World Bunkering > News > Summer 2009 > Volumes growing in Gibraltar Strait

Gibraltar Port Authority (GPA) Chief Executive Peter Hall says: “The figures for the first quarter of 2009 are up 10% by volume and 16% by vessel visits. Waiting time is down 10%.”

Capt Hall adds: “It would appear that as a result of the reduction in traffic through Suez, Gibraltar is increasing trade by virtue of the close proximity to the north-south shipping route (ie Cape traffic diversion).

It is not only cargo vessels that are driving growth. The port has shown an increase in cruise liner calls, both in number and size.

The biggest supplier in Gibraltar is Vema, followed by Aegean, Cepsa/Peninusla and Bunkers Gib. At present 17 bunker tankers are registered with the GPA to supply vessels in the territory’s waters and the fleet has increased recently. Peninsula have brought in two new vessels, one of them from Whittakers, in order to alleviate delays. Bominflot have recently signed a two-year charter with Bunkers Gib. Aegean has agreed a lease for storage with TangersMed for 25 years which will give them the flexibility to deliver either in Gibraltar or Tangier.

Dealing with congestion

Regarding congestion, which was a limiting factor last year, Capt Hall says: “With the East side being made exclusively for Gibraltar waiting vessels there is now more space for waiting vessels and this reduces dwell time.” At present though the ban on bunkering in the Eastern Anchorage remains in force. But he says: “The situation will be kept under review.” In addition, he reveals that “plans are being looked at to accommodate mother ships on the outer side of the detached mole and thus release more bunker anchorages”.

Algeciras has also experienced congestion and a bunkering source says: “Currently shipowners and charterers are looking at the Ports of Gibraltar and Algeciras for bunkers and take into account price and congestion.”

The GPA has recently reviewed and increased its tariffs, although they are still cheaper than the surrounding ports. Significantly the area for charging port dues has been extended to the East side of Gibraltar.

A local agent says that this can be seen as a means of ensuring that all vessels have an appointed agent and therefore there is direct contact with the port authorities, who wish to have more control on the East side after the recent casualties New Flame and Fedra.

One bunker industry insider says: “There are some fears that this might affect the ‘Bunker only Call’ business, and this will be monitored. There is a hope that the industry will be able to extend services to vessels on the East side, although bunkering will as yet not be allowed.”

One major facility in Gibraltar remains unused. The Kings Lines storage tanks are still the subject of a dispute between Chevron and the UK’s Ministry of Defence (MOD), which is preventing them being handed over to a new operator. There is, however, still significant industry interest in them and the government of Gibraltar is waiting to proceed, once the tanks are handed over to it from the MOD.

Paul Imossi of ship’s agents Smith Imossi says: “Another positive development is the coming of a new airline that will operate daily flights between Gibraltar and Madrid. This will help with crew changes. These flights will be daily.”

Algeciras Bay

Bunker volumes at Algeciras reached 2.4 million tonnes in 2008 and the port expects to them to stay at that level, at least, despite the global recession. A Port of Algeciras Bay spokesperson said: “Our intention is to increase volume from 2011, considering two different favourable circumstances: on the one hand, the arrival of Alpetrol, a new bunker facility to the Port of Algeciras Bay, which will set up a new liquid bulk storage facility with six hectares of surface in Isla Verde Exterior area. On the other hand, the Compañía Logística de Hidrocarburos (CLH) will increase its storage capacity in Algeciras.”

She added: “At the moment, shipping lines are trying to reschedule their services, optimising the existing fleet capacity, establishing alliances with other shipping lines and trying to adapt themselves to the new market conditions. However, regarding the bunker market, we hope to keep our market share and the end of 2009 we also expect to obtain a similar figure to the one from last year.”

World Bunkering asked about the competitive situation with Gibraltar and also Ceuta for shipping and bunkering volumes. The answer was: “The Port of Algeciras Bay is the number one Spanish fuel-supplying port and holds a top position in the Mediterranean. In 2008, a total of 24,535 vessels called at the Port of Algeciras Bay for different purposes. More than 1,220 hectares of anchorage waters, exceptionally sheltered conditions and deep water have made our port an ideal location for all types of bunkering and related operations.”

The spokesperson notes: “In the Strait of Gibraltar there are three main players regarding bunker supply, each one with specific characteristics. For these reasons, from the shipowner’s point of view, the Bay of Algeciras is an ideal location for bunkering and other related activities (ship repairs, for example). Nevertheless, we compete to increase our market share so that the new situation may offer good business opportunities for bunker suppliers. In terms of volume, with the arrival of Alpetrol and CHL expansion projects, the bunker offering in the Port of Algeciras Bay is expected to increase, not only because of the extra capacity in terms of product storage, but also because of the increase in the number of barges available to meet new demand.”

Port of Algeciras Bay currently has two major suppliers: CMF (Cepsa Marine Fuels) and Repsol YPF. Cepsa Marine Fuels is a sister company to CEPSA, whose refinery is located at the Bay.

However, once Alpetrol and CLH projects come into operation, the port’s storage capacity will increase by 21%, to 2.6 million cu m.

Environmental protection is a major concern in the Strait of Gibraltar region and Port of Algeciras Bay says it is currently the top waste collecting port and the one with the lowest costs in Spain. In recent years, says the port, the volumes of waste oil and solid residue from vessels collected and treated has grown significantly.

For the future, Isla Verde Exterior is the most important development area of the Port of Algeciras Bay. The Alpetrol infrastructure project in this area includes construction of a new jetty to avoid delays in operations. The new development will have a common user container terminal operated by Total Terminal International Algeciras (TTI-A, Hanjin Group). This should start operations next year. The Port Authority continues to invest in Phase B of the Isla Verde Exterior project, with TTI Algeciras having first right of refusal on the reclaimed area. A new ro-ro terminal is also being planned for Isla Verde Exterior area with the intention of attracting new trade to the port.