world bunkering - autumn 2013

THE ONLY OFFICIAL MAGAZINE OF

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AUTUMN 2013

Fuel quality

Testing times for fuel analysis

Chief Executive's vision for IBIA

Defying uncertainty in Middle East

Independents: shouldering more risk

Diverging views on lubes

WB Autumn 2013 book.indb 1 05/08/2013 15:09

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Editor’s letter

world Bunkering Autumn 2013 1

There is a lot going on right now, both in the bunkering industry generally and in IBIA in particular, and that comes out strongly in

the chairman’s and chief executive’s introduction to this issue.

In our interview the association’s new Chief Executive, Peter hall, makes it clear that IBIA is set for a period of change in which it further develops its role as the industry’s representative in forums such as the International Maritime organization (IMo) and, increasingly, as a source of information for members.

As a result, this year’s IBIA conference looks set to be one of the most significant so far with many new ideas on how to take the association forward set for discussion.

As ever, our News and Environment pages provide an update on what is happening both at an industry level and in the political sphere, which, has such a great and direct influence on bunkering’s day-to-day operations.

This issue’s features cover a wide range of topics. Independent bunker suppliers have been under pressure recently, particularly as finances are tight and they can increasingly find themselves acting as bankers to those further down the supply chain. we asked Søren Christian Meyer, Global Sales Director at ow Bunker if the role of the independent bunker supplier changed in recent years. The answer was resounding “yes”.

we also report in this issue on what has become a controversial topic: lubricants. our feature looks in some depth at the claims being put forward both for a single-oil solution and the

need for a range of lubricants for specific engine operating conditions.

Even the best lubricant cannot protect against damage from off-spec bunkers and our Legal page shows an expensive example of how things can go wrong. In this case, arbitrators in New York found that charterers were responsible for loading off-specification bunkers in Ukraine, and that their interests had been properly represented in consolidated arbitration proceedings to determine liability. Disputing the case cost the charterers nearly US$600,000. A cautionary tale indeed.

Even a casual glance through these pages will show that the initials “LNG” crop up almost everywhere. That is inevitable as the development of liquefied natural gas as a marine fuel progresses at a rapid pace, driven by the need to “do something” about the 0.10% sulphur limit in the Emission Control Areas (ECAs).

There is no doubt that LNG is going to be a significant part of the marine fuel scene within a very few years. And the rising interest among owners of deep-sea trading vessels in dual-fuel engines suggests that the use of LNG may not be limited to short-sea trades as is sometimes suggested.

however, the other currently feasible approach to complying with the ECA requirements, other than buying very expensive distillate, is also gaining momentum. Abatement technology, or “scrubbers”, also features throughout this issue.

while LNG and other possible alternative fuels have attracted considerable attention, scrubbers still offer the prospect of shipping

continuing to consume residual, high-sulphur fuel for the foreseeable future.

which way to go is likely to be a difficult decision for many owners and the issues are highlighted in our feature on Scandinavia and the Baltic. There, regional shipping faces the reality of having to cope with 0.10% in just over a year. That is concentrating minds.

To be fair, some minds in the region have been concentrated very much on this problem for a considerable time. It is well known that Norwegian classification society DNV has been among the global pacesetters in the development of LNG. Perhaps less well known is DNV’s involvement in the Finnish methanol project.

one shipping company that started to prepare well in advance is DFDS Seaways. It installed an Alfa Laval scrubber on the Ficaria Seaways back in 2009. Successful operation of this technology since then has now led the major regional ferry operator to install similar equipment on three more vessels.

Concern over emissions from shipping has sometimes been seen as a mainly European and North American obsession. That perception is likely to be finally dispelled at this November’s IBIA conference in hong kong, where moves toward an ECA are also well advanced.

while there will also be much else to discuss, ECA compliance is bound to one of the key issues at this year’s IBIA gathering. I, for one, am certainly looking forward to what will surely be a lively few days.

See you there!

David Hughes, Editor

Compliance and controversy



AUTUMN 2013

ANDROID APP ON

Publisher: W H Robinson

Editor: David Hughes [email protected]

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Head of Maritime Publications: Taj Oberai [email protected]

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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 adver-tisements rests solely with the publisher. World Bunkering is published by Maritime Media Ltd on behalf of IBIA and is sup-plied to members as part of their annual membership package.


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20


IBIA REPORTSEditor’s letter 1Chairman’s introduction 7Chief Executive’s report 9New members 11Events report 13Noticeboard 14Nominations 15

SPECIAl FEATuRESIndustry news 17Environment 22Interview 26Independents 28Fuel quality 31Lubricants 33Testing 35Risk management 37

GEOGRAPHICAl FOCuSMiddle East 39ARA 42Baltic and Scandinavia 44

Russian update 47

Innovation 57Legal news 61Equipment and services 63Preview: IBIA Annual Convention – Hong Kong 65Review: Istanbul Bunker Conference 66Book Review: LNG bunkering 68Book Review: Catching up 69

Diary 84

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AUTUMN 2013


Chairm

an’s welcom

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It has been over three months since I took up the role as Chairman and, at the very start, I said I wanted IBIA to do more to reach out to its members. This, I believe, is at the

heart of what IBIA is about: listening, responding, shaping and interacting with its membership and the world at large.

Listening

Getting a finger on the pulse was my first priority, capitalising on each and every opportunity to listen to you, its membership, adding to the picture that we gained through the membership survey. Living in Singapore and close to one of the world’s key bunkering hubs, I am no stranger to the “mega issues”, but I also have strong links with China and am aware of the “growing pains” represented in the region. But being a family man, I am all too aware that the smaller more local issues are of the utmost importance across the global IBIA family.

It is not often you get the opportunity of having so many members come to your door, so to speak, with Sea Asia 2013 taking place in Singapore in April and then Bunkering in Asia in June.

Also in June, I attended the Turkish Bunkering Association Conference, and heard of the challenges of supply, the establishing of an ECA and that thorny issue of how to implement internationally recognised procedures against a backdrop of “what’s going to happen next?”.

responding

Turkey was also the location of our first board meeting of the year. Cost is an ever present factor in any association and you could question why Turkey was chosen for a board meeting. The reality is that it was cost effective due to the number of board members speaking at

the conference. we elected Jens Maul Jorgenson as Vice Chair and Dilip kumar Moody as Treasurer.

But a key outcome concerned communications and, in particular, developing more effective communications. we agreed to monthly focused conference calls and to two formal board meetings a year (reducing the frequency, but extending each meeting to a full day). Improving our communication with the membership and delivering a stronger voice through the media to inform and educate is key to going forward.

Shaping

Continuing our focus on communication within the Association and considering how we can more effectively influence the regulatory authorities, the need to have a more robust and diverse working group structure is also on the agenda: “reaching the membership through participation”. we hope to unpack this further at the annual conference in hong kong.

Also key to shaping is representation at board level and I would like to take this opportunity to encourage your response to the board election notice in this edition: a strong presentation of all the membership is needed.

Interacting

In being part of the debate with a strong voice, we can not only shape the direction, but also have the ability to respond more quickly to the situation.

without a doubt, the current regulations still pose operational difficulties and uncertainties, which, through our Non-Governmental organisation status at IMo, we will do our best to clarify and refine.

I would like the association to be in a position to

respond to developments that may affect the membership by having prepared and agreed positions.

Growth

we are also developing our representation 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 would hope to repeat this process across the regions.

Finally, I look forward to welcoming you to the 2013 IBIA conference in hong kong. I know the conference programme is packed full of challenging and interesting things.

I am also told that there will also be a few surprises...

I leave you with the title: “Asian growth – global recovery?”

Simon Neo

Neo Tiau Gee

chairman, IbIA

The heart of the matter

Autumn 2013 7

further at the annual conference in hong kong.

Also key to shaping is representation at board level and I would like to take this opportunity to encourage your response to the board election notice in this edition: a strong presentation of all the membership is needed.

Interacting

In being part of the debate with a strong voice, we can not only shape the direction, but also have the ability to respond more quickly to the situation.

without a doubt, the current regulations still pose operational difficulties and uncertainties, which, through our Non-Governmental organisation status at IMo, we will do our best to clarify and refine.

I would like the association to be in a position to

chairman, IbIA



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Chief Executive's report

I was looking at past issues of world Bunkering and picked up the autumn edi-tion 2012. The opening paragraph of the CEo report was entitled “looking ahead” and at the end of the paragraph Trevor

harrison comments: “This will be one of the chief executive’s top priorities when they are appointed.” he was referring to increasing membership, but in terms of the words he used, was this prophetic?

keeping in context with this theme, we do indeed have a challenging, but exciting time ahead and, so far, we are on the right track, with one target well on the way to being achieved – we have increased our membership by 50 in the past 12 months.

But it is important to have both vision and a plan to translate that vision into reality. Charting the course requires identifying points at which we need to alter course and where we need to monitor progress along the way.

with this edition, you will find a copy of the annual report to members. within the report, I have set out some key performance indicators– measures that will indicate in the coming 12 months if we are on the right course to achieving our aims.

Annual convention

over the past few weeks, the secretariat has been busy finalising the arrangements for our annual conference in hong kong. I would like to encourage as many as pos-sible to come along as it promises to be a memorable occasion, with some surprises in store for those who attend.

This year’s focus is “Asian growth – global recovery?” – both a statement and a question, with key topics under discussion addressing local issues such as “Cleaning up the air in hong kong”, the regionally flavoured “Buying and selling in Asia” and not forgetting the controversial, but perennial debates about short delivery and fuel quality. There will also be features on training and education and, most importantly, a session on “listening to what our members think and want”.

Turkey board meeting

June saw the IBIA board meet in Turkey. The location was chosen as several of the board were speaking at the Turkish Bunker Conference and it would therefore be a cost-effective venue. with ever the eye on value for money, it was also agreed that the board would in future meet in person only twice a year, once in late April or May and once in November at the annual convention.

however, members should be aware that we also have a monthly teleconference. The objective is to spend extended periods face to face twice a year to discuss and debate policy, with sharp, focused, time-effective meetings monthly keeping a finger on the pulse of day-to-day activity. This will deliver, in my opinion, a more effective style of governance, helping to retain a high level of engagement between the board and the secretariat.

Activity

over the past few months, IBIA has had speakers at seminars in every continent in the world, utilising the experience of the board and membership to speak on relevant topics. Consequently we have seen the majority of the board attending the Turkish Bunker Association Conference in Istanbul, with three of them speaking, and further representation in Amsterdam, Antwerp, Piraeus, Texas, South Africa and, as I write, Simon Neo, Chairman, and a number of the Singapore Branch members are speaking at the Bunkering in Asia conference in Singapore. In the coming months, there are further IBIA speaking engagements in London, Ireland, the Middle East, korea, China and at our convention in hong kong.

Since the last edition, two IMo meetings have taken place – first, the Marine Environment and Pollution Committee (MEPC) in May and then the Maritime Safety Committee (MSC) in June. Further details of both these IMo meetings can be obtained via our website (www.ibia.net).

There are a number of areas of IMo activity that members will be interested in, all of which will take some time to work through, but which nevertheless could have significant impact in our arena. Air pollution and energy efficiency are key, while the revisiting of the proposal to lower the permissible flashpoint on certain fuels could lead indirectly to the introduction of more biofuel into distillate fuels. These changes could make it easier for suppliers to meet the lower sulphur limits and reduce the amount of blending, but, as always, we must beware of the law of unintended consequences.

New developments

we moved into our new premises in Singapore at the beginning of July, a convenient, centrally located office build-ing on Anson road with plenty of space for training courses, branch meetings and the secretariat.

Involvement

As a key part of ensuring we have a relevant and strong voice around the globe, I would like to take this opportunity to remind members of the opportunity to stand for election as a board member. we have four positions available for election in 2014; details are enclosed with this edition and can also be found on the website.

Peter Hall

“It is important to have vision”

topics. Consequently we have seen the majority of the board attending the Turkish Bunker Association Conference in Istanbul, with three of them speaking, and further representation in Amsterdam, Antwerp, Piraeus, Texas, South Africa and, as I write, Simon Neo, Chairman, and a number of the Singapore Branch members are speaking at the Bunkering in Asia conference in Singapore. In the coming months, there are further IBIA speaking engagements in London, Ireland, the Middle East, korea, China and at our convention in hong kong.

Since the last edition, two IMo meetings have taken place – first, the Marine Environment and Pollution Committee (MEPC) in May and then the Maritime Safety Committee (MSC) in June. Further details of both these IMo meetings can be obtained via our website

Peter Hall



Tel.: +351 217 240 654Fax: +351 217 242 957email: [email protected]

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Events


Event Manager ReportAs I write this I have been in my new role at IBIA for a little over 2 months, and it has been (and will continue to be) a steep but thoroughly enjoyable learning curve. In addition to getting to know a new industry’s language and terminology I’m gradually meeting people from around the world, while launching our 2013 convention in Hong Kong, working on our London International Shipping Week seminar, and planning the 2014 IBIA dinner amongst various other membership and marketing projects. One thing is for sure – my job is varied and stimulating!

Asian Growth: Global Recovery?

The 2013 IBIA convention will be from 5th-7th November at the Sheraton Hotel & Towers in Hong Kong, and we look forward to welcoming people from all walks of bunkering life and from around the globe. Key topics for discussion include:• 'Cleaning up the air in Hong Kong'• Short Delivery?• Buying & Selling: Asian bunker growth & the global impact.• Educating for growth

We have a programme of networking events to keep you entertained between lecture sessions. Following our welcome speeches we invite you to a cocktail reception in the Sheraton Hotel. We then have 2 nautical events lined up. Join us for cocktails and a barbecue under the stars at the prestigious Royal Hong Kong Yacht Club on Wednesday night; we’ll deliver you right to the door after a boat trip across the harbour. To finish off the convention in style we take to the high seas in The Bounty, the boat made for the film of the same name which starred Mel Gibson and Anthony Hopkins. Lunch and drinks will be provided as we sail around the harbour – places are limited though so buy your delegate pass now and save via our early bird discount.

For full convention information and to book visit www.ibia.net/events.cfm.

The International Bunker Association (Asia) Golf Challenge

At the time of writing preparations for the annual golf challenge in Singapore on the 26th July are in full flow. At the time of reading it will hopefully have gone ahead! The Haze in Singapore continues to be unpredictable, and could jeopardise our plans as the course will close if pollution levels reach an unpleasant threshold. I sincerely hope that all is well and the event once again raises money for our bursary fund.

Bunkering in Asia

Continuing on an Asian theme, in June many of the IBIA Exco spoke at the IBC conference in Singapore. Captain Rahul Choudhuri, Dennis Ho, Douglas Raitt and Simon Neo Tiau Gee were all well received. IBIA continues to have a strong presence at key industry events around the world.

london International Shipping Week (lISW)

On September 10th IBIA will be hosting a seminar and networking drinks reception at the Baltic Exchange as part of LISW. This will primarily be for our members who can bring a guest, but a limited number of spaces may be made available for non-members if capacity allows. For further details and to register visit the Industry Events & Offers page of our website or email [email protected].

The 2014 Annual Dinner

We are now taking bookings for our annual dinner on Monday 17th February at the Grosvenor House Hotel in London. This event attracts in the region of 1000 attendees, and is a great opportunity to meet your fellow industry professionals. To book tickets (or grab a whole table) visit www.ibia.net/events.cfm. Please note you have to be an IBIA member to buy dinner tickets.

New IBIA events

IBIA is expanding its event portfolio, and is planning a topical forum in the European area in 2014. Keep an eye on our newsletter and website for further details.

Event Manager ReportAs I write this I have been in my new role at IBIA for a little over 2 months, and it has been (and will continue to be) a steep but thoroughly enjoyable learning curve. In addition to getting to know a new industry’s language and terminology I’m gradually meeting people from around the world, while launching our 2013 convention in Hong Kong, working on our London International


Noticeboard

14 world Bunkering Autumn 2013

Individual membership: £150

Corporate membership: £700

corporate additional membership: £150

These increases took effect on 1 July 2012 and in future there will be small annual increases.

The Board has also decided that the present practice of listing Corporate Additional

Members does not properly and fairly meet members’ needs and some changes have

therefore been introduced that will more accurately match the benefits of membership to

its cost; affected members will be contacted directly by the Secretariat.

If you have any queries or comments about these changes, then please contact

[email protected] or telephone: +44 (0) 20 3397 3850.

IbIA World Bunkering magazine –

free copies for members of IbIA

Please note non-members are requested to

subscribe to the magazine at a cost of Pounds

Sterling £45, £60 or £80 depending on location.

Up to 20 additional free copies of the

magazine are offered to buyer members of IBIA

for forwarding to their vessels.

IbIA World Bunkering magazine –

discounts on advertising

Discounted advertising rates are available for

members, representing savings of between

£600-800 per advertisement, depending on the

advertisement size. Please contact the Advertising Sales Team at

Maritime Media London on + 44 (0)20 7386 6100

IbIA List of members

If your details are not correct, please let the IBIA

administration know at [email protected].

This publication is only available to members.

IbIA Guide to In-Line blending

Available free of charge to members

IbIA Guide to Avoiding and resolving

bunker Disputes

IBIA members receive their personal copy

free, but the report is offered for sale to non-

members at £50.

Evaluate the merits of a bunker claim

Interpretation of specifications for bunker

fuels and a guide to the question of

repeatability. For sale to non-members at £35.

IbIA Glossary of bunker and

Lubricating oil Terminology

A comprehensive guide to all those

complicated terms that are in daily use in

the bunkering industry. For sale to non-

members at £45.

IbIA Guide to Good

commercial Practice

on sale to non-members at £50 per copy.

IbIA Safety cards for vessels’ crews

IBIA buyer members receive copies of the

IBIA Safety Cards for distribution to their

ships, giving basic, plain English advice

about safe handling of bunker fuelsPlease note that all of the above

publications can also be downloaded by

members by visiting www.ibia.net and

logging into your account. Please then go

to the download section of the website.

IbIA LoGo

Free bromide supplied for use by

corporate members only.

IBIA noticeboardBenefits to members as at 1 August 2013

corporate additional membership: £150

MEMBERSHIP COSTS

IBIA PUBLICATIONS AND BENEFITS

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Prior to the Annual General Meeting (AGM) on Monday, 17 February 2014, there will be an election to replace four members of the Board whose term of office will end on 31 March 2014.

These elections are an opportunity for new people with new ideas to join the Board and take part in the running of the Association. In the same way as the elected officers of the Association change, so should the Board Members.

Members of IBIA are therefore invited to propose candidates for election to the Board whom they think will make a worthwhile contribution to the running of the Association. Prospective Board Members should be aware that being a Board Member is not just a titular position – they will be expected to take an active part in the direction of the

Association. A copy of the Guidelines for Board Members and nomination forms are available on request and on the website www.ibia.net.,

Prior to the Annual General Meeting (AGM) on Monday, 17 February 2014, there will be an election to replace four members of the Board whose term of office will end on 31 March 2014.

These elections are an opportunity for new people with new ideas to join the Board and take part in the running of the Association. In the same way as the elected officers of the Association change, so should the Board Members.

Members of IBIA are therefore invited to propose candidates for election to the Board whom they think will make a worthwhile contribution to the running of the Association. Prospective Board Members should be aware that being a Board Member is not just a titular position – they will be expected to take an active part in the direction of the

Association. A copy of the Guidelines for Board Members and nomination forms are available on request and on the website www.ibia.net.,

Nom

inations

Elections to the IBIA board of directors


comPLETED NomINATIoN FormS muST bE DELIvErED To THE SEcrETArIATNo LATEr THAN moNDAy, 28 ocTobEr 2013, EITHEr by PoST To:

IBIA Ltd, Latimer house, 5-7 Cumberland Place, Southampton, So15 2Bh, United kingdom

or BY EMAIL To: [email protected]

In both cases confirmation of receipt should be obtained from the Secretariat.

Nominations will not be accepted after the closing date.

candidates for election to the board must:

• Consent to stand for election

• Be paid up Members of the Association

• Be proposed and seconded by paid up Members of the Association

• Complete and return the Nomination Form, which can be downloaded from the website www.ibia.net


The International Bunker Industry

Association

LEVELS OF MEMBERSHIPCorporate:A corporate membership allows a corporation to register up to two other o� ces and contact details FOC.They can send as many employees of any registered company to events, training courses and working groups at member rates. They are able to delegate to di� erent members within the registered companies to attend committees. They are eligible to book tables at the IBIA Annual Dinner. They are able to use the IBIA logo on the website and business stationery.They will receive three free subscriptions to World Bunkering. (This is up to 20 for Buyer members)

This level of membership is designed for companies

Bene� ts allow companies• Discounts to training courses, IBIA endorsed events

- for all employees• Book tables at the prestigious Annual Dinner• Use of IBIA logo on their web site and stationary• Subscription to World Bunkering magazine

Join IBIA todayWhy Join IBIA?

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Individual:This allows one person to register as a member in their own name. You will receive one set of free publications and one subscription to World Bunkering. All special rates and attendance at events will be limited to this member only.

Membership Options:Individual: £150.00 p.aCorporate: £700.00 p.a

(e) [email protected](t) +44 (0)20 3397 3850


Global new

s


Global round-upAll the news from around the world

ow boosts Singapore operation

Danish-based global bunker supplier and trader ow Bunker has deployed a second bunker tanker in Singapore “as part of the company’s strategy to further enhance its capacity in its new physical operation” in the world’s biggest bunker centre. It has also applied to the Maritime and Port Authority of Singapore for approval for the use of Coriolis flowmeters.

The company announced initial trials of its physical operation in June 2013, completing deliveries using its first Singapore-based vessel, the Nepamora.

ow said that the 2011-built, 6,963 dwt An Hong will provide customers with a full range of quality products. She has a capacity of 6,100 tonnes, and pumping rates of up to 1000 m3/hr .

"we are pleased to be expanding our physical operation, which is testament to the positive response we have received from customers, who are looking for a high-value fuel supply service in the market," said Paul Bradshaw, General Manager, ow Bunker Asia.

he added: "This means providing them with not just the best quality products, but efficiencies throughout the entire bunkering operation: from simplifying the ordering process and helping customers to implement the most appropriate fuel procurement strategy, through to ensuring a fast turnaround time at the final delivery."

Meanwhile, the company has been using flow meters in a test trial against the normal tank gauging method.

“while any physical supply that we currently conduct will adhere to and be founded upon the strict guidelines of MPA's SS 600 from pre- to post-delivery via tank gauging, we have found that initial trials using Coriolis flow meters in conjunction with tank gauging have produced excellent results,” said Bradshaw.

“As part of this development process and given the potential of the technology in providing customers with extra assurance on quantity, we will work closely with MPA to seek approval for the use of Coriolis flowmeters in

Australia has increased its carbon tax

Australian carbon tax rise

Australian Carbon Tax increased on 1 July 2013, the first anniversary of the controversial measure, from 6.21 Australian cents per litre to 6.521.

In a circular issued in May, Inchcape Shipping Services (ISS) reminded owners of the increases in bunker duty and carbon tax, which are charged on all vessels that conduct a coastal voyage within Australian waters and bunker purchases within Australian waters for the purpose of a coastal voyage.

Domestic shipping services commenced paying a carbon tax as of 1 July 2012 and the tax is also imposed on foreign ships operating along Australia’s coastline. International shipping is, however, exempt.

ISS noted that the Australian federal government first introduced its carbon pricing mechanism in July last year as part of the national clean energy measures. The carbon tax affects excise liabilities and fuel tax credit entitlements.

A government paper explaining the new tax last year said that the marine and rail transport effectively paid no excise on the fuel they use, as their excise duty was offset under the fuel tax credits scheme. The new tax put an effective carbon price on those activities through reduced fuel tax credit entitlements.


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the coming months for our physical operations in Singapore. MPA has consistently championed the benefits of using mass flow meters as a means of driving industry progression and professionalism and it is something we intend to follow and act upon.”

Singapore suppliers lose licence

The Maritime and Port Authority of Singapore (MPA) has taken action against several bunker suppliers that it has found to have broken the conditions of their licences.

In the most recent case, MPA decided not to renew the bunker supplier licence of Coast-Channels Marine Services Pte, which expired on 30 June, “following contraventions of the terms and conditions of the bunkering licence”. MPA added: “This non-renewal of licence is akin to a cancellation.”

MPA said that the company was found to have breached Clause 3 of the terms and conditions of the Bunkering Licence (Bunker Supplier) by

allowing other companies to use its Bunker Delivery Notes (BDNs) to supply bunkers to the customers of those other companies. It notes: “This is the second such case this year.”

Since all bunker suppliers and bunker craft operators operating in the Port of Singapore are required to be licensed by MPA, this means the company is no longer allowed to operate as a bunker supplier in the Port of Singapore.

The MPA statement warned all licensed bunker suppliers that “the bunker supplier’s licence is not transferable under the terms and conditions of the bunkering licence”.

It continued: “All licensed bunker craft operators are also advised not to make use of any bunker tankers to deliver bunkers on behalf of any person, firm or company that is not a bunker supplier licensed by MPA.”

Earlier in June, MPA had cancelled the licences of two other bunkering service providers, bunker supplier Golden Lights hS Bunkering Pte and

bunker craft operator Shing Li Shipping Pte. MPA said Golden Lights was found to have breached Clause 3 of the terms and conditions of the Bunkering Licence (Bunker Supplier) by allowing another company to use its Bunker Delivery Note (BDN) to supply bunkers to the customers of that company.

Shing Li was found to have breached Clause 31 of the terms and conditions of the Bunkering Licence (Bunker Craft operator) for delivering bunkers on behalf of an unlicensed company to customers of that company.

Singapore is the world’s top bunkering port, supplying 42.7m tonnes of marine fuel in 2012 and now has 70 licensed bunkering companies.

Eu proposes co2 monitoring rules

The EU Commission has published a proposal for a regulation on the monitoring, reporting and verification of Co2 emissions for maritime transport (MrV). It has gone into detail in describing the regulatory framework for a mandatory Co2 MrV, including how such a regulation could be implemented.

The European Confederation of Shipping Associations (ECSA) has stressed the need for global agreement on MrV. Its secretary general, Alfons Guinier, responded to the Commission’s proposal saying: “ECSA can see value in the EU initiative for an MrV system of Co2 emissions, as a contribution towards finding the most appropriate global solution for Co2 monitoring from international shipping.

“It then follows that any mandatory requirements on MrV for the international shipping sector must be agreed upon at International Maritime organization level, as this is the only way of securing a globally harmonised system. ECSA appreciates that the commission is following this line of thinking.”

According to ECSA, any MrV system must be accurate, simple, cost-effective and exclusively based on the vessels fuel consumption.

