Wb summer2014 by Maritime Media

Summer 2014

Focusing on

quality IBIA takes the lead

World BUNKERING

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Inside this issue: Innovation - Are PM shaft generators game-changing technology? Mediterranean round-up - confidence returns Oil majors - adjusting to changing times

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Editor’s letter

Quality, quantity and availability

hen I first became editor, it was only a slight exaggeration to say that most pages of World Bunkering were concerned with quality and quantity. Since then, things have changed massively, with environmental pressures on the industry really becoming the driver of most developments. Nevertheless, quality and quantity are still fundamental issues and this issue is full of references to quality. There is no need to go into details in this column – the chairman’s introduction and the interview I conducted with Jens Maul Jørgensen clearly show that quality is now right up at the top of the agenda. Quantity still matters. In fact, it matters more than ever given current prices. The big development, carried on our news pages, is that Singapore has taken the big step of deciding to make the use of mass flow meters mandatory within a quite short timeframe. That is a really important move and will be examined in detail in our September issue. Availability? Now this is quite a new issue but one that could become much more prominent as environmental regulations come into force. Availability of fuel after the global 0.50% sulphur rule comes into effect was one of the issues dealt with at the recent IMO Marine Environment Protection Committee meeting. On page 33, IBIA’s representative at the International Maritime Organization (IMO), John de Rose, explains what went on in what is hoped will be the first of his regular reports on IMO matters. There are, of course, widespread concerns about availability, and price, once the 0.10% sulphur limit comes

World Bunkering Summer 2014

into effect in Emission Control Areas (ECAs) in January next year. On 21 April our online news service (www. worldbunkering.com) picked a different slant on this. US-based analyst ESAI Energy’s newly published twoyear Global Fuels Outlook says: “With crude oil output in North America raining down on US Gulf Coast refiners, creating a healthy supply and advantaged prices of feedstock, a ‘tidal wave’ of products flowing out of the US will be eager to capture export markets.” ESAI’s statement does not make a connection with the impending ECA limit, but the prospect of increased availability of distillate in the near future will surely be of interest to shipowners trading in the ECAs. Incidentally, this is a plug for World Bunkering’s website and free-access online news service. Many of the stories eventually appear in some form in the quarterly magazine, but for news as it happens check out www. worldbunkering.com. Returning to these pages, this summer issue is packed with information, not least on what is happening around the Mediterranean. This is appropriate as Posidonia takes place in June, against a background of cautiously increasing optimism within a region that has taken quite a hit in the downturn. We review this major shipping event on page 104. Talking of optimism, our news pages also report the latest Moore Stephens Shipping Confidence Survey. This found that overall confidence levels in the shipping industry rose to their highest level for almost six years. Possibly one sign of long-term confidence in the industry is the large

number of bright new ideas that keep popping up. Our front cover illustrates one of several new developments that appear in our innovation pages – The Switch’s permanent magnet (PM) shaft generators. A subject that should perhaps feature more often in these pages is training. However, in this issue, on page 105, we report on a new training course that teaches how to switch to low-sulphur fuel when operating in ECAs without damaging the machinery. This is also a subject that we are likely to hear more about in the coming months as the 0.10% ECA sulphur limit draws closer. Lastly, do please take a look at our diary of events, on page 108. There is a lot going on – not least the IBIA Convention in November, which is being held in Hamburg. There will more on this in the next issue. David Hughes, editor

Summer 2014

Publisher: W H Robinson Editor: David Hughes

Focusing on

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quality IBIA takes the lead

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InsIde thIs Issue: Innovation - Are shaft generators game-changing technology? Mediterranean round-up - confidence returns Oil majors - adjusting to changing times

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Summer 2014

Editor’s letter Chairman’s introduction Chief Executive’s report Africa Report Lawhill Asia Report New members Events report IBIA Dinner Noticeboard Industry news Environment Interview Fuel management Scrubbers Oil majors Risk management Testing Spain Italy Greece Cyprus Malta Strait of Gibraltar Morocco Turkey Australia UMF Interview Russian update

IBIA reports 1 7 9 11 13 15 16 21 23 29 Special features 30 33 36 38 40 44 47 49 Geographical focus 53 55 57 59 61 63 66 67 71 73 75

Innovation Legal news Equipment and services Review: Tranzit Review: APM Review: IBC Preview: Posidonia Training IT

84 87 89 91 93 94 95 105 106

Diary

108

106

11th Annual

BUNKER & RESIDUAL FUEL OIL CONFERENCE Fuel Quality, Supply, and Market Dynamics June 24-25, 2014 • J.W. Marriott • Houston, Texas

REGISTER BY MAY 16 AND SAVE $300 Where is the market headed? Gain insights into the key issues moving the market for bunker and resid. • • • • •

How ship owners are planning to meet IMO standards New refining capacity impacting fuel quality and supply Understanding how scrubbers can be cost effective New directions for bunker markets in Latin America and the Caribbean New competitive challenges from China

An outstanding roster of speakers! Hear from: Lars Robert Pedersen, Deputy Secretary General, BIMCO Skip York, Principal Analyst Oil Research, Wood Mackenzie Bryan Wood-Thomas, Vice-President, World Shipping Council Morten Dehn, General Manager, Bunker Department, MUR Shipping José Digeronimo, General Manager, VT Shipping International Eugenia Benavides, Director of Marine Fuels, Terpel S.A. Alfred Ellery Jones, Director, Ventrim Petroleum Company Ltd. Neil Earnst, President, Muse Stancil Sharmilpal Kaur, Associate Editorial Director, Platts Patrick Burns, Associate Editor, Platts Maria Eugenia Garcia, Associate Editor, Platts John-Laurent Tronche, Team Leader, Platts Richard Capuchino, Senior Managing Editor, Platts Steve Bee, Global Business Director, INTERTEK ShipCare Ram Vis, Director, Viswa Lab Robert Graham, Chairman and CEO, Ensyn Technologies Sigurd Jenssen, Director of Exhaust Gas Cleaning, Wartsila Ship Power Vince Guercio, Consultant, CTC International

For More Information or to Register: Visit us online at www.platts.com/ bunkerfuel or call us at 866-355-2930 (toll-free in the US) or 781-430-2100 (direct). For speaking opportunities, contact: Ron Berg Conference Manager tel: 781-430-2118 ron.berg@platts.com For sponsorship opportunities, contact: Joshua Vernon Business Development Manager tel: 781-430-2113 joshua.vernon@platts.com For media inquiries, contact: Khushi Bhatia tel: 781-430-2109 khushi.bhatia@platts.com

Registration Code: PC422WB

t is with great pleasure that I step into the chair for the next 12 months. Firstly, I would like to put on record my great appreciation of my fellow board members Nigel Draffin, Paul Dyke and John Sterling, who step down from the board having reached the end of their tenures. The contribution they have made is both significant and appreciated, it is also understood that their involvement will continue in the relevant working groups in the months and years to come and I really appreciate that. A sincere thank you goes to all three. Also, a big thank you to Simon Neo, who steps down from the chair. Simon has dealt with the ‘new’ office personnel and restructuring, so he has had a challenging year, but it is with much gratitude that I am inheriting a solid foundation, so thank you to Simon and thank you to the whole team. We should also say welcome to three new board members: Unni Einemo from Petromedia, Michael Green from Lintec /Intertek and Lim Teck Cheng of Hong Lam Marine. Their individual expertise will be a great asset to IBIA. Also it is my pleasure to announce that at our first board meeting it was decided that Robin Meech would take up the role as vice-chair. Quality and quantity

My official start as chairman was 1 April 2014 – but I must say that my speech at the “best-ever” IBIA annual dinner on Monday 18 February kickstarted my role, as the vice-chair gets the opportunity at the dinner to introduce a topical issue. For me, it was the fuel quality and quantity debate. I address this more fully in my interview with David Hughes as Jens Jørgensen, director of Oldendorff Carriers, later in this edition. As a shipowner, it is our

World Bunkering Summer 2014

biggest challenge, but, equally, now I am the IBIA chairman representing a diverse membership that includes the whole supply chain. Mass flow meters

As this is being written, I am in Singapore, where the topical issue is the use of mass flow meters (MFM) for fuel oil bunkering. It will be mandatory for bunker suppliers from 1 January 2017 onwards to use MFM. This change in the application of technology is going to have a significant impact on taking bunkers in Singapore. How far will this trend spread? Only time will tell.

Chairman’s welcome

A big thank you

Enforcement

The prospect of weakly enforced Emission Control Areas (ECAs) has also been raised in IBIA forums This raises a real business challenge and it has been commented that there has been open discussion among shipowners as to whether they should bother to comply. IBIA takes the stance that all parties should support a pragmatic solution to the environment. It promises to be an interesting year ahead, and I look forward to meeting and talking with as many of you as possible. Jens Maul Jørgensen, Chairman, IBIA

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an it really be that Anna and I have been in our roles 12 months! Time has passed so quickly, much has happened and is happening. In the past few weeks alone, we have had a highly successful Annual Dinner, attracting 1,127 members and guests, our best attendance yet. We have also attended three major conferences, fielding at least 15 speakers, from the IBIA board, regional executive committees (excos) and from among our members. In total, we have reached an audience of well over 1,000 people, who are ‘movers and shakers’ in the maritime world. Then we attended IMO-MEPC 66 – the 66th session of the Marine Environment Protection Committee – where IBIA delivered a paper that contributed to the fuel quality debate and supported the successful move to bring forward the fuel availability study. Both of these subjects will require further work in the coming months. We then attended the African regional AGM and their first exco of the year and met South African government officials. IBIA matters

Within the association, we have taken on two new people. Becky Howe is working on projects that will deliver greater benefits to you our members. These include a new website, which will be unveiled in June. We have also recruited Tahra Sergeant as regional manager for Africa, an area that is growing significantly. Please see the African region feature for further details on developments. Topical issues

There has been an echo resounding across the globe on some key issues over the

World Bunkering Summer 2014

past few weeks, including fuel quality and quantity, tougher ECA enforcement by authorities, fuel availability – IBIA will take a full part in impending correspondence (see John De Rose’s article on the International Maritime Organization for further details, page 33) – and the introduction of mass flow meters (MFM). Earlier, I mentioned that IBIA had been involved in speaking to a cross-section of the international marine community. This was no accident. Following the Annual Conference and membership surveys, IBIA was given a clear mandate that these topics were the issues that concerned the membership most. So we set about working alongside shipowners, shipping associations and other professional groups to ‘educate and inform’ – through forums and specific platforms to raise these issues for debate. It appears from my postbag that we have it right, and these are timely issues. Thank you to all who have contributed. The debate will continue so please carry on sending in your comments.

Fook Sing, IBIA regional manager, Asia, for dates and details). Social responsibility

I would like to end on an exceptionally encouraging note, and that was my visit to the Lawhill Maritime Centre. The school takes in young men and women from challenged communities across South Africa. It was truly humbling to hear about the transformation that is taking place in these young lives, providing encouragement and opportunities that would hitherto be lost. You can read more in our African feature.

Chief executive’s report

Time stands still for no man

Captain Peter Hall

Training and education

High on the membership priorities was training and education. I am pleased to advise that IBIA has instigated three new courses. • ISO/IEC17020 Internal Auditor Training for Bunkering Inspection Bodies. • Mass Flow Metering – an introduction to the installation of MPAcompliant equipment and procedures. • An introduction to bunkering for the shipowner and ship’s officers. (contact Kwok

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Africa report

Africa report The International Bunker Industry Association now has a regional manager for Africa, Tahra Sergeant. This is her first report on a rapidly developing scene

oining IBIA Africa has meant being on a fast learning curve. Firstly, a special word of thanks needs to be extended to our CEO, Captain Peter Hall, and events and membership manager, Anna Trant, from the IBIA International office in Southampton, who have spent the past week here introducing me to the IBIA and explaining its structure. I am also grateful to Haydn LockhartBarker, our Southern Africa chairman, for helping me with the transition into the position of regional manager, Africa. Having joined IBIA just a few weeks ago, with my remit to develop the Association on the African continent, I’m truly excited about the potential that exists to grow our presence and add value to the shipping and bunker industry as a whole. Given the pace of growth in Africa, which is being driven by the oil and gas industry, there is a strong need to develop the aims and objectives of IBIA in the African context. My background is not within the industry, but advertising and public relations. I bring fresh eyes, the skill and tenacious ability to open doors and elevate the brand of IBIA Africa, not only in visibility but in offering. My role will include events, marketing, media and being the customer focal point, as well as supporting the chairman and the executive committee (exco) as

World Bunkering Summer 2014

effectively as possible. I have a number of initial targets • To establish and register IBIA Africa •

• •

•

as a not for profit company. Also, as the first regional manager Africa, based in Cape Town, my task will be to develop effective and transparent communication with our members. To be a conduit in addressing technical questions Another of the branch’s key objectives is to establish the Africa branch as a financially sustainable branch. To develop a business plan in-conjunction with the chair and the exco. To ensure that we establish key networking opportunities for the industry. Offer topical forums to address immediate areas of concern for the region.

AGM

The AGM followed the exco meeting and was well attended. Captain Hall gave the keynote speech and brought local members up to speed on international events and important matters arising in the global marine fuels industry and how to align to these changes locally. The chairman’s review pointed Tahra Sergeant

Southern Africa Branch: AGM and exco

In my second week, the Southern African branch held their AGM and exco meetings, which were hosted by Webber Wentzel (one of Africa’s leading maritime law firms). It was an opportunity to meet the members of the branch for the first time as well as members of the executive committee.

Africa report 12

out a number of challenges; however, it is clear that significant progress is being made, especially in developing relationships with government agencies and non-governmental organisations (NGOs) in South Africa in particular events that will lead up to offshore bunkering in South African waters. His other key inputs were on developing the regional bunker industry, ensuring transparency and encouraging sustainable development for the region, based on good practice and environmentally sustainable procedures. IBIA is currently developing a training model that would provide the foundations for a sustainable African bunker industry. Lockhart-Barker and Captain Hall both outlined the importance of corporate social responsibility (CSR) and, in this regard, I had the absolute pleasure of visiting Lawhill Maritime Centre in Simonstown. We were welcomed by the head of the centre, Brian Ingpen, who some of you may have met or heard speak at the Annual Dinner held in February in London. As the dinner raised an amazing ÂŁ5,000, it was an honour to see where this money goes and the great appreciation with which this assistance is accepted. This is an exciting CSR opportunity and we look forward to working with Lawhill more closely in the future, along with other maritime organisations, to support young people from challenging circumstances to have the potential of a fruitful career in the marine industry. In a major development, the South African Maritime Association (SAMSA) has agreed to work with IBIA in developing the South African Code of Practice for Offshore Bunkering. This will be a first for the country as it starts to develop its maritime interests after a long period of shrinkage in bunker volumes owing to various macro-economic policies. I look forward to sharing further news with you on this and other projects that take place across the African continent. I am particularly looking forward to engaging with all the members of the regional maritime community and working closely with the branch executive and chair.

World Bunkering Summer 2014

Lawhill

IBIA helps SA academy IBIA members raised some £5,000 for South African training academy Lawhill Maritime Centre, Simon’s Town, at their annual dinner in London in February. The money will be used to take on extra students

BIA’s chief executive, Peter Hall, said that the centre was doing a remarkable job in preparing young South Africans, many from disadvantaged backgrounds, for careers within the maritime industry. He said IBIA was raising further funds for the centre and exploring other ways to assist Lawhill. The academy’s head, Brian Ingpen, said it was the only secondary school facility in Africa offering two streams of maritime study that help prepare young people for careers within the maritime industry. He added that students who begin the course with little background, some not even having seen the sea or a ship at close quarters, emerge with a range of knowledge and skills that leads to jobs in the shipping industry. He explained that a pilot programme began in 1996. The project was then formally established in 1997, aimed at grade 10 to 12 students (ages 15 to 17 years ) ie their last three years of secondary schooling. The vast majority of the students are from economically disadvantaged backgrounds and come from several townships all over South Africa. Major maritime companies or organisations provide financial assistance/bursaries, which enable many students from disadvantaged communities to participate in the programme.

World Bunkering Summer 2014

Lawhill 14

According to Ingpen, the aim of the maritime studies programme is to attract young students to the shipping industry, stimulate maritime awareness among young people and provide the industry with high-quality, skilled and knowledgeable employees at sea or ashore. Upon finishing the maritime studies course at Lawhill Maritime Centre, young South Africans can choose to either continue their studies in the maritime field by going to sea as cadets or ratings on merchant vessels (containerships, tankers, bulkers, research vessels or salvage tugs) or to follow careers ashore in various fields such as liner operations, port operations, ship’s agents, shipbrokers, the clearing and forwarding sector and bunkering, among others. The maritime studies programme has been recognised internationally, as shown by three awards: Lloyd’s List Salute to Youth and Training Award, London, 1999; Seatrade Award for Investment in People, London, 2012, and the Impumelelo Award for Training (Platinum Award — Highest Category), Cape Town, 2013. Ingpen thanked IBIA for its help, which would make a significant difference, he said, and noted: “The challenge to us is to remain a centre of excellence as we continue to nurture not only maritime awareness, but to provide a hand-up in life for deserving young people.”

World Bunkering Summer 2014

Asia report

Inaugural inspection course Eleven candidates recently successfully completed the International Bunker Industry Association’s bunkering inspection course in Singapore

BIA Asia has conducted its inaugural ISO/IEC17020 Internal Auditor for Bunkering Inspection Bodies course, with 11 participants from seven different bunker inspection bodies. The ISO/IEC17020 is a quality management system for bunker inspection bodies (surveying companies) in Singapore and is a requirement to obtain approval from the Maritime and Port Authority of Singapore to carry out bunker surveying activities in the country. This course provides participants with the necessary knowledge and skills to enable efficient implementation and operation of their quality management system, so as to further improve their services and provide value to their customers. The 11 participants successfully completed their two-day training session, comprising knowledge and understanding of the standard as well as practical case studies specific to their industry. All the participants are fully satisfied with the course and are confident that they will be able to implement and maintain their organisation’s quality management system efficiently when they return to work. The chairman of the IBIA board, Jens Maul Jørgensen, was on hand to present the certificates.

World Bunkering Summer 2014

Participants with IBIA chairman Jens Maul Jørgensen, course trainer Tai Cheong Shin and IBIA Asia regional manager Kwok Fook Sing

Participating organisations:

ABS Consulting (S) Pte Ltd Ouzo Marine Services Pte Ltd Potential Inspection Services Pte Ltd Redwood Inspection SGS Testing & Control Services Singapore Pte Ltd Unispec Services (Singapore) Pte Ltd

Ms Mark Yoke Fong receiving her certificate from Jens Maul Jørgensen

Unispec Adjusters & Surveyors (S) Pte Ltd Viswalab Singapore Pte Ltd

New members

CORPORATE Bunker Trader Lim, Kin Man Newocean Petroleum Co. Ltd 36th Floor Times Tower Two 393 Jaffe Road Singapore kmliu@newoceanhk.com Bunker Trader Kotronakis, Georgios Seaview Shipping & Trading Ltd 124 - 126 Borough High Street London SE1 1BL UK gkotronakis@seaviewsb.com Bunker Broker Hills, James Lindsay-Blee & Co. Ltd Children House 45 Station Road Henley-on-Thames Oxon RG9 1AT UK j.hills@lindsay-blee.com Bunker Supplier Baekkegaard, Carina Royalty Petroleum 32 Platinum Business Centre Al Nahda 2 Al Qusais Dubai UAE sales@royaltybunkering.com Service Kroger, Martin VDR - German Shipowners Association Burchardstr. 24 Hamburg 20095 Germany kroeger@reederverband.de

Service Borda, Michael Global Agency Company Suite 21B Don House 30/38 Main Street Gibraltar GX11 1AA Gibraltar michael@gacgibraltar.com Bunker Supplier Eraydin, Deniz Gemi Yakit Ikmalcileri Dernegi (TBA) Carsi Cad No. 31 Kuzguncuk Istanbul 34674 Turkey info@gyid.org.tr Bunker Trader Tamura, Masahide Hanwa Co. Ltd 6-18-2 Ginza Chuo-ku Tokyo 104-8428 Japan tamura-masahide@hanwa.co.jp Bunker Broker Heymann, Sven KG Fisser & v.Doornum GmbH & Co./Fastbox Atlantic Haus Bernhaud-Nocht-Str. 113 Hamburg 20359 Germany management@fissership.com Bunker Supplier Callais, Kirk Atlantic Gulf Bunkering LLC 110 Beauregard Street Suite 300 Mobile, AL 36602 USA kirk@agbllc.com

World Bunkering Summer 2014

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Oryx Bunkering Services, Addax Energy SA 12, rue Michel-Servet, P.O. Box 404, 1211 Geneva 12, Switzerland Tel: +41 (0)58 702 90 40 Fax: +41 (0)58 702 91 40 Email: bunkering@oryxenergies.com Website: www.oryxenergies.com

New members

Bunker Supplier Matzdorf, Aleksandra Anchor Bunkering Company Corporation No. 8 Aquilino Dela Guardia Street City of Panama Panama aleksandra@bullion.com.gh Bunker Trader Melchior, Simon EHE Marine Services Ltd 4 Warehouse Road P.O. Box 187 Apapa, Lagos Nigeria simon.melchior@ehe-group.com Bunker Supplier Mondragon, Leonor Navalmex Combustibles, S.A. de C.V Margaritas 425, Colonia Florida Delegación Álvaro Obregón, México, D.F. 1030 Mexico City lmondragon@naval-mexicana.com.mx Ship Owner Tuncer, Murat Turkish Chamber of Shipping Meclis-i Mebusan Cad. No:22 Findikli\Beyoglu Istanbul 34427 Turkey Murat.TUNCER@denizticaretodasi.org.tr Service Bin Damanhuri, Mohamed Sufian Malaysian Fuel & Energy Training Academy SDN. BHD No. 26 Jalan Helang 2 Taman Scientex Casuarina Pasir Gudang Johor 81700 Malaysia chong@myfeta.com Service McEvoy, Daniel DCC Oil Ireland Ltd Clonminam Industrial Estate Portlaoise Co. Laois Ireland daniel.mcevoy@dccoilireland.com Bunker Trader Wan Mohamad, Wan Kamarul Komas Energy SDN BHD 37 Jalan Bukit Permai Utama 3 Taman Industri Bukit Permai Kuala Lumpur 56100 Kuala Lumpur komasenergy@gmail.com

CORPORATE ADDITIONAL Bunker Supplier Eraydin, Deniz Turkish Bunker Association (TBA) Carsi Cad No. 31 Kuzguncuk Istanbul 34674 Turkey deniz@cyepetrol.com.tr Bunker Supplier Matzdorf, Aleksandra Anchor Bunkering Company Ltd No. 8 Quartey Papapio Ave Airport Residential Area Accra Ghana alex@anchorbunkers.com

World Bunkering Summer 2014

Bunker Supplier Zuiddam, Joost Finco Bunkering BV Mylweg B1 Dordrecht 3316 BE Netherlands jzuiddam@finco.com Service Hayes, Alan Argus Media 175 Saint John Street London EC1V 4LW UK alan.hayes@argusmedia.com

Bunker Trader Nasseh, Alireza Sokan Middle East, FZC Office 607, Citadel Tower Business Bay, SZR P.O. Box 117475 Dubai UAE arn@sokanme.com Bunker Trader Gawthrop, Marc Arbutus Point Marine Ltd 1786 Arbutus Point Road Bowen Island B.C. Canada V0N 162 Canada marc@mexicobunker.com

Bunker Supplier Braithwaite, Robert Singapore Petroleum Co. Ltd 4A Nelson Road London SE10 9JB UK robert.braithwaite@spc.com.sg

Service Sykes, Mark Viking Star Shipping Agency SL C/. Dr Juan Domingues Perez, 18 Edif. Ecopesa, 2nd Floor Office 7 Las Palmas de Gran Canaria 35008 Spain msykes@vikingstarsl.com

Service Hardy, Paul Firm Counter Ltd Jordans Courtyard, 8 Upper High Street Thames OX9 3ER UK paul.hardy@firmcounter.com

Service Wilson, Stuart Wilson Marine Management Ltd 18 Henryville Court Ballyclare Co. Antrim BT39 9FS N. Ireland stuart@wilson-marine.co.uk

Bunker Broker Kuppuswamy, Kumar Mammoth Singapore Pty Ltd 67 Howe Street Osborne Park Western Australia 6017 Australia kumar@mammothshipping.com

Bunker Supplier Shalavin, Anton Global Bunkering Ltd 200 Amatountos Ave. Marina Beach Complex Office 5, 6, 7 4533 Cyprus bunkers@globalbunkering.com

Bunker Trader Kovalevych, Vladimir Limako Maritime (UK) Ltd Box 70, 95 Wilton Road London SW1V 1BZ UK info@limakomaritime-uk.com Bunker Supplier Kovalevych, Inna Marine Standart Ltd 5 Lenin Street, of 5 Kerch Ukraine 98300 Ukraine info@seastandard.com

World Bunkering Summer 2014

Bunker Supplier Zhbannikov, Petr Global Bunkering Ltd 200 Amatountos Ave. Marina Beach Complex Office 5, 6, 7 4533 Cyprus head@globalbunkering.com Bunker Supplier Kwok, Janice Chimbusco Pan Nation PetroChemical Co. Ltd PAN NATION PETRO-CHEMICAL (DENMARK) APS LANGEBROGADE 5 Copenhagen 1411 Denmark janice.kwok@chim-pn.com

Service Van Der Velden, Peter Kiveld International Lawyers Koningskade 40 The Hague 2596 AA The Netherlands pv@kiveld.nl Bunker Trader Arous, Joseph GMA Petroleum Holding 63 Ifigenias & 12 Agias Sofias Office 101 2003 Strovolos Nicosia Cyprus josepharouss@gmapetroleum.com Ship Owner Stamp, Klaus S. Dampskibsselskabet Norden AS Strandvejen 52 Hellerup 2900 Denmark kst@ds-norden.com

New members

INDIVIDUAL

Bunker Supplier Malik, Zeeshan Zeeshan Oils Bunker Suppliers Mezanine Floor 42C Shahbaz Commercial Area Lane IV (4) Phase VI (6) Karachi 75500 Pakistan zeeshan@zeeshanoils.com

HONORARY MEMBER Service Hough, Robert N/A 47 Brooklyn Road Bromley Kent BR2 9SD UK robert.hough@talktalk.net Service Kassinger, Rudolph Kassinger Consulting 133 Bingham Avenue Rumson, NJ 7760 USA kassingerconsulting@gmail.com

IBIA events

ur calendar over the past couple of months has been busy. The first event of the year was our biggest ever; over 1,100 people attended the IBIA annual dinner at the Grosvenor House Hotel in London in February. This year saw some innovations, and we have further plans for next year – more information nearer the time. We would like to extend our thanks to the guests who raised £5,000 for the Lawhill Maritime Centre in Simon’s Town, South Africa. For further information, read our report on the Africa branch. Tickets for the 2015 dinner will go on sale in the summer, so keep an eye on our monthly newsletter for further details. In March, we joined forces with the sixth Chemical and Product Tanker Conference in London, an event that put us in contact with an audience of shipowners and managers. IBIA held a forum on fuel quality before the main conference, which generated discussion on fuel quality, testing (in particular on the effectiveness of onboard testing kits) and the usability of off-spec bunkers. The event tied in with two of our key objectives: to provide good guidance and information on fuel quality, and to attract more shipowner members. Later on in March we ran a similar seminar as part of Asia Pacific Maritime in Singapore. While the theme was the same as the London event, the focus of the questions was very different – centring on the issue of mass flow meters and how implementation in Singapore will affect our members. The continued expansion of IBIA’s events programme is enabling us to address the issues that affect each region. Next, we move to Panama for Maritime Week Americas. If you’re in need of a basic bunker course, we are running one in either English or Spanish on 20 May. Peter Hall and Anna Trant will also be attending the conference and we will have space in the exhibition hall, so please come and say hello and tell us of any issues you’re facing. At Posidonia in Athens in the first week of June we’re sharing exhibition space with the Gibraltar Port Authority, and we will be taking bookings for meetings with members so we can discuss any problems you’re dealing with. Visit the stand to make your appointment, or contact Anna Trant in advance (contact details below). We return to the UK for Maritime Logistics and Energy – taking place in Liverpool, where we’ll be holding a seminar and bunker course on 18 and 19 June. Looking further ahead, we travel to Gibraltar for a seminar in September, and then on to SIBCON from 14-16 October. If you want to take part in our annual golf challenge immediately after SIBCON on 17 November, get in touch soon. Then it’s the big one – our annual convention in Hamburg from 4-6 November. The focus will be on quality and compliance, and we tie in with Eisbeinessen on Friday 7 November. More details (and information on how to book a discounted room) coming soon on our website. And, lastly, onto 2015 – in addition to the annual dinner in London, we will be hosting an awards evening and dinner in Singapore. Expect a night of luxury – we hope to see you there! For further details on any event, visit our website: www.ibia.net. If you’d like to talk about sponsorship of any event or offer your services as a speaker, contact Anna Trant at anna.trant@ibia.net or on 020 3397 3850.

