09 February 2010

Vopak E.O.S., the largest independent tank terminal operator in the Baltic states expresses concern over misrepresentation of the company’s positions by minister Rein Lang in Riigikogu this morning.

Arnout Lugtmeijer, chairman of the board of Vopak E.O.S. said that since the adoption of the detailed plan in 2007 new evidence has become available in the form of a risk assessment which clearly states that the prison facility, as presently designed cannot co-exist with our next-door terminal and pipeline facilities. If at all implemented, it will impose serious restrictions to our current operation to the extent that we need to make very significant investments in additional safety and security provisions.The prison development certainly raises serious concerns of the company’s shareholder Royal Vopak - Dutch stock listed enterprise - who is the global market leader and known to be setting the benchmark for safety standards in the terminalling industry worldwide.

„This is  a challenge on the billions of kroons worth of investments made over the past ten years by Vopak E.O.S. in Estonia and we cannot just stand by,‘ said Lugtmeijer. „The prison will cost us dearly and is a threat to our future activity there.‘ He added that the legal challenges have already been presented to the court which with a first hearing scheduled for February 18^th. While we are presenting the case to the courts, we continue to believe that a constructive dialogue will provide a win/win solutions for all parties involved. As for now, without open communication we are facing a loose/loose situation whereby frustrations prohibit to generate solutions. ‘, he added: „We will continue to bring the issue to the table for as long as it takes to find a common sense agreement with all stakeholders.‘

‘We are concerned about the fact that the economic impact on our activity has been ignored by Ministry of Justice, but are encouraged by the fact that the matter is being discussed in the cabinet of Ministers so that a balanced evaluation can be made, taking into account not only the interest of Ministry of Justice, but also the interest of the business community and foreign investments into Estonia,’ said Lugtmeijer.

Moreover, the project is in a preliminary design phase and therefore it is not too late at this stage to relocate the plan. Lugtmeijer said: „According our information there are concrete alternative locations available for the prison, which would cost taxpayers less, since it wouldn’t require relocating a huge oil-pipeline, and would take less time to complete. It is unclear to me, what the motivation has been in pressing ahead with the proposed location.‘

According to prepared remarks published at the Ministry’s website http://www.just.ee/49216, minister Lang began his annual overview of governments activities towards implementing „Guidelines for Development of Criminal Policy until 2010‘ this morning by expressing regret that the building of a new prison in Maardu has stalled due to Vopak E.O.S. Lang said in his speech that while „in the media corporation VOPAK has loudly proclaimed concern for the safety of the prisoners. In actuality VOPAK challenged the construction permit issued by Maardu city because the prison-building does not support the company’s interests to expand to plots of land designated for the prison and adjoining plots. I must say that the people representing the Dutch-registered company in Estonia are behaving and acting in a manner reminiscient of colonialists’ conduct towards indigeous people in the 19th century. Be that as it may -justice in Estonia is measured out in courts and the royal VOPAK should present its arguments to the court in legal form, not knock on doors of officials, politicians and journalists.‘

For more information

AS Vopak E.O.S.
Communications

Olga van Kampen