Shipping

Hambantota awaits bunkering business

Ravi Ladduwahetty

The shipping community in Sri Lanka awaits the upgrading of the Marine Fuel (bunker) business in Sri Lanka, presently operated from the Colombo Port from the present level of around 27,500 to 35,000 metric tonnes per month volume to a key regional maritime hub offering competitive prices internationally, at the new port at Hambantota.

Top shipping sources told Daily News that while Colombo based bunker suppliers in the recent past have been offering competitive prices during the past few weeks for fuel oil tanks to a bunching of fuel oil arrivals resulting in cut price selling to create tank space to accommodate the new imports, the shipping trade is of the opinion that the Sri Lanka Ports Authority and Customs would need to focus on many factors to develop Hambantota.

At present, Sri Lanka imports all its petroleum requirements including for bunkers a total of around 4.8 million metric tonnes per year.

The National Oil Company, Ceylon Petroleum Corporation refines around 2.12 million metric tons per year at the sole 52,500 barrels per day refinery at Sapugaskande.

The balance requirement of around 2.7 million metric tonnes refined product is imported by Ceypetco, Lanka IOC (LIOC) and the active licensed bunkers traders on the spot market.

These purchases on the spot market are generally from suppliers based in Singapore and the pricing formula is linked to the international petroleum index PLATTS where a premium is added on the Singapore base price, on top of the premium is the freight component.

In order that Hambantota based supplies be effected at a price that is competitive internationally, the new port at Hambantota, needs to focus on refining its supply chain as almost all of the suppliers of refined petroleum products including fuel oil and gas oil the main products required by the marine industry at present are from Singapore, UAE and India who offer their exportable surplus at a price linked to the PLATTS index where freight has to be added on top of the cost of the cargo and the premium to purchase.

This is the basis of international oil trading other shortcomings such as limited tank space, common pipelines, low pumping speeds, antiquated Customs process relative to the “bonding” (duty free status) of marine fuel and overall increasing the countries refining capacity in tandem with Ceypetco and a competitive environment with a level playing field for all licensed bunker suppliers. Any savings are by virtue of economies of scale however, the import cargo parcel size would have to be increased considerably (say 100,000 metric tonnes plus per shipment) to achieve savings that would provide an internationally competitive price either at Hambantota or Colombo.

Dockyard repairs Amet Majesty

The passenger vessel Amet Majesty (16,546 GRT) was successfully accommodated for afloat repairs at short notice during end May.

This passenger vessel owned by Amet Shipping India (Pvt) Ltd. is managed ABS Marine Service Pvt Ltd.

The passenger vessel intended to for cruising between Colombo and India, called in with afloat repair requirements, during this call the passenger vessel was accommodated at guide Pier 1.

Colombo Dockyard’s newly introduced afloat repair unit swung into action to handle this project, the owner’s stringent requirements were identified and suitably addressed during this call.

The main scope of work consisted of: Hydro- blasting and painting of ship hull and accommodation area, painting of ship name on the hull (five meter height), Changing of funnel Logos, Fabrication and installation of 100 Ton Fresh water swimming pool consuming approx. 11 tons of steel.

Overhaul of 18 nos. scupper valves by blanking underwater pipes, removal to work shop and O/H. The repairs were completed within the quoted period of three weeks.

The project was coordinated by the Afloat repair unit, the team was headed by Afloat Repairs Assistant General Manager Mahesh Hettige supported by the production teams from all departments in completing this project successfully.

The repairs were carried out meeting the requirements of classification Society Det Norske Veritas (DNV) and Indian Register of Shipping (IRS).

The owner’s representative P. Bharati overlooked the project in Colombo.

The local agents for the vessel during this call were Ceyline Shipping Agency.

Expolanka Freight takes Global logistics

Expolanka Freight one of Sri Lanka’s largest freight forwarders and a subsidiary of Expolanka Holdings PLC entered into a strategic partnership with Global Logistics.

The investment made by Expolanka Freight, now means that the company has a 60 percent stake in Global Logistics Services. Expolanka Freight is one of Sri Lanka’s leading freight forwarding companies and has firmly established itself as a premier provider of freight and logistical services for clients across multiple industries.

In operation since 1978, the company specializes in being a fashions logistics service provider with 80 percent of its business being derived from the apparel sector.

This new acquisition now gives Expolanka Freight the opportunity to diversify into new arenas. Global Logistics joins ranks of the dynamic cluster of freight and logistics companies within Expolanka Freight, providing outstanding service excellence and customer support, including Union Cargo Logistics, Logistics Support Services and Pulsar Shipping Agencies.