Q&A: Ufuk Erinc, CEO at Turkish Supplier Unerco and 2024 IBIA Board Candidate

Ufuk Erinc, CEO, Unerco Petrol Urunleri Denizcilik ve Ticaret A.S. Image Credit: Unerco

The International Bunker Industry Association (IBIA) this week opened voting for its 2024 board elections.

Ufuk Erinc, CEO, at Turkish supplier Unerco Petrol Urunleri Denizcilik ve Ticaret A.S, is one of the nine candidates vying to fill the two vacancies.

Ship & Bunker recently spoke to Erinc for a short Q&A.

Q:  What is it like to be a CEO of a physical supplier in a region with several conflicts from Black Sea to Eastern Mediterranean?

A: Challenges for sure makes one stronger and equips us with better problem solving skills. Operating in a geo-politically difficult part of the world requires lot of agility, operational excellence, prudence and due-diligence to navigate this environment.

Perhaps it slowed down the development of Unerco, because we prefer to be conservative rather than going into adventures in uncertain times. Risks can pay back handsomely but our priority is "consuming without getting consumed" which goes all the way from environmental matters to political and commercial risks.

As a Captain myself, my priority is the safety of my company, crew and customers. We would rather have steady yet secure growth than gambling on high-risk high-gain proposals which come naturally in volatile times.

Q: Do you feel there are "too many bunker players" at the moment? Is the market over-crowded?

A: I worked for many years as a salaried professional, first at sea later at a liner company looking after operations and finally making into bunkers in mid-2000s. When I started in my previous job (at Arkas Bunkering) as one of the early pioneers of "self-supply and trading on the back of own bunker demand model", people asked us the same question: Is there any need for such operation?

Two decades on, now there are lot of companies following the same model. We started our own Unerco with the backing of a financier, and again we were asked if this was a viable model, is there any need for a new supplier. A few years later we see many professionals are trying to make it to the other side creating their own ventures. So it appears if you dedicate yourself, follow your heart but not leaving your mind behind there is room for a lot of players, especially in niche segments.

The demographics of bunkering are changing and the big commodity players are increasing their stake, big nationals such as the Chinese are drawing more volume, big independents who made lot of money in the 2020-2022 period are increasing their volume, but also a lot of smaller outfits are coming to life too, but often offering something more than an intermediary or a supplier: This is where the difference is. The market wants to see added value, knowledge, information, decision-making partnerships and integrity. The bunker market may be overcrowded for those still stuck at a "entertaining and lubricating" type of business, but not for next generation intelligent structures.

Q: What do you think of mandatory use of mass-flow meters?

A: Installing mass-flow meters into each barge in the world doesn't make much difference, because if there is a will there is a way. The important thing is the control structure around it with the authorities able to monitor and enforce within and outside port limits.

In Turkey for example, the control structure is so well established and strict that it is a bunker market with zero quantity claims, without any need for flow-meters. If uncontrolled, uncalibrated flow-meters should be the norm, it will have the opposite effect as a licence for short-deliveries.

Another aspect is financial, since mass flow meters are expensive investments it will be a burden for smaller industry participants especially in places like the Turkish market where typical barges are lot smaller than the major hubs. Installing a flow-meter on a 500 dwt barge has different financial implications than putting one on a 5,000 dwt barge.

If it can be controlled, it would pave the path for a more level playing field which we would support because some people say the Istanbul bunker market is "more expensive" but when they do the calculations often they find it to be cheaper compared to some ports.

At normal operating conditions as far as I know the tolerance of flow-meters is 0.5%, but I would like to emphasis that through our strict control mechanisms in Turkey we don't even have room for this error. Turkish bunker market delivers with 0% tolerance from the ordered quantity, because it is measured at least 3 times under controls of the customs authority. In a market that delivers over 2 million tonnes, this equates to US$ eight figures, and we pass this benefit to our customers. Since we are already surpassing what can be achieved by using mass flow meters, why should we go backward? The core of integrity in the market is the control systems and the will-power of authorities to create a fair environment.

Q: You are a candidate for IBIA Board Membership this year, what motivated you to run?

A: I think of it as a civic duty, we have to sincerely give something back to our community.  I am a family man and I want to leave a prosperous company operating in a good environment to my children, if they should decide to follow my path.

I find inspiration from my daughters, at their school it says "enter to learn, depart to serve" on the wall, I can say the same applies to me too for my desire to be part of the IBIA board. It is a hefty undertaking and will require a lot of commitment and hard-work. I will learn from it and also I will be able to share my accumulated knowledge for the benefit of the entire bunker industry.

The human race in general is quick to blame or point fingers when things are not as desired but slow to put the effort in to make a difference. I don't want to sit here and complain that smaller players' views are under-represented or our voice as an industry that literally moves the world trade is not strong enough. I at least want to volunteer to be part of the management of an important industry body that should make all of us proud.

As the bunker industry, other than Ship & Bunker and the like, we only feature in the mainstream media when something goes wrong. We do a great job of finding cargo, blending it, storing it, delivering it, giving billions of dollars of credit, with the agencies working round the clock to make sure all goes smooth while the surveyors, under difficult conditions, ensure integrity is there, and lawyers are at hand for intricate details etc.

We deserve better recognition for our part in global trade. Between 2025 and 2050 it will be very significant because on one hand we are actually running out of oil in the world and on the other we have to create a better liveable environment. I see IBIA as something at the centre of probably the most important challenge of humanity because imagine if tomorrow all the ships stopped due to lack of fuel, what will happen to humanity?

My motivation is to fulfil my responsibility for the world, where we are so crucial, but underplaying it.