ECSA strikes a cautious note saying that, although the proposed regulation is supposed to be of generic nature, some details have been included that proved to be sensitive in the discussions with industry and do consequently need further consideration.

The EU is seeking to regulate CO2 emission monitoring

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rEmPEc spots illegal spills

Some 700 vessels were monitored by five aircraft from Algeria, France, Italy, Morocco and Spain taking part in a recent Co-ordinated Aerial Surveillance operation for illicit ship pollution discharges in the western Mediterranean.

The main objective was to enhance operational co-operation in the Mediterranean to combat illegal ship pollution in the region.

The oSCAr-MED 2013 operation was organised by the regional Marine Pollution Emergency response Centre for the Mediterranean Sea (rEMPEC), with the financial support of the Government of France and the rAMoGE Agreement (Saint-raphael-Monaco-Genoa pollution agreement).

It was co-ordinated by the Spanish Maritime Safety Agency through its Maritime rescue Co-ordination Centre in Palma de Mallorca.

The patrol aircraft from the five countries monitored marine pollution from ships in a designated area of the western Mediterranean, where three oil slicks were detected.

The European Maritime Safety Agency (EMSA) supported the operation

by providing satellite images from the CleanSeaNet service.

This was the second oSCAr-MED operation organised by rEMPEC. The first one, when three aircraft from France, Italy and Spain participated, was held in Toulon, France in 2009.

Global scrubber market set for growth

The marine sector will be one of biggest scrubber markets in the short term, according to a new report from the McIlvaine Company. It said it sees a bright future for scrubbers because of the many different applications where they can used to capture particulate, acid gases and odours.

The research firm’s report, Scrubber/Adsorber/Biofilter world Markets, said that one of the biggest short-term potential segments is the capture of So2 from the ship funnel emissions. It pointed to the effect of sulphur restrictions on the use of high sulphur bunker fuel.

however, McIlvaine saw the largest investment as being for wet and dry scrubbers to capture the emissions from incinerators. This includes those that burn hazardous waste, garbage and commercial and industrial waste. Municipal wastewater plants purchase scrubbers and biofilters to remove the odours and to capture sewage sludge incinerator emissions.

The scrubber market is surging

700 vessels were monitored by five aircraft in the recent operation

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Environment


ICS highlights cost of environmental regulationAs David Hughes reports, there is continuing progress at IMo on the technical issues facing shipping, but the industry is worried by the costs of compliance

Speaking to delegates at the opening of the Nor-Shipping event in oslo in early June, International Chamber of Shipping (ICS) chairman

Masamichi Morooka, said that impending legislation to protect the environment potentially presents an additional industry-wide cost of more than half a trillion US dollars between 2015 and 2025. he said that this worked out around US$50bn of additional capital and operating costs in each year for a 10-year period and beyond.

he warned: “As many companies struggle to survive during the difficult years ahead, we must persuade governments to avoid placing yet more straws that risk breaking the shipowner’s back – and the straws to which I refer are the impending costs of environmental legislation.”

According to ICS, much of the additional costs will result from the switch to low sulphur distillate fuel, assuming that a 0.5% global sulphur cap comes into effect in 2020, in addition to the 0.1% sulphur requirements that are expected to be enforced in Emission Control Areas in North-west Europe and North America from 2015. however, the costs of installing new ballast water treatment equipment will also be significant, as will the potential

contribution that shipping might have to make to the UNFCCC Green Climate Fund.

“The imminent switch to vastly more expensive, low-sulphur distillate fuel is a serious concern which is compounded by worries about the adequacy of supply and the dangers of modal shift,” said Morooka.

he explained that the key message that ICS was communicating to regulators was the need for greater focus to be given to the economic sustainability of shipping, backed up by evidence of years of continuous improvement of shipping’s environmental performance. “Many of the expensive environmental regulations that are about to enter into force were conceived in a different world, at a time when shipping markets were booming and finance for retrofitting had not dried up,” he told Nor-Shipping delegates.

ICS had taken the opportunity to tell the annual gathering of the transport ministers from more than 50 countries at the oECD International Transport Forum in Leipzig, Germany, what the shipping industry thought.

Speaking on behalf of ICS, Stena Chief Executive Carl-Johan hagman said: “In the current economic climate the shipping industry has to

work in close contact with shipping’s global regulators, especially the IMo, and make them fully aware of the implications of their actions.”

he added that protecting the environment is of great importance, but pointed out the need for a balance between the measures taken do this and their economic impact.

hagman told the closed meeting: “Distillate fuels currently cost around 50% more than residual fuel and the difference between the two fuels is expected to increase as the use of distillate becomes mandatory.

“without significant extra production of distillate fuels, how should ship operators manage these extra fuel costs?”

Questioning how ship operators will manage all the additional costs associated with eco-measures, Mr hagman said the increases “threaten to rise so high that they may have a dramatic impact on world trade or force cargo back onto roads or to other less carbon-efficient modes of transport”.

he cautioned: “If governments and regulators are serious about the concept of sustainable shipping, then we must give serious consideration to these cost-benefit questions.”

In a similar vein at Nor-Shipping, Mr Morooka stressed that the protection


Environment


of the environment must always remain a priority for the industry, but the prevailing economic situation required that a degree of pragmatism should be applied to enforcement as a plethora of new environmental regulations was implemented. “Unless this is understood, there is a danger of creating real barriers to investment in our industry as we hopefully move closer to recovery,” he said

The ICS‘s chairman’s remarks came a few weeks after the 65th session of the International Maritime organization‘s (IMo) Marine Environment Protection Committee (MEPC). According to the IMo, the meeting made significant progress in its work on further developing energy-efficiency regulations.

It adopted an MEPC resolution on Promotion of Technical Co-operation and Transfer of Technology relating to the Improvement of Energy Efficiency of Ships and gave the go-ahead to carry out an update to the greenhouse gas (GhG) emissions’ estimate for international shipping.

In addition a new MEPC resolution on Promotion of Technical Co-operation and Transfer of Technology relating to the Improvement of Energy Efficiency of Ships requested IMo to provide technical assistance on energy efficient technologies to developing countries.

The MEPC also approved the terms of reference and agreed to initiate a study for an updated greenhouse gas (GhG) emissions’ estimate for international shipping, following discussion in an expert workshop, which met earlier this year, on the methodology and assumptions to be used.

The new study will focus on updating key figures in the current (second) IMo GhG Study (2009), which estimated that international shipping emitted 870 million tonnes, or about 2.7%, of the global man-made emissions of carbon dioxide (Co2) in 2007.

Many companies will struggle to survive during the difficult years ahead

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Environment


The MEPC continued its work on further developing technical and operational measures relating to energy-efficiency measures for ships, following the entry into force, on 1 January this year, of the new chapter four of MArPoL Annex VI, which includes requirements mandating the Energy Efficiency Design Index (EEDI), for new ships, and the Ship Energy Efficiency Management Plan (SEEMP), for all ships.

The Committee approved draft amendments to MArPoL Annex VI, with a view to adoption at the next MEPC meeting, to extend the application of EEDI to ro-ro cargo ships (vehicle carriers), LNG carriers, cruise passenger ships having non-conventional propulsion, ro-ro cargo ships and ro-ro passenger ships; and to exempt ships not propelled by mechanical means, and platforms including FPSos and

FSUs and drilling rigs, regardless of their propulsion; as well as cargo ships having ice-breaking capability.

Among several other measures, MEPC adopted the 2013 Interim Guidelines for determining minimum propulsion power to maintain the manoeuvrability of ships in adverse conditions, which are intended to assist administrations and recognized organizations in verifying that ships,

Group to promote LNG’s use as marine fuel formed

As interest in LNG as a marine fuel progresses to the project implementation stage, gas carrier group Society of International Gas Tanker and Terminal operators (SIGTTo) has set up a new industry body to address technical and safety issues.

The number of LNG-fuelled vessels, although still small, is increasing and “in the absence of any other industry body dealing with the technical and safety issues associated with the use of LNG as ship fuel” SIGTTo has acted to ensure high standards are applied from the start.

SIGTTo set up the new NGo the Society for Gas as a Marine Fuel (SGMF) in response to the increasing use of LNG as a marine fuel.

SIGTTo said that when it initiated an online survey recently it found that support for an NGo such as SGMF was “overwhelming across the maritime industry”. The new society is a non-profit making organisation registered in Bermuda, with a London liaison office.

SGMF’s objectives are: to encourage the safe and responsible operations of vessels using LNG as fuel and all marine activities relating to the supply of LNG used for fuel; to develop advice and guidance for best industrial practice among its members; and to promote criteria for best practice to all who have responsibilities for, or an interest in, the use of LNG as marine fuel. LNG carriers using cargo boil-off gas for fuel are not included within the scope of SGMF’s area of responsibility, but the use of any other liquefied gas as a ship fuel is.

Membership will be open to the main stakeholders involved in the LNG bunkering supply chain: bunker suppliers, shipowners, bunker barge operators, port authorities and regulators.

SIGGTo said that the use of LNG as a ship fuel lies outside the scope of the terms of reference of its by-laws. “however,” it said in a statement, “SIGTTo has unparalleled experience of

liquefied gas handling, including in the use of cargo boil-off gas in LNG carrier propulsion systems, in its representation of the gas shipping and terminal sectors. The Society believes that this accumulated body of knowledge will be invaluable to the nascent LNG bunkering sector.”

SIGTTo president Luc Gillet said: “The use of LNG as a marine fuel presents a major challenge for the shipping industry over the coming years. I am pleased that SIGTTo is playing a leading role in the launch of this new NGo. we believe that our participation will yield benefits for not only the gas shipping industry but also the general maritime community.”

In the absence of any other industry body dealing with the technical and safety issues associated with the use of LNG as ship fuel and as part of its commitment to maintaining high standards across the industry, SIGTTo said it has taken on a proactive role. As a first step the Society was instrumental in establishing the cross-industry Natural Gas Marine Fuel Safety Advisory Group in July 2012 to advise on the design, operation, maintenance and training for natural gas marine fuel systems. The initiative has now been taken a stage further with the creation of SGMF as a formal NGo. SIGTTo can now revert back to devoting its full resources to liquefied gas shipping and terminal matters.

SIGTTo’s general manager, Andrew Clifton, said: “This new industry body is a major step, forward in the enhancement of safety and best practices covering the use of LNG as marine fuel. All stakeholders are urged to support and join SGMF.”

In advocating measures to enhance safety in the use of LNG as fuel for shipping internationally, SGMF will represent the interests of its members at the International Maritime organisation (IMo) once its NGo status is formally recognised by that body. It will consult with IMo, government agencies and other non-governmental organisations in exercising this principal role.

LNG’s use as a marine fuel is progressingto the project implementation stage


Environment


complying with the EEDI requirements set out in regulation 21.5 of MArPoL Annex VI, have sufficient installed propulsion power to maintain the manoeuvrability in adverse conditions.

on emissions, the committee agreed to proposed draft amendments to MArPoL Annex VI regulation 13 on Nitrogen oxides (Nox), to amend the date for the implementation of “Tier III” standards within emission control areas (ECAs) to 1 January 2021, from the current effective date of 1 January 2016. The draft amendments will be circulated for consideration at MEPC 66 in 2014, with a view to adoption.

Significantly, it also adopted amendments to update resolution MEPC.215(63) Guidelines for calculation of reference lines for use with the Energy Efficiency Design Index (EEDI), including the addition of ro-ro cargo ships (vehicle carrier), ro-ro cargo ships and ro-ro passenger ships, and LNG Carriers.

International ferry trade association Interferry, which had taken part in the MEPC debate, described adopting sector-specific EEDI as a “victory for common sense”.

The Interferry-backed modification that will take effect from 2016 as an alternative to the “one-size-fits-all” standard EEDI formula in force since January this year for tankers, bulk carriers and container ships.

The standard formula was agreed at MEPC 62 in 2011 but short-sea operators objected that it did not address the sector’s specialised power requirements and widely varying ship types. They were granted a two-year extension to develop fairer solutions after arguing that the standard version focused on reducing design speed rather than optimising vessel design – an approach that Interferry says would have strangled the ability to replace ships in the host of markets that compete with road transport.

Johan roos, Interferry’s executive director of EU and IMo affairs said: “It is highly positive that a relatively small sector of the global shipping industry has been able to come together and provide the detailed technical expertise needed to demonstrate a feasible way forward. we would like to acknowledge that several flag states, which also include Belgium and Finland, have gone out of their way to develop a sustainable solution.”

he added: “Interferry never challenged the objective of the proposed regulation – not least because greater fuel efficiency is at the top of every ferry company’s agenda – but it was vital to recognise that deep sea and short sea shipping are very different industries.”

Nevertheless, roos stressed, the new EEDI would add a layer of complexity in the ship design process – fuel efficiency will be required to improve by 5% over existing designs from 2016, by at least 20% from 2020 and by a minimum of 30% from 2030.

“Future ro-ro and ro-pax designs will have to be extremely innovative and advanced to meet these strict reduction requirements,” he concluded, “but the MEPC 65 outcome is the best way to further improve the design and energy efficiency of new ferries while allowing them to remain competitive.”

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Interview

New man at the helmWorld Bunkering's editor David Hughes caught up with Peter Hall recently, to ask IBIA’s new chief executive what opportunities and challenges lie ahead for it

I met up with Peter at the Naval Club in London just a few weeks after he had taken over his new post with the IBIA. Almost immediately after taking up the job he had flown off to

Singapore for a round of meetings and to acquaint himself with IBIA’s operation in the world's biggest bunker port.

Peter is no stranger to bunker ports, having been chief executive and harbour master of the Gibraltar Port Authority from 2008 until last year.

Following a successful career in the Merchant Navy Peter came ashore, initially as operations manager for a towage and salvage company and then took up various roles in port management.

In 1994, Peter joined the Bristol Port Company, initially as Quality and Safety Manager with a focus on oil and gas terminal operations. his role was quickly expanded to include overall terminal management. As the port, grew he became involved in oil and gas terminal development and safety of all marine operations. he rose to the position of being the harbour master responsible for planning safety and support.

During this time he augmented his practical experience by studying with the open University and the open University Business School, culminating in the MBA-Competent Manager programme. he was a member of Uk Port Policy groups and wrote sections

of the Port Marine Safety code guide to good practice. he was also guest lecturer at the Uk’s fire training college, delivering a marine perspective on port emergencies and pollution.

he is a member of the Nautical Institute and a younger brother of Trinity house and also, in his “spare time”, the marine director of the Vine Trust – an enabling charity that connects people to change lives through its hospital ships.

we met at the Naval Club, rather than at IBIA’s Southampton office, because Peter had returned from his Asian trip to jump straight into the regulatory process that now has such impact on the industry. he had just dashed up from the International Maritime organization (IMo) where the Maritime Safety Committee was in session.

So what had attracted Peter to the IBIA chief executive post?

“well,” he replied, “it offered a change from running a port, but also presented the opportunity to build upon a lot of my recent experience, gained from the past few years in charge of a major bunkering port.”

he explained: “Previously to running Gibraltar port, I was involved in port development and management at The Bristol Port Company it was there that I appreciated the need to look for new ways of doing things, innovation and adopting solutions from other

industries. The cutting-edge challenge of pioneering alternative solutions and being ready to capitalise on the changing scene, to me is an exciting one.

“I believe marine fuel supply is at such a point and is about to undergo a quantum step change, akin to when oil replaced coal 100 years or so ago. This is an exciting yet challenging prospect that will affect the marine industry for years to come and I want to play a part in shaping the future on this.

“Also from a personal perspective with part of my family resident overseas, it offers the opportunity to see them more often and I enjoy travelling and meeting people from different cultures and countries – also something the IBIA role offers.”

I asked Peter what were the main things he had taken away from his time in charge at Gibraltar.

“Perhaps the most important lesson I learnt was that the quality of operation is paramount,” he said. he explained that by “quality operation” he means one built on regulation that is derived from a process whereby all the operators have been involved in its development. he added: “It is important that everyone knows what the standard is and its overall purpose, they can then sign up to something they have been part of, rather than being imposed upon them. Then there is the need for training to equip those involved to



Interviewbe competent. The last component, to make things work is inspection! I had a great team of people led by a bunkering superintendent – who had been brought up working for a world supplier. You might have the best system in the world but without the expertise it won't work.

“I also realised that industry and the environment have to live in partnership with each other. In Gibraltar, where you have, on one hand, an economy that has such a focus upon servicing the shipping industry through its fuel supply business, and on the other a population that has almost one toe in the water, everything you do has an impact. You have to work together to develop solutions.

“As a result, communication is key – you always have to find time to explain, advertising your actions in advance, ensuring the issues are fully explained in order that reasons for doing things are fully understood. It is also important to explain why you can’t do something.”

however, Peter said that the lasting lesson he took away from Gibraltar is not to be overwhelmed by the situation. “The imagery of David and Goliath comes to mind in that the size of the issue confronting you can be brought down by strategically aiming,” he said. “In the case of Gibraltar there are many examples of this, the economy per capita is the envy of many countries in the world a result of focusing upon key strategies and seeing them through. It punches well above their weight in many arenas and is not daunted by the prospects it faces. I believe IBIA can continue to adopt this approach.”

what are Peter's first impressions of IBIA, I asked.

“Since taking up the role in April I have been to Europe, Singapore and Turkey where IBIA has supported a number of conferences, consequently I have met a number of the IBIA family members. So far the impression I have is one of a close knit family that works hard and enjoys time together, talking through the challenges that face each location.

“These individual locations reveal the breadth and depth of IBIA, it is like a family at different stages of growth with each facing different challenges, the ability to help each other is enormous and the experience that exists within the family is amazing.

The key challenge we face is to enable that experience to be collated and made accessible to those developing.”

From his experience in the past few weeks, what does he think ought to be IBIA's priorities?

Peter said that, from listening to the membership, the key areas for focus and development are: • The provision of the latest

information (technical support) in a timely and user friendly manner;

• Influencing future legislation, by having a strong voice in the IMo;

• Training and dissemination of best practice;

• Providing networking opportunities (such as the conventions, annual dinners and regional forums) providing a time to learn, meet and have fun together; and

• Circulating information within IBIA – membership contacts, publications and social media in all its forms.

I mention that now is a time of change in the bunker industry and ask if IBIA needs to do more to respond to regulatory and technical developments.

“without a doubt IBIA needs to be influencing the debates that are taking place on the many issues that impact marine fuels,” he said.

“we can achieve a great deal with strategic partnerships, diplomacy and keeping our membership involved, with 600 mem-bers and organisations empowering them in the debates we can achieve a significant amount.”

when I asked how important is it to get the views of members on the issues facing IBIA, Peter was very clear.

“It is vital,” he said. “we have 600 organisations interfacing with all aspects of the marine industry, by hearing the views collating them and distilling this communication into focused debates we can have a stronger voice and help shape the future.”

Finally, I wondered whether IBIA will be significantly different in five years’ time and, if so, in what ways.

Peter gave this some thought and replied: “Five years is an interesting time span, if you take the evolution of the mobile phone as an example: compare a new phone to a five-year old model.

“on the face of it looks very similar but, then when you look more closely the difference is startling. The principles are still there – it’s a means of communication, but that level of the communication has changed radically. It is faster, handles much larger volumes of data of different types, enables greater access, and can be interfaced with other applications.

“My hope is that IBIA will be differ-ent in five years’ time in a similar and corresponding way to the mobile phone – in that it will still be an organisation that is an advocate for the marine fuels industry, but its ability to communicate will have radically changed. It will be able to deliver more timely, accurate

information, have a strong interface with like-minded organisa-

tions, build on and uti-lise the experience

it has available working across a worldwide network and e x p a n d i n g that network

into emerging regions.”

marine fuels,” he said.“we can achieve a great deal with

strategic partnerships, diplomacy and keeping our membership involved, with 600 mem-bers and organisations empowering them in the debates we can achieve a significant amount.”

when I asked how important is it to get the views of members on the issues facing IBIA, Peter was very clear.

will have radically changed. It will be able to deliver more timely, accurate

information, have a strong interface with like-minded organisa-

tions, build on and uti-lise the experience

it has available working across a worldwide network and e x p a n d i n g that network

into emerging regions.”


Peter HallIBIA's new chief executive


Independents

Tough timesSandra Speares surveys the independents scene and sees how suppliers are adapting to difficult market conditions

Independent bunker suppliers have been under pressure in the current environment, particularly as finances are tight which can mean they end up acting as bankers to

those further down the supply chain.So has the role of the independent

bunker supplier changed in recent years? According to Søren Christian Meyer, global sales director at ow Bunker, “The role of the bunker supplier and our responsibility to the industry is changing significantly and heralds a new era for fuel suppliers.

“our customers are facing seismic change in the form of environmental regulations, continued global economic challenges, increasing fuel costs, and a general lack of capital and liquidity. As a fuel supplier, we have a detailed understanding of the market, and it is up to us to work closely, in partnership with our customers, to develop fuel procurement strategies that are as cost effective as possible, in line with their trading routes and ensure compliance.

“At a time when access to credit is increasingly tight for owners and operators, bunker suppliers with the financial strength, global infrastructure and the resources to do so are extending credit lines and stepping into the breach as financiers of the shipping industry. It is another example of suppliers taking on more responsibility, but also greater risk.”

According to Meyer credit needs to be given in a controlled and balanced manner, and in a way that doesn’t take advantage of the situation, but rather enables customers to operate in the most financially sound manner. “At ow Bunker we believe that, where financially viable and where there is transparency and trust within a relationship with a shipowner and operator, we must take a structured approach to managing and helping with the credit issue.

“however, in providing this credit facility, customers must recognise that the current economic hardships affect

all of the industry, including bunkering companies. It is only right therefore, that a fair and appropriate margin is taken.”

take advantage of the situation, but rather enables customers to operate in the most financially sound manner. “At ow Bunker we believe that, where financially viable and where there is transparency and trust within a relationship with a shipowner and operator, we must take a structured approach to managing and helping with the credit issue.

“however, in providing this credit facility, customers must recognise that the current economic hardships affect

Søren Christian Meyer, OW bunker



Independents


Given the current market conditions and in light of the breadth of challenges that owners and operators are facing, it is of fundamental importance that bunker suppliers look at every opportunity to drive down costs and maximise efficiencies for their customers, he says. “Importantly, by creating end-to-end, value-driven solutions, which utilise the latest technologies and guarantee only the highest-quality products and services, we can create lasting relationships with customers.”

So how does ow Bunker as an independent help customers protect their bottom line against high fuel prices?

“From the independent fuel supplier’s perspective, it is the ability to take more control of the fuel supply chain and reduce the cost of ownership for shipowners and operators where a real difference can be made.

“In line with this, success is based on providing a level of service that is defined by quality and value from the very first engagement through to final delivery. This is how we can best protect our customers from risk, and to ensure that they can optimise their operations and profits despite higher fuel costs.

“This means having a fundamental understanding of their businesses, their trading routes and, therefore, fuel requirements; implementing a risk management strategy that uses a variety of hedging instruments to lock in costs and profitability; and ensuring the fastest possible turnaround when delivering products, as well as making sure that they receive the amount that they have ordered.”

The modern-day independent suppler, must invest in the most efficient supply tankers as well as new technologies and innovations to pass on efficiencies to customers, saving them both time and money.

ow Bunker has been pioneering the use of Coriolis flow meters for over seven years now, which ensures the right volume of fuel oil is delivered to customers, Meyer said: “This is based on the fact that product quantity and claimed short deliveries have been an issue of contention in the industry for many years. Neither suppliers or their customers can afford to be buying or

selling incorrect quantities of fuel, and nor does either party want to risk a dispute. So investing in the technology to provide accuracy in supply is a wise investment for suppliers. Importantly it serves to build further trust and transparency with customers, which is the foundation of any quality relationship.”

with the North American Emission Control Area (ECA) now in effect, and the 2015 European ECA on the horizon, how can bunker suppliers ensure their customers’ are compliant with emissions regulations?

“It is our view that bunker suppliers must play a critical role in helping their customers to define their compliance solution of choice,” said Meyer. “we must prepare them in terms of understanding the amount of product that they will need, based on their trading routes, and developing the right procurement strategy that ensures both operational and cost efficiencies. It is also important to ensure that they understand the technical complexities when switching from heavy fuel oil to distillates, in order to avoid associated complications that can incur significant downtime or a breach of regulations if not handled correctly.

“Ultimately, there is no one-size-fits-all solution for regulatory compliance, so it is vital that owners and operators work closely with their supplier to find the solution that is right for them. And frankly, these are conversations that need to be happening now.”

one of the regulatory challenges that has been aired in the industry is ensuring the quality of the final product is within compliancy standards, ow said. Significant strides have been made in the past few years to implement regulations across the bunker industry, which have successfully created greater transparency and assurance when it comes to product quality. however, physical suppliers must shoulder the responsibility for setting new benchmarks for excellence that ensure products meet the required standards. This means pre-testing products, taking greater control over the supply chain and taking every opportunity to drive down global claims.

black Sea bunkering

Cyprus-based bunker supplier Bunkernet concentrates its activities in the Mediterranean and the Black Sea although it also incorporating an international profile. According to general manager Nicholas Argyrou, speaking at Bunkernet’s recent conference in Cyprus, timed to coincide with April’s East Med Marine Exhibition in Limassol, Cyprus, the company is financially solid and secure and is fully backed up as far as professional indemnity is concerned.

Argyrou’s presentation to the seminar concentrated on the Black Sea ports where bunker prices are substantially lower than those offered elsewhere in Europe. Many questions are being asked about the Black Sea region, he told delegates, notably where bunkering was allowed, product quantity and quality issues, price levels, payment terms, and financing. other issues concern weather and customs delays, he said.

Ports in the region include Novorossiysk, russia, which is due to expand substantially resulting in an increase in the volume of bunker sold, Argyrou told the seminar. There are current six major bunker suppliers in the port although there are some smaller ones. Also, he said low sulphur fuel in the port is “very tight” and this applies to other ports in the Black Sea area. “Price ranges for bunkers are extremely competitive,” he said, “at around $420 per tonne, with payment terms ranging from five to 30 days.” Product quality is excellent, he says and Bunkernet has never experienced a quality issue.

uS entrant

V-Marine Fuels, announced earlier this year that it was entering the US bunker market, and physical operations in the Port of houston and the nearby ports of Texas City, Galveston including Bolivar roads started on March 1.

