The “Cádiz II” terminal begins to operate with the arrival at the Poniente dock of a first shipment of 1,500 metric tons of oil from Southeast Asia
This new terminal has expanded the capacity of the British company based in Cádiz with twelve storage tanks available for the international physical trading market.
Olivia Petroleum's commitment to the Bay of Cádiz as a headquarters for the traffic and storage of liquid bulk is linked to the boost that the Free Trade Zone wants to give to foreign trade operations
Cadiz, September 4, 2020
The Cádiz Free Trade Zone is reactivating liquid bulk traffic operations in its fiscal area with the help of the company Olivia Petroleum, which has opted for Cádiz as the epicenter of its activity in Spain.
With the launch of the new “Cádiz II” terminal, a pioneering operation has been carried out in the Free Trade Zone since for the first time it has operated with a material such as used cooking oil. Specifically, last weekend a shipment of 1,508.99 metric tons of this type of oil (used cooking oil – UCO) from Southeast Asia was unloaded on the ship. Chem New York which docked at the Poniente dock.
The operation consisted of the ship's oil being unloaded into the tanks of the Cádiz II terminal through state-of-the-art pipes that connect the tanks with the liquid bulk. It remains stored there until large trucks reconnect to those pipelines to load the product and take it to the final recipient.
Olivia Petroleum's commitment to the traffic of liquid bulk from the Bay of Cádiz is perfectly linked to the Free Trade Zone's commitment to recover the essence of this type of products in its tax area and promote foreign trade and internationalization as strategic lines. to increase the competitiveness of the Cádiz business fabric.
Along these lines, this type of operation confirms the opportunities of the fiscal area for the import and export of products, in what is known as a “trading company”, a company that covers all export and import operations or acts as a warehouse for third parties.
Thus, after this first operation with used cooking oil, Olivia Petroleum is expected to increase the activity of the new Cádiz II terminal in the coming months, aimed at international trading of raw materials for the manufacture of biodiesel (FAME), with the expectation that the The product that occupies most of the traffic is used oil (as was the case with the first operation), originating mainly from a third country and to a lesser extent nationally. It should be noted that this product is classified as non-hazardous waste since it is basically vegetable oil from a chemical point of view.
It is worth highlighting the tax advantages of operating in a facility under the Free Zone regime. In this case, for merchandise arriving from a third country, the main advantage is the possibility of being stored without the need to import it, indefinitely, until its destination is decided. Likewise, there is the possibility of importing only the quantities that the owner deems appropriate, being a vital point to evaluate, taking into account that this merchandise will leave the facilities by land. The strategic location of the Zona Franca dock, as well as its enclosure, protected by the Civil Guard, make the facility a point of great logistical and fiscal interest.
It must be remembered that the new Cádiz II terminal – in which facilities from the old Demagrisa, inactive for more than a decade, have been adapted and modernized – has twelve storage tanks (four of which are newly built) with a capacity of 12,000 cubic meters, thus expanding and complementing the warehouses of the “Cádiz I” terminal, which has a capacity of 25,000 cubic meters.
In addition to the facilities in the Free Trade Zone, Olivia Petroleum has another storage center in the Bay at the Cabezuela dock, where it has deposits for 30,000 cubic meters that they are expanding with others with capacity for more than 45,000 cubic meters. The commitment to expand its storage capacity in the Bay is largely due to the strategic location of these facilities facing the foreign market.
