World Bunkering - Special Edition 2012

WorldBunkering

THE ONLY OFFICIAL MAGAZINE OF

SPecial ediTion 2012

SPecial ediTionWelcome to Dubai

Middle east round-up

l Celebrating 20 years

l The way ahead

l Worry over waste

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This publication is printed on PEFC certified paper.PEFC Council is an independent, non-profit, non-governmental organisation which promotes sustainable forest management through independent third party forest certification.

SPecial ediTion

Published by:

Maritime Media The Diary HouseRickett StreetLondon SW6 1RUUKTel: +44 (0) 20 7386 6100Fax: +44 (0) 20 7381 8890E-mail: [email protected]: www.worldbunkering.com

On behalf of:

IBIA LtdGround FloorLatimer House5-7 Cumberland PlaceSouthampton SO15 2BHUKTel: +44 (0) 20 3397 3850Fax: +44 (0) 20 3397 3865E-mail: [email protected]: www.ibia.net

Publisher: W H Robinson

Editor: David Hughes ([email protected])

Project Manager: Dawn Barley ([email protected])

Project Consultant: Alex Corboude ([email protected])

Designer: Justin Ives (www.justindesign.co.uk)

The views expressed in IBIA Annual Convention Special Edition 2012 are not necessarily those of IBIA, or the publishers unless expressly stated to be such. IBIA disclaims any responsibility for advertisements contained in this magazine and has no legal responsibility to deal with them.

The responsibility for advertisements rests solely with the publisher. IBIA Annual Convention Special Edition 2012 is published by Maritime Media on behalf of IBIA.

WorldBunkering

Editor’s letter

This special issue of World Bunkering for the IBIA Convention in Dubai has something of a split personality.

This year marks IBIA’s 20th anniversary and we mark that with a good number of pages devoted to recalling the early years and noting the great progress made since then.

Do look carefully at the photographs we have managed to assemble and then look around at Dubai. Many of the same faces will be present, although perhaps looking more distinguished with the passing of the years.

This Convention is itself also another milestone as IBIA now has a new chief executive, Cliff Brand. Hopefully delegates will all get to meet him face to face but nevertheless we carry a potted history of his varied career, which includes several top posts in the maritime sector.

So in many respects this is a cheerful issue, celebrating achieve-ment. But there is no getting away from the fact we live in challeng-ing times. The Convention’s programme covers a range of serious issues facing the industry.

As I write this letter, news is coming in of the progress, or rather lack of it, made at the International Maritime Organization’s Marine Environment Protection Committee (MEPC). IBIA members will be disappointed that no decision was made on a standard procedure for port state control testing for compliance with sulphur limits. Many operators will be disconcerted by a recent case in Rotterdam where a vessel was detained for non-compliant bunkers despite having a bunker delivery note confirming compliance.

Another cause for concern for many in the industry is the MEPC’s refusal to speed up a critical study into the global availabil-ity of low sulphur fuel for ships so that the results are known before it is too late for the oil refining industry to respond and invest.

These issues and many others will no doubt be considered at length at what should be a constructive and thought provoking Convention.

David Hughes

Contact: Shazmeer Jiwan Alba Petroleum Ltd PO Box 97155 Mombasa, KenyaTel: + 254 734 539777 + 254 720 630000Fax: + 254 20 2689549Mobile: + 254 734 575744E-mail: [email protected]

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31

9

39

17

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22

43

IBIA Reports

Editor’s Letter 3

Chairman’s Introduction 7

Chief Executive’s Report 9

Welcome to Dubai 10

IBIA News 13

Chairman's recollections 14

IBIA 20th 17

Special Features

The way forward 20

Sohar interview 22

Setting the scene 26

Geographical Focus

Middle East 31

Traders 35

Saudi Arabia 37

Testing 39

Russian news round-up 41

Technical 43

Legal News 44

Diary 52

SPecial ediTion


I am writing this article after spending a relaxing holiday on Tobago, an Island with no discernible bunker industry participa-tion (gasoil by RTW only). The future diary is looking rather full. I shall be

lecturing in Oxford, where the first day of that course is the IBIA one-day basic course presented by two IBIA members, while the remainder of the course benefits from the experience of four IBIA council or board members.

I will also be attending the INTERTANKO bunker sub-committee next week as the IBIA delegate before shuffling off to SIBCON, where a number of board members will be presenting and where the secretariat and IBIA Asia will be flying the flag. All of this is in preparation for our Convention in Dubai in November.

Members’ interestsAs an association, we try to ensure that members’ interests and concerns are fairly represented to the widest audience and that “difficult” issues are debated openly. It is a matter of some regret that many of these issues are long standing and were one of the reasons for the foundation of the association so many years ago.

In many instances, we, the founding fathers of IBIA, thought we had discovered novel or radical solutions, only to find on further investigations that the original difficulty was much more complex than we had first thought. One of the main reasons for these “investigations” was a result of our own internal and external debates and without these we would never have reached the level of understanding that we now have.

Education, qualifications, buyer and seller trust, measurement

difficulties and quality assurance remain at the top of the agenda and we are approach-ing valid conclusions and a forward plan in at least three of these issues. Qualifications and buyer/seller trust remain obstinately unresolved and I hope that when we have the new Chief Executive in post, he will use his skills and experience to steer us towards robust and realistic outcomes.

Organisation of choiceIBIA is providing the conference chair-man and keynote speaker for the Platts Mediterranean bunker conference in Barcelona in early December and the chair-man of the first day of the Small Scale LNG bunkering conference in Amsterdam later in the month. These and other external

requests demonstrate that we are the organi-sation that a large number of bodies come to when they want to ensure that their particular sector is understood and recognised by the market place.

The Board Development Committee will soon be considering this year’s nominations for election to the board in 2013 and it will not be long before it is time to start thinking about candidates for the 2014 elections. The board needs a constant flow of new talent and new ideas to keep the association vibrant so if you want to put your name forward or you wish to propose another member for the board, please respond to the next call for nominations which will be made by the secretariat in mid-2013.

By the time you read this, our new Chief Executive should be in post and I hope that you have an opportunity to meet him in Dubai. The board is delighted with the appointment and we see it as the start of the next 20 years of IBIA’s mission to make the world of bunkers and bunkering a better place for all concerned.

Steering through troubled watersChairman Nigel Draffin explains how IBIA is meeting the challenges it faces and how it has become the go-to organisation for other shipping bodies.

Nigel Draffin

INtRODuCtION


A thriving communityAs Acting Chief Executive trevor Harrison steps down, he looks back on his time in the role.

New Chief ExecutiveThe most exciting news is that by the time you read this our new Chief Executive should be in post. The Board Development Committee has had the difficult but rewarding task of selecting a winner from a pool of outstanding can-didates. From the 60 original applicants, we invited nine for interview at the Baltic Exchange in London at the end of August. From these, we shortlisted four outstanding individuals for a second interview in early September, which led to a unanimous choice.

The new Chief Executive, Captain Cliff Brand, is a master mariner of 20 years’ seagoing experience; he has also worked as a marine superintendent, for the UK Maritime and Coastguard Agency as an accident investigator, running a major UK ports cluster as Harbour Master and, most recently, work-ing full-time for a large firm of marine consultants in London.

Board meetingsHistorically, the board has met four times per year: on the day of the annual dinner in February; in April at the start of IBIA’s financial year; in July; and at the annual convention, which is now regularly held in November. The irregular historical pattern seemed to have little to commend it and the board has now agreed that it will meet three times a year: on the day of the dinner in February; in late June; and in November at the convention. This produces a roughly even spread across the year and will produce a worthwhile cost-saving.

The reduction in meeting time has been more than offset by the introduction of monthly informal board telephone conference calls and pre-board meeting discussion sessions, both of which provide ample opportunity for wide-ranging discussion, which in turn enables board meetings to be shorter and more business-like without any loss of opportunity for opinions to be expressed and issues debated.

the futureThis should be my final report as Acting Chief Executive. I have had 15 fascinating months, filled to excess with activities events, opportunities and fun. I under-took the role on the basis it would occupy me one day a week for three or four months; the reality was that it lasted five times longer and the one day per week turned out to be closer to three.

Whether it has it been worth the time and effort will be for others to judge, but I have no doubt that over the past year the board has worked together in a spirit of co-operation and friendship that could not have been bettered. There is a powerful sense pervading all the board’s activities that it is our responsibility to

make IBIA work, grow and thrive. We are better informed and more closely

engaged in the association’s activities than we have been for many years and IBIA is consequently stronger and more purposeful than ever. Long may this sense of enthusiasm and purpose prevail.

I have no doubt that our incoming Chief Executive will be well-placed to build on the goodwill and enthusiasm that I have experienced in all my dealings with the board and the secretariat. I am grateful to all of them for the support they have given me in my temporary role and I am looking forward to resuming my place as an ordinary board member as we take IBIA into the next 20 years of its existence.

Finally, therefore, I must express my deeply felt personal thanks to Charlotte Egan and Chanette Roughton in Southampton, Fook Sing Kwok in Singapore, Kam Wah Chong as my fellow director of IBIA (Asia), Bob Lintott and Nigel Draffin as successive chairmen, and all the board members this year and last, without all of whose efforts I would not have been able to come anywhere close to fulfilling my role and without whom there would be no IBIA.

For more information, tel: +44(0)20 3397 3850

trevor Harrison, Acting Chief Executive

CEO REPORt

CONvENtION NEWS

10 World Bunkering Special Edition IBIA Annual Convention 2012

Welcome to DubaiIBIA’s 2012 20th Anniversary Convention looks

set to be one to remember.

It is unlikely that attending this year’s Convention will be the first visit to Dubai for many IBIA members, such is its importance in international commerce in general and shipping in particular.

Nevertheless most, even if they have been to the emirate many times before, still find new and breathtaking aspects of this incredibly dynamic city.

Dubai is the name of both the city and also the emirate with the largest population and the second-largest land area of the emirates making up United Arab Emirates (UAE).

Early settlersWhile it is known there was a settlement in Dubai back in 1095 and a town on the site of the today’s city in 1799, modern Dubai really traces its history back to 1833 when Sheikh Maktoum bin Buti al Maktoum and 800 members of the Bani Yas tribe moved to the area by the Dubai Creek. From 1892 to 1971 Dubai was a UK protectorate. In the early 1970s, Dubai and six other emirates came together as the UAE.

The discovery of oil, albeit in modest amounts compared to neighbouring countries, helped give impetus to the development of Dubai as a global city and a business hub with an economy mainly based on tourism, real estate, and financial services.

While temporarily hit hard in the post-2008 downturn, Dubai’s development continues, typified by the world’s tallest building, Burj Khalifa, now the magnificent centrepiece of downtown Dubai. The tower is surrounded by hotels, shopping malls and what is described as a “world of entertainment options”.

This year’s Convention venue, the Jumeirah Emirates Towers, is situated in the heart of Dubai alongside Sheikh Zayed Road, a few minutes walk from the Dubai Metro Station and just a short drive away from pristine beaches.

But don’t wander off too far, at least not until the Convention is over. This year’s gathering covers a lot of weighty issues, as well as marking IBIA’s 20th anniversary. From sulphur regulations to fuel quality, credit worthiness to CO2 reduction, the big topics are here. For a background on some of the topics covered. See page 26.

OpportunitiesAs ever at IBIA conventions, the speaker sessions are interspersed with social activities and opportunities for networking, starting with a networking welcome reception at the Jumeirah Emirates Towers’ Clique Bar – a night of champagne, canapés and shisha set against Dubai’s imposing skyline.

On Wednesday evening, we all adjourn to the Jumeirah Beach Hotel/Sunset Beach Garden for a Networking Cocktail Reception & Gala BBQ to celebrating IBIA’s first 20 years. The IBIA secre-tariat tells us to expect “Arabian enchantment and exquisite views of the Burj Al Arab”.

There will a be final chance to exchange views and business cards at Thursday’s Farewell Lunch. That will be followed by a tour of Jebel Ali port – expect to be impressed.

So, get ready for an action-packed and enjoyable few days.

Detailed information of where to go and what to see in Dubai can be found at: www.dubaicityguide.com.

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Meet our new CEOWith 27 years in the industry, Captain Cliff Brand is looking forward to his new role at

IBIA – and meeting as many members as possible in person at the Dubai Convention.

IBIA NEWS

IBIA has appointed Captain Cliff Brand as its new Chief Executive. A former head of the Gibraltar Maritime Administration, Brand’s 27-year career in the shipping industry has

encompassed a wide range of roles, including 12 years at sea, accident investigator and harbour master.

He took up his new appointment on 24 October, replacing IBIA board member and maritime arbitrator Trevor Harrison, who took on the part-time role of Acting Chief Executive on an interim basis after the resignation of its previous Chief Executive last year.

Welcoming Brand’s appointment, IBIA Chairman Nigel Draffin said: “Cliff Brand brings a huge range of experi-ence to IBIA and will be instrumental in developing and servicing a membership that represents all sectors of the marine fuel business. We are delighted to have him aboard. IBIA is extremely grateful to Trevor Harrison for his hard work and dedication as interim chief executive over the past year. ”

Brand began his career as an officer cadet in the deep-water fishing industry and subsequently spent 12 years in the Merchant Navy, progressing to master aboard AHTS and other specialist vessels in the offshore oil and gas industry. This was followed by a period ashore as a ship superintendent before joining the UK’s Marine Accident Investigation Branch as an accident investigator. During his time at the MAIB, he was responsible for investigating a number of high-profile accidents, many involving loss of life. During the same period, he obtained a BSc honour’s degree in shipping operations, as well as a diploma in marine surveying.

In 2004, he took up the post of Maritime Administrator for the government of Gibraltar, where he was head of the Gibraltar Maritime

Administration. During his two-year ten-ure, he was responsible for the substantial growth of registered tonnage on the Gibraltar Ship Register, as well as Paris MOU “White List” status recognition. He was also involved with the IMO.