World Bunkering Summer 2014

2014/15 EVENTS PROGRAMME

2014 May 19-23 June 2-6 Jun 9-20

September 1-3 September

Panama - Maritime Week Americas IBIA Basic Bunkering Course in English and Spanish

Athens - Posidonia

Visit our stand in the exhibition area

Liverpool - Maritime Logistics & Energy IBIA Seminar on Bunkers: Qualifying Quality, IBIA Basic Bunkering Course,

Panama

Singapore

Liverpool

Cape Town

Hamburg

Gibraltar

Durban

Athens

Durban - African Ports Evolution

IBIA Bunker Training Opportunities in Africa Seminar

Gibraltar - IBIA Seminar Mediterranean Bunker Market Bunker Operations Training

October 14-16

Singapore - SIBCON

October 17

Singapore - Post-SIBCON

November 4-6

Hamburg - IBIA Annual Convention

December

Cape Town - IBIA Southern Africa

IBIA Seminar, Bunkering Growth IBIA Annual Golf Challenge

Clariﬁng Quality and Compliance

Annual Dinner

2015 February 16

London - IBIA Annual Dinner

April 24

Singapore - IBIA Asia Annual Dinner

TRAINING

IBIA Asia carries out a variety of training courses throughout the year

Grosvenor House Hotel and Bunker Awards

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.

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

www.ibia.net

World Bunkering Summer 2014

IBIA Dinner

Photographs

Oil Marketing & Trading International (Europe) SA MARINE FUELS

in UAE in CEUTA - Spain

and now

in JAMAICA Office 2001, Saba Tower 1, JLT DUBAI, UAE Tel: 00971 4 4350500 Fax: 00971 4 4350505 E-mail: bunkers@oil-marketing.com

12 Kithiron Street, Alimos 17455 ATHENS, GREECE Tel : +30 2109609860 Fax : +30 2109609861 E-mail: bunkers@oil-marketing.com E-mail: ceuta@oil-marketing.com E-mail: jamaica@oil-marketing.com

8 Eu Tong Sen Street, #18-83 The Central 059818, SINGAPORE Tel: 0065 6222 4028 Fax:0065 6222 4027 E-mail: singapore@oil-marketing.com

WEB: WW W. O I L - M A R K E T I N G . CO M

IBIA Dinner

World Bunkering Summer 2014

Singapore Premium Bunkering Hub

Searights Maritime Services Pte Ltd Certificate of Accreditation: MPA/AS 04 001 80 Marine Parade Road #16-05/06/07/08 Parkway Parade Singapore 449269

Tel: +65 6344 1108 Fax: +65 6344 1128 email: bunkers@searights.com.sg www.searights.com.sg

IBIA Dinner

World Bunkering Summer 2014

IBIA Dinner .com

Oil by people ElbOil GmbH – Zippelhaus 3 – 20457 Hamburg/Germany – Tel: +4940 3500 392 00 – Fax: +4940 3500 392 29 – E-‐mail: trading@elboil.com

World Bunkering Summer 2014

Benefits to members as at 1 May 2014

Membership Costs

Individual membership: £150 Corporate membership: £700 Corporate additional membership: £150

annual increases. These increases took effect on 1 July 2012 and in future there will be small Additional te Corpora listing of practice present the that decided The Board has also have changes some and needs s’ member meet fairly and properly not Members does ship to member of therefore been introduced that will more accurately match the benefits iat. its cost; affected members will be contacted directly by the Secretar If you have any queries or comments about these changes, then please contact ibia@ibia.net or telephone: +44 (0) 20 3397 3850.

Noticeboard

IBIA noticeboard

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 let the IBIA administration know at ibia@ibia.net. This publication is only available to members. IBIA Guide to In-Line Blending

Available free of charge to members IBIA Guide to Avoiding and Resolving Bunker Disputes

IBIA members receive their personal copy free, but the report is offered for sale to nonmembers at £50.

World Bunkering Summer 2014

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

Global round-up All the news from around the world

Shipping confidence rises

There was good news for shipping from international accountant and shipping adviser Moore Stephens. According to the firm’s latest Shipping Confidence Survey, overall confidence levels in the shipping industry rose to their highest level for almost six years in the three-month period to February 2014. Freight rates look set to improve or maintain existing levels over the next 12 months, while an increase in private equity funding is expected to have a major impact on the industry. In February 2014, the average confidence level expressed by respondents in the markets in which they operate was 6.5 on a scale of 1 (low) to 10 (high), compared with the 6.1 recorded in the previous survey in November 2013. This is the highest figure since the 6.8 recorded when the survey was launched in May 2008. All categories of respondent to the survey reported improved levels of confidence compared with the previous survey. Confidence on the part of owners was up from 6.2 to 6.6, while the rating for charterers (up from 5.7 to 6.5) was the highest in the life of the survey. The rating for managers was up from 6.1 to 6.4, while that for brokers was up to 6.4 from the previous level of 5.6. Geographically, confidence was up in Asia (from 5.9 to 6.4), in Europe (from 6.1 to 6.4), and in North America (from 6.6 to 7.1). However, Moore Stephens notes: “The mood of improving confidence 30

evident in many of the responses to the survey was tempered by an awareness of the difficulties which the industry still faces.” One respondent said: “There are signs that we have passed the deepest point of the recession. The only question now is how long it will take for the markets to improve to the point where we have sustainable rates again. It may be that some shipowners will still not make it because time – or cash and the patience of the banks – will run out.” A number of respondents referred to the rising cost of fuel as a significant performance-affecting factor. “Fuel prices are a deterrent,” said one. “Freight rates have increased, but fuel prices eat into time-charter equivalents.” Moore Stephens’ shipping partner, Richard Greiner, says: “Six years is a long time in shipping. Indeed, based on empirical evidence, it is long enough to qualify as a cycle in what is a historically cyclical industry. It is perhaps too soon to say that we have reached the end of the most recent downward cycle, but it seems that the worst may be over. This latest survey finds confidence in shipping at its highest level since 2008, with genuine prospects for further improvement over the next 12 to 18 months.” He adds: “The outlook in all the major freight markets is brighter

than at any time in recent memory, not least because some of the fears about over-tonnaging have been eased by increased scrapping and by a more pragmatic approach to business expansion, albeit one dictated by necessity. Despite continuing difficulties in certain parts of the world, some of the volatility has been taken out of the global economic and political crises which have characterised the passage of the past few years. That is good for trade and good for shipping.”

Richard Greiner

World Bunkering Summer 2014

Heavy fuel oil to remain mainstay

The Maritime and Port Authority of Singapore (MPA) has cancelled the bunker supplier and bunker craft operator licences of Coteam Petroleum Trading Pte Ltd with effect from 1 April 2014. MPA says it is acting because the company contravened the terms and conditions of the bunkering licences. The MPA said in a statement that the company was found to have breached Clause 3 of the terms and conditions of the Bunkering Licence (Bunker Supplier) by allowing other companies to use their Bunker Delivery Notes to supply bunkers. It was also found to have breached Clause 31 of the terms and conditions of the Bunkering Licence (Bunker Craft Operator) for delivering bunkers on behalf of an unlicensed company to customers of that company. MPA said that, with the cancellation of their bunker supplier licences, Coteam Trading Pte Ltd will no longer be allowed to operate as a bunker supplier in the Port of Singapore since all bunker suppliers are required to be MPA licensed.

A new report from Lloyd’s Register (LR) and University College London’s Energy Institute, Global Marine Fuel Trends 2030, indicates that, in all scenarios, heavy fuel oil (HFO) remains the main fuel for deep-sea shipping while LNG develops a deep-sea bunker market share of 11% by 2030. However, lowsulphur heavy fuel oil and hydrogen emerge as alternatives in some scenarios. In the most optimistic scenario for a more sustainable world, global greenhouse gas emissions from shipping decline from 2025 despite significant growth in shipping. The study shows that the combination of growth in trade and reduced emissions would require a reduction in fossil fuel dependency and the start of a transition to a zero carbon fuel such as hydrogen According to the research, HFO will still be very much around in 2030, but in different proportions for each scenario: 47% in a ‘status quo’ scenario, to a higher 66% in ‘competing nations’ and a 58% share in ‘global commons’, the most optimistic of scenarios for society. LR notes: “A high share of HFO, of

course, means a high uptake of emissions abatement technology when global emissions regulations enter into force.” OW Bunker’s profit jumps

Major marine fuel supplier OW Bunker has reported a 37% growth in adjusted profit in 2013 and a 32% growth in volumes supplied. For the three years ended 31 December 2013, OW Bunker’s volume grew at a compounded annual growth rate (CAGR) of 24%, while adjusted gross profit and adjusted profit for the year grew at a CAGR of 23% and 33% respectively. In the same period, the company has delivered an average adjusted return on equity of 27%. OW Bunker’s CEO, Jim Pedersen, said: “Last year’s results are the continuation of a long track record of profitable, organic growth and a confirmation that our dedication to working integrated with reselling and physical distribution of marine fuel is the right path to success. With our well-invested, scalable business platform and global reach, I am confident that we will continue our solid performance and successfully develop our business further.”

Global news

Singapore cancels bunker licences

Argentine fines on sump oil

The insurer has urged members to declare the quantity of oil in the ship’s sump tanks, especially when calling at San Nicolas. Moreover, the club warns, masters are advised to take great care when declaring quantities to ensure that no duplicated declarations or under-declarations are made. There have been instances of customs agents finding discrepancies that do not exist but are difficult to disprove after the owner has already been fined as a consequence.

The mutual liability insurer American Club says that the latest customs threat in Argentina concerns the misdeclaration of shipboard stores, which can lead to fines. It says that customs authorities are becoming stricter, particularly regarding the declaration of lube oils, bunkers, chemicals, spare parts, grabs and other items in lists of stores carried onboard vessels, especially in ports such as San Nicolas. According to the club’s correspondent, Port of San Nicolas, Argentina Pandi Liquidadores, ships have been required to declare the lube oil in the sump tank of the main engine, despite previous practice to the contrary. It appears that a number of ships have recently been boarded by customs agents asserting that the lube oil in the sump tank has not been declared, meaning a customs infringement. In such cases, customs have insisted that the lube oil in question be discharged within 48 hours and placed in storage for account of the vessel. If discharge is not undertaken, owners may be requested to post a cash guarantee for up to twice its market value. Customs are reported to use a price from $7 to $10 per litre when the real market price is about $1.50 to $2 per litre.

World Bunkering Summer 2014

Global news

Singapore crashes

Three collisions occurred off Singapore, all leading to bunker spills, within a fortnight in late January and early February. On 10 February, the Liberiaflagged 2,900 teu containership Hammonia Thracium and the Panamaflagged 12,124 dwt chemical tanker Zoey collided in the Singapore Strait, off Sebarok Island, resulting in spillage of some 80 tonnes of bunker fuel. On 30 January, the Panama-flagged containership NYK Themis collided with the barge AZ Fuzhou at East Keppel Fairway about 4km south of Marina South. The barge was being towed by the tug AZ Carnation at the time. On 29 January, the Hong Kongflagged chemical tanker Lime Galaxy and the Chinese-flagged containership Feihe collided about 2.7km south of Jurong Island. In all cases, the Maritime and Port Authority of Singapore (MPA) quickly mobilised resources to contain the spills. In a statement, the authority said: “MPA takes a serious view of any

incidents in Singapore waters. Following the recent three collisions resulting in oil spillage, the Maritime and Port Authority of Singapore is conducting investigations to determine the causes of the collisions and whether there were systemic issues that need to be addressed. While awaiting the outcome of these investigations, MPA will implement several measures with immediate effect to minimise future marine incidents.” Chemoil’s volumes down, but gross contribution per metric ton up

Singapore-based, SGX mainboardlisted Chemoil announced a profit after tax of $79.7 million in the fourth quarter of 2013 and $101.9 million for the full year. The major bunker supplier said that gross contribution per metric ton (GCMT), the company’s key margin indicator, was up 10% for the fourth quarter 2013, at $7.0 (2012 – $6.4) and up 22% for the year at $8.2 (2012 – $6.7). Chemoil said in statement: “The

margin improvements offset a 5% fall in annual revenue to $13.0 billion, driven by small reductions in both volume traded (down 0.4 million metric tons) and average sales value per metric ton.” Chemoil’s CEO, Tom Reilly, said, “This year, our profitability was driven by strong fuel operations in North America and by our global biodiesel business. Start-ups such as Chemoil Energy, which sells diesel to the fracking industry in the US, have turned profitable and have begun to contribute to our success. The 22% improvement that we achieved in our GCMT reflects the hard work put in by our traders and senior management’s emphasis on business unit profitability. “Our solid financial performance came despite losses in our marine business in Europe, where we have now restructured. In 2014 we will continue to build on the strong global businesses we have established.”

Bunkering in Sea Of Ohotsk and Bering Sea. Transportation wholesale and retail of oil products in the Russian Far East ports

Morskoy Trust LLC Kamchatskiy region Office 206, 37, Vladivostokskaya str., Petropavlovsk-Kamchatskiy, Kamchatskiy Krai., Russia 683024 Phone/Fax: +7 4152 230763 Phone/Fax: +7 4152 232904 E-mail: tanker-41@mail.ru 32

World Bunkering Summer 2014

Environment

IMO matters IBIAâ&#x20AC;&#x2122;s representative at IMO, John De Rose, reports on developments at the recent meeting of the UN agencyâ&#x20AC;&#x2122;s Marine Environmental Protection Committee

BIA keeps a watching brief on all International Maritime Organization (IMO) issues. There are, however, two committees of particular relevance to the industry; the Maritime Safety Committee (MSC) and the Marine Environmental Protection Committee (MEPC). They cover all matters relating to safety and the environment, as their names imply. Subordinate to these committees are a number of sub-committees. They have been recently reorganised and renamed as follows: PPR (Pollution Prevention and Response), HTW (Human Element, Training and Watchkeeping), and CCC (Carriage of Cargoes and Containers).

World Bunkering Summer 2014

All of these are attended by IBIA and reports are prepared and circulated by the Secretariat. The reports cover all matters of relevance to members, but should there be anything else we should be covering, then please advise us. The recent 66th session of MEPC (MEPC 66) brought up a couple of matters that are currently being addressed by the IBIA working groups and IBIA membership Fuel availability

A study is due to take place before the 0.5% sulphur limit comes into force. After much debate, it was agreed that the study should be brought forward

and not left to the original date of 2016. IBIA is part of the correspondence group, which it has been agreed will be led by the US. The following terms of reference were agreed. 1. Consideration of how to use the supply/demand models identified through previous discussions of the draft methodology, giving consideration to the latest amendments to MARPOL Annex VI, and any new emission control areas (ECAs) that may be proposed or adopted. 2. Consideration of how to track changes in fuel oil demand and supply and what facilities or resources may need to be engaged; means to improve the accuracy of longer-term forecasts should also be considered. 3. Consideration of how to forecast changes to marine fuel oil availability specified in paragraph 1.3 of regulation 14 of MARPOL Annex VI, on both a global level and for the regions defined in the refinery modelling tool, taking into account:a. the addition of new ECAs; b. changes in global fuel oil supply and demand as a result of projected economic activity or other influences;

Environment

c. the impact of the use of alternative fuels, such as LNG and biofuels; and d. the impact of the use of alternative compliance methods (abatement technology). 4. Consideration of an early review of actual and planned refinery supply capabilities, based on publicly available information to provide reliable data for the refinery supply modelling. 5. Consideration of appropriate terms of reference, including time line and pros and cons for early review, required under regulation 14 of MARPOL Annex VI. 6. Consideration of the resources needed to carry out the analysis. 7. Consideration of the implication of competition regulations in place globally related to the exchange of business information and how it can be ensured that such regulations are complied with throughout.

8. Provide a progress report to MEPC 67, with a view to the Committee adopting the terms of reference of the study at MEPC 68 in 2015; Fuel quality

Several papers were presented, including an IBIA paper on the subject of fuel quality. IMO didn’t agree to establish a correspondence group owing to time constraints, and referred the matter to MEPC 67 requesting more detailed information be made available. Following further discussion, the Committee agreed to develop guidance on possible quality control measures prior to fuel oil being delivered to a ship and invited member governments and international organisations to submit concrete proposals to MEPC 67. The report of MEPC includes the following comments. 1. Fuel oil quality is having an impact on the safety of shipping and is an important factor for marine protection, including control of emissions

and energy efficiency. 2. Guidance should be prepared for those responsible for controlling and authorising local fuel oil suppliers. 3. There may be a need to consider a review and amendment of ISO standard 8217:2010 so that it aligns with the fuel oil quality requirements of marine diesel engine manufacturers, eg refinery catalyst fines. 4. There is a need to consider the illegal blending of chemical wastes. 5. The supply and delivery of fuel oil to a ship and the assurance of fuel oil quality were commercial issues, and any dispute between supplier and ship was a contractual matter regulated by domestic legislation. IBIA is currently looking to establish a group to discuss these matters with industry and other interested parties, in order to submit a paper to MEPC 67.

John De Rose has been IBIA’s representative at IMO for five years and is a naval architect. After an initial career with the UK’s Ministry of Defence (Navy), he joined Lloyd's Register as a surveyor for 20 years. In March 2000, he became the Permanent Representative to IMO for the International Association of Classification Societies. He now has a cumulative total of 14 years at IMO.

World Bunkering Summer 2014

Environment Monitoring and cutting CO2 emissions Owners applaud the EU change of heart on monitoring, reporting and verification, while Maersk Line says it has cut its CO2 emissions per container-kilometre by 11% since 2011

he European Community Shipowners’ Associations has applauded a decision by the European Parliament (EP) on a European Commission (EC) proposal for a Monitoring, Reporting and Verification (MRV) Regulation of CO2 emissions from ships. Rejecting calls for a lower gross tonnage threshold, the EP has decided the regulation should apply to vessels of 5,000 gt or above calling at EU ports. Previously, the Environment, Public Health and Food Safety (ENVI) Committee of the EP had endorsed the decision of Greek rapporteur MEP Theodoros Skylakakis to include smaller ships of 400 gt or above, as well as more types of emissions. However, the EP ultimately rejected the extension, thus aligning with the Commission’s proposal of solely monitoring CO2 emissions from ships of 5000 gt or above. “EU shipowners are certainly relieved that the Commission’s proposal was finally preserved by the European Parliament” commented Patrick Verhoeven, ECSA secretary-general. He added: “Not only is this decision sensible, it also allows the two co-legislators to see eye-to-eye on this particular issue, as the Council has indicated its clear preference for the Commission’s initial proposal”. Once the Council adopts its own position on the proposal, negotiations between the Council and the new

World Bunkering Summer 2014

Parliament can begin, most probably in autumn 2014. ECSA notes that this will “buy the International Maritime Organization (IMO) some time to further develop a global data collection system for fuel consumption on ships”. ECSA adds that the EP’s vote also eases the way towards a global solution on CO2 emissions from shipping. Meanwhile, container shipping giant Maersk Line says it has reduced its CO2 emissions by more than 25% per container-kilometre since 2007. Early in 2012, Maersk Line launched a strategy to bring the company back to profitability after a financially weak start to the year. A key part of this was a drive to improve energy efficiency to reduce bunker costs. As a result, Maersk Line has reduced its CO2 emissions per container-kilometre by 11% compared with 2011. This is also reflected in the company’s absolute CO2 emissions, which have decreased by 7% since 2011. A Maersk Line statement says: “This was our target for 2020, so we accomplished this eight years early.” Slow steaming has helped, says Maersk: “On average, it has reduced the speed of our vessels by two knots over the course of the year. Additionally, we have worked to improve the CO2 performance of vessels we charter, especially by improving transparency on performance and sharing best practice.” Looking ahead, the company says: “Technical upgrades on our vessels

(including the ones we charter) and the delivery of more efficient vessels, such as the Triple-E ships, will lead to further reductions in CO2 emissions. We are now aiming to reduce our CO2 emissions by 40% per container-kilometre by 2020, using 2007 as a baseline. Some of this will be achieved through planned changes. However, the remainder will require us to find new, innovative solutions.” On sulphur emissions (SOx), Maersk says these decreased in both per unit and absolute terms, primarily owing to improved energy efficiency. It says: “An Emission Control Area (ECA) off the coast of North America, which entered into force in August 2012, has also led to a local reduction in SOx emissions.” Maersk Line adds: “An initial step towards a new standard for calculating SOx was agreed by the Clean Cargo Working Group in 2012. This will enable us to provide transparency to our SOx emissions per container-kilometre for all the major global shipping trade lanes. This will allow customers to factor in SOx emissions when choosing between container shipping companies.” The company notes that almost half of its fuel consumption comes from vessels chartered from third parties. It says: “By the end of 2012, Maersk Line’s ship performance system was installed on some 90% of the chartered fleet [and] saved around 142,000 tonnes of fuel and 442,000 tonnes of CO2 in 2012.”

Interview

Focusing on quality Jens Maul Jørgensen, director responsible for bunkers at major German dry bulker owner and operator Oldendorff Carriers, is the new IBIA chair. For his work, he spends much of his life travelling, but World Bunkering’s editor, David Hughes, caught up with him recently

David Hughes: Congratulations on becoming chair. You have been vicechair for a year, understudying, as it were, Simon Neo. What have you learnt during the past year and how do you see the role of chair? Jens Maul Jørgensen: Thank you. The time has seemed to have flown past, but that is perhaps a good sign – of a busy period for IBIA. As vice-chair over the past year I had the easier job, while Simon had to deal with our restructuring and recruiting the new staff. He has had a challenging year. Now I’m just taking over after the foundations have been laid. So I must thank Simon and also the rest of the IBIA team. My official start as chairman was 1 April 2014 – but I must say that my speech at the ‘best ever’ IBIA Annual Dinner on Monday 18 February kickstarted my role. The vice-chair gets the opportunity at the dinner to introduce a topical issue, and I did just that. DH: What are your main goals as chair. Are there particular issues you wish to address? I know quality is something you are especially passionate about. JMJ: There is no doubt that my biggest concern within the bunker industry is the low perception of quality and the need to supply fuel

of the correct quality. Nobody can run away from the data that has been made available. I mention this as one testing company reports that almost a quarter of tested samples have been found to be off-specification for at least one parameter. That is a large percentage. If other testing companies have comparable statistics then that indicates that something is not entirely right. I know that some suppliers feel that I’m after them, but what I said and continue to say is that we are all involved in this issue There are always weak links in a chain. Sometimes ships’ crew take incorrect samples as, occasionally, do surveyors. Suppliers blend to the limit or even above the limit so they can hide them under the 95% confidence level. And there are problems in the quality chain. Yes, it is also true that off-specs can be marginal and that the vessel can treat the fuel so that it can burn the majority of the fuel that tested off-spec on a particular parameter. But there are also occasions when the fuel is off-spec because of sediment. That causes real problems. So I hope that owners and suppliers will take this matter seriously and start to concentrate on quality. I am also very concerned about standards. Why will suppliers not work to ISO-2010/2012? Why are some owners

still asking for 2005 specs for the vessel? We are talking about just a few dollars. I won’t comment on those owners who feel they need the couple of dollars they can save by continuing with 2005 specs. Nor will I comment on those suppliers who are blending the product from 2010 down to 2005 specs. There are a lot of questions about this issue. And there also a lot of excuses. I just hope that the industry soon gets to understand the realities of the quality issue. Then we will see more working 2010/2012 specs because that will definitely reduce the number of off-spec reports and also lead to fewer claims. Coming from the shipowners side, I feel that we owners/operators have been unfairly treated by the International Maritime Organization (IMO). I recognise that IMO wants to improve the environment – but that is true for everybody. We all want to do something for the environment. I think I can speak for everybody when I say that we would like to “hand over” a clean, rather than destroyed, planet to our children and grandchildren. But also we need to apply the process in a fair and equitable manner. Regulations concerning quality should apply throughout the fuel supply chain rather than focus on the end-user, the shipowner. Let’s have one quality standard that applies to shipowners, suppliers and throughout the marine fuel supply chain. That happens effectively on land, so why not at sea?

World Bunkering Summer 2014

Interview

There are issues throughout the chain. We have owners who don’t follow their own P&I club recommendations on quality. Good quality is out there. We just need suppliers who do supply good quality to step up and let the market know. So, to repeat, my main goals as the chairman for IBIA will not be a surprise: resolving the quality issue and increasing transparency throughout the industry. Another recent development has been the announcement by the Maritime and Port Authority (MPA) of Singapore that it will making the use of mass flow meters mandatory. I think that is a fantastic move for a government or port authority. This shows that it is possible to regulate the bunker industry. I have deep respect for the MPA and this decision it has made. I am now pretty sure that more and more suppliers worldwide will move in the same direction. DH: This year’s IBIA conference is on your home ground, in Hamburg. Do you see it as an opportunity for IBIA to engage more closely with the German shipowning community? Are they generally aware of IBIA and do they see it as an organisation comprising both suppliers and operators? More generally, how do you see the prospects for expanding IBIA? JMJ: I am sure that our upcoming convention in Hamburg in November will be just as successful as the outstanding IBIA annual dinner last February. Already there is considerable industry interest in the convention, and that bodes well. I’m proud that it will be in Hamburg this year and, with the support of The German Ship-owners Association (GSA), I am confident that it will be sold out soon. This co-operation with GSA is a good example of the way we want IBIA to work with other associations. More such arrangements will follow. IBIA is for everybody. We now have working groups that take care of the different challenges facing the bunker industry going forward. These include LNG, fuel availability, training issues and conventions and seminars.

World Bunkering Summer 2014

ens Maul Jørgensen will soon celebrate 24 years working in the shipping industry. He started back in August 1990 as a trainee with the shipbroker company Fisker & Bom. In 1992, he joined Avedøre Shipping A/S, Copenhagen, where he worked in agency, chartering and operations. In 1996, he joined the broker and trading company MARAG A/S, Copenhagen, within the OWB group. Then, in 2003, he “moved to the other side of the desk” and became the bunker manager, responsible for the bunker and risk management activities of the entire Armada Group in Switzerland. After “four fantastic years”, Jørgensen took on a new challenge in 2007 and joined the German dry bulk owner and operator Oldendorff Carriers GmbH & Co KG as director for the bunker department, including risk management activities. Today, Jørgensen leads a team of six purchasers and administrators and also 14 inspectors worldwide and oversees the bunker of a fleet of about 550 vessels. In addition, he is an acknowledged speaker and has delivered speeches at all four Singapore International Bunkering Conferences held since 2006. During his long career, Jørgensen has attended sea law courses and several management courses in Denmark and Germany. He became an IBIA board member in 2010. He is married with two children.

Fuel management

Fuel density and how it affects costs Barry Newton of the Geos Group explains why it is important to understand that the density of marine gas oil varies, and why quotes should always be compared on the basis of cost per metric tonne

magine you have asked two suppliers to quote for 20,000 litres of marine gas oil, for a vessel due in port in a few days’ time. Both suppliers may be working on the same price per metric tonne (MT), but their prices per litre are dramatically different. How can this be and what does it mean? The difference may simply be down to density – defined as the mass or weight of a liquid divided by its volume. You would need 16.80 MT of fuel with a density of 840kg/m3 (at a standard temperature of 15°C) to achieve a volume of 20,000 litres; but 20,000 litres of fuel with a higher density of 870kg/m3 at standard temperature would weigh 17.40 MT. This means that the overall cost for 20,000 litres of fuel with a higher density is greater when priced at the same level per MT. Fuel with a low density generates less energy and burns more quickly than the same volume of fuel with a high density, and therefore the vessel’s fuel consumption in volume terms will be higher overall. The important thing is that buyers need to understand how to convert from one unit of measurement to another, and adjust for density, when comparing like-for-like quotes. The density of gas oil (at 15°C) is generally within the range of 820-890kg/ m3 – and most commonly for marine gas oil is between 850-870kg/m3. 10ppm red diesel (inland gas oil) is less dense, within

the range of 820-840kg/m3, and DMA gas oil can go up to 890kg/m3. Fuel has many different properties that combine to make it a certain quality, most of which remain constant as the fuel is transported along the supply chain from refinery to storage to vessel. Density, however, is one property that changes as the environment changes – the level decreases with an increase in temperature. So, if the temperature goes up between purchase and delivery, the volume of your fuel increases but its weight stays the same so the density goes down. If the temperature goes down, the volume decreases but the weight stays the same so the density goes up. As the density of marine gas oil is so significant, always ensure you have this information available when comparing competitive quotes. All quotes should be compared on a cost per MT basis, regardless of whether the quantity required is in litres or MT. This ensures that the density and energy of the gas oils being compared is factored into the price, and gives an accurate and like-forlike comparison. The Geos Group provides a free downloadable fuel conversion table to help you convert from one unit of measurement to another – including metric tonnes, cubic metres and litres – with an option to adjust for density. Go to www.geosgroup.com/news/article/ download-free-fuel-conversion-table.

