The Only Official Magazine of the International Bunker Industry Association.

World Bunkering >Articles > Company profiles > RN-BUNKER: Strengthening positions

Logo of website section  RN-BUNKER: Strengthening positions

RN-BUNKER: Strengthening positions

The bunkering business of OC Rosneft, Russia's biggest oil company, is represented by its daughter company, RN-Bunker Ltd.

According to Rosneft’s programme of bunkering business development, the daughter company has managed not only to enter the market of all major Russian ports, but also occupy the leading positions there, while dynamically increasing its share of presence. In March 2010, RN-Bunker Ltd joined the Russian Association of Marine and Bunker Suppliers.

Having separated bunkering into a separate line of activities, Rosneft has set several ambitious targets. Firstly, to maximise sales of oil products by cost reduction, balance of investment and capitalisation growth. Secondly, to deliver the product to the end user with constantly guaranteed quality, meeting all existing international standards, including MARPOL, as well as controlling the movement of oil products at all stages of bunker delivery. Another target set by the company is to increase the share of sales via its own distribution network, thus achieving stability and high efficiency of oil products sales in Russia and abroad.

Map of expansion

In the ports of its operation, RN-Bunker Ltd works both with shipowners and large traders. A vertically integrated company follows an approved strategy. That is why, by 2010, RN-Bunker Ltd, though not without difficulty, entered the bunkering market of 10 major Russian ports. At the time of writing the company has representatives in Nakhodka, Vladivostok, Yuzhno-Sakhalinsk, Archangelsk, Murmansk, St Petersburg, Tuapse, Samara, Rostov and Astrakhan.

According to the company’s Deputy Director General, Vladimir Brezhnev, this allows the company to deliver the product directly to customers’ vessels and make sure that the quality of the fuel supplied meets all international standards. “In the future,” explains Vladimir Brezhnev, “there are plans to open new operations, expanding the map of company services”. In fact, the business plan for 2011 schedules opening offices in London and Singapore.

Sold

To date, monthly bunker sales by RN-Bunker Ltd amount to approximately 200,000 tonnes. This figure reflects both sea and river bunker sales. The Volga-Don basin alone handles 32,000 tonnes of bunker, while Siberian rivers Lena and Amur handle 16,000 tonnes monthly. The sea ports of the Russian Far East are most successful in terms of bunker sales for RN-Bunker, with monthly sales of up to 70,000 tonnes. In addition to that, the company sells around 8,000 tonnes of fuel in Sakhalin ports.

The biggest ports of the north-west, being quite a tough market due to high competition, have also been conquered by the company. Arkhangelsk and Murmansk account for 20,000 tonnes in bunker sales and St Petersburg up to 15,000 tonnes.

At the Black Sea the company sells indirectly up to 4,000 tonnes monthly in Tuapse, in the Novorossiysk market. The company is a physical supplier of oil products in the region, with the monthly volume of bunker sales amounting to 25,000 tonnes.

Considerable sales have been achieved due to “high quality management standards applied by our mother company,” says a senior manager. Cost savings and optimisation of logistical costs (90% of all RN-Bunker supplies are made on a FOB basis) allows the company to offer fuel at competitive prices in any region of its presence. It is these competitive prices that have enabled RN-Bunker to integrate into new business areas.

RN-Bunker Ltd controls the quality of the bunker fuel, from the manufacturing facilities of OC Rosneft Ltd to the delivery into the bunker tanks of the vessels. The company offers practically all types of fuel of high international standard in any region of its presence:

Far East: IFO 180, MGO
North-West region: IFO 180, IFO 380, MGO, MDO, HS, LS
Southern region: IFO 180, IFO 380, MDO, MGO
Northern region: IFO 180, IFO 380, MGO, MDO, HS, LS
River bunkering: MGO, MDO

PROSPECTIVE INVESTMENTS

The company has actively developed its own infrastructure for bunkering vessels. Currently, work is being undertaken to arrange rental, acquisition and construction of oil depots. The company is developing its bunkering fleet, as well its fuelling facilities, in compliance with all international standards. At present, RN-Bunker is renting its fleet from barging companies to deliver bunker fuel.

When it comes to buying or building new tanker fleet, RN-Bunker’s programme of strategic development relies on co-operation with the Russian shipping companies Rosnefteflot and Sovkomflot. “Thus,” says Brezhnev, “by the end of 2010, RN-Bunker Ltd will commence bunkering using its own fleet in every port in which it has a presence.”

In an interview with Port News Agency, Brezhnev commented: “We possess all the knowledge and experience required for the bunkering business, and strive for perfection in this area. We aim to create a modern, dynamic, flexible and efficient company of international standing, which will focus on establishing long-term mutually beneficial relations with our clients.”

Image related to: RN-BUNKER: Strengthening positionsRN-Bunker

Added 07 December 2010 in the category: Company profiles

social bookmarking

  • (subscribe feed): Company news, RN-BUNKER, Rosneft, bunker in Facebook
  • (subscribe feed): Company news, RN-BUNKER, Rosneft, bunker in Twitter
  • (subscribe feed): RN-BUNKER: Strengthening positions in Linkedin
  • (subscribe feed): RN-BUNKER: Strengthening positions in Google Plus
Tags: Company news, RN-BUNKER, Rosneft, bunker