As mentioned in our interview with Peter Hale of TRL Engineering, there will come a point in the lifespan of your underground tank where it begins to deteriorate and leak. Because this is an inevitability, it’s important to know your options when the time for maintenance arrives.
When the end of your fuel tank’s lifespan nears, you have two main options: replacing the underground tank altogether, or deciding to reline the tank. Overall, the advantages of relining outweigh the complications of a full fuel tank replacement for five key reasons.
1. Cost and Timeline
If you’re looking for the most cost effective solution, the price of tank relining is significantly lower than that of a tank replacement. Additionally, tank lining can often be completed in less than two weeks, versus a timeline of up to three months in the case of tank replacement.
2. Impact on Income
One of the most significant advantages to relining is that the work can be done in a way where the service station is able to continue operation. When a tank is fully replaced, sites often need to close for up to three months, especially when ground contamination is found. It goes without saying that a closed service station is not a financially lucrative one. Choosing tank relining over a replacement can help ensure that your service station feels a minimal reduction in daily income.
3. Customer Retention
As stated, tank replacement requires a full closure of the site. When you cease operation of your service station, your customer base is lost as they move to another service station. Statistics have shown that after closures for tank replacement, it can take up to 12 full months for sales to return to levels previous to the work. Choosing relining means avoiding closure of your site, and higher customer retention rates.
4. Environmental Cost Impact
While there are no significant environmental cost impacts on tank lining work, that is not the case with tank replacement. In the majority of tank replacements, there are usually around $20,000 of environmental testing and monitoring charges incurred. This makes relining a more cost effective solution at almost every turn.
5. Tax Implications
The cost of tank lining can be written off in the month following the work. In the case of a new tank installation, it must be depreciated over the following several years.
Thinking Ahead
Owners and operators of petrol stations should keep the age and condition of their tanks in the back of their mind, as no tank will last forever without the need for maintenance. In our talk with Peter Hale, he stressed the importance of owners and operators investing money in a sinking fund for a “rainy day”.
This fund offers protection in case of a leaking tank or other issue. Peter also suggested “future proofing” your business by lining your tanks. If you’re looking to reline your underground tanks, TRL Engineering offers a 30 year warranty on all of their tanks and tank linings, and has a nearly unbeatable record since commencing business in 1997.
With TRL Engineering’s Intanka double wall monitored tank linings you are getting a brand new fibreglass tank installed within the old tank, that is fully compliant with Australian regulations.