More Than a Year On, Algoa Bay Bunkering Restart Remains in Limbo

Algoa Bay bunkering has been suspended since September 2023. File Image / Pixabay

Despite the passage of over a year, there has been no clear indication of when marine fuel operations at South Africa's largest bunkering location will restart, leaving stakeholders in the industry awaiting clarity.

South Africa has been losing bunker demand despite a surge in traffic via the Cape of Good Hope amid the Red Sea crisis. This decline is primarily due to the shutdown of offshore bunkering operations in Algoa Bay.

"The only hope for more bunker business is for Algoa Bay offshore bunkering to resume, and who knows when that will be," a port agent told Ship & Bunker.

At the same time, the country lacks the spare capacity to accommodate any increase of in-port bunker calls.

With limited bunker berths and facilities, the situation remains challenging.

"In-port calls at South African ports are also very expensive by global standards, particularly for larger vessels," the agent added.

Bunkering operations at Algoa Bay came to a near halt in mid-September 2023 after the South African Revenue Service (SARS) detained five vessels, including bunker barges. Since then, operations at what was once the largest bunkering hub in the country have remained suspended.

Most stakeholders in South Africa's maritime industry are uncertain about when bunkering could resume.

While SARS has indicated that bunkering should resume in Algoa Bay, the specifics of how this will happen remain unclear, Unathi Sonti, executive chairperson of South Africa's Maritime Business Chamber (MBC), told Ship & Bunker during a webinar hosted by MBC on Thursday.

To address these uncertainties, SARS is organising an industry workshop on January 29 to discuss its recent amendments to bunker regulations.

Industry stakeholders will press for more clarity on the new bunkering guidelines at the upcoming workshop.

The amendments, introduced under sections 21, 60, and 120 of the Customs and Excise Act, focus on the storage of imported bonded fuel goods in designated customs and storage warehouses.