Wb spring 2016 web by Maritime Media

SPRING 2016

INNOVATION Running rings round the future

WORLD BUNKERING

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INSIDE THIS ISSUE: Get ready for big data Mass flow meters gain ground Western Med report

Editor’s letter

Another tough year

nternational accountant and shipping adviser Moore Stephens always manages to maintain an air of optimism. In a recent statement, it expects the shipping industry to remain “volatile and indispensable in 2016”. Despite this, partner Richard Greiner concludes: “Now is nevertheless a good time to invest if you have access to finance and a credible business plan, preferably one with the badge of green approval. It is no coincidence that the International Maritime Organization (IMO) recently endorsed a proposal to adopt ‘Shipping: Indispensable to the World’ as the theme for World Maritime Day 2016.” The shipping industry might be indispensable, but, sadly, the companies that make it up are not. Survival is never guaranteed. Bunker suppliers know this all too well, as the industry continues to deal with the impact of the OW Bunker collapse. Our Legal page details a significant case in the United Arab Emirates (UAE), concerning the OW failure and who should pay who. Liner shipping companies are also vulnerable, perhaps not so much to bankruptcy as to takeovers. As we went to print, the acquisition of Singapore’s Neptune Orient Lines (NOL) by French container shipping giant CMA CGM was awaiting regulatory approval. In its latest Container Forecaster report, global shipping consultancy Drewry confirms that liner shipping is set for another very tough year. It also makes some very interesting points on the impact of low fuel prices. It says that many stakeholders point to the fact that bunker prices of, for

World Bunkering Spring 2016

example, $130 per tonne for IFO 380 in Rotterdam are clearly contributing to lower overall container freight rates, but that a “new and worrying trend has become apparent for ocean carriers”. It says: “Our most recent data suggests that they are no longer able to cut costs faster than the prevailing declines seen in the freight rate market. Drewry believes that oil prices have probably hit the market bottom right now, and costs for the positioning of empty containers and vessel lay-ups will increase this year. Our latest calculation is that a 10,000 teu vessel would incur a minimum of $450,000 in reactivation costs if laid up in Asia for three months or more. It should also not be forgotten that many lines no longer even quote a bunker adjustment factor on some trade lanes. The consequence of this is that Drewry expects industry losses to widen to over $5 billion in 2016.” The low price of oil does, of course, have implications for all parts of the shipping industry. How long the current enthusiasm for liquefied natural gas (LNG) will be able to withstand a crude oil price of US$30 or even less a barrel is anybody’s guess. But, for now, as our LNG feature notes, there are many projects under way. This issue’s geographical features report on the key bunkering hubs in the Western Mediterranean and in the UAE. In both regions, there is no shortage of

new projects and plenty of optimism, although a reluctance to publish annual volume statistics in some major ports does make it difficult to judge exactly what is happening. Another area characterised by intense activity and innovative solutions is lubricants. Our feature on this important part of engine operation explains why so many new products are emerging. Perhaps more than ever, the changes affecting the industry – from environmental regulation to an unpredictable oil price – make it an exciting place to work. That, no doubt, will be reflected in the atmosphere at this year’s IBIA annual dinner. I look forward to seeing you there. David Hughes Editor

SPRING 2016

Publisher: W H Robinson Editor: David Hughes editor@mar-media.com

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Project Director: David Scott david.scott@mar-media.com

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SPRING 2016

IBIA REPORTS Editor’s letter 1 Chairman’s introduction 7 Chief Executive’s report 9 Asia report 11 Africa report 13 Interview 15 New members 21 Events report 23 Noticeboard 25 FEATURES Industry news 27 Environment 29 Traders 31 Fuel quantity 33 Lubricants 36 New fuels 38 IT 40 GEOGRAPHICAL FOCUS Western Mediterranean 43 Indian continent 46 UAE 49 LNG 51 Testing 53 Russian update 55 Innovation 60 Legal 62 Equipment and services 63 Preview: IBC 65 Preview: APM 67 Diary 76

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o it’s 2016 already. It is amazing just how quickly time has gone by. Well, 2015 was a fantastic year for IBIA. For the first time, we broke the 700-members barrier. As of 1 January 2016, we had 768 members. The majority of the new members joined as a result of the successful IBIA event held in Mauritius on 15 October. On the International Maritime Organization side, I’m glad to see that its new secretary-general, Ki-Tack Lim, has said in his first speech that he will work hard for better communications between the maritime sector and the public. Let’s hope the bunker buyers and shipowners will also be involved! 2016 will be another busy year for IBIA. Coming up we have our renowned annual dinner in London during International Petroleum Week, additional IBIA basic bunkering courses, more membership receptions – in Cape Town, Houston, Singapore, Durban and London, and our annual convention, which this year will be held in Gibraltar. Other events are in the pipeline. So, dear members, please take a look at our website, which lists everything that we have planned. Remember we are here for you. I would like to highlight to all members that IBIA is your organisation – and we are achieving a lot. So please use us. Get involved. Share your views, problems and suggestions with us. This is my last “Chairman’s welcome” column before I step down and hand over the chair. So I would like to thank you all for your support over the past two years. It has been an interesting journey, which has included the introduction of mandatory use of mass flow meters in Singapore, new emission control area sulphur limits, the collapse of OW Bunkering, various ‘crises’ in shipping, credit risk problems and… well, I could mention much, much more! I would like to thank the board of IBIA for the enormous amount of hard work and time they have given to the association. Remember, all your board members work on a voluntary basis. And then a big thank you goes to Peter Hall and his team: Chanette, Steve, Tahra and Nadiah. Without them, IBIA would not be where it is today. Also I must thank my company, Oldendorff Carriers GmbH & Co. KG, and my family for the time they have lost while I have been involved with IBIA. Lastly, another big thank you again to you all. I hope we will be able to keep in contact and maintain relationships built up over the past two years. Thank you… and, remember, “keep smiling”!

Chairman’s welcome

Dear All

Jens Maul Jørgensen, chairman, IBIA

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wo pieces of news emerged in late December; the first was the Organization of the Petroleum Exporting Countries (OPEC) report (all 407 pages of it), which essentially proposed business as usual as far as oil production is concerned. The report admits that expectations in last year’s report – that tight oil and shale in North America would buckle – have not been realised. However, the tap needs to remain on, in order to meet the oil dollar dependency of economies in the Middle East. The oil price reacted accordingly, slumping to its lowest since 1999 – good news for shipoperators. The second piece of information was that emerging from the COP21 greenhouse gas summit in Paris, where 190 countries reached accord. Interestingly, the OPEC report indicates that this decision will have little relevance to the oil industry. Confusing signals from the global marketplace to start the year with? Clearly, the industry needs to be engaged as the effects of these decisions work their way through. Drilling down into the detail, the report advises against an early implementation of the sulphur cap. Citing OPEC’s annual “World Oil Outlook” (WOO), it said: “If the date remains at 2020, this will leave only limited time for refiners to make what could ultimately be substantial investments.” On the next rung down on the global maritime stage is the International Maritime Organization (IMO), where news at the end of 2015 advised a change of secretary-general – completing his time onboard, Koji Sekimizu left the bridge, with Ki-Tack Lim assuming command. The change in command will mean a new course, the

World Bunkering Spring 2016

key question being whether this will be a large deviation or a small adjustment. IBIA will monitor progress keenly. 2016 – IBIA, steady as she goes on the same course

IBIA’s theme for 2015 was “Building on Strong Foundations” – looking at developing further the concepts of communication, education and best practice. The aim was to help improve our influence and standards across the marine fuels industry, supporting our members in developing their businesses and personal understanding. We have certainly broadened our scope of influence, adding members from 14 more countries – we now have members in 80 countries across the world. The membership also continues to grow, and we now have 768 organisations and members. As a result, the 2016 events programme (see page 23) is building on the progress of 2015 and includes regional forums, dinners, award ceremonies, training courses and our annual international convention – this year in Gibraltar. These activities are taking place across 12 different cities in Europe, the Americas, Africa, the Middle East and Asia. The programme contains a mixture of member-only and open-to-all events. In addition to IBIA’s programme, individual board members and members are speaking at a number of conferences and bespoke training across the globe, delivering IBIA expertise on a range of topics.

broaden our work groups – the scope of which needs to be expanded in terms of both topic and membership involvement. I would ask those who are interested in playing a part in shaping the influence of IBIA to contact me about getting involved in the work group activities. Board elections and AGM

Also on this point, a reminder that voting for board nominations takes place between 11-31 January. I would encourage all of you to vote. Our AGM will take place on Monday 8 February at 15:30 at the Naval Club, London, where the election results will be announced. This is followed in the evening by the annual dinner, at the Grosvenor House Hotel, Park Lane.

Chief executive’s report

Sailing into 2016

Captain Peter Hall, chief executive, International Bunker Industry Association

Work groups

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IBIA Asia report

New Asia regional manager IBIA appoints industry expert Simon Neo to Singapore key post, covering the growing Asian market

BIA has appointed a new Regional Manager to manage its office in Singapore, covering the Asia region. Simon Neo has more than 30 years of oil and shipping industry experience including holding senior management roles. He started his career as a supervisor in an oil terminal and then worked as a senior surveyor for different surveying companies. He joined the bunkering industry in 1992 and was involved in the operations, sales and marketing, trading and purchasing of bunker fuel for an international shipping firm. Mr Neo says: “I am delighted to take on this exciting role, the bunker industry is growing, but also facing an unprecedented level of industry challenges, not least the dramatic drop in the oil price and the increasing level of environmental legislation. IBIA’s members and potential members need our support, guidance and representation more than ever before. I look forward to working with them, and using my industry experience to deliver greater value, ensuring that IBIA’s services exceed our members’ needs.” IBIA’s Chief Executive, Peter Hall, adds: “Simon, a previous Chairman of IBIA, has a unique set of experience with senior management, experience with bunker and shipping companies, understanding of the far east market and extensive government and industry

World Bunkering Spring 2016

contacts across the region.” The association is well positioned in the region to develop the potential that exists to increase our membership base and influence in the region. Well versed in policy issues Simon has served on many industry committees including the Spring Singapore technical committee (bunkering), SSA Bunkering sub-committee, SIBCON steering committee, the SSA services committee, SS600 and SS524 Bunkering Procedures Review Committee, and the Mass Flow Meter work group which leads to the formation of the technical reference and guidelines for Mass Flow Bunkering in Singapore. As well as managing the IBIA Asia regional office he will also be liaising with members and representing their interests with Governments, national authorities, shipping owners and operators across the region.

His work will include organising specialist industry training, networking and social events in addition to a range of member working groups which analyse specific issues, feeding directly into representations to the relevant authorities.

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27 – 29 APRIL 2016, COPENHAGEN, DENMARK

The 37th International Bunker Conference The International Bunker Conference (IBC) has become a world-renowned forum for the international bunker industry. The 37th IBC will meet at Radisson Blu Hotel Scandinavia in Copenhagen. Don’t miss the chance to obtain an update on what’s happening in the bunker industry as well as to meet old and new friends at this great networking arena.

IBC 2015 gave us a wonderful chance to network with industry professionals and listen to speakers from respected companies. Friendly atmosphere during social events. Sergey Belyankin, Bunker trader, UMF Bunker, Russia

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IBIA Africa report

IBIA Africa: the year ahead Looking to the new year, the IBIA Africa branch wishes all its members a prosperous 2016

s the IBIA Africa membership grows steadily, our new year’s resolution is to grow and develop our membership and engagement even further over the next 12 months. We start 2016 with the Africa annual general meeting on 10 March, followed by a members’ dinner, and invite all Africa members to join us for this event in Cape Town. We would love to see you there. We saw a number of successes in 2015, and following IBIA’s lobbying in Africa to encourage recognition of the economic benefits that bunkering brings to ports, it was encouraging to hear a statement in December from South Africa’s president, Jacob Zuma. In his 2015 end of year statement, he stated that new bunker storage facilities could be an emerging investment opportunity in the country. He explained that bunker storage facilities for “cleaner fuel” could form part of investments worth approximately R1 billion ($66 million) across South Africa. In other maritime developments, Zuma said that, over the past 12

World Bunkering Spring 2016

months, R7 billion ($464 million) had been spent on new port facilities and refurbishment of existing ports. Working in partnership with Transnet National Ports Authority (TNPA), we will be showcasing opportunities for the bunkering industry at our next regional forum in September. The four-day event in Cape Town will consist of two days’ training: an IBIA basic bunkering course, plus tailored training for the region, examining top legal and business issues. This will be followed by a one-and-a half-day conference. There will be several keynote speeches from government agencies, outlining the government’s drive to encourage investment opportunity and its ambition to transform South Africa into a leading regional petroleum hub. Aimed at both local and international delegates, there are likely to be attendees from both local government and the port authority, as well as international shipowners, bunker suppliers, traders, brokers, port authorities, credit reporting companies and lawyers. Throughout the year, we will also be hosting a number of training events around Africa, especially in Ghana,

where we will be running the IBIA basic bunkering course. Mauritius continues to develop as a bunkering hub and there is now an IBIA sub-branch in this region to encourage this even further. Alongside Celero Training, IBIA will be hosting a number of key training courses every quarter, covering legal aspects, finance and the advanced bunkering course. We will also be running the basic bunkering course (both in English and French) within the Indian Ocean region. As port authorities acknowledge, a successful bunker port will need efficient cargo-handling facilities, deep shipping channels, adequate berth and quay capacity and, of course, a skilled workforce. IBIA training courses, offering tailored coaching in the local regions, represent the perfect preparation for this significant business growth. We look forward to a year of strengthening relationships and growth in our region. For more information, call Tahra Sergeant, IBIA regional manager, on +27 21 7905318 or contact me by email at tahra.sergeant@ibia.net

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Interview

Passionate about IBIA Eugenia Benavides Buitrago has been on the IBIA board for over five years. She explains to David Hughes why the bunker industry body is so important to her

ugenia has a demanding and important role in Colombian oil company Terpel so, “Why,” I asked her, “is IBIA important enough for you to give up the time to become a board member?”. “I had the opportunity to attend the first IBIA convention in Orlando in May 1993 and I left fascinated with the bunker business,” is the response. She continues: “IBIA is an important organisation because the bunker business is really necessary for the maritime industry. Fuel keeps the ships on the move and accounts for 50-70% of running costs so it is not surprising that the industry is so important. It is really exciting and I am very passionate about the fuel busines. I believe in action! “Back in 2010, my friend the late Alejandro Risler called me and encouraged me to run for his vacant post. He was a long-standing IBIA board member and co-founder of Argentinian bunker company Risler SA. I applied, but on that first occasion I was not recommended by the board development committee. The following year, Alejandro called me again, and I was recommended. I am currently in my second term. “I stood for the board to improve my company’s profile in the industry and increase networking. I also believe I am a strong member of the IBIA board, as I am extremely enthusiastic and wish to actively participate in the decision-making

World Bunkering Spring 2016

process that is relevant to the global bunker community. I believe that my energy, commitment, and longstanding knowledge of bunkering will enable me to help IBIA break down local barriers and open up the organisation to many more people, especially within the Latin American community, where today IBIA needs to improve its presence. “IBIA has given me the opportunity to learn more about the business, meet suppliers from all continents, to help develop the industry in my region, participate in events, meet different cultures, gain access to technical support and to information on maritime issues. Becoming an active board member of IBIA has made all of the above possible. And I love to be participate in events, meet different cultures, gain access to technical support and information on maritime issues. Becoming an active board member of IBIA has made all of the above possible. Of the various aspects of IBIA’s work, which does Eugenia think is the most important? She is clear about her answer to this, saying: “The most important is that IBIA cares about being an association that represents the entire industry. IBIA reaches the supply chain of marine fuels to ships by providing training courses and networking events and conventions. In addition, there are events such as the annual dinner and regional forums.

“Networking events, as well as the member’s directory, are very important. Just imagine having all your potential customers or business players in one place. This is like gold dust…. “Another important opportunity is lobbying at the International Maritime Organization (IMO) and other related associations, along with the technical information shared, the updates in the magazine and newsletter, plus all the information related on legislation, etc. Additionally, I think that it is important that IBIA teaches all the players to provide high-quality service in order to have excellent logistics and procedures in fuel supply so that cargo can make it to its destination on time.” I ask Eugenia: “You have particular knowledge of the Americas, especially the South American market. How do see the prospects for suppliers within the region?” She explains that, since 2014, the market has really changed a lot. “We are moving in turbulent waters”, she says. “Some companies have pulled out, new ones have come and I believe that the maritime market will grow. Global maritime traffic demand continues to increase rapidly. The world market continues to grow and, with the expansion of the Panama, canal freight transport in the Americas will be affected. How? Well, new logistics hubs and new transport routes will emerge,

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“There will be an increasing need for renewable energy sources as we pass the peak of world oil production. On the same subject, we can look forward to the possibility of a real change in the supply and consumption of a new range of energy sources, cleaner and respectful to the environment. Liquefied natural gas, the future alternative fuel, is already a reality in some ports. “Other new companies will be entering the market. The market is very dynamic and active “I also hope things will return to the way they were a few years ago. Then, everything was easier when we were dealing with customers. The Marrakesh Agreement, setting up the World Trade Organization, had led to a general atmosphere of good faith, and one could give credit just based on the recommendation of another customer. Today, as things are, that is not enough and

we ask for financial information and more documents to study before granting credit. Some customers get upset when we ask them for such information, but we might get unwelcome surprises, so we have to tread cautiously.” So, lastly, what would Eugenia like IBIA to achieve, in the short, medium and long term? “I would like IBIA to be recognised globally in every corner where bunkers are sold as the association that represents all players in the maritime oil market and safeguards the interests of the group at IMO and other bodies related to the maritime sector,” she says. “I hope IBIA develops ways to standardise procedures on a global basis. I would also like to see the association grow to 1,000 members, with a presence in every continent – not only Europe, Asia and Africa – as it should have a bigger international identity and less of a regional one.”

Interview

as well as changed distribution patterns in North America and South America. “There are a lot of port concessions going on in different countries, so the ports have to offer services in order to compete. Plus, there are a lot of vessels arriving and new companies or players emerging to supply their needs. The opportunities are there, waiting for the region’s governments to exploit. The expansion will lead the ports and economies of the Greater Caribbean to a more efficient global network. This will mean greater port movements and more cargo, and more fuel will be required to serve users. It will also mean companies need to be prepared to meet the demand and meet the requirements of the North American emission control area.” Looking ahead, I ask what changes Eugenia expects to see in the global bunker industry in the next five to 10 years?

Eugenia Benavides Buitrago Eugenia was born in Barranquilla, Colombia, and attended Marymount College of Virginia in the US and the Universidad del Norte, Colombia, where she earned her bachelor’s degree in business administration. She also has post-graduate degrees in international business management and maritime transportation and port legislation from Universidad Javeriana and Pronaval, Colombia. Since 1984, Eugenia has worked with Colombian downstream major oil company Organización Terpel, holding various positions in sales and operations, as well as those of marketing director, commercial manager and company legal representative prior to the merger between Terpel del Norte and Organización Terpel. For the past 11 years, she has worked solely in the marine business and is currently director of marine fuels. She has been an active member of various professional and community organisations, such as ABSA, ACSA, Actuar Famiempresas, Marymount Alumni Association, Marymount School Parents’ Association, Gran Central de Abastos, SACSA, Promitel and Transoccidente. Eugenia has also been a speaker at the Bunker New Orleans Conference 2000; Maritime Week Americas (MWA), Miami, 2010; MWA, Cartagena, 2011; MWA, Panama, 2014; and MWA, Cartagena, 2015. She was a panellist at MWA, Miami, 2013, and at the IBIA Convention, Cancún, 2015. She was also session chairman at the IBIA Convention, Dubai, 2012. Eugenia conducted the IBIA basic bunker course in Spanish at MWA 2012, 2014 and 2015 and at the IBIA Convention, 2015. She has been an IBIA board member since April 2011 and was re-elected in February 2014. She has been IBIA honorary treasurer and currently chairs the convention committee.

World Bunkering Spring 2016

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• Opportunity to participate in IBIA work groups and governance • Networking: member rates at the IBIA Annual Convention, and the ability to buy tickets for the IBIA Annual Dinner during IP week each February. Discounted or free attendance at IBIA forums around the world. • As a member you have access to various industry organisations including IMO, where you voice is heard. • Access to our network of members in your region and across the globe. • Individual subscription to our quarterly magazine World Bunkering, that details the latest information in technology, regulations, the markets and other developments. • Access to technical information and Support of industry experts. • Arbitration and Resolution service, IBIA provides an arbitration and resolution service for its members which is very cost effective to mediate disputes between members. For further information visit our website. PLUS NEW BENEFITS: • New member benefits. • A discounted travel club that offers cost effective flights. • Multiple year discounts 15% discount for 3 years membership, (Paid in one instalment) – Guarantee no membership increases for the next 3 years. • Meeting location in Central London, with secretarial services (at cost effective rates). • Plus new benefits to be announced in the coming weeks “Careers and Job information”. • Further information on member benefits is available on our website.

