World Bunkering > News > Autumn 2009 > Business (almost) as usual

One thing came came across very clearly at the recent Fujairah Bunkering and Fuel Oil Forum and that was that there is still a lot of optimism around in the Middle East. That is good for long-term thinking and means that projects are largely proceeding despite the current global downturn.

In an upbeat address, Fujairah’s former Minister of Environment and Water, Mohammed Saeed Al-Kindi said: “Despite the ongoing global economic crisis and other global instability in the industry, I am happy to say that Fujairah is still a leading business hub. We have all witnessed many changes over the years in global commerce and trade, as well as international shipping. More changes can be expected and we will adapt within our particular disciplines. Government social and economic policies are likely to favour continued business growth.”

The strategic location of the United Arab Emirate’s Indian Ocean coast, its bunkering anchorages, and especially Fujairah, together with infrastructure that has built up there in recent decades, looks set to ensure that Fujairah will remain the biggest Middle Eastern bunkering port.

Currently Fujairah ranks among the world’s top three world bunkering ports and has experienced a dramatic rise in volumes in recent years. The port’s expansion continues with an additional 840 metres of dedicated oil tanker quays with a draft of 18 metres due to become operational in 2010. Storage and fuel blending facilities are also still being expanded.

Dr Al Kindi noted: “Some 24 million tonnes of oil product destined for bunkering and trading crossed Fujairah berths in 2008. Onshore storage capacity now exceeds two million cubic metres with further capacity on stream.” He stressed that Fujairah is implementing the MARPOL protocol on the disposal of oily waste and is expanding its fully integrated facilities to provide a variety of services, including oil pollution control, waste reception and recycling.

Although Fujairah is likely to maintain its commanding position for the foreseeable future, this does not mean that there isn’t considerable bunker-related activity elsewhere in the region. Iran is emerging as a significant player while Qatar-based energy company WOQOD acquired two 2,800 dwt barges in 2006 and has been developing its bunker operations since then. WOQOD is a publicly listed company and has the sole concession for marketing, distribution and storage of all petroleum products and related services in Qatar.

With the rapid growth in Qatar’s maritime activities associated with development of shipping activities supporting LNG exports, WOQOD identified bunker supply for gas ships as an important support function and business opportunity.

The company says that the convenience of picking up bunkers for vessels whilst loading LNG at Ras Laffan terminal offers a unique opportunity for operators of such vessels to reduce voyage times to the port of discharge, as they will be able to pick up bunkers in Qatar without making a detour to other ports in the region to refuel. It has built a dedicated bunker supply storage facility in Ras Laffan Industrial Park capable of delivering 4 million metric tonnes of bunker fuel annually. With some 100 ships forecast to call a month, with stems of up to approximately 5000 metric tonnes for the large ships, WOQOD is looking at significant volumes.

Last year WOQOD teamed up with Lloyd’s Register’s fuel oil bunker analysis and advisory service (FOBAS) to help ensure that its bunkering practices are properly managed and documented.