Challenges of tightening regulation

For shipowners and operators, maintaining fuel quality at a time of tightening regulation requires a clear understanding of the challenges, says Bernd Hans Bauer, business director, marine chemicals, at Wilhelmsen Ships Service. It is an inescapable fact that the quality of marine fuel used across the world’s shipping fleet has been deteriorating over many years. This has largely come about as a result of changes to the refining process, which have had a serious effect on fuel quality and consistency. At the same time, environmental legislation designed to reduce sulphur emissions is presenting technical challenges to bunker suppliers and owners, since both low-sulphur residual fuels and ultra-low-sulphur distillates can exhibit specific problems that can potentially cause problems in operation. Taken together, these changes will have a profound impact over the next 10 to 15 years as refinery output shifts towards new fuels and the next wave of pollution regulations begins to bite. Across the maritime industry, the pressure to increase efficiency, reduce operating costs and limit environmental impact is bringing vessel speeds down. It is now widely understood that slow steaming can reduce the amount of fuel consumed during a voyage and at the same time reduce carbon emis-

World Bunkering Summer 2014

These issues will continue to apply on a global basis, even after the global sulphur limit drops to 0.5% in either 2020 or 2025. However, inside emission control areas (ECAs), where the sulphur content of the fuel used can be no more than 0.1% after 1 January 2015, a more radical change will take place. Owners face the choice of complying with the ECA rules through the use of distillate fuels or alternative abatement methods such as sulphur scrubbers. Quality problems when using distillate fuels are fundamentally different from those of residual fuels and focus on lubricity, storage stability and microbial contamination. Lubricity problems are most likely to happen in fuels with a sulphur content lower than 0.1%. Understanding marine fuels at a time when their regulation and performance are subject to so much change is an additional challenge to shipowners already facing higher costs and pressure to slow steam in order to maximise earnings. It is equally critical to understand that many of the problems encountered onboard ship are not related to operation of

Imtech’s new product

Imtech Marine was asked to supply a hybrid propulsion system to the first-ever diesel electric hybrid seagoing ferries for the Scottish state-owned ferry operator, Caledonian Maritime Assets Ltd (CMAL) in 2011, and at that time fuel savings of around 20% were expected. Following extensive trials, Imtech Marine has announced that the actual fuel savings with the innovative hybrid system – consisting of diesel electric in combination with battery technology – were up to 38%. CMAL operates 30 ferries from the west coast of Scotland to 18 islands. Imtech Marine has now provided two CMAL ferries with the hybrid system. Jim Anderson of CMAL says: “In our initial estimates we had planned to save at least 20% on fuel. When we received the reports that the actual fuel savings were almost twice that number we were pleasantly surprised. With this achievement, the CO2 emissions have been effectively reduced so we also made a major step towards the reduction of the carbon footprint.” Imtech Marine carried out two weeks of optimising trials on the HALLAIG, which operates between the Isle of Skye and Raasay, an island inhabited by around 150 people. It was hoped that the tests could prove the value of hybrid technology and provide the foundation for future developments.

World Bunkering Summer 2014

the engines, but to the fuels used. This clearly underlines the need for fuel treatment to be integrated into the vessel’s maintenance schedules. Building on 30 years’ experience of delivering fuel treatments to the maritime industry, Wilhelmsen Ships Service’s Unitor FuelPower range applies the most advanced technologies to make certain today’s fuels can be used with confidence, regardless of fuel stability or slow steaming. The range for use with residual fuels includes FuelPower Demulsifier, an updated demulsifier designed to cope with high water levels in oil emulsions; FuelPower Conditioner, a new treatment for unstable and incompatible fuels, which improves fuel reliability; and FuelPower SlowSteam, a low-dosage combustion enhancer and stabiliser. To help manage the unique challenges of distillates effectively, Wilhelmsen Ships Service has developed a new product range, Unitor DieselPower, specifically for this fuel type. A series of advanced formulations helps to keep fuels bright, stable and trouble-free, with fewer problems resulting in lower costs in operation.

Fuel management

sions significantly. A speed reduction of 20% can lead to more than 30% cost saving on the fuel used and bring a similar reduction in the amount of CO2 emitted. Yet against these positives, the primary disadvantage associated with slow steaming is that ships’ engines were not necessarily designed to operate under these conditions for long periods. The result can be poor combustion in the engine at low loads, which can reduce efficiency through a build-up of soot deposits in the engine and exhaust gas economiser. Such problems are exacerbated by the overall decline in fuel quality. When shipping companies buy residual bunker fuel, the product they receive is generally a blend of residual fuels and various cutter stocks. The suppliers must meet the owner’s specification and ISO standards for bunker fuel, and as long as the product meets the agreed specifications, their contractual obligation has been met. These specifications, however, are not a good guide to the real quality of the fuel when presented to the engine or boiler for combustion.

Alexander Breijs, an energy systems consultant at Imtech Marine, was one of those on board carrying out the tests. He comments: “On closer examination of these fuel savings, some 28% came from shore charging the batteries overnight, making the system more efficient, and the remaining 10% is the result of the fact that Imtech Marine is using the battery energy in a ‘smart’ way via our new Energy Management System (EMS).” Eventually, the batteries will be charged using the island’s own wind energy, making the system even more environmentally friendly.

Scrubbers

Scrubbing up Despite a slow start, abatement technology is now being taken up by increasing numbers of owners

s shipping lines gear themselves up for the new low sulphur requirements in emission control areas (ECAs), there are signs of a growing interest in the use of scrubbing (or emission abatement) technology to solve the emissions problem. Installing such systems on ships will not come cheap, and there have been suggestions that the costs of low-sulphur fuel coupled with the low-sulphur requirements in ECAs may make the cost of shipping goods in containers substantially more expensive on certain routes. Although there is significant interest in the use of LNG as fuel, at present either scrubbers or using lowsulphur marine diesel represent the most likely options to meet the new requirements. Opinions vary about the impact that the abatement technology will have in the short term and Søren Christian Meyer, OW Bunker vice-president, was quoted as saying that changes to sulphur limits in ECAs next year would not be likely to result in shortages of low-sulphur fuel to meet the deadline. He told the International Bunker Conference in Copenhagen recently that an OW Bunker survey of its customers suggested there was little concern over the 2015 0.1% sulphur cap. He was also reported as saying that abatement technology would have

limited impact in the next few years, and that marine gas oil (MGO) would be the preferred option. Robin Meech, managing director of Marine and Energy Consulting, told the same conference that, for ships under 15 years old, scrubbing systems were the cheapest method of compliance with the new rules. A recent Lloyd’s List sulphur survey found that although 48% of the respondents said the only choice will be to use distillate fuels, 17% saw scrubbers as the answer. Of those that believed they would turn to scrubbers, most envisaged a payback period on their costs of between two and five years. A number of companies have announced recently that they are installing scrubber systems on their ships, in particular passenger ship operators. Norwegian Cruise Line said the line will make a significant investment in the installation of 28 scrubbers on six ships in the line’s fleet. The company has contracted with Green Tech Marine for the outfitting of the scrubbers on Norwegian Breakaway, Norwegian Dawn, Norwegian Jewel, Norwegian Gem, Norwegian Pearl and Norwegian Sun. The scrubbers will be installed starting this spring and installation will continue until the end of 2016. Green Tech Marine also supplied the scrubbers on the line’s Hawaii-based Pride of America

last year and will deliver 10 scrubbers to the company’s two newbuilds, Norwegian Escape and Norwegian Bliss, being built at Meyer Werft in Germany. “We remain committed to environmental protection at Norwegian Cruise Line,” said Kevin Sheehan, Norwegian Cruise Line’s chief executive officer (CEO). “Therefore, it is important for us to invest in new technologies, such as Green Tech’s innovative scrubber systems, in order to reduce fuel emissions, overall energy consumption and the company’s environmental footprint.” “We are very pleased to have Norwegian Cruise Line as a returning customer,” says Green Tech CEO Peter Strandberg. “The decision to install scrubber systems on six additional ships demonstrates Norwegian Cruise Line’s commitment to environmental regulations and reaffirms that Green Tech Marine’s scrubbers have taken a strong position in the exhaust gas cleaning market.” Wärtsilä has received a number of new orders for its exhaust gas cleaning systems. In March 2014, Solvang of Norway confirmed the option for Wärtsilä Open Loop Scrubber Systems to be installed aboard another of its large gas carrier (LGC) vessels. This follows the order that the company placed in late December 2013 for two such vessels. The company has already taken delivery of Wärtsilä Open

World Bunkering Summer 2014

of Wärtsilä Exhaust Gas Cleaning Systems to the Tarago. The success of that project has been cited as an important factor in the decision to fit the Wärtsilä systems to these new vessels. A third-party measurement and verification programme, partly funded by the Research Council of Norway, will be carried out during the next two and a half years. This is expected to further endorse the viability of exhaust gas cleaning as an efficient and cost effective means of achieving Emission Control Area compliance. The Dorian LPG order consists of a 15mw exhaust gas cleaning unit for the main engine and a 4mw exhaust gas cleaning unit for the auxiliary engines. They will be delivered as an open-loop system, but will be ready prepared for retrofitting to hybrid performance if required at a later date. As of March 2014, Wärtsilä has 45 vessels contracted for a total of 94 exhaust gas cleaning systems for both new building and retrofit projects. Danish ferry operator DFDS has also been investing in scrubbing technology and announced a repeat order with Alfa Laval for the company’s PureSOx gas cleaning system last year. “With our investments in exhaust gas cleaning systems, DFDS is among the companies leading the way to compliance with the sulphur emissions regulations that will take effect in 2015,” commented DFDS vice-president and head of technical organisation Kasper Moos at the time. “We believe hybrid exhaust gas cleaning systems are among the most efficient alternatives to using expensive lowsulphur fuel oil. Based on our previous experience, PureSOx has proven to be a reliable and efficient retrofit solution. We have been very pleased with the cooperation with Alfa Laval.” Carnival has committed over $180 million for exhaust gas cleaning technology on 32 ships. These include vessels from Carnival Cruise Lines, Holland America Line, Princess Cruises and Cunard, which sail regularly within the North American ECA. “This is a significant accomplishment as well as an important milestone for our company,” said Carnival Corporation and plc CEO Arnold Donald. “Working together with the United States Environmental Protection Agency, the

US Coast Guard and Transport Canada, we have developed a breakthrough solution for cleaner air that will set a new course in environmental protection for years to come.” Carnival has been a partner in the development of this technology and will take the lead in further refining both design and installation aspects on ships with a variety of engine configurations between now and mid-2016. EnSolve Biosystems, meanwhile, has announced the launch of a product called EnScrub, which treats particulates and petroleum hydrocarbons from the effluent of shipboard SOx scrubber systems. The technology, partially funded by a Phase II National Science Foundation grant, combines biological and physical processes to remove and destroy petroleum hydrocarbons from the aqueous effluent of SOx scrubbers. “Whereas SOx scrubber systems focus on the removal of sulphur oxides from engine emissions, harmful particulates and petroleum hydrocarbons end up in the aqueous effluent of these scrubber systems,” explained Jason Caplan, president of EnSolve. “If this petroleumtainted effluent is sent overboard, it can present an environmental and regulatory problem for the shipowner. The EnScrub system addresses these contaminants, thereby reducing or eliminating the regulatory risk of discharging untreated SOx scrubber water overboard.” In late 2012, EnSolve conducted efficacy testing of a prototype EnScrub System on effluent obtained from a SOx scrubber system at the Port of Long Beach, California. The analytical results indicated that the EnScrub system was successful in reducing more than 99% of the petroleum hydrocarbons from the SOx scrubber water effluent. Subsequent testing in 2013 confirmed the results of the 2012 Port of Long Beach field trial. “It’s important to note,” Caplan added, “that the EnScrub product is a complementary, not competitive technology for SOx scrubber systems. Our goal is to provide this add-on technology to SOx scrubber systems to help keep both the scrubber manufacturers and shipowners in compliance with domestic and international clean water regulations.” EnScrub models are available for closed-loop, open-loop or hybrid applications.

Scrubbers

Loop Scrubber Systems that have been installed aboard the very large gas carrier (VLGC) vessels, the Clipper Quito and Clipper Posh. Hyundai Heavy Industries (HHI) shipyard in South Korea is delivering all the new Solvang vessels. In addition to these newbuild projects, Wärtsilä has also in March signed a contract with Solvang to retrofit its Open Loop Scrubber System onboard the LPG tanker Clipper Harald. This installation is scheduled to be delivered in summer 2014. This now brings the total number of Solvang vessels to order Wärtsilä scrubber systems to six. Wärtsilä will also supply its Hybrid Scrubber Systems for four new postpanamax car carriers currently being built for Wilhelmsen Lines Shipowning Malta (WLSM), a subsidiary of Oslobased Wilh. Wilhelmsen. The contracts were signed in the third quarter of 2013 and in the first quarter of 2014. These vessels will be delivered from the Hyundai Samho Heavy Industries (HSHI) yard in South Korea. HSHI is a subsidiary of HHI. Two further Wärtsilä Open Loop Scrubber Systems are to be delivered aboard a new VLGC being built at the HHI yard for Dorian LPG Ltd of Greece. This contract was also signed in the third quarter of 2013. “The acceptance of exhaust gas cleaning systems as a means of achieving compliance with environmental regulations is rapidly increasing. Wärtsilä is not only the leading supplier of such equipment, but is also able to provide all the technical and installation support needed. The co-operation between our companies is first class, and because of this we can provide the service that the industry demands,” says Jae-Su Kim, technical manager of the initial design department within the shipbuilding division of HHI. The Wärtsilä systems already delivered to two Solvang vessels involved two scrubber systems; one for the main engine and one integrated exhaust gas cleaning unit for the three auxiliary engines. It was the world’s first vessel of this kind, with exhaust gas cleaning systems installed for all engines onboard. This latest order from Wilh. Wilhelmsen follows a similar contract in 2012, which involved the retrofitting

A story of success This year the AMK Group of Companies celebrates its 10th anniversary. General director Alexandr Koltunov speaks about the past, the present and the future of the company

ranshipment terminals, bunker business players, ship agencies – these all carry on their day-to-day business unnoticed by most people in Murmansk. However, everyone is keen to know more about the region and town, with all its strengths and prospects. The subject of this article is oil, not petrodollars and the turnover of the oil majors involved in this business, but the economic and strategic attractiveness and importance of Murmansk. As any other company that does not have to keep a high profile but just gets on with its job and reach its targets, AMK Group of Companies (AMK GC) is not looking for universal recognition, does not depend on public opinion and does not rely publicity. AMK GC, being a strategic partner of many well-known oil companies, acts in a defined segment of the market with a clear understanding of the tasks that it needs to carry out. AMK Group of Companies was established on 25 May 2004 in the Kola Peninsula. The scope of the company’s activity is continually growing. The main principle of the AMG GC management is to “never stand still, but always search for new directions of growth, find them and move on”. The main activity of the company is trade and transportation of oil products including: • Diesel • All types of petrol • Residual fuel oil M-100 • Residual fuel oil IFO-380 • Residual fuel oil IFO-180 • Residual fuel oil IFO-30 AMK GC consists of several companies involved in different spheres of activity: bunkering, fuel transportation by road, collection and disposal of bilge water and oil refuse, and scientific research projects. All these companies are equipped with industrial facilities for transshipment operations and safe inshore mooring for the vessels queuing for transshipment. One of the main types of activity is bunkering of foreign and Russian vessels in the port of Murmansk and other ports within the Murmansk region. AMK’s fleet comprises five tankers: Lahta, Sever, Sosnovets, Don and Polartank – all capable of transportation of all types of oil products or bilge water up to 300 tonnes, carrying up to 3,300 tonnes of heavy oil products and diesel. The tankers are capable of operating up to 20 miles offshore and can sail to foreign ports. All the vessels are run by highly qualified personnel with at least five years’ experience of work on this class of ships. From time to time, our vessels get involved in rescue operations that involve specialist operating procedures. AMK Group of Companies has contractual agreements with several oil depots, including First Murmansk Oil Terminal, Murmansk Sea Fishing Port, Kommandit Service and others. The oil products are supplied in railway tanks from these terminals and stored in tank farms in compliance with the Russian ‘Gost’ standard. The oil products are then delivered to the depots by road or by tankers in Kola Bay.

AMK general director Alexandr Koltunov

World Bunkering Summer 2014

AMK GC’s road transport fleet consists of eight specialised vehicles, four petrol tankers (with capacities ranging from 8m3 to 23m3) and fuel oil carriers (with capacities from 15m3 to 23m3), capable of transporting diesel and all types of residual oil required in Murmansk, the Murmansk region and the Republic of Karelia. The company has its own repair and engineering facilities at Murmansk Sea Fishing Port, capable of servicing and repair of the company’s vehicles. All the drivers are licensed to work with hazardous shipments. In 2011, AMK GC acquired three vessels – Angrapa, Mirgorod and Ostrov Anzer – and began carrying out scientific research operations in the Barents Sea. This fleet is now involved in all-year-round monitoring of the area’s environment to evaluate the current state of ecosystem and analyse natural processes and trends in order to predict possible changes. In 2013, another vessel, the Andromeda, was added to the scientific research fleet. In 2012, AMK GC launched a new project – Kola Bay Roads Transhipment Complex-2 (RTC-2) in the Mishukovo region to provide ship-to-ship oil transfers. This practice is widely used around the world because of its efficiency and environmental safety, large cargo-handling capacity, ease of use and low cost. The complex is working all year round, 24 hours a day. In 2012, the company, in collaboration with local authorities, worked out a ‘Plan for prevention and liquidation of emergency oil spills’, aimed at ensuring safe conditions of work at the complex as well as preventing and minimising oil spills. The complex itself is a multi-spot roads anchorage on mooring buoys. It consists of six ground gears, each of which has a mooring buoy, a mooring bridle and an integral anchor, which, in turn, consists of separate concrete anchors, set up as a wave train. The company has a pre-project plan to upgrade RTC to include berthing for storage tankers of up to 210,000 dwt, which will allow the transhipment of 12 million tonnes of oil a year. The new complex is attracting attention from other major shipping players in the region. Sovkomflot and Murmansk Shipping Company will be involved in the further development of RTC-2. This comes as no surprise as the complex not only boosts the region’s economical potential but also opens the region up to more business, as well local and international projects. Last year turned out to be an eventful one for AMK GC. The company acquired the Murmansk Development Engineering Plant in order to strengthen its technical infrastructure. Now the plant’s facilities will be used to the full for various purposes as well as being used as a repair shop for the company’s fleet. One of the key areas of the company’s business is implementation of its social policy. AMK Group of Companies provides strong support to the local community and organisations. It provides financial help to various local sports organisations and clubs as well as to charities and churches. After 10 years of hard work within the Russian oil products market, we successfully branched out into the international bunkering market. And four years ago we joined the International Bunker Industry Association (IBIA), based in London. So what is AMK’s formula for success? It is the quality products we supply, along with their compliance to all national and international standards. It is also the corporate stability and professionalism of our company. We strive to always be environmentally and socially aware. We provide quality services and we care about our clients and our business partners. Today we can confidently state that AMK Group of Companies has won respect and a solid business reputation among participants in the oil products market. ⏏

World Bunkering Summer 2014

The location of RTC-2 provides the following: Safe anchorage for the storage tanker in extreme weather conditions. Safe mooring, departure and anchorage for sea-going tankers by the storage tanker in all weather conditions, allowing oil transhipment operations. Sufficient distance from populated localities in compliance with the requirements of sanitary protection zones. Sufficiently remote from navigable channels and other coastal and offshore port anchorages, avoiding the disruption of local shipping operations.

AMK Group of Companies

AMK Group of Companies 86 Podgornaya Street, Murmansk, Russia 183038 Tel/Fax: +7 (0) 8152 287828 Tel/Fax: +7 (0) 8152 287337 Tel/Fax: +7 (0) 8152 286028 E-mail: amkoil@mail.ru E-mail: amk_gk@mail.ru

Oil majors

Adjusting to global changes Quality issues, the development of LNG and structural changes in the global oil market are all affecting the majors

uality, sustainability and value for money are just three issues that are being given priority by oil majors as they seek to develop the new generation of eco-friendly products. ExxonMobil Marine Fuels & Lubricants has released a series of ‘top tips’ to help vessel owners and operators achieve the best value when purchasing marine fuel. These considerations are particularly important given that marine fuel typically accounts for the majority of the total operating cost. The oil major is advising marine operators to consider the following five key fuel quality factors.

Water content – the ISO8217:2012 permitted water content compliance level is 0.5%, while ExxonMobil’s marine fuel has an average of only 0.12%. If marine fuel is supplied at the 0.5% compliance level, this could potentially cost $6,000 per purchase for a 2000mt stem, and the water should be removed prior to burning. Water removed from marine fuel prior to use may then add a further disposal cost of up to $3,000. Additional maintenance costs may also be incurred to remove resulting sludge from the purification systems.

Metal content – aluminium and silicon in marine fuels, known as catalytic fines, have the potential to cause significant engine damage. This could lead to substantial repair costs and potential vessel delays. ISO8217:2012 and ISO8217:2005 allow for levels of catalytic fines up to 60mg/ kg and 80mg/kg respectively. Major engine builders typically recommend the level of catalytic fines should be less than 15mg/kg at the engine inlet. ExxonMobil says that its marine fuels normally have significantly lower levels of catalytic fines, with an average of 10mg/kg. It adds that these low levels help to limit catalytic fine removal efforts, reduce abrasive wear on critical engine components and potentially avoid the cost of additional maintenance and possible breakdowns. Marine fuel stability – to help meet the lower sulphur levels specified in changing marine industry regulations, there may be a tendency to blend marine fuel from a variety of sources, which may cause the resultant blend to become incompatible. Unstable fuels have the potential to cause sludge or heavy deposits to build up, which may prove costly to resolve and may impede vessel performance. ExxonMobil stresses the advantage it has in this respect as a oil major. It

points out that its marine fuels arrive from an integrated supply chain and are tested to strict standards before they leave the refinery or terminal, with systematic quality control throughout the supply chain. Calculated Carbon Aromaticity Index (CCAI) level – the CCAI level is the indicator of marine fuel combustion quality and it is important that this is neither too high nor too low. Poor-quality marine fuel with an inappropriate CCAI level, caused by incompatible blend components, could cause poor combustion and has the potential to affect vessel performance. ISO8217:2012 states a maximum CCAI limit of 870 for most common residual marine fuel grades. ExxonMobil says that its marine fuels sit within the working parameters of major engine manufacturers, helping to protect against poor performance. Laboratory analysis – lastly, ExxonMobil recommends that it is best practice to send fuel samples to an approved laboratory for analysis. This allows operators to understand the quality of the marine fuel received and how to manage the marine fuel system on board their vessels.

World Bunkering Summer 2014

BP looks set to enter a new phase in its operations in the US after a difficult period following the Deepwater Horizon disaster of April 2010. The US Environmental Protection Agency (EPA) and BP have reached an agreement resolving all suspension and debarment actions against BP that barred the company from doing business with the federal government following the company’s guilty plea following the disaster. The administrative agreement will be in place for five years. “This is a fair agreement that requires BP to improve its practices in order to meet the terms we’ve outlined together,” said Craig Hooks, assistant administrator for EPA’s Office of Administration and Resources Management. “Many months of discussions and assessments have led up to this point, and I’m confident we’ve secured strong provisions to protect the integrity of federal procurement programmes,” he said. Under the agreement, BP is required to retain an independent auditor, approved by EPA, who will conduct an annual review and report on BP’s compliance with the agreement. There are also specific provisions addressing ethics compliance, corporate governance and process safety. The agreement additionally grants EPA the authority to take appropriate corrective action in the event that the agreement is breached. In developing the agreement, EPA coordinated with the Department of the Interior, the Defense Logistics Agency and the US Coast Guard. Since November 2012, EPA has suspended 25 BP entities and disqualified BP Exploration and Production, Inc from performing federal contract work at its corporate facility in Houston, Texas, stemming from its criminal conviction in the US government’s Deepwater Horizon case. Suspensions are issued where there is an immediate need to protect the public interest, supported by adequate evidence. The suspension did not affect existing agreements BP had with the government. BP has a large bunker supply network on the US East and Gulf coasts and also offshore in the Gulf of Mexico.

World Bunkering Summer 2014

BP halts refining at Australia’s Bulwer Island

BP has announced that it intends to halt refining operations at its 102,000 barrels per day Bulwer Island refinery in Brisbane, Queensland, by mid-2015. Andy Holmes, president of BP Australasia, said that the growth of very large refineries in the Asia-Pacific region was driving structural change within the fuels supply chain in Australia and putting huge commercial pressure on smaller scale plants. “It is against this background that we have concluded that the best option for strengthening BP’s long-term supply position in the east coast retail and commercial fuels markets is to purchase product from other refineries. And while more of our transport fuel demand will be met by imports in future, ample supplies are available to maintain Australia’s energy security.” Holmes continued: “While this decision will significantly improve our competitive position, it will result in job losses and I would like to acknowledge the enormous commitment and contribution made over many years by our staff at Bulwer Island. We will be doing everything we can to support them through this transition.” To ensure no disruption to customers, alternative supply arrangements have been made and this includes imports of Jet fuel and a long-term agreement with Caltex for the provision of motor spirit and diesel from the nearby Lytton refinery. It is expected that it will take some 12 months to implement the changes required to maintain supply and safely shut down the process units. Once processing has been halted, the import jetty, aviation fuel tanks and associated pipelines will remain operational, while other storage tanks and pipelines will be placed on a care and maintenance basis pending a decision on whether to convert the site to a multi-product import terminal. The processing units will be isolated and made safe while plans for their eventual removal and any environmental remediation are developed. Tim Wall, managing director of Bulwer Island refinery, said: “This is a sad day for all of us at Bulwer and I know that these changes will be difficult for our employees.” The Bulwer Island refinery was built on reclaimed land by Amoco between 1964 and 1965 and was bought by BP in 1984. Over the years, it has been subject to a number of modifications and improvements and in 2000 was significantly upgraded to produce low-sulphur fuels.”

Oil majors

BP agreement

BP halts refining at Bulwer Island

Oil majors 46

Sustainable Shell

Shell has issued its latest sustainability report for 2013 and says it is working to reduce the environmental impact of its operations while meeting the growing energy demand worldwide. “The potential environmental impact of our activities – and how local communities are affected – is carefully considered both before projects start and during ongoing operations. We focus on key areas, including consuming less fresh water, conserving biodiversity, using less energy, minimising waste, preventing spills and leaks, flaring less gas produced with oil, and managing greenhouse gas emissions,” the report said. “Carbon dioxide emissions are managed with the use of energyefficiency technologies and processes, and by reducing flaring in our operations. We are also working to manage CO2 emissions by advancing carbon capture and storage (CCS) technologies. For example, we are implementing the Quest CCS facility in Canada to reduce CO2 emissions from our oil sands operations,” the report says. Liquefied natural gas (LNG) is emerging as a cleaner fuel for road transport and ships and Shell is developing an LNG for the shipping business. In 2012, it bought Gasnor, a Norwegian firm that supplies LNG as a fuel to shipping companies and industrial customers. In 2013, Shell started chartering the Greenstream, the world’s first 100% LNG-powered barge, to carry goods along Europe’s River Rhine. It carries diesel, heating oil and unleaded petrol to customers in the Netherlands, Belgium, Germany and Switzerland. The Greenstream produces fewer emissions and makes less noise than conventional vessels – an important factor when travelling through populated areas. A second LNG barge, the Greenrhine, was chartered in the Netherlands in late 2013. Shell is also developing a facility to produce, liquefy, store and transport LNG at sea. Floating LNG (FLNG) offers access to offshore gas fields that would otherwise be too costly or difficult to develop, the report says. FLNG eliminates the need for pipelines, onshore plants and infrastructure.

