Storage & Terminals

Actor Type: Infrastructure Breaks When: Low Volatility Capital Intensity: High Cash Flow Stability: Stable Economic Nature: Infrastructure / Toll Margin Driver: Rates Notes / Insights: Make money when markets break Performs Best When: Contango, Oversupply Pricing Power: Moderate Primary Function: Store oil and refined products Primary Risk Transfer Mechanism: Contracts Primary Risks Held: Market Structure Public / Private Mix: Mixed Representative Firms: Vopak, Buckeye Residual Risk After Transfer: Low Revenue Model: Storage Fees Typical Margin Profile: High Value Chain Segment: Midstream Who Ultimately Bears the Risk?: Traders / Shippers