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Cape Town

2016 EVENTS PROGRAMME JANUARY Cocktail Evening - Singapore, Asia FEBRUARY 8th 8th 8th 10th MARCH 10th 10th 18th 18th 21st 23rd APRIL

Board Meeting - Naval Club, London, United Kingdom AGM - Naval Club, London, United Kingdom IBIA Dinner - Grosvenor House Hotel, London, United Kingdom IBIA Basic Bunkering Course and (Seminar) - London, United Kingdom IBIA in Africa AGM and Exco Meeting - Cape Town, South Africa IBIA in Africa - Members Dinner - Cape Town, South Africa IBIA in Asia Golf Day - Singapore, Asia IBIA in Asia Forum - Singapore, Asia IBIA in the Americas Membership - Forum and Drinks - Connecticut, United States of America Mediterranean Forum Membership luncheon Drinks - Houston, United States of America IBIA Board Meeting - London, United Kingdom IBIA in Asia Dinner - Singapore, Asia European Members Lunch

MAY

24th 25th JUNE 7th 23rd JULY 21st AUGUST SEPTEMBER 6th - 9th 13th - 15th 13th

Maritime Week Americas (BBC) - Fort Lauderdale, United States of America IBIA (American Members Lunch) - Fort Lauderdale, United States of America IMO Lunch - London, United Kingdom Basic Bunkering Course - Ghana, Africa Membership Luncheon - Ghana, Africa Middle East Forum - Dubai, United Arab Emirates Mediterranean seminar - Posidonia - Athens, Greece IBIA in Africa Membership Drinks - Cape Town, South Africa IBIA in Africa Membership Drinks - Durban, South Africa

IBIA Europe Forum at SMM - Hamburg, Germany IBIA in Africa Forum: Cape Town - Cape Town, South Africa Basic Bunkering Course - Cape Town, South Africa Basic Bunkering Course - Aracon Rotterdam Membership Luncheon - Houston, United States of America IMO Luncheon - London, United Kingdom

OCTOBER SIBCON - Singapore, Asia NOVEMBER 7th

African Ports Evolution - Durban, South Africa IBIA Convention - Gibraltar IBIA in Africa End of Year Drinks - Cape Town, South Africa

DECEMBER IBIA Members drinks - London, United Kingdom

* For up to date details, please consult the website.

TRAINING IBIA Asia carries out a variety of training courses throughout the year Monthly ‘Basic Bunker Training to SS600 Standard’ and ‘Advanced Bunker Training’ courses result in Cargo Officer certification. We also run a course on Quality and Compliance in Bunkering 17020. Basic and advanced bunkering courses are held around the world for ship owners and operators.

www.ibia.net

For further details, please email ibia@ibia.net or call us on +44 (0)20 3397 3850

Events manager

IBIA events 2016 A belated happy new year to all our members

016 is going to be very busy for the events team at IBIA, bringing an unprecedented number of quality events to you throughout the year. The year kicks off with a board meeting and then the AGM at the Naval Club in London in the afternoon of 8 February. This is followed in the evening by the IBIA annual dinner. This is back at its traditional home, the Grosvenor House Hotel, Park Lane. Following the dinner, on 10 February, we are running the IBIA basic bunkering course at our London offices. This has been timed to coincide with International Petroleum Week to help members make the most of their time in London. Regardless of whether you are attending the course, why not take the time to visit our London office and talk us through the issues that are affecting your business and find out more about the projects we have planned for 2016. March is an extremely busy month, with the African AGM and executive committee meeting, as well as a members’ dinner, in Cape Town. The Asia region is running a forum in Singapore (see page xx for further details). IBIA is running the IBIA basic bunkering course in Dubai in conjunction with the first annual Middle East Bunkering Convention. IBIA will also will be taking part at the Connecticut Maritime Association (CMA) Conference 2016

World Bunkering Spring 2016

in Stamford with a forum and a social event. Watch our website for full details. April sees an IBIA meeting in London, a European members’ lunch, the IBIA in Asia annual dinner and a lunch and presentation for IMO member flag states. Throughout the year, IBIA will be represented at various industry events, including: Asia Pacific Maritime (Singapore); CMA Conference (Stamford, US); Middle East Bunkering Convention (Dubai); International Bunker Conference (Copenhagen); Maritime Week America (Fort Lauderdale); Singapore International Bunkering Conference and Exhibition; and Posidonia International Shipping Exhibition (Greece). Discussions are ongoing regarding other events as well, so please either log onto our website or speak to our representatives. Autumn sees our partnership with Petrospot continue with IBIA’s Annual Convention in Gibraltar on 7 November. Based on the stunning Sunborn Gibraltar superyacht hotel, it promises to be a spectacular event. We are also continuing to develop our member benefits with discounts on other events, book deals, career opportunities and much, much, more. I look forward to meeting as many of you as possible at the dinner or one of our events throughout the year. Best regards Steve Hoare

Benefits to members as of 1st February 2016

MEMBERSHIP COSTS

Individual membership: £200 Corporate membership: £995 Corporate additional membership: £200

These increases took effect on 1 August 2015. Additional The Board has also decided that the present practice of listing Corporate have Members does not properly and fairly meet members’ needs and some changes ship member of therefore been introduced that will more accurately match the benefits iat. Secretar to its cost; affected members will be contacted directly by the If you have any queries or comments about these changes, then please contact ibia@ibia.net or telephone: +44 (0) 20 3397 3850.

IBIA PUBLICATIONS AND BENEFITS 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 with savings dependent 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 log on to our new website and update them on your members page. The new website is designed so members can easily access and change their own information. This publication is only available to IBIA 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.

World Bunkering Spring 2016

NEW MEMBER BENEFIT S

• A discounted travel clu b that offers cost effective flights • Multiple year discounts 15% discount for 3 years memb ership, (Paid in one instalm ent) – Guarantee no members hip increases for the next 3 yea rs • Meeting location in Cen tral London, with secretarial services (at cost effective rates) • Plus new benefits to be announced in the coming weeks 'Careers and Job informatio n' Further information on me mber benefits is available on our websit

Noticeboard

IBIA noticeboard

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 fuels Please 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.

Global news

Arkas Bunkering operates from two terminals located on the Marmara Sea

Sixth sense Launching a sixth barge was a logical step for Arkas Bunkering, which sells about 1 million tonnes of fuel a year

Turkey’s biggest bunker vessel

Extended credit lines for Peninsula

Engineers on ‘magic pipe’ charges

Arkas Bunkering’s sixth barge, the Cesme, entered service in November and is now the largest operating in Turkey. At 90 metres and 4.137 dwt, the new vessel, like the other five in the Arkas fleet, is Turkish-flagged and double-hulled. Arkas Bunkering operates from two terminals located on the Marmara Sea, which, it says, provide bunkers for a third of all ships refuelling in Turkey. According to a report published by Turkey’s Energy Market Regulatory Authority (EMRA), Arkas Bunkering purchases the largest amount of fuel from abroad and sells about 1 million tonnes of fuel a year.

Peninsula Petroleum Group (PPG), one of the world’s largest marine fuel suppliers, announced the completion of a two-year extension and increase of its syndicated credit lines. The facilities are led by ING Bank NV together with BNP Paribas and ABN Amro Bank NV (as mandated lead arrangers). Société Générale, The Royal Bank of Scotland International Limited and Macquarie Bank Limited remain as participating banks in the lending syndicate, with the introduction of Santander Group as a new leading lender. Together with a bilateral line from HSBC in Asia, PPG has secured working capital facilities totalling US$ 350 million to further expand its business operations. PPG chief executive John A Bassadone commented: “Our increased facilities constitute strong support from our key funders and provide Peninsula with significant additional liquidity in order to continue executing our business plan of expanding our physical supply locations as well as further strengthening our established commercial network. The increase in bank funding available is a solid endorsement of Peninsula Petroleum’s sustainable and conservative business model, where tight credit management is paramount.” PPG expected to deliver over 10 million tonnes in 2015 and has developed into an integrated oil company over the past two years.

A US federal grand jury, in Greenville, North Carolina, has returned a nine-count indictment charging two engineering officers employed by Greece-based Oceanfleet Shipping with crimes relating to the illegal discharge of oily wastes directly into the sea. The charges against the two Philippine nationals – chief engineer Rustico Ignacio and second engineer Cassius Samson – allege illegal discharges from the 29,513 dwt bulk carrier Ocean Hope. According to the indictment, in 2015 Samson bypassed pollution prevention equipment with an unauthorised hose connection or ‘magic pipe’ to discharge oil sludge directly into the sea. Samson allegedly also ordered crew members on numerous other occasions to pump oily mixtures from the vessel’s bilges into the sea using the ship’s general service pump rather than processing these mixtures through the vessel’s pollution prevention equipment The indictment further alleges that Ignacio and Samson ordered subordinate crew members to lie to the US Coast Guard during an inspection in Wilmington, North Carolina. The crew members were allegedly instructed to deny knowledge of the connection of the pipe used to discharge sludge and

New operation in Israel

Island Petroleum has started supplying bunkers at Haifa, Israel. The Cyprusbased Island Oil Holdings subsidiary operates the 2012-built, 1,316 dwt, double hulled/bottom bunker barge, Lerrix. The company says the vessel is “fully equipped with boiler, heating coils, blender, flow meters, bowthruster and fenders”. Island Petroleum delivers bunkers in Haifa port and, for vessels calling for bunkers only or waiting for orders, at the outer roads. It says it can supply intermediate fuel oil grades from CST 380 down to CST 30 and 0.1% sulphur marine gas oil.

World Bunkering Spring 2016

Global news 28

to tell coast guard that the oily water separator had been used as required under international law to process oily mixtures before discharge when they knew it had not. Both men were charged with violating the federal Act to Prevent Pollution from Ships for failing to record overboard discharges in the vessel’s oil record book, conspiracy for their agreement to violate federal law, obstruction of justice for presenting false documents intended to deceive the US Coast Guard and witness tampering for ordering subordinate crew

members to mislead and lie to the coast guard. Samson was also charged with false statements and obstruction of justice for lying to US Coast Guard inspectors about the discharges. Wreck’s bunkers cause concern

Some 560 tonnes of bunker fuel are believed to be in the wreck of the cargoship Thorco Cloud, which sank with the loss of six of her 12-strong crew following a collision in Indonesian waters in the Singapore Strait. On 16 December, the Cayman Islands-registered chemical tanker Stolt

Commitment and Antigua and Barbuda flagged Thorco Cloud collided in the eastbound lane of the traffic separation scheme in the Singapore Strait. The incident happened six nautical miles north-west of Batam. In late December, the sunken ship’s owner, Denmark-based Thorco, said the first diving survey showed that the vessel had broken into two parts, 1,600 metres apart. “Only minor oil leakage has been reported, and the situation is under control by the local authorities. A wreckage and bunkers removal plan is currently being devised.”

LNG bunker barge set for February launch

Tolson sets up consultancy

North America’s first LNG bunker barge is scheduled to be launched in February, Clean Marine Energy LLC announced following a tour of Conrad Shipyard in Texas, hosted by the US Coast Guard (USCG) and the Society of International Gas Tanker and Terminal Operators (SIGTTO). Some 200 industry partners participated in the tour, held in conjunction with the USCG’s Liquefied Gas Senior Executive Forum at USCG Sector Houston on 9 December. Construction of the 2,200m3 barge hull is nearly complete, and abrasive blasting and painting is scheduled to begin in the coming weeks. The LNG Mark III Flex cargo containment system, designed by Gaztransport & Technigaz, is scheduled to be installed straight after the February launch. The Bristol Harbor Group-designed and American Bureau of Shipping-classed vessel will be outfitted with the Conrad’s custom-fabricated 20m bunker mast under Gaztransport & Technigaz licence, which will enable the barge to service a wide variety of vessels. The barge will also be equipped with six DH Industries StirLNG-4 cryocoolers, capable of handling 125% of the boil-off gas. These are in addition to the many other systems specifically designed for this vessel’s LNG bunkering application to deliver the coldest LNG to the end-user. The barge will be delivered to Jacksonville, Florida, in the third quarter of 2016 to service TOTE’s newbuild Marlin class container vessels and other LNG-powered vessels in and around the Port of Jacksonville and the south-east. The Isla Bella, the first of two ships, arrived in Jacksonville in early December and is currently operating a liner service to San Juan, Puerto Rico. Sistership the Perla Del Caribe is anticipated to enter service in the second half of February 2016.

Well-known bunker industry figure Adrian Tolson has set up a consultancy, 20|20 Marine Energy, to “help companies create and implement strategies for purchasing and selling marine energy, as well as supporting the development of bunkering infrastructure”. According to Tolson, 20|20 works with shipowners, operators and financial institutions on the buy-side, fuel suppliers and traders on the sell-side, as well as ports, and local and national governments on developing infrastructure projects. The company also provides research and insight services. Tolson’s 30 years in the bunker business include driving Chemoil Energy through to initial public offering (IPO), while as vice-president and general manager he established OW Bunker’s physical supply operation in the US. He says that 20|20 also has a range of partners and advisers with expertise in marine environment, risk management, sales and marketing and change management. “The shipping industry and related sectors face unique complexities and challenges, but also significant opportunities,” said Tolson. “20I20 has been established to help all companies and organisations that are impacted by the process of purchasing and selling marine energy, as well as the infrastructure that supports this. Our focus is on providing strategic, practical and independent counsel, combined with market-leading implementation services that helps our clients to reduce financial and regulatory risk, increase profitability and enterprise value, as well as optimising their market positioning.”

World Bunkering Spring 2016

Environment

What next? The Paris climate change agreement left out shipping and aviation, but the big debate on a global CO2 emissions target and cash contributions to any climate change fund are just beginning

hile the International Maritime Organization (IMO) welcomed the “historic achievement” of the 2015 Paris Climate Change conference (COP21), some environmental groups are now questioning IMO’s leadership of the global shipping industry on climate change issues. IMO noted that the Paris deal identifies a clear goal of “holding the increase in the global average temperature to well below 2°C above pre-industrial levels and to pursue efforts to limit the temperature increase to 1.5 °C above pre-industrial levels”. The UN agency said it had contributed, and would continue to contribute, to global greenhouse gas reduction goals. It said: “IMO and its member states recognise the important need for international shipping, which accounts for 2.2% of CO2 anthropogenic emissions, to support global efforts to mitigate the impact of climate change.” In a statement, the International Chamber of Shipping (ICS) said: “The complexity and scale of the Paris agreement means that many of those involved may be disappointed by certain aspects, including the absence of explicit text referring to international shipping. At the start of the negotiation, ICS had hoped there might have been

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an acknowledgement of the importance of IMO continuing to develop further CO2 reduction measures, applicable to all internationally trading ships, and implemented and enforced in a uniform and global manner.” ICS continued: “Time finally ran out to agree a compromise on international transport acceptable to all nations, but nothing is really lost. No text is probably preferable to some of the well intentioned words being proposed at the very end of the conference, which few people understood and which could have actually greatly complicated further progress at IMO,” insisted ICS secretary-general Peter Hinchliffe. “The member states at IMO are the same nations that were present in Paris, but with officials that have a deep level of maritime expertise. Intensive work at IMO will continue with the global shipping industry’s full support.” Despite the brave words, both shipping industry bodies and environmental groups were disappointed that the Paris deal contained no reference to shipping or IMO. The industry wanted confirmation that IMO would stay in charge, while the green lobby wanted an explicit commitment to a CO2 emissions target. An ICS spokesperson told World Bunkering: “We now expect pressure from the EU to develop a type of

shipping market-based measure [to raise money to combat the effects of global warming] that most of the industry will not like – such as an operational efficiency index used for charging – to be enormous, if not at IMO then at regional level, which would be a disaster for global uniformity. Many in [the European] Parliament now want to extend the EU emissions trading system (ETS) to shipping, which would create serious market distortion and a row with the EU’s trading partners.” In its statement, ICS stressed that the shipping industry remained committed to ambitious CO2 emission reduction across the entire world merchant fleet, reducing CO2 per tonne-km by at least 50% before 2050. “I am sure IMO member states will now proceed with new momentum to help the industry deliver ever greater CO2 reductions, as the world moves towards total decarbonisation by the end of the century,” said Hinchliffe. ICS said it would “engage meaningfully in discussions at IMO – expected to begin in earnest at a critical meeting in April 2016 – about the possibility of agreeing a CO2 reduction target for shipping”. It added that it was also pushing for IMO to finalise a global CO2 data collection system for ships, which ICS would like to see made mandatory as soon as possible, prior

Environment 30

to IMO deciding on the necessity of additional actions such as a developing a market-based measure. ICS also asserted that dramatic CO2 reductions from shipping will only be guaranteed if further regulation continues to be led by IMO. However, environmental lobby groups seem set to try to undermine IMO and promote regional measures on shipping. On the Saturday of the Paris deal, pressure group Transport & Environment (T&E) said: “Today’s silence on what the UN agencies IMO and ICAO [International Civil Aviation Organization, which regulates aviation] should do leaves the question of responsibility in limbo. ICAO and IMO have failed to act to date, rightly earning them a ‘Fossil of the Day’ award at this Conference of Parties. [During] the next 10 months they have an opportunity to prove the sceptics wrong. ICAO will hold its triennial assembly in October 2016, and IMO will hold meetings of its Environment Committee in April and October 2016. Failure to agree on serious measures will put the question of who is responsible squarely back on the table. “The agreement now leaves it unclear which actors have responsibility to reduce emissions from these sectors. If ICAO/IMO wish to retain a role, they must urgently scale up their ambition. Otherwise, states and regional actors will have a right to adopt measures to ensure these sectors contribute to the 1.5°C target,” claimed T&E spokesperson Andrew Murphy. “While these sectors have received an opt-out from the text of the agreement, they must not receive an opt-out from its long-term ambition. We will redouble our efforts to ensure these industries contribute to the 1.5°C target, either through measures at ICAO/IMO or at regional or national level.” In similar vein, Carbon War Room’s senior associate, Victoria Stulgis, commented: “Despite calls to regulate shipping from the European Parliament, Denmark and the Marshall Islands, as well as multiple industry leaders including Maersk, it is disappointing to learn that shipping has not been included in COP21’s global climate change agreement.”

She added: “Despite the outcome at COP, it is vital that the shipping industry recognises the importance and urgency of addressing greenhouse gas emissions, to effectively contribute to the global benchmark of well below 2°C. The industry must also recognise that the eyes of the world are now watching what shipping will do next. At the [IMO’s] next Marine Environment Protection Committee session, only a few months away, shipping is likely to come under scrutiny yet again.” However, in a upbeat statement, retiring IMO secretary-general Koji Sekimizu said: “The Paris agreement represents remarkable progress and builds on the 1992 Rio Earth Summit, which itself was a significant step forward. The absence of any specific mention of shipping in the final text will in no way diminish the strong commitment of IMO as the regulator of the shipping industry to continue work to address greenhouse gas emissions from ships engaged in international trade.” He added: “To date, IMO is the only organisation to have adopted energyefficiency measures that are legally binding across an entire global industry and apply to all countries. Mandatory energy efficiency standards for new ships, and mandatory operational measures to reduce emissions from existing ships, entered into force under an existing international convention (MARPOL Annex VI) in 2013. By 2025, all new ships will be 30% more energyefficient than those built last year (2014). This is more than a target; it is a legal requirement, and demonstrates that IMO is the correct and only forum to identify solutions and an appropriate pathway for international shipping to decarbonise with the rest of the globe.” Sekimizu said that continuing efforts would include: development of a global data collection system for ship’s fuel consumption, to be discussed in detail at the next meeting of IMO’s Marine Environment Protection Committee in 2016; further consideration of a totalsector reduction target for greenhouse gas emissions from international shipping, as proposed by the Marshall Islands in 2015; and continued investigation of additional mechanisms for ships to support the implementation of the Paris agreement.

During COP21, IMO provided an update of its work to address greenhouse gas emissions from bunker fuels used for international shipping. Specifically, IMO reported on: its work on further developing guidelines to support the uniform implementation of the regulations on energy efficiency for ships; its efforts with regard to technical co-operation and capacity building to ensure effective implementation and enforcement of the aforementioned new regulations worldwide; and, importantly, activities to support promotion of technical co-operation and transfer of technology relating to the improvement of energy efficiency of ships. At IMO, the UN agency said that the governments of the world come together to develop the regulatory framework for international shipping, which forms the basis for investment decisions. It declared: “There is a clear imperative now for IMO’s member states to rise to the challenge set by the Paris agreement.” Sekimizu added: “I now encourage governments to bring the spirit of the Paris agreement to IMO and come forward with new, creative proposals and to approach them in a constructive and cooperative manner.” He said the challenge set by the Paris agreement also extended to ship designers and marine engineers to develop the technological solutions; to those who operate and manage ships; to seafarers and those who educate them; and, importantly, to the business of shipping, which needs to ensure that investment in innovative low-carbon technologies is properly incentivised. The now former IMO secretarygeneral concluded: “As the Paris agreement once again highlighted, there is a clear imperative that development must now be truly sustainable. As a facilitator of global commerce, international shipping is indispensable to the world, and IMO member governments, observer organisations and wider civil society will continue to drive the progress made in Paris.” While that is the general view of the shipping industry, keeping IMO at the helm and staving off EU-led regional agreements will a big challenge in 2016.

World Bunkering Spring 2016

Traders

Tough trading Although times have been tough for the bunker industry as a whole, traders have been expanding their operations into new markets and there have been a number of acquisitions

WFS sees “rebound”

Major fuel trader World Fuel Services Corporation (WFS) saw a revival in marine fuel sales in the third quarter of last year. The company’s marine segment generated gross profit of $48.6 million, up from $41.8 million in the previous quarter, although this was still a decrease of $0.8 million or 2% yearon-year. Net income for all segments of its business, including aviation and land, totalled $49.6 million or $0.71 diluted earnings per share compared to $55.7 million or $0.78 diluted earnings per share in the third quarter of 2014. “We were pleased with our results this quarter as we experienced strong seasonality in our aviation business as well as a rebound in both our marine and land segments’ profitability,” said the company’s chairman and chief executive officer, Michael Kasbar. He added: “Our core businesses remain solid, and we continue to focus on our long-term strategy to drive growth and deliver value to our customers, suppliers and shareholders.” New acquisition

Italy-based Fratelli Cosulich recently announced that it has acquired an 100% stake in the Chemoil Monde-Export bunker trading company in Monaco. The acquisition is part of a growth plan initiated by Fratelli Cosulich, involving

World Bunkering Spring 2016

research-based companies that share the same values and the same longterm vision, the company said. According to managing director Timothy Cosulich: “One of the reasons behind this acquisition is... the fact that the customer portfolio of Chemoil Monde-Export is complementary to that of our office in Genoa.” Fratelli Cosulich has an international network of offices located in New York, Genoa, Singapore, Hong Kong, Tianjin and Monte Carlo, with a staff of over 20 brokers and experienced traders. In the port of Singapore, where the company also offers physical distribution, it operates with four barges: two of these are owned by the company and have a capacity of 6,500 tonnes, while the other two are on charter. “We currently provide approximately 200,000 tonnes of bunkers per month in the Asian port, but our long-term goal is to further increase our activities in this business segment. If necessary, and at the appropriate time, we will certainly be ready to seize opportunities to further increase the fleet at our disposal.” Peninsular credit lines

Marine fuel supplier Peninsula Petroleum Group (PPG), one of the world’s largest marine fuel suppliers, recently announced the completion of

a two-year extension and increase of its syndicated credit lines. Together with a bilateral line from HSBC in Asia, PPG has secured working capital facilities totalling US$350 million to further expand business operations. Chief executive John A Bassadone commented: “Our increased facilities constitute strong support from our key funders and provide Peninsula with significant additional liquidity in order to continue executing our business plan of expanding our physical supply locations as well as further strengthening our established commercial network. The increase in bank funding available is a solid endorsement of Peninsula Petroleum’s sustainable and conservative business model, where tight credit management is paramount.” Peninsula Petroleum Group will deliver in excess of 10 million tonnes in 2015. During the past two years, it has developed into an integrated oil company, with a presence in cargo markets, shipping logistics, storage and physical supply, as well as maintaining its traditional retail bunkering model. This year will mark the 20th anniversary of the organisation, which currently features 20 global offices and physical supply regions, including the Strait of Gibraltar, the Amsterdam-RotterdamAntwerp (ARA) region, Panama and the US Gulf Coast.

