Client: Inter Terminals Limited (formerly known as Simon Storage Limited)
Country: UK, Ireland and Germany
Service: Insurance Cost Assessment
Scope: Property, plant and equipment
Inter Terminals Limited is a wholly owned subsidiary of Inter Pipeline Limited, a major Canadian petroleum transportation and natural gas liquids extraction business, based in Calgary, Alberta, Canada.
The company is one of Europe’s largest and most established independent operators of bulk liquid and gas storage facilities, who own and operate terminals in the United Kingdom, Ireland, Germany and Scandinavia, providing strategic storage and break-bulk points where products can be transferred from one method of transport to another, from import/export by ship to hinterland transport by rail, road and inland waterway.
As part of a strategic review of their insurance program, the client sought to appoint a suitably qualified supplier to provide an independent cost assessment for insurance value at risk purposes in respect of the insurable assets located at eight of the company’s bulk liquid and gas storage facilities.
Our instruction followed the submission of a proposal in response to a Request for Proposal (RFP), in which the client identified two primary expectations from the successful supplier. Firstly, the ability, work experience and the expertise of the chosen supplier to provide valuation services that enabled them to manage its risk exposures in a comprehensive manner, consistent with best practice in its industry. Secondly, flexible, responsive and cost effective services to best meet the client’s expectations and requirements.
Our approach followed a process of limited site inspections and data collection, followed by a desktop cost modelling utilising plans and information provided by the client.
The assessment covered the property (buildings and structures), marine structures (berths and jetties) and plant and equipment (tankage, pipelines and pumps, loading gantries, fire deluge installations, steam generators and vapour recovery plants, effluent treatment and other site services).
Charterfields provided the client with a cost effective solution to meet the challenges of the RFP, with reports of a standard acceptable to leading property insurers, and future proofed to take account of pending insurers or statutory requirements that be presently be foreseen.
As part of the service, Charterfields provided annual cost monitoring for three years following the initial assessment to enable the values reported to be updated, prior to renewal, so that the declared values remained accurate during the course of the service contract period.
Following the acquisition of four facilities in Denmark and four in Sweden, Charterfields have been instructed to extend the service to provide Insurance Cost Assessments of these additional locations, together with updating the assessments of the original eight.