Shell has chartered the LNG -fuelled barge Greenstream as part of a concerted move into LNG fuelling

“Our first project, Prelude FLNG, is currently under construction in South Korea. It will be used to develop the remote Prelude gas field off the coast of Western Australia. We are investing millions of dollars in Australian universities and other educational institutions to build local expertise to support the Prelude FLNG project. This includes working with the University of Western Australia’s Energy and Minerals Institute to strengthen research into the impact of weather and ocean conditions on offshore gas installations and operations.” In 2012, Shell started a jointly funded project with Patum Vegetable Oil Company, a Thai producer of edible palm oil and biodiesel, to produce sustainable palm oil in Thailand. The project involves preparing selected palm oil crushing mills and training their associated smallholder farmers for certification against Roundtable on Sustainable Palm Oil (RSPO) standards. To date, nine mills and around 1,800 farmers are taking part in the project. The project will take at least two years, with the expectation that up to 40,000 tonnes of palm oil will be certified as a result. In 2013, Raízen, a joint venture between Shell and Brazilian firm Cosan, started construction of a facility at one of its mills that can produce advanced low-carbon biofuels from bagasse, leaves, bark and other sugar-cane

waste, with technology provided by Iogen Energy. “We are also developing low-carbon biofuels that have comparable energy content to petrol and diesel. A pilot facility at our Shell Technology Center Houston, US, continues to advance these technologies. We have dedicated biofuels research teams and research agreements with leading academic institutions across the world, including the University of São Paulo, Brazil, and Utrecht University, the Netherlands,” a company statement said. Shell recently completed acquisition of the Repsol LNG portfolio outside North America for a headline cash consideration of $4.1 billion. As part of the transaction, Shell will also assume $1.6 billion of balance sheet liabilities relating to existing leases for LNG ship charters, substantially increasing the shipping capacity available to Shell’s international LNG marketing business. The deal gives Shell an additional 7.2 million tonnes per annum (mtpa) of directly managed LNG volumes. The company’s already diverse and flexible portfolio will be boosted with LNG supply in the Atlantic from Trinidad and Tobago, and in the Pacific from Peru. In addition, it immediately contributes additional cashflow, while requiring limited ongoing capital expenditure. As part of this agreement Shell has committed to supply around 0.1 mtpa of LNG to Repsol’s Canaport LNG terminal in Canada over a period of 10 years.

World Bunkering Summer 2014

Geopolitical crises in a number of regions could threaten oil supply – and prices

ith ongoing tension in Ukraine as well as the Middle East and North Africa, potential disruptions to fuel supplies could spring up quickly. Companies need to look at their oil price exposure and see how robust their bottom line would be in the event of an increase in oil prices of 5%, 10% or even 20%. That is the view of Hans Erik Christensen, managing director of Global Risk Management, in his introduction to the company’s latest quarterly survey. According to the report, oil prices slipped during the first quarter of the year, despite bad weather conditions in the US, the escalating crisis in the Ukraine and supply constraints for a number of OPEC countries. Dated Brent prices fell by about 2% between December 2013 and March 2014, according to the report, while, in contrast, in the US benchmark West Texas Intermediate (WTI) market, prices rose by around 3% during the same period. “The Brent market has shrugged off continued supply disruptions in OPEC member countries and rising geopolitical tensions surrounding Russia’s annexation of Crimea,” the report states. Mild winter weather over much of Europe, an easing of China’s apparent demand for refined products and good supply availability

World Bunkering Summer 2014

from those OPEC countries that are not experiencing supply disruptions helped to create the conditions for the slow downward momentum in Brent prices, the report suggests. One of the surprises of last year was the strength of OECD demand in the second half, according to Global Risk Management, when it increased more than 300,000 barrels per day (bpd) compared with the same period in 2012. This strong growth is not expected to continue into 2014, the report suggests, with estimates for global oil demand growth remaining at around 1.4 million barrels per day (mbpd), comparable with the increase in consumption in 2013. While the outlook for the Eurozone economies is a bit more positive than it was last year, the recovery is expected to remain “weak and fragile”, the report suggests, and could be affected both by a slowdown in demand for the region’s exports from Asia and the continuing cost of structural adjustments in several EU countries, it is suggested. The outlook for the US economy is better, according to the report, although there are fears that the tapering of quantitative easing could undermine the positive impact of cheap energy supplies through the exploitation of shale gas. China’s demand for oil grew by 0.25 mbpd last year, the smallest annual increase in almost a decade,

Risk management

Talking tension Global Risk Management says, although growth is expected to rebound this year, partly because of the need for oil to fill newly commissioned refineries and storage facilities. Oil demand this year is expected to rise by around 400,000 bpd or 4%. Non-OPEC oil supply is expected to continue its strong growth this year, led by the US tight oil boom and rising Canadian production. Some of the optimism surrounding the UK sector of the North Sea is “already beginning to waver”, the report suggests, with some field start-up dates beginning to slip. Latin American output growth is based on Brazil’s ability to meet its new field start-up schedule, which it has been struggling to do. As a result, there is some downside risk in non-OPEC output growth forecast from these sources. As far as OPEC nations are concerned, this jumped by almost 500,000 bpd in February, compared with the previous month, because of a surge in Iraqi oil production, which exceeded 3.5 mbpd for the first time since before the start of the Iran-Iraq war in 1980. Whether this increase can be maintained remains to be seen, the report says. Several fields are expected to begin producing this year, but it is also an election year and foreign investors are already complaining of bureaucratic delays, which are preventing them from bringing fields into

Risk management

production, Global Risk Management says. Other OPEC members are facing “tough times” and Libya’s oil production has collapsed, owing to threats of secession by the east part of the country, blockades of terminals by local militia and disgruntled oil-sector workers. Output has also slipped in Algeria. Saudi Arabia, the report says, has done an “exemplary job” since 2011 in ensuring oil price stability. The situation in Crimea remains a vital component of the geopolitical outlook. Neither the US nor the EU has accepted the results of a referendum that overwhelmingly found in favour of voting Crimea back into Russia. The US is not dependent on Russia for oil supplies, but the EU imports approximately one-third of its

energy needs from Russia, including 3 mbpd of crude oil, the report says. After Iraq and Afghanistan, the US is suffering from “war fatigue” and has no interest in taking Russia on, Global Risk Management suggests. If European countries decide to stop buying Russian oil to punish President Putin, Russia would make use of the newly completed second stage of the ESPO pipeline to divert oil to Asia instead of Europe. Although it cannot divert the whole 3 mbpd yet, 50% by the year-end would be possible. Europe would then have to find 3 mbpd elsewhere. Part of the shortfall might be covered by Saudi Arabia, but there would still be a shortfall of 1 mbpd, which could push the oil price upward. The only alternative would be to make

use of strategic petroleum reserves (SPR) or have the US change regulation and start exporting crude, which is currently prohibited under the Jones Act. If SPRs were released, the oil price would go down, “but all Russia would have to do is ride out the storm” until SPRs became dangerously low. “This would give Russia more leverage as it still holds the oil in the ground.” The report predicts that Russia is likely to hold onto Crimea. Russian troops entering Ukraine would have the effect of having speculators “hit the sell button”, but Global Risk Management views the chance of this happening as minimal. The company also believes that Iran’s interim deal on the nuclear issue is likely to be extended in the second quarter.

Cargo losses

In recent years, cargo losses worth more than $100 million have not been recovered under traditional cargo insurance policies owing to critical exposures being excluded, warned Willis Group Holdings, the global risk adviser, insurance and reinsurance broker. Heightened levels of political unrest and uncertainty have highlighted a significant gap in coverage for cargo risks around the world. That is because standard ‘all-risks’ cargo insurance policies may not respond to losses arising from various types of violent unrest. For example, traditional cargo insurance policies typically exclude certain losses, such as those arising from civil war, insurrection, rebellion and terrorism for goods in store. Meanwhile, political violence policies, which typically respond to these types of risk, usually exclude transit exposures and cover fixed assets rather than stock. In response, Willis has launched a new insurance facility, called Undercover, to protect cargo in transit and in store against all types of political violence, terrorism and war risks. Willis’s Undercover, which has received support from a panel of leading London Market insurers, wraps up the coverage provided by these different policies under a single facility, eliminating gaps in coverage and reducing premium costs by removing duplication of cover. It is understood that there is currently no other such facility available in the market.

Trevor McGarry, executive director of Willis’s marine insurance business, said: “It is apparent that many companies misunderstand their cover. They think they’re protected when in fact they are not. “With all the unrest currently sweeping across the world, it can be difficult for companies to be assured that they have the right cover in place, particularly when the definition of violent acts is open to interpretation. The violence in Syria, for example, has been inconsistently reported as a civil war, a rebellion, and an insurrection. And yet how these events are defined has a critical bearing on whether or not insurance policies will respond.” McGarry continued: “With that in mind, and given the extraordinary volume of losses that are not recoverable under traditional cargo insurance policies, Willis has created Undercover, a facility which protects companies against all their cargo exposures, regardless of whether that cargo is on land or at sea, in transit or in store.”

World Bunkering Summer 2014

Testing

Rapid changes ahead Michael Green, global technical manager – bunker fuel testing for Intertek Lintec ShipCare Services, looks at the challenges facing fuel testing companies over the coming year

he routine analysis of marine fuel is not a new concept, but it is an aspect of the bunker industry that still creates discussion and divides opinion. The ISO8217 quality standard was implemented in 1987 as a result of a number of changes within the refining industry coupled with the view that a degree of regulation was required with regard to the products bought and sold. The ISO8217 fuel standard has grown and developed over the years

World Bunkering Summer 2014

to embrace the changes seen within the industry. However, at this current time, as more questions are being asked regarding the future, routine analysis is still not universally undertaken by all owners/operators. A large proportion of the world fleet is not examining the product being supplied. Continued changes in refining and treatment processes over the years have altered the profile of the products being used and, as such, the examination of the fuels has become all the more important.

This being said, there are still some stumbling blocks in relation to routine fuel testing. In certain quarters, the perceived role of a fuel testing agency is to frighten owners/operators with horror stories of appalling quality fuel that will potentially destroy their vessels’ engines. There is a degree of truth with regard to possible damage, but it is obviously an exaggerated point of view with the reality being far less dramatic. The majority of owners/operators who subscribe to the ShipCare analysis programme look at routine analysis not only as a damage prevention service but also as a means of gaining a clear overview of what has been received. They use the information provided to ensure the fuel is handled and treated correctly onboard. One of the big challenges for testing agencies now is what to do when an ‘unusual’ problem fuel is discovered. Testing agencies, owing to their very nature, will see a wide range of fuels that don’t meet the test criteria laid out in ISO8217. However, instances where a supplied fuel meets the requirements for the applicable ISO8217 grade but subsequently causes problems once onboard are becoming more common. In such cases, the first course of action for a testing agency is to establish the exact nature of the

Testing

problems seen and to determine whether they can be directly attributed to the product being burned. As reports of such problem cases increase, so too does the application of more wide-ranging forensic-type tests. Examination of fuels using methods such as gas chromatography/ mass spectrometry (GC/MS), Fourier transform infrared spectroscopy (FTIR) and techniques to establish fuel stability are becoming more widespread and can provide an insight into the possible reasons for the problems seen. Tighter legislative constraints have led to an increase in the use of blend components to reduce sulphur content and it has been well established that such blending has brought with it increased concerns. Certain blend/cutter stocks contain a wide array of compounds that could be deemed to fall outside the requirements for a marine fuel based on section 5 of the ISO8217 standard. However, proving this to be the case, or that the fuel is likely to cause damage, can be difficult. On the face of it, appearances would suggest

that such problems are something testing agencies are going to see more frequently moving forward â&#x20AC;&#x201C; or will they? The lack of demand for 1.00% sulphur fuel after 1 January 2015, when the 0.10% sulphur cap in emission control areas comes into force, will see an end to the blending of residual fuels for compliance reasons. On this basis, it is fair to suggest that cases of chemical contamination, reduced stability and the introduction of cat fines should be significantly reduced. This being the case, testing agencies are going to find that their priorities will change very quickly in the coming months and their sample submission rates, particularly in relation to the type of samples received, will change dramatically. The shift in legislative focus will see an increased number of distillate fuels being submitted and tested. Currently, sample submission rates for the ShipCare testing programme show an 80/20 split between residual and distillate fuels, with many owner/

operators not routinely testing distillate fuels. Increased demand for distillate product will see a greater number of fuels being subjected to a wider range of treatments to achieve compliance. This combined with an increase in the price of distillate fuel will prompt owners/ operators to look more closely at the quality of the product being provided. Concerns have already been raised (and addressed by the revised ISO8217 standard) about reduced lubricating properties and oxidation stability, as a result of hydro desulphurisation. However, the issues do not end there and the changing nature of the distillate products available at this time has already shown several cases where vessels have experienced problems as a result of reduced cold flow properties. It is fair to suggest that such cases are likely to be seen more frequently in the build-up to, and immediately after, 1 January 2015. Although the work done by testing laboratories may change, their importance to owners/ operators will remain undiminished.

USA: +1 713 407 3695 ASIA: +65 6322 8215 UK: +44 1325 390180 E-MAIL: marine.services@intertek.com WEB: www.intertek.com/marine

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World Bunkering Summer 2014

Testing DNVPS promotes latest standards The Singapore testing company has urged ship operators to take up the 2012 edition of ISO8217

n an alert to its customers, DNV Petroleum Services (DNVPS) has encouraged the use of the fifth edition of the ISO8217 marine fuel standard, released in August 2012. The testing firm notes that, despite an initial slow adoption rate, mainly due to long-term charter contracts using the 2005 parameters,

World Bunkering Summer 2014

non-availability in some ports or the additional price tag imposed on fuel price, there is now a growing understanding of the advantages of this edition. DNVPS urges its customers to adopt ISO8217:2010/2012 as it “offers greater protection against costly engine damage”.

According to DNVPS, there are several advantages to using the latest edition. It contains stricter parameters – for example, the maximum allowable catalytic fines limit has been reduced from 80 to 60mg/km (ppm) and is closer to engine manufacturers’ recommendation of 10-15mg/kg. It also points out that P&I Club reports have highlighted catalytic fines as a serious contributor to engine damage. During the International Union of Marine Insurance’s annual conference held in London last year, Braemar Shipping Services’ chief surveyor also told insurers to urge shipowners and operators to take responsibility for engine damage caused by catalytic fines in fuel oil. In addition, DNVPS says, the introduction of further quality test parameters, such as lubricity, acid number and fatty acid methyl ester (FAME), also offers better protection or machinery operation. The alert highlighted that work on the next edition of ISO8217 is well advanced and could be finished by 2016. DNVPS warns: “Getting close to 10 years old, the [still widely used] 2005 specification doesn’t adequately cover today’s requirements of fuels supplied on a worldwide basis in relation to ships’ machinery and environmental legislation.”

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Spain

Even with the new bunker business drawn by Vopak’s terminal, Algeciras has seen a challenging 12 months

A tough year Last year was a difficult one for Spain's top bunkering hub, John Rickards reports

he port of Algeciras endured a poor 2013 despite the opening of the new Vopak oil storage terminal for fuel oil in March of that year, and the surge of bunker suppliers that followed on behind. The port supplied 2.65 million tonnes of bunker fuel, a drop of 7.3% from the 2.84 million tonnes delivered in 2012. Vopak’s fuel storage terminal opened in March last year with a capacity of 402,000m3, and there are now several other suppliers working in the port alongside existing players CEPSA and Repsol, with BP, Bominflot, Aegean and Peninsula Petroleum all taking a slice of the pie. In addition, the number of bunker barges has increased from five to 12. Earlier this year, Spain’s energy and mines department approved an expansion of the terminal, allowing Vopak to build a further 36 tanks if the company wished, adding 881,000m3 to its capacity. At the time of writing, the tripling of the terminal's fuel storage capacity remained in the feasibility study phase, with Vopak discussing the possible expansion with bunkering firms and other inshore customers, and no timescale had been released. With LNG’s importance growing, it is to this alternative fuel that the country’s eastern coast is increasingly looking. Barcelona’s port authority

World Bunkering Summer 2014

inked a deal at the start of this year to promote LNG for marine use with Spanish utility company Gas Natural Fenosa. The cooperation deal is intended to encourage LNG bunkering at the port – which the authority intends to launch from the Enagas regasification and storage terminal as soon as it is viable – as well as the use of LNG in shoreside port operations. At the same time, the EU has finally agreed to co-fund a series of studies selected as priorities by the Trans-European Transport Networks (TEN-T) programme to investigate LNG bunkering potential on the Spanish Mediterranean coast. The €1 million grant will see the ports of Barcelona, Valencia and Cartagena evaluated for LNG bunkering along with the technical, operational and economic hurdles that LNG might experience in the region. The studies will look at both port facilities and the likely uptake of LNG in shipping fleets. TEN-T will also propose possible supply chains, in a bid to make LNG infrastructure easier to develop in a timely manner, and carry out similar studies elsewhere in the western Mediterranean, plus one covering the northern Spanish port of Santander. The port of Huelva, meanwhile, has gone one step further. This spring, Huelva Port Authority announced that it would be taking advantage of the nearby existing Enagas regasification

plant to begin offering LNG bunkering as soon as commercial suppliers can be found. It has drafted a set of conditions of supply and protocols for bunkering, and aims to have LNG bunkering in place well before 2022, three years earlier than the TEN-T target of 2025. Whether the port will achieve its aim remains to be seen.

physical bunker supplier at ports of Varna, Bourgas and Constantza

High Quality Bunker Fuels ISO 8217 : 2010 Quality Management System cert â&#x201E;&#x2013; 10235 ISO 9001 : 2008 ISO 14001 : 2004

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Italy © M. Crozet

LNG action John Rickards reports that LNG bunkering plans are going ahead, but Italy’s share of today’s bunkering market is tumbling

talian classification society RINA won approval earlier this year from the Danish Maritime Authority to carry out plan approval and surveillance during construction of Danish-flag ships using liquefied natural gas (LNG) for fuel. Andrea Cogliolo, head of innovation for RINA Services, said: “This authorisation recognises RINA’s expertise with gas and will allow us to assist owners in Denmark who are actively considering conversions to, and newbuildings with, LNG fuel. We believe there will be a rapid and accelerating switch to LNG as a fuel in north European waters, but the move to gas must be done safely and with good management of all the risks involved.” RINA already has rules and requirements for the use of gas fuels on board ship. It says that these rules allow the industry to ensure that installations are as safe and reliable as a conventional power plant. Until the International Maritime Organization’s gas-fuelled ships code is finished, owners have little choice but to work to class requirements. The society has been working for some time on wider studies looking at the possibilities for LNG bunkering facilities throughout Italy and the Mediterranean. One such facility could come on stream before the end of the decade, with the announcement of plans to build an LNG terminal at the port of Monfalcone in north-eastern

World Bunkering Summer 2014

Italy. While the $150m Genoa, like the rest of Italy, has endured a difficult year Smart Gas Monfalcone © M. Crozet facility will primarily handle LNG imports for use on shore, the consortium behind it has said that up to 150 million cubic metres of spare gas is likely to be sold for transport fuel, including for LNGpowered vessels. The terminal is part of an effort by the companies to cut energy costs, banking on LNG prices falling being well diversified, serving different as US shale gas production increases. It types of vessel in various countries could also become a viable bunkering and in different markets, we have port for LNG-powered vessels operating managed to keep profitable. Despite in the Adriatic. The scheme is subject news of a slow recovery in the global to planning approval, however, which economic situation, we don’t feel has already seen other LNG ventures this will be immediately reflected in in Italy fall through. Nevertheless, the the shipping sector. We still foresee a consortium is confident that it will difficult environment for our industry, receive the go-ahead, with imports especially on the credit side and on bad expected to commence in 2018. debt management.” For conventional bunker fuels, the He went on to cite both next year’s picture is less rosy. Vittorio Pisano, of incoming sulphur regulations and their Genoa-based Pisano Bunker, told World effect on fuel availability and the rise Bunkering that last year the country saw of eco-shipbuilding and the drive to roughly 2.6 million tonnes of bunkers greater routing efficiency to drive sold, down 20% on the previous year. down fuel consumption across the “We have also seen a decrease world fleet as the biggest issues facing in our volume, due to the economic bunker traders. situation,” he said. “But, our activity

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Greece

Signs of recovery A strong cruise business looks set to counter-balance a tough few years, restoring stability and potential over time

iraeus is starting to show signs of, if not outright recovery, at least a return to stability after a tough few years. A major factor in this steadying of the market, despite Greece’s ongoing economic issues, has been the strong cruise business. Piraeus saw 721 cruise vessel calls in 2013 and 350,000 tonnes of bunkers supplied to those ships. JetOil’s Alexander Prokopakis described it as “a great year”. “We serviced about 30% of that business,” he told World Bunkering. “I was hoping to be close to 40%, but we still hold a very good position.” Overall bunker volumes at the port were still a little down in 2013, dropping an estimated 2% compared with the year before, but cruise deliveries rose around 6% to mitigate the shortfall from other sectors. The slight fall was not enough to see Piraeus’s smaller suppliers consolidating at all, though, which some involved in the market had both hoped for and expected. Indeed, Prokopakis said that there are rumours that one or two new firms may enter the local market, something that would not be good for the market in his opinion, as Piraeus already has too many suppliers as it is. On the whole, though, the picture looks reasonably good for Greece’s maritime hub. Prokopakis expects levels to remain steady for the next

World Bunkering Summer 2014

couple of years, shifting only a couple of percentage points either side. “We are happy that the port is stable and there is potential,” he said. “We don’t expect dramatic and quick changes but, over time, with small and stable steps, we believe that things will get better.” Things are less rosy for a local supplier embroiled in a massive Greek investigation into fuel oil smuggling and fraud. Earlier this year, the head of Attica-based bunker firm Eteka, George Spanos, was arrested by Greek police along with numerous other suspects, including two government officials, and jailed in Korydallos Prison pending trial. The allegations, which Spanos strongly denied, were that bunker fuel intended for ships was instead being shifted to gas stations in Attica without

paying fuel tax levies. Up to 4.5 million litres of MDO was withheld from vessels, carried by truck to fuel stations also owned by Eteka, and then mixed with domestic diesel for resale, costing the Greek government l3.5 million in tax revenue. A quantity of contraband fuel, along with trucks and a considerable sum of cash was apparently found on company property. Eteka owns seven bunker barges operating out of Piraeus. At the time of writing, no trial date had been set for Spanos, or the senior member of the Greek environment ministry and customers officer, both accused of warning Eteka of upcoming inspections and checks, or a marine engineer, all also in custody. A number of other suspects are reported, at least at the time of writing, to remain at large.

Cyprus

Volumes soar The bunkering industry in Cyprus is taking off on the back of private investment, reports John Rickards

he Cypriot bunker market has been in rude health of late, and new opportunities are on the horizon to see it expand further. The country’s ports sold around 230,000 tonnes of fuel oil last year, up from 190,000 tonnes in 2012, with a further 80,000 tonnes of marine gas oil. The government has had to issue a clarification over proposals to privatise parts of the Cyprus Ports Authority (CPA), saying that while sections of the CPA will be sold off, principally commercial activities, the country’s ports and regulatory management will remain under CPA control. It is the private sector that could offer a shot in the arm in terms of driving fresh vessel traffic and offering opportunities to bunker suppliers once

the new VTT Vasiliko oil terminal at Vasilikos becomes operational this summer. VTTV is a subsidiary of Dutch group VTTI, a joint venture between energy trader Vitol and Malaysia’s MISC group, and the terminal, which has been two years in the building, should see its first phase development operational by the time this magazine goes to print. VTTV has 28 storage tanks with a total capacity of 543,000 cubic metres, deep water access, and will be initially used to store gasoline, diesel, jet fuel, gas oil, and MTBE, either for transshipment or for sale and use on land. A second phase development, still under evaluation, will, however, add a further 305,000 cubic metres in 13 tanks and be used for fuel oil and crude oil, with bunker suppliers in nearby Limassol potentially well-placed

The new VTTV terminal at Vasilikos becomes operational this summer

World Bunkering Summer 2014

to make good use of the available tank storage facilities. A company spokesman told World Bunkering that: “VTTV can provide storage capacity for traders and also local oil marketing companies for the sale of products to the inland Cyprus market. The terminal can also handle ship-to-ship (transshipments) operations on its own private jetty. The jetty has four berths, which can handle vessels from 10,000 DWT up to Suezmax-size vessels. The access to the fifth berth is within the Port of Vasilikos and is connected to the jetty. This berth is accessible for vessels lower than 10,000 DWT." The company confirmed that it was preparing deals with potential customers for the tank storage facility, but said that it could not legally disclose any names at the time of writing. VTTI has said in the past that it hopes the new terminal will serve as a hub for fuel oil trades from the Black Sea, distillates from the Middle East and gasoline from Europe. The terminal was planned with the idea of attracting over 500 ship calls per year. With vessel traffic in the Mediterranean still on the road to recovery, not to mention the political instability affecting the northern Black Sea ports at time of writing, VTTI will be hoping that by the time a decision has to be taken on expansion the overall market prospects will be clearer.

Malta © John Haslam

Aspiring for hub status John Rickards reports on increasing optimism in Malta

alta has seen concerted efforts to boost the importance of its port sector as a whole and its bunker industry in particular, with plans afoot to give the island hub status. Singapore-based bunker supplier IAG-Pacific Group is one of two firms, the other being foreign exchange group Six Capital, from the South-East Asian republic, to ink joint venture deals with local conglomerate Attard & Co (ACO). IAG’s deal will see it establish IAG-Pacific Group (Malta) Co, with a focus on oil and fuel trading, both wholesale and retail, for governments and oil companies trading between Asia and Europe. IAG chairman Goh Jin Hian said: “Pending the approval of the Industry on the island is hoping to see Malta’s standing as a hub boosted © John Haslam

World Bunkering Summer 2014

Singapore-EU FTA and the Partnership and Cooperation Agreement (PCA), we have gone ahead to establish a presence in the EU via Malta as our preferred gateway in the Mediterranean owing to its geo-political location and proximity to mainland Europe, North Africa and the Middle East. Malta has an island economy much like Singapore and Hong Kong, with few natural resources and a dependency on intellect and investment capital. I believe that Malta has the potential to punch well above its weight class.” ACO chairman Luciano Mule Stagno added: “With our long and established history and diverse portfolio of services, we are strategically positioned to support and add value to this venture. We look forward to a long and mutually beneficial relationship with both companies.” The Singapore-EU Free Trade Agreement and Partnership and Cooperation Agreement are intended to encourage inter-regional investment and lead to easier trading conditions. Redevelopment plans are also going ahead for a new maritime hub on the site of a former shipyard in the port of Marsa. The consultation process

for the development ended this spring and prospective developers are now submitting individual proposals for the site, which totals 175,000m2. According to Malta’s minister for the economy, Chris Cardona, the site will host refuelling, ship repairs, maritime insurance offices and shipbuilding facilities. Over 40 expressions of interest were reported to have been received by the country’s Privatisation Unit before the call for proposals went out. In Marsaxlokk, extensive dredging work has been completed at terminals one and two and in the port approaches to enable it to serve Triple-E container vessels. The port’s number two container terminal has also seen infrastructure improvements and quay lengthening. Malta Freeport Terminals hopes that the combined development work will see a rise in container traffic. If Marsaxlokk is successful in drawing Triple-E vessel calls, an increase in bunker demand should follow for the port’s suppliers. Meanwhile, legal proceedings over Enemalta’s oil procurement procedures against one-time Mediterranean Offshore Bunkering Corporation head Frank Sammut and former Enemalta chairman Tancred Tabone continue to rumble on. The two were arrested last year over allegations that they took large-scale illegal commissions on fuel purchases made by Enemalta in return for favouring particular suppliers.