Traders

Chinese e-commerce platform

Hong Kong-listed Brightoil Petroleum (Holdings) Limited has launched Brightoil Online, China’s first “internet-petroleum-finance” comprehensive energy and financial e-commerce platform. Brightoil Online, based on the storage and sale of petroleum, provides a range of novel financial products. Its aim is to provide a brand new consumption model for customers and to build a comprehensive consumption database. This combines petroleum and finance, transforming petroleum into hard currency for the public, and providing them with a diversified experience of oil usage and consumption. As well as targeting corporate customers to launch a business-to-business (B2B) model and an online to offline (O2O) model, Brightoil Online also plans to launch an innovative consumer-to-business (C2B) model, taking the lead in innovative development of the petroleum industry. Long term, the company plans to offer, among other things, large-scale petroleum product storage, terminals, oil tankers, transportation and distribution, retail and wholesale, duty-free bunkering, a commercial prepaid card, transaction and financial service integration in its e-commerce ecosphere. At this stage, the primary four product and service categories to be launched are CROWDOIL, CLOUDOIL, CORPOIL and the Marine Bunkering online platform. Aegean results

New York Stock Exchange-listed Aegean Marine Petroleum Network announced financial and operating results for the third quarter, ended in November. Nikolas Tavlarios, Aegean’s president, said that “Aegean Marine’s market leadership position and strong financial performance provide a solid foundation for continued growth and diversification. We are excited about the new growth opportunities and revenue streams we are pursuing, and we continue to shift our mix to higher return products, such as lower sulphur fuels and blended finished products. Our Fujairah Oil Terminal continues to perform well, operating at excellent efficiency levels and is currently at about 86% capacity. During the quarter, we expanded our customer offerings to include cargo sales, a new area of investment for Aegean Marine that is expected to provide us with an additional low-cost revenue stream.” The company reported a total revenue of US$1.1 billion for the third quarter of 2015, a decrease of 40.2% compared with the same period in 2014, owing to the drop in oil prices. Voyage and other revenues increased to $21.2 million, a rise of 14.8% compared with the same period in 2014. Gross profit increased by 2.2% to $84.4 million in the third quarter of 2015, compared with $82.6 million in the same period in 2014.

Trading growth up at Cleartrade

Cleartrade Exchange (CLTX), the Singaporean Futures Exchange, has announced significant growth in traded volumes in 2015, despite challenging conditions in many of its underlying commodity markets. The exchange, which is part of EEX Group, saw 3.16 million lots traded across all products in 2015, an increase in total volume of 37% against Richard Baker, chief executive of CLTX, 2014. which has seen significant growth In addition to growing exchange volumes, the organisation’s technology business reported a 79% volume increase over 2014. This was driven by greater use of its infrastructure by inter-dealer brokers. “I am delighted that we have been able to win more volume from our markets in 2015 and cap another year of growth for the business,” said Richard Baker, chief executive of CLTX (pictured above). “Although conditions and prices in the main underlying markets of shipping, ferrous metals and fuel oil have been depressed in 2015, we have seen more organisations taking advantage of CLTX’s value as a regulated solution offering best execution, innovative technology and outstanding customer service.” CLTX has now processed over 7 million lots through more than 110,000 individual trade transactions since its first trade in 2011. 2015 saw particularly strong growth in the fuel oil market, with the exchange reporting a 49% increase in total lots traded. Richard Heath, head of sales and market development, attributed this to a new liquidity feature. “The addition of a new fuel oil market maker in June has enabled us to create a really compelling offering for organisations managing risk in this sector. We believe that our flat price coverage is unique in the market. With firm two-way prices available to trade at the same rate regardless of clip size, securely on exchange for 12 hours each day, we expect that many more organisations will take advantage of our offering in 2016.” Forward freight agreements and iron ore volumes also grew strongly. “In 2015, we worked continuously to improve the efficiency of our trade registration solution and made it easier for our clients to interact with us through the launch of CLTX Portal, which is our single entry point unifying all of the exchange’s products and services,” explained Zhi Rui Ang, CLTX’s operations director. “Our ambition of reducing risk for counter parties by achieving 100% straight-through processing to multiple clearing houses from a single easy-to-use trade registration platform, which all brokers can access, is closer than ever before and has seen us grow our business as both a futures exchange and technology provider to our inter-dealer broker partners,” he added.

World Bunkering Spring 2016

Fuel quantity

Quantity queries Getting the right amount of fuel onto the vessel has always been an important part of the bunkering process and one that is increasingly the target of scrutiny – not to mention disputes Flow metering

ExxonMobil has introduced the first independently accredited mass flow metering system (MFMS) in Hong Kong, following successful introduction of the system in Singapore. The fuel delivery system can help save vessel operators up to an estimated three hours and US$5,000 per refuelling, while also providing increased transparency and efficiency to the bunkering process. The Hong Kong MFMS has been accredited by Lloyd’s Register, in partnership with A*STAR’s National Metrology Centre, the national measurement institute of Singapore, and Metcore International, a consultancy with expertise in MFMS for bunkering. The technology directly measures fuel mass instead of volume, in line with industry best practice guidelines, to provide a prompt and accurate measurement reading for vessel operators. The seals used are also validated by independent parties to prevent any misuse of the system. Benefits for vessel operators, suppliers and regulatory bodies include enhanced accuracy when compared to typical tank dipping – within +/- 0.5%, increased efficiency by measuring fuel mass, and reduced uncertainties related to variables including density and temperature. Following accreditation by Lloyd’s

World Bunkering Spring 2016

Register, the MFMS has been installed on the time chartered bunker vessel, Anshing, to deliver bunker fuel oil ISO8217:2012 grades for RMG 380 and RMK 500. “The expansion of ExxonMobil’s accredited mass flow metering system capability will help to ensure buyers receive the fuel they pay for,” said Deepankar Banerjee, Asia Pacific marine fuels sales manager. “ExxonMobil continues to lead the industry in the implementation of mass flow metering systems, bringing an accredited system to Hong Kong after its success in Singapore.” ExxonMobil achieved a number of industry firsts in Singapore: it was the first to market with an MFMS approved by the Maritime and Port Authority (MPA), the first to guarantee delivery by MFMS, and the first to deliver over one million metric tonnes via an MFMS. Today, all ExxonMobil fuel deliveries in Singapore are supplied by barges equipped with the MPAcertified MFMS. Lloyd’s Register’s regional consultancy manager, Douglas Raitt, commented: “The use of mass flow metering systems when bunkering fuel is a significant improvement, ensuring compliance. Buyers now have peace of mind that they are receiving the correct quantity of fuel for which they are paying.”

Mandatory regime

Mandatory use of mass flow metering in Singapore for the existing fleet is set to come into force in January 2017, and, according to Chris Hill, North American business development manager for Emerson Process Management, the final draft of the MPA’s technical requirements is due in the first quarter of this year. There are approximately 150 heavy fuel oil (HFO) barges in Singapore and 35 barges certified to date . Some vessel owners frequenting Singapore have opted not to install meters on their vessels, he said, and many owners still want the meter as a check meter and for ports which don’t have meters. There is “lots of work ahead”, he told the recent IBIA conference in Cancún. IBIA’s immediate past chairman, Nigel Draffin, meanwhile, outlined some of the new techniques being developed. These included LiDAR tank calibration and mass measurement, new Coriolis techniques and air entrainment sensors. LiDAR is a technique using laser light for ranging, distance measurement and 3D modelling. It is currently expensive for use in level gauging, but the costs are falling fast, Draffin said. It is seen as a very promising tool for preparing tank calibration tables. It also has potential for remote sensing

Fuel quantity

of atmospheric pollutants like sulphur and nitrogen oxides. Twenty years ago, Coriolis was suggested and then dismissed for fuel mass flow measurement. Its weakness was dealing with multiphase flow, he said, but “novel software techniques have brought the multiphase flow accuracy to a couple of per cent accuracy and this is rapidly improving. The current systems can meet the overall accuracy requirement of 0.5% and it is expected that this will improve towards 0.2%. Inline density measurement, meanwhile, provides a continuous readout of fluid density in pipelines with distillates, residual and liquefied natural gas (LNG) applications, whereas CiDRA’s SONARtrac uses sonar techniques to assess presence of entrained air or vapour. It is already used in refineries and crude oil production systems, and sensors are clamped onto the outside of pipes. Meter issues

Insatech Marine has highlighted some of the concerns that surround the introduction of mass flow meters. It quotes Parry Oei, director of the

Maritime and Port Authority of Singapore, as saying that one of the issues was to persuade shipowners that mass flow meters were a good thing. Testing of mass flow meter technology has been key to the process of gaining the trust of shipowners for what is essentially a new technology for the industry. One of the problems, Insatech suggests, has been fraud involving bunkers. Another is the cost of installing the technology. “At Insatech Marine we consider Coriolis mass flow meters to be the best and most reliable choice when it comes to measuring bunkers. However, we have taken a step further to also automate the bunker process with alarms if air or density is changed during the bunker operation.” Code of conduct

Bunkering operations in Singapore need to comply with the Maritime and Port Authority code of practice, which aims to help avoid disputes. Gard P&I Club says that chief engineers should ensure that bunker code sampling procedures are carried

out. “During a bunkering operation, in addition to sample taking, chief engineers should follow these key steps in measuring quantities: • Inspect/gauge the non-cargo tanks and verify the cargo officer’s declaration before bunkering; • Verify the reference heights of the bunker tanker’s cargo oil tanks and check the measurement equipment, such as the sounding tape and thermometer; • Witness and confirm the opening tank gauging and cargo temperature readings of all cargo oil tanks; • Determine the trim and list of the bunker tanker; • Witness and confirm the closing tank gauging and cargo temperature readings of all cargo oil tanks; • Verify the delivered quantity in the bunker delivery note prepared by the cargo officer.” The new rules in force for mass flow meters from January 2017 in Singapore are expected to improve transparency in the bunkering process and to reduce any illegal bunkering activities, the club adds.

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A QUESTION OF DENSITY The issue of marine fuel density can cause some confusion. Here, Alison Stodolnic, marketing manager at Geos Group Ltd, provides answers to the most frequently asked questions. WHAT IS DENSITY?

The density of a fuel is its weight in metric tonnes (mt) divided by its volume in cubic metres (m3) at a temperature of 15°C. WHAT IS AN ACCEPTABLE DENSITY RANGE?

The international standard for the 1,000 parts per million (ppm) marine gas oil that we supply is: • Marine 0.1% Sulphur Gas Oil to BS2869:2010 – Part 2: Class D and ISO8217:2010 Grade DMA. • This standard specifies a typical density range of 0.82 – 0.88 mt/ m3 (maximum 0.89) at 15°C. Most commonly, it falls between 0.85 and 0.87. WHY DOES DENSITY MATTER?

Fuel with a high density weighs more and generates more energy than the same volume of fuel with a low density. Therefore, when comparing prices, we need to know the differing densities of the products. WHY IS LOW-DENSITY FUEL NOT HELPFUL?

Low-density fuel costs less by volume (per m3) because it weighs less and generates less energy than high-density fuel. Therefore, in terms of value for money, it has absolutely no advantage.

Furthermore, low-density fuel is more likely to have come from stock that has been commingled with 10ppm fuel – primarily for inland use. The risks involved with this are: • Ultra-low sulphur (10ppm) fuel can cause ignition problems in older vessels. • The flashpoint of 10ppm inland fuel only needs to be 56°C – but if your vessel is burning fuel that ignites below 60°C, it is below specification for marine use. • Fatty acid methyl esters (FAME) or biodiesel may be present in 10ppm fuel, but it is not allowed in marine fuel and is likely to invalidate your insurance policy.

DOES THE DENSITY OF FUEL EVER CHANGE?

Yes. Density decreases if the temperature goes up, and vice versa. So a density measurement is meaningless without a corresponding temperature reading. WHAT DO WE RECOMMEND?

Four tonnes of fuel with different densities have different volumes, but cost the same and generate the same amount of energy, as you can see in the table below. Therefore we recommend that you always ask for your fuel prices – and compare like-for-like competitive quotes – by the tonne.

Weight in tonnes

Density at 15°C

Price per tonne US$

Volume in cubic metres (m3)

Price per m3

1.00

0.88

$450

1.14

$396

1.00

0.86

$450

1.16

$388

1.00

0.84

$450

1.19

$378

1.00

0.82

$450

1.22

$369

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Lubricants

Adapting to new challenges David Hughes takes a look at what is driving the busy lubricants scene

ot so long ago, little happened in the marine lubricants sector – ships burnt the same fuel as they had for years and used the same lube oil. Not now. A wide range of fuels, often with ships switching from one to another, have spurred a rapidly developing and complex response from lubricants producers. World Bunkering asked Total Lubmarine to explain the recent shift towards higher base numbers (BN). The company explained that, with evermore efficient engines and changing fuel types, marine lubricant suppliers have developed lubes with higher BN than ever before to prevent engine damage. Two years ago, Total Lubmarine launched Talusia Universal 100 in response to problems shipoperators were encountering using fuel with a high sulphur content in modern two-stroke engines. At the time, this was the only BN100 lubricant available worldwide, and was welcomed by original equipment manufacturers (OEMs), who were concerned about the effects of cold corrosion on the latest engines. To reduce fuel consumption, the newer two-stroke crosshead engines are designed to run at lower speeds than previous models, create higher pressure in their combustion chambers and frequently operate at low loads

for longer periods. This means there is a higher risk of acid condensation on cylinder walls. If this is not dealt with, it leads to severe cold corrosion, especially when high-sulphur fuel is used. A high BN lubricant is needed for use in conjunction with high-sulphur fuels, as this can neutralise sulphuric acid and prevent damage to cylinder liners. The requirement for high BN lubes – and the OEM recommendations that stipulate them – look set to remain as long as current engine builds and specifications stay the same. OEMs have to cover their liabilities. A new level of complexity was introduced in January 2015, with the entry into force of a regulation making it compulsory to use fuel with a sulphur content of 0.1% or less within emission control areas. The chemical composition of conventional high BN lubricants, which mainly use calcium carbonate (CaCO3) basic detergents, means that when there is little sulphuric acid to neutralise – as is the case when using a low-sulphur fuel – a build-up of CaCO3 deposits can occur. This causes engine wear in the form of polished surfaces and clogging in other components, such as selective catalytic reduction systems (SCRs). Using a conventional high BN lube with low-sulphur fuel leads to problems.

To rectify this problem and do away with the need for ships to carry two to three different types of lubricant, Total Lubmarine has developed and successfully tested a new lubricant, Talusia Optima, which uses ash-free neutralising molecules chemistry (ANM), to efficiently control CaCO3 deposits when a low-sulphur fuel is being used. In essence, Talusia Optima is a high BN lubricant, with the largest operating spectrum available, and can be used in conjunction with fuels ranging from 0.1%-3.5% sulphur content. A deepsea vessel using Talusia Optima temporarily sailing in an ECA zone will have no need to change lubricant when it changes fuel. The pending global sulphur cap, which could come into force in 2020 rather than 2025, and the continuing drive for engine efficiency on the part of OEMs, necessitate the continuing development of flexible, high BN lubricants able to assist smooth engine operation using a wide range of fuels. ANM chemistry has the ability to facilitate this development in a way that conventional cylinder lubrication chemistry cannot. It is, of course, not just Total Lubmarine that is developing new lubes – all of the manufacturers are. For example, ExxonMobil has launched Mobilgard 300 C, a high-performance system oil for two-stroke, crosshead

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“Mobilgard 300 C is a highperformance system oil that is formulated to optimise the performance and extend the life of slow-speed marine engines,” said ExxonMobil Marine Lubricants’ global field marketing manager, Iain White. “It has been developed with a proprietary detergent system to ensure it delivers enhanced engine cleanliness, and helps vessel operators increase reliability and reduce operating costs.” Meanwhile, global lubricants manufacturer Castrol has announced the launch of Cyltech ACT, a new cylinder oil specifically designed for vessels operating in ECAs using lowsulphur fuels (including liquefied natural

Before and after: Mobilgard 300 C delivers enhanced crankcase cleanliness, which helps to prevent build-up of piston undercrown deposits

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gas), where a low BN is required. Castrol says the new lubricant reflects its ongoing commitment to developing a tailored and informed cylinder oil strategy that helps shipoperators to successfully manage the complexity of transitioning ECAs. Castrol says: “Cyltech ACT utilises Ash Control Technology (ACT), which minimises the risk of ash build-up. Preventing hard ash build-up is essential for protecting critical parts of the engine when burning low-sulphur fuel oil. Cyltech ACT has a BN of 16 and creates over 30% less ash than a 25BN oil[1], whilst at the same time delivering excellent ring-zone cleanliness. As a result, Cyltech ACT has Letters of No Objection from the major engine manufacturers and has performed exceptionally well in engine tests to date.” According to Castrol, Cyltech ACT will be available in Singapore, the Amsterdam-Rotterdam-Antwerp (ARA) area and key US ports by the end of Q1 2016. Other countries and ports will follow throughout 2016. In another development, container shipping line United Arab Shipping Company (UASC) and the Dubai-based marine lubricant specialist Lukoil Marine, part of Russian oil company Lukoil, have signed a lubricant supply agreement covering vessels from UASC’s advanced newbuilding programme. UASC is currently implementing one of the industry’s largest and most technologically advanced newbuilding programmes, with 17 new vessels on order. Six 18,800 teu containerships, said to be the ‘greenest’ in the world, are on order, along with 11 15,000 teu containerships. Lukoil Marine Lubricants has already supplied eight of the 17 containerships with advanced lubrication solutions. Lukoil Marine will equip UASC’s vessels with iCOlube® – an intelligent cylinder oil lubrication unit, optimising the performance and overall efficiency of vessel engines. The manufacturer claims iCOlube® offers environmental benefits, such as reductions of CO2 equivalent by up to 13%. June Manoharan, managing director of Lukoil Marine Lubricants, said: “UASC is a strategic customer for us in the Middle East and we are very proud to be the lubes suppliers for their modern fleet.”

Lubricants

marine diesel engines operating under severe conditions. It says that, compared with conventional system oils, Mobilgard 300 C offers superior engine cleanliness, better engine protection and longer oil life. Formulated with a unique detergent system, Mobilgard 300 C delivers enhanced crankcase cleanliness, which helps to prevent build-up of piston undercrown deposits. The new system oil performs well even in the presence of moderate amounts of contamination by cylinder oil or heavy fuel oil. In addition, its anti-wear additive system provides excellent protection for highly loaded engine parts, such as gear drives and bearings.

New fuels

Fuelling the future New fuel products coming on the market have been specifically designed to meet environmental regulations

he implementation of the 0.10% sulphur in fuel limit within emission control areas (ECAs) has spurred oil companies into producing new fuels, sometimes termed ‘hybrid fuels’, which are closer to heavy fuel oil than distillate ExxonMobil says that its premium marine fuels have been well received by the industry, helping vessels adhere to the 0.10% ECA sulphur cap, while also providing significant performance benefits. Major vessel operators are advocating the use of both ExxonMobil Premium AFME 200 and ExxonMobil Premium HDME 50, and sales continue to grow, the company says. French operator Brittany Ferries has endorsed the operational benefits of ExxonMobil Premium AFME 200 after trials on one of its vessels, the Bretagne. When using marine gas oil (MGO), its engine could not be maintained at the original equipment manufacturer’s recommended temperature of below 40°C in order to reach optimum viscosity. This resulted in a considerable amount of leakage and vapour locks in the fuel pump. ExxonMobil Premium AFME 200’s higher viscosity, compared with MGO, helped solve these problems, the company says. In addition, its low sulphur content enabled the ferry to comply with ECA regulations.

