World Bunkering > News > Autumn 2010 > Passion for the business

Lim Teck Cheng

With some 33 years’ experience in the bunker business, Lim Teck Cheng knows a lot about the industry and, in particular, how to run a successful company.

He recalls: “I joined my father’s company in 1976, a sole proprietorship called Hong Lam Marine Services Co. This company operated two wooden barges for Esso. Later, in 1981, together with my father, we founded Hong Lam Marine Pte Ltd, which had two steel tankers and these were timechartered to Esso.

“We have come a long way since then. I have been involved in all aspects of the business, growing and running the company. It has been a challenging and exciting journey to date. ”

Lim Teck Cheng adds: “I set the overall vision for our company, and oversee its entry into new businesses and the building of new tankers. I have been and am personally involved in the inspection and purchase of all second-hand tankers and all newbuildings.”

That is quite some task, as Hong Lam has commissioned and delivered 35 newbuilds from Japan and China since August 2001 and has several more for delivery next year.

Lim Teck Cheng is also active in the industry: “I am a member of the Technical Committee of the Classification Society Bureau Veritas and Singapore Technical Committee of Nippon Kaiji Kyokai. I am also a member of the Services Committee and the Bunkering Sub-Committee of Singapore Shipping Association and a member of the SPRING working group on mass flow meters on bunker tankers.”

Developing a successful business

So how do you stay profitable and still grow your business? Lim Teck Cheng answers: “First and foremost, passion for the business that you are in. With passion comes the desire to learn and acquire new knowledge and to improve the processes of the company. Equally as important is business integrity. Your customers must be able to trust you and trust the way you conduct your business.

“Even if you have these two qualities, you still need to cascade them down to your senior management and then to middle management and then to rank and file, in order for the company to do well. This is sometimes a challenge especially in these times where turnover of staff is high. We are continuously working on this.”

Singapore – opportunities ...

What about Singapore? Why has the bunker industry here prospered in the way it has? Lim Teck Cheng replies: “Singapore’s bunker industry is entrenched and mature. We are way ahead of other ports in terms of our transparency, our systems and processes. We are already successful – we need to build on this platform of success – how do we do it? By constantly seeking to improve our processes, efficiency , and the capability and quality of the manpower in the industry. There is no point having the best hardware if the software is lagging behind. In Singapore, the Maritime and Port Authority (MPA) not only leads but also provides significant support to the industry. MPA’s vision and willingness to work with the industry has been a significant factor in the advancement and success of the industry.

... and challenges

But there must be challenges facing the Singapore bunker industry? Lim Teck Cheng agrees and points first to increasing costs. He says: “Increased operating expenses especially in areas of wages and repair and maintenance at a time of stagnating or decreasing charter rates present a serious challenge to the profitability and growth of the industry. Wage costs are increasing significantly, primarily due to shortage of qualified officers on board vessels and qualified shore superintendents. In addition there is a shortage of repair yards and facilities.”

Another problem facing Singapore bunker tanker owners and operators is a lack of finance for new vessels. “We need more financial institutions who are able and willing to provide financing for the purchase of such tankers for operations in Singapore harbour. Currently, there are less than a handful of banks willing to support this industry.”

Lim Teck Cheng also points to a lack of technical knowledge, in insurance for example. He says: “For insurance, we need to learn from the experts who have set up shop here, assuming that there is a corresponding willingness to transfer such know how.”

Time for change?

Looking ahead, how ready is the bunkering industry for change? Some classification societies, including BV, DNV and GL, are now pushing LNG as a viable, realistic response to very low sulphur limits rather than distillates. Does Lim Teck Cheng see Hong Lam operating LNG barges in five years time? Probably not, it seems. Lim Teck Cheng comments: “Change will be gradual. This is an industry that requires intensive capital expenditure in terms of the infrastructure for the supply of LNG, bunker tankers that are built to carry LNG for bunkering, and vessels that are designed and built to use LNG as bunkers in lieu of fuel oil. A critical mass of ships that is built to consume LNG will drive the investment in building of LNG bunker tankers. LNG appears to be the future in view of the environment. Will it happen on a big scale in five years? I am sceptical. It is not only a question of the capital commitment involved but also of training the officers and crew to operate the dangerously explosive and flammable LNG tankers. I believe it will take more than five years to train the large pool of officers and crew required to operate such vessels in our congested harbour safely and efficiently. At this point in time there is no such training capability.”

Lim Teck Cheng adds that Hong Lam Marine has been keen to keep up with new trends and innovations – building the largest double-hull bunker tanker in South East Asia in 2005 and the largest purpose-built bunker tanker in the world in 2009, and being one of the first in the region to equip bunker tankers to carry 500 cSt and then 700cSt fuel oil. “Moreover,” he says, “we now have three tankers equipped with the mass flow metering system to enhance the integrity of the delivery of fuels. In this I believe we are also one of the first. By the third quarter of 2011, we also believe we will be the first to take delivery of environmentally-friendly diesel electric propulsion bunker tankers. We try very hard to keep abreast of industry trends and requirements through constant dialogue with industry members and customers. A core part of Hong Lam Marine business is the provision of quality bunker tankers to our customers (we do not have any fuel oil trading activities). Therefore, if there is demand for LNG bunker tankers, we will not hesitate to build and operate them, and we believe we will be one of the first to operate LNG bunker tankers if so required.”