Asia/Pacific News
Lanka IOC to Boost Bunker Sales at Trincomalee
Sri Lankan bunker player Lanka IOC (LOIC) is to maintain its competitive edge in the regional bunker market by augmenting its bunkering facilities at the port of Trincomalee on the east coast of Sri Lanka.
September saw the company increase the volume of imported 380 centistoke (CST) fuel oil into the port from 22,000 metric tonnes (mt) a month to a record high of 54,000 mt, vice president for operations and bunkering Randhir Singh told Ship & Bunker.
The storage for 380 CST in the port is also to set to rise from its current 24,000 mt to 36,000 mt. Additional storage for other fuel oil grades is in the pipeline with 12,000 mt capacity penciled in for 180 CST, and another 12,000 mt capacity for low sulfur marine gasoil (LSMGO). The additional capacity should be ready within three months, according to Singh.
LIOC is planning to import LSMGO from November at Trincomalee "which will create a niche market for exclusive customers", Singh said.
"Trincomalee has natural harbour and most of the time water remains sheltered. It has 50 meter deep draft at anchorage and even ULCCs/VLCCs can take bunker fuel at very competitive rates without any impact of weather," Singh said.
Bunkering at Trincomalee began in June last year. LIOC's 3,000 deadweight tonne bunker barge stationed at Trincomalee which can deliver 2,450 mt of 380 CST and 450 mt of LSMGO on single barge basis.
The high tax on bunker fuel sold from Indian ports boosted sales at Sri Lanka's main port of Colombo and Trincomalee.
But the proposed cut in that tax from its current 18% to 5% will have limited impact on Sri Lanka's bunkering industry
"There will a marginal impact on bunker sales but Sri Lankan ports are still competitive with Indian ports. Tax in Sri Lanka on bonded bunker fuel is 0%," Singh said.
It is not known when the lower rate of tax from bunker sales will be implemented.
