Liquid and bulk terminal company Zenith Energy LP has entered into an agreement with food and agri firm Cargill for the storage and handling of palm oil in Colombia.

Construction at Zenith’s Palermo Tanks Terminal, located in the port of Barranquilla, commenced on 1 February 2017, with the aim to build 19,000m3 of storage capacity in four dedicated tanks for Cargill’s palm oil operation.

The long-term contract, for which financial terms were not released, included the construction of a new dyke, tanks with heating system, a dedicated dock line, dedicated truck loading and unloading positions with capabilities to import and export products, according to statement released by Zenith on 22 March.

“Colombia remains an important and fast growing producer of sustainable palm oil worldwide, and this agreement is an important step forward for our Palermo Tanks facility in Barranquilla. We are excited to work with Cargill and look forward to advancing our partnership in the region,” said Jeff Armstrong, president and CEO at Zenith.

Palermo Tanks is a joint venture between Coremar Group and Zenith and became operational in 2016.

The public access liquids terminal – located on a 170ha industrial park with an initial liquids storage capacity of 58,000m3 – imports and exports petroleum, chemicals and vegetable oils.

Zenith said in the statement it had plans to eventually increase storage capacity at Palermo Tanks to exceed 400,000m3.