PORT OF

GIBRALTAR •

Close to main shipping routes

•

Competitively priced bunkers delivered by quality operators

•

Safe anchorage

•

Established, quality cruise facilities

•

Broad spectrum of marine services

•

Excellent international communications

North Mole, Gibraltar, Tel: +350 20046254, Fax: +350 20051513 Email: gpaenquiries@port.gov.gi Web: www.gibraltarport.com

While Gibraltar’s bunkering business remains controversial, and enmeshed in the wider political debate on the sovereignty of the territory, the sector remains in robust health

lthough it faces increasing regional competition, Gibraltar remains the one of the largest bunkering ports in the Mediterranean. According to the Gibraltar government, its bunkering companies continue to go from strength to strength. In an interview in March, World Bunkering asked Neil Costa, Gibraltar’s minister for tourism, public transport, commercial affairs and the port, how he saw the future of the Rock’s bunkering business (see opposite page). The minister was speaking after being in office a little over a year. He made it very clear that the government recognised the importance of bunkering to the territory’s economy. He pointed to the statistics. Figures for 2013 has not been published by yearly May but figures up to 2012 show that, by a massive margin, the main reason for vessels to call Gibraltar in is taking on bunkers.

While there has been a downward trend in bunker calls and volumes supplied there was gernal consensus that this mainly reflected the global economic situation and that Gibraltar would eb able to maintain is position despite increasing competition in the Strait of Gibraltar. Shortly after the current government came into power, it brought in regulations to extend the model previously applied to the bunker industry to the ship-to-ship (STS) industry. The most significant point of the STS code of practice is that any STS operations supported from Gibraltar can only take place within British Gibraltar Territorial Waters, where, the government points out, supervision, regulation and support services are readily available. This also means that Gibraltar supported bunkering cannot take place outside territorial waters. One prominent agent told World Bunkering that, despite the industry’s

Strait of Gibraltar

Strong commitment to bunkering initial misgivings, the STS policy was working well in practice. The other questions put to the minsters revolved around two linked issues. The first is how to make the best use of Gibraltar’s limited space – on land and in the waters off the Rock. The second is Gibraltar’s difficult relationship with Spain. Taking the space issue first, the use of storage tankers (referred to as motherships) has in recent times been vital to Gibraltar’s business. Until a few years ago, the former military landbased storage tanks at King’s Lines fuel storage facility were also used for commercial bunkering, but these are now disused and the general opinion seems to be that putting the tanks and pipeline to North Mole into operation would take a major investment. The minister confirmed that nothing is currently planned for King’s Lines. More generally, space is very limited in the harbour, and commercial

Year

Cruise

Cargo

Bunkers

Repairs

Off Limits

Other

2010

175

178

6724

128

1365

505

2011

187

164

6181

117

1492

597

2012

173

161

6362

127

1259

444

Figures for volumes supplied at Gibraltar are only available to 2011, when 4,265,086 tonnes were supplied, down slightly from 2010’s figure of 4,283,375

World Bunkering Summer 2014

Strait of Gibraltar 64

operations, other than ship repair, are still concentrated on North Mole, an arrangement that developed when Gibraltar was first and foremost a naval base. There seems little prospect that this will change, but two developments may help. One is the planned move of the port office to a site in the southern part of the Rock. As well enhancing the capability of the port authority to control shipping in both the west and east anchorages, this should free up some space on North Mole for commercial use. Perhaps more significantly, the Detached Mole is now being used to berth a mothership, with bunker barges coming into the harbour to take on fuel for the ships in the anchorage. Prior to the change of government, there were some tentative steps towards bunkering in the Eastern Anchorage. The minister has made it clear that this will not happen. He did, however, leave open the slight possibility of LNG bunkering taking place there. So bunkering can only take place in the Western Anchorage. But even that is politically controversial. Relations between Spain and the Gibraltar government have deteriorated over the past year, particularly following the creation by the Gibraltar authorities of an artificial reef within its three-mile territorial waters, which are not recognised by Spain. The reef is said to obstruct trawling operations by Spanish fishermen. In the background, a dispute has rumbled on about Spainâ&#x20AC;&#x2122;s allocation of waters claimed by Gibraltar as British Gibraltar Territorial Waters as part of a Spanish marine national park, the Estrecho Oriental. To date, however, the bunkering industry seems to be carrying on as usual and local agents are focusing on the challenges that the 0.1 per cent sulphur limit in the emission control areas could bring.

Ceuta

he Spanish territory of Ceuta, on the African side of the Strait of Gibraltar, is the base for two suppliers. Cepsa is the largest, but the arrival of Spanish-based oil trader Vilma Oil as a physical supplier some six years ago helped push up volumes. Cepsa supplies from the Ducar II Terminal, connected to Poniente Wharf, while Vilma Oil operates from Ducar I Terminal, connected to Levante Wharf. Vilma began operations in Ceuta in 2006. Since January 2010, Vilma has operated the chartered bunker barge Sea Dweller, which has a capacity of 3,684m3, to work in the anchorage. It stores its fuel in an onshore tank farm, with a 83,500m3 capacity, and makes deliveries of residual (including ECA-compliant) and distillate, both alongside the wharf and in the anchorage. Vilma Oil has ISO9001:2008 Management System Standard and ISO14001:2004 Environmental Management Standard certification. Last year, a Vilma spokesperson told World Bunkering that Ceutaâ&#x20AC;&#x2122;s market segment was unique in the area for middle-size vessels and deliveries, and that increased recognition of the port will ensure a continued strong position. He said that, although there would be new challenges with the start of operations at the Vopak terminal in Algeciras, this would allow the entry of new competitors in the Strait. This year, Ceuta appears to be continuing to more than maintain its market share at the port.

World Bunkering Summer 2014

Gibraltar

The minister’s view Gibraltar’s minister for tourism, public transport, commercial affairs and the port, Neil Costa, talks to World Bunkering’s editor, David Hughes

started by asking how high a priority the government gives to the bunkering sector. The minister was in doubt about the significance of marine fuel sales to Gibraltar’s economy. He highlighted the importance of the port and particularly bunkering, as shown in the annual port statistics. “It is estimated that bunkering and associated activities contribute upwards of 30% of Gibraltar’s GDP,” he noted Turning to the future, I asked: “How much scope is there to expand bunkering operations in Gibraltar?” The minister replied that there was further scope for expansion, particularly if suitable land-based storage could be developed. This would allow better use of the established bunkering anchorage ‘slots’ in the bay. However, there were no current plans to refurbish the King's Lines facility. On a possibly contentious issue, I asked: “Do you still think the government’s decision to ban ship-to-ship transfers outside port limits was correct?” He was unequivocal on this point, stressing: “In order to preserve Gibraltar’s reputation as a safe and regulated area to conduct ship-to-ship operations, it was necessary to ensure that all such operations connected with Gibraltar are properly monitored. This is only possible if the operations take place within British Gibraltar Territorial

World Bunkering Summer 2014

Waters.” He added that the move was correct and necessary to ensure operations were under proper control. On a controversial subject, I asked to what extent Spanish government actions and EC acceptance of the Estrecho Oriental marine national park had constrained bunkering operations in Gibraltar’s waters. There was another very clear response. The minister said: “There has been no effect felt to bunkering operations due to the action of the Spanish government.” One ‘mothership’ or bunker storage tanker is now operating alongside the Detached Mole. I asked if that was going to be a permanent arrangement. The minister replied: “The future use of the Detached Mole is subject to a strenuous planning regime to ensure that any future activities and requirements for the facility are compatible and safe. Mooring a storage vessel does provide an elegant solution to the fuel storage issues in the short to medium term.” Looking ahead, I asked what plans there were for the development of the port, especially regarding the North Mole and whether there was a problem mixing ‘dirty’ port activities and cruising? The minister replied that there was no conflict and that plans to develop the area are in progress. He also mentioned moving the Gibraltar Port Authority to a new location while the

development of the port was under review, with a view to providing further and better cruise facilities. He pointed out that the move of the port office and Vessel Tracking System Centre to a site outside the port estate would potentially release land for portrelated activities, including commercial port activities. So, what level of investment will be needed in the port in the near future, especially in the bunker sector? No figures were mentioned, but Costa said that investment in infrastructure will come from commercial investment and that he would make an announcement in due course. The minster also repeated the government’s view that bunkering of fuel oil would not be permitted off the Rock’s eastern coast. He said that the risk of pollution following an incident was too high. He pointed out that, in the Western Anchorage, where bunkering does take place, response measures could be put in place very quickly in the event of an incident. However, the government might allow liquefied natural gas (LNG) bunkering at the Eastern Anchorage if studies showed such operations to be safe. He said that the government would study the option for LNG bunkering and that using the Eastern Anchorage could be a possibility. He emphasised, however, that no decisions had been taken.

Morocco Morocco’s smaller ports continue to see solid business, but the fuel market is dominated by Tanger-Med

Volumes on the rise John Rickards is keen to see whether Morocco’s new Tanger-Med can maintain its performance as the final developments fall into place

anger-Med may be a port still under development, but it is already seeing strong vessel and cargo traffic and consequently robust bunker sales. Last year, cargo tonnage throughput at the port was up 39% to 34.9 million tons, with container traffic accounting for most of that figure with 2.5 million teu handled. The Renault factory at Melloussa helped contribute to the 81% rise in vehicle traffic to 185,000, over half of which were newly-built and shipped for export. Regular ferry calls from Algeciras have maintained passenger and ro-ro vehicle numbers at previous levels. All of that port activity has seen Tanger-Med, principally through main bunker supplier Aegean Marine Petroleum, sell 2.05 million tonnes of fuel over the course of 2013. Aegean reported volume sales of nearly 10 million tonnes of bunkers for 2013, implying, though not confirmed by the company, that its Moroccan operation has been a strong contributor to a year of better results after a challenging year prior to that. Tanger-Med’s bunker market is certainly already approaching that of nearby, more established, rival ports such as Algeciras and is respectable compared with Gibraltar. The port’s newly-built facilities and the absence of the type of political wrangling currently

afflicting Gibraltar in particular are no doubt attractive to vessels. It will be interesting to see if the port’s performance continues to improve as the final developments fall into place over the coming months. The market in the western Mediterranean is challenging, with several large ports in direct competition with one another. Ongoing drives for vessel efficiency and, across the Straits, a growing interest in LNG and alternative fuels all pose fresh challenges. That is not to mention shifting traffic patterns, particularly in the container sector, as Triple-Es and ever-larger box ships carry more Europe-Asia cargo, potentially leaving some current major routes to become served by smaller feeders and posttransshipment box vessels. If TangerMed can capitalise on its location and newcomer status it could be well-placed to make the best of them. Other Moroccan ports, notably Casablanca and Jorf Lasfar, have

continued to see respectable overall traffic, as has Agadir’s cruise calls and cereal business. They remain comparatively small bunkering ports, though, with MGO being the principal fuel supplied by Total Marine Fuels and Shell’s Moroccan subsidiary. OW Bunker’s Canary Islands operation also continues to offer physical supply through its 8,250 dwt tanker Wappen von Frankfurt offshore along the West African coast, including Morocco’s Atlantic seaboard. At the time of the offshore service’s launch last year, OW Bunker’s Jan Christensen said: “We know what our customers need in this region – fast and accurate supply, high-quality products and being able to avoid unnecessary port calls and lengthy waits. With our own vessel and control over the supply chain, we are able to provide our customers with the highest-quality fuels and lubricants in the most efficient and cost-effective way.”

World Bunkering Summer 2014

Turkey

Slimming down, shaping up The need to double-hull its fleet is posing a challenge for the Turkish bunker industry, John Rickards reports

he Turkish bunker industry has seen a big reduction in supplier numbers as the country’s exemption to the MARPOL Annex I doublehull rules for tankers of 600 dwt and over runs out and competition in a tight market bites hard. From 10 bunker suppliers working in Turkish ports a year or so ago, there are now six operating a total of around 55 bunker tankers between them. As tankers reach the three-year dry dockings past the 2010 time limit for double hulling, suppliers expect to see a wave of phase-outs over the next three to four years. Many have already begun renewing their fleet with conversions or newer tonnage replacing older single-hull tankers, investing large amounts of money despite razor-thin margins.

World Bunkering Summer 2014

The main competition to Turkey’s bunker suppliers has come in the form of Russia’s Black Sea ports. Novorossiysk, Tuapse, Taman and Kavkaz at the entry to the Sea of Azov have all taken bunker business from Turkey. Novorossiysk in particular now offers bunkers-only service, drawing considerable traffic, and is reported to be able to supply 220,000-240,000 tonnes of bunker fuel per month. Turkish suppliers, primarily in Istanbul, handled 1.6 million tonnes of bunkers in 2013, down 20% from the 2 million tonnes of the year before. Describing the fall as “very serious”, Energy Petrol owner Mustafa Muhtaroglu told World Bunkering: “To be frank with you, if this goes on the same, the future is not bright for Istanbul and the Turkish bunker market.”

This pessimistic view is not shared by Deniz Eraydin, head of the Turkish Bunker Association (TBA) and CYE Petrol. “Taking into consideration the geographical advantage of the Turkish Straits, we may expect Istanbul to continue to be one of the main supply hubs of the region in the following years,” he told World Bunkering. “Istanbul is already known as the trouble-free supply hub of the area. With economic developments in the Black Sea and Turkish industry, we expect the service sector will grow in the coming years.” Eraydin said that 15,000 vessels out of 50,000 calls get bunker supplies from Istanbul. He expects that number to gradually increase to 25,000 and total annual bunker volumes rise to around 2.6 million tonnes. He also opposes any notion of the country’s bunker suppliers pushing for an extension to the single-hull phaseout deadline. He said the general approach of the industry, following consultations, was that: “[Istanbul, the Marmara Sea and Aegean] are one of the most beautiful and naturally most sensitive areas in the world. We have great responsibilities while supplying fuel oil or any bunker products in these naturally sensitive areas. Instead of making excuses not to invest in newbuild double-hull bunker barges we should find a way to build whatever we need within the given time frame. With

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World Bunkering Summer 2014

Turkey

this understanding, we should not waste time trying to convince the government to postpone its deadline. Instead, we should spend time convincing financial bodies to give credit for newbuilds.” Fleet renewal is very much under way. CYE Petrol has four barges, ranging from 3,300 dwt to 650 dwt, either under construction or already converted to double hull. OW Bunker’s Turkish subsidiary, TBS Denizcilik, has likewise finished converting three of its barges to double hulls well ahead of the deadline. Energy Petrol, which operates 10 bunker barges and one 3,659 dwt tanker, has added four newbuild barges to its fleet in the past year, as well as purchasing the 2001-built tanker Deniz M, which, it claims, is the largest bunker vessel in the region, as part of its own fleet renewal programme. The company still has two further 1,650 dwt barges under construction. Muhtaroglu said: “There are a total of 55 bunker barges serving in Turkey. Some will disappear in time and some new ones will come to operation. At the final stage, I believe the number of barges will decrease and new ones will be in place in the coming years. I assume a total of about 20 new barges will come to market and a lot of old ones will disappear in time. [Once the post-Annex I renewal is complete], I predict a maximum of 40 barges will be working for the Istanbul market.” Quality and quantity reassurance have also been important issues, and ones not confined to Turkey. While Eraydin pointed out that Istanbul has been relatively trouble-free for many years, he said that CYE Petrol was

taking particular steps to try to reassure owners. All the company’s barges have used mass flow meter measurement for deliveries from the Poliport bunker terminal for nearly 10 years and all barge loadings have been overseen by independent surveyors for the past five. And now the company is fitting mass flow meters to all its barges, making it the first supplier in Turkey to do so. “Many ship owners are not willing to pay anything to make sure that they are receiving the quality and quantity they ordered,” he said. “Physical bunker suppliers are providing limited documentation. The gap in between is sometimes filled by people with the wrong intentions (from both sides). We believe physical bunker suppliers should use additional instruments and technologies in order to assure ship owners about the quantity and quality they supply.” This year also saw the TBA join the International Bunker Industry

Association (IBIA) on a corporate membership. While many TBA members themselves belong to IBIA, Eraydin is enthusiastic about having a stronger connection to the international body. “These are sister associations,” he said. “Linking TBA on paper to the mother body made the relationship official. It may not be very important for some people, but now the picture is complete. “Almost all TBA members are also members of IBIA. TBA being a member of IBIA will fill in the missing pieces, though. The flow of information will not only come through members but also directly from IBIA as well. “Obviously, we expect many improvements and developments regarding bunker products and technologies in the coming 10 years. At this point, a healthy flow of information is vital. TBA being a member of IBIA will give us a much healthier network.”

August 12 - 14, 2014 | 1pm - 8pm sulAmericA convention center | rio de JAneiro | rJ | BrAzil

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Australia

The Australian market remains largely controlled by the majors

Energy generates political heat Whether the ruling Liberal party government will succeed in repealing the country’s carbon tax is a hot issue in Australia

nergy policy and the whole concept of the need to reduce carbon dioxide emissions into the atmosphere are controversial topics in Australia The previous Labor government introduced a carbon tax. Repealing it was one of the key promises of the incoming Liberal administration, led by prime minister Tony Abbott. As of late April, political wrangling over the issue was continuing, although Abbott remained committed to a July deadline for repealing the carbon tax law. The debate has direct relevance to the country’s important coastal shipping sector. Bunker duty and carbon tax is charged on all vessels on coastal voyages, and last July the burden went up. Carbon tax rates rose from 6.21 cents per litre to 6.521 cents. At the same time, the bunker duty rebate was cut from 31.933 cents to 31.622 cents. The tax issue does not affect international shipping and Australia is one of the places generally unaffected by the big current issue globally. Quality is seldom a problem in Australia, an insider told World Bunkering, owing to the prominent role of the majors. Lena Johnston, general manager of Sydney-based Australia Bunkering, concurred, saying that quality was not an issue. The global economic situation, however, had been. She said: “Like the rest of the world, we have certainly

World Bunkering Summer 2014

noticed the downturn.” But she added that there was an increasing sense of optimism in the bunkering sector. One major development on the Australian bunker scene is the launch of a physical distribution operation by rapidly expanding global physical bunker distributor and reseller OW Bunker. The company says that the move is part of its strategy to further expand the company’s global physical distribution presence in key locations for customers, “ensuring end-to-end quality in the services and products that it provides”. OW Bunker has leased a fuel oil tank in Port Kembla, New South Wales, and commenced operations there on 1 April. The company will provide vessels with a full range of products, including RMG 380 cSt and RME 180 cSt fuel oil ex-pipe and DMA gas oil by road tanker. It will also distribute products by road tankers from the ports of Sydney, Newcastle and Eden. The company says that all its fuels meet ISO8217:2010 standards. “This is another important strategic step for OW Bunker’s physical distribution operation, in particular as we look to expand our presence within the Pacific, which is an important region for our customers. We are confident that with our proven global model for physical distribution, our understanding of the region and our good relationships with local partners, we can ensure that customers receive the highest-quality

products and services,” says vicepresident Søren Christian Meyer. He adds: “In today’s market, shipowners and operators want assurance that they receive a fuel procurement solution that looks at every opportunity to improve efficiencies within their operations, which saves them time and money. Our physical distribution offering is based on taking control of the supply chain and the entire process from order through to final delivery to ensure that this happens. Based on engaging with customers and partners, we believe that this offering will be of real value. “Port Kembla is one of the major ports in New South Wales, servicing local coal and steel industries, as well as general and break bulk cargoes and motor vehicle imports, and is a key regional hub for some of the world’s leading shipping lines.” OW Bunker already had a reselling office in Melbourne, supporting customers in all key ports throughout Australia, New Zealand and the Pacific Islands. Meanwhile, International Bunker Supplies has deployed a newbuilding at Gladstone. The 3,800 dwt vessel started operations in October last year, replacing the smaller Larcom 1, which had serviced the port since 1991. The company said that the additional capacity of the barge will help to meet the needs of increasing port activity and efficiently service bunker-only requirements.

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Young company aims high World Bunkering talks to Mikhail Rayev, senior bunker designation at Unigroup Marine Fuels Company

World Bunkering asked Mikhail Rayev: “UMF is still a young company. When was it formed?”

MR: “Actually we commenced our trading activities in 2010, but under another trade name, Ekor. As Ekor, we mostly conducted transactions within the Russian domestic market. However, at the same time, we did conclude a number of international transactions. Legally, we established UMF as a foreign entity in 2011, which simplifies international activity significantly. WB: What previous experience did you have in the bunker sector?

MR: Our staff have been engaged in selling marine fuels for more than 10 years as employees of certain local physical suppliers. One of them had been working as a ship’s engineer for more than 20 years and as an operational and senior bunker manager for a shipping company for five and a half years. WB: Can you please outline the current scope of UMF's activities?

MR: Backed up by an exclusive agreement with a local physical supplier, we have the official status of a physical supplier at the ports of St Petersburg and UstLuga. We are supported practically by all local physical suppliers. UMF operates as a bunker trader at Russia’s north-west ports as well as various Estonian ports and the port of Riga. Furthermore, we supply vessels flying the Russian flag both as a supplier and as a trader, which gives our company a competitive advantage.

World Bunkering Summer 2014

WB: Why do you think your company has succeeded in establishing itself successfully so quickly?

MR: That is partly because of our status in St Petersburg and Ust-Luga, but we believe that the core reason is that our staff possess a deep knowledge of the local market and have managed to establish good relationships with market participants. Furthermore, our policy is very customer oriented. We always evaluate our real capabilities and utilise our resources, pinpointing potential clients whom we believe we could serve best. WB: How do you see prospects for the Russian and northern European bunker markets over the next few years?

MR: We cannot really comment on the prospects for the northern European bunker market, but possibly we can for the bunker markets of our neighbouring Baltic states. We presume that the movement of Russian cargoes through the Baltic states will diminish following the construction of new port facilities in Russia and the further development of existing terminals at Ust-Luga and Bronka as well as renovation works at Vyborg, Vysotsk and Primorsk. Furthermore, we believe that US and EU economic sanctions will be imposed on Russia, which should lead to lower cargo volumes in general and those transited through Baltic ports. However, in our opinion, it won’t necessarily affect bunker prices since supplies will be adjusted accordingly. WB: Has your company been affected by the restrictions on the supply of bunkers using barges?

MR: Our company hasn’t been affected since we utilise the services of barges that are in compliance with local regulations.

WB: What are you expecting to happen to the bunker market when the North Sea and Baltic Emission Control Areas come into effect in January 2015? Will sales of residual fuel oil decline sharply and those of distillate increase dramatically? Can the Russian market cope with such a dramatic change?

MR: We believe that shipping companies operating in the areas in question will contemplate the following scenarios in order to comply with the regulations: (a) Scrubber installations; (b) Investment in LNG vessels, applicable for liners only; (c) Change to MGO 0.1%; (d) Shutting down services. In view of the fact that some shipping market participants believe or hope that regulations enforcement will be postponed further and because of the vast investment they would involve, we expect that scenarios (a) and (b) will not be put into practice.

Interview: UMF

nigroup Marine Fuels (UMF) prides itself on being one of the most reliable bunker traders in northern European ports. The company is based in St Petersburg and its core business is bunker trading within Russia’s north-west region. However, it can supply clients at more than 50 bunker locations around northern Europe.

From left to right: Yury Didorenko, Mikhail Rayev, Maxim Shubenko and Evgeniy Chernov

We might anticipate that the remaining scenarios (c) and (d) would affect the market as follows: 1. Market volume as a whole will decrease by about 40%; 2. Product market share will change. At the moment market share is as follows: • IFO HS – 30% • IFO LS – 60% • MGO 0.1% –10% Upon enforcement of regulation the market volume will decrease by about 40% and market share is likely to be split as follows: • Residual fuels HS – 40% • *Distillate fuels LS – 60% *Distillates will be represented in the market by MGO 0.1% and recently developed products, like so-called ‘black diesel’ and similar products with sulphur content less than 0.1%.

Offices in Rostov-on-Don, Taganrog, Yeisk and the Port of Kavkaz Fleet of 13 own bunkering barges complying with loading and supplying regulations Own storage facilities giving flexible bunker delivery options Own terminal at the Port of Temryuk, providing safe fuel loading on tankers of up to 5,000 DWT Fuel deliveries compliant with MARPOL and SOLAS regulations

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For more information, contact: Rostov-on-Don Tel: +7 (863) 242-44-86 +7 (863) 242-44-87 +7 (863) 242-44-88 E-mail: rostov@ybunker.com Yeisk Tel: +7 (86132) 2-60-64 E-mail:yeisk@ybunker.com Port Kavkaz Tel: +7 (86148) 4-43-47 E-mail: kavkaz@ybunker.com

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Russian update

Bunkering news from Russia Olga Bogacheva reports on developments in the Russian bunker sector

Sanctions “will have no impact”

The Russian bunker industry does not expect any economic sanctions imposed by the US or EU to have any impact on their business. According to an industry insider, the general opinion is that foreign companies will put their business interests over political considerations. The view is that the Russian fuel market is very attractive for shipowners. So it is hard to imagine that commercial contacts could weaken without very strong pressure, which in Russia is seen as unlikely. One trader said: “Imagine that you have developed a habit to eat the best black caviar and somebody offers to switch you to red caviar at a higher price and in an unspecified place.” He continued that even if all current foreign partners stopped buying Russian bunker, which he thought was impossible, there would still be few problems for Russian bunkering companies. Shipowners from other countries that do not support sanctions would probably buy more Russian bunkers because of their good quality and competitive price. Call for equal access to port facilities

The Federal Antimonopoly Service of Russia (FAS) has urged the speedy adoption of new regulations allowing

World Bunkering Summer 2014

equal opportunity to access the infrastructure of the country’s ports. FAS head Igor Artemiev told the first deputy prime minister of the Russian Federation, Igor Shuvalov, that the Russian government should adopt rules for equalopportunity access to postal and electronic communications, railway transportation, airports, river and sea ports and gas pipelines. According to Artemiev, European practice proves such rules to be “the best and innovative” and they should include industry-specific procedures that would make competition open and transparent. Referring to draft regulations, he said: “Those are very important documents… to determine performance in competitive areas. There is nothing more important than infrastructure.” He noted that although the equalopportunity access rules had already been written, it will take about six to eight years to adopt them and put them into practice. As a result, he warned, they could be out of date when they come into force and, so, could be “useless” and already requiring revision. He added: “We need to adopt those rules – and the world will change immediately. We guarantee the work will start as soon as necessary permits have been obtained.”

Baltic liquefied natural gas (LNG) project to be ready within five years

A final decision on the location of the natural gas liquefaction plant that forms part of the Baltic LNG project is expected to be announced this summer, according to the ITAR-TASS news agency, which cited an informed source in the Leningrad Region Administration. Three sites in the Vyborg and Kingisepp districts are being considered. This fits in with earlier reports mentioning Primorsk and Ust-Luga ports as possible sites. Construction is expected to start no later than 2015. In March, it became known that commissioning of the first stage of Baltic LNG has been delayed from 2018 to 2019. Gazprom is to undertake this project in partnership with Gazprombank. It is planned that the product will be marketed in Europe. LNG produced at the plant will also be used to supply the Kaliningrad region and offered in the bunker market in the Baltic. The Baltic LNG plant will get its natural gas via a pipeline from Yamal. Gazprom Neft Marine Bunker sales grow

The bunkering division of Gazprom Neft, Gazprom Neft Marine Bunker, sold about 3.2 million tonnes of oil products in 2013, a 10% increase on its 2012 results. Bunker sales grew by 22% – up to 2.2 million tonnes.

s s e c c u S f o e d a c e D t s F ir AMK Group of Companies

We supply: bunker fuel all types of petrol fuel oil M-100 fuel IFO-380, IFO-180, IFO-30

AMK Group of Companies 86 Podgornaya Street, Murmansk, Russia 183038 E-mail: amkoil@mail.ru I E-mail: amk_gk@mail.ru

Tel/Fax: 007 (8152) 287828 Tel/Fax: 007 (8152) 287337 Tel/Fax: 007 (8152) 286028

Ust-Luga terminal for Transbunker

Transbunker is to build a $50 million oil terminal at Ust-Luga port. Finance for the project includes a $17 million five-year loan from VTB Bank. Construction is expected to take between three and five years. The Transbunker group comprises about 30 companies in Russia and Ukraine. The group owns seven terminals with a total capacity of 340,000m3. It operates at ports in the Russian Far East as well as at Novorossiysk on the Black Sea and at Ukrainian ports.

Big Neva River in St Petersburg

NCL cruises to St Petersburg

NIKO GROUP increases the volumes

Norwegian Cruise Line (NCL) is due to start operating regular Baltic Sea cruises from St Petersburg in May 2014. The daily newspaper Kommersant reports that tourism experts believe the move will make the city more attractive as a calling port for cruiseliners and predict that the project will be a success. Prices start at e824 and NCL expects to attract up 150 Russians on each trip. NCLâ&#x20AC;&#x2122;s move follows several other operators in offering Baltic cruises from St Petersburg. These include St Peter Line, MSC and Princess Cruises.