V-Marine Fuels will source product from its parent company, Vitol, offering a complete line of ISo 8217-2010 marine fuels. It will initially operate one barge, capable of delivering low and high sulphur fuels and will have additional barges at its disposal to meet its customer’s demands.Søren Christian Meyer, OW bunker


Independents


As a result of Vitol’s recent acquisition of 50% of the Cockett Group, the trading and physical supply activities and the company were separated with all physical activities coming under the aegis of V-Marine Fuels.

The existing physical activities, Associated Bunkeroil Contractors and Cockett Marine oil Supplies were be absorbed into the new division.

V-Marine Fuels has announced plans to develop and strengthen its positions in the rotterdam and the Uk/English Channel markets and is set to launch a new physical supply operation in houston.

Under the terms of the agreement, Vitol’s physical bunker supply operations in the ports of Singapore, Tanjung Pelepas (Johor, Malaysia), Fujairah (UAE) and khor Fakkan (UAE), all German ports with hubs in hamburg, Bremerhaven and Canaveral, will be added to V-Marine Fuel’s existing physical supply locations in the Thames, the English Channel and northern France, Amsterdam,

rotterdam, Antwerp and Zeebrugge, and houston (USA).

Meanwhile, Vitol and rosneft have agreed terms regarding cooperation in LNG. Following the new agreement, Vitol will become a large strategic buyer of LNG from rosneft’s planned facility in the russian Far East. The supplies of LNG, which are expected to start in 2019, are targeted at the Asia-Pacific market.

Igor Sechin, president of rosneft, said: “Through the agreement with Vitol, the largest independent physical trader of energy resources, rosneft secures guaranteed sales of significant LNG volumes to be produced by the first train of the LNG facility, thus enabling us to proceed to the practical phase of the project’s implementation.”

Ian Taylor, chief executive of the Vitol Group added: “we are privileged to have another significant opportunity of working with rosneft, as it continues to build its position as a global leader in oil and gas. This landmark development will diversify and strengthen our

supplies of LNG and enable us to expand the possibilities of serving our clients in Asia-Pacific region.”

chemoil aims for growth

Singapore-listed international bunker supplier Chemoil report a loss on continuing operations of US$24.7m in the year to 31 December 2012, but a profit of $153.2m overall, attributable mainly to the sale of its terminal assets in Singapore late last year.

The company is upbeat about prospects and has an investment programme in hand. Commenting on the results, Chemoil’s chief executive Tom reilly, said: “Last year we took a highly strategic decision to sell helios Terminal at a significant gain. Through the sale, we were able to realize its market value, which had increased substantially since we completed its construction in 2008. The success of the sale has boosted our profitability for FY2012, and at the same time provided us with the resources to finance our growth investments.”

Aegean to supply at Algeciras

Greece-based Aegean Marine Petroleum Network Inc has announced it is expanding its fuel supply network by establishing operations in Algeciras.

The company’s president, E Nikolas Tavlarios commented, “This is an exciting opportunity for Aegean, as we are strategically expanding our presence in the western Mediterranean by entering this rapidly growing port. our presence in the Port of Algeciras Bay will further enhance our ability to serve our customers in this region, while also allowing Aegean to utilize our built-in fleet capacity and storage capabilities, which should drive both profit margins and volumes.”

he continued: “over several years, we have continued to execute our strategy of opportunistically entering and exiting markets as appropriate to strengthen our competitive positioning, and this development is perfectly aligned with this operating philosophy. we are taking decisive actions to diversify our geographic presence, expand our revenue base and increase our earnings potential. we are continuing to deliver on the promise of the Aegean model and this event is yet another milestone illustrating our dynamic progress.”

Aegean Petroleum’s presence in Algeciras port allows it to offer bunkering in the Western Med


Fuel quality


In today’s challenging economic climate, ship operators are under pressure to strike a healthy balance between the drive to negotiate low fuel costs and the need to ensure

that the fuel they buy is safe to use and complies with maritime regulations.

If a ship is bunkered with blended or commingled product that is below specification, it can run into significant operational problems: the fuel may be unstable; have poor ignition or combustibility efficiency; damage the ship’s engine or make the ship difficult to handle. Furthermore, a ship carrying below-specification fuel could be contravening SoLAS (the International Convention of Safety of Life at Sea) or MArPoL (the International Convention for the Prevention of Pollution from Ships) regulations.

There are a number of properties that vary between the different grades of marine fuel – the main ones being viscosity (or density), flashpoint, FAME content, cetane index and sulphur levels. The challenge for fuel buyers is to understand how these properties can vary from bunker to bunker:

viscosity (or density)

Fuel with a high viscosity, or density, will generate more energy than the same volume of fuel with a low viscosity. The viscosity of marine gas oil (at 15°C) is generally within the range of 820-

875 kg/m3 – and most commonly it is between 850-870 kg/m3. however, 10ppm red diesel is usually less viscous, within the range of 820-840 kg/m3, and DMA gas oil can go up to 890 kg/m3. As viscosity decreases with an increase in temperature, any viscosity measurement is meaningless without a corresponding temperature reading.

Flashpoint

This is the lowest temperature at which a fuel can vaporise to form an ignitable mixture in air. The minimum flashpoint for marine gas oil is 60°C. An alternative grade fuel, such as 10ppm red diesel, which is often offered for marine use, might have a flashpoint of only 56°C. The statutory rules on flashpoint are set in SoLAS regulations and also in the ISo8217 DMA and BS2869:2010 gas oil specifications. Serious safety issues are raised when fuel does not comply with flashpoint regulations and the problem can result in the de-bunkering of a vessel.

FAmE (Fatty Acid methyl Ester) content

Marine gas oil should be FAME-free, although its FAME content can be within the slim range of 0-0.1%. other grades of fuel, such as 10ppm red diesel, can have a massively higher FAME content, of up to 7%. FAME – better known as biodiesel – is not allowed in marine gas oil because a number of engine maintenance and mechanical problems have been attributed to its use. Furthermore,

A question of qualityShip operators looking to reduce fuel costs must never compromise on quality, explains barry Newton, Managing Director of the Geos Group

Autumn 2013 31

combustibility efficiency; damage the ship’s engine or make the ship difficult to handle. Furthermore, a ship carrying below-specification fuel could be contravening SoLAS (the International Convention of Safety of Life at Sea) or MArPoL (the International Convention for the Prevention of

There are a number of properties that vary between the different grades of marine fuel – the main ones being viscosity (or density), flashpoint, FAME content, cetane index and sulphur levels. The challenge for fuel buyers is to understand how these properties

Fuel with a high viscosity, or density, will generate more energy than the same volume of fuel with a low viscosity. The viscosity of marine gas oil (at 15°C) is generally within the range of 820-

a fuel can vaporise to form an ignitable mixture in air. The minimum flashpoint for marine gas oil is 60°C. An alternative grade fuel, such as 10ppm red diesel, which is often offered for marine use, might have a flashpoint of only 56°C. The statutory rules on flashpoint are set in SoLAS regulations and also in the ISo8217 DMA and BS2869:2010 gas oil specifications. Serious safety issues are raised when fuel does not comply with flashpoint regulations and the problem can result in the de-bunkering of a vessel.

Barry Newton, Managing Director ofthe Geos Group and its trading divisionSea Bunkering Ltd. E-mail: [email protected]


Fuel quality


FAME has a lower energy potential, which affects performance and consumption levels. It also generates higher levels of nitrogen oxides.

cetane index

The cetane index, or number, indicates a fuel’s ignition quality – the higher the cetane index, the more easily the fuel will combust in an engine. The cetane index of marine gas oil BS2869:2010 is 45, whereas for other grades of marine fuel such as DMA gas oil, the cetane index is only 40.

Sulphur levels

An acceptable level of sulphur in marine gas oil is 0.1%. The amount of sulphur allowed in heavy marine fuel is set to drop from 1% to 0.1% in EU Sulphur Emission Control Areas (SECA) in 2015 – a move intended to reduce the amount of pollution generated by the shipping industry. In order to comply, shipping operators will need to switch to a low sulphur fuel, such as 1000ppm marine gas oil.

Marine gas oil suppliers and traders have a duty to bunker their customers’ ships with fuel that fully complies with regulatory standards, as outlined above. Sometimes, fuel buyers are offered the opportunity to substitute 1,000ppm marine gas oil with 10ppm red diesel that is said to be "within marine gas oil specification”. This may seem like a tempting offer, but it is a risky one.

Tests may have shown that the fuel was of the right specification at a certain point in time, but it would normally have been stored in a tank where other 10ppm red diesel is also stored and re-stocked by other suppliers. As a result, it may have been commingled

at some point with other 10ppm red diesel that was not within specification.

Shipping is a highly competitive industry and balancing the cost of fuel with quality is likely to remain one of the biggest challenges for ship operators in the years to come.

Are those samples on-spec?

Testing to sensure quality is more important than ever


Lubricants


Universal or specific?David Hughes reports on a clash of opinion in the lubes business

Two major manufacturers have been promoting very different approaches to lubrication in the face of environmental challenges.

French-based Total Lubmarine has been pushing its “single oil solution” while Uk-based Castrol argues that specific lubricants are needed to meet current conditions where slow steaming is commonplace.

Castrol outlined its approach in a statement last year. It said that its research and development, oEM recommendations, market trends, legislation and, “most importantly”, customer feedback have combined in developing its latest cylinder lubricant offer, based on the realities of slow steaming, fuel sulphur content and low feed-rates.

The company said its investigations showed that every vessel should use a cylinder lubricant based on its predominant operating conditions, and while 40 base number (BN) cylinder oil suits vessels predominantly operating in ECAs, cylinder oils of 70 BN and above are better suited to those vessels regularly slow steaming, to ensure piston ring packs and liners remain in excellent condition.

“The idea of a single, mid-range cylinder oil solution for all vessels as sulphur limits are reduced may be seductive, but our field evaluation shows this does not offer the best margin of safety,” said Paul harrold, Castrol Technology Manager Marine & Energy Lubricants.

he added: “Slow steaming has complicated traditional assumptions

concerning engine performance because marine engines are not designed to operate below 85% power for prolonged periods. At lower loads, the cylinder oil’s feed rate is reduced, reducing the available BN to neutralise acids and reducing the oil film thickness. This can mean lubricants degrade, increasing the potential for acidic corrosion and increased wear rates. Lower engine operating temperatures caused by slow steaming further increase the risk of cold corrosion.”

For owners, Castrol warned, this could mean unscheduled and costly maintenance. Severe cases might require liner and ring reconditioning or replacement. Castrol cautioned: “replacing liners on a 14-cylinder engine could cost over US$1m. “higher BN lubricants provide greater neutralisation and hence better corrosion protection across the fuel sulphur range while slow steaming.”

however Castrol does say that there is no need to change the cylinder lubricant if operating in an ECA for around 10 to 14 days. It said its experience has shown that using a high BN product for even longer is often acceptable when operating in an ECA, especially when slow steaming. Fears that high BN cylinder oils may lead to deposits and bore polishing may be unfounded, the company added. “we are not suggesting that a ship has to carry a range of products,” said harrold. “In fact, the majority will carry only one, depending on their engine and voyage operating pattern. we have a 40 BN for prolonged operations in ECA, while our existing 70 BN cylinder oil has proven

itself in intermittent ECA operation. For the most severe applications of optimised feed rates and slow steaming we would consider recommending 80 BN cylinder oil for many customers.

he emphasised: “our position is that only by having a comprehensive range of cylinder lubricants to choose from can vessel operators maximise machinery performance and provide the highest margin of safety.”

By contrast, Total Lubmarine launched its Talusia Universal product in 2008 following a rigorous trial period. The company has now accumulated nearly five years of experiential data on the product with over 30 million hours of operation. The product is now used in over 3,800 ships in all types of operating conditions, including slow steaming and super-slow steaming. Total says that, since the launch of the product, 77% of Total Lubmarine’s two-stroke customers a number growing through transition of both existing and new customers now use Talusia Universal.

recently, Total Lubmarine commissioned an independent poll of shipowners and managers using single oils. It has found that nine out of 10 respondents believe that the main benefits are the assurance of safety in operations, direct savings in lubricant handling and appreciable simplicity for crew operations.

Commenting on the results, Serge Dal Farra, Marketing Manager, Total Lubmarine said: “we understand that amidst ever more stringent environmental standards and increasing fuel costs, operating successfully in today’s marine


Lubricants


industry and preparing for the challenges of tomorrow demands that vessels must deliver optimum performance and cost effectiveness. with four-fifths of our customer base using a single oil solution, the results of our survey support our strong conviction that ’single solution’ universal lubricants represent the future of marine cylinder lubrication.”

The survey also found a 90% increase in the use of bio-lubricants since 2009, with 69% definitely or likely to buy eco-friendly products over the coming months. The main reasons for this were largely attributed to regulation (57%) and green company policy (55%). Total said that a key regulatory driver was probably the imminent changes to the Vessel General Permit (VGP) issued by the US Environmental Protection Agency (EPA) and entering into force in December 2013. Ship owners worldwide will now have to use lubricants that are compliant with this new legislation if they want to transit through US waters.

Meanwhile Castrol has referred to engine manufacturers’ research to back up its claim that a range of lubricants is needed. This has led to responses from Total Lubmarine, though each company

has avoided mentioning the other’s name in their statements.

For example, Castrol said in December that it welcomed new recommendations to shipowners from MAN Diesel & Turbo, the world’s largest supplier of two stroke marine engines, supporting Castrol’s long-standing advice that misapplication of mid-range Base Number (BN) cylinder oils can cause corrosion. Castrol said that the engine manufacturer recently issued service letters that recommended “cylinder lube oil with 70BN or higher” for latest generation super long stroke engines using higher sulphur fuel (above 1.5-2%). MAN was quoted as saying it “cannot recommend” cylinder oils “with a BN level between 50 and 60” for these engines.

In reply, Total Lubmarine issued a statement expressing concern over “biased interpretation of MAN's recently issued customer service letters”.

Total Lubmarine said: “These detailed technical documents contain recommendations for both existing engines, which represent nearly the entire marketplace, as well as the engines of tomorrow. It clearly states that single oil solutions are approved for the vast

majority of existing engines 99% of current engines but not yet for the 1% of engines represented by the Mark 9 and future G series.”

The French company’s Technical Director, Jean-Philippe roman, said: ”Total Lubmarine respects the views of those that subscribe to conventional thinking; that old generation cylinder oil should have a BN that matches the sulphur content of the fuel. however, several of the new single oil solution type products that have been launched recently demonstrate that conventional wisdom on cylinder oils is moving away from old generation products and towards a high-performance future.

“Five years of hard, corroborated evidence has shown that the universal product gives excellent results under all operating conditions. Furthermore, the single oil solution offers significant savings as only one product is required.” roman concludes, “we believe it is misleading to categorise lubricants solely according to their BN. old generation mid range formulations do not equate to or match the performance of the new generation universal or single solutions.”

Profitable voyages depend upon bunker fuel quality.Staying in business means staying on schedule. Poor-quality bunker fuel represents one of the biggest threats to keeping your schedule and profitability intact.

Intertek ShipCare provides fast, accurate testing for bunker fuel quality, helping avoid costly repairs and downtime.

Profitable voyages depend upon bunker fuel quality.

USA: +1 713 407 3695ASIA: +65 6322 8215UK: +44 1325 390180E-MAIL: [email protected]: www.intertek.com/marine


Testing

Testing times for fuel analysismichael Green, Technical Manager at Intertek Lintec ShipCare Services, looks at how ISo 8217 has changed over the years

Any individual involved in the buying and selling of marine fuel knows only too well that the product that changes hands will be

examined to ensure it is fit for purpose, and that the overall quality of the product supplied will be governed by the latest version of the ISo 8217 Marine Fuel Standard.

ISo 8217 as we know it today was introduced in 1987. however, the standard we use as the benchmark for fuel quality in 2013 is very different from the one that was originally published. It has grown, developed and evolved significantly over the years into the standard we have today.

Some themes have remained constant, however. Those parameters that have a key bearing on the operational requirements of the vessel, such as density, viscosity, sulphur and water content, have been the cornerstone of the standard since its inception. But as the world has changed, so too have the test requirements of ISo 8217.

The evolution of the standard is testament to evolution in the shipping industry and the problems noted by owners and operators in relation to the range of fuel products available.

In any industry, change and development is inevitable, but in this

particular case, it is often asked why the ISo 8217 standard has been forced to change as much as it has?

one simple explanation lies with the change in requirements for specific types of fuel across the world.

Since the introduction of Marpol Annex VI in 2005, a number of global, regional and local changes have been implemented with regard to acceptable levels of sulphur in fuels and, as such, the face of a “normal” residual fuel has changed considerably over the years.

A fuel considered “normal” in one particular area may differ considerably from another “normal” fuel in another part of the world. The implementation of reduced global sulphur caps and Emission Control Areas (ECAs) have been the main driving forces behind the variation in fuels on offer to owners and operators.

Prior to the implementation of the North American ECA, demand for low-sulphur residual fuel was limited to western Europe, in order to meet the requirements for the North Sea and Baltic ECAs. This particular legislative step created another “new fuel” type, and with this came new problems.

one common factor that has followed the continued legislative change and which has driven the need for tighter

restrictions in relation to testing and applicable techniques, has been the increase in issues noted in relation to poor-quality fuel.

If we examine the quality data obtained by the routine analysis of samples supplied by owners / operators that subscribe to the Intertek Lintec ShipCare analysis program, we can see that the supply of poor-quality fuel is on the rise. Looking at figures taken from the middle of 2010 through to the end of 2012, it is clear that there

particular area may differ considerably from another “normal” fuel in another part of the world. The implementation of reduced global sulphur caps and Emission Control Areas (ECAs) have been the main driving forces behind the variation in fuels on offer to owners and operators.

Prior to the implementation of the North American ECA, demand for low-sulphur residual fuel was limited to western Europe, in order to meet the requirements for the North Sea and Baltic ECAs. This particular legislative step created another “new fuel” type, and with this came new problems.

one common factor that has followed the continued legislative change and which has driven the need for tighter

Michael Green of Intertek Lintec ShipCare Services



Testing


has been a significant increase in the number of off-spec fuels (a rise of almost 4% in two years).

however, these figures do not tell the whole story because they only take into account fuels that have been tested in accordance with the ISo 8217 fuel standard and have failed to meet one or more of the specified limits for that particular grade of fuel. Some would suggest that the figures provide a darker outlook on fuel quality as a whole, as many of these fuels that fail to meet the requirements are still suitable for use.

That being said, we are also seeing a greater number of fuels being supplied that do meet the requirements laid down by the 8217 standard, but which still cause operational difficulties while in use. It is as a result of these sorts of issues that the ISo standard is constantly reviewed in relation to current fuel quality, operational issues that have been experienced, and problems that are anticipated based on future legislative change.

The revision of the 8217 standard and subsequent release of ISo 8217:2010 was a significant step forward in the regulation of fuel quality as it added a number of additional test parameters that had not been examined in previous versions.

Changes in the test requirements for distillate fuels took a sizeable step forward, in particular. The amendments to the analysis scheme took into account the additional requirements for hydrogen

sulphide, lubricity and oxidation stability – the latter two being most significant in relation to expectations for the forthcoming step down in ECA limits (from 1.00% to 0.10%).

The general consensus within the shipping community at the moment is that the 2015 change will be accommodated by switching to ultra-low-sulphur distillate fuels within ECAs. once this shift occurs, the lubricity and oxidation stability tests will become all the more important in relation to operational concerns.

The massive increase in demand for suitable fuel will alter the supply chain such that more distillate fuels are subjected to hydro-desulphurisation, which will impact on the fuel’s natural lubricating properties.

In addition, the distribution of stocks of suitable fuel will also impact on the supply chain so that certain areas will not be in a position to provide the appropriate marine grade. Cases such as these have led to speculation surrounding road-going diesel and biograde fuels being introduced into the marine pool.

In light of these issues – and looking towards future alterations – it is vital to examine how to further adapt testing requirements to ensure that future fuels are still of an appropriate quality. It is also necessary to consider what the future holds in relation to fuel testing.

It is inevitable that the move towards distillate in 2015 will significantly alter analysis requirements, with testing

agencies seeing a huge shift in their submission patterns.

Based on current submission rates, the split between residual and distillate samples being tested stands at around 80%/20% respectively. The expected legislative change in 2015 will see these figures alter massively almost overnight, but the extent to which the shift will extend is still open to debate. In real terms, it is highly likely that, once the industry has had time to acclimatise to the change, submission rates of residual and distillate fuels will settle at somewhere around the 60%/40% mark.

Such a shift in analysis patterns can’t help but flag up a wider range of issues in relation to distillate fuels that may not have been widely experienced previously. As already suggested, operational difficulties in relation to the reduced natural lubricating properties of fuel are almost certain to increase. Currently, figures taken from a joint study, conducted in co-operation with Innospec, show that less than 5% of distillate fuels fail the lubricity requirements laid down in the ISo 8217 standard.

That being the case, we have yet to see a confirmed incident on board a vessel where problems or damage have been categorically attributed to the reduced lubricity of the fuel. however, after 2015 it is fair to suggest that this will no longer be the case.

Although the changes in 2015 will prove to be significant, further action will be required to look beyond this and anticipate what lies ahead. The fact that the final legislative requirements, relating to global emissions have yet to be given a definitive time scale does not do a great deal to assist in the progression of testing requirements.

what is certain, however, is the fact that no matter what occurs as far as sulphur legislation is concerned, further progression will no doubt see yet more change in overall fuel quality and, as a result, further evolution of ISo 8217 test requirements.

There has been a significant increase in the number of off-spec fuels


Risk m

ahagement


Good information is keyAs Sandra Speares explains, transparency has become a vital ingredient in successful relationships in the bunker business

Bunker suppliers and traders face challenging time in terms of limiting their risk, not least of default by the charterer on bunker payments.

Bunker sellers do on occasions take legal proceedings against charterers for non-payment of bunkers, but this is a last resort and puts future business relationships at risk.

Financial transparency, which has not necessarily been a feature of shipping as a whole, in the past is now proving of increasing importance in business relationships particularly to guard against counterparty risk. Those involved in the supply chain need to know that they can trust those they are dealing with to deliver, or pay on time, and if they can’t, to be up front about saying so.

Eliminating risk altogether is not possible, and it is necessary to live with a certain level of it, but the question is how to manage that risk within the operation you are trying to perform – the operation you are trying to make money out of.

That was the question posed by Andrew webster, partner in the energy and marine division of JLT Specialty at a recent London Shipping Law Centre seminar on risk management for shipping, ports and terminals.

risk, he said, had to be considered in the context of a commercial operation: “when we are talking about risk, we are also talking about keeping promises,” webster told delegates.

Even the best and promptest payers are not averse to deviating from a swift payment rule – 30 days being the time frame specified – when the going gets tough. This sometimes leaves those companies that are not facing a liquidity crisis, or at least less than others, in the position of acting as bankers for those that were, sometimes for periods of many months.

Increasingly bunker traders and suppliers are having to fund clients further down the supply chain. In the same way while bunker suppliers are giving credit to their clients, the credit they are giving is without any financial security from their clients towards them.

There has been a good deal of discussion over the last year or so about shortening credit terms, with some reports of this and individuals adopting very different strategies for dealing with the issue. however essentially the risks, should one become aggressive in pursuing money owed, include losing repeat business.

In the current climate, it seems essential to be able to ask business partners for financial details rather than settling for a metaphorical or actual handshake.

Due diligence is king even if it wasn’t in the past and everyone in the supply chain needs to be able to provide financial details that perhaps in the past they would have deemed unnecessary.

As traditional shipping banks have been pulling out of the market, or severely restricting their lending practices, owners and operators, not to mention those supplying them with bunkers face unprecedented challenges that will only become tougher in the future, even when the market begins to improve.

At a conference organised by Bunkernet in Limassol in April, robin Meech of robin Meech Marine and Energy Consulting outlined another of the challenges facing the bunker industry, and another area of potential risk, going forward; with the advent of emission control areas and low sulphur regulation, will there will been enough fuel “to meet the regulations as we expect them to be”?

The shipping and oil industries want a cleaner environment because it is good business practice, he told delegates, but they want regulations in place that are practical and some of those in place are not, Meech said, citing the global sulphur cap as an example which is not cost effective.

In addition, he said that good operators would be disadvantaged when the new rules come in for low sulphur fuels in 2015, and companies that don’t comply will have a tremendous advantage. “That will have to be stamped out.”

while there is much talk of using LNG as bunkers, rules relating to this have yet to come out, Meech said. he did not


Risk m

ahagement


advise bunker operators to go into LNG supply, at least not in the near future, but sees the potential for LNG to be used as bunkers for smaller short-haul ships.

one of the big issues for bunkering LNG in ports is whether it is possible when moving passengers at the same time. Deep sea ships running on LNG would probably bunker more frequently than with conventional fuels because of LNG's low energy density. This means additional time in port, which he estimated would result in 10 days off hire in a year, with a consequent impact on earning power.

he estimated that by 2030, 60m tonnes or 15 to 20% of bunkers will be fuel oil, and there would be a huge use of scrubbers with investments of the order of $16bn. Meech believed that the global cap would not be in place before 2025.

he maintained there would be enough diesel to meet the 2015 deadline but the transition might be lumpy and warned bunker buyers present to ensure they had secured supplies ahead of time. If the global cap comes in 2020, the need for diesel would increase dramatically, and he did not believe refineries could handle it.

There is also a lack of incentive on the part of refineries to invest in diesel for the marine market. If the global cap comes in during 2020 there would be a deficit of gasoil, but demand could be met if the cap was delayed by five years, he believed.

There are still some uncertainties about the regulatory aspects. however one certainty was that the regulations would not become less stringent, Meech told delegates. There was sufficient

distillate to meet 2015 requirements, and he believed that further emission control areas may be established.

he expected price decreases in the next five years because of the increased availability of crude oil worldwide. There will be price premiums however, with prices rising steeply towards the end of next year and by 2025 the differential between high sulphur fuel oil and 0.5% will be around $300-350 per tonne. Scrubbers will help to reduce those prices, Meech said, adding he did not believe LNG would be viable for long-haul ships for the next 20 years.

The dramatic rise in bunker prices in recent years has led some unscrupulous suppliers to hold some back, said Simon rapley, associate for loss prevention at west of England Insurance Services explained when describing the cappuccino effect. Traditional flow meters cannot be relied upon to provide an accurate representation of the volume supplied to the vessel, and the new mass flow meter technology is expensive.

There are certain signs that compressed air has been added to the fuel, rapley said including gurgling in the manifold, the supply hose kicking or jerking and abnormal noises from vents. The receiving vessel can also take samples at the manifold during the bunkering operation and if they are frothing or foaming “there may be a problem”, he said.

