Royal Vopak is a Dutch multinational specializing in the storage and handling of chemicals, ammonia, oil, gases, LNG, and biofuels. Founded in 1616 and headquartered in Rotterdam, it provides infrastructure solutions for bulk storage and transportation.
Vopak’s history goes back to the 17th century. How has that legacy informed the company’s main focus and operations in the present day?
Over 400 years old, Vopak was originally tasked with carrying goods, particularly from overseas, to warehouses in ports like Amsterdam and Rotterdam. Over time, the company transitioned from owning warehouses to storing products, such as tea in the 1600s, to modern products like LNG and ammonia today. Vopak continues its core business of not owning products but rather investing in storage infrastructure.
Currently, Vopak operates 77 terminals in 50 large ports across 23 countries, renting storage space to the chemical industry and major oil and gas companies and offering safe and efficient storage of chemicals, energy products, and raw materials. Vopak manages long-term infrastructure investments, enabling secure transportation and distribution of these products via ships, trucks, trains and pipelines.
Given the global reach of Vopak’s operations, what trends in demand have you observed in recent years?
Vopak’s global operations reveal a diversified demand. Geographically, around 25% of business comes from the Americas, 30% from Europe, and over 40% from regions east of Suez, including the Middle East, Southeast Asia, India, and China. The demand for oil, chemicals, gases, and industrial services is more or less evenly spread. Key trends over the last five years include geopolitical uncertainty, which has led to increased demand for strategic storage in key locations and a shift in manufacturing and energy demand toward the East.
Additionally, there has been a rise in demand for infrastructure to support the energy transition, including storage for low-carbon fuels, ammonia, and CO2. The energy security, affordability, and sustainability goals are driving the need for new infrastructure to meet the growing global population and economic development. Both for molecules and electrons, that's why Vopak is also getting active in battery energy storage.
How do you balance managing risks with keeping the entire network resilient during geopolitical crises, as seen in recent years?
Most of the company’s contracts are long-term, and its operations are diversified both by products and geographically, making it more resilient to geopolitical tensions and supply chain disruptions. Even if a particular location faces issues like tariff-induced supply chain changes, global consumption patterns could remain largely unaffected, and Vopak can adapt by leveraging its wide network.
The global diversification strategy has proven effective, with resilience shown even during disruptions like the pandemic or the war in Ukraine.
To what extent have Vopak's long-term investments exposed the company to risks from geopolitical tensions?
Vopak’s long-term approach to investment means that its operations are less affected by short-term disruptions. With most of their contracts spanning decades, the company focuses on long-term stability. Geopolitical tensions, such as trade tariffs or localized disruptions, have a limited immediate impact on their operations. For example, supply chain disruptions like those seen with the Panama Canal or the Red Sea did not have a major effect on the global consumption of energy and materials, as alternative routes and ports can accommodate these shifts. The global network is of great benefit to Vopak's customers as solutions can often be found within the network.
Vopak’s diversified infrastructure across multiple global locations ensures that the company can weather local disruptions. This global network, which includes ongoing operations in regions like Western Canada and the Gulf Coast, provides a level of stability, even as specific locations face challenges. In fact, some disruptions can lead to opportunities, such as increased demand for storage for energy security..
What prompted Vopak to raise its investment in industrial and gas terminals to €2 billion this year?
Vopak announced an additional €1 billion investment in industrial and gas terminals by 2030, on top of an earlier pledge. This decision reflects the company’s commitment to further growth in both traditional industrial and gas infrastructure and energy transition-related infrastructure. While €1 billion was initially earmarked for both of these growth investments, the company now sees significantly more opportunities in industrial gas terminals and has increased this allocation to €2 billion.
Meanwhile, the €1 billion set aside for energy transition infrastructure remains unchanged, although only a fraction of this has been invested so far. In this area, Vopak is focusing on infrastructure for low-carbon fuels, ammonia, CO2 storage, and battery electricity storage. Vopak is positioning itself as a key player in the green transition. These investments are crucial in facilitating new supply chains and energy solutions globally.
How do you foresee Vopak’s infrastructure supporting regional energy transition efforts, particularly in ammonia, CO2 storage, and hydrogen?
Infrastructure is a critical part of the energy transition, and Vopak is heavily focused on building the necessary storage and transportation solutions for emerging and new energy needs. The company is involved in four main areas of energy transition infrastructure: low-carbon fuels, ammonia as a hydrogen carrier, liquid CO2 storage, and battery electricity storage. Vopak’s extensive network of terminals is well-positioned to support these sectors as they grow, including providing storage for sustainable aviation fuel and biofuels.
Different regions of the world are pursuing the energy transition at varying speeds. In the US, there is a focus on carbon capture and storage (CCS), while Europe is emphasizing hydrogen, and Asia is targeting CO2 capture. In all these regions, Vopak’s expertise in repurposing and sharing infrastructure plays a key role. The company ensures that new projects, such as potential ammonia storage in Japan or CO2 storage in Europe, are built in collaboration with multiple customers to maximize efficiency and reduce costs.
Given the range of materials Vopak handles, including hazardous chemicals and industrial gases, how is its safety infrastructure designed to ensure secure storage and handling?
Safety is Vopak’s top priority, especially given the wide range of products it handles, from hazardous chemicals to industrial gases. For example, ammonia is a product that needs to be handled with the greatest safety care. Vopak has been safely storing ammonia for over 20 years at 6 locations around the world. The company has developed strict safety standards and infrastructure designs that ensure the safe storage and handling of these materials. Vopak continuously learns from its global network, ensuring that knowledge from one terminal is shared with others to address safety challenges in real time.
This collaborative approach ensures that safety protocols are always up to date and can be quickly applied to new situations. Vopak tracks both process safety and personal safety performance across its operations. The company has achieved industry-leading safety performance, and it strives to continually improve its safety standards. The mindset at Vopak is that every incident is avoidable, and the company works diligently to uphold this philosophy with safety practices that are considered best in class.