According to Exxon, this heavy distillate ECA-category fuel, has “enabled other customers to minimise the risk of thermal shock complications during switchover between heavy fuel oil (HFO) when entering and leaving an ECA”. This fuel needs to be heated and handled similarly to HFO, which minimises fuel temperature differentials and helps limit thermal shock problems, such as fuel pump seizures and engine shutdowns. ExxonMobil Premium AFME 200 and ExxonMobil Premium HDME 50 are said to have also received positive feedback from independent fuel laboratories. Test results confirmed that the fuels are compatible with both MGO and HFO, with the exception of those with high asphaltene content. As these low-sulphur fuels have a higher viscosity and flashpoint than MGO, they help to reduce operational complexity, providing quick, safe switchovers, in addition to minimising the risk of thermal shock shutdowns. “These lab results demonstrated that, at certain ratios, our Premium ECA-category marine fuels are compatible and stable with both HFO and MGO,” said Rob Drysdale, global field engineering and logistics manager at ExxonMobil. “However, industry best practice is to avoid mixing fuel where possible. Where this is not possible, it is

important to know what fuels you are buying, and to test and handle them accordingly.” Another new fuel on the market is from Lukoil, which has been specially designed for use in ECAs. Other oil companies have also been working on similar 0.10% sulphur products, including Gazprom Neft Marine Bunker and Cepsa. Cepsa recently signed an agreement with alternative fuel supplier Quadrise and leading shipping firm Maersk to trial Marine MSAR®, a lower-cost and potentially environmentally safer alternative to HFO. The trials are due to begin in the first half of 2016, and will see the fuel supplied from the GibraltarSan Roque refinery to Maersk ships following the installation of a multiphase superfine atomised residue (MSAR) manufacturing unit at the site. Installation and operation permits are currently being sought for the new unit. The trial programme is expected to run until the end of 2016, or early 2017, when engine tests on the fuel will be completed. Subsequently, fuel sales from the refinery would begin, following regulatory and commercial approvals. “We are delighted to have this opportunity to meet the fuel requirements of a leading partner in the marine industry with Maersk using

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Biofuels development

Boskalis and Wärtsilä have announced their collaboration with GoodFuels Marine, the first marine biofuel company focused on the global commercial fleet. The consortium will pioneer the development of sustainable “drop-in” marine biofuels for the shipping industry. Netherlands-based GoodFuels Marine and its partners will spearhead a two-year pilot programme to accelerate the development of truly sustainable, scalable and affordable marine biofuels. Biofuels are today not part of the marine

fuel mix that operators and owners can choose from. This means that shipping is missing an opportunity to utilise what should be a price competitive, environmentally friendly fuel option. The programme’s focus will be on delivering and analysing a sustainable feedstock, securing industry certification, and preparing the building blocks for large-scale production. Additionally, the consortium will initiate a global scalability study involving leading shipowners, universities, nongovernmental organisations, ports, biofuel companies and other industry stakeholders. The aim will be to identify tangible opportunities for scaling supply to the world’s commercial shipping fleet. Theo Baartmans, chief operating officer at Boskalis, commented: “We strongly believe in the need for sustainable ‘drop-in’ marine biofuels and their potential as part of the long-term fuel mix, as we see them as an important means of improving the sustainability of the industry. Participating in this pilot and making our vessels available is in line with Boskalis’ approach to seeking innovations that work hand in hand with sustainability.” Roger Holm, senior vice-president, engines, at Wärtsilä Marine Solutions, added: “Wärtsilä, together with its

customers, is highly committed to continuously finding better, more sustainable marine engine solutions. This is another great example of that commitment, whereby we support pioneering innovations that provide shipoperators with greater flexibility and choice about how they can reduce emissions.” Dirk Kronemeijer, chief executive of GoodFuels Marine, believes that the international shipping market “is now ready and well placed to embrace truly sustainable, long-term alternative fuels that can meet all stringent technical, economical and sustainability standards, similar to the sustainable jet fuel market five years ago. As the shipping industry seeks means of contributing towards carbon and wider emissions reduction, we are excited to be part of such a strong consortium with the expertise and motivation needed to establish this new market.” The consortium will test several next-generation biofuels at the Wärtsilä laboratory in Vaasa, Finland, before sea trials are carried out on various vessels within Boskalis’ global fleet. The consortium believes that these biofuels will play a viable role in reducing emissions that no other fuel can currently achieve – without a capitalintensive fleet renewal or retrofitting.

New fuels

a pioneering technology from Quadrise. Cepsa has been a leader in marine fuel technology for many years, and this agreement will help to consolidate our position,” said Federico Molina, head of Cepsa’s refining unit. The MSAR oil-in-water emulsion fuel technology makes heavy hydrocarbon residues easier to use by producing a lower viscosity oil mixed with water. Alternative fuel emulsions, which are water in oil, are produced from heavy fuel oil. By emulsifying refinery residues, as opposed to heavy fuel oil, the refiner is able to create more value, and also a lower-priced fuel, by selling the distillates that would traditionally be blended into its heavy fuel oil.

Bio LPG facility in Rotterdam

Construction has begun on Neste’s renewable product refinery in Rotterdam, which will be the world’s first bio liquefied petroleum gas (LPG) production facility. Production of bio LPG at the e60 million facility will commence at the end of 2016. SHV Energy will market and sell the bio LPG that is produced there. Bio LPG can be used within a full range of existing LPG applications, from transport and commercial heating to retail leisure cylinders. “Today is the start of the building phase of our project to make a new renewable product – bio LPG – a reality. For us, it represents an important step in implementing our renewable product strategy. We have developed an innovative renewable product family, based on our NEXBTL production technology. Bio LPG is the latest addition to our list of renewable products,” said Kaisa Hietala, executive vice-president of renewable products at Neste. According to Fulco van Lede, management board member of SHV Energy, is a versatile fuel that doesn’t involve having to change conventional equipment. “This provides our customers with an even cleaner rural energy alternative

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to the high-carbon fuels that many are dependent on in off-grid areas.” The new facility will have a production capacity of 40,000 tonnes of Bio LPG per year for the European market. SHV Energy will be the exclusive distributor, supplying 160,000 tonnes over four years. Neste launched a low-sulphur marine fuel in 2014. The new low-sulphur marine fuel is stable and compatible with middle distillates. The company says that it does not create problematic bacterial growth in fuel tanks as it does not contain fatty acid methyl ester (FAME).

Handling big data From January 2018, owners of ships calling at EU ports will have to report their annual fuel consumption. This will be another factor increasingly forcing the industry to deal with large amounts of data

apanese classification society ClassNK has established a wholly owned subsidiary, Ship Data Center, to support the utilisation of data gathered from ship operations. ClassNK explains that, thanks to rapid advances in the development of information and communication technologies, it is now possible to collect large volumes of data on a diverse range of items related to ship operations. However, the approach to data capture the classification society claims, is still very fragmented, with similar data being sent to several vendors. In addition, analysis is still being carried out almost entirely on a ship-by-ship basis. To make larger gains, an effective platform capable of centralising and managing such diverse data is essential. However, creating and maintaining this kind of platform is costly, timeconsuming and unrealistic for some organisations. Furthermore, special care needs to be given to the handling of data to ensure confidentiality of information. Hence it is also necessary to establish a secure yet effective platform from an impartial perspective. According to ClassNK, the Data Center consists of a secured shipping operations database, which will serve as an information hub to independently manage the use of big data in the maritime industry. It asserts: “Through

the Center’s integrated data, the industry can maximise the benefits of big data with minimum cost and burden.” Trials of the data centre are set to commence on a container vessel in February 2016, in cooperation with a Japanese shipping company. Various information, including data from the ship’s voyage data recorder and data logger, will be gathered from the vessel. Full operation is scheduled from April 2016. ClassNK says: “Opportunities for future application of the Ship Data Center are infinite. In addition to optimising ship operations and improving condition-based monitoring of machinery, the Ship Data Center could also be used to help the industry overcome current and emerging challenges.” However, the entry into force of the EU monitoring, reporting and verification (MRV) regulation will possibly be the first opportunity for the centre to deal with a really heavy load. The EU requires shipowners and operators to annually monitor, report and verify fuel consumption for vessels of 5,000gt or over that call at any EU port. Data collection will be required from 1 January 2018. The Ship Data Center plans to offer these shipowners and operators a secure and neutral database in which to store and manage these vast amounts of data.

The MRV implementation looks set to generate a lot of work. For example, transport sector emissions verification company Verifavia has been tasked by five shipping companies with performing a pre-verification gap analysis against the European Commission’s MRV rules. DFDS Seaways, Euronav Ship Management, NEDA Maritime Agency, Seaspan Ship Management and Synergy Maritime have all appointed Verifavia to assess their organisations for MRV readiness. Verifavia says that the aim of preverification gap analysis is that, if carried out early, it can identify any compliance and system design issues, enabling correction by the shipping company in a timely manner. Julien Dufour, Verifavia chief executive, said: “As an experienced verification company, we understand that MRV is new to the shipping industry, which is why we are committed to sharing information and partnering with shipowners, operators and managers to help them navigate MRV compliance efficiently and effectively. At present, we are providing pre-verification gap analysis to support shipping companies in becoming MRV-ready.” As part of the audit, Verifavia Shipping assesses the existing data accounting procedures and systems against the requirements of the shipping MRV regulation to identify any potential

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issues and non-compliance. Verifavia Shipping also reviews each company’s voyages, fuel and cargo data collection, and transmission and transformation procedures, and performs preliminary analysis of carbon emissions and activity data. The shipping company’s operational documentation is reviewed to determine whether it contains sufficient details for the implementation of the allowed fuel consumption monitoring methods. Panos Deligiannis, Technical Manager, NEDA Maritime Agency, explained: “The EU’s MRV regulation is now in force and we believe that it is time for the industry to accept that and take proactive measures to understand how we meet the requirements. With Verifavia Shipping, we have engaged with an experienced, independent verifier who is able to accurately identify any

gaps in our ability to achieve compliance as we proactively analyse our process and procedures ahead of time. We have learnt a great deal through the process and have every confidence in their integrity and expertise.” Poul Woodall, director, environment and sustainability, DFDS Seaways, said: “MRV regulation is new and therefore unfamiliar, so we are grateful to Verifavia Shipping for conducting our compliance review. This has been based on interviews, document review, observation of systems and processes, and corroboration of information. The process has required very little investment of our time and resource, but provides us reassurance that we are on track to meet MRV compliance.” Verifavia is now on the European Commission’s shipping MRV subgroup of experts on verification

and accreditation. The objectives of the subgroup are to discuss key technical details regarding verification and accreditation of verifiers, and to feed into the Commission’s work for the preparation of the delegated and implementing acts pursuant to the Regulation 2015/757. The accreditation process is not yet open to potential verifiers of maritime transport. Verifavia says it has been accredited for the aviation sector since 2010, and will apply to The United Kingdom Accreditation Service (UKAS) for extended accreditation as soon as the process has been finalised. In the meantime, Verifavia Shipping is performing pre-verification gap analysis audits as well as independent carbon emissions verification for shipping companies for trial purposes and on an informal basis.

Shipping vulnerable to cyber crime

The shipping industry may not be as well prepared as it should be – or believes itself to be – in terms of countering the threat of cyber-attacks, according to shipping accountants Moore Stephens. In its most recent newsletter, the firm warns that, while fragmented systems and limited connectivity may have served to keep down the incidence of onboard cyber-attacks in shipping, most organisations have shore operations that are susceptible. Moore Stephens says that, as the shipping industry becomes increasingly dependent on technology, and as vessel connectivity improves, these risks will come to the fore. It cautions: “As well as offering opportunity, technology is changing the threat profile. The systems of shipping companies can be accessed electronically by unauthorised people. There is no easy solution.” According to Moore Stephens: “The organisations that best control this threat are those who correctly balance opportunity and risk. Proper understanding of the threat starts with the board of directors and covers all employees, contractors and third parties. It involves integrating risk management, and actively managing cyber security risks as part of the enterprise risk management framework.” Companies that successfully control the threat of cyber-attack, the firm believes, start out by assuming that they have been hacked. They build technology that can not only defend against potential threats in depth but which is also resilient to breaches and detects when an incident is taking place. These companies control risk intelligently and recognise that everyone’s risk is different, blending strong architecture, technical controls, insurance, outsourcing and expert advice to effectively manage such risk. They also understand what information is needed at each level to monitor their security programmes. Companies in the shipping sector that fail to take the cyber security threat seriously run the risk of paying a heavy price. While Moore Stephens was warning about cyber security risks, the Cypriot news service Cyprus Mail reported that a Limassol-based shipowner and one of its fuel suppliers, an African bunker company, had been the targets of a cyber theft, which diverted about US$644,00 to an account in Poland. Interpol is said to be on the case.

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Fighting for market share David Hughes takes a look at some of the main players in the Western Mediterranean bunker scene

ompetition remains fierce in the Western Mediterranean, with bunker hubs reporting mixed fortunes.

Gibraltar

The small UK territory of Gibraltar has reported a good year in tough trading conditions. Although Gibraltar Port Authority (GPA) no longer publishes bunker delivery statistics, its volumes in 2015 were thought to be about 4 million tonnes. A government statement said that, despite the direct and residual effects of the recent economic crisis on shipping worldwide, and increasing competition in the region, the total number of ships calling at Gibraltar for bunkers and the quantity of fuel delivered rose. It continued: “This upward trend is reflected more widely with an increase in the number of both cruiseships – which have increased by over 13% – and superyachts calling at Gibraltar, which have increased by some 60% during this period. The GPA is hopeful that superyachts will increase their stays in Gibraltar once the berthing on the external part of the new marina becomes available for use.” The minister for shipping, Albert Isola, added: “I am delighted to see such a pivotal contributor to Gibraltar’s

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economy grow from strength to strength, particularly at a time when neighbouring ports are reporting a slowdown in activity. The port’s robust performance is testament to the outstanding work of the GPA in its efforts to further improve efficiency and in aggressively marketing the port.” Chief executive and captain of the port Bob Sanguinetti commented: “Although it is early days, this trend reinforces Gibraltar’s position as the Mediterranean’s leading bunker port and its resilience as a centre of maritime excellence.” A well placed source within the Gibraltar shipping community told World Bunkering that several potential projects were being discussed behind the scenes. These involve ashore storage on the North Mole, new lines to allow ex-quay deliveries, and recommissioning the now long-defunct Kings Lines storage tanks. What is public knowledge is that Peninsula Petroleum has plans in hand. In a recent interview with The Guardian, the company’s managing director, John A Bassadone, said: “The future is in the places we’re going to develop; Gibraltar is definitely one of them, and we have already started. We’ve bought new barges which are here, we’ve taken on additional storage, and we also took over BP’s rented storage in Algeciras.”

There has been much discussion about the possibility of liquefied natural gas (LNG) bunkering in Gibraltar. The contract to supply LNG for the new power station has been awarded to Shell, but the company has yet to say if it has bunkering ambitions.

Western Mediterranean

Gibraltar reports increased volumes. © Gibraltar Port Authority

Algeciras

Algeciras saw its bunker volumes decline by about 10% in 2015. In the first nine months of the year, the port supplied 2.4 million tonnes of marine fuel, compared with 2.7 million tonnes during the same period in 2014. The whole-year figure for 2014 was 3.5 million tonnes. One thing Algeciras is not short of is bunker fuel storage capacity, since Vopak opened its oil storage terminal in March 2013. There now several suppliers in addition to the Spanish companies Cepsa Marine Fuels (CMF) and Repsol. These include Peninsula Petroleum, Bomin Group and Aegean Marine Petroleum. In the past year, Peninsula expanded by taking over BP’s rented storage in Algeciras. Meanwhile, emulsion fuel oil company Quadrise Fuels International is working on the supply, installation and commissioning of a Quadrise multiphase superfine atomised residue (MSAR®) manufacturing unit at the San Roque refinery near Gibraltar. Spanish oil company Cepsa and Danish

The trial programme is expected to run until the end of 2016, or early 2017, when engine tests on the fuel will be completed. Subsequently, sale of the fuel from the refinery will commence following regulatory and commercial approvals. “We are delighted to have this opportunity to meet the fuel requirements of a leading partner in the marine industry with Maersk using a pioneering technology from Quadrise. Cepsa has been a leader in marine fuel technology for many years, and this agreement will help to consolidate our position,” said Federico Molina, head of Cepsa’s refining unit.

Ceuta

Occupying a strategic location on Africa’s Mediterranean coast, the Spanish port of Ceuta can deliver bunkers alongside the quay and at the anchorage. While the Port Authority of Ceuta has put annual bunker throughput at nearly one million tonnes, other estimates are about half that. Spanish oil company Cepsa supplies vessels alongside the berth, as does Vilma Oil, which also delivers at the anchorage, until recently using the timechartered tanker Sea Dweller. In July last year, Vilma replaced this vessel with the 4,222 dwt Guanarteme.

Marseille

In what is claimed as a first for France and the Mediterranean, shoreside electrical power for ships at berth – ‘cold ironing’ – has been introduced by the Marseille Fos port authority in conjunction with Corsica and Sardinia ferry operator La Méridionale. The €4.4 million initiative follows several years of studies and was part-financed by national and regional government aid. The facility has been available since October following six months of work to install the quayside power network and adapt the company’s vessels – Kalliste, Girolata and Piana – so that their diesel generators are no longer required during port calls. The port claims that switching to “environmentally friendly” shoreside electricity will reduce noise, fuel consumption and air emissions. For each ship, the change will eliminate CO2 and particle emissions equivalent to more than 3,000 vehicles per day on the 64km route from Marseille to Aix, while NOx emissions will fall by the equivalent of 65,000 vehicles per day.

Western Mediterranean

shipping company Maersk Line are the partners on this project. Quadrise has said that the fuel produced from the unit will used in a sea trial to start early next year, with participating vessels provided by Maersk. “The marine programme developments are very encouraging,” said Ian Williams, Quadrise’s executive chairman. The trials are due to begin in the first half of 2016, and will see the fuel supplied from the San Roque refinery to Maersk ships following installation of the MSAR® manufacturing unit there. Installation and operation permits are currently being sought for the new unit.

Marseille is introducing cold ironing to some berths

World Bunkering Spring 2016

India Gwadar is to see further development with a fresh round of Chinese investment

Mixed fortunes John Rickards takes a look at the bunker sector around the Indian subcontinent

Pakistan

Pakistan’s slow but steady improvement in trade volumes and traffic across 2014 continued through last year across the country’s three main ports –an improvement that can only give further support to the country’s suppliers. The local industry also seems to have shaken off allegations about quality standards that have dogged it on and off – usually from within the sector itself – although the longstanding desire to one day see 380 cSt supplies remains no more than a pipe dream. Karachi Port reported record cargo throughput at 43.42 million tonnes, up 5% on the year before. Ship calls were up nearly 3.5% to 1,732 vessels, with tanker traffic accounting for much of the increase. Gwadar port, meanwhile, has seen further Chinese investment and influence with the signing of a 40-year lease on 900 hectares of land around the port to create a tax-exempt economic zone at the far end of the 2,900km China-Pakistan Economic Corridor (CPEC). With an expected US$1.6 billion investment at Gwadar, and vast infrastructure work due to be carried out, plus a clear intention from China to link the port to its western city of Kashgar, long-term vessel traffic can only increase – and not at the expense of existing port calls elsewhere in Pakistan. While completion of the zone and the rest of the CPEC is some

way off, Gwadar could easily become a key bunkering hub. With an eye on the current state of the country’s fuel market, however, the Dubai subsidiary of Netherlandsbased global oil trading giant Vitol has signed a deal to buy 15% of Pakistan’s Hascol Petroleum, with an option to buy a further 10% within a year. Hascol trades and stores various grades of bunker and transport fuel as well as liquefied petroleum gas (LPG). Given its market value at the time the deal was signed in November, Vitol’s purchase – for which neither company released figures in filings to the Karachi Stock Exchange – would have cost around US$28.5 million. The figure is comparatively small in relation to Vitol Group’s overall turnover, but it is a clear vote of confidence in Pakistan’s fuel market. India

In neighbouring India, burgeoning competition and a drive for greater traffic along both of its coasts are also inspiring increasing confidence. The northwestern state of Gujarat, where fuel sales taxes are low, has seen several proposals for expansion of fuel services at its ports. Kandla Port Trust was given the go ahead in May last year to expand services in its coastal regulation zone, at a time when the state government was itself looking for

the green light to build a new oil jetty at the port. In addition, according to local press reports, the state’s minister, Saurabh Patel, has pushed for the building of a bunkering terminal on Piram Bet, a largely uninhabited island near the beaches of Alang. Patel told the first meeting of the Apex Committee for the Sagarmala programme, an effort to promote port development across India, that the proposal would be part of a “maritime cluster” in the state and would come with a shift to a fuel tax structure similar to those used by the world’s main bunker hubs. In Kerala in the south-west, the port of Vizhinjam has taken the first steps to expanding its bunker services, opening up the possibility of building new facilities to serve alongside a proposed rail connection to Nemom and Balaramapuram, with several oil companies reportedly keen on the idea of expanding into the port, which enjoys a position close to the main east-west routes. In nearby Kochi, a US$33.97 million contract to build a new multi-user liquid terminal in the city’s Puthuvypeen industrial zone was awarded this summer to local company RKEC Projects. Construction is due to be completed by 2017, when the terminal will start operating. It will handle liquid petroleum gas (LPG) exports for Indian Oil Corporation, as well as being

World Bunkering Spring 2016

India

used for bunker operations. Kochi is still considering the launch of LNG bunkering operations at its gas facility, run by Petronet LNG. Likewise, another new bunkering facility is due to be built as part of a port development at the Keralan village of Azhikode. The addition of bunkering facilities was announced last summer, with construction due to begin once channel dredging was completed. Things are less rosy on the country’s eastern seaboard. Kamarajar Port has dropped plans to upgrade Puducherry port to handle cruiseships and box barges and to offer bunkering facilities. According to local press reports, this is owing to “a lack of interest”. Any expansion is now likely to take place in Kamarajar itself. In Mumbai, fuel supplier Chemoil pulled out of a joint venture with Adani Enterprises in the autumn, allowing Adani to purchase its 49% minority stake. Chemoil-Adani has been rebranded as Adani Bunkering. The companies said that the move would allow them to “separately pursue their own strategies in this important and rapidly growing market”. The Adani Group in particular is eyeing vigorous expansion across India and beyond on the back of its other port operations. Adani Bunkering director Vinay Prakash said: “Leveraging the synergy with Adani-owned ports and with the support of state-owned oil companies, we plan to develop and grow our bunkering business exponentially throughout India. To handle the business on a large scale, we are already moving in the direction of creating higher potential infrastructural facilities that would support productivity and cost-effectiveness.” Adani owns the ports of Mundra, Dahej, Kandla and Hazira in Gujarat, Dhamra in Orissa, Mormugao in Goa and Visakhapatnam in Andhra Pradesh. “The infrastructure for bunkering operations is based in Mundra port, and bunker supply is carried out by India’s biggest barges,” Prakash said. “Bunker supplies at other Indian ports are made in association with state-owned oil companies. In the near future, Adani Bunkering plans to expand its physical bunkering operations to Hazira and Dahej ports [in] Gujarat and is also

evaluating other ports for [a] physical presence.” With India’s maritime sector attracting major investment, it goes without saying that the regulatory structure behind it needs to follow suit, and the government has taken several steps over the past few months to improve matters. Not before time, last year it finally ratified the International Convention on Civil Liability for Bunker Oil Pollution Damage, which came into

force in 2008. The bringing of the treaty into Indian law will mean that Indianflagged vessels are now covered by the convention, as well as spills occurring in Indian national waters. Indian ships will no longer need individual bunker insurance compliance certificates when calling at foreign ports. In addition, the government has cut customs duty on bunker fuels in the cabotage trade. The Ministry of Finance announced the move last summer as