The crew could also ask the supply vessel to tell them when they are stripping tanks, so they can monitor

whether this is excessive. other measures include checking the density of the fuel received and if this is lower than it says on the bunker delivery note, it may be an indication that additional air is present. “At any stage of the operation if the receiving vessel is in any doubt that something is amiss they should stop the operation and carry out an investigation.”

If a significant discrepancy is found, the bunker receipt should not be signed as it stands and amended to reflect the receiving vessel’s own figures. The master can be under commercial pressure to leave the port quickly, and rapley said it was important in cases where the master had concerns about the supply of bunkers that he was supported by the owner or operator.

It ought also to be borne in mind that if the vessel accepts the supplier’s figures and they turn out to be higher the bunkers received, at the end of the charter it will look as though the vessel has used more fuel and has therefore under-performed. Good procedures and accurate records are very important if a bunker dispute comes to court, rapley stressed.

Criticisms of Singapore bunkering have led to a number of measures being introduced to combat the problem, including publishing lists of sales and performance by bunker suppliers in the port. They also identify those suppliers who use mass flow meter technology on their vessels. The first vessel to use a mass flow meter in the port was ExxonMobil last year.

Bunkernet’s Nicholas Argyrou makes a point at thecompany’s seminar in Limassol


Middle East


Expansion continueswhile political tensions continue to create uncertainty the Middle East’s bunker industry continues to grow, as David Hughes reports

The Middle East bunker scene is feeling the effects of the region’s geopolitical tensions as well as regulatory challenges and sluggish demand.

The question “how will regional geopolitical dynamics affect the bunker/shipping markets?” was a key issue at this March’s International Fujairah Bunkering & Fuel oil Forum (Fujcon 2013).

Fereidun Fesharaki, Chairman of FACTS Global Energy, presented statistics on overall fuel oil exports that largely answered that question. Iranian exports have crashed from 147,000 bbls a day in 2011 to a projected 76,000 bbls a day by 2015.

Dr Fesharaki told delegates that the outlook for petroleum demand remained positive, but lower than previous estimates. he noted that oil supply has been boosted by shale gas-related liquids, Canadian heavy oil and continued expansion of Iraqi production. That all added to a likely decline in oil prices late in the decade to near US$80/bbl from a March 2013 level of just over $100. But prices could increase a little over the next couple of years due to the abnormal demand boost due to the Fukushima Disaster which was likely to remain longer than expected. he also pointed out the low sulphur premium was at historical levels.

Looking further ahead, he thought the impact of International Maritime organization (IMo) regulations would result in major dislocation in the early 2020s as much of the high sulphur

fuel oil market disappeared. That forecast however did not factor in the widespread use of scrubbers which was also discussed at Fujcon.

Discussing fuel quality in the Middle East and the impact of the 3.5% global sulphur limit and 1.0% ECA limit, Gunnar kjeldsen of DNV Petroleum Services noted that only Fujairah was supplying LSFo as of March 2013.

returning to the decline of Iranian fuel exports, the effect of the embargo has had a dramatic effect on the bunker scene. In January, the international law firm Ince & Co published an overview of amendments to EU sanctions against Iran that came into effect in late December 2012 and clarified the position relating to bunkers.

Ince & Co said that the relevant EU regulation now provides limited exceptions to the sanctions for bunker oil that originates in Iran or has been exported from Iran, “provided that the bunker oil is produced and supplied by a country other than Iran and is purchased for the purposes of vessel propulsion”.

where a vessel is forced into Iranian waters under force majeure, the purchase of Iranian bunker oil for vessel propulsion is permitted. The law firm notes that, unlike the other exceptions to the sanctions, there is no requirement to give 20 working days’ advance notice to the relevant competent authority of buying bunkers covered by the exceptions.

while bunkers from oil of Iranian origin are exempt from the sanctions, the general effect of the amendments

detailed by Ince & Co is to prohibit almost all shipping-related business with Iran.

Fujairah’s position just outside the Gulf was one of the reasons its anchorage has become one of the top global bunkering stations. Fujcon Steering Committee Chairman and former minister, Environment & water, UAE, Mohammed Saeed Al kindi told delegates that when shipping industry people talk about Fujairah is mainly in regard to bunkering. he noted: “Firmly based on the strategic position of our port and the proven organisational and service levels available at our anchorage, we are alongside Singapore and rotterdam as one of the world’s top three bunkering locations and second to Singapore. The anchorage handled close to 12,000 calls last year.”

he continued: “Bunkering as we all know has been the catalyst for other fuel-related Fujairah activities. Storage facilities principally at this stage for product will be over 6 million cu m by the end of this year, rising to over 9 million cu m by the end of 2015. The current 12 companies involved in constructing and managing these storage terminal facilities have varied business plans. Some are simply storage providers; while others are bunker suppliers and traders. Some cover all three disciplines. we fully appreciate that there is a particular strength in such diversity.”

Dr Al kindi, who is currently the Managing Director of Fujairah Petroleum Products, made it clear that the facility building process was not over, saying: “we still expect further site options to


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Middle East


be made available for those who plan to develop their activities or those who wish to be a part of the ongoing growth of Fujairah. Also, the advent of new facilities to cater for crude storage.”

A separate development which will increase tanker traffic to Fujairah is the Abu Dhabi Crude oil Pipeline (ADCoP). This can carry up to 1.5m bbl per day, via a 360km 48in pipeline from the habsham oil Field. There are now 8m bbl of crude oil storage at Fujairah and this is scheduled to rise to 12m. Three sub-sea pipelines take the crude to single-point mooring buoys which enable loading of VLCCs.

Allied to this, but not necessarily taking its full feedstock from the ADCoP facility, Dr Al kindi noted, is the IPIC refinery Project scheduled to be operational by 2017, with the intention to process 200,000 bbl of crude a day.

The Port of Fujairah continues to expand and is adding two berths running north-south to complement its existing seven oil berths. Further planned expansion includes: completion of a second matrix manifold to cover connections from northern storage sites and the refinery; the completion of the Northern Breakwater encompassing an 18m basin; the construction of at least one 26m draft VLCC berth at the end of this breakwater, and of smaller berths towards shoreside and to the north of the breakwater to accommodate smaller vessels, oil barges, and LPG vessels.

Boosted by this activity and other port-related developments bunkering volumes will also rise, according to

Dr Al kindi. he said: “I am foreseeing or rather, imagining Fujairah’s position rising above all other bunkering stations. To facilitate future growth and meet demands, reclamation of sea for additional sites is required.”

while Fujairah is the largest bunker port in the Middle East, it is far from being only one with marine fuel being available in most ports.

Dubai, however, is rapidly growing as both a bunker trading and broking centre and also a supply port, primarily serving the large number of containerships and other vessels calling at its terminals.

recently Dubai Maritime City Authority (DMCA), the government authority charged with regulating, coordinating and supervising all aspects of the maritime sector in Dubai, held a Ship-to-Ship (STS) Provider Meeting with key stakeholders in the STS sector attended the meeting. Discussion included the annual DMCA certificate of authorisation as well as the arbitration of disputes and other issues.

DMCA also presented its on-Board STS operational review during the STS Provider Meeting. other topics discussed at the meeting included the conduct of emergency drills, key Performance Indicators (kPI) and implementation and process fees.

Ali Al Daboos, Executive Director of operations, Dubai Maritime City Authority, said: “It is crucial to carefully monitor and assess the level of expertise, professionalism, compliance with regulations and willingness to go beyond

the minimum standards of care among key stakeholders in the STS sector. The STS Provider Meeting is an important initiative that allows us to pursue these objectives and ultimately ensure the security, safety and sustainable growth of the maritime industry. Moreover, this initiative is part of our ongoing thrust to reinforce Dubai’s status as a world-class maritime hub.”

Among recent other developments newly established, Singapore-based bunker and lubricants trader Dynamic oil Trading announced plans to launch a new operation in Dubai later this year to meet growing customer demand in the Middle East.

The company said in a statement that its expansion into the UAE, one of the world’s most important bunkering hubs, marks another milestone in the growth strategy of Dynamic oil Trading, just nine months after the company was established in Singapore. The company says the new Dubai-based operation, which will play an integral part in supporting Dynamic oil Trading’s ongoing and expanding operations in the Middle East and worldwide.

Commenting on the move, Lars Møller, Chief Executive, Dynamic oil Trading, said: “This is a significant step for Dynamic oil Trading, as Dubai is key to our strategic growth plans. we have a growing customer base and an increasing demand for fuel products in the Middle East, so the time is right for us to have a strategic presence in the region in order to better support our customers. our mission is to be where our customers need us and to provide them with the quality fuel and lubricant products they require, when and where they need it. we are now underway with recruiting a talented team of bunker professionals in Dubai to help us deliver our objectives and encourage anyone interested in joining us to get in touch.”

Meanwhile, major global player Dan-Bunkering is now expanding its activities to Dubai. The Danish-owned company is already located in all major time zones with offices in Denmark (Middelfart and Copenhagen), kaliningrad, Shanghai, Beijing, Singapore, Monaco and the latest addition to the group, houston. however, the company will now also open an office in Dubai in order “to provide even greater service to customers in the Middle Eastern region”.

This year’s Fujcon reflected the region’s dynamic bunkering scene


AR

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LNG bunkering initiativesA roundup of news from the ArA region by Sandra Speares

Rotterdam can now bunker liquid natural gas (LNG) for inland shipping, which the port believes will encourage the take up of LNG as fuel.

From 1 July inland shipping can bunker LNG in the Seinehaven, in rotterdam’s Botlek, as the municipality of rotterdam has amended the port rules. rotterdam is the first port in Europe where inland shipping can officially bunker LNG.

rotterdam expects this measure to give an extra boost to the introduction of LNG as fuel. “LNG is a new fuel for inland and ocean shipping. This means that the regulations need to be amended. otherwise, there can be no bunkering and the innovation has no chance of success.

“Designating Seinehaven as a location for possible bunkering operations is the first step towards this. Together with other port authorities – Amsterdam, Gothenburg and Antwerp, among others – the port authority is now preparing further international regulations,” port alderman Jeannette Baljeu explained at the official launch celebrations in June.

The location of the first LNG bunker station in the port is expected to be announced this year. Until this opens, inland shipping can bunker LNG in the Seinehaven.

LNG at the Gate terminal

Eneco and AGA Gas have signed an agreement for small-scale LNG vessel reloads which will take place at the

Gate terminal in rotterdam. This marks the start of small-scale LNG bunkering, with the port opening up new market opportunities for LNG as a clean alternative transportation fuel.

The first reload is planned for September or october 2013, to be conducted at the Gate terminal, which has been investing in order to develop this side of the market.

The LNG is destined for the Scandinavian market for small-scale applications. operator Anthony Veder will transport the LNG to AGA’s terminal in Nynäshamn, Sweden.

Total investment

Total has given the go-ahead for a €1bn modernisation project for its Antwerp production complex, the group’s largest refining and petrochemical platform in Europe.

Two large investment projects will kick off in the near future. The first is the new refinery complex, which will concentrate on converting heavy fuel oil to diesel and domestic heating oil with ultra-low sulphur content. The facility is due to enter production by the beginning of 2016.

The other is a new installation for converting waste refinery gases with lower added value into cheap petrochemical feedstock, to replace more expensive naphtha derived from oil for production starting by 2017.

ArA’s legal attraction

rotterdam-based law firm AkD says that creditors of ailing shipping groups,

such as STX Pan ocean of South korea, could seek to take advantage of prevailing bankruptcy laws to enforce vessel arrests and other attachments in the ArA region.

haco van der houven van oordt, a partner with the shipping and offshore team at AkD in rotterdam, said: “The recent reports of bankruptcies and voluntary liquidation proceedings involving shipping companies have now reached levels which exceed any in recent memory. STX Pan ocean, South korea’s largest dry bulk operator, has reportedly obtained bankruptcy protection and is now seeking recognition of protection orders in various international jurisdictions after creditors moved to arrest a significant part of its fleet operating around the world.

jurisdictions after creditors moved to arrest a significant part of its fleet operating around the world.

Haco van de Houven van Oordt expects more creditors to arrest ships in Rotterdam



AR

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“Creditors are looking to protect their assets and limit their losses in the most efficient way possible. And because shipping is such an international industry, those creditors are becoming increasingly keen to understand the legal approach to bankruptcy adopted in different parts of the world. For example, bankruptcy protection does not enjoy worldwide currency. It works in those countries – including the US and the Uk – which adopt a universal approach to cross-border insolvencies. But there are a few exceptions to this rule,” houven van oordt explained.

“It is reported that several of STX Pan ocean’s creditors have already arrested vessels in China, and we expect creditors also to turn to the Netherlands, which adopts a territorial approach to bankruptcy. This means that creditors can still take action against the assets of STX Pan ocean in the Netherlands despite the existence of bankruptcy proceedings and protection orders.”

In addition to its territorial approach to the law of bankruptcy, the Netherlands is widely recognised as a haven for those looking to attach ships and/or to arrange for their swift judicial auction. There are very few legal hurdles to pass in order to obtain leave for attachment. And it is not just ships calling at rotterdam and Amsterdam which are subject to attachment in the Dutch courts. All ships proceeding to Antwerp and Ghent have to transit the river Scheldt, where they are also subject to the Netherlands’ jurisdiction.

“It would be surprising if we did not see creditors looking increasingly

to the ArA region in the wake of the continuing fallout from the bankruptcies of major shipping groups,” states houven van oordt.

Europort emissions focus

The Europort 2013 exhibition, due to take place in November will showcase some of the technology available designed to meet environmental requirements under Tier III legislation.

The International Maritime organization’s (IMo) Tier III restrictions require an approximate 74% reduction in Nox emissions when compared to Tier II-type engines. Permissible Nox emissions under Tier III are restricted to between 3.4g/kwh and 2.0g/kwh, depending on an engine’s rated speed.

Shipowners also need to address tightening sulphur dioxide emissions restrictions from 2015, particularly in ECAs. Under the currently agreed schedule, the amount of sulphur permitted in marine fuels will fall in ECAs from a current 1% to 0.1%in 2015, and globally in 2020 from 3.5% to 0.5%.

The introduction of the 2020 global sulphur cap has been the subject of much debate, with industry players suggesting that refineries will be unlikely to be able to meet requirement, causing a deferral to 2025.

highl ights at Europort’s ‘Pioneering with LNG’ session will showcase Dutch expertise in inland operations, shipbuilding and marine equipment. Mare Forum will address the wider strategic issues

on future trends in fuels, as part of a wider debate on eco-ships, using the stimulating, free-flowing and informal approach to discussions that is the hallmark of the Mare Forum formula.

recent presentations at Nor-Shipping suggested that despite opinions to the contrary, eco-ships are here to stay.

Tier III and how to address it are also themes high on the agenda for exhibitors at Europort. “we have developed a ‘Green route’ specifically to guide exhibition visitors through the companies recognised for the technologies they have developed to meet environmental concerns,” said raymond Siliakus, Europort Exhibition Manager.

Polish company Enamor is exhibiting at Europort 2013 to draw attention to the suite of control and automation products it has developed that address issues raised by the Ship Energy Efficiency Management Plan.

These will include the company’s Propulsion Control Assistance System ETNP-10 – a drive control that takes into account the draught of the ship, its current load and the rotation speed of the shaft. This allows users to observe the field of drive and to initiate an immediate response when limit values are exceeded. Parameters such as torque, power, rotating speed, vessel’s speed and efficiency are constantly measured and analysed.

Enamor will also exhibit the Fuel Consumption Monitor EFCM – a tool dedicated to control current fuel consumption for use on ships equipped with pulse flow meters. The system measures the consumption of low and high sulphur, heavy and light oil by the main engine, auxiliary engine and boiler. Measurement results are displayed on a colour touch screen.

Europort 2013 represents one of the last chances for the industry to gather before Tier III restrictions change the way ships operate, the fuels they consume and the way both are documented.

As Siliakus observes: “our experience of the maritime industry is that visitors will arrive knowing what information they need to find and with only a limited amount of time to find it. It is also our experience that there is no substitute for putting the questions you want answered face-to-face.”

Total has given the go-ahead for a €1bn modernisation project for its Antwerp production complex

Haco van de Houven van Oordt expects more creditors to arrest ships in Rotterdam


Scandinavia &

Baltic

Leading on alternative fuelsShipowners within Scandinavia and the Baltic are increasingly looking to new fuels to comply with impending tough sulphur content limits, while interest in scrubbers increases

The impending 0.10% sulphur limit in the Baltic and North Sea is concentrating shipowners’ minds within the Scandinavia and Baltic

regions, especially with regard to the viability of ferry services that compete with land transport.

From 2015 ships operating in the region’s Emission Control Areas (ECAs) will have to comply with the 0.10% sulphur limit by using low sulphur marine gas oil (MGo), fitting scrubbers to allow continued use of heavy fuel oil, or switching to an alternative ECA compliant fuel.

Claes Berglund, Director of Public Affairs and Sustainability for major owner Stena AB, told delegates at the Norton rose’s ‘Fuelling the Future’ conference, held in London in April, that there was another alternative: closing down operations. Although this was said in an apparently flippant manner, in some cases where ferries have to compete with land transport closure could be a realistic option.

Berglund explained that Stena was exploring the possibility of using methanol as a fuel and would be carrying sea trials on the Stena Scanrail this year and then on the Stena Germanica, running between Gothenburg, Sweden, and kiel, Germany, in 2014.

First, the company plans to run a pilot trial using methanol on the Stena Scanrail, which has been fitted with a special tank and auxiliary engines.

Methanol is most commonly produced from natural gas but it can also be produced from a wide range of biomass, including trees. It has a lower flashpoint than conventional fuel, so additional safety barriers are required. Flashpoint is the lowest temperature at which a volatile liquid can vaporize to form an ignitable mixture in air.

In addition to a low flashpoint of just 12°C, methanol is toxic when it comes into contact with the skin, is inhaled or ingested, and its vapour is denser than air. As a result of these properties, additional safety barriers are required by DNV.

The Norwegian classification society DNV confirms that interest in methanol as ship fuel is growing in response to the need to reduce Nox and Sox emissions. however, methanol’s flashpoint poses safety challenges, although DNV’s new notation, an industry first, is said to cover every aspect of safe design.

A well-place IBIA source told world Bunkering that they thought that the DNV guidelines would be welcomed by the bunkering community and that the use of methanol as bunker fuel would be a welcome contribution to the continuing task of improving shipping’s carbon footprint.

“Methanol is well known to DNV through our many years of working with chemical tankers and platform supply vessels that currently transport it as cargo, and we see the risks as

manageable,” said Tobias king, DNV project manager and in charge of the rule development process.

The new mandatory notation LFL FUELLED covers aspects such as materials, arrangement, fire safety, electrical systems, control and monitoring, machinery components and some ship segment specific considerations.

however, writing in the Bunker Bulletin magazine, the commercial manager of Estonian-based Arte Bunkering, Seva Tkachenko, made it clear that scrubbers were not going be available in significant numbers, and there were not nearly enough LNG powered ships to make this a realistic alternative.

“That means” he said, “that in order to comply with ECA regulations, the industry will need suppliers to offer fuel with a sulphur content of less than 0.10%. Given the difficulties in producing intermediate fuel oil (IFo) with sufficiently low sulphur content, for the moment, distillates seem to be the only viable option.”

while that may be the case, many shipowners and ports within the region are pressing ahead with projects to switch to LNG as a marine fuel.

For example, NLI Solutions and wilhelmsen Technical Solutions have received approval in principle from Norwegian class society Det Norske Veritas (DnV) for a jointly-developed LNG fuel tank solution based on the NLI LNG tank design.

Ficaria Seaways ihas been equipped with an Alfa Laval PureSOx scrubber system since 2009



Scandinavia &

Baltic


The two companies have worked on the development of a LNG fuel tank design since 2009 in response to growing interest from shipowners to the use of LNG as a marine fuel. The tank is designed to IMo-B standards and is a prismatic, atmospheric and self-supporting LNG steel tank with state-of-the-art cryogenic insulation. Parts of the tank system are patent pending.

In addition, NLI has developed a concept for an LNG bunker barge based on the NLI LNG tank design. It said that the concept has been further developed in a design study together with the Marine division of rolls-royce and wilhelmsen Technical Solutions (wTS).

Momentum towards using LNG is also picking up in the ports. A collaborative project between private infrastructure companies and the Port of Gothenburg and the Port of rotterdam should see LNG bunkers being supplied in 2015 with the assistance of Skr305m (US$46m) in EU funds.

“EU support is a clear indication of how important shipping is for sustainable transport throughout Europe,” said Magnus kårestedt, Port of Gothenburg Chief Executive.

According to a Port of Gothenburg statement, a formal decision will be reached in a few months. The port says: “There are already strong indications that the investment in LNG terminals in rotterdam and Gothenburg will be one of the EU Commission’s most prioritised ‘Motorways of the Seas’ projects ever.”

Netherlands-based terminal operator Vopak and the Swedish gas infrastructure company Swedegas are investing in an LNG terminal in Gothenburg that will supply LNG to both shipping and industry.

Collaboration with the Port of rotterdam will involve constructing the necessary infrastructure at the ports and producing regulations for handling LNG. Another key area will be to increase knowledge of LNG as a marine fuel.

“A major benefit of this collaboration is that we can work together and send a very clear signal to the market that LNG will be available at the largest port in Europe and the largest port in the Nordic region. The shipping companies need to be assured of this before investing in new LNG-powered vessels,” said Lars Gustafsson, president of Swedegas.

The Polish port of Świnoujście work also plans to offer LNG by 2015 at a new LNG import terminal. The US$662m facility, under construction for Polskie LNG, is due to start taking deliveries in 2015.

The project leader, rafał wardziński, has been quoted by reuters as saying that the terminal could be used to supply LNG as a bunker fuel.

At least some owners, however, are planning to continue to use heavy fuel oil after the 1 January 2015 deadline and comply with the 0.10% sulphur limit by using abatement technology (scrubbers) to achieve an equivalent result in terms of emissions.

In December DFDS Seaways contracted Alfa Laval to supply Alfa Laval PureSox exhaust gas cleaning systems for three roll-on/roll-off cargo vessels to be retrofitted by the Polish shipyard remontowa. The contract was signed in 2012 and an initial announcement made in January 2013. Delivery is scheduled for July 2013 with installation and commissioning to follow immediately thereafter.

DFDS first installed Alfa Laval’s scrubber on the Ficaria Seaways in 2009. Alfa Laval says that the equipment has logged more than 10,000 hours of successful operation in both open and closed loop configurations as well as continuous compliance with current and future IMo regulations. This includes regulation 14 of MArPoL Annex VI, which takes effect on 1 January 2015, and restricts sulphur and particulate matter emissions to a maximum of 0.1% in sulphur emission control areas (SECAS), among DFDS’ most frequented routes.

Alfa Laval said: “The installation of PureSox will enable the three ro-ro vessels to continue to use heavy fuel oil with a high sulphur content, yet comply with the future sulphur oxides (Sox) emissions limit. The Petunia Seaways and the Magnolia Seaways, which are sister ships to the Ficaria Seaways, are each powered by a MAN 9L60MC-C main engine, providing an output of 21Mw on each vessel. The Selandia Seaways has two GMT Sulzer 9ZA 50S engines, providing a combined output of 216 Mw.”

The Port of Gothenburg plans to begin supplying LNG bunkers in 2015

Ficaria Seaways ihas been equipped with an Alfa Laval PureSOx scrubber system since 2009


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

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

Port KavkazTel: +7 (86148) 4-43-47E-mail: [email protected] www.ybunker.com

Offi ces in Rostov-on-Don, Taganrog, Yeisk and the Port of Kavkaz

Fleet of 13 own bunkering barges complying with loading and supplying regulations

Own storage facilities giving fl exible bunker delivery options

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Fuel deliveries compliant with MARPOL and SOLAS regulations

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


Russian update


Russian newsNews round-up by olga bogacheva

Russia’s Federal Anti-monopoly Service (FAS) is again demanding the privatisation of port facilities. It says the involvement of private

enterprise would improve what is almost exclusively a state-run sector.

Under FAS proposals a single stevedoring company will be allowed to control more than 35% of all berths in any port.

rBC Daily reported in June that FAS presented its draft survey of competition in russia in 2012 to the government. The report covered the development of sea ports in detail. “one of the factors preventing competition within sea ports and among different ports is the lack of private and municipal berths, leading to a deterioration of the investment climate in the industry,” the survey says.

Currently all berths, piers and port development land belong to the state. There are only a few private berths and no municipal berths at all, the FAS survey states. It asserts that the transfer of berths to municipalities or their privatisation would improve port services, decrease cargo handling time and reduce tariffs.

however, FAS proposed restrictions of the number of berths and the area sold to a single stevedoring company. An FAS spokesperson explained that one company should not own more than 35% of the berths in each port. These restrictions were discussed when the federal law “Sea Ports in the russian Federation” was under consideration;

since then, FAS has not submitted them to any other state bodies.

Lifting the current ban on port privatisation was discussed in 2010. Then FAS proposed to sell out only river berths.

however, the authorities are in no hurry to discuss the issue. The Ministry of Transport denied receiving any relevant official applications, rBC Daily reports. rosmorport declared privatisation of berths may be only considered after adoption of certain amendments to current federal legislation.

The Federal Port Agency considers the current situation does not restrict competition among sea ports because the majority of berths are on long-term (49 years) leases.

Transneft trades crude oil on SPImEX

Transneft has traded crude oil trade in the petroleum section of St Petersburg International Mercantile Exchange (SPIMEX) since its opening in late May, this year. Two transactions, totalling 55,000 tonnes and valued at $25m, were registered on the first trading day.

The transactions were registered with new instruments accepted as commodity specifications by the petroleum products section on 27 May. These instruments are balance points (BP) based on oil trunk pipelines. Each BP includes several sites of delivery (oil discharge stations or refinery flowmeters). The prices quoted include transportation costs to relevant BP.

Currently three BP are available for traders: Verhnevolzhsknefteprovod, Vostoknef teprovod and Chernomorsktransneft.

SPIMEX is the largest russian commodity exchange trading real commodities and futures. It publishes oil products index daily basing on the transactions registered on the previous day. Transneft, Transnefteproduct, rosneft, Gazprom Neft, Zarubezhneft, Surgutneftegas are among SPIMEX’s founders.

russian Far East priorities announced

The russian government has approved the list of priority investment projects at russian Far East. It includes Sovgavan port-based special economic zone in khabarovsky kray (PSEZ Sovgavan) and the Zvezda ship-building complex in Primorsky kray.

The list was submitted by the Ministry of Industry and Trade of the russian Federation and approved by Dmitriy Medvedev on 3 June.

