QUANTEM BULK LIQUID STORAGE & HANDLING

Transport

ASSET DESCRIPTION

  • Independent owner and operator of bulk liquid storage facilities in Australia and New Zealand with around 600,000m3 of capacity
  • 12 operating locations handling a wide range of chemical, petroleum, fat and edible oil products
  • 35% equity interest
  • Board representation

INVESTMENT FUNDAMENTALS

  • >75% of current revenues on a take-or-pay contracted basis
  • Asset portfolio has historically experienced high utilisation rates
  • Diversified customer base with weighted average contract life of 6 years
  • The recent acquisition of GrainCorp Liquid Terminals (Australia) Pty Limited provides complementary footprint and diversification of commodity exposure
  • Significant growth pipeline to expand capacity

KEY RISKS AND MITIGATION

  • Contracting risk managed through lower pricing strategy against new build cost and long standing relationships
  • Market risk mitigated through diversified commodity exposure and positive industry dynamics, including higher demand for petroleum import storage due to refinery closures and the use of chemicals in water treatment
  • Execution risk of growth projects mitigated by gated decision making process and management’s strong track record

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