India

part of a bid to boost India’s economy. Minister of state Shri Jayant Sinha said: “Recognising the need to encourage the growth of Indian tonnage, the government has exempted [the] Customs and Excise Duty leviable on bunker fuels, namely IFO 180 CST and IFO 380 CST, used in Indian-flagged vessels for transportation of [exports/ imports] and empty containers between two or more ports in India.” The existing exemption for customs and excise duty on bunker fuel for Indian-flagged container vessels bound to or from the country’s main box hubs, introduced in 2014, was also extended to cover all domestic container traffic in a bid to ease jams on the country’s road and rail networks. “The Ministry of Shipping is actively considering various measures to promote modal shift of cargo from roads to coastal waters,” the government said in a statement. “One of the issues hindering the growth of coastal shipping has been the levy of customs and central excise duty on bunker fuels. This tax incentive for transportation along the coast will go a long way in enhancing Indian tonnage as well as in promoting development of transportation hubs in India.” The extension of the exemption came only a month after some restrictions on the cabotage trade were lifted, again with the aim of pushing shore traffic onto the water. In early September, foreign-flagged ro-ros, car carriers, truck carriers and LNG carriers were given a five-year free pass to carry cargo from one Indian port to another, regardless of whether Indianflagged alternatives were available. In a statement, the government said: “Such special vessels are in short supply in the country, but since they cater to a specific class of cargo, their availability will make it possible to shift cargo movement for

these commodities from road and rail to coastal shipping.” Sri Lanka

Across the Gulf of Mannar, the future shape of Sri Lanka’s fuel industry has been dominated this year by problems at Hambantota under the leadership of the Sri Lanka Ports Authority (SLPA). The much-delayed, Chinese-backed US$1.5 billion new port finally opened to commercial shipping in 2014, with the port’s chief engineer suggesting that as few as three ship calls a day would be enough for it to break even. Less than a year later, the SLPA stopped all bunkering at the port, which it had been running itself to much criticism from the private sector. Already poor traffic levels dwindled further, and the SLPA’s fuel operation made a reported total loss of US$19.9 million. It also came under fire for poor strategic decisions, such as the purchase shortly before shutting the bunkering business of 18,000 tonnes of what proved to be off-spec marine gas oil (MGO). This had been previously rejected by the state-owned Ceylon Petroleum Corporation owing to its poor quality. The MGO was bought at a time when prices were high, and some reports say the price was well over the going market rate. Less than 4,000 tonnes has been sold, and the SLPA is still paying significant interest on the consignment. In spring 2015, the SLPA said it was seeking aid from the private sector in the form of a joint-venture partner to take on the running of the bunkering business. This attracted ongoing criticism from local players fearing another monopoly operation in the port. By summer, the SLPA was reported to be actively seeking to wash its hands of the bunkering business entirely, looking for a management company

to take it over. But while some reports suggest that private companies were providing an advisory service to the SLPA on the future direction of the port as a bunkering location, the SLPA’s chairman, vice-chairman and board were allegedly made to resign at the start of September. The SLPA could not be reached for comment. The future of Hambantota’s fuel sector is now in the hands of the Sri Lankan government. So too is the fate of the port itself, although Hambantota has started to see a slow pick-up in traffic – principally car transshipment rather than the hoped-for container boom. Work on stage two of the port development has continued to go ahead to add more box berths. Ironically, while Hambantota is languishing, Colombo has performed well – and the governor of the Central Bank of Sri Lanka, Arjuna Mahendran, has suggested ending development at Hambantota in favour of further improving facilities there. A new deepwater terminal has boosted traffic and oil product exports, with ship calls up 13%. In addition, Lanka IOC, a local subsidiary of IndianOil Corporation, has begun bunker operations from Trincomalee on the north-eastern coast, primarily aimed at ships operating in the Bay of Bengal. The company is also exploring the redevelopment, in conjunction with India, of the upper tank farm at China Bay in Trincomalee. The 84 huge tanks date from the Second World War, offering a total storage capacity of around a million tonnes. With Lanka IOC and its partner in the scheme, Ceylon Petroleum Corporation, keen on turning the port into a genuine regional petroleum hub, refurbishing the tanks could offer a relatively costeffective route to achieving this. There have been clouds on the horizon for Lanka IOC, however. In September, managing director Subodh Dakwale called for the government to offer tax grants for its bunkering business to enable it to compete more readily with lower-priced rivals in India. He was quoted in the local press as saying: “The transport cost of bunker oil from Colombo to Trincomalee is very high, and the company cannot service ships passing Trincomalee harbour [at] a competitive rate.”

World Bunkering Spring 2016

UAE

Busy scene The UAE is home to both the massive Jebel Ali port and the huge Fujairah bunkering hub, but bunker projects are also under way elsewhere within the Emirates

ubai is both a bunkering port for the many containerships that use Jebel Ali and a major location for traders and brokers. It has recently launched an ambitious initiative to engage more closely with maritime businesses as it looks to consolidate its position as one of the world’s foremost shipping centres. The newly created Maritime Advisory Council (MAC), led by the Dubai Maritime City Authority (DMCA), will now foster collaboration and coordination between industry stakeholders from both the private and public sectors. The MAC push supports both the Dubai Strategic Plan 2021, which aims to build a truly integrated and sustainable maritime economy, and Dubai Maritime Vision 2030, a plan conceived to strengthen the emirate’s unique competitive advantages. A ‘who’s who’ of major private businesses operating out of Dubai have already signed up as members. “This initiative will nurture closer collaboration and mutual understanding between all the key maritime industry stakeholders in Dubai,” comments Amer Ali, executive director of the DMCA. “By engaging with businesses on this level, Dubai can achieve buy-in from industry to support its ambitious, strategic maritime objectives, while we also build

World Bunkering Spring 2016

our own understanding of exactly what our private partners want from a global shipping hub. According to MAC, Dubai, with its business-friendly environment, tax-free advantages, supportive regulations and world-class infrastructure, is proving a major pull for international maritime firms. Maritime now contributes some 4.6% of Dubai’s total GDP. Meanwhile, Jebel Ali Port has continued to grow, and opened a third, US$850 million container terminal in October 2014. It can accommodate up to 10 ultra-large containerships (ULCS) with 18m drafts at the same time. Among the many bunker sector companies with offices in Dubai is Pakistan-headquartered Prima Marine, which recently took onboard ex-OW Bunker SA branch manager Veryan Bell as a senior bunker trader. She specialises in supplying bunkers and lubricants in Africa and the Middle East. Prima Marine managing partner Morten Kure Hansen is another former OW employee. He was regional managing director of OW Bunker IMEA. Dubai continues to be the place to be based in the Middle East. Thanks to its strategic location, Fujairah remains one of the world’s biggest bunkering hubs. Income from bunkering some 100,000 ships a year is put at about US$4 billion. While bunker statistics are not published, total

annual volume is understood to be about 24 million tonnes. Bunker suppliers at Fujairah include International Supply, Enoc Bunkering LLC, VTTI Fujairah Terminals Ltd, Aegean Fujairah Bunkering, Bominflot Fujairah LLC, Fujairah National Bunkering Est. and Fujairah Bunkering Co. LLC, as well as newcomers Gulf Petrochem and Gulf Petrol Supplies (GPS), which became licensed marine fuel suppliers in Fujairah in May last year. Fujairah’s Port Authority says most stems are carried out using floating storage. The remainder of bunker operations use land storage through the use of privately owned oil terminals that are connected to the port. Fujairah port statistics show that total storage capacity connected to the port reached over 7.5 million m3 by the end of 2014. According to the Port Authority, the total does not include Abu Dhabi Crude Oil Pipeline (ADCOP) storage, which provides roughly 1.2 million m3 of space, because it runs to the north of the port rather than through it. It is expected that, from 20112018, the port will have added close to 11.6 million m3 of new privately owned storage space. Storage additions will come from companies including: Gulf Petrochem, Vopak Horizon, Eurex Crude Oil Terminal Fujairah, Prime Star IL&FS, GPS Chemoil, Socar Aurora, Al Brooge, Middle East Tanking Solutions

UAE 50

(METS) and Enoc Lubricants & Grease Manufacturing Plant (ELOMP). Vopak Horizon, the port’s largest storage player, plans to add 478,000m3 of crude oil storage capacity to its Fujairah terminal. In mid-2014, the company, which owns just under 3 million m3 of storage capacity, added five pipelines that connect its storage tanks with jetties in the port, two of which are for fuel oil. Recently, Aegean Marine Petroleum Network Inc announced that it has entered into a new $120 million credit facility for its wholly-owned UAE subsidiary, Aegean Oil Terminal Corporation, arranged by local UAE banks. Aegean president E Nikolas Tavlarios said: “We are pleased with the confidence our UAE banking group has shown in our business, and believe their support will help drive our growth plans in the region. “With this new facility, we have established more favourable terms with lower margins and longer maturity dates than our 2013 Fujairah credit facility, further enhancing our financial flexibil-

ity. Our Fujairah storage facility has been received well in the marketplace, and we quickly achieved a high utilisation rate, driven by our strong marketing strategy and the valuable support of our local banking group.” Some of the proceeds from the loan were used to repay outstanding debts on that facility of $45.2 million. The balance is expected to be used to opportunistically purchase supply while pursuing Aegean’s strategy of selling blended products to generate greater profitability. The facility was arranged by the United Arab Bank, and funded by the United Arab Bank, Abu Dhabi Commercial Bank, Commercial Bank of Dubai and the National Bank of Oman. Gulf Petrol Supplies (GPS), owned by Fujairah National Group, started operations as a bunker supplier in Fujairah in May 2015. In November, it announced plans to install a mass flow meter on one of its two barges, the 6,200 dwt FNSA 10. The equipment is being provided by Switzerland-based Endress+Hauser. An

additional barge was expected to come into operation in late 2015. Now, GPS is expanding its physical supply operations to Khorfakkan, located on the east coast of the UAE on the Gulf of Oman, and part of the emirate of Sharjah. Meanwhile, Abu Dhabi’s Al Mirfa Port has been upgraded. The extensive work includes new bunkering facilities that will enable the port to bunker vessels using an offshore platform. The chairman of the ww Company (ADPC), Sultan Ahmed Al Jaber, was quoted as saying: “The development of the western region’s ports is a strategic priority and in line with our leadership’s directives of enhancing the region’s economic resources. “Our goal is to implement the master development plan, which includes Al Mirfa Port, Mugharrag Port, Delma Port, and Sir Bani Yas, and we are confident that with the support of Abu Dhabi Ports’ partners, these vital projects will play a key role in the development of the region and support the emirate’s economic diversification efforts,” said Al Jaber.

World Bunkering Spring 2016

LNG

The Helgoland is Germany’s first LNG-fuelled sea-going vessel. © Fassmer

LNG projects continue Despite the low oil price, enthusiasm for liquefied natural gas (LNG) appears undimmed in many parts of the shipping industry

ne respondent to the latest Moore Stephens shipping confidence survey commented: “The precipitous fall in oil prices has poured cold water over LNG-fuelled ship design. While the application of LNG makes sense from an environmental point of view, the additional capital expenditure is not justified unless oil prices go up to previous levels.” If that is the case, it has not yet manifested itself in a slowdown in LNG projects. For example, the first German LNG-fuelled seagoing vessel made her maiden voyage in December. The Helgoland was built at the Fassmer shipyard in Germany. The passenger ferry, owned by Reederei Cassen Eils, will operate between Cuxhaven and the island of Helgoland. This route takes the vessel close to the UNESCO World Heritage site of Wadden Sea National Park, an ecologically sensitive area in the southeastern part of the North Sea. Because of the need to minimise exhaust gas emissions in this area, the ferry will operate primarily on LNG, using two nine-cylinder Wärtsilä 20DF mediumspeed dual-fuel engines. “We are very proud to be operating the first newbuild German vessel fuelled by LNG. Compared with conventional diesel fuel, this ship will produce 20%

World Bunkering Spring 2016

less CO2, 90% less NOx, and almost zero SOx and particulates. Thanks to Wärtsilä’s dual-fuel technology with built in redundancy, the vessel can operate efficiently and without restrictions in the Wadden Sea National Park. Furthermore, it was very important for us to select a reliable and experienced partner, who was able to deliver a complete propulsion package,” said Reederei Cassen Eils’ managing director, Bernhard Brons. In addition to the propulsion machinery, comprising two engines, two gearboxes and two controllable pitch propellers, Wärtsilä has also supplied its LNGPac fuel bunkering and gas supply system with related safety and automation systems. It uses Wärtsilä’s patented Cold Recovery System, which utilises the latent heat of LNG for airconditioning systems, so reducing the amount of electricity consumed in cooling compressors. This is claimed to provide significant operational savings and an increase in overall vessel efficiency. Inland barges

Wärtsilä dual-fuel main engines will also power a series of 15 inland waterway barges being built for Belgium-based Plouvier Transport. The barges will be chartered by Shell Trading Rotterdam and will operate primarily on LNG. Wärtsilä will also supply other propulsion equipment and

its LNGPac fuel gas handling system. The ships’ hulls are under construction at the VEKA Shipyard Centromost in Poland, while outfitting will be carried out at VEKA Shipyard Werkendam, in the Netherlands. Dual-fuel multipurpose ship design

Nantong COSCO KHI Ship Engineering Co (NACKS) and Lloyd’s Register have developed a design for a 28,000 dwt dual-fuelled multipurpose vessel (MPV). The design is an evolution of NACKS’ established 28K MPV design and is fitted with a 500m3 Type ‘C’ LNG fuel containment system located aft and on deck over the engine room and the LNG fuel supply system. The main engine is a MAN ME-GI highpressure gas fuel system, while the main electrical generator and boiler are in a low-pressure gas fuel system. Accommodation is located forward, maximising space for cargo operations, and three deck cranes are situated on the port rail. NACKS’ vice-president, Tsuneshiro Yamamoto, said: “MPVs are important workhorses in commercial shipping, providing more flexibility in operation. [Given the United Nations Climate Change Conference discussions], the industry is required to showcase an appropriate response to the need for ever-cleaner designs. This evolution of our proven 28,000 dwt MPV design

LNG

demonstrates that shipping can provide clean fuel designs to meet the requirements of world trade.” The design complies with the Lloyd’s Register rules for gas-fuelled ships and has also gone through its ShipRight assessment of risk-based design (ARBD) – the “highly robust” risk assessment analysis and report process pioneered by Lloyd’s Register. The dual-fuelled system design and arrangement have also achieved approval in principle and a Gas Ready Class descriptive note from Lloyd’s Register. LNG-fuelled VLCC design approved

On the first day of the Marintec China trade fair, classification society DNV GL gave Dalian Shipbuilding Industry Company (DSIC) approval in principle for its design for a LNG-fuelled very large crude carrier (VLCC) . DNV GL says the innovative design has been found to comply with the Gas Fuelled notation, as given in its rules for the classification of ships and in the recently adopted IGF gas safety code. “This is another step towards the more widespread adoption of LNG as

a fuel for shipping,” says Torgeir Sterri, DNV GL vice-president and regional manager in greater China. “The emissions and efficiency benefits of LNG mean it is almost sure to become an important part of the fuel mix over the next few years. We have seen its adoption in many sectors already and now, with this approval in principle – the world’s first for a VLCC, this major shipping sector could see its first LNG-fuelled vessel soon.” “At DSIC, we adhere to the principles of innovation, security, environmental protection and economic product concepts,” said deputy technical director Guan Yinghua. “DSIC will continuously concentrate on innovation, research [into] clean energy, ship efficiency and emission reduction, keeping ahead of green ship development in the future.” The new LNG-fuelled VLCC design is claimed to have several advantages over traditionally fuelled vessels. The design uses type-C fuel tanks located on the open deck, which minimises the impact on the overall layout and results in cargo capacity being the same as in

the conventional design. The LNG fuel tanks allow the vessel to perform a round trip from the Middle East to the US without refuelling. The dual-fuel engines give greater flexibility in bunkering options and meet the International Maritime Organization’s NOx Tier III requirements in gas fuel mode. Using LNG also results in the complete elimination of particulates and SOx and a significant benefit to CO2 emissions. In gas fuel mode, the design achieves a 30% reduction factor to comply with Phase 3 of the Energy Efficiency Design Index (EEDI) regulations for new ships. “In 2010, DNV GL developed the LNG-fuelled VLCC concept, Triality,” noted Deng Ling, DNV GL project manager and ship type expert for LNG as fuel. “With DSIC’s design and the approval in principle we have now seen the next step – a version which can be put onto the market. We are very proud to have been selected to work with DSIC on this project and look forward to seeing this ecofriendly design being welcomed by the industry.”

Bunker barge

Shell has confirmed its plans to build a specialised LNG Containerships has become the first customer for Shell’s bunker vessel to deliver to LNG-fuelled vessels in northspecialised LNG bunker vessel, having signed a supply west Europe. The new vessel will be based at the port agreement with Shell on 24 November 2015. Containerships of Rotterdam in the Netherlands, and will load from the will charter six 1,400 teu container vessels, currently being new LNG break bulk terminal and jetty, which is to be built by Nordic Hamburg Shipping in China. The vessels will constructed by the Gas Access to Europe (Gate) terminal. receive LNG fuel from Shell at the port of Rotterdam after It will also be sea-going and therefore able to bunker the LNG bunker vessel becomes operational in mid-2017. customers at other locations. “This specialised LNG bunker vessel is good news,” said Maarten Wetselaar, executive vice-president of Shell Integrated Gas. “Potential customers need to know that their LNG fuel will be delivered reliably and safely. Shell’s investment in this vessel, as well as commitment to buy capacity at the Gate terminal, underlines our confidence in LNG becoming a bigger part of the fuel mix.” The vessel will be built by STX Offshore & Shipbuilding. It will have the capacity to carry 6,500m3 of LNG fuel and will be highly efficient and manoeuvrable. Featuring an innovative transfer system and sub-cooler unit, it will be able to load from large or small terminals and to Shell’s first LNG bunker barge will be based at Rotterdam bunker a wide variety of customer vessels.

World Bunkering Spring 2016

Testing

Measuring up Stringent new environmental requirements have highlighted the role of specialist testing companies, but are we talking about an art or a science?

elegates at the IBIA Convention in Cancún heard that “measurement is not an exact science – this applies equally to fuel oil testing as to any other measurement activity”. John Stirling, marine technical quality manager at World Fuel Services, said there were factors, and combinations of factors, which influenced a particular test result. Consequently, to provide a controlled framework within which fuel oil testing is undertaken, analysis should be performed using standard test methods in a duly accredited laboratory. “The accreditation of a laboratory within a national laboratory scheme covers its general competence, impartiality and performance capability. Typically, this assessment will be against the requirements of ISO17025 and will cover the principal test methods performed by the laboratory in question,” he said. Analysis results, he suggested, might only be as good as the sample received, and minor variations between laboratories were to be expected. “Test methods used do not simulate field conditions,” he told delegates, adding that some laboratories unfamiliar with marine fuels might use incorrect test methods. In addition, some fuels outside the spec when analysed might not give problems, whereas some within the spec might. Also at Cancún, IBIA immediate past chairman Nigel Draffin outlined some of the new techniques being developed.

World Bunkering Spring 2016

These included light detection and ranging (LiDAR) tank calibration and mass measurement, new Coriolis techniques and air entrainment sensors. LiDAR is a technique using laser light for ranging, distance measurement and 3D modelling. It is currently expensive for use in level gauging, but costs are falling fast, Draffin said, and it is seen as a promising tool for preparing tank calibration tables. It also has potential for remote sensing of atmospheric pollutants like sulphur and nitrogen oxides. As new emissions regulations come into force on a worldwide basis, testing techniques will need to rise to the challenge – not least if the sulphur cap comes into force in 2020 and use of low-sulphur fuels becomes mandatory over a much wider area of operation. Since the advent of the new sulphur limit in emission control areas (ECA) at the beginning of 2015, testing agencies have noted changes in the fuel testing regime. Some have suggested that fuel supplies are being diverted from the automotive market into the maritime industry. Others have pointed to the fact that more distillate samples are being tested as a result of their use within ECAs Testing bodies, including Veritas Petroleum Services, have pointed to an increase in bunker alerts last year, many of which related to fuels that did not meet regulatory specifications with regard to flashpoint. There have also been concerns from owners over cold flow issues and poor lubricity for distillate fuels.

Lloyd’s Register Fuel Oil Bunker Analysis Service (FOBAS) has warned in a bulletin that EU member states started implementing the compliance verification and inspection processes defined in the Commission Implementing Decision (EU) 2015/253 as of 1 January 2016. Ships visiting ports in EU waters, and particular within the Baltic or North Sea emission control areas, should expect to be subjected to an increased frequency of sulphur inspections. “To prepare for these, and to facilitate the demonstration of the necessary compliance, FOBAS would recommend that operators: • ensure that all bunker delivery notes for the past three years are onboard ship, accessible, and filed in an orderly manner so that they can be readily cross-matched to any bunkering entry over that period in the oil record book • maintain up-to-date records relating to MARPOL samples, and make those samples available to be released to inspectors on request • maintain an up-to-date mandated ship’s sulphur log, such as that given in the FOBAS sulphur record book, which includes log forms for ECA SOx entry and exit change-over records to be completed by the crew • ensure appropriate dedicated sampling connections are installed in the fuel oil service system (suitably labelled), so that truly representative spot samples of the fuel oil being used can be readily obtained.”