The Ministry of Economic Development and Trade, Ministry for Development of russian Far East, and khabarovsk government have been appointed to manage the PSEZ Sovgavan developments.

The PSEZ Sovgavan project includes the construction of multipurpose port facilities, a ship repair centre, container terminals and development of fish processing facilities. It will be sited at the eastern shore of Sovetskaya Gavan


Russian update

Gulf and occupy an area of 4.5 square kilometres, allocated for 49 years.

The Ministry of Economic Development and Trade, Ministry for Development of russian Far East, Primorsky kray government and United Shipbuilding Corporation, have been appointed to manage the development of the Zvezda complex. Construction should start this year and it will be finished by 2021.

The Zvezda ship-building complex is intended to build tankers of up to 350,000dwt as well as ice-class vessels, gas carriers, special vessels, and offshore platform and infrastructure.

Gazprom’s Leningrad region

LNG plant to open in 2018

Gazprom has begun construction of a new LNG plant in Leningrad region. Estimated annual output is 10 million tonnes. The facility is scheduled for commissioning in 2018, a spokesperson announced.

A feasibility study has demonstrated the economic viability of the new project. Basic technical solutions have already been developed. “Two possible sites for the LNG facility are now under consideration. The first stage is to be commissioned at the end of 2018,” the study notes.

Gazprom President Aleksey Miller held a meeting where the construction of LNG plants in Primorsky kray and Leningrad region were considered. The Far Eastern facility will supply mainly Asian and Pacific regions. The facility in Leningrad region will supply bunkering fuel in small batches for the vessels at the Baltic Sea.

boskalis in deal with bronka port

Phoenix, the investor behind Bronka’s multifunctional sea complex project in St Petersburg, and port construction firm Boskalis signed a contract at St Petersburg International Economic Forum on 20 June for the building of the Bronka’s complex. work should commence in August 2013.

The Bronka project is on the southern shore of the Gulf of Finland and includes three specialised terminals. Total private investment into this project is expected to total $1.5 billion by the end of construction. Federal authorities are to invest $500 billion in this project. The project should create 2,300 jobs at the sea terminals alone

Gazprom Neft marine bunker

supplies at Sochi

Gazprom Neft subsidiary Gazprom Neft Marine Bunker is the first company in the Black Sea region with permission for operations in the port of Sochi. The company has already delivered fuel to a Carnival Cruise Lines vessel, according to a spokesperson.

Gazprom Neft Marine Bunker is one of the market leaders in the Black Sea, operating at all large ports: Novorossiysk, Tuapse, kavkaz and Taman. The company delivered 130,000 tonnes in 2012, doubling its total for the previous year.

New Taman port

“to reach turnover target”

New Taman port will reach its annual turnover target of 93 million tonnes of dry cargo soon, ITAr-TASS reported on 28 June.

reporting a meeting between krasnodarskiy kray Governor Alexander Tkachev and Tamanneftegas Chief executive Michel Litvak, an ITAr-TASS report noted that the governor had thanked the Belgium businessman for his active implementation of oil processing technologies and construction of new port facilities at Taman.

“There were no similar services on Taman peninsula and in Azov region”, said Tkachev, “The regional government will support this project at every level. It is included in the regional priority list.”

Tamanneftegas built a new oil terminal at Taman. Currently its output is 10.5 million tons and is expected to double to 20 million tonnes soon. Construction of terminals for handling coal, sulphur and ore is under way.

Litvak said that he considered krasnodarskiy kray to be the most business-friendly place he had come across.

New ust-Luga terminals

SIBUr’s Ust-Luga LNG terminal, the largest in CIS countries, was built in three years, and has the capacity to handle 1.5 million tons of LNG and up to 2.5 million tons of light fuel a year. The company’s investment in the project was $830m.

The facility includes isothermal storage for 40,000 cubic metre of refrigerated LNG, while pressurised LNG tanks can take a further 10,000 cubic metres. In the terminal’s addition light fuel handling

capacity of 100,000 cubic metres may boost oil exports.

Meanwhile NoVATEk-Ust-Luga’s LNG terminal is now operational, the result of a r20bn investment. Brazilian company Braskem is the terminal’s first customer and is set to receive about 1 million tonnes of naphtha by the end of the year.

QmS for russian suppliers

Singapore-based Cross keys Group said that it has helped implement quality management systems (QMS) for the bunker supply chain in Nakhodka, run by russia-based companies Nayada and Nakhodka-Portbunker.

The move is as part of an initiative led by rN-Bunker, the marine fuel arm of the russian state-owned oil company rosneft, to “further its commitment to offering shipowners and operations in the region a consistent supply of high-quality product and service”.

Cross keys Group acted as an advisory partner to introduce QMS for the bunker supply chain in 2012 that was broadly based on the best practices as set in Singapore’s SS 524 to ensure that rosneft’s Quality Management System is accurately drafted, documented, managed and implemented across the supply chain network.

Olga Bogacheva



NIZHEGORODBUNKER LTD

Your reliable bunker supplier in the Volga basin and neighbouring waters offering high-quality fuel at flexible prices.

IN PARTNERSHIP WITH ROSNEFT

Nizhegorod Bunker Ltd13/2, Ilyinskaya Street

Nizhniy Novgorod Russia 603109

Office Tel/Fax: 00 7 831 434 4845 E-mail: [email protected]

Website: www.nbunker.ru



Russian update

world Bunkering Autmn 2013 51

Forum successolga bogacheva reports that this year’s sixth russian Bunkering Forum was attended by a record number of industry professionals

The sixth russian Forum was held in St Petersburg 27 and 28 June with debate focusing on the theme ‘Current State and

Prospects for Development of russian Bunker Services Market’.

At the end of the event the approximately 180 participants unanimously voted it the best forum organised so far by the russian Association of Marine and river Bunker Suppliers.

The first day focused on discussing the new MArPoL 73/78 restrictions coming into force on 1 January 2015, which will force shipping companies to switch from residual to alternative fuel. This was probably the first time the issue has been considered in detail in russia. one expert mentioned that a lot of time had been wasted since 2008: the required fleet modernisation and construction of necessary infrastructure had not even started yet.

The players in the russian bunkering market operators consider new sulphur and nitrogen oxide limitations excessive and untimely. ECoTEC’s chief executive, Dmitriy Galdanov, said that the whole regulatory process was being pushed ahead by vested interests in surface transport and related industries.

Lev Novikov, the chief executive of engineering company CNIIDI-Ecoservice, which designs and develops

technology and equipment for engine emissions reduction, was very sceptical. he questioned the accuracy and validity of data used in estimation of Nox and Sox pollution from ships.

In his opinion, shipping traffic contributed only a small part (not the often quoted 5%) to total air and water pollution in the Baltic region, and that improvement of the environment based on wrong, or artificially increased, estimates was not a realistic course of action. Introduction of the 0.1% sulphur limit with Emission Control Areas (ECAs) on 1 January 2016, and the implementation of IMo Tier-III norms for vessel engines, will greatly increase costs, far out of proportion with any small environmental effect they may bring.

however Bominflot managing director Anatoli Belov, told delegates that LNG is the cheap and beneficial energy resource for the bunkering market. But a switch to LNG is hindered by the prevailing economic conditions. reconstruction of existing vessels did not appear to feasible while financial institutions considered investments into shipping industry too risky, due to widespread uncertainty and pessimistic forecasts. It was well-known that many banks had got rid of specialist shipping departments and preferred to wait for the better times.

Belov also said that he doubted that scrubbers would be an effective

solution and expected to see new problems emerge as they started to be installed on vessels.

while he believed the trend towards LNG throughout the industry was obvious and all market players have to follow suit, he cautioned that supplying LNG to sea-going and river vessels demanded extensive modernisation of port infrastructures, including the construction of new storage facilities.

Significant investment in LNG infrastructure is expected to come from the government as well as from Gazprom, the largest russian LNG producer.

Igor Mainitskiy, export manager of Gazpromexport, emphasised that Gazprom’s strategic priority is expansion of gas sales for motor fuel use. Gazprom, he said, was ready to develop LNG bunkering services, to invest in relevant infrastructure and encourage shipowners to switch to environmentally sound fuel.

he conceded that it was well known that gas infrastructure safety regulations currently in force in russia were excessive, but that Gazprom has started developing new standards.

on the event’s second day, there were presentations on customs clearance for bunkers, the inland waterways market, financial matters and insurance issues.

For the first time the forum included a detailed presentation of the russian Far Eastern (rFE)


www.forumbunkering.ru

Forum Ltd.Bunker trader: Aleksey Miloradov

Phone: +7 (812) 449-65-91Mobile: +7 (921) 757-11-33

E-mail: [email protected] Yahoo ID: aleksey.miloradov

Physical supplier of LSFO, HSFO and MGO in the port of Saint-Petersburg


Russian update

world Bunkering Autmn 2013 53

bunkering market was delivered. It had demonstrated an extraordinary high growth during past decade. There were no strict environmental restrictions as there were in Europe. Fuel prices were competitive against those in neighbouring countries’ ports. So it was not surprising that clients were ready not only to buy the maximum amount of fuel but also to invest in port infrastructure, and particularly in dredging works. Nadezhda Malysheva, PortNews agency director, emphasised that many large port development projects had been announced in the region. The majority of them were likely to be implemented.

Vitaliy kovalev, president of russian Association of Marine and river Bunker Suppliers gave an overview of the country’s bunkering market, based on the latest statistics, gathered in 2012.

The total volume handled by the russian bunkering market was about 8.5 million tonnes, including 7.7 million tonnes (90%) of residual fuel and 0.8 million tonnes of light fuel. of the total residual, 2.5 million tonnes had a sulphur content of less than 1%.

The St Petersburg bunkering market was russia’s largest, at 3.2 million tonnes (against 2.7 million tonnes in 2011). Gazprom Neft Marine Bunker was the local leader (with a 23% market share). The Far Eastern market was the second largest, with impressive growth (70%) and a total volume of 2.8 million tonnes. rosneft-Bunker was the largest supplier there, accounting for 30% of the market.

kovalev also presented figures for the first quarter of 2013. Total russian volumes had been 2.2 million tonnes; Gazprom Neft Marine Bunker sold 419,000 tonnes, rosneft-Bunker 403,000 tonnes, and LUkoIL Bunker 191,000 tonnes. The total volume in St Petersburg was 655,000 tonnes, in the Far East 882,000 tonnes, and in the country’s southern ports 559,000 tonnes.

InfoTEk-Consult’s head, Tamara kandelaki, noted: “The bunkering market can be characterized as unstable and very uncertain at present. In the first place it is affected by increasingly tough sulphur restrictions. Secondly technical regulations are becoming more onerous, and taxation and charges on the industry are also growing. Furthermore the russian oil

Igor Mainitskiy of Gazpromexport

Sergey Ivanov of Marine Bunker Exchange (MABUX)

Bominflot managing director Anatoly Belov


Russian update

54 world Bunkering Autmn 2013

refining industry is going through a phase of extensive modernisation which will reduce oil production temporarily. These unexpected developments will have social consequences. All of these factors mean an increase in the price of bunkers is inevitable. So transport costs will rise and push up the price of transported goods. Do the authorities understand that? That is a crucial question.”

Sergey Ivanov, of Marine Bunker Exchange (MABUX), said that the way the international bunker industry is developing meant that players in the market would have to be more flexible. he said that it was not yet clear how quickly LNG would take off as a marine fuel, as it was difficult to predict how the shipping industry would respond to the need to reduce Co2 emissions. he said that companies had to be ready to make quick, possibly revolutionary, decisions.

The delegates’ reaction to the forum was very positive. Ivanov said: “The All-russia Bunker Forum was a real eye-opener for us. The organisers tried to enable delegates to share their experiences of bunkering operations as well as presenting innovative technologies and developing trends in the global bunker market. They succeeded!”

Similarly Irina Shilova of Service-Trade (Moscow) said: “I enjoyed this Forum. I have got a lot of new and useful information, met new people including top-class professionals who I had heard a lot about previously but never met in person. The friendly and calm atmosphere at the also forum helped delegates get a lot out of the event.”

Lev Novikov, the CEO of engineering company CNIIDI-Ecoservice

Infotek-Consult’s head, Tamara Kandelaki

This year’s Russian forum included a presentation on the country’s Far East region


Russian update


Russia in WTO: lots of questions, few answers olga bogacheva asks russian bunker industry expert Alexander Goloviznin about the implications of world Trade organization (wTo) membership

Everybody who has worked in the emerging russian bunkering market knows Alexander Goloviznin. he was the general director of Baltic Bunkering

Company, St Petersburg’s leading bunkering supplier, from 1999 to 2005. Then from 2006 to 2012 Alexander was a deputy general director responsible for development of port services at Ust-Luga. Now he is generally recognised as one of russia’s top shipping industry experts. Currently he is director of logistics and analysis at Sea Construction and Technologies (Morstroytechnology), an engineering company specialising in research and development in the sea transport field.

I asked him about the challenges russian businesses face due to their country’s integration into world economy.

ob: recently russia became a full wTo

member. It took 18 years to join wTo,

but I believe some unexpected issues

have arisen. How does wTo membership

affect the transport industry? what

trends have appeared and what can

russian businessmen expect? AG: A lot of problems have arisen. Unfortunately far fewer answer have been found so far. But it seems clear that russian railway will suffer significantly from competition. This is closely connected with logistics and access to

railway infrastructure provided to foreign transport companies.

European companies are far ahead of russian companies in logistic technologies. It’s a challenge for russian transporters to reach the same level. russian railways oAo (rrw) has a monopoly in our country. It means that its performance may appear poor compared to that of foreign companies.

As to inland water ways and the shipping industry, I think the situation won’t change drastically. why am I so sure? working for Morstroytechnology I’m able to see the whole picture. we explore various models and produce forecast of transhipping prices, sea and river freight costs and railway tariffs for large exporters, offer logistics for imported cargo constantly. A lot of our clients use combined logistic schemes like railway-river, railway-port or river-sea. we always assess infrastructure adjacent to sea and river ports as well as at a far distance from the manufacturing facilities. we use all methods available in our estimates, including netbacks, to feel all price and transport fluctuations in cargo traffic. our scenarios allow making a long-term forecast.

ob: How will rrw tariff policy change?

AG: wTo membership should equalise tariffs for russian and foreign companies. It will be a long and complicated process.

Firstly, tariffs should be differentiated with respect to cargo types and then equated. recently Federal Tariff Service (FTS) issued a new order “on Price ranges” deregulating tariffs for railway customers within the framework of transport reform and decrease of state financing of the industry. This document mainly targets at expensive cargo, particularly oil. It seems FTS tries to arrange transport business relations basing on a tariff formula. The formula will be based on oil price. Professionals in the bunkering and oil industries are worried and expect expenses to grow.

ob: will these trends influence russian

oil exports?

AG: Nothing has happened at the moment. however, rrw may change (increase) tariffs. The company may work out a feasibility study and submit it to FTS for approval. we expect multiple changes here and warn all businesses about likelihood of high volatility in the transport market. our research and analysis showed that terminals and river carriers always derive their prices basing on railway tariffs. Changes of this main component will cause volatility in other related sectors and industries.

ob: could the same happen to in

container transport?

AG: Definitely. Policy embedded in the


Russian update


new order is specifically aimed to decrease transit and thus improve competitive ability of the sector. Containers are also expensive and cargoes bound for busy destinations. They overload railway infrastructure.

ob: How are these changes connected

with tariff unification stipulated in

treaty with wTo in 2013?AG: In our opinion, the new order is just a warm-up before tariff increases for all bulk cargo. oil and oil products constitute 25%of all railway cargo traffic. The latter figure reflects volume. Based on transportation prices their share reaches 40%, by my calculation. Now, once total service prices for bulk cargo transport has grown, tariff equalisation towards sea ports and in-land transportation will be less painful.

It surely will happen in 2013. Price equalisation which has already occurred within the Common Economic Space in January 2013 was a significant step to this goal. we have already noticed sharp tariff changes for transportation of

vacuum gasoil. Fluctuations of 14-28% in both directions compared to 2012 have occurred. This factor will definitely affect the export market.

ob: what are the main trends in port

services in russia?

AG: Port business activities are increasing. Not as rapidly as we would probably wish, but the world economy has been in crisis for the last five years.

however, exports and imports are also growing and I see this clearly by looking at our order portfolio. Morstroytechnology develops new projects at various design stages. The most significant recent ones are the Vanino port development and a new artificial island for oil and gas production in the Gulf of ob.

ob: Are you monitoring

situations in the russian

bunkering market? what do

you see?AG: It seems that the main changes are connected with the growing requirement on

fuel quality. These requirements are the subject of intense discussion among the oil companies and other bunker market players.

ob: what are the main trends in port

services in russia?

Port business activities are increasing. Not as rapidly as we would probably wish, but the world economy has been in crisis for the last five years.

however, exports and imports are also growing and I see this clearly by looking at our order portfolio. Morstroytechnology develops new projects at various design stages. The most significant recent ones are the Vanino port development and a new artificial island for oil and gas production in the Gulf of ob.

ob: Are you monitoring

situations in the russian

bunkering market? what do

you see?

It seems that the main changes are connected with the growing requirement on

AlexanderGoloviznin

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 viewpoint4

Standfirst

QuTiatiasp eribustiur? Dunt a quibus niam,

ad qui sa veliatur sam eos eatur, qui dia

quatio debit, quisit,

Contact details

Picture

Picture

Logo

Caption

Maritime 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 securityIn 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]

SAleS mAnAger david Scott e-mail: [email protected]

deSignerJustin ivesjustindesign.co.uk

Published by:

maritime media ltd

the diary houserickett Streetlondon SW6 1ruuKtel: +44 (0) 20 7386 6100

Fax: +44 (0) 20 7381 8890

e-mail: [email protected]

www.maritimesecurityinternational.

net

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

introduction

Piracy 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

www.mar-media.com

26

www.greenshippinginternational.com

Corporate Profile

RightShip: introducing an easy indexLast year Cargill, Huntsman Corporation and UNIPEC UK, who together

ship 350 million tonnes of commodities annually, announced that they

would only charter the more energy effi cient vessels as determined by

RightShip’s Existing Vessel Design Index (EVDI™) and Greenhouse Gas

(GHG) Emissions Rating. The announcement polarised the shipping

industry and some industry associations denounced RightShip’s EVDI™

as too simplistic and an inaccurate system. Here, RightShip’s CEO,

Warwick Norman, answers his critics and explains why the shipping

industry needs a reliable and easy-to-understand index to measure the

energy effi ciency of the world’s existing fl eet. What is RightShip’s EVDI™?

RightShip’s Existing Vessel Design Index (EVDI™) provides a theoretical estimate of

the amount of carbon dioxide emitted by any nominated ship, per tonne nautical

mile travelled, based on the engine and vessel design characteristics when the ship

was built. It is based on the same principles as the International Maritime Organiza-

tion’s (IMO) Maritime Environment Protection Committee (MEPC)’s Energy Effi ciency

Design Index (EEDI). However, unlike the EEDI that is applied only to new ships from

1 January 2013, the EVDI™ is designed for application with existing ships.

If the IMO’s EEDI was designed for new vessels, can it be applied

to existing ships? Yes. The 2007 Denmark paper that initially proposed the EEDI to IMO’s MEPC

stated that it is not inconceivable that design indices or equivalent may be applied

retroactively to existing ships. The IMO has now documented EEDI benchmarks and

reference lines based on the existing fl eet and historical data. How reliable is the data used in the EVDI™? And how can owners

check and fi x errors?We aim to only use accurately sourced data and our calculations are consistent with

those accepted by the IMO for its application of the EEDI.

EVDI™ values are calculated from data on ship characteristics that is accessible

to RightShip. The primary sources of data have been existing data within RightShip’s

Ship Vetting Information System (SVIS™), IHS Fairplay (IHS) database, classifi cation

societies and ship-sourced data. Before we launched the EVDI™ in 2010, we provided an advanced preview to our

owner/manager customers, seeking their validation of the data provided through

IHS Fairplay and other sources. In September 2012, we also contacted over 4,600

shipowners in our database, inviting them to view and update the engine and vessel

design particulars of their fl eet for free through our partners at shippingeffi ciency.

org. Since this site has been launched, the system and data has been accessed and

validated over 100,000 times and this gives us confi dence about the reliabilty of our

information. We continue to work closely with shipowners to validate the data used

for their vessels and fl eet lists.How does the GHG Emissions Rating work? Isn’t an A to G scale

too simplistic? While the A to G benchmarking scale is simple to understand, the methodology

used to calculate the GHG Emissions Rating is complex. The A to G rating is based

on the vessel’s EVDI™, which is then logarithmically adjusted and compared to

the mean and standard deviation of vessels of a similar size and type to provide a

metric called the EVDI™ Size Score. The EVDI™ Size Score (Z Score) is then used as

a statistical measure of relative effi ciency across peer vessels. It would be unfair to

compare a 40,000 dead weight tonne tanker to a 200,000 dead weight tonne bulk

A to G Greenhouse Gas Emissions Rating System

Vessel Sustainability RatingsCarbon foot printing tool for ports and terminals

Third party verified data for retrofits and

upgrades information on vesselsSEEMP & TEEMP data capture

MANAGING eNvIroNMeNtAl rISK

Australasia | MelbourneP +61 3 8686 5750

Europe | LondonP + 44 207 337 6180

Americas | HoustonP +1 (281) 245 3380

For More INFo CoNtACt

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SPeCIAlISt ServICeS FortrADerS CHArtererSSHIP oWNerS terMINAlS / reFINerS Port AUtHorItIeS INSUrerS

A

B

C

D

e

F

G

GSI Book.indb 26

07/03/2013 11:46

18www.greenshippinginternational.com

Shipping has no choice but to find a way of meeting 2015’s tough sulphur limits, but is fuel switching too expensive and can scrubbers offer a viable alternative?

Cap in hand

The industry has less than two years to meet the 0.1% sulphur cap for emission control areas (ECAs) and yet arguments over which approach is best to meet the cap are still ongoing. In one corner are exhaust gas scrubbing systems manufactured by companies like Finland’s Wärtsilä and Germany’s MAN B&W, and in the other is the option to switch away from burning heavy fuel oil and use more expensive distillate fuel or even, primarily for future newbuilds, LNG.Can scrubbers offer an effective, reliable and affordable solution, though? The

technology is mature on land but shipboard installation is still relatively new. Wärt-silä only began operating its first pilot installation on the tanker Suula a little over four years ago, while MAN followed suit on a ferry operated by Denmark’s DFDS a year later. Wärtsilä and its subsidiary Hamworthy Krystallon have now started to win their first commercial installation contracts, with an initial order from Containerships Ltd in 2010, followed last year with fresh deals for six newbuild ships with Laker operator Algoma and one newbuild panamax LPG carrier, owned by Solvang.

So far, most orders have been for closed-loop freshwater systems, which have a self-contained supply of washwater to which caustic soda is added to neutralise sulphur before the water is treated to remove particulates, oil, and the acidic sul-phur content, then pumped round the system again. Open-loop systems simply pump seawater into the stack, using natural alkalinity to neutralise sulphur oxides, rendering their operational reliability vulnerable to changes in salinity and water content, then filter it for oil and particulates before pumping it back over the side. Closed-loop systems take up considerably less space, but require more equipment, caustic soda supply, disposal of treated waste water on shore and can suffer from added corrosion.

However, in December last year, Wärtsilä received a repeat order to provide a hybrid exhaust gas cleaning and SCR system. The systems provide universal com-pliance with sulphur limits, including the North American ECA, the 2015 0.1% ECA in Europe, the worldwide 0.5% sulphur limit from 2020 and Tier III IMO NOx limits from 2016. The hybrid exhaust gas cleaning system also enables the choice between open-loop and closed-loop scrubbing to be made at any time. This means that exhaust gas cleaning using only seawater can be enabled at sea, but while manoeuvring or in port the system can be closed, re-circulating the water already within the scrubber. In addition, the SCR system, which is integrated into the engine downstream of the exhaust gas turbine, will remove up to 95% of NOx from the vessel’s emissions.

MAN B&W is working on a dry scrubber, in which exhaust gas flows through limestone granules in – in one pilot proposal, at least – a 20ft container stored on board. The sulphur reacts to form gypsum and once the limestone is used up, the whole container can then be removed to the shore and replaced. This technology, while potentially attractive to owners due to the relative ease of disposal and mini-mal technical requirements, is still very much in its infancy though, and all produc-tion models so far are wet systems.Meanwhile, Singapore-based company Ecospec says it has developed a freshwater

closed loop CSNOx system, which has been successfully trialled by Canada Steamship Lines. Ecospec’s. Ecospec caused something of a sensation in 2009 when it revealed its CSNOx system as the world’s first emissions abatement system capable of removing car-bon dioxide (CO2) from engine emissions. The system is designed to abate three gases in one process that operates in both closed loop and freshwater conditions.Great Lakes operator CSL has installed a CSNOx system on one of its bulk carriers,

the Spruceglen. The first series of tests carried out last year were aimed primarily at optimising the efficiency of the sulphur oxide (SOx) reductions. Ecospec says: “ The system has been running for hundreds of operating hours in an economy mode with confirmed reductions of SOx. The system is also capable of reducing CO2 and Nitrogen Oxides (NOx) concurrently. Formal performance measurements of these two gases will be carried out during phase II tests to be done in 2013, once the SOx removal process has been optimised.”

Emissions

GSI Book.indb 18

07/03/2013 11:46

Publisher: W H Robinson

Editor: David Hughes

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Deputy editor: John Rickards

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international

2013


spring

GSI Book.indb 1

07/03/2013 11:45

international


2013spring

Carbon conundrum - biofuel or nukes?

Green Award takes in boxships

ECA 0.1% sulphur limits loom

Class societies go green

Scrapping

EU spanner in

the works

GSI Book.indb 1

07/03/2013 11:44

INTERvIEW

Spring 2013 13

during the European and Asian forums, the first of which will be

held in Geneva in early June.”According to Leslie, apart from the obvious challenges

with Dodd Frank Act and CFTC regulations, volatility and the

resulting liquidity has been a tale of crude versus clean. “As

many observers of the tanker market will know, the crude sec-

tor, especially vLCCs, is in dire straits and returns are extremely

poor. Liquidity in TD3 has suffered, with little prospect for spec

players to make a return and poor conditions for owners and

those with exposure to manage risk. The clean sector has been

the antithesis with strong volumes from the beginning of the

year, with both very strong MR2 and LR1 markets. Liquidity

has benefited as a result and it’s encouraging to see this sector

growing and new players participating.”

So what can market players expect for the future?

