Indian Bunker Quality, Services are Underestimated, Says Supplier

Ashok Sharma, COO, Matrix Bharat, says the Indian bunker market has the potential to experience substantial growth

The quality of bunkers and the availability of bunkering services in India are currently underestimated by ship operators, says Ashok Sharma, COO at bunker supplier Matrix Bharat, who spoke to Ship & Bunker following last month's 3rd Annual Conference on the Outlook for Bunkering and Marine Lubricants in India.

With some 35,000 to 40,000 ships said to call at Indian ports each year, Sharma believes the Indian bunker market has the potential to experience substantial growth once buyers become more aware of the bunkering options available to them when they call at the country's ports.

By comparison, Maritime and Port Authority (MPA) data for Singapore, the world's largest bunkering port by volume, has some 50,000 calls per year by vessels larger than 75 Gross tonnes (GT).

"Ship operators do not realise that they can bunker in ports like Mumbai or Kochi, so they take more bunkers with them when they call there," says Sharma.

"But as some shippers have found, they can instead take more cargo and less bunker, and then bunker in India."

Some reports have suggested that a lack of infrastructure and poor bunker quality are to blame for India's failure to become a bunkering hub, but Sharma says that this is no longer the case.

"The availability of 380 cSt bunkers and other grades is no longer a problem, and as no blending is allowed in India, product comes directly from the refinery so quality is actually very good," he says.

"And as for infrastructure, for example bunkering at Pirpau in Mumbai, there are 2 jetties, and vessels can load bunkers via pipeline or barge. And at JNPT bunkers are also available through pipeline, with $4-5 savings because there are no barging fees."

Sharma estimates that Mumbai has around 5,000-5,500 vessel calls per year, a total that is increasing some 4-5% every year, and notes that an added advantage of the port is a zero tax rate for foreign vessels.

Matrix Bharat also supplies RMG 380, IFO 180, and MGO bonded bunkers by barge and pipeline at Kochi.

Looking ahead, Sharma says he is now starting to see some shipping companies more regularly bunkering in India, rather than making a detour to Fujairah or Singapore.