Agreement for Developing New Terminal in China

Odfjell and Dalian Port (PDA) Co., Ltd., a Hong Kong public listed company on the one side, and Caofeidian Industry Zone (CFDIZ) on the other side, have signed an agreement for the development of a world class tank terminal for oil and chemical products, including chemical gases. Odfjell and Dalian Port will form a joint venture company to design, build and operate this new tank terminal, which will be located within the CFDIZ, the largest reclaiming of port land in the history of China totalling impressive 310 square kilometers.

The area allocated by the Industry Zone to this terminalling joint venture is over 750 000 square meters, with 1600 meter waterfront of 15 meter water depth and thereby allowing ships of up to 100,000 dwt.

The Central Government of China has stated that Caofeidian will become the 'Rotterdam' of China due to its privileged location within the Bohai Sea as a gateway for serving metropolitan Beijing and with excellent road and rail connectivity to the Northern hinterland of China. With unique natural and geographical conditions, such as natural deep water draft adjacent to a 25 meter-deep natural water channel extending from Caofeidian directly to the Huanghai Sea, this joint project will allow access for deep sea chemical, product and even larger tankers, thus providing important economy of scale in transportation logistics.