MESOS Ltd. Admiral Fokin Street 8/1B, Vladivostok, Primorskiy region, Russia 690091 Tel: +7 (423) 240-64-91 Fax: +7 (423) 240-66-98 email: office@mesos.su

Bunker with Confidence! Where we work: We supply fuel at the following ports of the Russian Far East: Vanino, Kozmino, Vladivostok, Korsakov, Vostochniy, Nahodka, Zarubino , Posyet, Slavyanka

What we supply: Intermediate Fuel Oil (RMB 30, RMD 80, RME 180, RMG 380) and Marine Diesel Oil (DMA). All types of fuel are complient with ISO 8217:2012

What we guarantee: Quality, availability, flexibility

www.mesos.su

Olga Bogacheva reports on the latest news from the Russian bunkering and maritime sectors, and interviews the chief executive of the new Bronka multipurpose sea cargo complex

Arkhangelsk-based supplier joins Russian Association

Arkhangelsk-based bunker supplier NK-Flot has joined the Russian Association of Marine and River Bunker Suppliers. The company was established in November 2012 and provides services in Arkhangelsk and Onega in the White and Barents Seas. It owns three bunker tankers and a non-self-propelled barge, as well as an oil berth and storage tanks for light and heavy oil products. St Petersburg targets Chinese cruise trade

St Petersburg terminal Marine Façade exhibited at the 10th China Cruise Shipping Conference and expo, held in Shanghai last October. Marine Façade claimed its infrastructure is attractive for Chinese tourist agencies as a starting point for cruises. Marine Façade is owned by St Petersburg city administration and is Russia’s largest passenger terminal. Construction began in 2006 and was completed in 2011. The port is able to accommodate cruiseships and ferries up to 330m long with a draft of up to 8.8m. Lukoil-Bunker supplies dredging fleet

The Murmansk branch of Lukoil-Bunker supplied fuel to a dredging fleet on its way back from Sabetta port, in Yamal, north-west Siberia. Six dredgers took on

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heavy fuel oil (HFO) and diesel, said a company spokesman. Sabetta port is a part of the Yamal liquefied natural gas (LNG) project, which includes construction of an LNG production plant near the YuzhnoTambeiskoye gas condensate deposit. The major function of the port is maintaining round-the-year navigation and the passage of LNG carriers along the Northern Sea Route. Dredging in Sabetta port is limited to 10 weeks a year owing to hard ice conditions.

and well qualified workforce; and its access to the large markets of the Russian Federation and Asian-Pacific countries. Only lack of infrastructure investment is hindering development, he said. Rosneft, Sechin said, was ready to welcome Japanese institutions to take part in Rosneft production projects, with the potential to produce about six billion barrels of oil. Japanese investors were also invited to participate in the construction of an oil processing and petrochemical complex,

Gazprom Neft keeps cruiseships moving

Pavino expands fleet

Gazprom Neft Marine Bunker supplied about 40,000 tonnes of fuel to Royal Caribbean International cruiseships during their 41 calls to St Petersburg in summer 2015. Gazprom Neft Marine Bunker has had an exclusive agreement with Royal Caribbean covering the north-west of Russia for the past seven years.

Pavino has expanded its fleet with the acquisition of the 107,000 dwt Pavino Spirit tanker. The Japanese vessel started operation in October, supplying containerships in Vladivostok. It can carry three different grades of fuel. Pavino Shipping Company was established in 1996 and became a leading bunker supplier in the Russian far east ports of Vladivostok, Nakhodka, Vostochny, Slavyanka, Zarubino and Posjet.

Rosneft seeks Japanese investors

Speaking at the recent Russia – Japan Power Bridge conference, Rosneft chief executive Igor Sechin urged Japanese investors to participate in various Russian projects, including bunkering. In Sechin’s opinion, eastern Russia is one of the best places for the development of oil processing and petrochemistry. He emphasised Russia’s huge resources of raw materials; its cheap

Russian update

Oriental ambitions

CHANGES TO RUSSIAN AND INTERNATIONAL BUNKER MARKETS TO COMPLY WITH NEW ECOLOGICAL STANDARDS

MODERNISATION OF RUSSIAN REFINERIES AND THE IMPACT ON THE RUSSIAN BUNKER MARKET

CHANGES TO LEGISLATIVE REGULATION OF THE BUNKER BUSINESS

C U R R E N T S TAT E A N D P R O S P E C T S F O R D E V E LO P M E N T O F T H E R U S S I A N BUNKER SERVICES MARKET

CURRENT STATE AND PROSPECTS FOR DEVELOPMENT OF THE RUSSIAN BUNKER SERVICES MARKET

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INFOMRBUNKER.RU

BUNKER BUSINESS IN THE PORTOFRANKO PORTS OF THE FAR EAST  THE CURRENT SITUATION AND FUTURE DEVELOPMENTS

DEVELOPMENT OF SHELF PROJECTS AND THEIR EFFECT ON THE BUNKER MARKET

Ust-Luga’s SIBUR terminal sold

SIBUR Petrochemical Holding has sold its liquefied hydrocarbon gas (LHCG) and light oil products handling terminal in Ust-Luga to a group of investors for an undisclosed price. However, the company will continue to manage it. SIBUR’s media spokesman said that a consortium consisting of the Russian Private Equity Fund (RPEF) and several international investors had taken full control of the terminal. Gazprombank also joined the investors’ pool, Interfax news agency reported. It is expected that SIBUR will play a long-term role, ensuring that the LHCG terminal works at full capacity. It is likely that contracts will be signed with other market players. According to SIBUR, the new owners of Ust-Luga complex are going to expand the annual LHCG

handling capacity from the current 1.5 million tonnes to 2.4 million tonnes. Meanwhile, the light oil products handling capacity will increase from 2.5 million tonnes to 2.8 million tonnes. Free port status for Russian Far East

Russian president Vladimir Putin announced in his annual message to the Federal Assembly on 3 December that “the free port regime granted to Vladivostok may be expanded to other key far eastern ports”. The Free Port Vladivostok (FPV) system came into force on 12 October, 2015. As a result, the state will provide businesses within the port with free road and engineering infrastructure. Freeport businesses will also benefit from certain preferences and tax exemptions, plus relaxation of visa restrictions and custom procedures, etc. Pacific Investment Company, a joint venture between Transit-DV and Zhong Gong Xin (China), became the first business to locate in Vladivostok Free Port. The partners are going to build a premium-class hotel at an estimated cost of US$7 million. Igor Polchenko, Transit-DV president, has publicly emphasised several times that this is only one part of a large project. The company intends to transform Slavyanka into an international hub port and has been working on this concept for several years already. The industrial part of the project is a multi-modal manufacturing and

logistics centre owned by Vostokbunker, a subsidiary of the Transit-DV group. However, the regional government is reportedly disappointed with the low speed at which FPV businesses are being registered. This is attributed to the fact that a lot of the key legal provisions remain uncertain and have not yet entered into force. During a recent visit to Vladivostok, Yuri Trutnev, deputy prime minister and presidential envoy to the Russian far eastern federal district, demanded a fast-track scheme to boost companies within the FPV. Murmansk terminal rebuild

Russian update

with an annual capacity of 30 million tonnes, near Nakhodka in the Russian far east (Eastern Petrochemical Company). PRIME news agency cited Sechin as saying: “There are opportunities to supply equipment, and to negotiate reasonable division of labour and specialisation within the field of petrochemical development.” He also claimed that Rosneft has already got potential partners for this project. Experts comment that the current oil prices and sanctions against Russia, plus Rosneft’s limited resources, are pushing the company to seek investors to complete projects, especially in eastern Siberia.

Reconstruction of Murmansk passenger terminal is set to be completed by September this year. Investors expect to see significant numbers of foreign tourists from large cruiseships using the terminal in this port. The building will retain its historic appearance after modernisation. Rebuilding the terminal is part of the Arctic Harbour project. Reconstruction of the pier has been already completed, and large ocean-going vessels have been able to call there since last year. The Malta flagged Empress was the first cruiseship to call at Murmansk. A new Russian law simplifying cruise shipping is due to be introduced soon. It is expected that cruiseship passengers will not need visas, and that administrative costs will be reduced. While the city may be of interest, natural phenomena will be the big draw, including the midnight sun in summer and the northern lights in winter.

Gazprom plans Black Sea LNG plant

Gazprom has announced a tender for a feasibility study of the construction an LNG plant on the Black Sea coast in Krasnodarsky Kray. The specification includes construction of a plant with an annual capacity of 500,000 tonnes, with possible expansion to 1 million tonnes. The tender documentation states that the contractor should analyse various locations for the construction site and export terminal, including a floating LNG facility.

World Bunkering Spring 2016

Russian update

Building Bronka Aleksey Shukletsov, chief executive of the new multipurpose sea cargo complex (MSCC) in Bronka, talks to Olga Bogacheva of the Russian Association of Marine and River Bunker Suppliers

major new port is under construction at Bronka, on the south shore of the Gulf of Finland, where the St Petersburg orbital motorway enters Lomonosov. The port will comprise three specialised complexes: a container terminal, a ro-ro terminal and a logistics centre. Russia’s business community first became aware of Bronka MSCC in 2007, when a feasibility study was published. Since then, a modern port has been built, and last September it welcomed its first cargoship. Commercial operations started in December 2015. Olga: Let’s start with the question that most interests members of the Russian Association of Marine and River Bunker Suppliers. Will any new opportunities emerge for marine fuel suppliers? How would you describe prospects for bunkering services in Bronka? Aleksey: As far as we know, nobody is supplying bunkers here yet. Right now, a dredging company, China Communications Construction Company (CCCC), is working on the approach canal. It operates about 20 vessels, and orders fuel and supplies without any problems, despite the fact that Bronka is some distance from the main port. In fact, the bunker prices at nearby Kronstadt [an island in the Gulf of Finland] don’t differ much from prices in St Petersburg. Of course, the need to provide large amounts of fuel, especially in winter when ice-breakers will be used, may increase prices. This may add to shipowners’ expenses, but not significantly, as the geographical position of Bronka reduces call time by three hours. In addition, Bronka’s many advantages – railway link, motorway access, fast handling time, etc – mean that other vessel costs are lower too. We don’t have any particular plans for developing bunkering services, as our the existing operators are able to provide a good service. In other words,

the port administration believes in leaving businesses to run themselves. Currently, there are no fuel storage facilities in Bronka, and we are not going to build them. We have other goals. The issue of whether there is any need for such facilities is one that should be discussed and solved by the bunkering companies. As far as I know, market operators own oil storage facilities and have already worked out optimal logistics. Thus the location of fuel terminals, in Bronka or in St Petersburg, is not very important. I can only repeat that we are interested in the efficiency of any ship call in respect of handling operations and best possible services at the best price. We are ready to discuss any proposals to improve our performance.

example) – Baltic country (Tallinn or Riga) – and, finally, St Petersburg. This may change when the deepwater Bronka port, designed specifically to handle Post-Panamax vessels with a capacity of up to 8,100 teu, commences operation. St Petersburg may then become the end port for import and primary port for export. But large vessels calls imply a certain market volume, which is limited by total container traffic to St Petersburg. It is clear that a hub formation demands large cargo traffic. In this case, cargoes will be attracted from adjacent ports. We hope this will happen sooner or later. Unfortunately, it is hard to foresee precisely when this might happen, but we are focused on step-by-step development.

Olga: I understand your point – there are always service offers when demand arises, thus infrastructure develops naturally. However, what is your vision for the future of Bronka MSCC? What factors may affect it? Aleksey: The construction of the deepwater port at Bronka is the first stage in the implementation of the St Petersburg new ports development. The plan was designed to reduce pressure on central areas of the city and to improve transportation infrastructure with other Russian regions. Gradually, the number of ships calling at the old port will reduce or, at least, stop growing, even if our economy booms. At the same time, our activities will increase up to our projected capacity of 850 vessel calls annually. We are striving to become a regional hub. But the turnover of St Petersburg port is fifth among the Baltic and northern sea ports, because the terminals at St Petersburg port have no approach canals deep enough (about 11.2m) to accept large container carriers. The central part of the port can accept vessels with a capacity of no more than 3,000 teu. Thus liners delivering Russian transshipment cargoes use the following route: European port (Hamburg, for

Olga: Some experts claim that the expansion and construction of the new port facilities is not feasible because existing terminals don’t work at full capacity. What is your response to this point of view? Aleksey: Yes, there are half-abandoned berths in our country, but these were built from the 1950s to the 1980s, with longoutdated technologies and standards. Their efficiency, to put it mildly, is not high. At the same time, there is a definite shortage of modern terminals, especially ro-ro terminals, with sufficient depth, good motorway and railway approaches, and [well designed] handling facilities. Recently, Marine Façade and Ust-Luga, two new, modern terminals, started operation in the St Petersburg area. But it is difficult to develop container handling there, owing to the absence of direct transport links to central Russia. Containers delivered to these ports are destined mainly for Moscow. I’m absolutely sure that Bronka will become a highly competitive and attractive port for our clients. The Bronka complex is a modern ‘eco-port’, and a full page is dedicated to environmental protection on the Port Bronka website. Along with general

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Olga: Does this mean that environmental protection is an important part of your strategy? Aleksey: Our port was designed in 2008-2009, executed in 2012, and it now incorporates modern environmental policies. We tried hard to take into account all global trends focused on tightening of environmental legislation to avoid having to update our infrastructure in future. For example, we installed electric sockets for vessels at berths, although the use of diesel engines while alongside is not yet forbidden in Russia. Yes, such legislation will certainly happen in future and we are ready for it. We also installed membrane-type waste treatment facilities from Holland at Bronka port. This is very expensive equipment, which you can rarely find in other ports. Our project has a special feature: not a single water drop may be discharged into the Gulf of Finland. All waste water, including household liquid waste and rain water, pass through the treatment works. Discharged water complies with requirements for first-class fishing. In other words, water discharged from our terminal into the Gulf of Finland is of better quality than the waters of the Gulf itself. You may even drink it after boiling. Our project has passed two expert state inspections. Also, we invited two public environmental organisations to perform their own independent inspections: the Public Institute of Environmental Expertise and the International Academy of Ecological Science, Human and Nature Security. As observed by an expert at the Baltic Sea Day, a recognised international forum, the influence on the environment is “unavoidable when a hydrotechnical project of such scale is implemented, but in this case it is minimal and almost reversible”. Olga: My next question follows on naturally from the environmental discussion. What are the prospects for liquefied natural gas (LNG) bunkering at Bronka? Aleksey: LNG bunkering fits perfectly with our environmental principles. The only problem is the cost of the necessary infrastructure and its safety. Moreover, development of both legislation and standards is still at an early stage.

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A reasonable approach, from our point of view, would be approval of some intermediate solutions, which may be implemented in the near future. The demand for such services is growing. A lot of global shipping companies have already ordered gas-powered newbuildings. For example, Containerships announced its intention to become the first European container operator to use LNG as its main fuel in 2016. It plans to buy bunkering services in Rotterdam, but we are aware of its interest in arranging LNG bunkering in St Petersburg port. As an eco-port we are naturally interested in accommodating LNGpowered vessels. We need to work out the details of potential LNG bunkering operations. We are actively considering one interesting working idea. Usually, vessels with two huge tanks that are filled from the shore are used for LNG bunkering. But there is another way – to load several LNG containers on a vessel with a normal port crane and connect them with hoses. This bunkering vessel would then move around the port area supplying clients. Afterwards, we would simply change tanks. It is easy to change empty LNG tanks with suitable container handling equipment. This “battery” system would allow us to avoid the construction of high-risk facilities and thus cut expenses. The tanks could be filled in the port or somewhere nearby – for example, in Gatchina, where there is a large gas distribution station. Demand for gas fuel will obviously depend on economics. I believe this idea would be attractive for St Petersburg as well as the country as a whole. Olga: What about the practical implementation of your idea of ‘changing batteries’? Aleksey: It is a concept right now. It seems very attractive, but still needs detailed examination.

shipping companies, including CMA CGM, have confirmed their intention to call at Bronka. In 2016, we expect to handle between 100,000 teu and 150,000 teu. Further progress will depend on the market, but there will certainly be growth. Technically, we are able to handle up to half a million teu annually. I would like to emphasise that growth of output at any cost is not our goal. Our investors demand quality in the first place – state-of-the-art equipment, procedures, service and safety. And we can afford to move steadily and persistently towards this goal. The port has already been built at the cost of private investors and has no large debts. Olga: I understand you strive for perfection. Twice a week I drive past your complex, and every time my heart fills with joy – the port is becoming more and more beautiful, if this word may be used to describe an industrial site. Aleksey: That is a global trend. Industrial sites should not be depressing and grey. At the least, they should fit in with their environment, and it’s even better if they are aesthetically pleasant. In our case, it is important. Unlike a lot of other sea terminals, our port is in full view of people driving along the orbital motorway. Recently, we finished installing industrial night lighting for the bridge cranes. We selected the colours of the Russian flag, white, blue and red, and these lights are visible from Gorskaya – 30km away – at the start of the ringroad. This use of industrial night lighting – ordered from Swiss manufacturer Liebherr – is a first for Russian ports. It is not a technical necessity, as we could use hazard warning lights. But in our country, where dull and dark weather lasts half a year, the bright lights will improve the mood of a lot of people.

Russian update

information, one can find a lot of facts there, including details of the monitoring programme, trial protocols, etc.

Olga: What is the demand for LNG bunkering services in St Petersburg? Aleksey: St Petersburg is the largest container port in the country and is Russia’s link to ocean trade routes. About 18,000 ships call here annually. Even if a quarter of this number were to use LNG, it would be a big market. Olga: What are your plans for 2016? Aleksey: Bronka is a new terminal and starts operation from zero. Obviously, a certain transition period is needed before we reach our projected capacity. Several

Innovation ABB to power futuristic hybrid ferry Switzerland-based power and automation technologies company ABB says it will provide the technology that will allow a “spectacular” ferry to run silently on batteries along a UNESCO-listed fjord

BB says: “The ferry will couple its striking appearance with ABB’s cutting-edge maritime hybrid solution. The vessel’s concept has been named Seasight by the shipbuilder Brødrene Aa.” ABB will supply a compact and lightweight version of the award-winning Onboard DC Grid system, which will manage and control the energy flow between the diesel engine, propeller and charging station. The Onboard DC Grid is a key enabler in efficiently integrating energy storage into modern marine power systems through its DC infrastructure and integrated power and energy management system. In the case of the Seasight, the Onboard DC Grid will transfer energy to the battery during charging, which will happen at both ends of the voyage, and while the diesel engines are running. ABB has already engineered the technology to allow larger passenger ferries, including those which carry cars, to run on hybrid or pure battery power. The company claims the environmental saving in terms of carbon dioxide reduction for just one vessel can be the equivalent to electrifying thousands of cars. The ferry will carry up to 400 tourists between Flåm and Gudvangen along the Nærøyfjord in the west of Norway, a distance of around 32km.

Once it has arrived in the most scenic part of the fjord, it will switch to battery power, allowing sightseers to enjoy nature in almost complete silence at around 10 knots. The fjord is on UNESCO’s World Heritage List, because it remains largely unspoilt by human development, and the ferry is designed with the surroundings in mind. Seasight will complete around 700 journeys a year for its owner, The Fjords, from May 2016. “Regulation means Norway is leading the world in terms of battery power for passenger ferries,” commented Sindre Sætre, ABB’s director of marine and ports in Norway. “Globally, battery power and hybrid technology is gaining importance in the maritime sector, and we are delighted to be at the forefront of that process.” The ferry design is inspired by a trail finding its way up a steep mountainside. It measures 40m in length and 15m in width. Outside the ferry, passengers will be able to climb all over the boat, while the inside will feature panoramic views and seating for 450 people. The construction of the carbon fibre vessel is underway at Brødrene Aa, which also came up with the concept. Anstein Aa from Brødrene Aa AS says: “This is one of the most exciting vessels we have ever constructed in terms of both aesthetics and technology.”

