World Bunkering > News > Spring 2010 > Waiting for 380

Pressure on shipping lines struggling to fill their ships means that they are more likely now to bunker to capacity where prices are lower, says Orion Bunker’s founder partner Muhammad Yousuf. “That is good for us,” he told World Bunkering.

Orion has only been operating for six years but has become a major player with a fleet of six modern barges. The company operates in a small but competitive bunker scene with a number of suppliers active. One source puts total monthly volumes at Karachi at around 8,000 tonnes.

Pakistan’s bunker supply industry has grown significantly in recent years and is becoming more competitive and attractive to internationally trading vessels using, primarily, Pakistan’s rapidly growing principal port of Karachi. Bunkering also takes place at Bin Qasim but not during the May-August monsoon season. The new Gwadar port, some 280 miles west of Karachi, is now operational and should generate significant bunker business. Meanwhile, Karachi Port has expanded significantly over the past decade and is set for further major developments.

Recently a detailed feasibility study for deepening of the port’s main channel recommended dredging to 13.5 metres to allow vessels of up to 12 metres draught to use the the port at all tides. Karachi International Container Terminal, operated by Hong Kongbased Hutchison Port Holdings (HPH) has expanded in phases over the years. Annual capacity has increased to 700,000 TEU while berths have been deepened to accept 14 metre draught containerships.

There is, however, widespread agreement that the market could be much bigger if suppliers could offer 380 cSt fuel. This has been a source of debate for years but in recent months it seemed deliveries were about to be offered. Oil refiner Bosicor Pakistan Limited (BPL) was reportedly planning to blend 380 cSt for the international bunker market. At present the country’s refineries produce only 180 cSt and MGO.

Last year Faisal Marine Oil Services said it expected to start supplying 380 cSt in November but a company spokesman said that the plan had been delayed by difficulties obtaining a licence Another firm, Steadfast Bunkering Services, brought in a newbuilding bunker tanker, the Falcon, in the expectation of delivering 380 cSt.

Orion’s Mr Yousuf confirmed to World Bunkering, however, that as of late January, no Pakistani companies were in a position to offer 380 cSt, contrary to some reports. Meanwhile, his company is weathering the economic storm by being able to compete on price and service with the other main regional bunker ports. Mr Yousuf says the crisis has not changed his company’s attitude towards extending credit as it is always focused on reputable companies. He says: “You cannot open credit for just anybody.”

He claims that his company has been able to overcome another general problem facing the Pakistani bunker industry – periodic supply shortages. He says: “Orion Bunkers has exclusive access to an onshore storage facility, ensuring continuity of supplies even when there is a general shortage of bunkers in Pakistani ports.” Asked whether low-sulphur bunkers were available in Pakistan he says that they are and that there is no problem meeting demand. So far switching from single to double-hull barges has not become an issue. Although Orion is considering bringing in a double-hull at some stage, it has no definite plans to do so yet.

Among other players in the market, the Pakistan State Oil Company supplies the Pakistan Navy, Maritime Security Agency, Karachi Port Trust, PNSC, while Bosicor Pakistan Limited (BPL), which operates a coastal refinery about 30 miles from Karachi, also supplies bunkers.

Faisal was established in 1966 and supplies 180 cSt and MDO and MGO at Karachi and Bin Qasim. The company operates a fleet of six barges, including the recently acquired 1,500 dumb barge Fillgo VI. Faisal says it has plans to increase its fleet further.

Plimsol Bunkering Services (PBS) has also started supplying MDO and MGO to the international market using its fleet of six small barges.