Asia/Pacific News
Indian Bunker Industry is Not Living Up to its Potential
India is far from living up to its potential for bunkering markets due partly to problems with infrastructure and supply quality, industry news site Maritime Professional reports.
Despite having 13 major ports, 180 smaller ports, and 7,516 kilometers of coastline, the nation was reported to sell only about 1 million metric tonnes per year (mmtpa).
Traffic at India ports are growing at 4.2 percent per year, and if 30 percent of visiting ships bought fuel there, it would add up to 3.6 mmtpa, according to Richard D'Souza, vice president of Matrix Bharat Pte Ltd. (Matrix Bharat), a joint venture of Bharat Petroleum Corp. Ltd. and Matrix Marine Fuel Pte Ltd.
"Indian ports are not at all equipped for handling this business on a large scale and almost devoid of any system that supports efficiency, productivity and cost-effectiveness," he said.
"There are development taking place at both the major and private ports but there are major problems considering the oil supply chain both upstream and downstream mechanism."
D'Souza said inconsistent fees and taxes among Indian ports and extensive time needed for documentation and permissions also present difficulties.
Quality of fuel supplied in India is another problem, according to B. B. Sinha, director of the Shipping Corporation of India (SCI).
"Often there is the frothing on the top making it difficult to verify the exact quantum supplied," he said.
"Since the ship has to sail without delay it makes it difficult to ascertain the quantum of bunker."
Sinha said other problems include bunker costs that are higher for coastal operators than foreign-going vessels, short supply of bunker, and delays in supply.
Ashok Sharma, COO at Matrix Bharat, told Ship & Bunker last month that ship operators underestimate India's bunker service and quality, which have improved over time.