Fuel from slops

Ecoslops, the first company to develop technology to produce recycled marine fuels from marine oil residues (slops), has announced that its refinery in the Port of Sinès, Portugal, has commenced industrial production and delivered the first volume of marine fuel products compliant with ISO8217, validating the company’s commercial proposition. In the third quarter of last year, 3,200 tonnes of slops were imported from Northern Europe, in conjunction with slops collected in the port, mainly at the oil terminal and from MSC, the major global container shipping company. According to Ecoslops, 1,400 tonnes of fuel products have subsequently been produced for the marine market, comprising distillates (MDO) and heavy fuel oil (IFO); and light bitumen for the roofing and isolation markets. It says: “This development validates the company’s value proposition, with 98% of slops being recycled for commercial use.” “This is a landmark moment for Ecoslops, as we prove the commercial and sustainable viability of creating marine fuel products from slops,” said Ecoslops chief executive Vincent Favier. “In the current climate, waste collectors are finding it increasingly difficult to sell unprocessed slops, and many ports do not have sufficient collection or storage infrastructure. For shipowners and

World Bunkering Spring 2016

Long-term sea trials show up to 20% reduction in oil consumption and extended liner life on typical two-stroke diesel engines when fitted with new eWAVE® piston rings New piston ring design

Federal-Mogul Powertrain, a division of Federal-Mogul Holdings Corporation, says it has developed a new piston ring for two-stroke diesel engines that reduces oil consumption and marine pollution by allowing the quantity of lubricant used to be greatly reduced. The patented surface topography of the new eWAVE rings has been designed to distribute oil more evenly around the cylinder bores, enabling less oil to provide greater protection. “eWAVE is the first ring that disperses oil around the bore in a hom ogeneous layer, protecting against local oil film breakdown, improving the sealing of combustion gases, reducing wear and ensuring more uniform liner temperatures,” explained Richard Mittler, Federal-Mogul’s senior expert manager, analysis and product development, technology, rings and liners. “This means the amount of oil injected into the cylinder can be greatly reduced

Federal-Mogul Powertrain’s innovative piston rings reduce the amount of lube oil needed

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and, because two-stroke engines expel their lubricant in the exhaust, less oil means lower carbon emissions as well as reduced operating costs.” Conventional two-stroke piston rings are predominantly designed using principles very similar to those used in four-stroke engines, in which there is a flow of oil from the crank case around the entire circumference of the ring. However, in two-stroke engines, the lube oil is sprayed against the cylinder liner in proportion to the engine load. This feed oil is not uniformly distributed on the cylinder wall. To ensure a safe minimum coverage of all areas of the liner, surplus oil is injected in order to compensate for the uneven distribution. Because there is no mechanism to distribute the oil circumferentially around the bore, much of the surplus is pushed downwards in the direction of the ports, meaning that approximately 30% to 40% of the oil supplied passes through to the exhaust without ever performing a useful function. The company says that the geometry of the eWAVE piston ring creates a circumferential pressure difference that generates controlled oil flow around the bore as the piston reciprocates, improving the uniformity of the oil film. It achieves this by varying, around the circumference, the point about which the ring pivots in its groove as the piston reverses direction. Tests have shown that the eWAVE ring distributes oil over an area circa 10 times the size of that achieved by conventional ring profiles, which generate less than 1% of their oil flow in a circumferential direction. “Long-term trials since 2013 in a number of vessels with different oil injection technologies have confirmed the economic and environmental advantages of eWAVE rings,” said Mittler. “In over 8,000 hours of testing, we have seen improved wear resistance while reducing oil consumption by up to 20%, helping to reduce operating costs while improving the marine environment.” According to Federal-Mogul Powertrain, the detail of the eWAVE design can be optimised to suit individual types and arrangements of feed nozzle and different engine strokes and operating speeds.

Innovation

operators, it is highly cost-effective, efficient and sustainable to be able to take a waste product, for which the disposal is strictly regulated, and turn it into a reusable marine fuel. Our focus now is on accelerating production at the Port of Sinès by collecting more slops locally and through import, as well as further developing our global infrastructure to capitalise on the opportunities within the global slops market.” Ecoslops says it has developed an innovative technology to recycle marine hydrocarbon waste, founded on a combination of processes, technologies and in-depth refining knowledge from the petrochemical sector. The company collects slops from waste collectors and ports, as well as directly from ship owners and operators. The hydrocarbons are then pre-treated by decantation and centrifugation before being processed into a vacuum distillation column and recycled into marine fuels and light bitumen. The water produced is decontaminated in a treatment plant before being returned to the natural environment. Ecoslops’ treatment unit in the Port of Sinès has the capacity to produce 30,000 tonnes of recycled fuel every year.

Legal

Key Khorfakkan ruling Barrister Teresa Starr of Dubai-based Fichte & Co Legal Consultancy explains the implications of a recent case related to OW Bunker

ubsequent to the liquidation of OW Bunker Middle East DMCC (OWBME), shipowners found themselves in the unenviable position that they were subject to double demands for payment – from both physical suppliers (PS) and the OWBME liquidators. Additionally, the parties were informed that ING Bank N.V. claimed priority-creditor status over OWBME receivables (which included payments for bunkers supplied by the PS on order of OWBME) by virtue of an Omnibus Security Agreement (OSA) entered into by ING and, among others, OWBME. As the OSA is subject to English law, ING, along with many liquidators of different OW Bunker subsidiaries around the world, maintained the validity of its claim on receivables as assignee. However, by a recent landmark decision (wherein Fichte & Co represented the PS), the Khorfakkan Federal Appeal Court has ruled in favour of the PS. It rejected both the shipowner’s and the charterer’s contention that the PS had no valid claim in the absence of a contract between the PS and either the shipowner or the charterer. It ruled that the bunker delivery note, in the circumstances, was sufficient to prove the contractual relationship between the PS and the shipowner/ charterer. The Khorfakkan Federal Appeal Court also rejected ING’s claim on the receivables on the basis that ING was unable to prove OW Bunker’s original claim on the receivables. The facts

In the case, the charterers of the MT S (the vessel) had purchased bunkers worth around US$1.5 million, to be supplied to the vessel. In turn, OWBME approached the PS to supply said bunkers. The PS duly accepted and supplied the bunkers to the vessel,

against receipt of a bunker delivery note signed by the vessel’s chief engineer. Owing to the resulting non-payment of the PS caused by OWBME’s liquidation, the PS arrested the vessel in February 2015 and commenced proceedings before the Khorfakkan Court to recover the outstanding payment. The vessel was subsequently released once the shipowner deposited the claimed amount with the court. Proceedings in the first instance

The arrest of the vessel was based on Article 115 (i) of UAE Commercial Maritime Law (CML), which allows the sequestration of vessels for the supply of products or equipment necessary for the use or maintenance of the vessel. The shipowner and the charterer of the vessel argued that they bore no responsibility for the payment of the bunker supply, as they had no contractual relationship with the physical supplier. On that basis, they requested the Court of First Instance (CFI) to reject the arrest. While OWBME conceded that it was the contracting party, it averred that it could not be held responsible for the payment, owing to the ongoing liquidation proceedings. The CFI ruled against OWBME, dismissing its argument on the basis that UAE company law places the liquidator of a company in the company’s shoes and therefore holds the liquidator responsible to settle any debts of such a company. The CFI further agreed with both the shipowner’s and charterer’s argument that there was no contractual relationship between either of them and the PS, in light of which they submitted that the arrest of the vessel by the PS was invalid/unlawful. The CFI went on to reject ING’s claim, as it found that ING had failed to prove to the court’s satisfaction that the debt was, in fact, due to OWBME,

in order to prove ING’s assigned rights under the OSA. Court of Appeal

Both the PS and ING appealed the judgment. The PS argued that the judgment was in direct contradiction of the provisions of CML, which expressly grants suppliers a right to arrest, irrespective of any contractual relationship. ING appealed on two grounds: first, on the basis of the OSA; and second, as the contract for the bunkers was between the charterers and OWBME. ING argued that OWBME purchased the bunkers from the PS and sold them to the charterer by way of a separate agreement. It maintained that the bunker delivery note was not a contract per se, therefore it should be disregarded as it was merely a receipt for delivery. On 9 November 2015, Khorfakkan Federal Appeal Court ruled in favour of the PS. In so doing, it found, as a matter of law, that the PS had a right to arrest the vessel by virtue of Article 115 (i) of the CML and the bunker delivery note. It also went on to uphold the CFI’s ruling in relation to ING’s claim, thus its appeal was accordingly dismissed. Impact of the judgment

As well as confirming the lawfulness of arrest by virtue of the bunker delivery note, the decision is a powerful indication that the UAE courts do not recognise ING’s claim under the OSA against OWBME’s receivables. The judgment certainly appears to strengthen the position of physical suppliers of bunkers in the UAE as regards lawful arrest in these circumstances. This landmark decision may offer some direction to shipowners who are faced with the difficulty of whom to pay in the wake of the OWBME liquidation. However, it should be noted that in the UAE Civil Law system, although persuasive, the judgment of a Court of Appeal is not binding in a strict sense.

World Bunkering Spring 2016

Scrubbers for boxships Buss Shipping, the shipping arm of the worldwide maritime logistics service provider Buss Group, is to install Alfa Laval PureSOx exhaust gas cleaning systems on two of its container vessels. The SOx scrubbers will secure valuable fuel economy in a competitive charter market

eadquartered in Hamburg, Germany, Buss Shipping is a containership operator with 20 feederships and a strong chartering business. To meet the requirements of today’s charter market, the company is focusing on the sustainable modernisation of its existing fleet. As a key step in this process, hybrid Alfa Laval PureSOx systems will be retrofitted onboard the Condor and Corsar. Both are container feederships of 1,025 teu that operate exclusively in emission control areas (ECAs). Since they frequent the low-alkalinity waters between Rotterdam and St Petersburg, as well as ports like Hamburg with zerodischarge requirements, a scrubber with closed-loop mode was a necessity. “The hybrid PureSOx systems on the Condor and Corsar will provide emission compliance with maximum flexibility and fuel economy,” says Torben Kölln, managing director, Buss Shipping. “This will uphold the competitiveness of our offer to charter customers.” The Condor and Corsar will each receive a hybrid PureSOx system with multiple inlets, connecting the main engine and two auxiliary engines to one U-design scrubber. In contrast to earlier systems with multiple inlets, the inlets will now lead into a single scrubber jet section – an advance in construction that will make the scrubber even more compact.

World Bunkering Spring 2016

“The PureSOx solution was well engineered and allowed a sophisticated integration of the scrubber system into our container feederships,” says Christoph Meier, project manager at Buss Shipping. “The custom construction let us avoid major modifications inside the vessel, which together with the preoutfitting gave us a short installation time. All those factors contributed to a competitive price.” For the engineering of the PureSOx systems, Buss Shipping GmbH & Co KG cooperated with SDC Ship Design & Consult GmbH. Detailed engineering was handled by the shipyard German Dry Docks GmbH & Co. KG, which is installing the systems following deliveries by Alfa Laval in January and February 2016. “The work between Buss Shipping, Alfa Laval, the shipyard and the engineering consultant has been smooth and productive,” says Mark Aarbodem, project manager at Alfa Laval. “Alfa Laval’s scrubber design and project management experience, together with the strong cooperation from the rest of the team, will ensure a reliable outcome for Buss Shipping.” “All parties have worked together to arrive at a compliant solution that will benefit our charter operations,” says Kölln. “Rather than paying for expensive fuel, our container vessels will be able to serve charter customers at a

competitive price – while still retaining our margins.” LR’s low-flashpoint fuels notation

Lloyd’s Register (LR) has developed a new notation for low-flashpoint fuels (LFPF), allowing owners and shipyards to demonstrate that their design and construction meet requirements. The notation came into effect on 1 January as part of LR’s rules and regulations. In the past 12 months, the industry experienced two major changes in legislation with the revised International Code for the Construction and Equipment of Ships Carrying Liquefied Gases in Bulk (IGC code) and the adoption of the International Code of Safety for Ships using Gases or other Low-Flashpoint Fuels (IGF Code). The codes have broadened the horizons for gas applications, encompassing the use of low-flashpoint fuels for gas carriers and non-gas carriers, but it is the classification society’s role to ensure clear standards, requirements and methodology are put in place, to help ensure that the required levels of safety and reliability are achieved. LFPF is assigned where the main propelling and/or auxiliary machinery is designed to operate using a lowflashpoint fuel in accordance with the applicable LR rules and regulations. LR’s approach to this developing market is through rules and regulations

Equipment and services

Buss Group is to fit Alfa Laval PureSOx scrubbers on two containerships

Equipment and services 64

applicable to all ships using lowflashpoint fuels under an overarching notation that is clearly structured, scalable and can evolve as the industry’s knowledge matures. Leo Karistios, LR’s global gas technology market manager, commented: “The innovation in gas carriers and non-gas carriers using gas as a marine fuel has been tremendous over the past two years. Our new class notation LFPF is Lloyd’s Register’s response to the market’s evolution. Our rules and regulations are evolving at the same pace so that classification’s role maintains its significance in the marine and gas market sectors.”

IACS initiatives

The International Association of Classification Societies (IACS) has created a cyber panel to lend support and resources to address what has become a key industry issue. IACS panels represent the top tier of the association’s issue-specific bodies, so establishing a cyber safety panel raises the significance of this concern to that of IACS’ traditional focus areas of safety, environment, hull, machinery and survey. IACS says that upgrading the existing expert group on cyber systems to a full panel significantly enhances the organisation’s ability to address

cyber safety concerns and support the protection of human life, property and the marine environment. Two joint working groups also were established at the meeting. The first, on cyber systems, will collaborate with industry stakeholders and supplement ongoing cooperation with the Baltic and International Maritime Council (Bimco) under the new cyber panel. The second joint working group, undertaken by the environmental panel, will address methodologies for compliance with the European Union’s monitoring, reporting and verification programme for carbon emissions in EU waters.

DNV GL and Hempel cooperate to boost performance

Coatings manufacturer Hempel and classification society DNV GL have signed a cooperation agreement to work together to bring customers clear, comprehensible and verifiable analytics to track and assess hull and propeller performance, for reduced fuel costs and a smaller environmental impact. “We are very pleased to be able to work with Hempel to bring their customers ECO Insight’s state of the art hull degradation analytics,” said Torsten Büssow, head of fleet performance management at DNV GL. “This data will not only give their customers transparent and verified data with only a few simple measurement inputs. It will also give Hempel access to advanced analytics for the further optimisation of their coatings. We’ve already seen the benefits our customers have gained from having real fleet performance analytics easily available – especially in the area of hull and propeller performance – and we’d like to welcome Hempel customers to the ECO Insight family.” The potential for improvements in hull and propeller performance on the energy efficiency of vessels is said to be significant, with estimates of potential savings in the range of 10% in terms of fuel and greenhouse gas emissions savings. ECO Insight can offer better performance baselines and demonstrate a more explicit relationship between hull and propeller performance and the actual fuel consumed. This allows customers who have invested in Hempel’s high-quality coatings the ability to better quantify the value of their investment. “At Hempel we place great importance in being close to our customers and providing the best individual service. With the data analysed by DNV GL, we will be able to optimise our customers’ fuel performance, improving hull

performance matching specifications precisely to individual needs and trade, dry dock intervals and technical service in dock. This will benefit our customers and support their businesses being more efficient in their operations. So far, we have been very pleased to cooperate with DNV GL, and we look forward to working even more closely with their staff from now on,” said Christian Ottosen, group vice-president, marine marketing, at Hempel. With “one of the most sophisticated analysis methodologies for hull and propeller performance on the market”, ECO Insight uses advanced normalisation algorithms to increase the accuracy of its analysis and is able to benchmark a vessel’s performance relative to other similar vessels. Additionally, by tapping into additional ship-specific data (beyond what is used to calculate performance) ECO Insight’s analytics can be used to further customise paint specifications upfront and to proactively manage performance once the ship enters service.

World Bunkering Spring 2016

The renowned International Bunker Conference continues to attract top speakers fromÂ around the world

Preview: IBC 2016

Copenhagen calling

he 37th International Bunker Conference will be held from 27 to 29 April 2016 at Radisson Blu Scandinavia Hotel in Copenhagen, Denmark. The International Bunker Conference (IBC) has become a world renowned forum for the international bunker industry. Previous events have focused on industry milestones and the challenges presented by MARPOL Annex VI regulations for the prevention of air pollution from ships. The upcoming conference will expand on this very important topic, its impact on shipping and current solutions Confirmed speakers include: Charlotte RĂ¸jgaard, global technical manager for marine fuels, Bureau Veritas inspectorate; Bryan WoodThomas, vice-president, World Shipping Council; Haakon Lindstad, senior research engineer, Norwegian Marine Technology Research Institute (MARINTEK); and James Corbett, professor of marine science and policy, University of Delaware. Bureau Veritas is the main sponsor of IBC 2016, which will feature a conference dinner at the Royal Danish Opera on Thursday 28 April. More information is available at www.bunkerconference.com.

World Bunkering Spring 2016

An IBIA Forum will be one of the key attractions at this year's Asia Pacific Maritime event held at Singapore Marina Bay Sands

sia Pacific Maritime has, over the years, grown into one of the most significant maritime exhibitions and conferences, earning itself a definite spot on the calendars of many key leaders in the industry, from owners to suppliers to delegates from around the world. This year's APM, to held from 16 to 18 March, recognises Asia’s rising influence that continues to fuel the global shipping industry. According to the organisers APM reflects an undeniably vibrant Asian shipping scene, with more than 90 percent of all new vesselss being built in the region, which is also the location of most the world’s top container ports. IBIA Bunkering Forum @ APM, on Thursday 17 March, looks at the challenges that lie ahead as shipping becomes subject to increasingly stringent emissions standards. The emerging Emission Control Areas (ECA) and the potential IMO 0.5 percent sulphur cap in 2020, coupled with likely regulatory moves on carbon dioxide, nitrogen oxides and also particulate matter together comprise a veritable tidal wave of potential challenges building. So the forum looks at the ground being gained with LNG. In particular it will consider the LNG bunkering hubs emerging in America, Europe and Singapore. It will also give an overview of the alternative fuels scene and at price differentials with these options. There will also be practical help from the fuel testing services identifying how to navigate buyers through the options, opportunities and pitfalls. Plus details from the oil majors on their particular Ultra low sulphur options. There will also be an update on the progress being made to deliver a 2016 version of ISO 8217 specification. The morning will be brought together with an interactive session of debate chaired by IBIA’s (Asia) EXCO chairman Douglas Raitt.

World Bunkering Spring 2016

IBIA Forum 10.30AM – 10.40AM Opening welcome Simon Neo, Regional Manager, IBIA (ASIA), Singapore 10.40AM – 11.00AM The Options Available - Looking at the options that are available both now and in the future Peter Hall, Chief Executive Officer, IBIA, United Kingdom 11.00AM – 11.20AM Far East Market, Pricing Differentials with Fuels - What is available where and the pricing options and differentials Argus Media 11.20AM – 11.40AM ECA Compliant Fuel HDME50 and AFME 200 - Exxon Mobil 11.40AM – 12.00PM Fuel Management Challenges Rahul Choudhuri, Managing Director, Veritas Petroluem Services (VPS), Singapore 12.00PM – 12.20PM Bunkering With New Fuels Gary Walker, Shipcare Regional Manager Asia Pacific, Intertek , Singapore

Previews: Asia Pacific Maritime

Talking bunkers at APM

12.20PM – 13.00PM IBIA Bunkering Forum @APM Summaries and Discussion with Speakers of the Day. Chairman: Douglas Raitt, Global Fobas Manager, Lloyds Register, Singapore Speakers: Simon Neo, Regional Manager, IBIA (ASIA), Singapore Peter Hall, Chief Executive Officer, IBIA, United Kingdom Argus Media Exxon Mobil Rahul Choudhuri, Managing Director, Veritas Petroluem Services (VPS), Singapore Gary Walker, Shipcare Regional Manager Asia Pacific, Intertek , Singapore 13.00PM End of IBIA Bunkering Forum @ APM

PO MARINE

Commercial

CLOSE TO YOU

At the Service of the Marine Sector

Wouldn’t you like your businesses to be performed in a fast and reliable manner? Our expert staff that comes up from the marine sector brings the quality products and services you deserve with our superior performance fuels and lubricants in the waters of 60 different countries of the World including Turkey and helps you reduce your operational costs while guaranteeing the safety of your vessel and your crew. Marine Sales in Numbers Supply to vessels in 60 different countries of the world 21% market share in transit sales 29% market share in customs-paid sales 8 marine terminals and 1 floating station positioned alongside Turkey’s entire coastline Turkey’s biggest distribution network with 16 marine tankers 4 marina stations throughout the country 65 vessel supplies in 7 different countries abroad More than 32.000 supplies to 3.145 customers in Turkey

Marine Lubricant Sales 1 lubricant plant 140.000 tons/year production capacity 1.000.000 m3 storage capacity Extensive product line with global quality standarts Wide logistic network Short lead time Dedicated barges and floating storage at Istanbul Complete service The most advanced research and development accredited laboratory in Turkey Extensive supply possibility around the world (more than 700 ports) Offers Environmentally Acceptable Lubricants (EAL) OEM approved products Product quality monitoring throughout our supply chain Worldwide technical support

Supply Guarantee High HSSE Standards Thanks to widespread terminal network and capacity, uninterrupted supply in every location where services are provided Full service with new shore trucks and double hull barge.

We Facilitate your Businesses

Expert staff trained in and coming up from the marine sector Customer focused approach Service that minimizes the demurrage period at ports 7 / 24 customer service

We Reduce your Costs

Cost advantage with accurate quality fuel and lubricants Competitive, transparent price and term policy Flexible commercial conditions Full range of service to monitor equipment and lubricant performance Extend equipment life Reduce maintenance costs

Quality Products

Certificated fuel and lubricants in international standards Sensitive quality control procedures applied in 3 different stages Lubricants laboratory accredited with 75 different tests from TÜRKAK Fuel offering superior performance with its high product quality, lubricants with long life

Industry Professionals Reliable employees who know the market and the needs of the customers, Solution focused operation and sales team Technical support for our products and services Reliable and fast information supply

PETROL OFİSİ MARINE SALES

Company news

PHYSICAL SUPPLIER & WORLDWIDE RESELLER Bunker and lubricant supplier with an international network of offices and operations in the world's busiest ports.

016 marks Peninsula Petroleum's 20th year of operations. CEO John A. Bassadone founded the company as a Gibraltar physical supplier in 1996 from a commercial office in London. Today the group boasts 20 offices spanning the globe and has grown into a unique force in the bunker industry. With over 250 employees supplying 12 million tonnes of bunker fuel worldwide, Peninsula's growth story is a huge success. But, for John, and the loyal teams that help grow its business, the Peninsula story is only just beginning. The Peninsula group has diversified its operations in recent years, investing intelligently in perfecting a physical supply business and a global sales network that now provide a solid platform for further growth. "We have successfully expanded up the oil supply chain, gaining significant value in the process. Peninsula is already an integrated oil business and we have significant opportunities to further strengthen our position in 2016 and beyond" commented Mr. Bassadone. He continued "our customers recognise Peninsula as a solid business partner, enabling us to maintain a very high quality customer portfolio, which we fully credit insure in any case. Aligned with this we maintain very

CEO John A. Bassadone

strong relationships with global suppliers in both cargo and retail oil markets. This provides Peninsula with unique diversity and substantially reduces our risk profile." Commenting on what else makes Peninsula unique, Mr. Bassadone opined "Peninsula's advantage from day one has been that there is no external pressure to grow or to alter our strict low risk appetite. We are focused on achieving our potential and are comfortable having a long-term outlook. Markets fluctuate but the breadth and depth of our business protects us. Above all Peninsula stands behind a 20 year track record and our customers trust us to perform. That's important to us. Peninsula's backbone is risk-averse, non-speculative operations supporting high end clients and suppliers. This fuels our constant growth" Peninsula's other stakeholders include a European banking group of leading commodity and trade finance institutions. "We have significant net worth in our own right plus the strong support of banks that understand our business and are committed to the sector. We have earned their support because our business model is robust and our strategy is clear. We also provide full transparency to stakeholders as we have nothing to hide" explained James Davy, Peninsula's CFO.

