petrobras (NYSE:PBR) (Rio de Janeiro, Brazil), Sinopec (NYSE:SHI) (Shanghai)and many other global conglomerates. Jordan focuses on VRU manufacturing, service and testing, as well as air-filtration supplies and needs. Jordan Technologies was purchased by Flare Industries LLC (Austin, Texas) in the fall of 2012. Flare manufactures and installs combustion and pollution-control technology and equipment.

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