According to Radcliffe: “It is obvious that the dry freight market

continues to feel the effects of the boom years during which

the newbuilding orderbook exploded. 2012 was the peak

delivery for the Capesize sector, while it is this year that is peak

delivery for the Panamax sector. With scrapping on the increase

due to the low value of each sector, there are some that see a

slight recovery in the Capesize sector towards the end of this

year. For Panamax, it will be longer before the supply/demand

equation becomes more demand driven and less oversupplied.

“The oversupply of Panamax vessels can clearly be seen by

the level at which the vessels have been competing with each

other to fix grain business ex ECSA at this time of the year –

the 2a index only managing to reach $18,000 so far,” Radcliffe

says. “With the arrival of vale’s new fleet of valemaxes and the

shift in trade patterns over the past five years, the open freight

market is increasingly dominated by trans-pacific trade (around

50% of seaborne trade), influenced largely by the 7.5-8.5%

annual economic growth of China. It is largely this economic

growth that will eventually lift the freight market out of its

current gloom in the coming year or so.”

According to Leslie: “There is definitely a sense on our

desk at ACM/GFI that things are turning a corner in the clean

sector. From the S&P market, to projects and time charters, to

spot, and also FFAs, there is a new confidence, albeit fragile,

that prospects are improving for this sector. The paradigm

shift we are seeing in the United States as a result of the

shale oil story as well as increased refining capacity in the east

undoubtedly points to new and greater product flows.

“However, as my research team has pointed out, there

could well be some surprises for the crude oil sector as well

with greater tonne mile demand being created by flows from the

caribs to the east and similar flows of that nature.” n

As many observers of the tanker market will know, the crude sector

is in dire straits and returns are extremely poor

COMMODITIES

Spring 2013 21

to be the major reason that South Africa overtook India as the third largest iron ore supplier to China. n TATA’S IRON ORE SHIPMENTS Northland Resources has started shipments of iron ore to Tata Steel UK Limited .The first shipment from the Port of Narvik in Norway was for 40,000 tonnes of high-grade iron ore concentrate for a customer in Europe. FE content is above the expected 69%, Northland said. The cargo was shipped by Star Norita to Tata Steel in the Netherlands where the product will be used in their pellet plant.

The first shipment to Tata will be followed by regu-lar shipments to customers in Europe, the Middle East and the Far East. Total shipments in 2013 are expected to amount to 1.5 million tonnes, increasing to a rate of about 4 million tonnes per year, or 350,000 tonnes per month, by the third quarter of 2014. n

CHINA STEEl SuPPORT China's steel association said it would support Brazil’s vale docking its giant valemax ore carriers at Chinese ports if that would lead to a decrease in iron ore costs for its members, Reuters reported at the end of January.“This is a matter for the transportation authorities, (but) Chinese steel enterprises hope that iron ore prices will fall and that transportation costs will fall, and if this is good for that, then I support it,” Zhang Changfu, secre-tary-general of the China Iron and Steel Association, said at a press briefing.

n wAIO ON THE uP According to BHP Billiton, Western Australia Iron Ore (WAIO) delivered a twelfth consecutive December half year production and sales record as the business continued to benefit from the company’s decade- long investment in supply chain capacity. “Our Pilbara operations achieved another significant milestone during the December 2012 quarter with first ore received by the recently installed fifth car dumper at Finucane Island. This car dumper is the last major piece of infrastructure required to increase WAIO port capacity from the December 2012 quarter run-rate of 188 million tonnes per annum to 220 million tonnes per annum (100% basis). “The Jimblebar Mine Expansion, which is on schedule for first production in the March 2014 quarter, will broadly match mine and port capacity at this expanded rate, while the progressive de-bottlenecking of the supply chain is expected to underpin substantial low cost, longer term growth in our WAIO business,” the company said. “The strong outlook for our WAIO business is underpinned by an anticipated 5% increase in production in the 2013 financial year, for unchanged guidance of 183 million tonnes (100% basis). Samarco’s (Brazil) three pellet plants continued to operate at capacity during the period.”

n

Introduction of cleared cash settled iron ore options will add value and will complement and add liquidity to the existing futures market

NORTHlAND’S KAuNISVAARA TAPulI MINE

BHP BIllITON, wESTERN AuSTRAlIA IRON ORE

CONTENTS

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.

WELCOME 1

STAy AHEAD OF THE PACKOur new publication gives you the latest

information on movement of cargo

NEWS 6

IN BRIEF...All the latest news, views, company moves, reports and

conference updates

INTERvIEW 12

FORwARD THINKINGRegulation and liquidity are just two of the issues on the agenda for

FFA brokers going forward. Sandra Speares talks to GFI senior futures

and options broker and FFABA chairman Ed Radcliffe and head of

wet freight Will Leslie

INDUSTRy NEWS 14

ClEARING A PATHRegulation of derivatives trading is becoming increasingly complex and

trading platforms have to be up to date on all board moves.

However, the key issue is not to be put off by the complexity of this

topic and find people who can help keep things simple

FINANCE 16

CAuGHT IN A SEA CHANGEShipping finance is facing turbulent times, says Basil M Karatzas,

CEO of Karatzas Marine Advisors. So what is the way ahead

for shipowners?

CHINA FOCUS 18

EASTERN PROMISEAs the FFA market continues to develop in China, one question is

whether Chinese businesses that want to participate in FFAs stay on

shore and make their trade with local companies – or go offshore

COMMODITIES 20

Full STEAM AHEADStrong growth in the iron ore market looks set to continue in the

Asia Pacific region, with a surge in Chinese imports during the first

month of this year

COST REDUCTION 16

EFFICIENCy IN ACTIONAs new regulations aimed at improving the energy efficiency of

international shipping take effect, what steps are shipowners taking

to ensure that they are compliant with the rules?

SHIP vALUES 24

AuTOMATED RESPONSESome may be sceptical about whether automated

valuation works or not. Here, vesselvalue answers some

of the questions about it

TRADING 26

AllIANCE IN ACTIONThe G6 Alliance is expanding its co-operation to the

Asia-to-North America East Coast trade.

Plus: Maersk halts loop; Hanjin expands;

Suez tolls cause concern; Jamaica goes for growth

CEO OF KARATZAS

MARINE ADVISORS

ON SHIPPING FINANCE

STRONG GROwTH IN

IRON ORE MARKET

ENVIRONMENTAl

REGulATION

ON THE INCREASE

STAy AHEAD OF

THE PACK

SPRING 2013freightfocus.org


Innovation


Rules of engagement As the industry gears up to a whole new level of regulation, there are plenty of innovative products on offer, as Sandra Speares reports

Japanese classification society ClassNk has announced new software, PrimeShip-GrEEN/PSTA (Progressive Speed Trial Analysis), to help shipyards

comply with the amendment to MArPoL Annex VI making calculation of a vessel’s EEDI (Energy Efficiency Design Index) mandatory.

The software analyses the results from speed trials and calculates a ship’s speed in calm sea conditions. It is being provided to shipyards free of charge.

The amendment came into force in January 2013, enforcing mandatory EEDI calculation and EEDI regulation values for vessels contracted from 1 January this year onwards. when calculating EEDI, external factors such as the wind, waves, tides, shallow waters and displacement during speed trials can be corrected for to allow for higher accuracy when determining a ship’s speed in calm sea conditions.

ClassNk says in a statement that it developed the software to provide a straightforward method for compensating for external factors in progressive speed trial analysis, based on ISo Standard 15016:2002, recognised in the IMo EEDI Guidelines ‘2012 Guidelines on Survey And Certification of The Energy Efficiency Design Index (EEDI)’.

It adds is committed to supporting the maritime industry in complying with new international conventions,

and is constantly developing various support tools among others as part of this commitment.

Industry standards

The International Standards organ-ization (ISo) is to mobilise an expert group to start work on a common industry standard for measurement of changes in hull and propeller performance. The move has been welcomed by paint manufacturer Jotun.

In a statement Jotun said that, in cooperation with the Bellona Foundation and Standard Norway, it had been successful in mobilising shipping industry stakeholders in an effort to reach general agreement on a method for measuring changes in hull and propeller performance.

According to Jotun improving hull and propeller performance could see the world fleet reduce fuel cost by as much as $30bn per year and achieve an estimated 0.3% reduction in man-made GhG emissions.

The company said: “The main barrier to realizing this potential has been a lack of an accurate and reliable method for measuring hull and propeller performance over time.”

In preparation for work on an international standard, Jotun has contributed to two proposals submitted by Bellona as a part of the Clean Shipping Coalition to IMo’s Marine Environment Protection Committee (MEPC). In

cooperation with Bellona, Jotun has hosted two international workshops involving more than 40 experts representing relevant stakeholders. Finally, together with Standard Norway, Jotun has co-authored the New work Item Proposal that has now been approved by the ISo.

“Broad stakeholder involvement from the start to the end of this process is absolutely critical,” said Geir Axel oftedahl, Business Development Director at Jotun hull Performance Solutions. “our objective is to win industry acceptance for a method for measuring changes in hull and propeller performance. To achieve this goal, we need to ensure that the standard delivers on the requirements and expectations of all relevant stakeholders.”

over the next six to 12 months, the ISo expert group will produce a draft standard. Jotun has been asked to lead the work on the draft and will share its extensive experience and data within the area of hull and propeller performance.

“we are pleased to see that a number of other stakeholders have already agreed to contribute, and call on others with interests and capabilities within the area of hull and propeller performance to do the same,” said oftedahl. “If we are successful in reaching general agreement on a method for measuring hull and propeller performance, it will make a substantial contribution to the industry – and help align the interests of


Nevsky Shipyard, LLCFabrichny Ostrov 2, Schliesselburg,Leningrad Region, RUSSIA 187320Phone: +7 (812) 494-83-38; +7 (81362) 78-702 Fax: +7 (81362) 77-666; +7 (81362) 78-707E-mail: [email protected]: www.nssz.ru

NEVSKYS H I P Y A R D

E V E R Y S H I P M A T T E R S

NevSky_FP_DPS.indd 3 31/05/2013 15:19WB Autumn 2013 book.indb 58 05/08/2013 15:12

Innovation


shipowners, charterers, ship builders and eco-technology providers such as Jotun.”

Svend Søyland, senior advisor with the Bellona Foundation, said that identifying overlaps between cost savings and reduced greenhouse gas emissions makes sense.

“It is our firm belief that a transparent and reliable standard will enable a level playing field spurring innovation among all stakeholders,” he said.

Going green

Many green technologies will be showcased at this year’s Europort trade fair in November. GE Marine, for example, will be presenting the 12V250 Marine Diesel Engine. The company recently confirmed the 12V250 as its first marine engine meeting both US Environmental Protection Agency Tier 4i and IMo Tier III in-engine emissions requirements without the need for exhaust gas after-treatment. GE is now able to offer its L250 and V250 medium speed marine diesel engines (1,550–4,650kw) without a Selective Catalytic reduction system.

“This new technology allows the marine industry to meet the upcoming emission compliance requirements

and reduce both capital and operating expenditures,” said John Manison, General Manager of GE Marine.

In addition to meeting emissions compliance, the GE 12V250 MDC engine has increased power over the IMo Tier II model. The engine’s new two-stage turbo charging also offers a faster response time.

GE’s L250 engines rated at less than 2,000kw will meet EPA Tier 3 emission levels ahead of schedule. Depending on duty cycle and application, the L250 engines have greater than 5% improved fuel consumption compared to Tier 2 standards. In addition, the 8L250 and 12/16V250 engines rated at more than 2,000kw will meet EPA standard path Tier 4i (interim) requirements in 2014.

reality check

Europort visitors may also wish to quiz MAN Diesel & Turbocharging about the latest addition to its four-stroke range, L35/44DF, which is available in both dual-fuel and gas-only versions. The DF version complies with IMo Tier II emission limits in diesel mode and IMo Tier III limits in gas operation. In line

with coming choices facing shipowners on fuel use, MAN Diesel & Turbo made a high degree of fuel flexibility (hFo, MDo, MGo and natural gas) a primary objective in developing this engine.

MAN Diesel & Turbo says that L35/44DF engine is a significant step in marine engine technology – not least because its attributes can be retrofitted to engines already in service – and specifically to the popular 32/44Cr series Tier II-compliant engines.

others vying for attention will include rolls-royce and ABB, the former of which has taken a lead in developing smaller gas-powered engines, while the latter’s Crane and Marine Business Unit has developed a complete suite of energy efficiency software to optimise fuel use and other energy consumers onboard ship.

ABB Turbocharging will be showing off its new A200-L generation single-stage turbochargers for low-speed two-stroke engines, which the company says represent a “quantum leap” in the technological development. The A200-L has up to 30% additional volume flow, which to date is fully the equivalent to one size smaller in a series of turbochargers.

This year’s Europort trade fair will featureadvances in eco-friendly shipping technology

Nevsky Shipyard, LLCFabrichny Ostrov 2, Schliesselburg,Leningrad Region, RUSSIA 187320Phone: +7 (812) 494-83-38; +7 (81362) 78-702 Fax: +7 (81362) 77-666; +7 (81362) 78-707E-mail: [email protected]: www.nssz.ru

NEVSKYS H I P Y A R D

E V E R Y S H I P M A T T E R S

NevSky_FP_DPS.indd 3 31/05/2013 15:19 WB Autumn 2013 book.indb 59 05/08/2013 15:12

Legal


A costly breakdown in communicationsNew York arbitrators get to the bottom of an off-spec bunker dispute

Maritime arbitrators in New York have found that charterers were responsible for loading o f f - s p e c i f i c a t i o n

bunkers in Ukraine and that their interests had been properly represented in consolidated arbitration proceedings to determine liability.

The dispute arose when Atlas Shipping AS sought to recover $434,965 from oldendorff Gmbh, as charterers of the bulk carrier Fomalhaut, for contaminated bunkers supplied by oldendorff while the vessel was performing under a time charter dated in 2007.

The vessel was performing under a string of NYPE charters between Sibaships Asia, as head owner, and Clipper Bulk Shipping. The charterers under each charter bore responsibility for supplying bunkers conforming to required standards.

while it was operating under a charter dated May 2007 between Atlas and oldendorff, the vessel was supplied with 550 MT of 380 cSt bunkers at Ilichevsk, Ukraine. Clipper claimed that the bunkers were off-spec and demanded arbitration with korea Line Corporation, to whom it had chartered the vessel in September 2006, and the same was effectively done down the charter chain to Atlas. Clipper sought to recover $350,680 for engine damage and tank cleaning, the cost of replacement

bunkers, loss of hire, bunkers consumed and associated expenses.

A consolidated arbitration was convened before Donald Szostak, klaus Mordhorst and Jack Berg in New York. oldendorff declined to attend, despite being served with a vouching-in notice explaining: “If you refuse to honour this demand, you will be precluded from objecting to the outcome of said arbitration proceedings … and Atlas will claim against you for any and all sums which it may be required to pay … in settlement of the consolidated arbitration …”.

The consolidated arbitration panel found that samples drawn at the vessel’s and bunker tanker’s manifolds were tested by the FoBAS laboratory and that its analysis report, received by the shipowner, indicated off-spec for reasons of water and Total Sediment Potential (TSP). Nevertheless, the vessel sailed and Clipper contended that it had no alternative but to start consuming the Ilichevsk bunkers while en route to Jeddah.

After receiving the test results, the owner instructed the vessel to cease using the Ilichevsk bunkers and thereafter stemmed 759 MT of 380 cSt bunkers at Jeddah. Clipper argued that the vessel experienced rPM reductions caused by leaking fuel pump relief valves or fuel pump suction/delivery valves. The contaminated bunkers were sampled again in Manila and Singapore,

and were subsequently offloaded at the latter port. The vessel was later dry docked at Zhoushan, China, for repairs.

The arbitrators found that the Ilichevsk fuel was off-spec as per the charter party standard. The charterer was therefore in breach of the charter and liable for Clipper’s damages. But it was also found that, as Clipper had failed to obtain prompt information regarding the sample analyses before it started consuming the Ilichevsk bunkers, it remained responsible for the resultant machinery damage. The arbitrators, noting that the vessel should have insisted on receiving the test results before it started consuming the bunkers, awarded Clipper $250,547 toward its claim of $350,680.

Subsequently, a further arbitration panel, comprising Manfred Arnold, Louis Sheinbaum and David Martowski (chairman), was convened to determine, among other things, whether oldendorff was timely and properly vouched into the previous, consolidated arbitration and if so, were its interests fully protected in that arbitration.

The arbitrators unanimously denied oldendorff’s challenge to Atlas’s right to demand arbitration. It was held that: “Vouching is a well-established and cost-effective means of avoiding the expense of duplicative litigation and the risk of inconsistent findings, particularly in disputes involving claims for indemnity.” Atlas, said the arbitrators, had timely and


Legal


properly vouched oldendorff into the consolidated arbitration proceedings.

The arbitrators found unanimously in favour of Atlas, noting, among other things, that 11 emails sent by Atlas’s P&I club to oldendorff’s P&I club had largely gone unanswered. It was indisputable that oldendorff had supplied the off-spec bunkers at Ilichevsk and had declined to respond to Atlas’s repeated requests for it to participate in the consolidated arbitration.

oldendorff contended that it should not be bound by the consolidated award and was therefore not liable to indemnify Atlas because of alleged prejudice. Specifically, it argued that the fault and breach of contract by the head owner and all charterers down the chain had prejudiced its ability to be indemnified by its bunker supplier.

oldendorff argued that delay down the chain in obtaining and disseminating the test results had compromised its efforts to obtain indemnity from the bunker supplier. But the arbitrators disagreed, finding that Atlas had fully and adequately protected oldendorff’s interests in the consolidated proceedings.

oldendorff correctly pointed out that bunker supply contracts normally contain very short periods within which notice of claim must be given to the

supplier – in this case, seven days – and that the delay between testing and notice of contamination was excessive. The panel, however, found that the delay in disseminating the test results was not the cause of any prejudice with respect to the bunker supplier’s responsibility and/or its obligation to indemnify oldendorff for debunkering, tank cleaning, rebunkering and associated damages for which Atlas was held liable.

There was no evidence that, in its negotiations, the bunker supplier ever raised any time-bar defence with oldendorff or indeed ever expressly refused to pay for the bunker contamination damages or costs. The arbitrators found that the alleged delay in the dissemination of the bunker test results had not been shown to have prejudiced oldendorff’s efforts to be indemnified by the bunker supplier.

The arbitrators noted that, contrary to Clause 54 of the charter, the bunker samples had been sent to FoBAS for analysis rather than to DNVP. The initial report of contamination indicated that the wrong test had been performed, which led to exchanges between all parties in the charter chain, including the bunker supplier, questioning the accuracy of the test results and the delay until the samples were re-tested, confirming that the initial findings were correct.

oldendorff contended that the samples had been sent to the wrong testing facility and that the delay and resultant alleged prejudice were not fully or adequately presented by Atlas at the consolidated arbitration hearing. The arbitrators disagreed, finding that the mis-direction of the samples and delayed dissemination of the contamination report had no bearing on the alleged prejudice to oldendorff’s right of recovery against the bunker supplier.

The arbitrators acknowledged that oldendorff had made strenuous, good-faith efforts to resolve the dispute by trying to negotiate a settlement between the bunker supplier and the head owner and/or Clipper. “had these discussions been successful,” they said, “this entire vale of tears could have been completely avoided. These efforts … never came to fruition apparently due to a breakdown in communications between those parties.”

It was concluded that oldendorff’s interests had been fully protected in all respects and that it was bound by the consolidated arbitration award. oldendorff was directed to pay Atlas the sum of $500,965, which included damages, interest, and legal and arbitration fees.Society of Maritime Arbitrators Inc Award

Service No. 4211, dated 28 June, 2013

Caaritime arbitrators in New York have foundthat charterers were responsible for loadingoff-specification bunkers in Ukraine


Equipment and services


Efficiency, lubes, scrubbers and LNGwe look at a special deal on efficiency advice, a free guide on the currently controversial subject of lubricants, an owner’s decision to fit abatement technology and dual fuel engines

BIMCo says it has arranged an exclusive package for its members to aid efficiency improvements within their operations.

The package, consisting of both a guide to efficiency technologies and the market and a two-day conference and workshop summit, has been put together by shipping research and events company Fathom, “in recognition of BIMCo’s on-going support”.

The publication, Fathom’s Ship Efficiency: The Guide 2nd Edition, critically examines all ship fuel and emissions saving technologies, profiles the companies providing them, and assesses the technologies’ viability. The guide contains full profiles and critiques for over 220 products, in over 60 technology categories, from more than 100 providers.

BIMCo’s Deputy Secretary-general Lars robert Pedersen will be co-chair for the two-day conference and workshop summit included in the package, Ship Efficiency: The Event, to be held 10-11 September during London International Shipping week.

Fathom says that the conference will include experts presenting information on topics spanning strategic planning and financing, to implementation and current viable solutions, and will also

host training workshops focused around key areas of efficiency optimisation.

Alison Jarabo, Director, Strategy at Fathom Shipping commented: “It is important to us to recognise the real contribution BIMCo has made to both The Guide and The Event. BIMCo work tirelessly on the issues that really matter to their members and provide them with quality information, advice and education. we are proud to have BIMCo as supporting partners and are delighted to make this information accessible to their members.”

Free guide

Meanwhile Fathom has launched a new, free publication series for the maritime industry with Fathom FOCUS: Choosing the Optimum Lubricant Solutions for Your Operation. The company says this is a practical guide that gives operators and managers crucial support in understanding how they can reduce vessel operating costs and improve lubrication performance.

Jarabo said: “owners and operators have told us that whilst our flagship publication, ‘Ship Efficiency: The Guide’ plays an absolutely vital role giving them insight in to the entire market of ship efficiency solutions,

there is still an information gap when it comes to even more detailed, practical guidance on specific issues.

“In response to this need,” she added, “this new publication series pinpoints exactly how to maximise efficiency and optimise operations in one specific area. The Fathom FoCUS guides are designed to address vital parts of vessel operation where efficiency gains can be made and educate the operators and managers on how to do this. These topics are perhaps not particularly sexy but are absolutely crucial to efficiency in ship operations.

“This new publication series ensures that owners, operators and managers can easily access this important information wherever they may be in the world.”

Going for scrubbers

Norwegian Cruise Line’s (NCL) two new Breakaway Plus class ships will be fitted with Green Tech Marine (GTM) scrubbers. The two new vessels will be built by Germany’s Meyer werft and delivered in 2015 and 2017.

GTM will provide five scrubbers per ship for the engines which range from 14.4 to 16.8Mw. This installation will be the largest scrubber plant in the world with a total engine power of 76.8Mw.

Pride of America was retrofitted with scrubbers in March


Equipment and services


“Norwegian Cruise Line has a history of innovation along with a commitment to utilising green technology whenever possible,” said kevin Sheehan, NCL’s Chief Executive. “Installing scrubbers from Green Tech Marine on our new Breakaway Plus vessels is a smart decision and one that will ensure these ships are as eco-friendly as possible.”

The GTM-r scrubbers are compact, making it possible for the new builds to avoid the loss of cabin space or other service areas. GTM uses one smaller scrubber for each engine instead of a large multi-inlet scrubber serving several, and the scrubber also replaces the silencer, which GTM says makes it very suitable for cruise ships.

The GTM-r scrubbers hold all necessary certificates to ensure these vessels are compliant with the 0.1% sulphur limit in Emission Control Areas (ECA) beginning in 2015.

GTM has previously delivered scrubbers to NCL’s Pride of America which operates from hawaii. The scrubbers were installed during the ship’s dry dock refit in March and are scheduled to be fully operational later this year.

Dual fuel

MAN Diesel & Turbo has secured the contract to supply the engines for six Chinese LNG carriers. The engine manufacturer said that the order for the MAN 51/60DF dual-fuel engines is a “significant development for both Chinese shipyards as well as the LNG carrier market”.

All of the engines are IMo Tier II-compliant in diesel mode and will have lower exhaust-gas emissions in gas mode than IMo Tier III stipulates – fuel-sharing mode will be applied to each unit.

The customer is a consortium formed by Sinopec kantons, MoL and Shanghai-based CSLNG, a China Shipping subsidiary.

Each new build will have a cargo capacity of 174,000 cu m and be DFDE-driven (dual-fuel diesel electrical), providing, MAN says, the customer with the optimum redundancy. The vessels will be the first large LNG carriers with a DFDE configuration built in China.

The vessels will be constructed at hudong-Zhonghua shipyard, Shanghai, at the Jiangnan Changxing

Production Line No.1, now the responsibility of hudong, following parent group China State Shipbuilding Corporation’s (CSSC) re-organisation of production facilities.

when delivered, the ships will load LNG in Gladstone, Australia, for a number of Chinese import terminals – Qingdao, Beihai, Tianjin, Lianyungang and wenzhou. Steel cutting on the first ship will be in January 2014. The sixth ship will be delivered in the fourth quarter, 2017. MAN will be design and build the engines at its Augsburg works in southern Germany.

having a fuel sharing mode (FSM) capability means the dual-fuel engines can run on a mixture of fuel gas and fuel oil (MGo, MDo or hFo) at a certain ratio. All cylinders operate at the same fuel-sharing ratio simultaneously.

MAN Diesel & Turbo’s Erwin Boijmans, Sales Manager – Marine Medium Speed business unit, based in Augsburg said: “This order is yet another success for the 51/60DF’s fuel-sharing capability, a special feature and one of the reasons we have especially focused on LNG carrier applications with the 51/60DF unit.”

Barrels of lubricant ready for shipping from Lubmarine’s warehouse


Preview

IBIA

Annual C

onvention 20

13

– Hong K

ong


Focus on Asian growthhong kong will be hosting this year’s IBIA conference

The 2013 IBIA Annual Conference, to be held in hong kong this November, will examine whether Asian economic growth will be

strong enough to fuel a global recovery in bunker markets.

Sales of marine fuel oil have been weak worldwide due to slow economic growth, a sluggish shipping market, and more widespread slow-steaming by shipowners wishing to save fuel.

Taking place at the Sheraton hong kong hotel and Towers, during 5-7 November 2013, this a key event in the bunkering industry calendar will, as always, bring together traders, brokers and ship operators from around the world. The three-day event will be chaired by robin Meech, IBIA board member and founder of Marine and Energy Consulting.

