Seaoil to open P500-M oil storage facility in Davao
MANILA, Philippines - Seaoil Philippines Inc. is set to open another oil storage facility – its biggest so far – in Sta. Cruz, Davao del Sur.
In a press briefing yesterday, Seaoil chief operations officer Stephen Yu said the storage facility, which would have a 41-million liter capacity, aims to service up to 200 retail stations.
“The investment for the terminal is about half a billion (pesos),†Yu told reporters.
He said the Sta. Cruz Bulk Terminal has a berthing facility that can receive medium-range vessels of up to 50,000 deadweight tonnage (DWT). It can also handle domestic size tankers for local distribution and sales.
Seaoil decided to invest in a new terminal in Mindanao to serve growing demand of fuel products in the Southern Mindanao area.
“Mainly, we’re trying to fill out an underserved market,†Yu said.
He said down the road, more companies are expected to come in and contribute to the demand for fuel. For instance, the power crisis in Mindanao would likely spur demand as investors put up more power plants.
Seaoil now operates 10 depots and terminals across the country, representing 160 million liters of oil storage capacity.
“The Sta. Cruz Bulk Terminal should be able to serve around 200 stations that will employ about 2,000 people directly and upwards of that number indirectly. It shall also serve other commercial industries in the surrounding area and provinces. As the terminal shall import directly in large quantities, it shall be able to reduce if not eliminate domestic marine freight costs providing for a fundamentally lower cost structure,†Yu said.
By 2015, the oil company is aiming to have 500 stations nationwide, all bearing revised signage and price board designs, plus brighter LED lighting.
The company has undertaken a station upgrade over the past few months.
Coupled with a partnership that brings premium STP additives to enhance all grades of Seaoil fuels, the company said the changes would contribute to increasing its market share.
Seaoil has 363 retail stations nationwide. It recently won in the bidding for a two-hectare area along the Subic-Clark-Tarlac Expressway (SCTEx).
The Bases Conversion and Development Authority, which is in charge of the project, will enter into a 25-year lease and development agreement with Seaoil.
As such, the company will build its first megastation in the area, complete with parking areas, emergency stations, convenience stores and restaurants.
This is expected to be fully operational by the first quarter of 2015.
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