Brand’s next job was as Chief Executive and Harbour Master of the Gibraltar Port Authority where, in addi-tion to running a port that is also one of the world’s larger bunkering hubs, he was involved extensively in the salvage of a high-profile marine casualty.

In 2008, he returned to the UK to take up the post of Harbour Master and Marine Manager for Harwich Haven Authority

As well as working with the bunker industry in Gibraltar, Brand has several years’ experience dealing with shipowners and bunker suppliers He has also over-

seen and contributed to international legislation affecting both bunkering and STS operations. Since his return to the UK, he has obtained an MBA in shipping and logistics and has been engaged in marine consultancy with a major London firm. Brand is also a Fellow of the Nautical Institute, a Younger Brother of Trinity House and has always had a very keen interest in maritime safety, flag state affairs and the shipping industry in general.

He says that he is looking forward to his new role as Chief Executive of IBIA and having the opportunity to get to know and understand mem-bers’ needs and concerns in taking the organisation forward at such a pivotal time for the bunkering industry. “Representing interests from across the entire marine fuels industry at the highest level is a hugely exciting challenge. With new legislation driving so many fundamental changes, there are many challenges ahead for the bunker industry. I look forward to making contact with members and developing the association, ” he says.

Captain Cliff Brand



In 1992, Doug Barrow, manager of the UK office of a bunker trading company, asked me if I would be interested in helping to start an industry association that would provide a platform for both buyers and sellers of bunkers. At that time, I was working for the shipping section of an oil major as its bunker

buyer. I liked the idea and got permission from senior management to participate.

I attended an initial meeting with 11 others from across the industry in a room at a hotel in London. In some ways, it was a strange meeting: my employer had told me that I could participate as long as I did not become publically involved with issues beyond education, safety and the environment.

Another participant from another oil major was allowed to par-ticipate with similar guidelines, but his company’s lawyers insisted that an anti-trust statement must be read out at the start of any meetings. So we commenced with Jonathan Lux reading an anti-trust statement and Bob Thornton and I constrained to discussing motherhood and apple pie.

Huge attendanceFrom those early discussions, we realised we were on to something and each participant took on different roles within the “steering group”: I was Safety; Bob was Environment. Our launch, at the first convention at Orlando (“You are going to a bunker convention at Disneyland? You can’t be serious!”) was a revelation: huge attend-ance, superb contributions from the floor, great social programme – we knew we were on to a winner.

In 1995, the IBIA convention returned to the US, this time to New Orleans. For the first time, the event was planned, organised and run by IBIA members, with the help of local “fixer” Clarence Dinkler the Third. The event was a great success, but after everyone went home we realised that our reliance on volunteer members would have to be replaced in part by a paid secretariat.

Up until that time, everything was done on a shoestring with all

council members involved in the nuts and bolts of administration, stuffing envelopes and chasing subscriptions and sponsorship.

One abiding memory of that convention was a group of delegates gathering in a meeting room with a TV and a video player to watch the Rugby World Cup match between England and Australia at 7:00 in the morning. One member, John Thompson of Gibson’s had the foresight to have his cooked breakfast delivered to the room while we watched the match, much to the envy of the rest of us.

Ethical compassWe sang songs and partied hard, persuading a member of another conference at the hotel (on Coin Operated Laundromats) to join IBIA as “You guys have so much fun”. I also remember our “ques-tion time” session where, when asked if they would encourage a son or daughter to join the bunker industry, one panel member said he would not, as he felt the business was losing its ethical compass. Hopefully, our organisation is helping to recover that position.

In Dubai in 1999, a highlight was the wonderful party at the Dubai Aero Club with music and dancing, followed by more impromptu singing in the roof top bar of the hotel by at least 40 of the participants well after midnight. The following year, our guest speaker at the IBIA dinner (Jim Bellew) announced the nominees for the IBIA convention dancing competition. Although we were both nominated, Angus Ogilvie and I were disappointed to see the award go to Corinna Cresswell – we felt our energy, commitment, sweat and undoubted style was trumped by the fact that Corinna was female and still in as new condition!

It is amazing to see how the association has developed and grown over 20 years. We have established IBIA as the people to go to when anyone needs to know something about our industry. We do not shy away from difficult topics – and we still have tremendous fun when we party.

Just look at us now!

IBIA: the early yearsChairman Nigel Draffin looks back on IBIA’s trail-blazing beginnings – and sense of fun.

EARly yEARS

Early years

Angus Ogilvie, Maria Tierney, Doug Barrow and others

at the bar of the Royal Sonesta, New Orleans 1995.

Bunker buyers and brokers at the Olde Mitre, London,1992

Breakfast meeting Doug Barrow, John Thompson, Paul Dyke, David Peart Paul

Burrows and John MacFarlane sometime in the early years

David Peart, Mrs Peart and Ivar Tonnesen, New Orleans, 1995

Shipping “Its a knock out” - The bunker team came 2nd out of 12, London

1994

More at the bar in New Orleans – Including Graeme Furze, hiding at the backGoris Vermeulen (Frisol) and Doug Barrow (New Orleans 1995)

New bunker industry reporters

Bill Eaton and Llewellwyn Bankes

Hughes, New Orleans 1995

Maria Tierney and Angus Ogilvie

dancing, New Orleans 1995)


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In the beginningIBIA’s first chairman, Doug Barrow, remembers how it all started.

IBIA RECOllECtIONS

Monday 29th June 1992 was a warm, early summer day. Stuart Kenner of MRC and I, working then for Maxcom, having finished a meeting, retired to a riverside hostelry to put the world to rights, especially the bunker industry.

There existed no cohesive body addressing the issues of our industry, particularly those relating to the quality and quantity of bunkers delivered and the creditworthiness of buyers. There had been some attempts to form single sided industry bodies to consider these issues, but they had failed and we took the decision that evening by the tranquil waters of the Thames, to try and form a bunker industry body.

We knew we would need the support of the whole industry and managed to convene the first exploratory meeting on 27th Oct 1992 with seven players, all covering their own costs so as to avoid any concerns of unfair market practices! It was agreed we needed get the views and support from across the globe and all sectors of the industry if this idea was to work.

A second, slightly larger meeting was held on 9th December 1992 and the company was officially formed on 29th January 1993 – seven months from conception to birth! Having agreed on the need for an industry body, some of those early considerations included the type of association. Should we have two separate bod-ies representing buyers and sellers? Should it be a national UK body, or was there a desire for an international body? What would be the aims of the association? How would it be funded? Who would run it? What would it be called? The name was chosen, but there were two alternative views on the meaning of our acronym IBIA. One was “In Barrow’s Interests Alone”!

The first formal meeting of the Steering Group of 23 partici-pants was held on 16th February 1993. There was representation from the UK, Norway, USA, The Netherlands and Singapore; from majors and traders, brokers and buyers, suppliers and surveyors as well as barge operators, lawyers, credit analysts and insurers. We soon expanded that group to 25 with inclusion of representation from South America.

Having formed IBIA, decided on its objectives, aims and structure, it was time to for the global launch which took place at a conference in Orlando 10-12 May 1993. Having been Chairman of the Steering Group, I had the honour of being appointed the first Chairman of IBIA, a role I enjoyed immensely until handing over to Antonio Cosulich in Malta in May 1996.

Sadly, some of those who were involved in the early days of forming IBIA, are no longer with us, many have retired or left the industry, but many are still active and it is with great satisfaction to know that the decisions taken that summer evening in 1992 seem to have been on the right track.

The bunker industry has reached maturity. It now has a globally respected body to represent the industry and it has been particu-larly successful in increasing the levels of education and awareness within the industry. It has taken the hard work, dedication and enthusiasm of volunteers from the industry as well as employees to have a body that has “made a difference” over the last 20 years. It has had its ups and downs, but, in my view, it has worked. I am proud to still have membership number 1 and the other alternative view of our acronym was “I Believe In Action”! I still do, and, whilst in Shanghai this month, I had the pleasure of talking to representa-tives from the Chinese bunkers supply market who are looking at how they may work collectively to improve their market – I hope they will join IBIA one day.

Antonio Cosulich takes up the storyIt was sunny, windy and dry on the island of Malta during the last days of May in the year 1996.

An IBIA conference was on; members attending were not too numerous, but very keen , and we were having an interesting time; at a certain point Doug Barrow took me on the side and told me that he was thinking to propose me as the next chairman of IBIA. I was shocked and surprised. Me? An Italian? I fought back but Doug won and my adventure as the second chairman was started.

It wasn’t simple, Doug had been an enthusiastic driving force for the association and to maintain such an allure was a daunting job.

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But I put myself down to work to the best of my knowledge and capacity. IBIA was, in those days, much smaller and simpler then what it is today; I still remember the meetings with Ivar Tonnesen, who was then our vice chairman (and later became our chariman), David Peart, Treasurer, Doug Barrow and myself, all of us sitting with Susan Hill, who was then our beloved and never forgotten secretary of IBIA, in her kitchen discussing the future of IBIA or the battles with or, better against, Mr Skundberg on the subject of our participation to the Oslo conferences.

Two intense and enthusiastic years spent trying to develop our various working groups: my principal concern and objective was, in those days, education, and I am happy to see that, still today, its rating is still very high. Many other goals have been achieved in these years; to be completely honest however, in those days I could not dream that our association would achieve what it has by taking our views to international forums like the IMO, the European Commission etc. These achievements, whenever they come to my mind, give me immense satisfaction.

Shaking hands “Antonio Cosulich and Doug Barrow”

Large group Delegates at the 96 Malta Conference

Council meeting May 96

4 people Doug Barrow and Frank Zammit left with

Maltese Prime Minister Eddie Fenech Adami


Future perfect?Acting Chief Executive trevor Harrison sets out his personal

vision of what IBIA’s future might look like.

One of the great things about looking into the future is that no-one can prove you wrong until after the event. On the other hand, years later, rash or wildly optimistic words can return to haunt you!

So, with that thought in mind, where do I see IBIA heading over the next 20 years? In the course of the past 18 months, IBIA’s elected board has spent many hours in discussion, reflecting on past achievements and contemplating strategies for the future.

It has been interesting and illuminating, with many differ-ences of opinion, always expressed, received and debated with friendly courtesy, but nonetheless subject to rigorous and penetrating analysis.

You might reasonably anticipate that achieving consensus among the 11 strong-minded individuals sitting round the board-room table would be a difficult task, but the reality has been pleasantly different.

PredictionsOn the basis of the board members’ discussions, both formal and informal, here are a few prophecies for which I alone am responsible:• Over the next two or three years, IBIA will see its membership

grow from around the 600 mark to somewhere above 1,000.• Most of the membership growth by sector will be from

those who represent consumer interests, predominantly shipowners and timecharterers. They have always been strongly represented at board and chairman level and will increas-ingly feature as both corporate and individual members, helping dispel the myth that IBIA is, or has ever been, a suppliers’ organisation.

• Geographically, membership will grow most strongly in the Asia-Pacific region, reflecting the steady shift of commercial power and influence away from the northern and western hemispheres towards their southern and eastern counterparts.

• Through an increased number of membership subscriptions and other activities, IBIA’s income will grow sufficiently to allow it to commit more resources to its lobbying and research activities, enabling the voice of the bunker industry to speak with greater volume and greater authority at the IMO, when dealing with regional and national governments and when discussing issues with other interest groups.

• Increased income will also enable a higher level of investment in the advice and information services available to members. This will lead to IBIA being a natural first point of reference for anything to do with bunkers and bunkering.

• Education, one of IBIA’s core activities, will grow from the provision of a small number of well-received training courses into a major part of the association’s activities. In some places where the demand exists – Singapore for example – IBIA will continue to provide training courses targeted at particular local needs and will no doubt continue to run its general bunkering courses whenever and wherever requested. However, the big change will be the introduc-tion of formal qualifications in bunkering, akin to those of other comparable industries, of which the most obvious parallel is shipbroking.

• Related to the introduction of IBIA qualifications will be the development of new categories of individual membership. There could be entry level as an associate progress-ing, on passing a basic bunkering qualification, to member and aspiring in due course, after obtaining the

tHE WAy FORWARD


advanced bunkering qualification and demonstrating sufficient practical experience and knowledge, to achieving the status of fellow.

• With the introduction of qualifications for individuals could come the development of codes of practice and service for corporate members and the establishing of ethical standards for members in all categories but any such development would come at a cost. There is no point in having standards if they are not enforceable, but supervision and enforcement require resources. This might all be a step too far for the majority of members – we shall see.

• IBIA already has two regional branches, centred in Singapore and South Africa. There is an obvious opportunity for a branch covering the Americas and perhaps there should be a fourth branch, distinct from the UK-based secretariat, to serve the needs of Europe and the Mediterranean. In time, the growth of the regions might lead to IBIA adopting a federal structure, with the main board and secretariat operating largely in a supervisory and advisory role and most of IBIA’s activities being undertaken in the regions.

These are little more than one person’s thoughts, while IBIA on the other hand is an organisation that represents, supports and strives to promote and protect the interests of its hundreds of members.

Whether you agree or disagree with what I have written, let your voice be heard – share your views and help the next 20 years be as rewarding as the first 20 years.

ComplicationsWhat is clear and certainly no mere prophecy is that the world of bunkers and bunkering will continue to grow ever more complicated; environmental and commercial pressures will lead to increasingly complex operations and practices, both on board ships and ashore.

The depth and mix of skills required to be an effective operator in the world of marine fuels, whether the source be liquid, gaseous, solid or even nuclear, solar or wind derived, will be significantly greater in 20 years’ time than at present.

The need for IBIA as a pan-industry body to represent interests and set standards can therefore only grow in importance.

So, with that thought in mind, let us all celebrate our achieve-ments to date and declare our enthusiasm and determination to make a valuable contribution to the future.

trevor HarrisonElected Board Member and (at the time of writing but hopefully not by the time you read this) Acting Chief Executive


INtERvIEW

Sohar so goodThe Omani port of Sohar may be the new kid on the Middle Eastern block,

but it has already taken full advantage of its strategic location, as its

Executive Commercial Manager, Edwin lammers, explains to David Hughes.