Russian-based NIKO-OIL DV, having completed the next stage of reconstruction of its terminal in Vladivostok, has increased its monthly residual fuel oil transshipment to 30,000 tonnes. Meanwhile, NIKO Bunker company is now supplying more bunkers to large shipping companies on half-year contracts. In response to growing demand for bunkers in the ports of Vladivostok, Nakhodka, Kozmino and Vostochniy, the company has strengthened its presence there by adding to its fleet. The company now has four vessels in the area, with a total deadweight of 24,000 dwt.

Russian update

The company says it is proud of its entry into the international market, based on the acquisition of bunkering companies in Romania and Estonia. It has also expanded operations in Russia. Bunkering has started in Nizhnekamsk river port and permission has been given to supply in Sochi sea port. That means Gazprom Neft Marine Bunker supplies bunkers in 18 sea ports and 10 river ports throughout Russia. As part of its development programme, the company is increasing its number of oil terminals. In 2013 it bought several assets located in Novorossiysk, including the storage and handling facilities of NovoRosneftService and Novorossiysk oil complex.

Tranzit-DV milestone

Russian bunkering company Tranzit-DV says it recently undertook its largest stem so far with a delivery of 10,000 tonnes of fuel to the containership CMA CGM Don Giovanni while she was in Slavyanka harbour. The operation took 24 hours, during which time 8,500 tonnes of 500 cSt heavy fuel oil and 1,500 tonnes of 180 cSt low-sulphur fuel oil was transferred. The 100,680 dwt CMA CGM Don Giovanni is owned by Germany-based ER Schiffahrt. Tranzit-DV Group provides handling and delivery of oil products, coal and natural gas, bunkering and sea transportation services. Its total sales of bunkers in Slavyanka harbour was 108,318 tonnes in 2013, almost 94% of the market.

World Bunkering Summer 2014

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

www.forumbunkering.ru

Tel:+35725760376Fax:+35725341803 email:info@evrasiabunker.com Internet:www.evrasiabunker.com LimassolCyprus Novorossiysk●KerchStrait●Odessa●Primorsk●St.Petersburg●Kozmino

Russian Far East-based bunkering company Nayada Co Ltd has commenced operations in the ports of Primorsky Krai using a newly acquired tanker. The Zaliv Vostok was built in 2002 at Celik Tekne Shipyard, Turkey, for a Swedish ship owner. Later, the vessel was time-chartered and fitted out by ExxonMobil as a bunkering tanker. The 4,400 dwt Zaliv Vostok has segregated tanks for three separate fuel types. She can pump 1,000m3 of fuel an hour. The ship has bow thrusters and the master noted the tanker’s good manoeuvring ability and high level of system automation, allowing safe and efficient operation. He said: “During the first weeks of service, Zaliv Vostok provided services to vessels of various types and never got any critical comments.” Founded in 1998, Nayada Co Ltd supplies at Nakhodka, Vostochny, Vladivostok, Posjet, Zarubino, Slavyanka and Bolshoy Kamen. The company’s fleet consists of 10 tankers, seven of which are owned by the company. The other three are on long-term charter. In 2013, the company handled about 1 million tonnes of fuel. The company has recently received official certification from classification society Lloyd’s Register, validating the company’s quality management system for bunker supply chains (QMBS), which was implemented in May 2013. The QMBS was established as part of an initiative led by RN-Bunker, the marine fuel arm of Russian state-owned oil giant Rosneft, in order to further its commitment to offering products and services of a consistently high quality to shipowners and operators in the region. It was broadly based on the best practices set in Singapore’s SS 524 standard to ensure that the quality management system is accurately drafted, documented, managed and implemented across the supply chain network. In February 2013, Nayada Co Ltd appointed Cross Keys

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Group as a key consultant overseeing the implementation of the company’s QMBS, which was then completed in May 2013. Cross Keys also acted as an adviser on RN-Bunker’s quality management system. Lloyd’s Register Quality Assurance was then engaged to closely inspect Nayada Co Ltd’s bunker management processes in December 2013, after a six-month period during which the QMBS was operational. Denis Glukhov, deputy director for safety and quality at Nayada Co Ltd, said: “We are delighted to have attained official recognition of the QMBS. Not only does Nayada now have an established system of measures in place to ensure that our company consistently delivers products of the highest quality to our customers but also the certification we have bears testament to its efficacy as a quality management system that brings greater transparency across the board.” According to Oleg Kozlov, service delivery manager at Lloyd’s Register Quality Assurance, Russia: “The inspection process went extremely smoothly in December. Nayada’s quality management system was fully operational when my team visited, and the company was extremely well prepared with a full set of documentation for examination. It has been a pleasure working with Nayada, and I look forward to seeing such exemplary quality standards being adopted across the entire industry in future.” Oleg Micevic, director of Cross Keys Group, commented: “As an advisory partner that has seen this project through from inception to its official certification, we are extremely proud to see how far Nayada’s quality management system has come as a project. Nayada has proven itself to be a bunker supplier that places quality products and service at the top of its priorities, and we hope that the QMBS will continue to enforce the high level of standards the company adheres to.”

Russian update

Nayada deploys new vessel

NIZHEGOROD BUNKER LTD Your reliable bunker supplier in the Volga basin and neighbouring waters offering high-quality fuel at flexible prices. IN PARTNERSHIP WITH ROSNEFT

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Russian update

Russian bunker industry looks at Norwegian LNG progress Olga Bogacheva reports on her recent tour of Norway’s marine LNG sector

he marine fuel market is expected to change in the near future as new regulations come into effect in emission control areas (ECAs). Some experts think that development of liquefied natural gas (LNG) as the most efficient means of environmental protection will lead to a rapid increase in the number of vessels using LNG as fuel. As result, Russian bunkering companies are becoming interested in the practical aspects of LNG handling. To meet this demand, the Russian Association of Marine and River Bunker Suppliers in cooperation with the commercial section of the Royal Norwegian Embassy in St Petersburg organised an educational tour entitled ‘Use of LNG as Marine Fuel. The Norwegian Experience’. Experience of LNG use in the shipping industry is limited, but Norway is widely seen as leading this area. Nikolay Shavrov, representing Innovation Norway, St Petersburg, said: “Norway is the world leader in usage of LNG as marine fuel, with about 50 LNG-fuelled ships in operation and more than 40 confirmed LNG-fuelled newbuilds. Infrastructure for LNG-fuelled ships is quickly developing and today Norway has more than 30 receiving LNG terminals ranging from 100m3 to 3,500m3. Total production from local LNG plants accounts for 450,000 tonnes annually.

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Norway has demonstrated that smallscale LNG production and distribution is competitive as fuel for ships. Although there are well-known challenges connected with LNG usage, like the lack of infrastructure and larger equipment costs, LNG is considered to be the main alternative to traditional fuel oil.” The Russian group included top managers and members of the Association, as well as managers of other businesses associated with the shipping industry and stevedoring companies: Gazprom Neft Marine Bunker, Petersburg Oil Terminal, Transneft-Service, Gazprom Neft Shipping, Lukoil-Bunker, Northern Shipping Company, Eurochim, the Engineering Ship-Building Centre, the Krylovsky Scientific Centre, and others from St Petersburg, Moscow, Archangelsk and Novorossiysk. The group visited several working facilities, including LNG terminals, shipyards and design and educational centres in Bergen and Olesunde, observed a bunkering operation at Halhjem and enjoyed a tour on a LNG-powered ferry. There were meetings with representatives of Norwegian companies pioneering the use of LNG as a marine fuel, including Gasnor, Rolls-Royce Marine, Fiskerstrand Shipyard, Multi Maritime, the Norwegian Centre of Expertise – Maritime, DNV GL and Vard. The general opinion of the participants was that the information gained

helped to clarify their understanding of potential world shipping developments and will be useful for working out of their own strategies. Experts tend to be careful when forecasting LNG availability in Russian ports. Although it is possible to calculate the number of potential customers quite accurately, the construction of the necessary infrastructure is still uncertain. In April, Gazprom announced its intention to take a 15% share of the world LNG market by 2030. This implies large-scale supplies to Asian-Pacific, Southern American and Far Eastern regions. The Baltic LNG project is now making progress and sources in the company confirm that it will be completed. Roman Bogdanov of North-Western Shipping Company says: “LNG marine fuel in our region remains a distant perspective. But there are many remote settlements and port localities here you can reach only by air or boat, thus there is a widespread network of river and sea stations. Local and regional passenger transportation with easily foreseen routes, cargo and passenger traffic may be provided by LNG-powered vessels. This fleet needs corresponding coastal infrastructure, which doesn’t exist currently. We may only be sure that in the city (at a distance of 15 minutes’ drive from the centre) there is an ideal site for the construction of an LNG bunkering and handling terminal, located on the

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“DNV GL confirms that the safety of LNG-fuelled ships is equivalent to the safety of conventionally fuelled ships, as required by SOLAS. Currently, there are 48 ships in operation that use LNG as a fuel, mainly in the DNV GL class. There have been no reported major events, eg fire, explosion, grounding

etc, caused by LNG-fuelled engines or ancillaries on DNV classed vessels. DNV GL data indicates a number of incidents caused by damage or malfunction etc, but this is comparable to the number involving HFO/MDO-fuelled engines and ancillaries. Generally, engine room cleanliness is better on LNG-fuelled vessels than on HFO-fuelled vessels.” We really enjoyed the warm hospitality in Norway, which was rather unexpected given the current political situation, and were treated to a neverto-be-forgotten supper at the Klippfish Academy culinary studio and restaurant. Firstly, the chef (who started his career as an assistant cook on a fishing vessel) demonstrated how to cook four traditional meals using Norwegian cod. This was followed by an excellent meal and wine. Vitaliy Kovalev, president of the Russian Association of Marine and River Bunker Suppliers, summed up the tour: “We are really happy with this event. We hope that it will lead to mutually beneficial commercial contacts between Norwegian and Russian companies.”

Russian update

bank of a ship channel at the intersection of main routes.” The major barrier for expansion of LNG use as marine fuel is the perceived danger of an explosion. Kirill Musteikis, country manager at DNV Maritime, Russia, thinks that this danger is overestimated in Russia. He says:

Innovation

Shaft generator promise Permanent magnet shaft generators “could significantly cut operating costs”

innish supplier of megawatt-class permanent magnet generators, motors and frequency converters, The Switch, says it has received a significant order from WE Tech Solutions for four permanent magnet (PM) shaft generators. The Switch claims: “Coupled with WE Tech’s WE Drive, these PM shaft generators represent game-changing technology for merchant ships to allow them to significantly cut back on operating costs when powering their onboard electric networks.” According to The Switch, permanent magnet technology has been proven in numerous industries and under extremely harsh operating conditions to provide unmatched power density, energy efficiency, design flexibility and operational reliability. Now, it says, shipbuilders and shipowners could achieve real fuel savings by upgrading to PM technology for shaft generators.

“Over the past three decades, the shaft generator has been successfully employed on board ships worldwide. The main advantage is to allow main engines to use cheaper heavy fuel oil (HFO) for electrical power production, thereby significantly reducing the running hours of auxiliary generators,” explains Mårten Storbacka, managing director of WE Tech Solutions Oy. “With the WE Drive variable frequency drive from WE Tech Solutions and the PM shaft generator from The Switch, the ship’s electrical network is generated with the same high efficiency throughout the full speed range of the main engine. This feature is especially important in electrical part loads. The WE Drive also ensures 1mw boost power directly to the propeller shaft to support the main engine when required, thus enabling a low-load optimised main engine” he continues. “These orders show the real need for new solutions to help seagoing vessels significantly lower the costs of operation,

reduce maintenance needs and meet the increasingly stringent emission regulations,” says Mika Koli, business development manager at The Switch. “Together with WE Tech, we can offer an unbeatable package that enables shipowners to start making immediate returns.”

Dynamic trim solution DFDS powers ahead with installation of GreenSteam solutions

anish shipping and logistics company DFDS is to install GreenSteam fuel saving solutions on around 20 further vessels. GreenSteam, a Danish technology company specialising in energy-saving solutions for commercial vessels, says that DFDS made the decision after testing and comparing different solutions for dynamic trim optimisation. The vessels will be supplied with the onboard decision support solution, GreenSteam Optimizer, which provides dynamic trim optimisation. DFDS will also use the GreenSteam Manager solution for performance monitoring of these vessels. GreenSteam says that its “advanced fuel-saving systems” reduce a ship’s fuel consumption by, on average, 4% to 5%. It says that its onboard solution, GreenSteam Optimizer, “continuously

collects a multitude of sensor readings of much higher frequency and quality than those obtained through so-called ‘noon reporting’”. The manufacturer says relations between the vessel’s speed and energy requirements, and the ever-changing internal and external conditions – like load, fuel flow, waves, wind and water depth – are analysed by sophisticated software with a specially developed mathematical model at its core. Trim and draft of the vessel are constantly optimised to give minimal propulsion resistance at all times. The system guides the crew in real time through a touch-screen console on the bridge. GreenSteam Optimizer is designed to react dynamically to changes in the ship’s condition and environment,

making it possible to maximise fuel efficiency. Additionally, the vessel’s and each mariner’s performance can be monitored remotely from shore by the fleet operator via the online browserbased tool, GreenSteam Manager. Daniel J Jacobsen, CEO of GreenSteam, says: “We are delighted that DFDS has chosen our solution. At GreenSteam, we firmly believe that fuel efficiency can be improved by pioneering digital technologies, and help companies in their pursuit of cost efficiencies and a greener approach to business.” GreenSteam has recently secured a $2 million investment from Castrol innoVentures, the strategic innovation arm of the leading lubricant supplier and part of the BP Group, to reinforce and accelerate its growth, as well as achieve further market penetration.

World Bunkering Summer 2014

Wärtsilä’s new 46DF targets high-output market segment

ärtsilä has launched its new Wärtsilä 46DF engine, specifically developed for the high-output market segment, including cruise ships and ferries, LNG carriers and capable of operating on natural gas, heavy fuel oil, or marine diesel oil. According to the manufacturer: “This fuel flexibility enables reduced operational expenses, compliance with the most stringent emission standards, and full redundancy to ensure uninterrupted operation.” "With this newly launched product, Wärtsilä has raised the industry standard even higher, since it offers simultaneously drastically lower specific fuel consumption, both in gas and diesel fuel mode, remarkably higher output, and extremely attractive life-cycle costs compared with any other alternative

currently available on the market," says Lars Anderson, vice-president, 4-stroke sales, Wärtsilä Ship Power. The Wärtsilä 46DF comes in two different versions to meet specific customer needs. Wärtsilä says: “The high efficiency version offers drastically lower fuel consumption with a cylinder power of 1045kW, while the high power version is capable of a cylinder power of 1145kW with excellent engine thermal efficiency. For LNG carrier applications, the Wärtsilä 46DF can offer fuel savings of as much as 20 tonnes/day compared with the first introduced DF engines. With up to 14 fewer cylinders installed, the overall life cycle installation costs are significantly and positively impacted by roughly $1,000 a day.” When operating in gas mode, the Wärtsilä 46DF engine is already compliant with the International Maritime Organization’s (IMO) Tier

III regulations without any secondary exhaust gas purification systems. When fuelled by gas, the sulphur oxide (SOx) and carbon dioxide (CO2) emissions are notably reduced, and smokeless operation is attained. In liquid fuel oil mode, the Wärtsilä dual-fuel engines are fully compliant with the IMO Tier II exhaust emission regulations set out in Annex VI of the MARPOL 73/78 convention.

Innovation

New dual-fuel engine

Cruise ship energy check New software optimises hotel department’s power use

talian classification society RINA has launched a real-time tool for monitoring and optimising the hotel power demand on cruise ships. According to RINA, InfoSHIP EM expected to produce hotel load energy savings in the order of over 10%, “thus generating significant annual cash savings in fuel costs for a typical large modern cruise ship”. Paolo Moretti, head of the marine business line, RINA Services, says, “Around half the energy used by a modern cruise ship is for the hotel services. So if we can bear down on that, we can produce substantial cost savings for cruise operators. InfoSHIP Energy Management is a tool that continuously monitors all the energy users in the hotel services and compares actual use with target values. A simple traffic-light graphic display alerts the ship’s staff to higher than target energy use, allowing

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them to take remedial measures such as load shedding or load shifting.” InfoSHIP EM is part of the InfoSHIP Energy Governance suite developed by RINA and software house IB Software & Consulting. It collects live power consumption data from the hotel services, AC systems, accommodation and lighting systems and galley and laundry services. Target values are set by calculation at the design or installation stage and then continuously updated by operational feedback and trend analysis. Target values are optimised according to the season and area of operation, the operational mode, either in port or at sea, and the time of day. Moretti says: “This system will pay for itself in under a year and is simple to install. What it does is focus the engineers and technical department on the actual electrical power demand of hotel services. It allows them to make

adjustments to operations or pre-set temperatures for the air con, for example. InfoSHIP EM gives the cruise ship operators the information they need to make sensible energy-saving decisions, such as getting laundry done outside peak time, or changing air-conditioning patterns. It also provides real data to inform decisions on retrofit or updates to onboard equipment.” Maurizio Ricci, IB chairman and CEO, says: “This addition to the InfoSHIP Energy Governance suite is an example of how well-targeted and researched software can make a real difference to operators. Ease of use and reliability in operation are two factors we design into our software so that users get real results as their crews and staff enjoy using the systems.”

Innovation

Glycerol-diesel progress New emulsion technology claimed to provide lower operational costs and improvements to emission

S-based SeaChange Group has developed patented glycerol-diesel emulsion technology, Eco-Hybrid Fuel, that it says will provide lower operational costs and improvements to emissions (SOx, NOx, PM), without requiring any engine modifications. Working closely with Maine Maritime Academy, and funded by grants from the Department of Energy, National Science Foundation and the Maine Technology Institute, SeaChange Group says that it is focused on the development and commercialisation of low-cost diesel fuels with lower emissions for marine, rail and industrial power applications. Currently, a pilot processor is under construction, which will provide sufficient quantities of fuel for testing in workboats in 2014. Sales to early adopters are planned for 2015.

Boats belonging to the Maine Maritime Academy (MMA) are due to start testing by early June and will continue through the winter, testing the fuel’s performance in conditions such as cold weather and rough seas. Later this year, SeaChange Group LLC plans to look for investors who can help bring the fuel to the commercial market in 2015. The development of Eco-Hybrid Fuel already has close associations with the academy. The initial concept for the fuel, which uses glycerol – an odourless, sweet-tasting sugar alcohol compound that is a by-product of biodiesel production – was first developed in 2009 by Bob Ring, a marine engineering graduate from the Maine Maritime Academy. Testing for the fuel will be conducted at the school’s new marine engine testing and emissions laboratory in Castine.

The fuel recently received a patent from the US Patent and Trademark Office, and was invented though a collaborative process involving graduates and employees of the academy.

DNV GL’s ‘exergy’ tool Measuring ‘exergy’

NV GL says that it has developed a novel approach that overcomes challenges of assessing onboard energy efficiency in a consistent manner. As a result, the classification society says, priorities for improvement can be determined accurately. In a new report, DNV GL answers the question: How can a ship manager identify the biggest sources of useful energy that are currently being wasted on their ships? “Ship operations and environmental legislation have become more complex, and it has become increasingly difficult to assess or even define efficiency with consistency and accuracy,” said Rune Torhaug, Director, Strategic Research & Innovation, DNV GL. “We have therefore revisited the basic and universal laws of thermodynamics to develop a methodology based on ’exergy’, sometimes called available energy, which

is a metric for describing the maximum useful energy that can be derived from a process, component or system.” The methodology can be adjusted to suit newbuilds still in the design phase or operating ships, and it is designed to help managers make the most out of their Ship Energy Efficiency Management Plans. Using both on board measurements and the DNV GL modelling suite COSSMOS, energy losses throughout the ship including hull, propulsion power train, machinery and electrical systems are quantified and ranked. Even difficult-to-capture processes such as throttling and fluid mixing can be incorporated. The report includes an analysis of a waste heat recovery system. These complex systems can easily contain 70 components. “Through our exergybased methodology, the true sources of useful energy losses were identified,

revealing a picture far from self-evident. Subsequent optimisation in DNV COSSMOS yielded an increase in fuel savings that halved the payback time of the system,” said George Dimopoulos, senior researcher and project manager of this position paper. A second study examined the fuel pre-processing sub-system for the marine fuel cell on board the offshore supply vessel Viking Lady. This resulted in a solution capable of a remarkable 50 per cent reduction in exergy losses. When the main engine of an aframax tanker was analysed using operating data in combination with COSSMOS modelling, the true sources of losses were identified with greater accuracy than a traditional energy analysis, says Dimopoulos. “In fact, the standard energy analysis failed to identify the turbocharger as being the second largest contributor to exergy loss.

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Legal

Waste issue Bunkers as waste has been back on the agenda in the Dutch courts

he issue of bunkers as waste was back in the Dutch courts in April with a fresh ruling that the country’s environment and transport inspectorate was wrong to order the destruction of bunkers. The ruling may come as reassuring news for bunker market players who feared that destruction of bunker fuel as waste would make it worthless. Recent guidance handed down by the European Court of Justice (ECJ), which rules that off-spec fuel oil does not have to be handled as waste, was hailed as a triumph of common sense that will be welcomed by all suppliers of fuel oils and bunkers, Dutch law firm AKD said in January when the ECJ judgement was announced. Shell Nederland and Shell Belgium were disputing a ruling by the Dutch environmental authorities (ILENT), which wanted to force them to handle a parcel of diesel oil rejected by a Belgian client as waste, when in fact Shell intended to up-blend the fuel to specification for selling on. The latest ruling, given by the Dutch State Council, involved a stem delivered in Rotterdam in 2012 to a vessel on charter to Stena Weco – a joint venture between Stena Bulk and Weco. Carel van Lynden, a partner at AKD, says the decision in the Freja Crux case confirms the ruling of the ECJ in the

World Bunkering Summer 2014

Shell case. Whereas the Shell case concerned diesel oil for cars, the Freja case concerned high-sulphur fuel oil; in the Shell case, there was a proven unintended mixing with another product; in the Freja case, it was unclear how the styrene and dicyclopentadiene came in. But the mere fact that the owner wanted to discharge for the purpose of getting his money back meant that the fuel could not be qualified as waste. The recent case thus applies the ECJ decision in a wide and general manner. The literal interpretation of EU waste regulations has resulted in odd situations. Bunkers with an aluminium/ silicon content of 82 (80 being the 2005 industry standard), which were refused by a vessel, could only be debunkered by a licensed waste collector. The normal practice in the Netherlands until then would have been debunkering by the supplier, blending with a parcel with a lower aluminium/silicon content and resale on the market. There has even been a case where the master of a vessel wanted to reject high-sulphur fuel because low-sulphur had been ordered, and where, because the master wanted to ‘discard’ the perfectly sound fuel, it qualified as waste. Oil fraud

The International Maritime Bureau (IMB) has been warning that shipowners are facing new dangers from criminal

gangs making spurious oil fraud claims. The ‘victims’/fraudsters try to extort money from owners by bringing action against them for failing to deliver cargoes of oil they allegedly own. Such scams were previously confined to West Africa, but now appear to have spread to other countries, as a case reported to the IMB recently has shown. It involved a vessel that trades regularly into the Arabian Gulf. A claim has been lodged against the shipowner to recover over $50 million, the full value of a consignment of oil that the claimant alleged was loaded onto the vessel in Russia but never delivered to the designated discharge port in the Arabian Gulf. Moreover, they apparently had documents to prove this, and a local court in the region issued a warrant of arrest against the vessel named in the claim. The case put the shipowner in a dilemma as he was reluctant to risk taking the vessel into the jurisdiction where the warrant was issued for fear that it would be arrested and that litigation to get it released would follow. However, he was obliged to enter the region under the terms of the vessel’s charter party. Defaulting on this would mean incurring financial penalties. Another snag in the case was that the documents presented to the court to obtain the arrest warrant appeared authentic and confirmed that the vessel

Legal 88

did load the oil at the Court ruling means rejected bunkers in Rotterdam and other Dutch ports will not be considered to be ‘waste’ Russian port, although it had not called at that load port. IMB, which is assisting the shipowner and has seen the documents, is warning other owners to be on their guard. It notes that what stands out in this new variation on the West African fraud is the fact that the documents produced seem sufficiently credible to convince courts of the claim. “This may be the first of many other similar claims to be lodged against shipowners around the world if organised crime is involved, and it is important that inforfinanced by ITIC under its debt colOdfjell fine mation on similar scams is collated,” lection cover. It involved a sale and Singapore-based Odfjell Asia II Pte and IMB said. purchase broker, which claimed that one of its senior crew members has “If we can build a picture of what it had introduced principals and perpleaded guilty in a US federal court in is happening, it may be possible to formed the original groundwork for Hartford, Connecticut, for violating the identify the perpetrator or at least a deal. The broker claimed that it had Act to Prevent Pollution from Ships. inform shipowners what to watch out then been cut out at the last minute “The defendants violated environfor,” it adds. and replaced by another broker, which mental laws that protect our oceans, the IMB is asking shipowners who have had simply “tied up the loose ends”. world’s fisheries and marine life, from experienced or have suspicions of this The sellers denied that they had any harmful pollution,” said acting assistnew type of crime to contact them so commitment to the first broker. ant attorney general Robert Dreher on that a suitable response can be coorITIC says: “A dispute of this nature making the announcement. “Today’s dinated. IMB offers a range of services is likely to involve no more than a conviction ensures they will be held to assist shipowners in determining the couple of witnesses and an expert accountable with a stiff criminal fine, authenticity of trade documents, one giving evidence on each side. If, at contribute to conservation efforts in of which includes detailed analysis by £177,163, the cost of winning was coastal areas of Long Island and subspecialist document checkers. expensive, then losing would be even mit to strict monitoring. We hope this more so. Under the English legal syssends a strong message to the shipping tem, a losing party is responsible for industry that committing environmental Broker litigation its opponent’s costs. The solicitors crimes at sea will not be tolerated.” A survey of London solicitors by estimated that the likely additional “Pollution of our waters will not transport industry insurer ITIC has liability if the broker lost would have be tolerated,” said Deirdre Daly, US highlighted the high cost of litigation amounted to £139,687. This would attorney for Connecticut. “Shipping for shipbrokers and others seeking have brought the total costs liability companies are on notice that violating judgment in the English courts. faced by the broker to £316,850.” American environment laws will result ITIC gave a panel of London soliciITIC says that, although few cases in federal prosecution and puts at risk tors – all of whom had previously been proceed all the way to trial, and their business interests in this country. instructed on cases involving ITIC memmany will settle at an early stage, Crew members who ignore these laws bers – a hypothetical claim scenario often without the need for formal may also face incarceration. Although involving a broker that had been cut legal proceedings, it is important these illegal discharges of oily waste out of commission. The solicitors were that brokers have a sufficient level occurred in international waters, we are asked to estimate the costs that the of cover to fund the matter going gratified that a quarter of the $1.2 milbroker would have to pay to take the to litigation. ITIC’s debt collection lion penalty will fund improvements and matter to court. The average estimate cover pays not only for the broker’s protection of the Long Island Sound, a of the costs was £177,163. own costs but also for the potential vital economic and recreational resource The claim scenario given to the liability to opponents. with many unique wildlife habitats.” solicitors was based on actual cases

World Bunkering Summer 2014

The United Kingdom Hydrographic Office has launched a new large-scale chart covering the busy shipping waters of Vietnam, Indonesia and the Malacca Strait. Routeing Chart 5141 is the latest addition to the UKHO’s popular chart series

s well as covering a very busy shipping area, Routeing Chart 5141 has been compiled in a larger scale than the UKHO’s existing charts and features more detailed and up-to-date meteorological and currents information. This includes a new method for displaying information on currents, which has been designed by the UKHO to allow at-a-glance recognition alongside greater accuracy and resolution. Routeing Chart 5141 includes a number of features to support safe and efficient voyage planning: • Larger scale – 1:10,000,000 scale to provide greater resolution and detail than smaller-scale routeing charts. • High-density currents – arrows and wind roses are shown with increased density over smaller-scale routeing charts, providing a higher-resolution representation of the data. • Up-to-date data – new information on currents is derived from forecasts and readings taken between 2000 and 2010, alongside meteorological information newly sourced from the Met Office. • Currents grid – data on currents is displayed on a grid to provide a more accurate and consistent geographic representation of the data.

