DCS METHANOL PROJECT ASSIGNMENTS

INTRODUCTION

It cannot be over emphasized how unique and important logistics is to the Methanol business. The quality specification for Methanol is so stringent that specially designed tankers have increasingly become the norm for both economic and quality reasons. Primary logistics, i.e., the ocean leg plus terminalling costs, in most world-scale projects often represent 25% of the selling price. Primary logistics costs easily exceed the capital cost of the project during its projected 20-year life. Controlling these costs is the key to the success of any project. For today’s 2MM tonne Methanol plants, each dollar reduction in freight represents $40,000,000 in savings over the 20-year life of the project.

DCS is the world's foremost expert on Methanol logistics. We can greatly assist with reducing the costs associated with Methanol logistics and making your project a success. Below is a brief overview of our firm.

DCS AND CLARKSON'S

Distribution Consulting Services, Inc. (DCS) are logistics consultants who are the world’s leading specialists in Methanol transportation and storage. DCS focuses a combination of engineering, plant operations, terminalling, marketing, strategic planning and maritime expertise on logistics projects worldwide. The senior staff of DCS are well-seasoned, operating company veterans with international experience and advanced university degrees. The firm conducts a wide variety of single client studies for project sponsors, multinational companies, financial institutions, engineering companies and governments.

DCS often works on Methanol projects with its associate, Clarksons. Clarksons was established in 1852 and is publicly traded on the London Stock Exchange. The Group has grown to be the world's largest maritime services firm with 13 offices worldwide.

INTERRELATIONSHIP OF DCS AND 
CLARKSON'S LOGISTICS ACTIVITIES

METHANOL EXPERIENCE

DCS's Methanol experience is unparalleled in the industry as the firm has been involved in over 25 Methanol projects during the past 20 years. Assignments have ranged from pre-feasibility studies to turnkey projects for world-scale methanol units in Asia Pacific, the Arabian Gulf, the Caribbean, South America, West Africa and Canada. These projects have included securing ships, terminals and river barges as well as advice on plant storage and ship/shore interface. DCS has led the industry by employing high technology computer modeling techniques to study and develop shipping strategies for our clients.

DCS Directors have been responsible for the design and supervision of construction of over 20 dedicated Methanol tankers. These have included the world's first dedicated Methanol tanker, the “"Cabo Negro,” and the world's largest and most sophisticated Methanol vessels in service today. We have implemented new design criteria for dedicated Methanol tankers that have become industry standards. Overall the Group has had involvement with well over half the purpose-built, dedicated Methanol tankers operating. Our associate, Clarkson’s Specialized/Chemical Tanker Department, annually arranges millions of tonnes of Methanol movements for clients world wide in coastal tankers, barges and deep-sea vessels under various types of contractual arrangements.

DCS and Clarksons have teamed up on numerous Methanol projects thus offering our clients the most comprehensive service available in the industry. DCS’s innovative solutions to lowering transportation and storage costs have lead the global Methanol industry, thus enabling to a great degree today’s global Methanol market.