July 23, 2014 | Read time: 2 minutes
Western Australian owned Coogee Chemicals has agreed to partner with Japan’s Mitsubishi Corporation to establish a new fuel terminal in South Australia.
Coogee Chemicals’ Managing Director Tim Martin has welcomed the invitation from Mitsubishi Corporation to become a direct equity participant within their wholly owned subsidiary Port Bonython Fuels (PBF) in the new venture.
“We think this a great opportunity to expand and grow an existing strong relationship with one of Japan’s leading industrial conglomerates, and support their aims in launching a diesel fuel supply, sales and distribution business in Australia,” Mr Martin said.
“To have been invited to participate with a small equity interest and as operator of this new terminal at Port Bonython in South Australia is something we are rightly proud of,” he said.
The announcement by Mitsubishi Corporation to enter the fuel import and distribution business in Australia further adds to the rapid changes to fuel terminalling and storage operations across Australia over the past few years, but particularly during 2014.
“Over the last three years, Coogee Chemicals alone has invested over $60 million into its terminals business in Australia,” Mr Martin said.
“We have expanded our business in Western Australia, principally in Kwinana, and now have terminals in Kwinana, Port Hedland, Gladstone and Townsville.
“This industry is changing dramatically as traditional oil companies have been moving out of downstream oil refining in Australia, and in some cases retailing and distribution as well.
“These supply chains are being replaced by Global trading companies, and as such we are seeing terminal storage needs increasing which provides opportunity for independent terminal operators such as Coogee Chemicals to further invest to meet this demand,” he said.
Coogee Chemicals will be the operators of the PBF terminal, providing critical expertise and experience for the Mitsubishi Corporation investment.
“This model where the major investor provides finance and business direction while its local partner provides the operational expertise, serves both parties very well,” Mr Martin said.
“It allows for capital inflows into Australia while providing business expansion opportunities for local companies such as ourselves, and we can expect to see the model used more into the future.”