Comparable facility cost in Maxsoarfinancial July report.
The cost paid for Huajie is comparable to the 2008 construction of a 600,000 ton Tianjin oil storage facility which cost $314 million. A comparables analysis of construction costs was conducted by maxsoarfinancial and published in their July 31, 2012 research report. It was built by Tianjin Anjiu Oil Storage Company, Limited (AJOS) and is located in Port Based Industrial Park in Tianjin City. Built in 2008 with a storage capacity of 600,000 metric tons, it was designed to transport oil in and out via railraods as LPH facilities do, and also some portion via waterline. The quality of the recent construction and newer safety requirements, along with a timeframe within a couple years of Huajie, yields a cost structure that is analogous with respect to Huajie construction services. MaxSoar's cost analysis predicted that if the same construction company had built Huajie it would have cost around $125 million, $19 million higher that LPH paid for Huajie when it signed the deal in March 2011. In addition, between 2008 and 2011, construction costs went up.
Someone should put that on the Yahoo board in response to the tag team that has been relentlessly bashing this particular point all day long. They must be working a half dozen different computers because other folks have run out of posting priviliges but not that duo of bashers, who have probably posted around 50 posts today between the two of them.
AI
