The port, Europe’s largest in terms of throughput, is currently consulting market participants on its Diesel Common Carrier System (DCCS), which would see a multi-user pipeline network connecting diesel production, storage and trade facilities.

The port says that the network would result in a smoother and quicker delivery of diesel for refineries and storage terminals, which currently use their own logistics facilities to distribute diesel.

“We’re doing a market consultation right now,” said Ronald Backers, business intelligence advisor for the Port of Rotterdam. “We will talk to our management at the end of May. We plan on having a go, no-go decision by the end of the third quarter and beginning of the fourth quarter this year, and a Final Investment Decision next year. The planning so far is that it should be operational by Jan. 1, 2018.

“We’ve been talking a lot to the tank storage terminals in Rotterdam that would potentially be connected. Over the next couple of weeks, we’re talking more with the refineries and traders,” Backers said.

Backers said such participants will benefit from the DCCS because it will cut waiting time for vessels and reduce the chances of demurrage.

The Port of Rotterdam believes that the system will attract more diesel into Rotterdam, thereby taking market share from other ports and potentially benefiting from the forthcoming shutdown of a crude distillation unit at the U.K.’s Lindsey refinery.

“One of the things we aim for is of course that the total seagoing volumes of diesel imports will grow in Rotterdam,” said Backers. “We hope to attract cargoes that are now going to other competing ports.

“The U.K. refinery at Lindsey is being closed probably sometime next year. England’s shortfall position in diesel is only growing, and they have to import more. They can do that directly from the U.S., Russia, India etc., but it could also be a possibility that we get more long-haul break bulk cargoes to Rotterdam, with part of that then being shipped into the U.K.,” he said.

Asked whether the system would result in more investment in Rotterdam’s diesel storage capacity, Backers said: “We definitely hope for more cargo flows. There are some [tank storage] terminals who have explained that they are in the process of looking for more potential customers with gasoil, diesel, jet fuel cargoes, so they also have the possibilities to expand their tank storage capacities.”

He did not believe that gaining planning permission for the DCCS from the city’s authorities would prove difficult. “The big advantage is that it will be constructed in the port area. The pipeline’s corridors are within our own land, so we don’t have to ask permission from farmers and landowners.”