World Bunkering Summer 2014

Nick Dekkers, product manager at the UKHO, commented: “The UKHO’s routeing chart series has proven to be very popular as a voyage planning tool, so it made sense to develop a new chart that covered the busy shipping waters of Vietnam and Indonesia, including the Malacca Strait. “Routeing Chart 5141 will support safer shipping operations by delivering greater accuracy, detail and more up-to-date information, which will give vessels a better overview of the likely navigational conditions. When used in conjunction with Admiralty Standard Navigational Charts, this new high-detail routeing chart will allow vessels to operate at the highest standards of safety. “What’s more, by providing shipping companies with more detail and greater accuracy of data, they have the tools to make better use of sea conditions to plan fuel and timeefficient passages, which will help them to achieve cost savings.” The publication of Routeing Chart 5141 is part of a major enhancement of the UKHO’s chart coverage of Vietnam and its suite of navigational charts and publications for Vietnamese waters. This includes new Electronic Navigational Chart (ENC) coverage

Equipment & Services

UKHO’s South-East Asia routeing chart for Vietnam – available now in the Admiralty Vector Chart Service, new and updated paper charts covering Vietnamese waters and updated publications covering tidal data, radio signals and sailing directions.

Equipment & Services

Cold-ironing connections

South Korean shipping company Hanjin has ordered high-voltage shore power connection equipment for 11 of its containerships that call at US West Coast ports. Hamburg-based SAM Electronics has announced that it will supply its SAMCon shore power facilities to the vessels in order for them to meet strict clean air regulations enforced by the US state of California, which include the ports of Los Angeles, Long Beach and Oakland. A new, state-wide regulation, effective as of 1 January 2014, states that shore-side power plug-ins are mandatory for all container and refrigerated ship fleets, as well as cruise ships. The rule requires that at least 50% of fleet vessel calls must shut down their auxiliary engines, and run their vital onboard systems by plugging into shore-side power. Vessels are also required to reduce their total at-berth emissions generation by at least 50%, and by 80% by 2020. The SAMCon facility consists of a 40-foot container that houses a range of electrical components designed to handle up to 7.2MVA transferable power at 6,600 volts, a mediumvoltage switchboard, control and monitoring facilities, and a customised interface between the ship and shore. An extendable cable reel drum for direct connection to shore-based power sources is also included. “With SAMCon, we are able to meet growing worldwide demand for the restriction of noise, carbon dioxide and other noxious emissions traditionally generated by vessels while berthed in the confines of heavily populated ports,” said Reinhard Swoboda, senior vice-president of SAM Electronics.

Cold corrosion test kit

UK-based asset control and protection technology company Parker Kittiwake says it has developed a portable onboard cold corrosion test kit. It says that its Cold Corrosion Test Kit monitors specific levels of corroded iron in used cylinder oil in less than five minutes per test. The company says that, as growing numbers of ship owners and operators favour new-generation engines to reduce fuel costs and meet environmental requirements, the problem of cold corrosion escalates. Operating conditions, high sulphur fuels, sub-optimal lubricant feed rates and using lubricant oils with too low a base number can all lead to the formation of sulphuric acid within the cylinder. This in turn causes acidic corrosion to the cylinder liner and can potentially lead to costly repairs for the ship owner. The average cost of a cylinder liner replacement, for example, is approximately $150,000. The severity of this corrosion can be monitored and corrected for by measuring the amount of corroded iron in scavenge drain oil. Parker Kittiwake says that its new, patented, onboard cold corrosion test provides accurate results in a matter of minutes, whereas other onboard tests can take hours. It also negates the need to have samples sent to a laboratory to be analysed. As a result, ship owners can obtain an accurate picture of the level of corrosive elements present in cylinder oil almost instantly, potentially preventing critical damage before it occurs. The new test is also said to improve significantly upon current tests, which only give a total iron figure, irrespective of it being metallic or corroded iron. Parker Kittiwake says that when the kit is used in conjunction with ferro-magnetic analysers, such as its own LinerSCAN or the Shell Analex Alert, the exact wear conditions within the cylinder chamber can be monitored. Parker Kittiwake business development and marketing manager Steve Dye says: “Similar tests currently available on the market not only take significantly longer to provide a result but can only measure the combined quantity of both metallic and corrosive wear. Having separate, accurate, measurements of these distinct elements can help ship operators make informed decisions and take fast, appropriate action against deterioration. “With the addition of the Cold Corrosion Test Kit, the Parker Kittiwake offering now allows ship operators to monitor specific levels of both metallic and corroded iron in used cylinder oil, giving them a comprehensive overview of the operating conditions within the cylinder chamber.” The Cold Corrosion Test Kit is designed to be a simple to use, colour-matching test. The test alters the colour of an oil sample, indicating the concentration of nonferrous iron compounds. The resulting colour is matched up to a reference colour wheel that provides a measurement of the corrosive wear present in the sample.

Port of Longbeach. Cold ironing is becoming normal practice in US ports

World Bunkering Summer 2014

A recent conference on the Northern Sea Route, organised by the Tranzit-DV Group of Companies, with the participation of the Ministry for Development of the Russian Far East, covered a wide range of aspects affecting Russia’s shipping and bunkering industries

he conference, A new look at maritime transport between Europe, Asia and America, was held in the city of PetropavlovskKamchatsky in March. It examined Russia’s development of the Northern Sea Route from America and SouthEast Asia to Europe along the country’s Arctic coast as an alternative to the route via the Suez Canal The conference was attended by more than 70 delegates from Russia, South Korea, Norway, Italy, Japan, China, Singapore and other countries. They represented a wide variety of sectors, including ship operating, energy, banking and cargo insurance.

World Bunkering Summer 2014

The discussions focused on two main subjects: prospects for the development of the Northern Sea Route (NSR) and the potential of the port of Petropavlovsk-Kamchatsky as the starting point of the NSR. According to the head of the NSR administration, Alexander Olshansky, the volume of goods transported annually on the NSR has increased by 190 per cent in the past three years. Between 1995 and 2010, the annual traffic was fairly steady, in the order of 2 million tonnes, but cargo volumes rose to 3.3 million tonnes in 2011 and to 3.8 million tonnes in 2013. The growth of transit cargo – using the NSR as a through route – was especially

rapid. Before 2009, transit traffic was around 100,000 tonnes. By 2010, the figure had grown to 145,000 tonnes, and by 2013 to almost 1.2 million tonnes. The administration is forecasting continued cargo growth over the next few years. In another presentation, Igor Polchenko, president of the Tranzit-DV Group, told delegates about the 20 years of experience the holding company has had in supplying fuel to the northeastern regions of Russia. He said that “right now” is the time for Russia make use of the opportunity to develop the NSR, which had rarely been used before, and to make it part of the world’s transport and logistics system. Polchenko noted that the factors contributing to the NSR’s development were the melting of Arctic ice and the steps taken by the Russian government to liberalise prices for icebreaking services to vessels. However, to develop the NSR, he added that it was necessary to build and develop bunkering hubs with up-todate multimodal production and logistics complexes in the ports at each end of the NSR: Slavyanka, PetropavlovskKamchatsky and Murmansk. Tranzit-DV has already implemented such a project in Slavyanka and this March began work on another hub in Petropavlovsk-Kamchatsky. In fact, just after the conference finished, the first bunkering took place at Petropavlovsk.

Review: Tranzit conference

Conference success

Review: Tranzit conference 92

On 14-15 March, Tranzit-DV’s tanker Leda-DV supplied bunker in Avachinskaya Bay to Western Bulk’s vessel Aliki P. Development of a new transport corridor would, according to Polchenko, also necessitate the establishment of a new type of container/road trans-shipment centre at ports along the route that could accept ships of different tonnage without the costs associated with the dredging of ports. Yuri Zubar, deputy prime minister and transport minister of the Kamchatka Krai region, commented: “In the matter of establishing a hub port in PetropavlovskKamchatsky, our intentions not only match those of the organisers of this conference but they are absolutely identical. “The Kamchatka Krai government has been working on [the NSR] for years, since for our region and the Far East, as well as for the entire Russian Federation, this is a point of economic growth. If this project is implemented, it will give a huge positive effect.” Anton Verozubov, head of operations at ocean shipping and container transportation provider APL, which has partnered with Tranzit-DV, said: “APL’s first bunkerings in the Russian Far East were in 2010 and were attempts to understand how the market works. Those operations did not lead directly to us moving into the region on a continuing basis. However, last year, primarily thanks to the partnership with Tranzit-DV, with the risks and expectations clear to us, we were able to start ongoing operations.” He added that APL hoped its partnership with the Tranzit-DV Group of Companies would continue and that the experience that APL has gained with Tranzit-DV would facilitate the building up of “a stable scheme that will meet all the challenges put before us. We hope that we are here to stay”. Verozubov commented that the NSR was a “complex issue”. He said: “I think that the idea of establishing a dedicated line in the Arctic is possible in the form of a public-private partnership. It seems interesting to me, and the idea of making a bunkering hub provides an additional advantage for this development.” Wong Se Meng, general manager of Singapore-based Hin Leong Trading, noted: “In order to become a successful bunkering hub, the following three

components are necessary: the location, support of the authorities and the ratio between the quality and quantity of bunkering.” He expanded on his points, saying: “Regarding the location, I think the geography of the port of Petropavlovsk in the NSR is ideal, and it will satisfy those who start travelling along the NSR and those who return from it. As to the support: I've met many representatives of the authorities here, so I don’t think that this will present a problem.” Wong stressed: “I think, for every company that wants to take bunkers, it is important to have an option. The quantity, quality and the time of fuel delivery are important. After all, time is money for a ship-owner and we cannot wait a day or two to take bunker. “Russia has the ability to organise fast bunkering with good-quality fuel and in the required volumes.” Petr Popov, director of Gazpromneft Marine Bunker Co’s Far Eastern Branch, said: “First I want to begin with our partnership with Tranzit-DV Company. In 2008, our companies entered into an agreement on trans-shipment. Our relationship is developing. Talking about Slavyanka, the volume of our trans-shipment is constantly growing at the Vostokbunker oil storage facility. We can say that we work in tandem: bunkering is made with our participation, and we use the fleet of the Tranzit-DV Group of Companies. “With regard to Kamchatka,” Popov added, “if there were to be a hub here, it would be interesting not only for us; it would be interesting for all bunkering companies. Naturally, we will not remain on the sidelines, we will invest money here and make efforts to develop Kamchatka in the context of our business.”

World Bunkering Summer 2014

Review: APM

Spreading the word As part of its programme to engage more with the wider shipping industry IBIA recently hosted two successful seminars, one in London and the other in Singapore

ery much in keeping with in keeping in with IBIA current agenda, its first forum was titled “Qualifying Quality”. Held immediately before the 6th Chemical and Product Tankers Conference in London 10th March the event comprised a seminar and drinks reception titled Bunkers: . About 50 shipowners attended the forum which was aimed at providing shipowners with practical guidance on how to reduce the risk of taking low quality fuel. It was an opportunity for the marine fuel industry to explain to its customers how it is working to get it right and deliver value for money. Four expert speakers explained some of issues the surround the bunker quality and provide guidance on how to address the issues when things do not go to plan. Nigel Draffin, technical manager, LQM Petroleum Services spoke on the importance of testing in delivering the quality required. Michael Green, global technical manager – Bunker Fuel Testing, Intertek Lintec, ShipCare Services went into detail on testing. Then maritime arbitrator and mediator Trevor Harrison went through the legal options available when things go wrong. Finally Bob Thornton, marine technical director, World Fuel Services gave “A supplier's view of what really happens”. Thornton noted that WFS had seen an increase in both the frequency of bunker quantity

World Bunkering Summer 2014

and quality claims, and the number of tonnes bunker buyers claim have not been delivered but he pointed out that increase should be seen against a background of high fuel prices and a difficult economy. He pointed out that claims related to only 1.5% of the 27 million metric tonnes WFS sold in 2013 and less than 0.5% of the fuels delivered on behalf of WFS were subject to registered quality claims in 2013. A similar range of issues was covered at IBIA's half-day forum held at the Asia Pacific Maritime 2014 event in Singapore on 21 March. IBIA Chairman Simon Neo gave a presentation which highlighted the challenges associated with delivering sufficient low sulphur fuel once new restrictions came into force next and 2020. But he raised quality issues, particularly concerning blending and also flash point issues and the presence of cat fines. Reinforcing concerns on quality DNVPS’s Chief Operating Officer Asia, Middle East and Africa Rahul Choudhuri told delegates that the testing company had issued 60 alerts last year, the highest number ever. He pointed to an increasingly complex fuel quality mechanism as well several other challenges

facing the bunkering industry. The global nature of fuel means problems can be in any port. There was increased blending to meet required sulphur limits and more careful planning is needed. For example owners have to take into account availability challenges and may soon have to cope with a new ECA in China? Responding to a question from World Bunkering, Douglas Raitt, Chairman, IBIA Asia Branch, Singapore, said that if scrubbers take off in big way that will help ease the off-spec problems caused by blending down to the low sulphur limits. Blending would again be matter of fine tuning fuel for compatibility with vessel machinery requirements. IBIA chief executive Peter Hall said that both forums had been highly successful and that similar events would organised in the future.

International Bunker Conference

IBC focuses on 0.10% This year’s International Bunker Conference concentrated its attention on the impending new ECA sulphur limit

ore than 160 delegates gathered at Scandic Copenhagen Hotel for the 35th International Bunker Conference on 2-4 April. This year, they had a very clear purpose, wanting an authoritative update on the upcoming 2015 regulations – and, of course, to network. The conference kicked off with a visit to one of OW Bunker’s bunker tankers. The visit included an introduction to the advanced Coriolis Mass Flow Meter and a visit to the bridge. The first day of the conference was rounded off with a lively welcome reception at the Scandic. Recent IBCs have focused on the milestones in the implementation of MARPOL Annex VI. This year’s focus was on 1 January 2015 and the 0.10% sulphur cap in emission control areas. On 3 April, conference chairman Robin Meech set the scene in his opening speech and, among other open questions, asked what level of compliance could be expected. He was followed by Jan Fritz Hansen, deputy director-general of The Danish Shipowners’ Association, who in his speech raised concerns about the unpredictable enforcement of regulations. He also touched upon the lenient handling of offenders. Roger Strevens of Wallenius Wilhelmsen Logistics also focused on this in his presentation on ‘The Trident Alliance,

a shipping industry initiative to push for more robust enforcement’. Søren Christian Meyer of OW Bunker presented his view as a supplier on whether they would be able to supply the necessary quantities of low-sulphur products. He stated that this will probably not be a problem. Switching to marine gas oil will, in many cases, be the preferred alternative, but scrubbers and liquefied natural gas are also options. Using gas oil on engines designed to burn heavy fuel has its challenges, such as viscosity, cylinder lubrication etc plus the risk of low flashpoint. Charlotte Røjgaard of DNV Petroleum Services, Kjeld Aabo of MAN Diesel & Turbo and Torbjørn Lie of Wärtsilä discussed these. Scrubbers were part of the final day’s agenda. It became clear that there are a

lot of scrubber projects in the pipeline and this technology could play a significant role in a not too distant future. Håkon Bjørn Thoresen of DNV GL explained the process of certifying scrubber plants. He said that more than 50 systems are on order or had been delivered. Jesper Arvidsson of MAN described the Ficaria Seaways scrubber project. Friday’s presentations also included an update from the Marine Environment Protection Committee; a presentation by Bob Thornton of World Fuel Services on a paper by CIMAC, the International Council on Combustion Engines, to guide the bunker industry on the interpretation of sulphur testing and the consequences; and a presentation by Johannes Grove Nielsen of law firm Bech-Bruun on the outcome of two cases related to the EU waste directive.

World Bunkering Summer 2014

Greek owners get set to open their doors to the world at Posidonia

here are many reasons for writing “Posidonia 2-6 June” in your diary. One is that the industry – globally and in Greece – is in an upbeat mood again. Now is the time to expand and renew contacts and pick up new ideas – all things Posidonia excels at. As the event’s organiser notes: “2013 saw Greek shipowners placing a record number of orders, estimated at 25% of the global order book, with shipbuilders remaining upbeat as to future newbuilding investments funded by Greek interests.” It quotes figures from Newsfront, Greek Shipping Intelligence, showing that the country’s shipowners committed upwards of $13 billion to newbuilding orders for 275 vessels of more than 24.5 million dwt and increased the dwt total on order for Greek interests by 364%. The organiser says that Posidonia will play host to the most extensive range of shipyards, marine equipment manufacturers and exhibitors covering all aspects of the maritime industry in the exhibition’s 48-year-long history. “The world’s top shipbuilding nations are vying for a prominent position,” said Theodore Vokos, project director at Posidonia Exhibitions SA. He pointed to scale of the bi-annual gathering, saying: “Few events can match this scale of international buyers. In 2012, the stands of more than 1,850 exhibitors attracted

World Bunkering Summer 2014

over 18,500 buyers from 92 countries. Posidonia 2014 is an opportunity for all players in world shipping to meet and review challenges, opportunities, trends and innovations with the owners of more than 4,000 vessels approaching 260 million tonnes carrying capacity.” This year, there will be three new national pavilions at the Metropolitan Expo venue, Athens. Hong Kong makes a comeback after a 10-year absence, Turkey returns after eight years and Georgia will also be promoting its maritime services. There will be more on offer specifically for those in the bunkering industry this time. The organiser says that the oil and gas industry is determined to make a major impact with an enhanced presence of oil majors, bunkering specialists and traders and lubricants suppliers, such as Saudi Aramco, Emirates National Oil Company (ENOC), Chevron Marine Products, Lukoil Marine Lubricants, Gulf Oil Marine, JX Nippon Oil & Energy Europe, KPI Bridge Oil, ECO Lubricants, Baluco SA, joined by Aegean Marine Petroleum, Avin Oil, Elinoil, Eteka SA, Cyclon SA, SEKA SA and many more. This year will also see more conferences and seminars. The demand for presentation and conference slots has been so great that additional seminar rooms are being built: “Since we introduced the conferences and seminars programme, we have seen appetite grow exponentially and we are delighted with

Preview: Posidonia

Confidence returns the strong demand for 2014. We will fit in as many events as possible and the current schedule is already available on our website for registrations,” said Vokos. Posidonia 2014 is sponsored by the Greek Ministry of Shipping, Maritime Affairs and the Aegean, the Municipality of Piraeus, the Hellenic Chamber of Shipping, the Union of Greek Shipowners, the Greek Shipping Co-operation Committee, the Hellenic Shortsea Shipowners Association and the Association of Passenger Shipping Companies. One innovation underlines the determination of Greek shipowners to welcome the global industry to their home port. In an unprecedented move, the prestigious, members-only Piraeus Marine Club, founded by Greek shipowners in 1967, will open its doors to non-members during Posidonia 2014, giving delegates the opportunity to visit a historic venue where many business deals have been sealed. PMC is also the perfect venue for events, supported by full audio-visual facilities and serving breakfast, prix fixe and à la carte lunch. “During Posidonia Week, the Piraeus Marine Club will be frequented by its 500 members, representing shipowners, financial institutions, classification societies, service providers, brokers and law firms, providing a perfect networking platform,” said George Gourdomichalis, PMC president.

Company news

COMPAÑIA ESPAÑOLA DE PETROLEOS S.A.U. (CEPSA) The energy group’s marine division is going from strength to strength

EPSA is a 100% IPIC (International Petroleum Investment Company) company. CEPSA is an integrated energy company, operating at every stage of the oil value chain, with more than 11.000 employees. It is engaged in petroleum and natural gas exploration and production activities, refining, the transport and sale of crude oil derivatives, petrochemicals, gas and electricity. CEPSA is Spain’s fourth largest industrial group in terms of turnover, and has been in the market for more than 80 years. Thanks to its flexibility and ability to adapt, CEPSA has become a benchmark company in its sector in Spain. Through progressive internacionalization of its activities, it also has business interests in Algeria, Brazil, Canada, Colombia, Panama, Peru and Portugal and sells its products all over the world. CEPSA’s marine fuels activity began in 1930, supplying marine fuels for vessels, produced in the Tenerife refinery. Today, CEPSA is the first bunker company in Spain. CEPSA’s bunker activity is focused on supplying marine fuels in most of Spain’s ports (mainly the Canary Islands, Strait of Gibraltar, Barcelona and Huelva), Portugal, and Panama. It is respectful of the environment and complies with the most rigorous standards and EU requirements. CEPSA’s wide range of marine fuels are supplied by an efficient pipe, truck or barge service, following the strictest quality standards, such as double-hull vessels. In total, CEPSA operates 17 barges. Aside from maintaining a leadership position in these markets, CEPSA is also always on the lookout for opportunities to expand its international bunkering activities at ports across the world, offering our clients a perfect combination of expertise and enthusiasm. For instance, in the first half of 2014, CEPSA will start bunker trading activities in Fujairah and Khor Fakkan in the United Arab Emirates, with the target of being well established in the market by the time the IPIC refinery in Fujairah starts up in 2018. The refinery will produce 1.8 million tons of fuel oil. CEPSA manufactures a full range of marine fuels at its refineries in Tenerife, Algeciras and Huelva, adapted to market needs and in accordance with international regulations. CEPSA has earned an excellent reputation in the market based on safety, service, quality, versatility and quick response. It operates continuously – 24 hours a day, 365 days a year – in order to satisfy the needs of its growing customer base. CEPSA’s full range of products

CEPSA marine fuels activity in Spain

Main Spanish ports. CEPSA share. Total demand: 11,4 MT/y CEPSA sales share: 50,8% CEPSA Storage capacity: 717 Mm3

Vigo 0.1 MT/y 49%

Barcelona 0.7 MT/y 51 km3

52%

Valencia 0.2 MT/y

Algeciras 2,7 MT/y 310 km3

70%

Leyend

Gibraltar 3,8 50km3

Port MT/y

30%

91%

56%

Tenerife 0,7MT/y 70 km3

Bunker demand

MT/y

Huelva 0.1 MT/y

49%

100%

Ceuta 0.6 MT/y

km3

no.barges

Storage capacity CEPSA share

78 km3

Source: 2013 – estimation of market based on monthly statistics from Spanish port authorities

CEPSA marine fuels activity in Panama

Panamá demand. CEPSA share. Total demand: 3,4 MT/y CEPSA share: 16% Storage capacity: 110km3

15%

17%

Leyend Bunker demand Port MT/y %

km3

no.barges

Storage capacity CEPSA share

Source: 2012 – estimation of market based on statistics from port authorities of Panama

CEPSA Head office Avda. del Partenón 12, 3D 28042 Madrid Tel: +34 91 337 6000 Fax: +34 91 337 6027 E-mail: bunker@cepsa.com www.cepsa.com Canary Islands + Spanish Mainland Ports Areas +34 91 337 8712 +34 91 337 6142 +34 91 337 7362 +34 91 337 6111

Other Ports: +34 91 337 6952 +34 91 337 6715

CEPSA Panamá, S.A. Calle 50 Torre Dresdner, Piso 6º Panamá República de Panamá Tel: +507 214 3314 Fax: +507 214 8300 E-mail: bunkers.panama@cepsa.com

Gibraltar Strait Area: +34 91 337 6508 +34 91 337 6496 +34 91 337 7527 +34 91 337 6715 +34 91 337 6255

World Bunkering Summer 2014

Zarubino port included in Slavyanka bunkering hub

n 2013, Zarubino port joined the Slavyanka bunkering hub, created by the Tranzit-DV Group Ltd. In March 2014, the Tranzit-DV holding company was granted permission to start trial bunkering of vessels up to 400m long with up to 16m draught in Zarubino seaport. The first bunkering took place in Zarubino on 10 April, when the tanker Vladimir Vysotsky, owned by Tranzit-DV, bunkered the Evergreen Group’s container carrier Ital Contessa with 4,500 tons of fuel oil. To mark the significance of this event for the Khasansky district and the Primorsky region in general, Tranzit-DV Group Ltd organised a welcoming party for the vessel crew. The party was attended by Zarubino urban settlement head Mikhail Tagunov, deputies from the Khasansky Duma, and officers from Tranzit-DV Group Ltd. Vessel master Ewald Thaden noted the high quality of service during bunkering. He emphasised that he would notify his management about this in his report, and expressed hope for further cooperation. According to Tranzit-DV Group Ltd’s vicepresident, Sergey Zhidkov, it was decided to include Zarubino port in the Slavyanka

bunkering hub as increasing demand from international freight corporations made it necessary to expand the number of bunker supply points. According to Zhidkov, there are plans to add three more anchor points for bunkering alongside the existing one in Zarubino. In order to ensure fast and high-quality servicing of vessels, Tranzit-DV is in the process of opening an agent office in Zarubino. This expansion of the bunkering hub will have a positive impact on the area’s social and economic outlook. For instance, bunkering a vessel similar to Ital Contessa will contribute between RUB2 million and RUB2.5 million to budgets at all levels, including the local one. Servicing vessels also improves the employment situation. For example, as a result of the hub expansion, there are plans to recruit 16 new staff to form exchange crews for two new vessel servicing tugboats. Lastly, having such large vessels calling at the port offers other business development opportunities for suppliers, including fresh water, catering, procurement services and accommodation for crew members while ashore.

Tagunov pointed out that local entrepreneurs were already prepared to supply drinking as well as technical water and a large variety of food products (including agricultural products grown in the Primorsky region) to vessels calling at the port. Further information

The Evergreen Group is a Taiwan-based conglomerate of shipping and freight companies and other associated service companies. It ranks among the world’s five largest marine container carriers. l Ital Contessa is a container carrier, built in 2006 (length 335m, width 42m, displacement 101,000 tons). The carrier came to Zarubino from the US, bound for the ports of SouthEast Asia and the Middle East. l Slavyanka bunkering hub was created by Tranzit-DV Group Ltd in 2013. It forms part of the development of the Far Eastern bunkering hub system. l The first bunkering in the Far Eastern bunkering hub system was in the port of Petropavlovsk-Kamchatsky in March 2014. l Kamchatka port plays an active role in the bunkering of vessels proceeding along the Northern Sea Route ⏏ l

Company news

TRANZIT DV NEWS

For more information, contact: 13 Uborevicha Street, Vladivostok, 690091, Russia Tel: +7 (0) 423 2491199 Fax: +7 (0) 423 2481128 E-mail: tranzit@tranzitdv.ru Website: www.eng.tranzitdv.ru

World Bunkering Summer 2014

Company news

YugBunkerService With its own storage and loading terminals and 13 bunkering barges, YugBunkerService is one of the leading fuel providers in southern Russia

ugBunkerService is a rapidly developing group of companies providing bunker services at the ports of the Black and Azov sea, and at the number of internal and river ports in Russia. The group supplies a full line of top-grade marine fuels (a wide range of IFO and MGO) and engine oils to sea-going and river vessels. YugBunkerService has been in bunkering for 17 years. Since launching our business in 1996, our priority has always been to meet and satisfy the requirements of our clients, providing superb service and high-quality fuel products at fair price. Years of hard work in the field have given us invaluable experience and the opportunity to establish a well-developed infrastructure for delivery, storage and bunkering of marine fuel. As a result, we have grown to become one of the leading fuel providers in southern Russia. Having our own marine storage and loading terminals, plus a fleet of 13 vessels with deadweight ranging from 200 to 5,700 MT, we are flexible and capable of coping with the demands of all our clients, from small independent carriers to large shipping lines. Being one of the biggest and most reputable bunker companies in the regional market, YugBunkerService has long-term and mutually beneficial relationships with large Russian, Turkish, Ukrainian and Greek shipping companies, as well as with a number of bunker traders operating at the Black and Azov sea.

YugBunkerService is a member of the Russian Association of Marine and River Bunker Suppliers, and of the International Bunker Industry Association. Recently we expanded the number of ports that we service at and currently we are operating bunker deliveries at the ports of Rostov-on-Don, Azov, Taganrog, Yeisk, Kavkaz, Temryuk, Taman, Saratov, Syzran, Samara, Volgograd and Astrakhan.

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

Key information • Offices in Rostov-on-Don, Taganrog, • • •

•

Yeisk and the port of Kavkaz Fleet of 13 own bunkering barges complying with loading and supply regulations Our own storage facilities, giving flexible bunker delivery options Our own terminal at the port Temryuk, providing safe fuel loading on tankers of up to 5000 DWTs Fuel deliveries compliant with MARPOL and SOLAS regulations.

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

from leading Russian oil refineries Well-developed and extensive supply network; Best prices for our clients Equal high-quality services at all our ports of delivery Widespread compliance of our barges and loading facilities with all legal and environmental requirements.