Oman has the advantage of both being very close to the Gulf and its concentration of maritime trade, and at the same having an Indian Ocean coastline. Until fairly recently, however, the north of the country – closest by road to the business centres of the UAE – did

not have a large commercial port. It certainly does now.I talked to its Executive Commercial Manager, Edwin

Lammers, about why the port was built and what has driven its subsequent development.

Why was it decided to build the port? “In 2002 a joint venture was established between Port of Rotterdam and the Omani government to create a new economic hub in the region. The country’s vision is to develop new economic sectors that will be, in the long run, less dependent on the oil and gas revenues. Besides that, as Sohar is located in a largely populated area, the gov-ernment puts strong efforts in creating jobs for the young workforce in the region. The port’s construction had already started in the late 90’s, but it is was found that a strategic partner was needed to actually develop the port.

With Port of Rotterdam, this partner was found and the start of the clustering of the industrial-orientated port was initiated shortly after the inception of the JV Company.”

to what extent is Sohar’s location outside the Strait of Hormuz a strategic advantage in both commercial and geo-political terms? “The strategic location outside the Strait of Hormuz is one of the key unique selling points. Together with the available and upcoming

multi-modal infrastructure, it offers an excellent opportunity for traders and shipping lines to serve their customers without having to enter the Gulf itself.

“Sohar is located only two to three hours’ drive from large con-sumer areas including Dubai, Abu Dhabi and Muscat. It goes without saying that this strong point is noted in the current times of tensions around the entry to the Gulf. Many shipping lines and local producers are seeking – and have actually started using – alternative locations on the Sea of Oman and Indian Ocean.

“Due to Sohar’s access to good land and sea roads, it is con-sidered one of the main alternatives, not only for the transport of goods, but also for marine services such as bunkering, crew change and STS operations.

Being close to the major shipping lines, with less deviation time than towards traditional marine service areas in the UAE, the uncongested Port of Sohar is an attractive stop for these services.”

What is the main commercial activity at Sohar Port and what volumes are being handled? “The Port consists of two main clusters. In order to optimise land uti-lisation, Port of Rotterdam introduced the cluster principle, meaning that after identification of strong potential areas, the infrastructure is set up as such that industries are located in dedicated clusters. For Sohar, it was determined that the two areas of biggest potential are the petrochemical sector and the steel/mineral sector.

“While the first part seems a logical conclusion based on the country’s natural resources, the second part was based on intensive studies done in the beginning of the development. It was recognised that the region has a large deficit of steel production, but a great need for it over the years. The development of a local steel sector


therefore became a successful initiation for Port of Sohar. Two large well-respected players, Vale from Brazil and Jindal from India, have proved Sohar can fulfil the regional hub role, not only for containers, but also for the steel and petrochemical industries.”

“The port is celebrating its 10th anniversary this year by con-tinuing the double digit growth it has achieved from the start. This year, the cargo throughput figures estimate that a total volume of approximately 40 million tonnes will be reached. The main con-tributors to these figures are the liquid bulk handling (approximately 15 million tonnes) and the dry bulk handling (approximately 21 million tonnes).

How important is bunkering to Sohar?‘It is critically important that Port of Sohar can provide bunkering services. It attracts non-captive ships to come to the ports’ perim-eters and take the required services. This offers a larger volume base for the service providers in the port.

“With the resulting economy of scale, the captive port users benefit from competitive service charges resulting indirectly in costs reductions for the supply chain in Oman. As an additional benefit, the local economy benefits from the auxiliary services of providing ship supplies, provisions and receiving seafarers in the local markets and malls.”

To what extent does Sohar Port see itself in direct competition with Fujairah? Has the recent downturn in

shipping led to fiercer competition in the region?“It is evident that Fujairah is the Goliath in the region with respect to marine services. Port of Sohar is not aiming to take over this position, but wants to bring additional quality services to the portfolio. Our vision is to be a world-class port and our highly reputable sharehold-ers demand the same from us. We have therefore put strict license conditions to the service providers in the port and monitor the operations closely to verify their adherence to these conditions.

“Port of Sohar is an attractive location and is is therefore pos-sible to convince owners that seek uncongested and high standard servicing of their vessels to deviate from Fujairah to Sohar.”

What plans are being made for Sohar’s future development?“A port development is a strategic infrastructure for a country. It is therefore important to continue short term developments on the basis of a long term vision. For that reason, Port of Sohar has a Vision 2030, but is also at this moment taking strong decisions to further increase the port capacity.

“This has not only been shown by the 2013 plans for the con-struction of a new liquid jetty and the reclamation of an additional 130 hectares of land, but is evident in the expansion next year in tug and pilotage services and the expansions for the container terminal and general cargo terminal.

“Although the additional volume resulting from the closure of Muscat port can easily be accommodated on the existing terminals, port development also requires strategic longer term planning to cope timely with future growth.”

• High quality ISO 8217-2010 bunker fuel

• Quality control from oil refinery plant to end user

• Flexible prices

• Main Sea Ports of operations:

St. Petersburg, Kaliningrad, Murmansk, Archangelsk, Primorsk,

Ust-Luga,Novorossisk, Tuapse, Port Kavkaz, Taman, Nakhodka, Vladivostok,

Vostochnyi, Kozmino and Sakhalin island

• Main River Ports of operations:

Moscow, Yaroslavl, Kazan, Samara, Volgograd, Rostov-on-Don, Astrakhan, Azov,

Ust-Kut, Nizhniy Novgorod

• International ports: Tallin, Riga, Klaipeda, Rostok, Constanta

GAZPROMNEFT MARINE BUNKER Ltd.

EnErgy of growth


Entering a new ageFrom carbon reduction to the use of LNG, David Hughes takes a look at some

of the issues that will come under consideration at the Dubai Convention.

The theme for this year’s Convention is “Looking over the horizon – strategies to 2030”. Topics include, among several other important issues, “Innovation v availability – who will start first?” and “Is LNG a realistic viable alternative?”.

The first of these topics leads us to look at some fundamental issues. In the short term, the industry needs to adapt to the require-ment to drastically lower sulphur and certain other emissions.

Increasingly, though, the need to reduce carbon emissions is being recognised as the big issue for the industry.

That is not to say the challenge of meeting the sulphur limits can be dismissed. At the recent International Chamber of Shipping conference, the managing director of the Finnish Shipowners’ Association, Olof Widen, gave a pessimistic view of the effects of increasingly strict sulphur regulations.

In a speech on compliance with low sulphur fuel – PROBLEMS in the Baltic and North Sea ECAs, he observed that while bunkers have been a low value by-product, in 2015 there could be strong competition for light products between shipping and road transport.

He asked if there was any move to converting refineries for distillates production or for heavy fuel desulphurisation installa-tions and said the answer was no. According to Widen, ensuring the global availability of 0.5% sulphur fuel in 2020/2025 seemed to be the oil industry’s main concern because of the magnitude of volume and investments required. He noted that estimates of the amount required in 2020/2025 range from 380m to 400m tonnes.

Widen’s main concern, however, was the impact of the 1 January 2015 reduction of the ECA Sulphur Limit, from 1.0% to 0.10%. He ran through the alternatives open to owners, non of which, in his view, were attractive.

Changing fuel from fuel oil to diesel would be expensive. The option of switching to LNG was limited by a lack of bunkering infrastructure. The of use of bio fuel was a possibility, but availability

was “very marginal”. Widen was also not optimistic about exhaust gas cleaning, noting that ongoing pilot projects with scrubber installations were having problems, especially regarding wash water in the brackish waters of the Baltic.

There will almost certainly be some other views aired at the IBIA convention on the feasibility of alternatives.

Nevertheless, Widen’s conclusion that ships complying with the new regulations will have an interesting market situation in the ECAs from 2015 seems reasonable given the short amount of time left. He then asked, and left open, three questions: Will ships trad-ing in the North European ECAs 2015-2020 have an advantage on the global market when the 0.5% limit comes into force? Will the price difference between diesel and fuel oil diminish in 2015-2020? Will there be a reversed globalisation after 2020?

That third question caused some discussion at the ICS con-ference and was followed by a presentation by environment campaigner Jonathon Porrit of the Sustainable Shipping initiative, which made clear that new thinking would be required over the coming decades

He told the conference: “The age of easy oil is over. Crude prices have shifted fundamentally, with increasing volatility and uncertainty. The view that there could be a production peak or even decline as early as 2020 is entering the mainstream.”

He added that volatile oil prices and insecure supply would present a significant challenge to shipping and the wider economy.

Porritt warned that, as climate change gathered pace, there would be increased pressure for shipping to be included in regional and global regimes to reduce greenhouse gas emissions. He cau-tioned too that price and regulatory uncertainty could undermine investment decision making. He said that strong leadership was required to prevent uncertainty leading to inaction.

The real problem facing the planet, according to Porritt is the potential future global warming if we “carry on releasing CO2 into

SEttING tHE SCENE


the atmosphere at rates anything like we currently do”. His conclu-sion will come as a shock to the industry. Porritt said that the vari-ous targets for CO2 reduction that shipping is currently struggling towards would eventually prove “irrelevant” as the industry would have to be 95% de-carbonised by 2050 as part of global efforts to prevent global warming reaching dangerous levels.

Will lNG be the answer?The use of liquefied natural gas (LNG) as a marine fuel is now an established fact. Commercial vessels powered by LNG in northern Europe, the US and elsewhere are now in service and the facilities for bunkering with LNG are starting to be established at major shipping hubs.

Earlier this year, the Maritime and Port Authority of Singapore (MPA) established a Joint Industry Project (JIP) to investigate the possibility of LNG bunkering in Singapore. The JIP is managed by Norwegian classification society det Norske Veritas (DNV) which has long been a keen promoter of the concept of using LNG to fuel containerships.

In Europe, Marquard & Bahls’ subsidiary Bomin and technology company Linde have announced that they plan to set up a joint venture to build an LNG infrastructure for the maritime sector.

The two companies said: “The new joint venture will set out to establish an LNG supply chain and to provide reliable, safe and environmentally friendly fuel to ship owners and operators. Bomin and Linde will bring in their respective know-how and experiences in the field of LNG. Linde will contribute its vast experience in cryo-genics and its best-in-class engineering know-how, while Bomin will support the joint venture with its excellent track record in maritime bunker fuel trading and operations.”

The plan is to establish operations in a number of key ports throughout the so-called “emission control areas” (ECAs) in North-West Europe. The partners in the venture said: “In particular

compared to conventional heavy fuel oil, LNG offers close to 100% reduction of emissions in sulphur and particulate matter, an 80-85% reduction of nitrogen oxides (NOx) and 20-25%t less CO2 emissions. The use of LNG as a solution for meeting the increasingly strict regulations requires a network of LNG storage facilities to be set up for the bunkering of vessels in main European harbours.”

Meanwhile, the number of ships using LNG is increasing and the areas of operation are expanding worldwide. For example, China’s state-owned China National Offshore Oil Corp (CNOOC) is build-ing the first two in a planned series of LNG-fuelled tugs, each fitted with two 6-cylinder Wartsila 34DF in line dual-fuel engines.

CNOOC says that the low emission levels made possible by using LNG are particularly beneficial for vessels operating close to population centres, while the high fuel efficiency enables lower operating costs. These 6,500 bhp tugs will operate along China’s coastline, and will be fuelled from the company’s own bunkering terminals.

The classification societies have been developing rules for LNG-powered ships. ClassNK recently issued guidelines on the safety aspects of the using LNG for propulsion and auxiliary engines. The new ClassNK guidelines provide comprehensive information on key design features including bunkering, hull structure, fire safety, and explosion prevention measures.

“One of our most important missions as a classification society is to help ensure the safety of shipping as the industry looks to ways in which it can reduce its carbon footprint,” said ClassNK chairman and president Noboru Ueda.

The class society notes in a statement: “As regulations curbing atmospheric pollution and greenhouse gas emissions grow stricter amid stronger calls for a greener shipping industry, attention is turning to the potential of natural gas as a cleaner alternative to liquid fuel oil.” It adds that LNG is widely used on vessels designed

Viking Line is due to take delivery of an LNG-powered ferry next year

World Bunkering Autumn 2012

27

Fuel for thoughtThree risk managers explain how to survive in a volatile bunker market.

RISk MANAgEMENt

W ith oil prices fluctuating up to $20 per barrel in a

month, keeping to fuel budgets is a challenge to

most companies. Nevertheless, Global Risk Management

claims that it is possible to plan ahead and

secure the budgets no matter what the petrol pump price is. It is all

about implementing an efficient risk management strategy that

fits your needs, says Hans Erik Christensen, Managing Director of

Global Risk Management.

“Every company is different and we work hard at customising

the hedging tools in order to find the perfect solution for our

clients. It could be that the client needs to fuel in ports with limited

access to the appropriate fuel quality; it could be that the vessel’s

timetable is not known well ahead – there is a mix of tools for every

event. One financial tool is a swap that allows you to fix the fuel

price at a predefined level, independent of market movements. It

is also possible to mix the tools. An example is the capped swap: a

mix of caps and swaps; a combination of a bought swap and a sold

cap option. “Basically, the choice of hedging tools depends on the com-

pany’s needs and wishes and we always base our recommendation

on an individual evaluation, in close co-operation with the client.

The risk profile and strategy of the company is an important part

of the evaluation, as is making a stress test of the impact of an oil

price increase on the budget. So if you do not already have a risk

management strategy, we strongly recommend you prepare one,

either in co-operation with us or with another fuel risk expert.”

trust and credit-worthiness

In these uncertain financial times, keeping to budget is one of the

parameters banks and other financial institutions look at when

evaluating a company’s financial status, Global says. Displaying

fixed fuel budgets to the counterparties enhances a company’s

credibility and increases chances of a reasonable credit line and

creditworthiness. Christiensen explains: “Earlier this year, we issued an extraor-

dinary oil supply update where we concluded that there is a tight

supply situation on oil ahead. This is still in play. However, with the

recent deteriorating situation and the uncertainty in the euro zone

and the softer economic outlook around the world, prices have

fallen considerably. Therefore based on each company’s risk profile

and strategy, the present situation offers a lot of opportunities.”