IBIA chairman Simon Neo said: “The bunker industry is at a pivotal stage in its development. we face numerous challenges in the form of emissions regulations, abatement technologies, new fuels, compliant fuel availability, poor freight markets and continuing economic uncertainty. however, as an industry the convention is an opportunity for us to have our say in the development of new standards and work closely with our ship operating customers to meet their marine fuel requirements.”

key topics for discussion will include measures to reduce hong kong air pollution; the on-going problem of

short delivery; the role of education and how it can help grow the bunker markets and the outlook for Asian bunker growth. Speakers will include Arthur Bowring of the hong kong Shipowners Association, Chin Chin Ang of Maritime Port Authority Singapore, Mark Lewis from Facts Global Energy, and Lim Teck, chief executive of hong Lam Marine.

The convention will feature opportunities to interact, educate and inform, and debate the key issues affecting the industry. Cutting-edge technology will be used to gather delegates’ opinions on the discussions so that the IBIA and industry can be better informed and speak with an authoritative voice. This is especially key in arenas such as IMo and the regional forums, where we continue to contribute in shaping future legislation and regulations.

IBIA’s chief executive, Peter hall, said: “The annual IBIA convention is a way for the entire industry to meet, learn and discuss the latest innovations and efficiencies that are emerging in the industry, and arrive at a consensus about the way forward. The convention will not only attract shipowners, operators, traders and suppliers across Asia, but also from Europe, Africa and the Americas. IBIA is uniquely placed in having an international membership that covers every continent in the world, thereby representing the challenges and growing pains of the marine fuel supply industry.”

The convention will feature a gala dinner at the royal hong kong Yacht Club and lunch aboard the sailing ship Bounty, as well as breakfasts and a networking reception. Full details, including registration and sponsorship opportunities, can be found at ibia.net.

IBIA conference attendees will be able to sample some of the Hong Kong delights, in between discussing the industry’s future


Review

Istanbul Bunkering C

onference


View from the BosphorusThe Turkish Bunker Association delivered yet another highly successful conference

Some 180 delegates from 26 countries attended the sixth International Istanbul Bunker Conference hosted by the Turkish Bunker Association in

early June.A central theme that emerged

was the pace of change in the bunker industry. The president of the association Deniz Eraydin, of CYE Petrol, commented that is was likely that changes in the industry over the next 10 years would be greater than those of the past 100 years.

There were a number of ‘firsts’ this year with the ministries of Transportation, Maritime Affairs and Communication (UDhB), and the Energy Market regulatory Authority (EPDk) all contributing presentations.

There was also a strong International Bunker Association (IBIA) presence as held its board of directors meeting in Istanbul to coincide with the conference. All of this board’s members were able to participate in the conference.

The General Manager of Sea And Inland waters, Cemalettin Şevli commanded the full attention of delegates when he announced that laws implementing the revised MArPoL Annex VI in Turkey would come into effect on 1 July.

Eraydin noted that one of the most interesting presentations of the conference was made by Murat korçak, of the Directorate General of Sea and Inland waters. In his speech, korçak announced a “twinning

Past chairman, Nigel Draffin, answers questions

Istabul’s Four Seasons hotel madea stunning venue for the conference


Review

Istanbul B

unkering Conference


project”, carried out by EU together with the Spanish authorities, which will lead to the Turkish Straits and the Sea of Marmara becoming an Emissions Control Area (ECA). Mr Eraydin says that the idea of a Turkish ECA has caused unease and confusion among many members, but Mr korçak words and the approach the ministry were taking were welcomed by delegates.

korçak said: “we will exchange information with private sector representatives in September 2013. we intend to formalise the outlines of the Turkish ECA in March 2014.” A proposal for an ECA could be submitted for IMo approval in 2015 after final touches.

The conference, held at Istanbul’s Four Seasons hotel, covered a lot of ground and as conference chairman, and IBIA board member, Mustafa Muhtaroğlu commented, provided members with a lot of new information.

Amongst the revelations were official EPDk figures showing a total Turkish market of 2.1m tonnes. Mr Muhtaroğlu noted that this was probably the first time these figures had been made public.

he also pointed to the wide range of topics covered. IBIA’s newly appointed vice-chairman Jens Maul Jørgensen, director of bunker and risk management at oldendorff Carriers, gave an in-depth analysis bunker purchasing.

Muhtaroğlu, who had chaired four of the five previous Istanbul conferences, added: “we also had very good speakers on credit, risk management, shipping markets, Turkish ports, regulations and LNG issues. The social side was also memorable with highly enjoyable lunches, a boat trip, and dinner on the Bosphorus. And, of course, the last day's traditional well-organised closing party was unforgettable.”

From an IBIA perspective, its immediate past chairman, Nigel Draffin, noted: “once again the TBA produced a conference which combined interesting topics, a stunning venue, a very lively social programme and plenty of food for thought. The main sessions showed us just how complex the control and management of the Turkish Straights are for both vessels and the port authority.

“we also heard about the challenges for the local suppliers to increase sales to vessels in transit. And of course the most significant news being the announcement that the Turkish government is planning to embark on the procedures to prepare for and, by 2015, submit a proposal to IMo for an ECA from the bottom of the Dardanelles to the top of the Bosphorus.”

he concluded: “Away from the conference hall, we saw the sights, we partied hard and we met old friends and made new ones. I can’t wait to return.”

Past chairman, Nigel Draffin, answers questions

Istabul’s Four Seasons hotel madea stunning venue for the conference

CE, Peter Hall, asks a question

Some of the IBIA contingent The conference wasn’t all work – it was also about partying hard


Book R

eview

Ready for LNG?Nigel Draffin's new book is likely to become a must-read for all involved in the bunker industry – not just those actually involved in LNG bunkering

Readers of World Bunkering over the past couple of years can hardly have failed to notice the speed at which LNG bunkering has turned from proposals to

reality – albeit at a very early stage.Liquefied natural gas is poised

to become a viable and widely used alternative to conventional marine fuels. As port authorities and shipowners work together on the creation of bunkering infrastructures, and stringent environmental regulations limit the use of high sulphur fuels, there is a clear global impetus for making the switch to LNG.

In An Introduction to LNG Bunkering industry expert, and immediate past president of the IBIA, Nigel Draffin answers the key questions about LNG bunker fuel in his usual informative and lucid style. he looks at the properties of methane, gas-only and dual-fuel engines, tank design, fuel and safety systems, as well as on-board and onshore storage and safety issues. Potential problem areas in the use of LNG, such as weathering, sloshing and methane slip, are sensibly and clearly analysed in this useful guide, published by Petrospot.

Draffin takes a close and informed look at bunkering procedures, including delivery methods, transfer equipment, connections, and loading operations. he also reviews the ongoing work of maritime organisations, such as the International Maritime organization (IMo), in codifying LNG bunkering operations.

he looks at the current LNG-fuelled fleet and outlines future trends in

the use of LNG-fuelled vessels. Most importantly, as the price of conventional marine fuels remains at high levels, he addresses the complex issue of pricing LNG as a bunker fuel.

As more LNG-fuelled vessels come into service and the number of dual-fuel engines ordered with the major manufacturers grows it is easy to assume it is given that LNG will be a major, if not the main, marine fuel within a few years.

Draffin does not fall into that trap and has invited Mogens Schrøder Bech of the Danish Maritime Authority to write an introduction that highlights the many uncertainties surrounding LNG bunkering.

Bech points out that, from 1 January 2015, shipping will be faced with a requirement for a 0.1% sulphur content in fuel in some sea areas, such as Northern Europe, the US and Canada, whereas international shipping will be required to meet a 0.5% limit from 2020 or 2025, if lower sulphur fuel is not available in sufficient quantities. At the same time, lower emissions of nitrogen oxides will be required in some sea areas from 2016.

So, he says, “An obvious answer to these demands is to use LNG as a ship’s fuel. But the answer is not easy as there are other fuel options and new ones will emerge from laboratories in the future.”

Nevertheless, Bech says: “The use of LNG as a ship’s fuel is supported by the fact that LNG production facilities are in place to meet the global demand and that efficient logistical import terminal systems are serving hinterland gas grids. Furthermore, natural gas reserves seem

abundant and new production facilities are being planned and constructed.”

“And as regards price, a spread has developed between oil-based fuels and LNG. Two years ago, ship owners looked for the price of LNG to be pegged to oil and they were reluctant to take advantage of a possible upside from such a price spread. Today, however, many ship owners are seeking to take advantage of this situation.”

he concludes by saying: “LNG is a new fuel for shipping and, in its early days, its use will create uncertainties for regulatory authorities as well as for the wider public.”

That is where Draffin’s concise and easy-to-read book comes in. There is a need for a standard reference for both shipowners and port authorities as they have to make decisions regarding LNG.

It is unlikely to be too long, though, before he has to write a second edition, such is the pace of developments.

Nigel Draffin

before he has to write a second edition, such is the pace of developments.

Nigel Draffin



Book R

eview


After nearly decade a widely used and respected industry guide has been updated. In their preface to Bunkers: An Analysis of the Technical

and Environmental Issues, just published by Petrospot, its authors, well-known bunker industry figures Chris Fisher and robin Meech, provide a potted history of this standard reference.

In 1985, Chris Fisher and Stephen hodge compiled Fisher and Hodge on Bunkers. This was the first book dedicated to the practical aspects of fuelling merchant vessels.

The book was revised and updated in 1994 and published as Bunkers: An Analysis of the Practical, Technical and Legal Issues. Chris was joined by a new co-author, Jonathan Lux, who contributed the legal section. Their book was updated and published as a third edition in 2004.

This new, fourth edition, does not include a legal section, mainly because, the authors explain, “the subject was covered in depth in the last edition and little needs to be added”.

In this edition, which focuses on the practical and technical aspects of bunkering ships, Fisher has been joined by co-author robin Meech, who has compiled the topical and important sections on the environment, markets and future marine and abatement technologies.

Clearly some technology has not changed since 2004, such as refining and basic fuel handling and treatment, and

some test methods. For completeness, these fundamentals have been included in this edition, along with the many changes and new developments in fuel specifications, environmental matters, contaminants, testing technology and quantity determination.

More stringent environmental regulations, price volatility and the dramatic slow-down in world demand for goods moved by ship has occurred while there has been an unprecedented increase in the world fleet, and this new edition comprehensively covers the cost implications of all these factors.

The authors say that they hope that, with a better understanding of the complex issues involved with bunkering, the number of disputes and claims can be reduced or handled in a more efficient and professional manner. The market and environmental sections should be of interest to the bunker supply industry, shipowners and charterers, especially those involved with planning and ship design and future operations.

Fisher and Meech say that the content of their book has been selected on the basis that they will be of value to a wide audience, including

marine engineering students, seagoing engineers, technical managers, members of the legal profession, insurers, owners and charterers of ships, fuel suppliers, environmentalists, abatement and marine technologists as well as those involved with surveying, inspection and testing of marine fuels.

Perhaps bravely, Fisher and Meech give a useful insight into what the bunker industry may be like in a few years time. They concede that “predicting the future is a risky business” but nevertheless suggest the likely possibilities based upon the evaluation of current information and the use of a number of more probable scenarios. This book discusses the future uses of different types of fuel, their availability and prices, how regulations will change and how laboratories will analyse this changing mix.

As with the earlier editions, this book will be of value to both new entrants and veterans in the bunkering business.

Catching upA key reference work on bunkers has been completely updated to reflect the latest technical, regulatory and environmental changes in the marine fuel sector

Autumn 2013 69Autumn 2013 69

include a legal section, mainly because, the authors explain, “the subject was covered in depth in the last edition and

In this edition, which focuses on the practical and technical aspects of bunkering ships, Fisher has been joined by co-author robin Meech, who has compiled the topical and important sections on the environment, markets and future marine and abatement technologies.

Clearly some technology has not changed since 2004, such as refining and basic fuel handling and treatment, and

charterers, especially those involved with planning and ship design and future operations.

Fisher and Meech say that the content of their book has been selected on the basis that they will be of value to a wide audience, including

and veterans in the bunkering business.

Autumn 2013 69

and veterans in the bunkering business.

Robin Meech

Chris Fisher


Com

pany news


yugbunkerServiceWith its own storage and loading terminals and 13 bunkering barges, YugBunkerService is one of the leading fuel providers in southern Russia

YugBunkerService is a rapidly devel-oping group of companies provid-ing bunker services at the ports of the Black and Azov sea, and at the

number of internal and river ports in russia.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 17 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 13 vessels with deadweight ranging from 200 to 5,700 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 mutually 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.

YugBunkerService is a member of the russian Association of Marine and river Bunker Suppliers, and of the International Bunker Industry Association.

recently we expanded the number of ports that we service at and currently we are operating bunker deliveries at the ports of rostov-on-Don, Azov, Taganrog, Yeisk, kavkaz, Temryuk, Taman, Saratov, Syzran, Samara, Volgograd and Astrakhan.

key information

• offices in rostov-on-Don, Taganrog, Yeisk and the port of kavkaz

• Fleet of 13 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-DonTel: +7 (863) 242-44-86

+7 (863) 242-44-87+7 (863) 242-44-88


yeiskTel: +7 (86132) 2-60-64


Port kavkazTel: + 7 (86148) 4-43-47

E-mail: [email protected]: www.ybunker.com


Com

pany news


Nevsky Shipyard, LLcNevsky Shipyard is one of the most technologically advanced shipyards in north-west Russia and is in high demand with customers

Nevsky Shipyard is currently carry-ing out two important projects.

The first involves multi-purpose salvage vessels, project

MPSV07. Nevsky is building four vessels ordered by the Federal Agency for Marine and river Transport of russia, which will be used by the State Marine Pollution Control, Salvage and rescue Service of the russian Federation (Gosmorspassluzhba).

The vessels are multi-functional, which makes them unique in being able to perform the following functions: search and assistance to vessels in distress; search, rescue and evacuation of people; refloating and towing damaged vessels; fire fighting on vessels and fuel burning on water; oil spills response; deep-water diving operations at a depth of 300m; investigation of sea bottom and damaged objects to a depth of 1000m.

Ship’s class: km ⍟ Arc5 [1] AuT1-IcS

ombo FF3wS DyNPoS-2 EPP Salvage ship

The MPSV07 lead project vessel Spasatel karev was delivered at the end of 2012. In July 2013 Delivery-Acceptance act for the second multipurpose salvage vessel of MPSV07 project Spasatel kavdejkin was signed. The third one, Spasatel Zaborschikov, has been launched and fitting works are being carried out. The fourth vessel is under construction.

This June, Spasatel karev, which has oil products spill-response equipment (board oil gathering creepers, floating booms, skimmers and so on), took part in international training project for oil spills response: Balex Delta 2013.

The training was carried out on the way to the port of warnemünde, Germany.

According to the training script the wrecking of the trawler Seewolf and the

vessel Spiekeroog resulted in a 2,500 cubic meters black oil spill of IFo-180 in the sea area. About 25 vessels from nine European countries, including the russian Federation, which was represented by the vessel Spasatel karev, participated in the cleaning-up operations. The vessel Spasatel karev sparked keen interest among the participants and observers.

At the beginning of July 2013, Spasatel karev was successfully demonstrated at the International Maritime Defense Show in Saint-Petersburg, one of the leading exhibitions in the field of shipbuilding and naval armaments.

Nevsky's second project, rSD49, is for the North-western Shipping Company (russia) and involves the construction of 10 multi-purpose dry-cargo vessels of river-sea 7150 tons dwt. The vessels can carry general and bulk cargoes, including grain, timber, large and heavyweight goods and hazardous materials of different classes in the Caspian Sea, as well as in all the seas of the European region, including voyages around Europe and on the Irish Sea in winter.

The main feature of rSD49 project vessels is the existence of a large middle hold, 52m in length, which makes it possible to transport oversize cargoes on one-way voyages between Europe and the Caspian Sea.

Ship’s class: km ⍟ Ice2 r2 AuT1-c

Two vessels, Neva-Leader 1 and Neva-Leader 2, were successfully delivered to the North-western Shipping Company at the end of 2012 and undertook their maiden voyages to Europe. In May 2013, the third vessel was delivered to the customer and then set off on her maiden voyage to Europe. From November 2012 to July, 18th, 2013 three dry-cargo vessels transported 170,000 tons of cargoes.

In July this year, the customer took delivery of the fourth vessel. Some days after the delivery, Neva-Leader 4 set off on her maiden voyage. The remaining six dry-cargoes are currently under construction.

one of Nevsky's most successful projects was the construction of two bunker barges for coastal trade of 850 ton dwt, for Norwegian company haugland Tankers AS. These vessels are intended for the transportation of clean and dirty oil products with a flash point above 60°. Both vessels are now successfully operating in the harbours of oslo and Bergen.

The royal Institution of Naval Architects entered the head vessel Neva-Leader 1 of rSD49 project in its list of Significant Ships of 2012. The vessel was included in the 50 ships of different purposes, types and sizes (from sea cruise liners to supertankers), selected by the world society of naval architects. ⏏

For more information, contact: Nevsky Shipyard, LLc

Fabrichny ostrov 2, Schliesselburg,Leningrad region, ruSSIA 187320

Phone: +7 (812) 494-83-38; +7 (81362) 78-702

Fax: +7 (81362) 77-666; +7 (81362) 78-707

E-mail: [email protected]: www.nssz.ru


Com

pany news


cyE Petrol Tic Ltd ŞtiOne of the foundation stones of Turkish bunker industry, CYE Petrol is celebrating the 25th year since it was founded

CYE Petrol Tic Ltd Şti, founded in 1988, is a company that breaks many grounds by keeping pace with the changes and developments in the bunkering industry, and for which credibility is its biggest capital.

A family-owned company

Cahit Yalçin Eraydin, founder of the company, was serving as the assistant general manager at TUPrAS. For Mr Eraydin, it was a radical decision to enter the free oil trade during late 80s, but his rich experience and knowledge in the oil industry ensured he could make a powerful entry into the bunker industry. Since then, the company's momentum has always been increasing.

The next generation takes over

while Mr Eraydin has always been active as the owner of CYE Petrol, his younger son Mr A. Deniz Eraydin was involved in the business from its earliest stages. he joined the company just after his graduation from Coventry University, Uk, in 1995. he began working at the company as a bunker trader, followed by being an operation and sales manager. In 2006 he established The Bunker Barge Fleet for CYE Petrol, and has been serving as general manager of CYE Petrol since 2009.

An experienced, quality-oriented supplier

CYE Petrol is a physical bunker supplier of MGo DMA and IFo grade fuel oil. Its bunker terminal is conveniently located in Gulf of Izmit at Poliport for supplies in Istanbul roads. All grades of

high-quality marine products are prepared with computerized line blending facilities.

CYE Petrol, as a bunker-only, family-owned company, is the most qualified physical bunker supplier in Turkey, with over 45,000 bunker supplies in Istanbul. Bunker deliveries are professionally managed by a bunker barge fleet under CYE Petrol’s control.

CYE Petrol is a supplier which is highly quality oriented. on the operation side, the company is:

• outsourcing all of its services from the best providers.• Storing bunker product in one of the best petro-chemical”

terminals in Turkey: PoLIPorT.• Using accredited international independent surveyors at critical

points, including discharging cargoes and loading bunker barges.• Investing in bunker barges, when barge owners fail to deliver

satisfying service quality.• Ensuring russian and English-speaking surveyors are on board

during bunker deliveries.

on the product side the company is:• Supplying only ISo 8217:2010 specifications guaranteed for all

products (gasoil 0.1, hSFo – all grades from 20 to 380 cst)• Continuing to apply MArPoL 73/78 ANNEX VI regulations

for bunker delivery procedures and documentations, as it has since 2005.

• Using continuous dripping method for sampling.

Does not hesitate to be the first one:

CYE Petrol has always been the pioneer for applying many practices for better quality bunker deliveries in Turkey.

During 2004 CYE Petrol became the first company to use Emerson mass meters with a computerized line blending facility. That was followed by using accredited international independent surveyors for all bunker barge loadings.

cyE Petrol’s bunker barge fleet

The company's bunker barge fleet is capable of supplying 40,000MT per month, with qualified personnel. All barges have sufficient equipment to supply in all Turkish ports.

bunker barge names and capacities are as follows:m/T bEbEk-E 3,300 dwtm/T moDA-E 1,300 dwtm/T FLoryA-E 1,100 dwtm/T TArAbyA-E 650 dwt


Com

pany news


All set for LSFo

In January 2011, CYE Petrol was the first physical bunker supplier to supply low sulphur fuel oil in Turkey. The purpose was to solve any contamination problems in the terminal, bunker barges and pipeline systems. The company is aware that supplying LSFo is not about buying, storing and selling: it is about assembling a system to supply a high-quality product. Now that has been successfully accomplished, CYE Petrol is ready for when there is a market demand and cargo supply flow forms for LSFo.

Getting ready for the Turkish EcA

we are witnessing the creation of demand for new bunkering as the approaching global cap on low sulphur bunker fuel and the increasing number of ECAs is leading to LNG becoming increasingly popular as bunker fuel. During the sixth International Istanbul Bunker Conference, held in June, officials announced preparations for a Turkish ECA, which will include the Turkish Straits and the Sea of Marmara.

Despite the global economic crisis, CYE Petrol has reserved finance for operational investments related to this.

Investing for younger Green bunker barge Fleet:

CYE Petrol has always insisted on high standards, not only for the products it supplies, but the quality of service it provides. This understanding ensures CYE Petrol is a disciplined company which cares about safety, environment and education.

Despite becoming obligatory in Turkey in June 2013, CYE Petrol has applied the ISM Code to all bunker barges under its control since 2006, ensuring necessary safety and environmental precautions are taken during loading and bunker supply operations.

In 2012, the company invested in a new build double-hull bunker barges, forming a team to design and construct the vessels. This team has given priority to emission control restrictions while making decisions about equipment.

CYE Petrol is very much aware that it is running bunker supply operations in highly environmentally sensitive area. The Istanbul Straits is surrounded by a population of 15 million, and around 55,000 vessels pass The Strait each year. The company is behaving responsibly, doing her best to respect the environment.

In May 2013 Mr C. Yalcin Eraydin made the first starting weld of the first in a series of green bunker barges for a physical bunker supplier in Turkey. This first new build will be the 1,650dwt M/T BEYkoZ-E which is planned to be operational in March 2014. She will be followed by the 1,650 dwt, M/T kALAMIS-E which is planned to be operational on June 2014.

CYE Petrol has taken many similar steps in the last 20 years. This forced rival companies to compete in price and quality as well. All of these innovative steps made the foundation for Istanbul Port to become a trouble-free bunker supply port in the area.

representing and supporting Turkish bunker industry

CYE Petrol's CEo, Mr A. Deniz ErAYDIN, is active in institutions representing the Turkish bunker industry. In 2001 he was an establishing board member of the Turkish Bunker Association (TBA), and served as its president during 2006-2007, and was re-elected as the TBA's president for 2011 until 2014.

Mr Eraydin now also serves as Elected Member of Assembly in the Turkish Chamber of Shipping, after receiving strong support from the majority of physical bunker suppliers in Turkey.

CYE Petrol has always been co-operated with competitors regarding improvements, research, developments and initiatives for the industry, convincing market players to do anything for the Turkish bunker industry. This approach is welcomed by many physical bunker suppliers who share similar ideals.

CYE Petrol holds the Physical Bunker Supplier License of EPDk (Energy Market regulatory Authority) no:Ihr/482-4/11098 which permits her to be in the same business until 4 May 2020.

For more information, contact:cyE PETroL TIc LTD STI

bAGDAT cAD No:91ISTANbuL/TurkEy

Tel: +90 216 345 4700 Fax: +90 216 330 5068

E-mail: [email protected] website:www.cyepetrol.com.tr


Com

pany news


cEPSA The energy group's marine division is going from strength to strength

CEPSA is a 100% IPIC energy group, engaged in activities that span the entire oil value chain: exploration and production of oil and gas;

refining, transportation and marketing of petroleum products and natural gas; biofuels; and electric power cogeneration and sales.

CEPSA has a world-class petrochemicals division that is tightly integrated into its oil refining segment, manufacturing and selling raw materials for the production of high value-added components chiefly used in making new-generation plastics and biodegradable detergents. with its workforce of nearly 12,000, CEPSA is not only a major player in Spain, but is also broadening its global portfolio of operations in countries such as Algeria, Brazil, Canada, Colombia, Panama, Peru and Portugal, selling its products around the world.

CEPSA's marine fuels activity began in 1930, supplying marine fuel for vessels produced in the Tenerife refinery. Today, its activity in this area is focused on supplying fuel oil for vessels in most of Spain’s ports (specially the Canary Islands, Strait of Gibraltar, Barcelona and huelva), and in Panama and Portugal, complying with rigorous environmental standards and EU requirements.

CEPSA’s wide range of marine fuels is supplied by pipe, trucks or by an efficient barge service, following the strictest quality standards. In total, CEPSA operates 17 barges distributed in all its ports and terminals.

Apart from maintaining a leadership position in these markets, CEPSA looks for opportunities to expand its international bunkering activities at ports across the world, offering our clients a perfect combination of expertise and enthusiasm.

In order to satisfy the needs of its growing customer base, CEPSA’s supply terminals operate ceaselessly around the clock, seven days a week, all year long. with this level of service, the company has earned a reputation as a fast, effective and reliable company in the supply of fuels to vessels.

cEPSA IN THE mEDITErrANEAN

barcelona

The port of Barcelona is a benchmark in the Euromed region, with over 30 terminals able to transport all kinds of products. The main traffic comprises containerised cargo and high-value goods, such as consumer goods, electronic goods and motor vehicles, and cruises.

In 2011, the port handled a total throughput of 43 million tons carried by more than eight thousand vessels. This included over two million TEUs of containerised cargo, 630.1 thousand automobiles and more than 3.8 million passengers.

CEPSA is the main supplier in this port. From an operational point of view, most of the volume that CEPSA supplies is managed by barge, although we can also supply by truck. CEPSA has 50,000m storage, with all grades of high-quality marine fuels (hSFo and LSFo from 380 cts to 30 cts, and MGo 0.10%).

Algeciras

The port of Algeciras Bay is located in an exceptional geo-strategic point, on the crossroads of the world’s main cargo shipping lanes, in a magnificent shelter that the configuration of the Bay of Algeciras provides.

The port is renowned internationally as an operational and logistics centre for transshipment, leading the way in the Mediterranean in container traffic. Bulk, tanker and ro-ro traffic are also important in this port, thanks to its strategic situation, enabling the import and export of all types of products between Europe, Asia, America and Africa.

The world's biggest tankers (up to 320,000 dwt) can anchor at the CEPSA refinery's 1,600m jetty with a depth alongside from six to 20m for loading and unloading petroleum and petroleum products.

