Worldwide recession has no major impact on Vopak in 2009
Although Vopak had relatively few problems as a result of the worldwide recession during 2009, outstanding receivables and suppliers’ solvency are being monitored more closely as a precaution. In addition, programs were started to further improve cost-control and opportunities for growth were re-prioritized.

Capital has become scarcer and tighter conditions are being imposed on credit. Sufficient financial scope to further shape our growth ambitions has, however, been created by placing private loans and issuing cumulative financing preference shares.

The recession is not yet over, however, and its effects could still be noticeable in 2010. External financing is guaranteed, and we continue to undertake well thought-out scenario planning to determine the correct pace of investment for growth.

Increasing competition
In a dynamic marketplace, both existing competitors and new players could threaten Vopak’s market position. In recent years, we have faced increasing competition from existing providers in the storage industry, but various newcomers, in particular private-equity and infrastructure funds, have entered our market. In response to this development, Vopak is giving priority to rapid growth, especially in logistically strategic locations. We are also aiming to achieve higher customer satisfaction by providing maximum service levels and highly efficient operational processes. In addition, we seek to enter into longer-term sales contracts. We were successful in this respect in 2009, with 83% (2008: 80%) of our revenue coming from contracts with durations of longer than one year. The increase in revenue from such longer contracts seen in OEMEA, CEMEA, China and Latin America has not yet spread to Asia and North America. We are working on effective cost management and providing high service levels in order to offer competitive prices. Maintaining and strengthening our market position depends on optimal use of our worldwide network.

Sector developments provide a mixed picture
The current economic uncertainty has affected our markets to varying degrees. The picture in some sectors is unclear, while other markets are steady or even offer attractive opportunities for growth. This is certainly the case in the oil storage market, which is particularly robust. Prospects for chemicals are excellent in China, and steady in Latin and North America. In Europe, however, the market for chemicals is volatile. This situation is expected to improve when the world economy recovers permanently from the crisis. Investment in the Middle East chemicals market may have ongoing consequences for worldwide logistics flows. As a tank terminal company with global operations, Vopak is excellently positioned to capitalize on any resulting new opportunities.