By putting its own advice into operation, Global Risk

Management announced a million dollar surplus at the end of June.

With more than double the amount of traded tonnes compared to

last year and a steadily increasing interest in management of price

risk on fuel expenses, the company is experiencing very positive

development. Total surplus in 2011/12 exceeds $2.8 million.

”At Global Risk Management, we have worked hard for several

years to expand the company and to perform financially. We have

succeeded very well this year and, apart from our financial result

being very sound, we will be hiring more employees in order to

supply a top-quality consultancy for our many new clients,” says

Christensen. The new employees at Global Risk Management

will be working both at the head office in Middelfart, Denmark

and the branch office in Singapore. Furthermore, the company is

focusing strongly on the American market, where many companies

with large fuel consumption have discovered the value of securing

themselves against oil price fluctuations.

“Often, our clients are surprised at how big a difference we can

actually make. Many large fuel consumers and suppliers just accept

the price fluctuations and thus the insecure budgets and difficult

Hans Erik Christensen

WB AUTUMN 2012.indb 27

03/08/2012 11:17

World Bunkering Autumn 2012

7

REPORTS

Nigel Draffi n

Chairman’s Introduction

A nother issue of World Bunkering

approaches and the editor has

been dropping gentle hints in

my mailbox!The last three months have

kept me occupied with requests for inter-

views and invitations to speak on behalf of

IBIA; however, I have been focussed more

on where we are as an association and

where we want to be in 12 months’ time.

I want to see a new CE in post, a

growth in membership and a renewed

commitment to providing information and

education for members. Our aim should

be to become the automatic choice when

members, or people from outside the

organisation, want information or advice

about bunkering ships.The acting chief executive will have

told you of our internal meetings and the

progress towards the appointment of a

new chief executive, so I will restrict myself

to the less concrete issues.Our world is changing, with new regula-

tions, new initiatives and a much-straight-

ened financial environment. We watch as

ship owners struggle to comply with the

new North American Emission Control

Area (ECA) and suppliers try to decide

whether to spend money on providing

storage and transportation for a product

that may only be on sale for two and a

half years.The current regulations still have opera-

tional difficulties and uncertainties which,

through our observer status at IMO, we will

do our best to clarify and refine. As always,

much of the task is one of informing and

educating the industry and its regulators.

Through participation in the

INTERTANKO bunker sub-committee, we

are exploring the efficiency of the high

sulphur/low sulphur changeover routines

and the impact on members of the differ-

ences between the verification procedures

for the commercial ISO 8217 standard and

the procedure set out in Appendix VI of

MARPOL Annex VI.We are also participating in the SIGTTO

committee working on the development of

regulations for the use of liquid natural gas

(LNG) as stored fuel for non-LNG tanker

shipping. This is a long-term project but

important to our members from all sectors

of the industry.I want the association to be in a position

to respond to developments which may

affect the membership by having prepared

and agreed positions . To this end we have

established a small committee to examine

the suggestion that the flash point limit

on marine fuels might be reduced. We will

also investigate the current discussion on

a proposed procedure for taking samples

from service tanks as part of MARPOL

enforcement.We are actively engaged in the Far East

through the work of local members and

IBIA Asia and its hardworking executive and

secretariat. If you are in Singapore, look

them up; they will be pleased to see you.

We are also developing our representa-

tion across the whole of Africa, building on

the strong local support from our Southern

Africa Branch and developing a business

model that can make our work there self-

sustaining.We have continued to keep the profile

of the association high at industry events

and the board and the secretariat will be

represented at SIBCON in October and

Platts’ Barcelona conference in December

in addition to our own Convention in

Dubai in November.These platforms are opportunities to

highlight issues that affect our members

and are important to the industry. For

example, we are often asked to consider

adopting formal requirements on ethics

and commercial performance. My own

view is that in order to keep the widest

possible participation in the association,

we should not adopt a prescriptive or

restrictive position on membership, and

we should be very careful before consider-

ing use of IBIA as a “mark of particular

performance”.These topics will continue to be dis-

cussed within the association, and my own

view is just one of many on the board. If

you have a particular subject you want us

to look at then tell the secretariat and it

will be considered for further action by

the board.

Nigel Draffi n


03/08/2012 11:17

WorldBunkering

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Publisher: W H Robinson Editor: David Hughes ([email protected])Deputy Editor: Sandra Speares ([email protected])

Project Manager: Dawn Barley ([email protected])

Project Consultant: Alex Corboude ([email protected])Designer: Justin Ives (www.justindesign.co.uk)The views expressed in World Bunkering are not necessarily

those of IBIA, or the publishers unless expressly stated to

be such. IBIA disclaims any responsibility for advertisements

contained in this magazine and has no legal responsibility

to deal with them. The responsibility for advertisements rests solely

with the publisher. World Bunkering is published by Maritime

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part of their annual membership package.

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AUTUMN 2012


03/08/2012 11:16

Interview with David Peart

IBIA Convention preview

Singapore upgrades

WorldBunkering

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TUM

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AUTUMN 2012

environmental issues dominate in BalticChallenging times for independents

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Comment

8

Maritime Security International Summer 2012

At a recent maritime security seminar in the UK, it was noted that there

appeared a lack of strategy to the maritime security of key international

sea trading lanes writes Paul Gibbins

Flag follows trade

W here ‘flag should follow trade’, the recent spate of piracy

off the Horn of Africa (HOA) has shattered any belief

that trade can continue irrespective of a coastal state’s

instability and the international community has struggled to

safeguard sea lanes. nowhere is the lack of any coherent maritime security strategy more

prevalent than in the gulf of guinea (gog) and for a region continuing to

provide highly prized resources to the international Community, there is

a clear need to formulate and agree upon a comprehensive approach to

counter the rise of maritime criminal activity affecting the area.

it is curious that a state of equilibrium has come about in countering

piracy off east Africa. Attacks for 2012 are down in the indian ocean

area and in a recent report by the international maritime bureau (imb) it

was stated that “overall, 177 incidents were reported to the imb Piracy

reporting Centre (PrC) in the first six months of 2012, compared to 266

incidents for the corresponding period in 2011.” Potengal mukundan,

the director for the imb said, “the naval actions play an essential role

in frustrating the pirates. there is no alternative to their continued

presence. the effective deployment of best management Practices, ship

hardening and, in particular, the increased use of Privately Contracted

Armed Security Personnel (PCASP), has also contributed to the falling

numbers.”the shipping industry is enjoying some semblance of normality in one

ocean whilst experiencing the surge of a similar problem on the other

side of the continent.maritime criminal activity in the gulf of guinea is

on the increase, with 32 incidents reported so far for 2012, including five

hijackings. this compared to 25 incidents for the whole of 2011 gives

clear cause for concern.Ship-owners are understandably anxious, their crews far more so, where

the “smash and grab” robbery is violent, pernicious and extremely

traumatic.there are many contributory factors affecting the maritime

criminal activity in the gulf, but just like occurrences of piracy over the

years, its origins lie onshore where poverty, unemployment, corruption

and free access to weapons give cause to launch attacks on commercial

vessels offshore. As witnessed in the indian ocean, it is a supreme challenge to gain

consensus between affected nations towards a comprehensive

approach in maintaining maritime security. to their credit, international

navies have made an impact, but they can’t be everywhere and in an

area the size of the indian ocean, the private sector has risen to the

challenge of maintaining maritime security where the public sector falls

short. Conversely, across the gulf of guinea, there are 10 nations trying

to enforce some maritime security of their economic and territorial

waters with varying public sector capability. For example, in nigeria, the

nigerian maritime Administration and Safety Agency (nimASA), tasked

with the statutory responsibility of providing security on the nation’s

coastal waters, is working reasonably well in the littoral, but simply

nudging the problem further offshore and in some cases into bordering

nation’s waters, such as benin. the international community, keen to

maintain safe sea lanes has provided welcome assistance towards

capacity building projects such as the force generation of coast guard

vessels, but until the incentives to put to sea is addressed, any measure

offshore is punitive at best.

MSI book.indb 8

21/08/2012 15:41

POLICY & FORUMSCorporate viewpoint

4

StandfirstQuTiatiasp eribustiur? Dunt a quibus niam, ad qui sa veliatur sam eos eatur, qui dia quatio debit, quisit,

Contact details

Picture

PictureLogo

CaptionMaritime Security International Summer 2012

As Germany’s leading maritime security services provider, ISN International Security Network meets clients’ needs with the highest standards

“The time is right to set some binding standards as more PMSCs operate with unqualified personnel”

Setting the highest standards of security

I n a divided market, making the dif-

ference is of the utmost importance

– something ISN fully understands. As

a security services provider based in

Germany, ISN has been providing armed

security services to shipping companies

by accompanying container and cargo

ships travelling in the high-risk piracy

areas off the East and West African

coasts and in the Indian Ocean.As the UK’s industry partner for the

regulation and accreditation of private

security providers, ADS is to introduce a

set of standards for the provision of pri-

vate security, both on land and at sea.

The same process has been initiated by

the German government which is work-

ing on regulations for vessels sailing

under the German flag. The time is right to set some binding

standards as more and more PMSCs

operate with unqualified personnel and/

or illegal weapons. A market shake-

up is inevitable to provide the highest

quality service to ship owners.Individual serviceISN develops safety and security con-

cepts for ship owners worldwide. Our

individual services range from merely

consulting via on-board audits up to the

operative deployment of armed escorts.

Our security personnel, being former

members of special police or military

units, have many years of professional

experience and are especially trained

for maritime security assignments.

We can provide the following: » Highly experienced, trained and

selected (European) personnel

» Regular intelligence and piracy reports » Vessel hardening to prevent hostile

boarding » Crew security training and drills

» Modern, effective and registered

weapon systems

A proven concept ISN’s concept of operations for

protecting cargo ships is based on

the following: » A prerequisite of physical and technical security measures,

including razor wire, physical protection of sensitive areas and

physical barriers to prevent access

through gangways. » The number of security personnel

deployed on any given ship depends

on the ship’s size and obstacles

obstructing view from the bridge to

ensure that, at any given time, the

entire ship and its surroundings are

in full view of the security team.

» Early warning systems and the prevention of unauthorised boarding

through the communication of warnings, evasive manoeuvres and

the use of firearms when necessary.

» Use of a safe room capable of housing ship personnel for up

to 96 hours. The safe room also

serves as a control centre capable

of controlling the ship’s course,

monitoring activity on board the ship

and communicating with emergency

responders and rescue teams.

» Procedures for security personnel to

respond to a violent attack on board,

aimed at preventing unauthorised

boarding and repelling an attack

on board the ship. Vessel protection in the

Gulf of GuineaIn response to the tremendous level of

demand, ISN recently announced that it

will also offer vessel protection in the

Gulf of Guinea. Despite the prevalence

of maritime piracy off the Nigerian

coast and in the wider Gulf of Guinea,

piracy in this region tends to receive

less public attention than in the Horn of

Africa and the Gulf of Aden. The grow-

ing frequency of attacks and the higher

insurance premiums for shipping in the

Gulf of Guinea led us to extend our offer

of services to vessels calling at ports in

the Niger Delta.Meeting our clients’ needs by provid-

ing the highest standards is our main

tasks as one of Germany’s pioneers in

maritime security.

For further information visit: www.isn.eu.com

MSI book.indb 4

21/08/2012 15:41

1

Summer 2012 Maritime Security International

PubliSherW h robinson

editorSandra Speares tel: +44 (0) 1483 527998 e-mail:

[email protected] mAnAger david Scott

e-mail: [email protected]

deSignerJustin ivesjustindesign.co.uk

Published by:

maritime media ltd the diary houserickett Streetlondon SW6 1ruuK

tel: +44 (0) 20 7386 6100Fax: +44 (0) 20 7381 8890e-mail: [email protected]

This publication is printed on PEFC certified paper.PEFC Council is an independent, non-profit, non-governmental organisation which promotes sustainable forest management through independent third party forest certification.

.co.uk

introductionPiracy is by no means a new concept but as a Newport News symposium on the topic pointed out in 1997 it was more a question of new methods for an old trade.

Since that symposium, with its memorable poster of a pirate brandishing an AK 47, took place, things have moved on and the recent upsurge of pirate activity off the coast of Africa, which is showing no signs of abating, ensuring the safety of crews, vessels and cargo has never been so important.

However, piracy is just one of the issues that needs to be tackled as far as maritime security is concerned. While new security firms are springing up almost daily,

leaving one to wonder if there are any personnel left in UK Special Forces or if they have all moved into the private sector, these are only part of the equation. Owners, managers, insurers, flag states and maritime charities are all part of the mix.

Maritime security is vital for the safe running of ports, offshore installations, and to ensure that seafarers and ships are protected against the dangers and difficulties that such issues as drug smuggling and carriage of stowaways represent. As offshore installations move into ever more isolated environments, security of those installations and the personnel that man them is a prime consideration, while port security is becoming ever more rigorous.

In this new publication Maritime Security International we will be looking to explore some of these issues and talk to people that are at the sharp end of ensuring the safety of all industry players, whether from a physical, legal or technical perspective.

MSI book.indb 1

21/08/2012 15:41

Counter piracy and ship security

Kidnap and Ransom

Port security

Summer 2012

www.maritimesecurityinternational.net

MSI book.indb 1 21/08/2012 15:41

The latest, most up-to-date, information on the maritime industry’s initiatives for greener, more sustainable shipping

Shipowner/operatorscarbon

managementstrategies

Fuelmarkets

Newtechnologies

Keyenvironmentalissues

international2012

www.greenshippinginternational.com

summer

International Freight Shipping

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PRICE HEADACHE GETS WORSESoaring bunker costs have helped push liner companies into the red

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– SECURITY - Soaring bunker costs

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– INSURANCE -Soaring bunker costs


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to transport the commodity and has started to be introduced on other types of ships. Around 30 vessels, including many Norwegian ferries and offshore support ships in the North Sea, are powered by LNG, with take-up of the fuel expected to increase in the near future.

