EMEA News
Real Opportunities Exist in Evolving Africa Bunker Market: IBIA
Following its African regional forum, the International Bunker Industry Association (IBIA) Friday said "real opportunities" exist in Africa's evolving bunker market for those willing to invest time and resource to overcome the obstacles.
As Ship & Bunker reported in August, IBIA Africa said its second regional forum in Cape Town, which ran from September 14 to 16, would be focused on highlighting the importance of "establishing a good bunkering hub."
Speakers at the event are said to have concluded that, while improved regulation has seen illicit activities and poor practices decline, some locations are now experiencing reduced competitiveness and restricted market growth as a result of the increased regulation.
West Africa was noted at the forum to be one such place where increased regulation and licence requirements has led to the Pointe Noire anchorage in Congo being dominated by a single supplier, and a customs crackdown in Angola has led to the elimination of competitively priced MGO.
"Piracy, although in decline is still a serious consideration in the region, and fuel can be expensive, delivery is not always timely and the delivery infrastructure is often underdeveloped," added IBIA.
"However, one positive aspect was that the offshore European operators who had been active before they were put off by the industry's operational challenges, had been delivering higher standards of service that were beginning to be emulated by local operators."
Meanwhile, the East African bunker market is said to be "much less developed" with limited supply options and product offerings, higher prices, and a lack of sufficient infrastructure.
Further, some East African suppliers are said to be unable to hold stock due to price fluctuations, with hedging too expensive for small operators.
"One exception to this scenario is Port Louis, Mauritius, which was the location for last year's IBIA Africa Regional Forum," noted IBIA, adding: "here government policies covering licencing, encouraging good practices and offering economic incentives for ships to call for bunkers such as a 50 percent reduction in port dues and anchorage fees are delivering positive results."
South Africa is said to have "a massive advantage" due to its location in relation to international trade routes, with Transnet National Ports Authority (TNPA) providing significant investment in port infrastructure, promoting bunkering through the removal of trade barriers and the encouragement of new operators.
"Plans for a new cruise terminal at Cape Town and significant expansion of the port's container handling capacity in the future should further boost demand for marine fuel," added IBIA.
In July, Ship & Bunker reported that Aegean Marine Petroleum Network (Aegean) had deployed a new R200 million ($13.93 million) bunkering vessel, the MT Lefkas, in South Africa's Port of Port Elizabeth, to provide bunkering services to ships in Algoa Bay.
