Zenith Energy Announces Palm Oil Lease Storage and Tank Construction Agreement with Cargill
Zenith Energy, an international liquids and bulk terminaling company, today announced that it has entered into an agreement with Cargill, one of the world’s largest food and agriculture companies, for the storage and handling of palm oil in Zenith’s Palermo Tanks Terminal located in the port of Barranquilla, Colombia. The construction commenced on February 1, 2017. Terms of the transaction were not disclosed.
As part of this long-term agreement, Zenith will build 19 k cbm of storage capacity in four dedicated tanks for Cargill’s palm oil operation. The project contemplates the construction of a new dyke, tanks with heating system, a dedicated dock line, dedicated truck loading and unloading positions with capabilities to import and export products.
“We are pleased to form this agreement with Cargill, one of the leading global producers and traders of agricultural products,” said Jeff Armstrong, President and Chief Executive Officer of Zenith. “Colombia remains an important and fast growing producer of sustainable palm oil worldwide, and this agreement is an important step forward for our Palermo Tanks facility in Barranquilla. We are excited to work with Cargill and look forward to advancing our partnership in the region.”
Palermo Tanks is a joint venture between Coremar Group and Zenith and became operational in 2016. The state-of-the-art, public access liquids terminal was built to the highest technical, operating and safety standards for importing and exporting petroleum, chemicals and vegetable oils. Palermo Tanks Terminal is located on a 170 hectare industrial park with an initial liquids storage capacity of 58,000 cbm with plans to eventually exceed 400,000 cbm.