Surprising resilience in Singapore's oil-storage market

Singapore's independent oil-storage market has not exactly shrugged off the effects of a sharp increase in capacity, at a time of troubled economies worldwide – but its resilience has surprised many, Martin Quinlan writes

A YEAR ago, it seemed as if the Singapore independent oil-storage business was heading for serious trouble. A construction boom had just raised the capacity of the independent terminals by 72%, but demand for tank-space was forecast to slump as the world recession had its effect on Asia's economies. In reality, although conditions have been testing for some operators, the business has remained surprisingly buoyant. The main operators claim tank occupancy rates and throughputs – both are important, because of the way fees are structured – remain high. The forecast meltdown in fees did not occur. Several developments seem to go some way towards explaining the resilience of the business. St