Meanwhile, what is claimed to be one of the world’s most environmentally friendly cruise ferries – due to be delivered to Viking Line in 2013 – is being built in Finland at the STX Yard in Turku. The new cruise ferry, a 214 metre vessel with a top speed of 22 knots, will have the capacity to carry 2,800 passengers and will serve the route connecting Turku, Finland and Stockholm, Sweden.

The new generation ferry will use LNG as fuel. This will be a first for a passenger vessel of this size.

In another initiative, the Great Lakes Maritime Research Institute (GLMRI) is to study the the potential for converting steam powered Great Lakes bulk carriers to operate on LNG. The research will be part of a wider programme under a five-year co-operative agreement with the US Department of Transportation, Maritime Administration (MARAD), to address environmental issues that face shipping and marine transportation.

While there is clearly a lot of enthusiasm in parts of the industry for LNG, a recent report by Lloyd’s Register (LR) puts current initiatives into some perspective. It says that global acceptance of LNG as a marine fuel will depend on pricing. LR’s 2011-12 study on LNG bunkering and newbuilding demand for deep-sea shipping has taken 12 months of research and analysis. It does suggest some owners would be wise to consider fuel flexibility.

The study’s best-case scenario predicted that by 2025, there could be 653 deep-sea, LNG-fuelled ships in service, consuming 24 million tonnes of LNG annually. These ships are most likely to be containerships, cruise vessels or oil tankers.

When the study modelled relatively cheap LNG – for example, 25% lower than current market prices – the projected number of LNG-fuelled ships rose to approximately 1,960 units in 2025. If the cost of LNG increased 25% against current prices, the model found that hardly any new LNG-powered tonnage would hit the water.

To put these numbers in perspective, the UNCTAD Review of Maritime Transport 2011 notes that in January last year there were 103,392 seagoing ships in service. In other words, the LR’s “optimistic” scenario is that, in about 13 years time, perhaps about two in every hundred merchant ships may use LNG.

LR’s senior market analyst, Latifat Ajala, observes: “The difficulty for those looking to make decisions is that forecasting energy prices has always been a dangerous business. For shipowners looking to make these decisions, flexibility may be the key. Choosing engines that can burn both gas and fuel oil, or that can be converted, may be one way to manage the regulatory and commercial issues involved with fuel choices.”

LR’s head of marine business development, Hector Sewell, said: “The obstacles to the adoption of LNG as a marine fuel are practical factors, but they are not technical. They are commercial. Establishing safe, reliable global LNG bunkering capability is feasible. But it will require considerable investment and risk man-agement, and it will have to cover significant operational costs to challenge existing fuel-oil delivery systems.”

Concerning the new study, Ajala said: “We used a model based on LNG supply, trade routes, ship-type fuel consumption, port locations and bunkering demand, as well as shipowner and port surveys. We then applied three demand and price-driven scenarios. What we found was that the likelihood of global LNG bunkering facilities being established will depend on high demand for LNG fuel on deep-sea trades, which will be driven by the price of LNG relative to current and future alternatives.”

She added: “Excluding smaller ferries and local trades where there are local market, fiscal and regulatory drivers – such as in parts of the Baltic and Norwegian shelf – it was the container-ship and cruise-ship markets that were the most likely to adopt LNG. This is because of their relatively high energy requirements, the demands of customers in these two sectors, their regular trading patterns and the time those ships spend in emission- control areas.”

LNG-fuelled ships will cut CO2 emissions

CONvENtION NEWS


MIDDlE EASt

Eastern promiseDavid Hughes looks at how the Middle East’s bunkering industry is

adapting to a changing political scene and new regulatory requirements.

Political tensions continue to stay high in the Middle East and especially in the Gulf as the oil embargo tightens on Iran. So dominant are the region’s political considerations that the question: “How will regional geopolitical dynamics affect the bunker/shipping markets?” tops the list of issues slated for

discussion at next March’s International Fujairah Bunkering and Fuel Oil Forum (Fujcon 2013).

The effective removal of Iranian fuel oil from the market by US and EU sanctions has had a marked impact, although there is some uncertainty over the issue. In August, the International Group (IG) of P&I clubs received advice from the UK Treasury to the effect that Iranian-sourced bunker fuel can be bought without infringing EU sanctions.

The EU regulations include a ban on the import, purchase or transport of Iranian crude oil, petroleum products and petrochemical products, and on the provision – directly or indirectly – of financing or financial assistance, as well as insurance or reinsurance, related to those activities.

The IG said that, in view of the ongoing uncertainty relating to the applicability of EU Regulation 267/2012 to bunker fuels, the JHC wrote to HM Treasury seeking clarification on this issue.

It said in a statement: “A response has now been received from the relevant Treasury Department, having consulted with the UK Department of Business Innovation and Skills (BIS), the competent authority in the UK in relation to the export and import restrictions in the regulation. The response emphasises that neither the Treasury nor BIS is in a position to provide definitive legal advice. Absolute clarity can only be provided through an approach to the European Court of Justice.”

The IG continued: “However, subject to the caveats outlined in its letter, BIS has made the general comment that bunkers, fuel oil or engine oil used solely for ship propulsion or navigation would not fall within the scope of the Article 11 prohibitions [Article 11 concerns the transport of crude oil and petroleum products].”

But BIS also confirmed that “bunkers, fuel oils or engine oils carried for any other purpose though, including as cargo, would fall

within the prohibition and the provision of insurance cover for such transport would likewise be prohibited”.

However, the UK advice was met with industry comment that in practice the sanctions are so tight that owners would be unwise to attempt to take on Iranian bunkers.

The IG itself recommended that shipowners “should continue to exercise due diligence in identifying the source of bunker fuel stems and lube oil where there are grounds to suspect that these may be of Iranian origin and, where possible, to avoid Iranian stems”.

Despite the tense political background, trade continues to grow. For example, the Dubai Chamber of Commerce and Industry says its members report that exports and re-exports during the first eight months of the year have hit a new record, reaching Dh181 billion (US$49 billion) The Chamber notes: “This is the highest f igure recorded for the period, surpassing the previous record of Dh104.4 billion in 2008, and demonstrates that Dubai’s trade sector continues to prosper.”

On the back of strong trading activity, many players in the region’s bunkering industry take an optimistic view. Earlier this year, the Red Sea and Gulf Bunkering Conference (Rescon) was told that storage capacity at Fujairah, UAE, is expected to rise to around 7.8m cu m by 2014 from its current 5.8 m cu m.

The port’s harbour master, Tamer Masoud, said that the world’s second largest bunker port was experiencing booming demand from the Middle East and Asia. He added: “We’re working to develop our infrastructure parallel to the oil storage growth.” He noted that major storage projects by Aegean Maritime, Gulf PetroChem and ENOC were close to completion.

Meanwhile, the June completion of the Abu Dhabi Crude Oil Pipeline from Abu Dhabi to Fujairah, which can deliver up to 1.5 mil-lion barrels of crude oil a day, has given a boost to the port’s bunker market with large crude oil carriers taking on stems prior to loading.

In another infrastructure development, investors are planning to pump in some Dh477 million ($130 million) to build an oil stor-age terminal at Fujairah. India’s Infrastructure Leasing & Financial Services Limited and UAE-based Prime Terminal have formed a joint

Please allow us to show you how strongwe are in the Emirates.MONJASA has deep roots and expert local knowledge in the Emirates.We were the first international trading company to set up a physicaloperation in Dubai, and today we are probably the strongest and mostversatile bunkering company in the Emirates, with services in everyport and a sparkling modern fleet of seven tankers. Call us and allowus to make a difference.

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venture, IL&FS Prime Terminals, to build the 632,678 cu m terminal which will have 14 storage tanks and support facilities.

Actually in the Gulf, Dubai’s huge Jebel Ali is a mainly a container-ship port, but Mohammed Al Muallem, Senior Vice President and Managing Director, DP World UAE Region, says: “Bunker operations make an important contribution towards strengthening the services for vessels calling at Jebel Ali Port, the largest container port in the Middle East.”

He adds that last year, DP World announced major expansion plans at its Jebel Ali Port to raise its capacity from 14 million TEU at present to 19 million TEU by 2014. “And,” he notes, “we continue to evaluate our customers’ needs and market demand, and any other plans will be subject to the demand and the growth in the industry.”

In the first six months of the year, DP World handled 11.6 million TEU in the Europe, Middle East and Africa region. In Jebel Ali, UAE it handled 6.6 million TEU, 7.3% ahead of the first six months of 2011.

A new company has recently expanded its operations to Fujairah. Al Arabia Bunkering launched at Khorfakkan last October with one barge, which is now being used to supply both ports. “However,” said the company’s bunker trader Hassan Allami, “we do have plans to increase our barge fleet in the near future.”

He added: “The bunkering scene in the Middle East is still fairly strong. In the UAE, I would say that volumes have dipped slightly in

the past year or so as more bunkers are lifted in the far east. However Fujairah and Khorfakkan ports are both growing substantially and are looking to establish the east coast of the UAE as a bunkering hub in the wider region. For example, the new crude oil pipeline that runs into Fujairah is already having an impact as the storage capacity at Fujairah is ever-growing. I believe it’s still too early to talk about its impact on the bunker market, but I am sure it will be positive.”

Regarding the new IMO 3.5% Sulphur limit, Allami told World Bunkering: “If we look back to November 2011, you would have found that over 90% of fuel was over the 3.5% sulphur content. Surprisingly, it seems that this area has made a seamless transition in compliance with the new sulphur cap in 2012. I have personally not experienced any issues with our suppliers. In fac,t I read that DNV reported this region has a higher compliance with the new sulphur cap than the majority of other major ports around the world that have endorsed MARPOL Annex VI.”

Al Arabia is not able to supply ECA compliant fuel yet due to its limited storage capacity. “But,” says Allami, “there is a market out there and we plan to sell low sulphur MGO in the near future.”

Allami has a cautious view of prospects in the short-to-medium- term, noting: “In my experience, volumes have been slightly lower since the recession of 2008. I still feel that there are some major hurdles to pass in the near term before we ride out the storm which is affecting the shipping industry and the global economy as a whole.”

The bunker tanker A. Michel is now suppling ships at Khorfakkan and Fujairah

Dubai’s Jebel Ali Port. The emirate has seen its trade boom so far this year

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Jumeirah Lakes Towers

AG Tower, 35 floor, office JKL

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OP_MagAd_Final.pdf 1 10/8/2012 6:32:57 PM


tRADERS

Traders move inThe Middle East has seen an influx of fuel oil traders but it has

not been a good year for at least one major player.

The past year or so has seen increased interest by traders in either setting up or reinforcing their Middle East opera-tions, with some larger players investing storage facilities.

On one estimate, reported by Arab News, the the region’s storage capacity will have expanded by about

25 percent to about 4.8m cu m by the end of this year. To put this in perspective the Fujairah bunker market, the world’s third largest, handles volumes of around 1.5m tonnes a year while there several other significant bunker ports in the region mainly supplying container vessels,

Oil major BP was reported to have taken about 200,000 cubic metres of storage at Fujairah late last year. Other major companies that taken a higher profile in the region include Shell, Vitol and Trafigura and Chemoil. Russian traders Gunvor and Litasco, US major ConocoPhillips and Chinese major PetroChina are all reported to moving into the region where local players include , that have established a presence in the fuel oil market in the region Bakri and FAL Oil.

Chemoil says that its new Fujairah terminal facility through joint venture company GPSChemoil, complements its global footprint in the world’s largest marine fuel markets. In a statement Chemoil says: “With future plans to expand the terminal’s capacity, this further enhances our capability to meet customers’ needs with the flexibility and efficiency that they rely on. Chemoil’s physical supply operations will offer tanker customers highly consistent product quality and the strategic advantage of having a physical supplier that is present in both Fujairah and the Gulf of Mexico.”

Chemoil adds: “Our Fujairah operations are in keeping with our strategy of expansion – using Fujairah as a centre to service customers in the Middle East and the surrounding region. This approach is reflected throughout our operations in the Americas, Europe and Asia. Chemoil’s global network, including presence in the world’s three largest bunkering ports (Singapore, Rotterdam, Fujairah) makes life simpler for our customers.”

Last year another major bunker supplier and trader, OW Bunker Middle East, relocated to a new, larger office in Dubai “on the back of rapid growth in its trading business and strong prospects for the year ahead”. Jesper Jervild, OW Bunker’s Regional Manager for the Middle East and South Africa, said: “As the third largest bunker hub in the world, Fujairah is one of the focal areas for growth within the OW Bunker Group. We expect our rapid growth in the region to continue in the year ahead, along with our market share, and are focusing on developing our business with local customers in the Middle East on a worldwide basis.”

Since moving office OW Bunker has further strengthened its Middle East team by adding two experienced bunker traders.

Meanwhile in another move that could impact on the bunkering scene Chinese major Sinopec’s and Saudi oil company Aramco are to build a large oil refinery at the Red Sea port of Yanbu by 2014.

The $8.5bn will process 400,000 barrels of heavy crude oil per day. Aramco will hold a 62.5% stake in the plant with Sinopec holding the remaining 37.5%.

In stark contrast Sharjah-based FAL Oil Co has had a tough year, staving off creditors and seeing a modern tanker sold to pay off debt. Once the largest independent oil and bunker trader in the Gulf Region with total sales for the year 2009 close to 20 million tonnes of fuel continues to operate but has seen its opera-tions greatly curtailed. As of early October efforts to restructure about US$700m of debt and seek fresh funds of up to $620m were continuing.


SAuDI ARABIA

New fuel dealSaudi Arabia looks set to be in the forefront of production of a

cheaper alternative to current residual fuel.