CEPSA provides four barges in this port, where there are wide anchorage areas – one of which has no port dues for bunker-only operations. Since July 2011, CEPSA has enlarged its storage capacity in the port up to 310.000m3 and increasing to six the number of loading points for its seven barges in the Bay.

recently, one of CEPSA’s barges under charter contract was selected by the European Maritime Safety Agency (EMSA) to protect the environment. It is equipped with radar to detect residues, defences to fight against spills and systems to pump and store them. By exclusively chartering this tanker, CEPSA is not only contributing to the protection of the environment, but making it a total priority.

Products supplied by CEPSA at this port are fuels of different specifications (hSFo and LSFo from 380 to 30 cts, MGo 0.10%, MDo and, most recently, rMk 500).

Gibraltar

Just like Algeciras, Gibraltar is situated at an extraordinary geo-strategic point, at the crossroads of world trade. Gibraltar is a key service point for the global shipping industry, for crew changes, supply provisions and so on, as well as a well-known bunkering station.

CEPSA Maring Fuels (CMF) supplies in Gibraltar offer the best flexibility to its customers, using a minimum of three barges in the port. In order to guarantee safety operations and best-quality products, it loads directly from CEPSA shore tanks at Algeciras Port.

ceuta

Geographically located in the south part of the Strait of Gibraltar, Ceuta’s port is a traditional supplier of marine fuels. Together with Algeciras and Gibraltar, the port forms an important logistic hub.

Ceuta port is immersed in a great infrastructure expansion, represented by two main elements, a new logistic hub for vehicles and new areas for provisioning facilities, in 120,000m2. This expansion means new developments in near future and growth of resources for bunkering. Nowadays, CMF has storage of 78,000m of all kind of products (hSFo and LSFo from 380 to 30 cts, MGo 0.10%).

Huelva

The port of huelva is the first port at the entrance of the Mediterranean and is open to the Atlantic ocean. This geographical location, just 80 miles from Gibraltar – as well as being the home of metallurgic, mineral and petrochemical industries – has led this port to become a reference point for the bunkering market.

This area has also experienced huge industrial growth in the past few years, in the chemical, power and petrochemical sectors. CEPSA has been one of the main instigators of this, due to the significant upgrade of its refinery, which doubled its distillation capacity in 2010.

At the moment, CEPSA is the only marine fuels supplier in this port. It has 56,000m storage, connected directly to the refinery with hSFo and LSFo from 380 cts to 30 cts, MGo 0.10%. It also operates a barge for bunkering operations.

CEPSA has brought more flexibility and time saving, as well as a better service to its clients, by making of the Port of huelva an efficient point of reference for bunkers.


Com

pany news


cEPSA in the canary Islands

The strategic location of the Canary Islands, at a crossroads between Africa, Europe and the Americas, is a key factor in the role of the ports of Tenerife and Las Palmas as a logistics centre for the three continents.

CEPSA continues investing in the area, with one clear example being the purchase of Chevron in the Canary Islands. Through this operation, CEPSA, with a presence in the Canaries for over 80 years, has demonstrated its commitment to the security of supply, maintaining the offer of energy in the islands and improving its competitiveness.

This purchase signifies for CEPSA the acquisition of a storage terminal for petroleum products in the port of Las Palmas de Gran Canaria, which will mean larger capacity, a wider offer and more flexible services to CEPSA’s customers in the future.

Las Palmas

This port combines a container activity, a specialised station for international

fishing fleets, a passenger stop both for cruises and ferries and a long tradition of competence in provisions, ship repair and bunkering services.

CEPSA has a large presence in the port, with two modern barges, as well as trucks and pipe supplies.

Also, CEPSA has 154,000m of storage with all types of grades (hSFo and LSFo from 380 to 30 cts, MGo 0.10% and MDo).

Tenerife

This port offers a logistics platform that provides service to several industrial activities, one of which is CEPSA’s refinery.

CEPSA has been operating as a bunker supplier since the refinery was built back in 1930, providing both Tenerife and Las Palmas with marine fuels of the highest quality.

In Tenerife, CEPSA has two barges and 75,000m storage for all ranges of bunker products (hSFo and LSFo from 380 to 30 cts, MGo 0.10%, MDo and, most recently, rMk 500).

cEPSA in Panama

CEPSA started up in business in Panama in 1998.

This strategic development at one of the busiest maritime traffic areas, the Panama Channel, has largely contributed to CEPSA’s success.

The country’s ideal location and infrastructure generates the transit of 14,000 vessels every year and will be increased in the near future due to the channel expansion.

balboa

At this port situated at the Pacific side of the channel, CEPSA has two double hull barges and has storage at Tabogilla Island, where it holds 97,000 m3 of marine products (hSFo and LSFo from 380 to 30 cts, MGo 0,10%). It can also supply by truck and pipe.

cristobal

Located at the Atlantic side of Panama’s channel, the company manages one double hull barge and storage of 16,000 m3 (hSFo and MGo).

New Services As from the first week of August, CEPSA strengthens its presence in Northwest of Spain, expanding activities at the Ports of Ferrol and La Coruña. Service will be provided by truck and by a double-hull barge of 3.000 m3, selected by EMSA (European Maritime Safety Agency) to protect the environment along the Cantabrian Sea.

Caption For more information, please con-tact: [email protected]


Com

pany news



Saint Petersburg hosted the VI All-russian Forum on "The current state and prospects of development of the russian market of bunkering

services" back in June this year. The forum was organised by self-regulated organisation the russian Association of Marine and river Bunker Suppliers.

President of Tranzit-DV Group Igor Alexandrovich Polchenko took part in one of the sessions, giving a presentation on "The establishment of a bunkering centre in the Far East". Participation in the forum enabled Polchenko to present the project to the business community and government officials.

Strong support

The idea of establishing an international bunkering hub in the Far East has found strong support among commercial organisations, whose work is connected with this geographical area, as well as the government officials.

The idea of organising a bunkering hub in the Primorsky region first originated in September 2012. It was announced at a field session of the Council of the Federal Marine and river Transport Agency in Vladivostok. After that, there were several

events where the project of a bunkering hub was presented in more detail: the Sixth International Conference Argus “oil Products Market 2012” in Moscow; the meeting of the interdepartmental working group of the Ministry of Transport and the Federal Customs Service of russia in the krasnodar region; and, in February 2013, the 74th meeting of the Business Club "Dialogues" was held. Each of these events was a more confident step towards the realisation of the project.

Far East development

At the meeting of the Business Club "Dialogues", the business community of the Far Eastern Federal District and the Asia-Pacific countries discussed the theme "Development of ports and logistics in the Far East."

The meeting was attended by deputies of the Duma state, plus representatives of the Primorsky region's administration and Vladivostok city and companies whose activities are directly related to the port industry sector.

As a result of the meeting, a resolution was formed with specific proposals that would change the situation at legislative level.

Forum attendees

The VI All-russian Forum "The current state and prospects of development of the russian market of bunkering services" was attended by representatives of companies such as: world Fuel Services Europe Ltd; Marine Bunker Exchange (MABUX) AB; world Fuel Services Europe Ltd; ow Bunker & Trading A/S; Argus Media; rN-Bunker LLC; Lukoil-Bunker LLC; Gazprom Gazenergoset JSC; Tranzit-DV Group and many others – in total about 200 top managers and executives of major companies involved in bunkering and related services. ⏏

Tranzit-DvA smooth bunkering operation is a given with Tranzit-DV

Igor Polchenko, president, Tranzit-DV

For more information, contact:13 uborevicha Street, vladivostok, 690091,

russiaTel: +7 (423) 249-11-99

Fax: +7 (423) 248-11-28E-mail: [email protected]

website: www.eng.tranzitdv.ru


Com

pany news


The Baltic Bunkering Company was founded in August 1995. During these 17 years of trading the com-pany has succeeded in creating a

reliable and high-quality bunkering service and is now one of the leading players in the St Petersburg bunker market.

Backed by a strategic alliance with Petersburg oil terminal (PoT) (www.oilterminal.ru), the biggest oil storage facility in north-west russia, as well as with the oil trading company PNT-GSM, Baltic Bunkering Company always has a good availability of the full range of high-quality fuel products.

we supply high-quality bunker fuels, including low sulphur products. All fuels are transshipped through PoT and are closely monitored and controlled in the PoT laboratory to ensure that they meet ISo8217:2010 (E). The process of quality control starts before we purchase the fuel. we only buy fuels from refineries that have consistently provided a quality product over a long period.

we have also introduced additional quality controls at the barge loading operations.

The Baltic Bunkering Company owns 2 bunker barges - Alana (3,500 mt) and Pegas (1,000 mt).

Quality is the cornerstone of our business and is guaranteed by the daily work of our skilled specialists. Baltic Bunkering Company is approved for ISo 9001 Quality System Certificate by Det Norske Veritas and is a member of International Bunker Industry Association (IBIA).

we also pay special attention to the ecological aspects of our bunkering activities. In our practice, we strictly follow and observe the existing standards and rules prescribed for petroleum transshipping operations and the prevention of leakage of oil products.

Among our competitive advantages are:• Full range of fuel oil products available,

from IFo-30 to IFo-600;• LSFo is always available;• All products conform with ISo 8217:2010

(E) plus the later amendments;• our own bunker fleet;

• Prompt delivery of all bunker services;• Fuel deliveries conform with regulations

14 (1) or (4) and 18 (1) of MArPoL 73/78, Annex VI, and Annex 1 and Annex 2 of SoLAS regulation VI/5-1 (MSDS). ⏏

baltic bunkering companyOne of the leading players in the St Petersburg bunker market

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

Galp Energia's professional bunkering team provides customers with high-quality fuels and services, as well as the highest safety standards in all its bunker activity. The company’s bunkering products fulfil the ISo 8217: 2010 specification in all grades. To help customers’ achieve environmental targets, the company can also supply low-sulphur fuels at several ports, with the port of Lisbon being the main port for low-sulphur fuel.

By optimising its logistics resources and storage capabilities, Galp Energia is able to provide high-quality services and products, including a wide variety of marine distillates. It is Portugal's main bunker supplier and provides bunker services using its two barges, with capacities of 5,800 tonnes and 3,000 tonnes each.

The 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 product 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 €1.4bn to upgrade and improve the efficiency of our refineries, representing €1bn for Sines and €0.4bn for Matosinhos. ⏏

Galp Energia GroupPortugal's premier supplier of fuel services

For more information, contact:Galp Energia SA

Tel: +3512 1724 0637/654Fax: +3512 1724 2957

E-mail: [email protected]: www.galpenergia.com

For more information, contact:48, Stachek Prospect, 198097 St

Petersburg russiaTel: +7 812 320 82 00

Fax: +7 812 325 45 33E-mail: [email protected]

website: www.bunkering.spb.ruSales department:

Tanya Sorokina, mobile: +7 921 905 70 63

E-mail: [email protected] Elster, mobile:

+7 921 965 87 83E-mail: [email protected]


Com

pany news


Nizhegorod bunker LtdGoing 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.” ⏏

Vladimir Nikiforov, general director,Nizhegorod Bunker


Based in Dubai, Aditya Fuels LLC, part of the Aditya Marine Group, offers fuels supply services to all ships visiting Dubai. The company sup-

plies 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 storage tankers are already finished. 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 environmental 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 that 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 bunkering needs. Furthermore, we always welcome new clients and are permanently ready to offer our services. ⏏

Aditya Fuels LLcA professional supplier of quality bunker fuel

NV RambabuManaging DirectorBunker Supplier

For more information, contact:Sasi Adapa

mobile:+44 7825152973E-mail: [email protected]

Ajman – uAEPost box no :18465

Tel: + 971 566325666/+971 559928666

Fax: +971 67649371E-mail: [email protected]

website:www.adioil.com

East cost India41-1-35, rangayyanaidu street

kakinada-533007, Indiamobile: 91 9848257582

Tel: +91 884 2366717/718E-mail: [email protected]: www.adioil.com

Nizhegorod bunker Ltd13/2, Ilyinskaya Street

Nizhniy Novgorodrussia 603109

office Tel/Fax: 00 7 831 434 4845E-mail: [email protected]

website: www.nbunker.ru


Com

pany news


LUkoIL Benelux B.V. is a prominent and reliable physical supplier of bunker fuels in the Amsterdam-rotterdam-Antwerp region (ArA).

we are supported by the logistic and financial strengths of our parent company LITASCo SA in Geneva, Switzerland. LUkoIL Benelux B.V. is part of the russian oil major LUkoIL, which has wide-scale operations outside of russia.

our clientele varies from the well-known large/medium shipping lines to other physical suppliers and trading companies. our company has a market share of 10-15% in our home markets of rotterdam and Amsterdam. LUkoIL Benelux B.V. has also been supplying bunker fuels in Antwerp from within the port area and from the other locations in ArA. we are also active in the Baltic, Black and Mediterranean Seas and other regions.

Since 2005, LUkoIL Benelux B.V. and our Dutch partner Burando holding have been jointly operating Service Terminal rotterdam, which enables LITASCo SA and LUkoIL

Benelux B.V. to store fuel oils and blend them to necessary specifications. Construction of the second, much bigger phase of the terminal was completed in March 2012. having our own terminal and purchasing almost all of our bunker fuels from our parent company LITASCo SA gives us a competitive advantage in ArA’s saturated market and enables LUkoIL Benelux B.V. to design and implement flexible delivery strategies.

we supply a wide range of products and grades – IFo 700, 500, 380, 180, 120 cst, bunker gasoil – and can also make other products available upon request. we ensure quick timely deliveries of our products to sea-going vessels with a fleet of five time-chartered barges with deadweight ranging from about 1,700 MT to 6,310 MT.

Provided by our partner Burando holding’s barge-operating company FTS hofftrans, they are all new double-hulled barges with greater bunkering capabilities. we can also hire other barges for spot deliveries in the range from about 1,700 MT up to 9,200 MT with both FTS hofftrans

and alternative reliable transport companies in ArA.

our team of bunker traders and operators has all it takes to be your reliable partner: experience, expertise and thorough knowledge of the bunker markets. They are friendly and available for your enquiries 24 hours a day. LUkoIL Benelux B.V. will gladly look into your enquiries in ArA, as well as any other regions in the world.

we look forward to your bunker enquiries and hope to do business with you soon. ⏏

LukoIL bENELuX b.v. One of the key players in ARA ports

Neftehim Bunker Jsc is an affiliate of the well-known and reputable oil product trader and bunker supplier, Neftehim Ltd, which

has been operating since 2000.we maintain a reputation for reliably

supplying the highest standards of services and excellent quality of products.

Because of our excellent business relations with the major russian oil companies, as well as the independent oil producers, we are able to be very flexible in the market and we can always offer the best prices to our clients.

Stable relations

Thanks to these extensive and stable relations, we always have a full range of residual products available. Furthermore, our marine gas oil is fully compliant with the latest international industry standards.

our company has access to the fleets of five different barging companies, giving us flexibility and efficiency in our bunker delivery operations.

with growth in mind, we now have our own bunkerbarge, Severaynka, which was reconstructed on the Vyborg shipyard in accordance with MArPoL regulations. Its cargo tanks have a total capacity for 1,000 mt of hFo and 260 mt of MGo.

Surveyor testing

Quality control is a matter of great importance to us, so before a bunker delivery to the vessel, we regularly engage a surveyor to test our fuel.

In choosing Neftehim Bunker Jsc for your bunker supplies, you will always find outstanding levels of service, quality and efficiency. ⏏

Neftehim bunker JscExcellent business relations with suppliers guarantee a flexible approach

For more information, contact:

Neftehim bunker Jsc.

office 503

bolshoy Avenue v.o. 80, lit. r

St Petersburg

199106 russia

Tel: +7(812) 332 2363/

+7 (812) 942-3140

Tel/Fax: +7(812) 332 2364


website: www.nh-bunkering.ru

For more information, contact:wilhelminakade 85,

building “De maastoren”, 36th Floor, 3072 AP rotterdam,

The NetherlandsPostal address: Po box 24065,

3007 Db rotterdam, The Netherlands

Tel: +31 10 264 27 00E-mail: [email protected]


Com

pany news


Forum supplies bunker fuels in the port of Saint-Petersburg. The com-pany entered the market in 2011 and has proved to be a reliable supplier

of bunker fuels, providing clients with fuel oil produced by Antipinsky refinery, an independent modern refinery with monthly production capacity of over 150 000 metric tons. our main product is straight run fuel oil complying with ISo-F-rME, ISo-F-rMG and regulations 14 (1) and 18 (1) of MArPoL 73/78, Annex VI. we supply MGo (DMA) 0,1% sulphur from the lead-ing refineries in russia as well.

Forum operates a time-chartered double-hulled barge with 1965 mt deadweight to ensure fast and reliable deliveries. In addition, we have contracts with the region’s leading shipping companies to make our delivery process smooth and secure. Product trans-shipment is carried out on the most up-to-date terminals of the region.

Quality is the corner stone of bunker business, therefore, in collaboration with

world-acknowledged surveying companies, we ensure the highest quality of the products we deliver. All our products are compliant with ISo 8217:2010(E) standard.

Since its beginnings of 2011, Forum has earned the trust of customers and partners by supplying high-quality products at competitive prices and on flexible payment terms. The company ensures a consistent supply of fuel oil, working on a contract basis as well as the spot market. we provide our services for a vast number of major companies in the shipping industry, as well as traders 24 hours a day, 7 days a week.

our competitive advantages are:• direct access to high quality fuel oil;• products conform with ISo8217:2010

(E) plus the later amendments;• 24/7 services ⏏

ForumProviding direct access to high-quality fuel oil, 24/7

Gazpromneft Marine Bunker, operator of Gazprom Neft’s bunker business, has acquired its first international asset, Marine

Bunker Balkan S.A. (romania), which oper-ates in the Black Sea port of Constanta, from Unicom holding.

Marine Bunker Balkan S.A. manages two bunker vessels, one storage vessel with a capacity of 4,000 tonnes and two mooring barges, as well as leasing the Constanta oil Terminal which has a capacity of 1,500 tonnes. Annual bunker fuel sales are expected to exceed 100,000 tonnes, resulting in Gazpromneft Marine Bunker becoming one of the largest bunkerage operators in the port of Constanta. Gazpromneft Marine Bunker plans to further expand its presence in romania to the ports of Mangalia and Midia, with bunker fuel supplied from Gazprom Neft’s russian and Serbian refineries.

The Black Sea port of Constanta is one of the top ten largest ports in Europe and the third largest in the Black Sea region, with annual bunkerage of over 400,000

tonnes. Constanta is situated at the crossroads of trade routes from Europe to Asia and represents a key link in the strategic shipping corridor of the Danube river. Trade and shipping corridors in the region are being developed, which means that Danube river transit and vessel docking in Constanta are expected to grow by 1-2% per year through 2025.

“The strategic objective of Gazprom Neft’s bunker business is to become a significant player in the international bunker fuel market. Gazpromneft Marine Bunker’s international expansion represents a key step in this direction. I am confident that the experience of working in the European market gained as a result of this acquisition, combined with our existing successful asset management in russia, will further strengthen Gazprom Neft’s bunkerage position,” - Alexander Dyukov, Chairman of Gazprom Neft’s Management Board commented. ⏏

Gazpromneft marine bunker, LtdMarket leadership is our goal

Gazpromneft marine bunker, Ltd

bolshoy Prospect 80 block r,

vasilyevskiy Island,

St-Petersburg, 199106,

russia

Tel: +7 (812) 449-49-70

Fax: +7 (812) 449-46-28

E-mail:

[email protected]

website: www.gazprom-neft.ru

For more information and bunker enquires please contact us at:

Forum Ltd. office 411, barochnaya str. 10/1,

St. Petersburg, 197110, russiabunker trader: Aleksey miloradov

Phone: +7 (812) 449-65-91mobile: +7 (921) 757-11-33

yahoo ID: aleksey.miloradovE-mail: [email protected]

www.forumbunkering.ru


Join us in exotic Hong Kong for this year’s convention – ‘Asian Growth: Global Recovery?’

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The International Bunker Industry AssociationAnnual Convention 2013

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Register today www.ibia.net

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Next issue


WORLD BUNKERING WINTER 2013 ISSUE

www.worldbunkering .com

SPECIAL FEATURES:BlendingA top industry expert advises on how to cut fuel costs through careful blending.

Fuel AdditivesWhat role can additives have in helping owners make most efficient use of expensive marine fuel oil.

Barge DesignWe look at the newbuilding scene and also ask whether designing and building LNG bunker barges will be a straightforward process.

GEOGRAPHICAL FOCUS:AmericasThe North American ECA has been in place for a while now. We ask whether the authorities are starting to toughen up the enforcement regime.

AfricaThere is considerable bunkering activity off West Africa but the piracy problem is an increasingly serious issue.

Event ReviewIBIA Annual Convention 2013 – Hong Kong.

Russian UpdateNews, Views, Analysis.

Regular FeaturesInterview, Industry News, Environment, Testing, Risk Management, Innovation, Legal News, Equipment and Services, Diary.

worldbunkering .com

Autumn 2013 83


Diary


13-15 August 2013NAvAlSHORE –

MARINTEC SOuTH AMERICA 2013Navalshore – Marintec South America, universally acknowledged as the strategic event for the maritime value chain in Brazil, provides opportunities for your company to drive new revenue with a highly qualified audience.www.ubmnavalshore.com.br

10 SeptemberIBIA SEMINAR AND RECEPTION

IBIA cordially invites members to a seminar at London International Shipping week with theme them Asian Growth - Global recovery? how Should London respond to the Challenge?

www.ibia.net

11-12th September GAS FuEllED SHIPS CONFERENCE 2013

with the title The prospects for LNG as a maritime fuel for the future, the 4th Gas Fuelled Ships Conference will evaluate the benefits of using LNG as a maritime fuel and explore solutions to its limitations.

www.motorship.com/gfsconference

9-13 September lONDON INTERNATIONAl

SHIPPING WEEkwith a wealth of functions planned for the week, London International Shipping week will be a high level networking opportunity for leaders across all sectors of the international shipping industry.

www.londoninternationalshippingweek.com

23-25 September 2013RESCON 2013 - THE RED

SEA AND GulF BuNkERING CONFERENCE

The red Sea & Gulf Bunkering Conference uniquely draws together the port authorities, shipping operators, bunker suppliers, refineries, traders and regulators from the region to create frameworks to adapt to the upcoming regulatory changes in the industry, increase margins through advanced bunker strategy and create new business opportunities.

www.iirme.com/rescon

24-27 September 2013NEvA 2013

NEVA 2013, which convenes in russia’s ‘maritime capital’ St Petersburg between September 24 and 27, will offer delegates and exhibitors the opportunity to scrutinise the significant developments in the structure and operation of russia’s maritime industries and the nation’s growing presence on the international stage.

www.neva.transtec-neva.com

7-10 October BuNkER ExPERIENCE

All inclusive, intensive bunker course, with a perfect mix of theory in the morning and real practice in the afternoon. Starting with a welcome dinner on Monday, followed by A Barge Day, A Lab Day and a Port Day.

www.bunkerexperience.com

8-10 October 2013, IndiaINMEx INDIA 2013

South Asia’s largest Maritime Exhibition & Conference will take place from 8 – 10 october 2013 at the Bombay Exhibition Centre, India. The event provides key players with an unprecedented opportunity to connect with thousands of buyers, build strategic partnerships and gain a solid understanding of the present and future trends in the region’s buoyant maritime and shipping market.

www.inmexindia.com

24-25 October 2013BuNkER FuEl BlENDING

TECHNOlOGy & ECONOMICS COuRSE

This course is designed to provide a comprehensive overview and discussion of marine bunker blending techniques, technology and cost/benefits. It addresses contemporary issues such as the latest ISo Marine Bunker specifications.

www.cconnection.org/Event.php

28-31 October 2013lNG BuNkERING kOREA

After a highly successful launch in Singapore, IBC’s LNG Bunkering Summit now comes to korea, profiling developments and opportunities in the North Asian region, and korea in particular. The conference explores the commercial drivers for LNG fuel, the way forward for LNG bunkering, and puts the focus on recent trends in infrastructure developments in the region.

www.lngbunkeringkorea.com

30-31 October FuTuRE MARINE FuElS & luBES

CONFERENCEThis event provides industry with the information needed to take decisions on future marine fuel and lube strategy. Through a mix of conference papers, discussion and roundtable debate, attendees will come away thoroughly briefed on the technical, operational and economic implications of upcoming regulation and associated supply and demand questions.

www.rivieramm.com/events/

5-7 NovemberIBIA ANNuAl CONvENTION 2013

The 2013 IBIA Annual Conference in hong kong this November will be examining whether or not Asian economic growth will be enough to fuel a global recovery in the bunker markets. Sales of marine fuel oil have been weak worldwide due to slow economic growth, a sluggish shipping market and more widespread slow-steaming by shipowners to save fuel.

www.ibia.net

26 November 2013TuRkISH MARITIME FORuM 2013A nation repositioning itself in maritime trade Seatrade and Tradewinds present the Turkish Maritime Forum, a new approach to Turkish shipping, designed for a nation repositioning itself in maritime trade.



• High quality ISO 8217-2010 bunker fuel• Quality control from oil refinery plant to end user• Flexible prices• Main Sea Ports of operations:

Saint-Petersburg, Kaliningrad, Murmansk, Archangelsk, Novorossisk, Tuapse, Port Kavkaz, Nakhodka,Vladivostok, Vostochnyi, Sakhalin island, Olya, Samara, Moscow, Sheksna, Sochi

• Main River Ports of operations: Saint-Petersburg, Yaroslavl, Kazan, Volgograd, Rostov-on-Don, Astrakhan, Azov, Ust-Kut, Nizhniy Novgorod, Kozmino, Primorsk, Taman, Ust-Luga

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

The fuTure is in our hands!

GAZPROMNEFT MARINE BUNKERBolshoy Prospect 80 block R,

Vasilyevskiy Island, St-Petersburg, 199106,

RussiaTel: +7 (812) 449-49-70

Fax: +7 (812) 449-46-28E-mail: [email protected]

www.gazprom-neft.ru


One of the leading physical suppliers of marine fuels in Fujairah with global reachBP Marine. People with Energy.

BP Marine’s commitment to our customers is simple: to consistently deliver quality products with outstanding levels of service throughout our global network of ports. We are excited to bring this commitment to Fujairah, a crucial hub for our valued customers. Our dedicated marine professionals welcome your requirements and are committed to building long-term partnerships in Fujairah and elsewhere. Supported by a wider team, with the industry knowledge and expertise to understand your specific needs, you can rely on our people.

www.bpmarine.com


world bunkering - autumn 2013

Documents

range of lubricants

bunkering industry

independent bunker suppliers

ruwb autumn

lubeswb autumn

new york

new ideas

logistics korea