For more information, contact: Rostov-on-Don Tel: +7 (863) 242-44-86 +7 (863) 242-44-87 +7 (863) 242-44-88 E-mail: rostov@ybunker.com Yeisk Tel: +7 (86132) 2-60-64 E-mail: yeisk@ybunker.com Port Kavkaz Tel: + 7 (86148) 4-43-47 E-mail: kavkaz@ybunker.com Website: www.ybunker.com

World Bunkering Summer 2014

Market leadership is our goal

azpromneft Marine Bunker, operator of Gazprom Neft’s bunkering business, sold about 3.2 million tons of marine fuel in 2013 - a 10 percent increase on 2012. Its retail sales increased by 22% - up to 2.2 million tons. The company holds a leading position at the Russian bunkering market with a share of 18.6%. One of the main events of 2013 for Gazpromneft Marine Bunker was its entry to the international market, following the acquisition of bunkering companies in Romania and Estonia. The first foreign asset of Gazpromneft Marine Bunker was the Romanian Marine Bunker Balkan S.A. operating in the Black Sea port of Constanta. The company was acquired in March 2013 from Unicom Holding, in August it was renamed into Gazpromneft Marine Bunker Balkan S.A. The company operates two bunkering vessels, a floating terminal with a capacity of 4 thousand tons and two pontoon wharfs. The company also operates a shore tank owned by Oil Terminal Constanta with a capacity of 1.5 thousand tons for diesel-fuel oil storage. The Black Sea port of Constanta with a cargo turnover of more than 40 million tons enters top 10 of the largest European ports and is the third largest port in the Black Sea region. The port is located at the trade route from Europe to Asia and is an important part of the strategic transportation way via the Danube. Marine fuel is being supplied from Gazprom Neft’s refineries located in Russia and Serbia. In August 2013 Gazpromneft Marine Bunker acquired Estonian bunker company AS Baltic Marine Bunker from AS NT Marine. The company owns a bunkering vessel with

a dead weight of 2.5 thousand tons for refuelling with both dark and light marine fuels. The tanker operates in the ports of Tallinn and Paldiski and in the roadstead of these ports. The port of Tallinn cargo turnover in 2013 was over 28 million tons, it processed about 7 thousand vessels (including passenger ones). In 2013 Gazpromneft Marine Bunker also expanded its presence in Russian ports launching bunkering services at the river port of Nizhnekamsk and becoming the first bunker operator in the Black Sea region to obtain a permit to operate at Sochi seaport. Gazpromneft Marine Bunker currently operates 9 regional representative offices and 6 subsidiaries. The company has strong positions in all Russian key marine and river ports. Today it is the most extensive bunkering operator in the Russian Federation, with a major presence in 18 marine and 10 river ports. The company continued to develop its terminal capacities. Last year it acquired the assets of Novorosnefteservice and Novorossiysk Oil Transshipment Complex in

Novorossiysk for storage and handling of marine fuels sold by the company in the Black Sea region. In summer 2013 Gazpromneft Marine Bunker added a new vessel to its own fleet for work in the Black Sea ports. The company's bunkering fleet now consists of its own eight refuelling vessels. The fleet meets the requirements of international conventions, and has licenses to carry out cargo transportations by sea as well as for loading and unloading of hazardous freight in sea ports. Company tankers can operate in any geographical region. Gazpromneft Marine Bunker provides bunkering services to over 250 customers, most of them are foreign companies. The company works with all major Russian river and sea shipping companies. The company plans its further development according to the long-term strategy which envisages a large-scale project of using liquified natural gas for marine refuelling. The company’s international activity main objective is to become a significant player at the global bunkering market. ⏏

Company news

Gazpromneft Marine Bunker Ltd

Gazpromneft Marine Bunker Ltd Bolshoy Prospect 80 block R, Vasilevskiy Ostrov, St-Petersburg, 199106, Russia Tel: +7 (812) 449-49-70 Fax: +7 (812) 449-46-28 E-mail: marinebunker@spb.gazprom-neft.ru bunkers@spb.gazprom-neft.ru www. marinebunker.gazprom-neft.ru

World Bunkering Summer 2014

Company news

Neftehim Bunker Jsc Excellent business relations with suppliers guarantee a flexible approach

eftehim Bunker Jsc is an affiliate of the well-known and reputable oil product trader and bunker supplier, Neftehim Ltd, which has been operating since 2000. We maintain a reputation for reliably supplying the highest standards of services and excellent quality of products. Because of our excellent business relations with the major Russian oil companies, as well as the independent oil producers, we are able to be very flexible in the market and we can always offer the best prices to our clients.

Stable relations

With growth in mind, we now have our own bunkerbarge, Severaynka, which was reconstructed on the Vyborg shipyard in accordance with MARPOL regulations. Its cargo tanks have a total capacity for 1,000 mt of HFO and 260 mt of MGO. Surveyor testing

Quality control is a matter of great importance to us, so before a bunker delivery to the vessel, we regularly engage a surveyor to test our fuel. In choosing Neftehim Bunker Jsc for your bunker supplies, you will always find outstanding levels of service, quality and efficiency. ⏏

Thanks to these extensive and stable relations, we always have a full range of residual products available. Furthermore, our marine gas oil is fully compliant with the latest international industry standards. Our company has access to the fleets of five different barging companies, giving us flexibility and efficiency in our bunker delivery operations.

For more information, contact: Neftehim Bunker Jsc. Office 503 Bolshoy Avenue V.O. 80, lit. R St Petersburg 199106 Russia Tel: +7(812) 332 2363/ +7 (812) 942-3140 Tel/Fax: +7(812) 332 2364 E-mail: main@nh-bunkering.ru Website: www.nh-bunkering.ru

Saudi Shipping & Maritime Service (Tranship) Over the past three decades, leaading oil products supplier Tranship has built up a strong reputation as a reliable operator

stablished in 1979, Saudi Shipping & Maritime Service – generally known as Tranship – is a leading oil products (bunker) supplier and trading company. Based in Jeddah, Tranship has successfully chartered out its future strategic direction and has established a reputation as a reliable supplier, with services rendered promptly at all times. Professional service

The company’s dedicated team of managers is ably supported by highly qualified and experienced staff, who are extremely motivated and devoted to working innovatively in the best interests of our customers. We have been licensed since we became established to operate as bunker suppliers at Jeddah, maintaining an excellent reputation among buyers, brokers and shipowners all over the world. So far, we 100

have successfully distributed more than eight million tons of bunker fuel to clients’ ships over the past three decades. We currently have two oil tankers: MT Marwah-7 (4,999 tons DWT) built in 1991; and MT Marwah-6 (2,261 tons DWT) built in 1992. Both oil tankers are classed under the Japanese Classification Society (NKK). The tankers are equipped with the latest accurate electronic controlled dynamic blenders on board for blending all grades of CST to meet the exacting requirements of our valued customers. ⏏

For more information, contact: Saudi Shipping & Maritime Services (Tranship) 3rd Floor, Al Jawhara Building Madina Road, Baghdadiya Area, P.O. Box 7522, Jeddah 21472 Kingdom of Saudi Arabia. Tel : + 966 2 642 4255 (4 lines) Fax: +966 2 643 2821 E-mail: bunker@tranship.com www.ssmsc.com

World Bunkering Summer 2014

Company news

Forum Ltd. Providing direct access to high-quality fuel oil, 24/7

orum Ltd. supplies bunker fuels in the port of Saint-Petersburg. The company entered the market in 2011 and has proved to be a reliable supplier of bunker fuels, providing clients with fuel oil produced by Antipinsky refinery, an independent modern refinery with monthly production capacity of over 200 000 metric tons. Our main product is straight run fuel oil complying with ISO-F-RME, ISO-F-RMG and Regulations 14 (1) and 18 (1) of MARPOL 73/78, Annex VI. We supply MGO (DMA) 0,1% sulphur from the leading refineries in Russia as well. The company has several contracts with leading shipping companies to ensure smooth and secure supply. Product transshipment is carried out on the most up-to-date terminals of the region. Quality is the corner stone of bunker business, therefore, in collaboration with world-acknowledged surveying companies, we ensure the highest quality of the products we deliver. All our products are compliant with ISO 8217:2010(E) standard.

Since its beginnings of 2011, Forum has earned the trust of customers and partners by supplying high-quality products at competitive prices and on flexible payment terms. The company ensures a consistent supply of fuel oil, working on a contract basis as well as the spot market. We provide our services for a vast number of major companies in the shipping industry, as well as traders 24 hours a day, 7 days a week. ⏏ Our competitive advantages are: • direct access to high quality fuel oil; • products conform with ISO8217:2010 (E)

plus the later amendments; • 24/7 services;

For more information and bunker enquires please contact us at: Forum Ltd. Office 411, Barochnaya str. 10/1, St. Petersburg, 197110, Russia Bunker trader: Aleksey Miloradov Phone: +7 (812) 449-65-91 Mobile: +7 (921) 757-11-33 Yahoo ID: aleksey.miloradov E-mail: trade@forumbunkering.ru www.forumbunkering.ru

Morskoy Trust LLC A fuelling company that is going from strength to strength

stablished in 2007, Morskoy Trust LLC fuel supply company is based in the city of PetropavlovskKamchatskiy in Russia. Its main activities are fuelling of fishing vessels operating in the Sea of Okhotsk and the Bering Sea, wholesale and retail sale of oil products in the Far Eastern sea ports, and oil transportation. The company operates 11 vessels, comprising eight oil carriers and three fuel vessels, with a total deadweight of 47,550 tons. All the company’s vessels are ice-class ships capable of operating in any navigation area throughout the year. They meet all the requirements of the Russian Register of Shipping and the latest requirements of MARPOL 73/78 – International Convention on Marine Pollution. World Bunkering Summer 2014

All vessels are equipped with heating cargo systems, which makes it possible to transport any oil products and they can carry several types of various oil products at one time. During in the 2013 navigation our tanker Svatoy Petr sailing via Northern Sea Route. Morskoy Trust holds membership with the

Russian Association of Marine and River fuelling companies. It has undergone strong growth in recent years, due to its constantly increasing number of customers, highly qualified staff and reliable business partners. ⏏

Morskoy Trust LLC Kamchatskiy region Office 206, 37 Vladivostokskaya str Petropavlovsk-Kamchatskiy Kamchatskiy krai, 683024, Russia Phone/fax: 8(415-2) 23-07-63, 23-29-04 E-mail: tanker-41@mail.ru

101

Company news

Island Oil Ltd

sland Oil Limited was established in June 1992, in Limassol, Cyprus as a physical supplier and trader of marine bunkers. The company was quickly embraced by the industry and was entrusted by blue chip clients from local and international shipping markets, building a strong reputation as a reliable partner-supplier. For many years, Island Oil has been the spearhead of what has eventually evolved as a group of companies with Island Oil (Holdings) Ltd, being the holding company. Headquartered in Limassol, Island Oil is the flagship of a group of companies mainly active in the marine and domestic fuels sector. The company currently has physical supply stations under Island Petroleum Limited in Cyprus and Romania, share-holding in a fuel depot in Ukraine and additional offices for international trading in Odessa, Piraeus, Limassol, Constantza, Nice and Dubai. The company is a recognized player in the global bunker market. This has been achieved through a client-oriented approach, strong financial management, controlled growth and a highly skilled and trained team of professionals.

Above all, we supply... Peace of mind The owned and operated oil-tankers are managed in-house by Petronav, accredited for ISM and ISPS by Germanischer Lloyd. Island Oil has an accredited quality system that is continuously monitored and updated to ensure that all services and products offer the highest standards of quality and reliability. Our commitment to quality is reflected in our ISO 9001:2008 certification by Germanischer Lloyd for the physical and trade supply of marine fuels and lubricants and the provision of ship-agency services. Island Oil Ltd is a member of IBIA, CYMEPA and The Cyprus Shipping Chamber. ⏏

Address: 145-149 Chr. Hadjipavlou Str., Christiel Building, 3036 Limassol - Cyprus P.O.Box 50663, 3608 CY E-Mail: bunkers@island-oil.com Tel: +357 25 889000 Fax: +357 25 745466 Web Site: www.island-oil.com

Nizhegorod Bunker Ltd Going from strength to strength

izhegorod Bunker Ltd, the official representative of the oil company Rosneft, specialises in fleet bunkering in the areas of Volga and the adjacent basin. The company is extremely optimistic about the new navigation season, its reason for this being the strengthened relations with Rosneft and an ever-growing number of clients. “The task of expanding our client data base is constantly being worked on,” says Vladimir Nikiforov, general director of Nizhegorod Bunker. “At the moment we are not only successfully working with Rosneft, but have also concluded 200 new contracts for bunker supply, including one with Volzhskoye Parohodstvo. By the start of the navigation season we had received pre-payment for 3,000 tons of bunker fuel from our partners. This method has been used by our company for the first time and we see it as both a successful way of doing business and a demonstration of trust from our customers.”

102

The fleet consists of a park of flatbottomed tankers with a total capacity of 300 tons and self-propelled bunkering vessels with the capacity of 600-1,500 tons. The company also owns a stationary oil station. The total of bunkering fleet tonnage is more than 7,000 tons. In the recent years the company has increased its’ clientele from the NorthWest region of Russia. The bunkering spots in Nizhniy-Novgorod, Rybinsk and Sheksna are very handy and attractive to the shipowners of the North-West Shipping Company. “We always aim for an honest partnership,” says Mr Nikiforov. “The customer should be confident that he is buying exactly the type of fuel he is paying for. As a result of this strategy we have strengthened our position in the North-West region and won the trust of the shipowners from the capital. In the near future we plan to open bunkering spots at the mouth of Kama and Nizhnekamsk.” ⏏

Vladimir Nikiforov, general director, Nizhegorod Bunker

Nizhegorod-Bunker Ltd. Per. Boynovskiy, d. 22, Nizhniy Novgorod 603024 Russia tel/fax: +7 831 432 58 22 tel/fax: +7 831 432 26 77 tel/fax: +7 831 432 57 89 e-mail: nbunker@mail.ru www.nbunker.ru THE ONLY OFFICIAL MAGAZINE OF

World Bunkering Summer 2014

Company news

OMV PETROL OFISI One of the largest listed industrial companies in Turkey

MV Petrol Ofisi A.Ş., which is one of the largest listed industrial companies in Turkey, is built on 71 years of experience with its 1,000 employees. OMV Petrol Ofisi is Turkey's leading fuel products distribution and lubricants company with 2,272 filling stations, 1 lubricant plant, 10 fuel and 3 LPG filling terminals, 25 airport supply units and over 1 million m³ storage capacity. With a broad dealership network the company operates Turkey's most extensive retail fuel sales network system. OMV Petrol Ofisi is a major physical bunker and lubricant supplier at all Turkish ports. As well as being a physical supplier at Turkey, company provides a global trading service with its extensive supplier network all over the world. Petrol Ofisi Marine team with its expert staff trained in marine sector and its high performance fuel and lubricants offers specialized and customer focused services for the shipping companies using the market knowledge, marine expertise

and purchasing power. Being proud of offering high quality marine fuels with its huge logistical support and marine experienced team whom are reachable on 7 days and 24 hours, Petrol Ofisi Marine Team establishes long lasting relationships with its clients and help them to minimize their bunker expenses by implementing of an effective fuel purchasing management. ⏏

Tel: +90 212 329 15 55 Fax: +90 212 329 17 01 Email: marine.sales@poas.com.tr

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Posidonia 2-6 June 2014

Metropolitan Expo, Athens Greece

it's a great deal The International Shipping Exhibition

Organisers: Posidonia Exhibitions SA, e-mail: posidonia@posidonia-events.com

www.posidonia-events.com

Training

Safe switching A new training programme from Videotel addresses the challenges involved in changing fuels at sea

K-based distance learning provider Videotel has launched a new training course, The Practical Management and Switching of Fuels. The course, it says, is designed to ensure that switching to low-sulphur fuel when operating in Emission Control Areas (ECAs) avoids the serious operational problems that, at best, impair a ship’s performance and, at worst, cause major damage to engines. “In the highly competitive world of carrying cargo, shipowners face a number of serious issues,” explains Nigel Cleave, CEO of Videotel Marine International. “High fuel costs and strict emission controls directly influence the way a vessel’s fuel systems and engines are operated and managed. Having a thorough understanding of the challenges presented by using heavy marine fuel oil and switching to low-sulphur fuel when operating in ECAs is essential and this new course from Videotel addresses that need.” He notes that, since 2010, many of the busiest shipping areas of the northern hemisphere have been designated as ECAs and require a switch from highsulphur to low-sulphur fuel, a process that “requires very careful management”. The Practical Management and Switching of Fuels course is designed to provide a practical guide to what is required of bridge and engine room officers and engineers to process fuel

World Bunkering Summer 2014

oil from the bunker tank to the engine, monitoring every stage of filtering and purification to ensure that the most efficient combustion is achieved, cleanly and economically. The course addresses MARPOL Annex VI and covers marine fuel oils; bunkering; storage and settling tanks; centrifuge; heaters and filters; fuel combustion; fuel switching; planning; and temperature and viscosity control. It is available on DVD, Videotel on Demand (VOD), VOD online and e-learning computer-based training (CBT). All are accompanied by a PDF workbook, which highlights key learning points. Meanwhile, Videotel says it also has an extensive portfolio of training for the liquefied natural gas (LNG) sector. Working with experts across the globe – BP Shipping, Shell, Maersk and the Society of International Gas Tanker and Terminal Operators (SIGTTO) among many others – it has created a comprehensive package of training covering the essentials required when operating in this important market. Cleave says: “Twice as many LNG carriers are operating today compared with five years ago, leading to a growing demand for quality training in the sector. With an evolving market and constantly developing new technologies, even those familiar with the sector face new challenges. “Most projections are that cargo volumes will almost double by 2020

from today’s level of around 250 million tonnes,” he explains. “This new landscape will call for a whole new skills set, and with its extensive experience of working with industry and regulatory bodies, Videotel is the best placed to service those needs.” Starting with the Videotel Tanker Familiarisation Distance Learning Course, the candidate is then invited to select from a number of courses to further develop their knowledge and skills. The Liquefied Gas Tanker Safety Training Course provides both trainees and officers experienced in other sectors with tanker-specific technical knowledge to serve on an LNG carrier, and to be assigned specific duties relating to cargo or cargo equipment. The LNG Training Course provides the knowledge required by officers serving on LNG tankers in accordance with SIGTTO’s competence standards. Not only is the course designed to provide the underpinning knowledge required to achieve the appropriate level of competence according to the rank of user, but it may also be used to gain the knowledge required by higher ranks should the officer wish to seek promotion. Following on from these core programmes, Videotel offers a range of LNG courses designed to deal with the very specific requirements of this demanding industry. Further information on the courses can be found at www.videotel.com

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IT Contra-rotating propeller analysis HydroComp adds to its vessel speed and power analysis software

S-based software house HydroComp has added a contra-rotating propeller (CRP) system analysis module into its industrystandard software for the prediction and analysis of vessel speed and power performance, HydroComp NavCad. The company says that published comparisons of the efficiency between standard fixed-pitch propellers (FPP) and CRP propellers typically indicate that CRPs are between 3% and 10% more efficient. It is often presumed that the efficiency gains of a CRP are due solely to recovery of energy lost in the rotational flow of a single propeller. While recovery of rotational energy is partly responsible for the efficiency gains with a CRP, much of the gain actually occurs because of improved inflow and the reduction in propeller blade loading (with its corresponding change in RPM and blade area ratio). HydroComp says that it has evaluated an extensive catalogue of published studies that made direct comparison between FPP and CRP propellers. From the results of this evaluation, a new CRP performance prediction method was developed around a system-level model using only the representative definition of one propeller in the set to determine the overall system performance.

106

The intent of the new CRP method is to reasonably predict the overall performance of a CRP system, and is not intended to provide a means to design or size the specific details of the blade sets. HydroComp’s new CRP (simple) model includes proper consideration of: • Thrust and torque division for proper individual blade loading. • Reduction in loading owing to accelerated induced velocities. • Increased efficiency owing to improved inflow and recovery of rotational losses. • Reduced hull efficiency owing to rudder interaction. HydroComp NavCad is claimed to be a powerful software for predicting vessel resistance and propulsion. With growing emphasis on fuel consumption and efficiency, naval architects and marine engineers are continually looking to reduce drag using optimised hull forms. NavCad’s drag reduction tool provides insightful quantitative metrics for evaluating how a change in hull parameters can be implemented to reduce drag and increase performance and efficiency. The drag reduction analysis can be applied to any NavCad project. Once the initial hull parameters have been entered, the predicted resistance can calculated using one of NavCad’s 36 resistance methods. This resistance

curve is known as the basis resistance. The drag reduction analysis will investigate the influence of a small change in a given hull parameter (eg length, beam, displacement) on the resistance basis. The hull parameters are then organised by influence, with the most significant parameters to reduce drag presented at the top of the table. The company notes that, because many parameters are dependent on speed, a beneficial change at a higher speed may actually be detrimental at lower speeds (eg transom area for planning vessels). So, in order to analyse drag reduction at lower cruise speeds and higher top speeds, NavCad’s drag reduction analysis allows the user to enter primary and secondary operating profiles.

World Bunkering Summer 2014

Next issue

World Bunkering AUTUMN 2014 issue SPECIAL FEATURES Independents How are the independents faring in a challenging market? We look at the different strategies being employed by both the big players and the smaller regionally active independents.. Fuel Quality This remains a controversial area. What does â&#x20AC;&#x153;off specâ&#x20AC;? really mean and how will the industry cope with having to deliver more grades? Our report get some answers. Lubricants The need to switch fuels when entering and leaving emission control areas (ECAs), as well the continued requirement for slow steam have presented the lubricnat manufacturers with tough challenges. We look at the different ways they have responded. GEOGRAPHICAL FOCUS Middle East This region remains volatile politically while continuing to be crucial in the oil and bunker markets. Our update looks at the effect of the resumption of Iranian supplies and also whether the impending 0.10% sulphur requirement for ships sailing into ECAs is likely to affect the Middle East market. Far East Singapore is still the World's No.1 bunker hub. We look at what is happening there and also look around the region and ask where China is going as a major bunker supplier.

2014

Summer

Focusin

qualig on ty IBIA tak

es the lea

World BUNK

REGULAR FEATURES Interview, Industry News, Environment, Testing, Risk Management, Innovation, Legal News, Equipment and Services, Diary

Summer

RUSSIAN UPDATE News, Views, Analysis

ERING

EVENT PREVIEWS SMM Hamburg, Seatrade Middle East Maritime InsIde thI

s Issue:

Innovation - Are sha ft genera Mediterran tors gam ean rounde-changing up - con Oil majors technolo fidence - adjustin gy? returns g to cha nging tim es

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2014

Diary

22 - 23 May

Platts 5th Annual European Bunker Fuel Conference, Rotterdam, Netherlands Hear from the IBIA, ESPO, BIMCO, Intertanko and the European Commission as they give their perspective on the challenges and opportunities faced. Discover how the bunker fuel industry is adjusting to keep up with evolving fuel regulations.

9 - 12 September

SMM Hamburg, Germany SMM is the leading international forum of the maritime industry. Every two years, the representatives of the shipbuilding and marine equipment industries from all parts of the world meet in Hamburg, present innovations and forward looking technologies, and set the course for future success of the industry.

smm-hamburg.com/en

www.platts.com/conferencedetail/2014/pc490/index.

2 - 4 June

LNG Bunkering North America, Vancouver, Canada Ship operators, LNG providers, ports, technology specialists and regulatory bodies will gather to discuss crucial progress on the LNG bunkering front. The proigramme will include a series of regional case studies and feasibility reports from North American leaders along with presentations from LNG bunkering pioneers in Europe.

www.lngbunkeringnorthamerica.com

2 - 6 June

RESCON 2014 is the comprehensive business gathering of bunker professionals focused on the Red Sea and Gulf region, this year including North and East Africa, India and Pakistan.

rescon.iirme.com/#sthash.1kUfCJP0.dpuf

8 - 10 October

Marintec Russia, St. Petersburg

Posidonia, Athens, Greece Known as the world’s most prestigious shipping event, Posidonia 2014 will see more than 1.800 exhibitors with over 18.500 visitors from 92 countries attending. The week-long event, which will start on June 2 and run to the 6th June 2014 at the Metropolitan Expo Centre in Athens, will attract attendees from across all aspects of the shipping industry.

www.posidonia-events.com

17 - 20 June

LNG Carrier Shanghai, CHINA LNG Carrier & FSRU Conference is the FIRST event in China to address hot issues in LNG carrier/regasification vessel building and FSRU development potential.

www.lngcarrierfsru.com

The first Russian specialized Exhibition and Conference Offshore Marintec Russia dedicated to development of continental shelf infrastructure will take place in Saint-Petersburg.

www.offshoremarintec-russia.com

14 - 17 October

18th Singapore International Bunkering Conference and Exhibition (SIBCON) 2014, Singapore As various regulatory and commercial developments continue to impact the bunkering industry, SIBCON 2014 will once again bring you a high-powered speakers line-up, and unrivaled networking opportunities. This 19th SIBCON will once again bring together the industry from around Asia and the world, with in excess of 1,600 delegates expected at the Resorts World Sentosa venue.

www.sibconsingapore.com

18 - 19 June

Shipping in Changing Climates: Provisioning the Future, Liverpool, UK Climate change poses great challenges for the shipping sector. It is a key element of consumption and production systems worldwide but what we consume and how goods for consumption are provisioned will both affect and be affected by climate change.

www.maritimelogisticsandenergy.com

28 - 30 October

SeaTrade Middle East, DUBAI Now firmly established as the region’s leading shipping event, the 2012 event welcomed 7,065 attendees across the 3 day exhibition and conference, whilst 242 exhibiting companies took part in the event from 33 countries over a net exhibition space of 4,338 sq m - a 7% increase on 2010.

www.seatrade-middleeast.com

18 June

IBIA Seminar and Drinks Reception: Qualifying Quality, Liverpool, UK One of the biggest challenges the shipping industry is facing is qualifying the quality of the bunkers purchased. The quality of bunker fuel has long been a source of concern to shipowners and charterers and the issue is becoming ever more prevalent as sulphur thresholds reduce.

www.ibia.net

24 - 25 June

11th Annual Bunker & Residual Fuel Oil Conference, Houston, Texas, US Focuisng on fuel quality, supply, and market dynamics, Platts 11th Annual Bunker & Residual Fuel Oil conference aaims to providethe latest information on the state of the industry and the key drivers for bunker and residual fuel oil, the "bottom of the barrel."

www.platts.com/conferencedetail/2014/pc422/index

12 - 14 August

Marintec South America 2014, Rio de Janeiro Marintec South America – Navalshore, acknowledged as the strategic event for the maritime value chain in Brazil, provides opportunities for your company to drive new revenue with a highly qualified audience. www.navalshore.com.br

108

28 - 30 September

RESCON 2014 – The Red Sea and Gulf Bunkering Conference, Dubai, United Arab Emirates

4 - 6 November

IBIA Convention, Hamburg The title and focus of the convention is “Clarifying Quality and Compliance” and the week-long package of events will feature many guest and keynote speakers, along with training courses, discussion on IBIA working groups and of course many networking opportunities for you and your business. We round the convention off with a boat tour of Hamburg Port, so join us aboard for lunch and drinks.

www.ibia.net

23 - 25 March 2015

The 9th International FUJCON 2015, Fujairah, United Arab Emirates FUJCON enjoys international recognition and attendance from 46 countries covering diversified sectors of the bunkering industry. Recognised as an international service anchorage, Fujairah is among the world’s top three bunkering locations & a global hub for both oil storage and oil product supply. It is an opportunity to meet with leading fuel oil/bunker producers, traders, shipowners & managers, terminal operators, refiners, classification societies, maritime lawyers, consultants and bankers.

www.cconnection.org/event/FUJCON/2013/resources/CC14276_ FUJCON2015_Postcard_FA_WB.pd

World Bunkering Summer 2014

GAZPROMNEFT MARINE BUNKER LTD. Tallinn

OUR GEOGRAPHY

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Moscow reﬁnery Samara

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Volgograd Rostov-on-Don Astrakhan Port Kavkaz Ola Taman

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High quality marine fuel complying with ISO 8217-2010

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Tel: +7 (812) 449-49-70 Fax: +7 (812) 449-46-28 www.marinebunker.gazprom-neft.ru E-mail: marinebunker@spb.gazprom-neft.ru bunkers@spb.gazprom-neft.ru

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ISO certiﬁcation (9001:2008) Certification area OIL PRODUCTS SALES AT BUNKER MARKET