The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Bahamas Oil Refining Company (BORCO) is expected to generate “full-year run rate cash flows” in 2014, after its owner invested $380 million over three years to expand storage capacity by 20 per cent.

Clark Smith, Buckeye Partners’ president and chief executive, described the Grand Bahama-based petroleum product storage and blending facility as “a great example” of its global logistics strategy.

Writing in the New York Stock Exchange (NYSE) listed company’s 2013 annual report, Mr Smith described BORCO as is “one of the most sophisticated marine terminals in the world”.

BORCO drove the $21 million year-over-year growth in Buckeye’s global terminals business, largely due to the 4.7 million barrels of extra capacity added in Grand Bahama since 2012.

“Since our acquisition of this facility in 2011, we have invested over $380 million to increase the storage capacity over 20 per cent, while also adding deep water and inclement weather berthing capabilities that we believe far exceed the capabilities of our competition,” Mr Smith said.

“We also increased pumping rates and improved inter-tank connectivity and flow rates. We expect to see the full-year run rate cash flows from these investments in 2014.”

Mr Smith added that BORCO, together with Buckeye’s other marine terminals in the Caribbean, gave it a global growth platform.

“Our Caribbean assets allow us to offer a full spectrum of services to different customer bases. These assets are uniquely located to accommodate anticipated growing crude oil volumes from South American production,” he said.

Focusing on BORCO once again, Mr Smith concluded: “We not only completed the first phase of expansion of the terminal to reach a total of 26 million barrels of petroleum product storage, but we also significantly improved the pumping rates for loading and offloading vessels, increased the flexibility of the terminal pipe manifolds to allow further product segregation and tank-to-tank transfers, and expanded the capacity of the jetties and docks.

“As part of our dock and jetty improvements, we added inclement weather docking capability at our inland dock and expanded our deep water capabilities to handle anticipated growth in berthing of vessels, including the largest oil tankers in the world.”