Quadrise, the company developing MSAR (multiphase superfine atomised residue) oil-in-water emulsion fuel as a low cost alternative to heavy fuel oil in the shipping, refining, and power generation markets, looks set for a major breakthrough into the Saudi

Arabian market.In August the UK-based company said that its subsidiaries had

entered into Memorandum of Agreement with Rafid Group for Trading & Contracting to formalise their relationship in anticipation of contractual commitments for the application of Quadrise MSAR technology and fuel in Saudi Arabia.

This was followed up in October by a statement saying: “The fully detailed definition of the Saudi Aramco project planning and execution process will ultimately determine the MSAR implementa-tion timetable. The scope is expected to encompass the first major refinery project, followed by a larger scale programme to process the bulk of the available heavy residue within KSA to MSAR. Agreements covering the demonstration plant installation and subsequent pro-gression to full commercial operation are anticipated over the next 12-15 months.”

MSAR technology is claimed to not only to render heavy hydro-carbons easier to use by producing a low viscosity fuel oil using water instead of expensive oil-based diluents, but also to produce a superior fuel with enhanced combustion features. The technology is described by Quadrise as a “game-changer” for oil refiners as it frees up valuable distillates traditionally used for HFO manufacture, providing a viable alternative process for handling the bottom of the crude oil barrel without significant expenditure – thereby increasing profitability.

The Saudi deal commits the parties to an exclusive relationship within KSA. In addition, when contract terms are finalised for the first MSAR process installation in a major refinery in Saudi , Quadrise and Rafid will form a joint venture company to undertake all further business in KSA in which Rafid will hold an interest of up to 30%.

Saudi Aramco gave approval recently for the potential application of Quadrise MSAR technology in its refinery portfolio, following reaffirmation of refinery project economics by a cross functional

team of Saudi Aramco specialists. A refinery, currently producing 4m tonnes of fuel oil a year, has now been selected for the first MSAR process installation.

Quadrise said in a statement: “The final detailed definition of the Saudi Aramco project planning and execution process will ultimately determine the MSAR implementation timetable. The scope is expected to encompass the first major refinery project, followed by a larger scale programme to process larger quantities of the available heavy residues within the Kingdom of Saudi Arabia to MSAR.

The company added: “It is increasingly becoming a requirement for major international suppliers of technology services to Saudi Aramco to form partnerships with local engineering companies to ensure that Saudi nationals gain requisite experience. The agreement executed with Rafid and the intended joint venture company will ensure that Quadrise and Rafid are fully aligned with this guidance.”

Quadrise chairman Ian Williams said: “We are delighted to have concluded this agreement with Rafid. Their capabilities and reach have proved to be a very good fit with our expertise and technology. Saudi Arabia is a key market with enormous business potential for Quadrise, especially as the Government seeks to optimise energy resources in the Kingdom. Rafid is a proven partner for the Saudi Aramco programme, and for the many other opportunities evident in this market.”

Rafid chairman Abdul Aziz Al Mandil, said: “The Rafid Group is an established conglomerate with successful partnerships with major companies such as CNPC, CTCI, China Harbour and Rotary Engineering. We have a proven track record of winning multi-million dollar contracts with KSA customers such as Saudi Aramco, SABIC, SEC, SWCC and Marafiq. We have been convinced from the outset of our relationship with Quadrise that MSAR technology offers great benefits for both Saudi Aramco and the Kingdom at large. The recent approval of MSAR technology by Saudi Aramco is a major milestone. It confirms that the commercial basis has been established at the high-est level to proceed together with Quadrise, and now for us jointly to secure commitments to commercial applications expediently.”

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tEStING

Fuel for thoughtMichael Green of Intertek Lintec ShipCare Services explains

how legislation has affected Middle East fuel quality.

During the 20th century, Middle Eastern coun-tries occupied a status of huge strategic and economic importance in relation to the oil industry. Vast stocks of crude oil have elevated countries such as Saudi Arabia, Iran and the UAE into the top 30 global economies.

Its geographic location also gives the region a strategic importance with regard to shipping, acting as a bridge between the Far East and the western hemisphere. This is highlighted by the fact that, in 2010, Jebel Ali was rated as the ninth largest container port in the world. Other key ports such as Fujairah also see a very high throughput of traffic and, as such, the need for good quality bunker fuel is imperative.

As far as overall quality trends are con-cerned, historical data for fuels supplied in the Middle East has shown a close parallel with the global average, with around 20% of all samples tested having one or more off-spec parameters. But in the last calendar year we have seen a marked change in the average percentage of off-spec fuels in the Middle East region.

The figures for the second half of 2011 and the first half of 2012 show a considerable upturn in the number of fuels supplied that fall outside the limits stated within the ISO 8217 fuel standard.

These figures would suggest that something, somewhere, has gone drastically wrong – or has it? In this case, it is quite appropriate to quote the American author Mark Twain’s famous line about “lies, damned lies and statistics” as the figures quoted do not give us

Middle East % off-specs

Global % of off-specs

Q3 2011 26.4% 20.4%

Q4 2011 25.9% 19.6%

Q1 2012 34.0% 20.5%

Q2 2012 29.4% 23.0%

a true indication of the overall situation.Even though the figures do show that

nearly one bunkering in every three will be considered off-spec, it would be unfair to suggest that all tested samples that show one or more off-spec parameters will provide shipowners and operators with serious cause for concern.

In looking at the specifics of overall quality concerns, we must look at the physical test characteristics to see just how serious a problem this really is. When examining the data, an undeniable trend is quickly established. In Q3 2011, of all tested off-spec samples, 96% of the issues were related to viscosity, with none of the noted off-specs being considered critical (cat fines, flashpoint, sediment, and so on). In Q4 2011, 88% of all off-specs were viscosity-related, but 4% were related to sulphur content.

When crossing into 2012, we can see a marked change in the test figures. In the first quarter of 2012, viscosity was still by far the main contributor, with 60% of issues. However, 24% of all off-specs were now related to sulphur content. A further degree of clarity is achieved when we realise that the issues were in direct relation to the reduced 3.5% Global Sulphur Cap (implemented on 1 January, 2012).

Q2 of 2012 showed similar results in that viscosity still accounted for the bulk of off-spec samples, at 48%. However, 34% of all off-specs related directly to sulphur. 2012 also produced an increase in critical off-specs, with 1.2 % and 1.5% of all off-specs seen in Q1 and Q2 respectively.

In conclusion, it is fair to say that, although the initial outlook was somewhat bleak and the test figures do not provide a good first impression, further examination of the data has identified yet another situation where adaptation to legislative change has had a significant effect on the quality of bunker fuel available.

Michael Green

Marine Logistics Co., LtdOffice No. 18B-18F, One Capital Place, No. 18 Luard Road, Wanchai, Hong KongTel: (852) 2865-0381, Fax: (852) 2865-0189E-mail: [email protected]

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Industry appeal to PM

The Russian Association of Marine and River Bunkering Suppliers (SRO) has written to Russia’s prime-minister, Dmitriy Medvedev. The letter and accompanying docu-mentation present an analysis of the negative impact of MARPOL 73/78 restrictions on Russian shipping

industry, ports and bunkering industry after new regulations come into force in 2015.

The appeal to Mr Medvedev says that, in the view of industry experts, Russia’s oil industry will not be able to produce sufficient amount of low-sulphur residual fuel to meet the market demand. The letter says that switching the country’s fleet distillate fuel is too expensive.

Analysts’ forecasts predict a sharp drop in bunkering services in Russian ports in 2015, up to 40% year on year, which, SRO warns, will hit trade hard.

To prevent the collapse of the bunker industry, the Association has proposed that the government should establish a special working groups to recommend effective measures by the country federal government, particularly concerning the construction of LNG terminals and measures to ensure equal access to port infrastructure for all bunker suppliers.

tax exemptions for shipping mootedA deputy in Russia’s parliament, the Duma, has introduced amend-ments to the Tax Code of the Russian Federation to the Duma Committee for Budget and Taxes. Andrey Kolesnik has proposed exemption from taxation for new sea-going, short sea and inland waterways vessels. The proposed amendments are intended to reduce costs for companies investing in the modernization of their fleet. According to its proposer the initiative is aimed at helping the country’s shipowners while Russia becomes integrated into the global economy.

Olya port to be key hub for ME and AsiaThe first meeting of a Russian-Iranian working group on financial and banking cooperation was held in Astrakhan in September.

The group focused on the modernization of Astrakhan Region’s Olya commercial port due to its key position on international trad-ing routes. Olya lies at the Caspian Sea crossroads of a north-south corridor connecting Europe with Central Asia and an east-west corridor connecting Central Asia and China with Europe.

Olya port is to be reconstructed in two stages. Firstly, a new cargo handling area will be built near Olya town. Construction of a

RuSSIAN NEWS ROuND-uP

Russia’s prime-minister, Dmitriy Medvedev


second cargo handling are will begin later some 4 km to the south.The real development of Olya port began in 2006 after privati-

zation. The port opened in 1997 but only had three berths. Under private management the number of berths has increased to 14.

The project is mainly aimed at attracting new cargo traffic and developing the infrastructure to handle cargo currently transported on other routes. Construction of a new ferry terminal is almost complete. When the terminal is operational Olya will be the only port offering ferry service to Iran and Turkmenistan. Ferry services to Azerbaijan and Kazakhstan are expected to be announced soon. The terminal can handle unit loads, packaged cargo and containers.

Olya also has grain terminal with an annual capacity of 500,000 tons, is also available. Construction of the sunflower oil terminal is underway. There will be tanks for accumulation of shipload lots equipped with heating systems to ensure round the year opera-tions. Construction of a new complex to accept bulk fertilizers and package them prior to export to Iran is underway.

Construction of a new bulk terminal, annual capacity 750,000 tons, will begin in 2013. Coke, ore, cast iron will be handled there. The first stage of this terminal is expected to start operations at the end of 2014.

lNG bunkering bunkering initiativeGasprom deputy chairman Alexander Medvedev and Summa

Group Alexander Vinokurov, President have signed a memorandum of understanding on LNG bunkering for seagoing ships, including the Summa Group’s fleet.

Initially Gasprom and Summa Group are looking at cooperating in North and Baltic Seas. As well LNG bunkering for the Summa Group fleet the two companies are consider infrastructure projects, and in particular the construction of LNG storage facilities.

This cooperation may be further expanded to Black and Mediterranean basins and Pacific region where Summa Group owns terminals and operates several vessels.

“Strict emission restrictions in Northern and Baltic basins com-ing in power in 2015 give a strong impetus to switch to alternative fuel. Natural gas meets all requirements to ship engine emissions without installation of expensive filters and offers better prices than low-sulphur fuel. Technologies for LNG vessels, LNG ship engines, for fuel storage are well-known and available. Cooperation with Summa Group provides good perspectives,” Mr Medvedev said.

“The combined efforts of Summa Group, infrastructure opera-tor, and Gasprom, global producer of natural gas, ensure success for this ground-breaking project. I’m sure of its long-term positive impact on environmental footprint of sea transportation, and not only in our country. This initiative promises to set a new industry standard”, Alexander Vinokurov said.

Summa Group is a holding company with diversified activities. It manages assets in port logistics, engineering, construction, tel-ecommunications, oil and gas industry. The company has branches in almost 40 Russian regions and abroad and employs more than 10,000 people. The founder and the shareholder of the company is Ziyavudin Magomedov.

Rosneft buys Murmansk terminalRosneft has bought a residual fuel terminal in Murmansk from United Construction Corporation (UCC), Russian newspaper Commersant Daily has reported. The terminal is located within Ship Repair Factory No. 35’s site. Commersant Daily estimates purchase price to be about $30 million.

The terminal was built about seven years ago but lost money and operations stopped. The seller proposed several scenarios for the further development of the facility. The main proposal is to use a large tanker for alongside storage and then transfer to smaller vessels.

Another possible scenario is construction of a new 500,000 tons oil storage facility. The proposed Rb1.5m investment would increase annual throughput to between 3m and 6m tonnes by 2013-2015 and subsequently to 18 million tonnes.

Rosneft already owns other assets in Murmansk port. In 1996 the large tanker Belokamenka was chartered and used as a storage facility in one of ice-free harbours in Kola Bay. This vessel was not used to its full capacity. In 2010 only 7.5 million tonnes were handled against a theoretical maximum throughput of about 12m tonnes. The vessel’s charter will end in 2016 and some analysts believe this was why Rosneft bought the terminal. There is also speculation that Rosneft will use the Murmansk terminal as a base for launching new Arctic projects. The other r obvious use is for heavy fuel oil exports.

ust-luga port now one of Russia’s top 5Ust-Luga port in the Gulf of Finland doubled its turnover in the first half of 2012 compared to the corresponding period in 2011 and became one of the five top Russian ports.

Oil throughput tripled to 5.9m tonnes. Transshipment grew 130%, to 7.3m tonnes while general cargo throughput reached 662,366 tons, 145% up on the first half of 2011.

In August the Russian government published its draft order to expand Ust-Luga port. The document signed by Dmitriy Medvedev, Russian prime-minister, authorises the building of a new terminal, the infrastructure to handle 1.5m tonnes of LNG and 2.5m tonnes of light oil and harbour support vessel base.

The Caspian Sea: At the crossroads of trade


Improving efficiency, cutting costsTwo new products aim to help owners make significant savings.

EquIPMENt AND SERvICES

tidetechOceanography specialist Tidetech claims its new high-resolution tidal model for the Malacca and Singapore Straits will potentially save ships thousands of dollars in bunker fuel costs. It says simulations have shown that transit time savings of between 3% and 12%can be made depending on vessel type, speed and tidal phase.

Tidetech says the high-resolution (up to 800m) Malacca and Singapore Straits commercial tidal model is the first of its kind in the region and addresses one of the major needs of the 60,000 ships transiting these channels annually – that of improved efficiency and reduced emissions.

Improved efficiencyTidetech managing director Penny Haire said the global industry drive for improved efficiency in shipping, especially in light of the uptake of slow steaming, meant speed optimisation via the use of accurate tidal models could allow ships to save significant amounts of bunkers.

