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• IL&FS Maritime Infrastructure Company Limited along with local strategic partners is developing a state of the art independent storage terminal, IL&FS Prime Terminal, for oil products in heart of the Emirate of Fujairah.
• The overall capacity of the Terminal will be 600,000 cbm. The Phase I of the Terminal of 14 product tanks with an aggregate capacity of 333,481 cbm is operational since early 2015. The development of Phase II will be commencing shortly.
• Fujairah is strategically located outside Strait of Hormuz, 65 miles from the Strait and on the open sea of the Arabian Gulf and the Indian Ocean. It is a major international shipping passage carrying approximately 40 percent of world’s crude oil supply.
• IL&FS Prime Terminal is situated at Al Sudah in close proximity to the Port of Fujairah (approx 1.5 km) which is one of the world’s largest bunker ports

IMICL intends to agglomerate assets in the capacity of Sponsor, Promoter and Developer in maritime infrastructure projects through:

• Development of green field /brownfield projects
• Acquisitions of strategic projects
• Taking strategic positions in projects through alliances
• Participating in value-added infrastructure and logistic projects

Some recent projects by IMICL:

• IL&FS Prime Terminals FZC – Oil Storage Projects.
• Dighi Port – New Port Development Project.
• Pipavav Shipyard – Shipyard Development Project.
• Porto Novo Port – Coal & Power Plant Development Project.

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Building a state-of-the-art oil terminal in a tough new landscape

Why Fujairah?

After Singapore, the largest bunkering hub in the world is a little port called Fujairah. One of the UAE’s smallest emirates, it is not much more than a narrow strip of mountains and rock. Occupying less than two percent of the country’s area, with neither the oil reserves of Abu Dhabi nor the dazzle of Dubai, it hardly shakes up the map.

But zoom out, and you see what makes Fujairah unique — it is the only emirate to have a coastline solely on the Gulf of Oman and none on the politically charged Persian Gulf.

On one side Fujairah is flanked by the world’s most important oil shipping choke point, while on the other, the Indian Ocean offers direct access to the markets of Asia and Africa

Fujairah also lies next to the Strait of Hormuz, which connects the two gulfs. 18 million barrels of oil make their perilous passage through this strait each day — that is one third of the world’s tanker-borne crude. The port of Fujairah is thus flanked on one side by the world’s most important oil shipping choke point, while on the other, the expanse of the Indian Ocean offers direct access to the markets of Asia and Africa.

It is no surprise then that it is the third largest petroleum storage and trading centre in the world. When IL&FS Maritime was looking to extend its pioneering standards internationally, the strategic significance of the port of Fujairah was obvious.

Bold vision, new territory

The year was 2013. As Iran’s blockage threats loomed over the Hormuz strait, Fujairah, lying completely outside the strait, offered safe bypass. Abu Dhabi — UAE’s largest oil producer — had just completed a $3.3 billion, 400 km long pipeline to Fujairah to avoid its oil export having to traverse the strait.

Several tank terminals existed here already but most of them were privately owned by individual traders, making new traders understandably hesitant to store their product there. IL&FS saw the opportunity here to provide high quality tank terminal services as a non-aligned merchant facility.

With IL&FS Prime Terminals FZC (IPTF), the company was entering new territory, a project of unprecedented magnitude on foreign soil. IL&FS had no prior experience of working in the region, nor in the sector. Getting a foothold in a completely new environment and making a place in the ecosystem of Fujairah was never going to be easy. However, a compelling analysis of the opportunity backed by the Group’s implementation capabilities gave it the confidence to undertake the project.

Winters in Fujairah bring unpredictable rain as the easterly winds from across the Indian Ocean hit the mountains. The construction team had to combat water logging on the site and manage the ‘wadis’ and waterfalls before they could begin work. Without treatment, the ground would have been unstable and extremely dangerous for people to work on, let alone building huge petrochemical terminals. Appropriate soil stabilization therefore had to be done before any construction could start.

Anchoring vision with cross-disciplinary expertise

The IL&FS Group’s personnel make up its secret sauce. Having implemented several complex infrastructure projects leveraging strengths from various parts of the Group, they have developed valuable cross-disciplinary expertise.

Setting new terminal standards

Unlike other terminals in the region, IPTF harnessed solar power for internal use to become the first and only green terminal in Fujairah. It was also the first terminal to afforest the slopes of the barren hills around.

From a business point of view, IPTF is not just a storage terminal. It offers possibilities for circulating, blending and heating the crude, and thus allows customers to bring in small cargo and take out bigger processed cargo for export to Asia or Europe.

IPTF’s meticulously sized tanks suit perfectly for quick turnarounds. With the strictest standards put in place at the start, and a highly qualified team to run the terminal, IPTF became the ‘Numero Uno’ terminal in fujairah in customer’s choice in no time.

Exceptional security, total efficiency

The terminal offers complete security for the stored cargo with a zero-loss facility. A state-of-the-art software system allows customers to monitor details of their stored cargo.

Though one of the smallest in Fujairah, its quality of infrastructure and the exceptional standards of safety and service set IPTF apart. Today it ranks among Fujairah’s top terminals as the fastest, safest and best equipped. At the end of the day, IPTF re-affirms the IL&FS philosophy that dedicated team empowered by institutional support, and backed by comprehensive and integrated planning, keep consistently delivering superior outcomes to set new standards for world class standards.

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