Americas News
OW Bunker Expands Physical Operations in North America, Eyes Distillate Sales
OW Bunker on Thursday announced in an emailed press release the expansion of its physical operations in North America with the launch of physical distribution operations in Los Angeles and Long Beach.
"Expanding our operations into the ports of Los Angeles and Long Beach is a natural evolution as we look to grow our presence and support for our customers within North America," said Adrian Tolson, Regional Manager, OW Bunker North America.
The bunker supplier said the potential of the bunker market in the area was "significant", partly because Los Angeles and Long Beach are the largest container ports in North America.
The area is also likely to have a key supply role in the anticipated increase in distillate fuel sales, it said, and it was "establishing a presence to ensure customers are well prepared and have access to quality products ahead of the 2015 0.1% Emissions Control Area (ECA) regulation."
Impending 2015 ECA Regulation
"With the impending 2015 ECA regulation, it is vital that customers have a clear strategy and plan for the procurement of quality distillates to ensure compliance," said Tolson.
"Our role is to actively work with customers to implement this, guaranteeing supply in the locations where they need them and in the most cost effective and risk averse way."
OW Bunker said that from April 2014 it will take storage at the VOPAK storage terminal in Los Angeles, and it will work in close cooperation with barging company Westoil Marine Services to supply a full range of products including RMG380 (HSFO and LSFO), RMK500, RMK700 and MGO at both berths and anchorages.
The supplier also has a 5395 dwt, 2008-built double-hulled bunker barge, David Fanning, which has pumping rates averaging 715 mt per hour.
"While we are starting to see the green shoots of recovery within the shipping industry and related sectors, there are still challenges particularly within the unique North American market," Added Tolson.
"However, we believe that fuel distributors with the financial strength, infrastructure and ability to innovate have a critical role to play in helping owners and operators to take these challenges in their stride and capitalize on the inevitable opportunities that change always brings. Not just from a liquidity perspective, but by calibrating our physical operations to ensure quality and value at every step of the fuel supply chain.
"This is the foundation of our global physical distribution strategy, and how we will work with customers in our new operation in LA and Long Beach."
OW Bunker launched its physical bunker supply division in its U.S. operation in 2012, with initial operations in the Gulf of Mexico.
In January it announced a deal with UNIPEC America to supply at Houston's Battleground Oil Specialty Terminal (BOSTCO).
Earlier this month OW Bunker confirmed it plans to launch an initial public offering (IPO) in Copenhagen.