“By arriving at the optimal time, a ship can benefit from a favourable tide or current through busy, narrow or restricted ship-ping channels,” Haire said.

“This means a vessel can reduce speed, or maintain slow steaming speeds and save fuel, and also means the vessel can avoid having to increase speed to counter adverse current. We have run a simulation for vessels steaming between 14kt and 22kt and the difference between slowest and fastest times through the Straits’ amounts to a significant difference. This means time and money is saved and emissions reduced.”The model data is available in up to 10-minute time steps and can be integrated into ECDIS as a layer (or into other bridge systems), supplied within specialised optimisation software or as raw data.

“Our customers need a mixture of data options depending on how they want to use the information. We’re able to adapt to specific customer requirements,” Haire said.

Until now, the existing tidal information for the region was limited and based on short-term, single-point observations. Tidetech’s team of scientists have access to global bathymetry (depth) data, satellite altimetry information and local observations, which they use to calculate hydrodynamic models using highly-complex equations of motion that govern fluid dynamics.

Opcon PowerboxEnergy and environmental technology Group Opcon says it has received official approval from Lloyd’s Register for the first refer-ence installation of the marine application of Opcon Powerbox, which generates electricity from waste heat.

Opcon’s Powerbox ORC and Powerbox WST and the first instal-lation aboard Wallenius’s Figaro have received LR’s approval for use at sea. The first reference installation is expected to achieve fuel savings of 4-6%. The technology is expected to achieve fuel savings of 5-10% in other installations.

Integrating systems“Behind this success lies some enormous hard work carried out to integrate these systems,” says Opcon’s president and CEO Rolf Hasselström. “This is a milestone in our efforts to adapt our pioneer-ing technology for production of electricity from waste heat for use in marine applications.

“We will now fine-tune, test and verify the improvement in energy efficiency that this system offers in various operational scenarios at sea.

“By utilising waste heat and recovering the energy, signifi-cant environmental gains can be made. Considering today’s oil prices and the efforts being made by the IMO, for example with the coming International Energy Efficiency Certificate (IEE), we believe that this product really has come at exactly the right time,” Hasselström concluded.


lEGAl

Waste not?A Dutch court ruling has prompted a debate on whether off-spec bunkers

should be considered waste. Carel JH van lynden, attorney-at-law with

AKD Rotterdam, examines the arguments.

At the end of last year, a provincial Dutch judge decided that off-spec bunkers are waste products in a dispute that has caused serious concern throughout the market.

The dispute involved a company that had off-loaded bunkers from a seagoing vessel, having previ-

ously bunkered at Gdansk, Poland. The bunkers were off-spec. The district attorney impounded the fuel on board a bunker barge at Terneuzen, stating that the fuel was waste and thus subject to Dutch waste disposal legislation.

As the company had no licence to collect, sell and/or treat waste, the offloading and intention to sell was a violation of envi-ronmental regulations and, as such, a criminal offence. The appeal against the impounding was rejected by the court of Middelburg.

In that appeal, the district attorney argued that waste products are “all products of which a person disposes itself”. The district attorney further stated that off-spec fuel oil is a dangerous waste product.

Carcinogenic fuel oilThe court confirmed in very general terms that the bunkers had to be considered as waste because they could not be used according to their purpose for combustion in the ship’s engines. The court further stated that the MDS of the bunkers showed that fuel oil to be carcinogenic and therefore the bunkers were considered to be a dangerous waste product.

This ruling has created quite a disturbance in the market, especially since, on the basis of the decision, local port authorities will no longer give permission to offload and/or blend off-spec bunkers from seagoing vessels.

Carel JH van Lynden


The reasoning of the district attorney and the court are debat-able, to say the least. The carcinogenic argument is a very odd one because it would – in the general terms as used – lead to the conclusion that all dangerous goods, including on-spec bunkers, are waste. But the off-spec argument is also incomprehensible.

First of all, “off-spec” means that the product does not meet contractually agreed specifications, which in itself has nothing to do with waste, the environment or public law regulations. A contrac-tual provision is thus being used as a qualification for a public law qualification as waste.

Second, when fuel is on-spec in all respects but has an Al/Si content of, say, 62, it is technically off-spec (under the 2010 edition of ISO8217) but perfectly fit for purpose, and certainly on-spec within the terms of the 2005 edition of ISO8217.

Finally, what if the bunkers are off-loaded because they have not been paid for and the supplier claims the bunkers back as his property; or perhaps too much has been supplied and part must be taken off?

unfit for combustionIn the case heard by the Middelburg court, the fuel remained unfit for combustion on board even after having been diluted tenfold. But the generality of the considerations used by the district attor-ney and the court show a total lack of understanding of the nature of fuel and the meaning and gradations of the quality of fuel.

The same can be said of the reaction of the port authorities. The end result is that it is now almost impossible to offload and up-blend off-spec bunkers other than through licensed waste disposal collectors and processors.

The lucrative market of taking off-spec bunkers off the vessel has almost come to a stop. And when a supplier has unwillingly

and unknowingly provided bunkers with, for instance, an excessive water content, he cannot take those bunkers back within the Netherlands. Some suppliers have considered applying for a licence as a waste collector, but that is a long and difficult process.

The police in several districts in the Netherlands have, on the instructions of the district attorneys, begun testing parcels of fuel on board barges. At the same time, comments have appeared in the media, suggesting that fuel is being mixed with waste lube oils and other chemical waste as an inexpensive means of getting rid of them. Words such as “mafia” and “witch-brew” are even being used. It has been suggested that the whole industry is peopled only by bad guys. Yet no evidence whatsoever has been produced confirming such practices.

Waste product crimeIn my practice, when dealing with bunker claims, I have not come across this alleged physical waste product crime. Of course, refineries blend all sorts of products with fuel, and this does not necessarily make the fuel more environmentally friendly. But that is another question.

When authorities want to designate a product as waste under the rules of public law, they should introduce legislation that stipulates which properties may or may not be found in a product.

Simply saying that a product is carcinogenic, or stating that a product does not conform to contractual specifications, and thus is waste, can never be a basis for a specific country bringing the heavy cannon out against companies and persons acting consistently with their counterparts everywhere else on the planet. If this really is an issue, it is something that should be addressed on a European, or even global, level.

Heavy fuel oil from a refinery may not always meet the customer’s specification, but does that make it waste product?


YugBunkerService is a group of companies providing bunker services at the ports of the Black and Azov sea, and the river ports of Rostov-on-Don and Samara.

The group supplies a full line of top-grade marine fuels (a wide range of IFO and MGO) and engine oils to sea-going and river vessels.

YugBunkerService has been in bunkering for 16 years. Since launching our business in 1996, our priority has always been to meet and satisfy the requirements of our clients, providing superb service and high-quality fuel products at fair price.

Years of hard work in the field have given us invaluable experience and the opportunity to establish a well-developed infrastructure for delivery, storage and bunkering of marine fuel. As a result, we have grown to become one of the leading fuel providers in southern Russia.

Having our own marine storage and loading terminals, plus a fleet of eight vessels with deadweight ranging from 200 to 1,400 MT, we are flexible and capable of coping with the demands of all our clients, from small independent carriers to large shipping lines.

Being one of the biggest and most reputable bunker companies in the regional market, YugBunkerService has long-term and mutu-ally beneficial relationships with large Russian, Turkish, Ukrainian and Greek shipping companies, as well as with a number of bunker traders operating at the Black and Azov sea.

The main sea ports we operate in are Azov, Taganrog, Yeisk, Kavkaz, Temryuk and Taman.

We also provide bunker services at the river ports of Rostov-on-Don and Samara.

YugBunkerService is a member of the Russian Association of Marine and River Bunker Suppliers, and the International Bunker Industry Association.

Key information• Offices in Rostov-on-Don, Taganrog, Yeisk and port Kavkaz• Eight of own bunkering barges complying with loading and

supply regulations• Our own storage facilities, giving flexible bunker delivery options• Our own terminal at the port Temryuk, providing safe fuel

loading on tankers of up to 5000 DWTs• Fuel deliveries compliant with MARPOL and SOLAS regulations.

Our competitive advantages• Wide range of top-grade marine fuels from leading Russian

oil refineries• Well-developed and extensive supply network;• Best prices for our clients• Equal high-quality services at all our ports of delivery• Widespread compliance of our barges and loading facilities

with all legal and environmental requirements.

Our team is pleased to offer you our experience and knowledge, best prices and an excellent service on a 24/7 basis.

For more information, contact:Rostov-on-Don tel: +7 (863) 242-44-86+7 (863) 242-44-87+7 (863) 242-44-88 E-mail: [email protected]

yeisk tel: +7 (86132) 2-60-64E-mail:[email protected]

Port Kavkaztel: + 7 (86148) 4-43-47 E-mail: [email protected]

www.ybunker.com

yugBunkerServiceWith its own storage and loading terminals, and eight bunkering barges,

YugBunkerService is one of the leading fuel providers in southern Russia

COMPANy NEWS


COMPANy NEWS

transOilBunker Company An excellent reputation strictly maintained

In the 17 years since our establishment in 1995, TransOil Bunker has gained a deep understanding of our clients’ business, to become a reliable, fast moving and trusted partner.

Since entering the Far East bunker market, we have gained an excellent reputation among our clients – both national and foreign. We are in the top 10 bunkering companies – physical suppliers in our region.

Each year, we strengthen our position in the market and bring to our experience and knowledge further up to date. Recently, we upgraded our fleet, buying one tanker with deadweight 3350 tons and selling off an older one. Currently, we have at our disposal five bunkering barges from 600 to 3350 tons of capacity.

Our unrivalled technical facilities allow us to offer our customers different grades of fuels, from 30 to 180 cSt and MGO. We have developed a far-reaching net of fuel supply contractors from refiner-ies located in Siberia. They deliver fuel to our company by direct contract, which enables us to offer competitive prices to our clients. The quality of fuel is also under our strict control, starting from the refinery right up to delivery to oil terminals in our ports, and beyond to the supply of vessels.

quality assuranceThe systematic quality and quantity inspection performed by Saybolt and SGS always prove the quality of our products.

With quality of service, quality of fuels, safe work and envi-ronmental precaution forming the cornerstone of our company policy, we employ only professional, reliable personnel who share our responsibility for quality service. Every member of our staff understands that if our partners trust us, we must do our best to make sure it stays that way.

Further development of our company is focused on expanding activity and attracting new clients by active co-operation with well-known bunker traders in Singapore, Hong Kong, South Korea, Japan, China and Europe.

transOilBunker Company53 office, 11 Aleutskaya Street, vladivostok, 690091, Russiatel/fax.: +7 (423) 2642-448, 2608-550, 2642-449 Mobile: +7 914 704 28 56E-mail: [email protected]: www.transoilbunker.org

Portugal fuel stop

Based at Lisbon, Galp Energia Group, is able to offer fuel supply services to all ships visiting this warm and pleasant country.

Galp Energia has professional bunkers team provide its customers with high-quality fuels and services, and the highest safety standards in all its bunker activity and the company’s bunkering products fulfil the ISO 8217: 2010 specification in all grades. To help achieve customers’ targets on the environment, the company can supply low-sulphur fuels at several ports, with the port of Lisbon being the main port for low-sulphur fuel.

Optimising its logistics resources and storage capabilities Galp Energia is able to provide high-quality services and products, includ-ing a wide variety of marine distillates. Galp Energia is the main bunker supplier in Portugal, and provides bunker services using its two barges with capacities of 5,800 tonnes and 3,000 tonnes each.

A 5,800 dwt double-hull barge, Bahia Tres, began operations in 2010 to support the company’s business in the ports of Sines and Setúbal, meeting all the important aspects for safety and protecting the environment. It is equipped with anti-pollution measurers and is covered by European Maritime Safety Agency regulations in the Atlantic Ocean and Mediterranean Sea.

Always aware that its customers’ main concern is product cost, the company offers competitive prices without compromising prod-uct or service quality. Visiting Portugal and being supplied by Galp Energia will always be a good decision for regular customers, used to working with a professional team.

We are the only refinery in Portugal and operate refineries at Sines and Matosinhos. We have an extensive product range that includes gasoline, diesel fuel, jet fuel, fuel oil, LPG, bitumen and several aromatic products. Our refining business is responsible for the supply of oil products to our retail, wholesale and LPG marketing divisions, competitors and foreign customers, as well as for the operation of our refining and logistics assets.

We hold a significant position in the Portuguese crude oil products storage market. Our two refineries in Portugal together represent 20% of the Iberian refining capacity, and collectively account for the majority of Portugal’s annual domestic petroleum product requirements. We are investing approximately €1.4 billion to upgrade and improve the efficiency of our refineries, representing €1 billion for Sines and €0.4 billion for Matosinhos.

.

For further information contact:Galp Energia SAtel: +3512 1724 0637/654Fax: +3512 1724 2957E-mail: [email protected]


COMPANy NEWS

Rosneft Marine has continued to expand rapidly since it was established in London in 2010. A subsidiary of Rosneft Oil Company, Rosneft Marine has now set up a new office in Beijing

while expanding the number of ports that it services in Russia. The company officially opened its second office this May in

Beijing, China to service its growing Asian client base. Staffed with a multilingual team, the new office aims to support its regional customers with ease of communication and greater access to premium-quality marine fuel in the Far East.

In addition to expanding Rosneft’s presence in Asia, this move allows the company to provide specialised services to regional clients without any compromise on its existing offering to the global and European markets. The formation of this second office in Asia also comes at a time when environmental concerns are changing the landscape of international shipping.

Increasing demandDemand for low-sulphur fuel oils is expected to increase following the introduction of Emission Control Areas in North America, particularly for vessels travelling from Asia to the West Coast of the US. The company intends to work closely with regional ship operators who have US-bound vessels to supply them with ECA- compliant low sulphur fuels of the highest quality at attractive prices.