James has experienced many changes in his 14 years with Peninsula, but for him, and the many other long-serving employees that Peninsula boasts, the reason for the group's success is clear; "Peninsula has a unique spirit. Maybe it's the family atmosphere that drives its DNA but people do tend to stay here for a long time. Loyalty is respected and our staff enjoy the working environment, which manages to be professional and fun. It may sound like a clichĂŠ, but we believe that there are 'Peninsula people' and that makes success easier to attain." After 20 successful years Peninsula shows no signs of resting on its laurels. New sales offices, physical supply locations and further supply chain expansion are all planned for 2016. John Bassadone explained "we have successfully executed our focused business plan over the last 5 years extending our commercial platform, our physical supply locations and securing our position in wholesale markets. We have added cargo supply and storage. We have also updated our logistics operation by purchasing a fleet of product tankers to better service our client base. We are very future-focused and regularly reinvest in the business to build medium term value rather than focus on short-term gains. Our business platform is now built and we have very good control over our operations as well as excellent teams successfully delivering our strategy. Even in a tough operating environment this means we are extremely well placed to continue our growth trajectory and we look forward to delivering excellence to our customers for another 20 years." â??

Peninsula Petroleum Ltd. Europort, Building 7, 2nd Floor, Gibraltar Tel: +350 2007 7248 Fax: +350 20047816 Mob: +34 619 452 090 Email: inewton@peninsulapetroleum.com Office Email: gibraltar@peninsulapetroleum.com Yahoo: inewton_peninsula www.peninsulapetroleum.com

World Bunkering Spring 2016

Quality on time, every time

stablished in 1997, AKRON Trade and Transport is a fully-integrated bunkering company that holds itself responsible and accountable for every step of product development from refinery to our consumers. The products we deliver to our clients are tested, traceable and reliable. Thanks to our geographical location off the east coast of the Middle East and our in-depth local knowledge we have secured strong relationships with oil majors, independent oil companies and refineries to ensure consistency.

The Company’s Main Activities consist of: Bunker Supplies

Local and high seas bunker supplies. Over a period of time, Akron has created and established a sizeable market share in the bunker sector, selling and physically supplying marine fuel oil of all grades to all vessel types off the East coast of the UAE as well as to the international fishing fleets in the Arabian Sea, the Indian Ocean and the Bay of Bengal. As a physical supplier, the company purchases marine fuel from reputable suppliers on the spot market or under renewable contracts from petroleum trading subsidiary of National Gulf State Oil Companies. “We continually strive to become more effective and competitive within this market, which is paramount in these uncertain times so that we can provide our customers with the best bunkering services.”

Vessel Chartering

AKRON’s managed vessels are available for charter to third parties on spot/ voyage, or on short/medium time-charter basis, thus maximizing fleet utilization rates. Oil Trading

With over 150,000 metric tons of floating storage within the Arabian Gulf alone and a fleet of 27 vessels expanding year on year we have achieved an excellent longstanding relationships with our reputed charterers and with a continuous, reliable source of quality product, our customers are always ensured of prompt and efficient delivery of bunkers.

In addition to its physical supply operations, the company engages in substantial “whole-sale” oil trading activities, of marine fuels to its customers in the East African countries, islandstates of the Indian Ocean, local (UAE) government authorities, traders and specialized refineries).

Company news

AKRON Trade and Transport

Our Team AKRON has nurtured a management team that brings exceptional experience and expertise from the shipping and oil industries, particularly in tanker management and bunkering operations in the Gulf. With a strong, dedicated support team on the ground we put our experience, expertise and knowledge at your service 24 hours a day.

Our Fleet Our Offshore Bunkering operations utilize a storage mother vessel and a dedicated fleet of delivery tankers, all of which are internationally-certified and fully equipped to meet all STS requirements.

Safety & Quality Since our inception, there has been NO quality or quantity dispute, a record we are dedicated to maintain and an opportunity for us to show our customers their true value by providing optimum bunkers at the quickest turn-around time. Akron’s quality assurance program effectively controls product movement and testing to ensure accurate and dependable fuel specifications at all times. Akron possess a Zero pollution and Spill incident with a clean safety and environmental record. Akron Trade and Transport has all it takes to become and remain your reliable partner!!

Ship Management

The company uses Group-management vessels to transport, store and deliver marine fuel products. Fully equipped to meet all Ship-to-Ship transfer requirements, as well as specially fitted for offshore bunkering and maintain high safety standards by complying with International and UAE regulations. To achieve highest quality assurance, the company handles fuels right from the refinery to the point of delivery on board its ships, effectively controlling product movements and testing procedures to ensure accurate and reliable fuel specifications at all times.

World Bunkering Spring 2016

AKRON TRADE AND TRANSPORT P.O.Box 1327, Fujairah United Arab Emirates. Tel: + 971 9 2228840 Fax: + 971 9 2228841

Company news

FORCE BUNKER Your bunkering solution in TURKEY

ORS IKIZLER DENIZCILIK has been operating in the marine sector since its establishment in 1997. Through its bunker department, FORCE BUNKER, which was established in 1999, it has accumulated the experience, knowledge and qualifications to provide highquality bunkering services. It is the registered dealer and barge operator of the State Oil Company of Azerbaijan Republic (SOCAR) and is licensed by the Energy Market Regulatory Authority (EMRA) to operate in Turkey – mainly in Istanbul, Marmara and Iskenderun Bay – and as a trader worldwide. SOCAR is the only physical supplier in the region and now has bunkers-only status, allowing us to serve our customers more efficiently in Iskenderun Bay. Force Bunker can deliver MGO (DMA) max. 0.1% sulphur and a full range of high-sulphur fuel oil, as well as lubmarine lubricants. All fuels comply with Regulation 14 and 18 of Annex VI of MARPOL 73/78. Our highly qualified professionals apply a personal approach in dealing with clients, offering competitive rates and 24/7 service with Force Bunker’s unwavering aim of “best quality, lowest price”. With quality always a top priority, our company supplies products that comply with International Organization for Standardization (ISO) quality standards. Force Bunker is also a proud member of the International Bunker Industry Association (IBIA).

In the past two years, we have made a number of major investments at Force Bunker in order to grow our fleet. Our last acquisition in November 2014 took our fleet to four bunker barges, all of which operate under Force Bunker’s ownership: M/T FORCE 1 (1.326 DWT, IFO&MGO) M/T FORCE 2 (493 DWT, MGO) M/T FORCE 3 (1.723 DWT, IFO&MGO) M/T FORCE 4 (861 DWT, IFO&MGO) From our long experience of ship operations, Force Bunker is aware of the importance of supplying quality fuel on time. To ensure this, two larger bunker barges will be added to our fleet at the beginning of 2016. These sisterships will be the largest in our fleet. Force Bunker is fully aware of its responsibilities and is committed to complying with the highest social, health and safety standards, providing good working

conditions for employees and protecting the environment. In addition to our bunkering operations, FORS IKIZLER DENIZCILIK is very pleased to assist its customers with any other marine requirements they may have. These include: • Transit and port agency service in Turkey • Lubrication oil supply • Fresh water, provisions, paint and technical supplies – in the Istanbul anchorage area, for transit passages, and at all Turkish ports • Technical services for any kind of repair • Sludge/slop collection. • Diving support • Crew change • Motor boat and car service • Delivery services (cash to master, spares, mail and store items)

Force Bunker Salacak Mah. Bestekar Selahattin Pınar Sok. no: 112, 34668 USKUDAR- ISTANBUL /TURKEY Tel: +90 216 492 53 33 (pbx) Fax: +90 216 391 57 75 Email: forcebunker@ forceshipping.com Web: www.forcebunker.com : Force Bunker : Force Bunker : Force Bunker

World Bunkering Spring 2016

Whichever Polish port you’re heading for, you can rely on Oktan to meet all your bunkering needs

ktan Energy & V/L Service is a fully private and truly independent company within the bunkering market. We are a leading physical bunker supplier in the Polish ports area, offering top-quality ULSMGO max 0.1%, spec 8217:2012, with density ranging from 0.825 to 0.890/CBM. We own three storage tanks with a total capacity of 16.5kMT in Szczecin. We boast an impressive fleet, which consists of 23 road tankers, six self-propelled bunker barges and one coaster. We serve all the Polish ports, including Gdańsk, Gdynia, Szczecin and Świnoujście. Additionally, we have two storage barges in the ports of Kołobrzeg and Władysławowo. Our fleet meets all required standards and specifications. As a modern and versatile company offering road and sea transport, we are able to offer supplies both ex-truck and ex-barge. The company’s premises are situated in the centre of the port of Szczecin, in the direct vicinity of marine berths and conveniently located close to road and rail routes. The whole area covers an impressive 13,000m2.

World Bunkering Spring 2016

With a diverse customer base and the ability to source large volumes, we are able to offer attractive prices. Our high-quality products are always certified by specialised laboratories following examination of fuel samples. You can be confident that our cargo is always of top quality and free from any impurities. We provide professional, cost-effective and reliable services, 24 hours a day, seven days a week and 365 days a year. Our young, highly skilled and experienced team offers a profound and extensive bunkering knowledge, deep comprehension of our clients’ needs and versatile solutions tailored to customers’ demands. Smooth physical operations and welldeveloped logistics make us a reliable and credible supplier. Our key advantages include fast deliveries, continuous availability and full operations back-up. Oktan Energy & V/L Service was established in 1997 as a trader and supplier of heating and diesel oil for the Polish market. In 2002, we increased our range of products, selling marine fuel. Shortly after

that, the company became the main physical supplier for inland river shipping and fishing boats. At the end of 2004, we expanded our business activities on the international market. The company has continued to grow significantly ever since, developing close relationships with major fuel traders and brokers all over the world. Since the beginning of 2015, after the introduction of sulphur emission control area (SECA) rules for vessels operating in the Baltic Sea, we have become a powerful physical supplier in the low-sulphur MGODMA market. Currently, we are in the process of constructing three new tanks, each with a capacity of 5.8kMT. This means that, by the end of 2016, we will have extended our total storage capacity to 34kMT in six tanks. Most important, we’re also planning to reconstruct our fuel terminal berth, to allow 10,000 dwt oil tankers direct access to the terminal. This will improve our cargo storage and handling even further. ⏏

Company news

In safe hands

Company news

War on waste Since 1993, EMEPCO has risen to the challenge of efficient disposal of oily water and slops

mirates Marine Environment Protection Company (EMEPCO) was established in 1993 with the aim of providing proper and efficient methods for the disposal of slops, oily water and waste oil to the various sections of the oil industry, particularly those involved in sea transportation. With a long-term agreement with the government of Fujairah, EMEPCO is today one of the prime companies providing slop reception facilities in the Port of Fujairah, Khorfakkan and various other ports in the United Arab Emirates (UAE), as stipulated in Marpol 73/78 Regulation 38 /Chapter 6/Annex 1. This was in response to the increasing demand for environmentally safe tank cleaning and disposal of oily water from product tankers in the anchorage of Fujairah, located on the east coast of the UAE. EMEPCO’s strategic location in Fujairah, one of the world’s major oil tanker destinations, gives the marine industry an opportunity to deliver slops generated from

the crude oil washing and tank washing of product tankers, etc, to a 24-hour reception facility. This enables the vessels to comply with the zero oily water discharge restriction in the Gulfs Area, which is listed as a Marpol special area. ⏏

Mesos Ltd Bunker with confidence

ince its foundation in 2003, Mesos Ltd has accumulated the knowledge, experience, competence and skills required to provide quality bunkering and shipping services in the Russian far east. As an independent physical supplier, we aim to meet all our clients’ needs and conduct supply operations to the highest standards. We provide a service to our customer that requires sophisticated logistical operations designed to meet their strict fuel quality and delivery scheduling needs. In the Russian far east bunker market, we are well known for our reliability, strict but well balanced work standards and extended data base for strategic partnerships. Our team of highly experienced professionals applies a personal approach in dealing with clients, offering competitive rates and 24/7 service to satisfy customers’ requests. The quality of supplied fuel to our customers’ fleet is the highest priority to our company. That is why we strictly monitor the whole process of delivery at every stage, from the depot storage facility,

through transhipment and transportation, and, finally, to the client’s vessel. We supply fuel at the following ports in the Russian far east: Vanino, Kozmino, Vladivostok, Korsakov, Vostochniy, Nakhodka, Zarubino , Posyet and Slavyanka. All supplied fuel is compliant with the Russian GOST standards and technical specifications and ISO8217:2012 in case of supply to a foreign vessel. We possess certificates of the highest quality from all the leading independent surveying companies.

General director Alexei Peredera

Mesos Ltd takes its civil liability very seriously and is committed to the highest social and health and safety standards, providing appropriate work conditions for its employees and environmental protection. We ensure a secure process when loading and unloading products and when undertaking other activities connected with ship maintenance and servicing. We also focus on environmental safety issues and prevention of oil spills. The ompany joined IBIA in 2015 ⏏

MESOS Ltd Admiral Fokin Street 8/1B, Vladivostok, Primorskiy region, Russia 690091 Tel: +7 (423) 240-64-91 Fax: +7 (423) 240-66-98 E-mail: office@mesos.su Website: www.mesos.su

World Bunkering Spring 2016

We deliver a first class complete marine fuel & lubricants package.

ertas Energy is the largest distributor of Shell lubricants and greases in Britain, offering customers top quality products, supported by unparalled sales, technical and operational service to the marine market. Certas Energy understands that maintaining vessels, equipment and machinery is essential to the smooth running of your business. Customers have access to the full portfolio of products including: Distillate, IFO and MGO grade fuels and lubricants. As well as British-based dedicated account managers to offer specialist advice and support, Certas Energy can meet same day delivery on emergency orders, as well as a 24/7 fast fill offshore tote tank service, incorporating a collection and drop off at your chosen port. Any bespoke customer requirements can be met, no minimum or maximum order requirement, which is another example of Certas Energy’s multisector offering that provides optimum costeffective protection for offshore operations.

Certas Energy provides a fast, reliable and efficient service from over 150 depot locations nationwide, essential to ensure your business never stops. We offer full technical support with access to Shell technical services including: rapid lubricants analysis, dedicated warehousing and vehicles for marine distribution to international marine and offshore customers.

Gary Byers, Head of Marine at Certas Energy, commented: “We believe that the combination of Shell’s quality products and Certas Energy’s comprehensive service ensures that our offer surpasses any other in the marketplace. With over 1 million litres of Shell bulk and packed stock held at locations nationwide; our daily deliveries from suppliers are backed up with advice and support, with a reliable and efficient delivery service.” ⏏

Company news

CERTAS ENERGY

For further information on the Shell offering through Certas Energy, contact 0345 601 1880 or email marine@certasenergy.co.uk

WORLD BUNKERING SUMMER 2016 ISSUE Oil Majors Our annual survey of the Oil Majors scene. The development of new fuels has raised the profile of the majors over the past year. But are they really interested in bunkers? We look at what the big players have been doing.

Fuel Management While there may have been fewer problems than expected as ships switch fuels when entering or leaving Emission Control Areas the process has not been completely problems free. Will this become more of an issue as the global 0.5% sulphur cap draws

GEOGRAPHICAL FOCUS: Eastern Mediterranean We swing around the Eastern shores of this major waterway and include Greece, Turkey, Cyprus and Port Said.

Russian Update News, Views, Analysis

Regular Features Interview, Industry News, Environment, Testing, LNG, Risk Management, Innovation, Legal News, Equipment and Services, Diary Event Previews & Review

Americas and Caribbean With the expansion of the Panama Canal set for completion we look at how bunkering patterns may be changing around the region.

Scrubbers A significant number of owners have ordered scrubbers and more are set to follow. But what effect has the lower oil price had on the economic case for installing scrubbers? And there are still regulatory uncertainties. We look at what is on offer.

World Bunkering Spring 2016

Diary

8 February 2016

23-24 March 2016

IBIA ANNUAL DINNER 2016 LONDON, UK

8TH ARCTIC SHIPPING SUMMIT, CANADA

2016 will see the event go “Back to the future” with a return to the Grosvenor House Hotel, Park Lane, London. Peter Hall, CEO of IBIA said ” It is great to be taking our dinner back to the Grosvenor House Hotel, it is like taking the event home! Although we are going back to the Grovesnor House we will not stop the progression of this great event. It really will be like going Back to the future!.

www.ibia.net

9-11 February 2016

INTERNATIONAL PETROLEUM WEEK 2016, LONDON UK International Petroleum (IP) Week, hosted by the Energy Institute is widely recognised as one of the major annual international oil and gas events, where decision makers gather to debate, learn and help shape the future direction of the industry. IP Week attracts delegates from over 50 countries every year.

We will be deeply exploring new developments and regulations that will come into action for the Arctic Shipping indusrty. Combining expert views, govermental officals and industry service providers to expand and increase effiency & knowledge for new generation shipping and operations.

www.wplgroup.com/aci/event/arctic-shipping-summit

27-29 April 2016

THE 37TH INTERNATIONAL BUNKER CONFERENCE, COPENHAGEN, DENMARK The International Bunker Conference (IBC) has become a world renowned forum for the international bunker industry. The previous IBC’s have focused on the industry milestones and challenges presented by MARPOL Annex VI. The upcoming conference will expand on this very important topic, its impact on shipping and current solutions. Don't miss the chance to obtain an update on what’s happening in the bunker industry as well as to meet old and new friends at this great networking arena.

www.bi.edu

www.energyinst.org

24-25 February 2016 SMM ISTANBUL 2016

Turkey’s economy continues to grow and the achievement of its goal to become one of Europe’s top shipbuilding exporters is on course. SMM Istanbul (a foreign subsidiary of SMM Hamburg, the world’s leading international maritime trade fair) provides an opportunity to meet with the key stakeholders involved in the development of this important regional maritime industry hub.

www.smm-istanbul.com

6-10 March 2016

MIDDLE EAST BUNKERING CONVENTION 2016, DUBAI The first annual Middle East Bunker Convention is designed to highlight the exceptional growth taking place in the marine fuels sector in Dubai but to examine the markets and players active in Fujairah, Sharjah and elsewhere in the United Arab Emirates, as well as in Oman, Kuwait and the other key supply and delivery centres in the Mideast Gulf region. This exciting Convention consists of a range of highly-focused one-day training courses on bunkering, risk management, shipping and marine surveying and a high-level twoday conference.

www.petrospot.com/events

13-17 March 2016

MIDDLE EAST BUNKERING CONVENTION – DUBAI The first annual Middle East Bunker Convention will include a two-day conference highlighting the region’s markets and players, the impact of the easing of Iranian sanctions, future bunker quality and preparing for 2020/2025 and a range of key legal issues. It also includes a three-day IBIA’s one-day Basic Bunker Course, Oxford Bunker Course (Advanced), a four-day Marine Surveying Masterclass and a half-day Bunker Dispute Resolution Workshop.

www.petrospot.com/events

16-18 March 2016

ASIA PACIFIC MARITIME, SINGAPORE Meet 15,000 decision makers, shipowners, shipbuilders and other key players from the maritime and offshore community in 3 days.

www.apmaritime.com

21-23 March 2016

CMA SHIPPING, STAMFORD, CONNECTICUT Join the international shipping community at the Connecticut Maritime Association’s 31st Annual Shipping Conference and Exhibition, March 21-23, 2016 at the Hilton Hotel, Stamford, Connecticut, USA

www.cmashipping2016.com.

23-27 May 2016

MARITIME WEEK AMERICAS 2016, FORT LAUDERDALE Returning to North America, Maritime Week Americas comprises a full week of key maritime events, including the MWA Conference – the largest and most popular bunkering conference in the Americas. Top-level training, including the IBIA Basic Bunker Course, An Introduction to Shipping and An Introduction to Bunker Disputes is on offer, as is an exhibition and some exciting pool-side social events overlooking the Atlantic Ocean. MWA 2016 also includes a guided tour of Port Everglades, one of the biggest and most important cruise, petroleum and container ports in the Americas.

www.petrospot.com/events

6-10 June 2016

POSIDONIA ATHENS, GREECE. Engage with technical and operations executives responsible for the industry’s most demanding fleet expansion programme, now widening into new sectors and creating a multi-billion dollar opportunity for suppliers of ships’ equipment and services.

www.posidonia-events.com

27 June - 01 July

MARITIME WEEK AFRICA – ACCRA, GHANA The week comprises the two-day Oil & Shipping Africa Conference, which focuses on African oil, shipping and bunker markets and the three-day Oxford Bunker Course (Advanced). Both are designed to bring together suppliers and buyers from some of the most dynamic and active markets in Africa.

www.petrospot.com/events

22-23 September 2016

ARACON 2016 – ROTTERDAM

ARACON is the longest-running and biggest bunkering conference in the Amsterdam-Rotterdam-Antwerp region. Its no-nonsense conference programmes attracts all the main bunker suppliers and barging companies in the ARA and Northwest Europe as well as shipowners and managers from throughout the region.

www.petrospot.com/events

October 2016.

SIBCON SINGAPORE The 18th Singapore International Bunkering Conference and Exhibition brought in over 1600 participants from all over the world, and lived up to its reputation of the “place to be” for the marine fuel industry. The programme comprising of cross sector industry roundtables, high level keynote speeches and market analysis sessions proved extremely popular.

www.sibconsingapore.com

World Bunkering Spring 2016

Posidonia 6 -10 June 2016

Metropolitan Expo, Athens Greece

enter

the multi-billion market The International Shipping Exhibition

posidonia@posidonia-events.com