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Energy & InfrastructureUlsan Port Tank Terminal Market Analysis and Target Competitiveness Assessment



This due diligence focused on evaluating the Ulsan Port tank terminal market—Korea’s largest—by examining key upstream industries, the competitive position of the Target company, and future market shifts and growth potential. The primary objective was to understand the supply-demand balance in refining, petrochemicals, and biofuels, and to assess the Target’s competitive standing and opportunities to enhance its value.

1. Ulsan Port Tank Terminal Market Overview

Ulsan Port processes approximately 30% of Korea’s liquid cargo and serves as a key hub for refined oil and petrochemical imports and exports. In 2022, the port handled around 60 million kl in annual throughput, primarily composed of refining, petrochemical, and biofuel products.

  • Demand Structure:
    Refined products mainly consist of gasoline and diesel, while the petrochemical segment includes robust exports of BTX, benzene, and propylene. Biofuels are experiencing rapid growth, supported by the transition to second-generation HVO technology, and are expected to see continued demand increases.

  • Supply Structure:
    Commercial tank terminals at Ulsan Port offer around 4 million tons of storage capacity, coexisting with government and privately owned terminals to handle the region’s substantial volumes.

2. Target Company Competitiveness

The Target company holds a significant share of the Ulsan Port commercial tank terminal market, maintaining long-term contracts with major refining and petrochemical clients. Key strengths include:

  • Facilities and Capacity:
    The Target owns extensive tank storage infrastructure, efficiently handling and distributing refined and petrochemical products. Recent expansion projects have further strengthened its competitive edge.

  • Customer Trust and Stability:
    With long-term client contracts and high utilization rates, the Target enjoys a stable revenue base. Notably, Average Selling Prices (ASP) have consistently trended upward, ensuring strong profitability.

3. Market Outlook and Growth Potential

The Ulsan Port tank terminal market is poised for ongoing growth aligned with shifts in upstream industries:

  • Refining and Petrochemicals:
    While the rising EV market and renewable energy transition may gradually reduce refined product demand, the export of petrochemical feedstocks and intermediates is expected to maintain steady growth.

  • Biofuels:
    Driven by increasing demand for higher-value products like second-generation HVO and bio-jet fuel, biofuel-related tank terminal needs are set to expand steadily.

  • New Entrants and Competition:
    Planned capacity expansions by existing rivals and potential new market entrants may intensify competition. To preserve market share, the Target must leverage its established customer base and facility advantages.

This due diligence effort provided strategic direction for the Target to maintain its competitiveness and achieve sustainable growth in the Ulsan Port tank terminal market. By capitalizing on capacity expansions and the rise of renewable fuels, the Target can adapt to evolving industry conditions. The insights derived from this project will help reinforce the Target’s leadership in Ulsan Port and align its operations with the global energy transition.



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LOOXENT

A  21F. Parc.1 Tower2, 108, Yeoui-daero, Yeongdeungpo-gu, Seoul, Korea 07335

T  02-546-8222      F  02-546-8226

E  service@looxent.com 

© 2024 LOOXENT. ALL RIGHTS RESERVED.