An integral part of its strategy for the China office will be to establish long-term partnerships with customers. The company hopes to collaborate with customers particularly on the basis of long-term formula contracts, as it is one of the few suppliers able to guarantee a reliable and consistent supply of high-quality fuel in the region.

As part of a plan to strengthen its presence in the Baltic and the Black Sea, Rosneft Marine extended its bunker supply network to include the western ports of Ust-Luga, Kaliningrad and Novorossiysk in April this year. The servicing of additional ports brings greater ease of access to Rosneft’s high-quality marine fuel in a wider range of bunkering locations to customers.

Rosneft Marine’s sister company RN Bunker is the logistics and domestic marketing arm of Rosneft’s bunkering business. It has just taken delivery of a new bunker tanker in the port of St. Petersburg under the terms of a 10-year time-charter agreement.

The RN Polaris is a 6,800 metric tonne-capacity tanker that is also registered as an ice-class vessel. It will be operating in St Petersburg, Ust-Luga and other parts of the Russian end of the Gulf of Finland.

Raising standardsIn order to further the company’s commitment to unparalleled assurance of quantity and quality, Rosneft Marine, together with its RN Bunker, is currently in the process of establishing Rosneft’s first full-quality management standard for its bunker supply chain in the port of Nakhodka (NQMBS). Standardising Rosneft’s bunker supply process ensures a reliable, consistent supply of premium marine fuel that is second to none in the market.

Rosneft Marine aims to have a similar implementation of standards across its entire bunker supply network in the future and will continue to seek expansion in other parts of the world with the aim of providing global clients with superior, localised service while still delivering premium quality fuel in Russian ports.

Rosneft Marine Strengthening its presence in the Baltic and Black Sea, as well as in China


COMPANy NEWS

AMK Group of Companies

One of the biggest companies on Kolskiy Peninsula, AMK Group of Companies was founded in May 2004. The main activities of the company are trading and transportation of oil

products such as:• Diesel• Petrol (all types)• Fuel oil M-100• Fuel oil IFO-380• Fuel oil IFO-180• Fuel oil IFO-30

The AMK Group of Companies consists of several companies involved in different types of activities: bunkering, road transportations of fuel, utilization of mixed oil products waste and bilge water. The company has loading facilities for vessels on anchorage or on scientific exploration in the area.

All companies are licensed for above mentioned activities. One of the main spheres of activity is bunkering of foreign and Russian vessels in Murmansk and other ports of Murmansk region and coastal shipping areas. The fllet of the company consists of tankers Lahta, Sever , Sosnovets, Dnepr, Don capable of shipment of all types of oil products and bilge water with capacity of up to 300 tons as well as transportation of up to 3300 tons of dark oil products and diesel. The tankers can go up to 20 miles off shore to bunker the vessels or travel to other ports. All tankers are staffed by highly trained specialists with at least 5 year experience of working at this type of vessels.

the transport facility of the company consists of 4 petrol tank lorries with capacity from 8m3 to 23m3 and 4 masut tank lorries with capacity from 15m3 to 23m3. These vehicles trans-port all type of petrol, diesel and masut in Murmansk , Murmansk Region and Republic of Karelia. The company has it’s maintenance and repair facilities at the Murmansk Sea Fishing Port, which com-pany uses to service it’s specialized equipment and providing repair services for other companies. All the drivers and mechanics of the company are licensed to work on specialized equipment.

In 2011 AMK group of companies added three more vessels to its’ fleet. Angrapa, Mirgorod and Ostrov Anzer are the newly purchased vessel that are currently involved in scientific exploration of Pechorsk Basin and Barents Sea aquatory. The fleet provides all-year-round monitoring of local environment analyzing its’ current state and tendencies of development.

In 2012 AMK started a new project “Offshore transshipment complex-2”. The facility was built in the aquatory of Kolsk Bay near Mishukovo settlement and is designed for transshipment of oil from vessel to vessel. Offshore transshipment of oil is very common world-wide due to it’s safety, environmental protection and high throughput capacity. It is also easy to manage and does not cost a fortune. The complex works all year round and 24 hours a day.

The company has also worked out a system called “The Plan for prevention and liquidation of oil spills” which provides safe conditions of work preventing oil spills and other emergencies and allows to quickly re-act if or when one occurs. The complex consists of multipoint offshore dock on mooring buoys with six anchorage mooring connections. Each connection has a mooring buoy, a bridle

and a component anchor which in turn consists of reinforced concrete anchors set in zug.

The location of the RPK-2 complex provides:• Safe docking of tanker in sever conditions (wind, waves, and other

repeated weather conditions )• Safe approach and departure of vessel, mooring and docking of

uploading and unloading tanker in weather conditions allowing transshipment of oil products.

• Remoteness from people populated areas required by health and safety regulations

• Ample Remoteness from other shipping routs and coastal and offshore docks excluding interference with other shipping activi-ties in the area.The company is in the process of planning a new project of

reconstruction of the offshore transshipment complex making it capable of receiving tankers of up to 210 tons, which will increase the annual transshipment capacities to 12 mln. Tons.

The company receives legal support from the specialist lawyers who are experts in world of law.

The AMK Group of Companies welcomes co-operation and partnerships in transportation of oil products on mutually beneficial terms.

Alexander Koltunov, Director Roman Moliboga, Commercial Director Maksim vorobyov, technical Director Anton Smolin, Head of Bunkering Mob: 007 9113090999

86 Podgornaya Street, Office 413 Murmansk, Russia 183038 tel/Fax: 007 (8152) 287828 tel/Fax: 007 (8152) 287337 tel/Fax: 007 (8152) 286028 E-mail: [email protected]


COMPANy NEWS

Nizhegorod Bunker ltd – going from strength to strength

Nizhegorod Bunker Ltd, the official representative of the oil company

Rosneft, specialises in fleet bunkering in the areas of Volga and the adjacent basin.

The company is extremely optimistic about the new navigation season, its reason for this being the strengthened relations with Rosneft and an ever-growing number of clients.

“The task of expanding our client data base is constantly being worked on,” says Vladimir Nikiforov, general director of Nizhegorod Bunker. “At the moment we are not only successfully working with Rosneft, but have also concluded 200 new contracts for bunker supply,

including one with Volzhskoye Parohodstvo. By the start of the navigation season we had received pre-payment for 3,000 tons of bunker fuel from our partners. This method has been used by our company for the first time and we see it as both a successful way of doing business and a demonstration of trust from our customers.”

The fleet consists of a park of flat-bottomed tankers with a total capacity of 300 tons and self-propelled bunkering vessels with the capacity of 600-1,500 tons. The company also owns a stationary oil station. The total of bunkering fleet tonnage is more than 7,000 tons.

In the recent years the company has increased its’ clientele from the North-West region of Russia. The bunkering spots in Nizhniy-Novgorod, Rybinsk and Sheksna are very handy and attractive to the shipowners of the North-West Shipping Company.

“We always aim for an honest partnership,” says Mr Nikiforov. “The customer should be confident that he is buying exactly the type of fuel he is paying for. As a result of this strategy we have strengthened our position in the North-West region and won the trust of the shipowners from the capital. In the near future we plan to open bunkering spots at the mouth of Kama and Nizhnekamsk.”

Nizhegorod Bunker ltd13/2, Ilyinskaya Street Nizhniy Novgorod Russia 603109 Office tel/Fax: 00 7 831 434 4845 E-mail: [email protected] Website: www.nizhegorod-bunker.ru

Vladimir Nikiforov,

general director,

Nizhegorod Bunker

Aditya Fuels l.l.C.

Based in Dubai, Aditya Fuels L.L.C., part of the Aditya Marine Group, offers fuels supply services to all ships visiting Dubai. The company supplies bunkers in Ajman, Mina Saqr, Sharjah

Hamriyah port, Ras al-Khaimah port, Jaballi, Steven rock jetty, and Khorffakan.

We have our own FO and MGO bunkering trucks, and the company is now investing heavily in building and developing our storage facilities. We are aware of the importance of uplifting bunkers at the agreed time and place; after all, ships need to be sailing, not standing idle.

We carefully monitor the supply and keep our customers informed of progress, 24/7. Our company policy is based on three major factors: quality, quantity and price; all our products meet with the ISO-8217:2005 standard and we pay great attention to safety and environment protection.

Our current expectation is that demand will outstrip what we had initially anticipated; in order to facilitate this, the deployment of a barge will be necessary for supplies at outer anchorage, something which we hope to address in the near future.

The company aims to maintain its high profile, and continue to enhance its international image as a professional supplier of quality bunker fuel. We value our clients and take good care of their bunker-ing needs. Furthermore, we always welcome new clients and are permanently ready to offer our services.

Mr N.v. RambabuManaging DirectorBunker SupplierFlat: No.115, Alzaruni ComplexDubai Islamic Bank Building, u.A.EMobile: +971555042872E-mail: [email protected]: [email protected]

East Cost India41-1-35, Rangayyanaidu streetKakinada-533007, IndiaMobile: 91 9848257582tel: +91 884 2366717/718E-mail: [email protected]: www.adioil.com

Mrs Sasi AdapaMobile:+44 7825152973E-mail: [email protected]


COMPANy NEWS

JSC Bunker Company

JSC Bunker Company, an IBIA (International Bunkering Industry Association) member, was the first licensed and certified bunker supplier in the Arkhangelsk port, North of Russia, for many years

after its foundation in 1996.The company has developed greatly since then, successfully com-

peting in the area providing high-quality product and services of real value to customers, refining the process of bunkering to perfection.

The company offers a wide range of fuel oils, all meeting ISO 8217:2005 standards: • IFO 30 HS/LS (RMA 30) • IFO 40 LS/HS (RMD 80)• IFO 120 HS/LS (RME 180) • IFO 180 HS/LS (RME 180) • IFO 380 HS/LS (RMG 380) • MGO (DMA)

Fuel quality is strictly controlled by the company’s certified laboratory, starting at the supply level of the product even before the fuel enters the storage tank.

Our main activity is all-season bunker supply to Russian and foreign vessels, both inside the port of Arkhangelsk, and off the port (Kandalaksha, Onega), as well as providing storage facilities, and blend-ing bunker material to ISO 8217:2010 specifications.

Since 2008, JSC Bunker Company has been annually awarded contracts as a bunker supplier of the Gas Pipeline Project in Baydaratskaya Bay where, along with fuel transportation, food-supply and sludge and garbage removal have been arranged for the conve-nience of the customer.

The company’s major lines of business at the moment are the purchase of bunkering fleet, as well as the active improvements and changes of its infrastructure and logistics within the bunker market to ensure prompt and smooth deliveries, to meet increasing demand.

34/1, Dezhnevtsev St., 163035, Archangelsk, Russiatel: +7 (8182) 6577 93Fax: +7 (8182) 420327E-mail: [email protected] For more information on these companies and to

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M/S ADITYA MARINE

MANAGING COMPANY "YUGBUNKERSERVICE" LLC

MONJASA A/S

NIZHEGOROD-BUNKER LTD.

OVERSEAS PETROLEUM & SHIPPING LLC

PENINSULA PETROLEUM LTD

PETROLEOS DE PORTUGAL

PLATTS

SOHAR INDUSTRIAL PORT COMPANY

ROSNEFT MARINE LTD

SAUDI SHIPPING & MARITIME SERVICES CO. LTD. (TRANSHIP)

SEARIGHTS MARITIME SERVICES PRIVATE LTD.

TRANZIT DV


28 January - 01 FebruaryMaritime Week Africa, Durban, South Africawww.petrospot.com/events/2013/201301_MWAfrica/profile.asp

18 FebruaryIBIA Annual DinnerLondon, UKwww.ibia.net/content.cfm?page_id=135

7-8 MarchMarine Propulsion ConferenceLondon, UKwww.rivieramm.com/events/annual-marine-propulsion-conference-2013-43/event-home-602

18-20 MarchCMA 2013StamfordConnecticut, USwww.shipping2013.com

26-27 MarchFUJCON 2013Fujairah, UAEwww.cconnection.org/conference/FUJCON/2013/Fujcon2013Home.html

09-11 AprilSea Asia Singaporewww.sea-asia.com

24-26 AprilInternational Bunker Conference Gothenburgwww.bi.edu/about-bi/calendar/the-34th-international-bunker-conference/

29 April – 03 MayMaritime Week Americas 2013, Miami, Floridawww.petrospot.com/events

20-24 May The Oxford Bunker CourseOxford, UK www.petrospot.com/events/2013/201305_oxford/profilepage.asp

4-7 June Nor-ShippingOslo, Norwayhttp://messe.no/en/nor-shipping/

05-07 JuneIstanbul Bunker Conference Istanbulwww.istanbulbunkerconference.com

DIARy

2013

28-30 NovemberThe Bunkering Symposium Antwerp, Belgiumwww.petrospot.com/events

3-4 DecemberFuel Management, Ship Performance and Energy Efficiency SeminarLondon, UKwww.lloydsmaritimeacademy.com

3-4 DecemberMediterranean Bunker Fuel ConferenceHotel Rey Juan CarlosBarcelona, Spainwww.platts.com

GREECE / AMSTERDAM / ANTWERP / FUJAIRAHGIBRALTAR / HONG KONG / JAMAICA / KHOR - FAKKAN

LAS PALMAS / MEXICO / MONTREALMOROCCO - TANGER MED / NORTHWEST EUROPE / PANAMA

PORTLAND - UK / ROTTERDAM / SINGAPORE / TENERIFE TRINIDAD AND TOBAGO / VANCOUVER / WEST AFRICA

GREECE / AMSTERDAM / ANTWERP / FUJAIRAH / GIBRALTAR / HONG KONG JAMAICA / KHOR - FAKKAN / LAS PALMAS / MEXICO / MONTREAL / MOROCCO - TANGER MED

NORTHWEST EUROPE / PANAMA / PORTLAND - UK / ROTTERDAM SINGAPORE / TENERIFE / TRINIDAD AND TOBAGO / VANCOUVER / WEST AFRICA

Documents

World Bunkering - Special Edition 2012