EMEA News
Switch to IFO180 Bunker Sales Boosts Engen's Market Share "More than Ten-Fold" in Mauritius
Engen Petroleum (Engen) says its share of the Mauritius fuel oil market has grown "more than ten-fold" since its decision to sell 180 cSt product instead of 380 cSt bunkers.
"In 2014, the Mauritian authority that sources fuel for the country’s requirements, liberalised the importation of Heavy Fuel for bunkering, in order to support Port Louis as a bunkering hub for the region," said Engen.
"The invitation to players (including Engen) specified a 380 CST grade fuel, which for Engen proved to be non-competitive in terms of price, the availability of dedicated storage facilities and barges to target big customers."
Instead, Engen said it believed sales of 180 cSt would fair better, and partnered with various third parties for storage and barge facilities to deliver its bunkering solution.
"In doing so the business secured healthy shore storage tank capacity, barges, and a dedicated pipeline for receipt and loading of barges," the company said.
"It took buy-in, teamwork, commitments, cross collaborations and stakeholder engagement to make it all possible. It also took almost a year of pre-work and a number of engagements," said Christian Li, Engen's Commercial Business Development Manager.
However the net result has been a "more than ten-fold" increase in market share, according to the company.
"What began as a barrier to entry into a growing market has become a major success, and a significant step in Engen’s drive to become a major player in every market that it operates," said Drikus Kotze, Engen's General Manager for International Business.
Heavy fuel was said to contribute 62 percent of the bunkering sales in Mauritius.
In April, Ship & Bunker reported that the Government of Mauritius, in support of the country's bunkering industry, held a five-day training session on the bunkering and shipping industry.
