World Bunkering > News > Summer 2009 > Turkey - The gateway to the Black Sea

Istanbul’s strategic location gives it the opportunity to be the most convenient supply point in the Black Sea area, not only for bunkers, but for all the services passing vessels require, according to Mustafa Muhtaroglu, the founder and head of physical supplier Energy Petrol.

He points out that bunkers can be taken at the same time as provisions, luboil, fresh water, spare parts supplies and crew changes and the updating of ship documentation.

Trade dynamics

Trade between the Black Sea and Mediterranean countries has its own dynamics with about 50,000 ships passing through the Turkish Straits. More than 18,000 ships take bunkers and luboil at Istanbul every year.

The Istanbul market volume is about 1.5 million tonnes with five suppliers accounting for 95% of the total market in terms of fuel oil and gasoil. Two others specialise in gasoil. The Istanbul ports and the anchorage account for 90% of Turkey’s bunker business.

Anadolu, generally known as Baytur, is historically the market leader in the Istanbul bunker market and has the advantage of a floating storage facility located at the port of Ambarli, close to İthe Istanbul anchorage area.

Deniz Eraydin, of CYE Petrol, points out that, as bunker companies do not disclose their quantity figures to each other, it is very difficult to tell market shares, although a total figure can be obtained from Customs data.

Nevertheless, Mr Muhtaroglu estimates that Baytur and Petrol Ofisi (PO), which has a terminal in the same area, together account for about 50% of the market. Energy Petrol follows with about 15% market share while CYE Petrol and TBS have about 13% each. Lukoil and Oiltrade supply gasoil while Shell, Mobil and BP supply luboil only. Shipowner-backed Arkas Bunker is a new entrant in the market.

Apart from Anadolu and PO, located near Istanbul, the other suppliers work from storage facilities located in the Gebze area, 35 miles sailing to Istanbul’s bunkering point. Gebze is the region’s new hub for oil and chemical products, with modern land-based storage facilities enabling suppliers to provide shore-blended bunkers of all grades.

Gebze has good access to the Tüpra refinery, the main source for bunker suppliers working in Istanbul and the Marmara Sea. Together, Gebze and the neighbouring Izmit Bay ports of Diliskelesi, Hereke, Yarimca and Derince provide a gateway to the most industrialised area of Turkey. About 20 private terminals receiving over 12,000 ships a year create strong additional bunker demand for suppliers based in the Gebze area.

Mr Muhtaroglu says that Energy Petrol can claim a world record in that it has made over 20,000 deliveries since starting up 23 years ago without any serious quality claims. The company runs a fleet of eight barges: four owned and four on long-standing timecharters, through its own shipping affiliate company.

The sulphur question

Little low-sulphur fuel is currently supplied at Istanbul. Suppliers do offer low-sulphur (max 0.1%) MGO as required at EU ports in any quantity and can deliver even very small quantities such as five or 10 tonnes, enabling shipowners to get the required quality and quantity for efficient operations, which is very important at today’s freight rates. However, Istanbul is not able to offer low-sulphur fuel oil so far.

The refineries supplying Istanbul do not produce low-sulphur fuel and it is not economical to bring it from distant refineries, as the demand is not there. Passing traffic is mainly between the Black Sea and Mediterranean and North Africa, where low-sulphur fuel is not required by the regulations.

Mr Muhtaroglu says: “Very few ships passing Istanbul are heading for Northern European waters, and they mostly prefer to take on low-sulphur supplies closer to the SECAs.”

Other grades

Likewise there is almost no demand for high viscosity bunkers at Istanbul although 500 cSt can be sourced from local refineries. Considering that some large liners are already cancelling some calls by their large ships requiring bunker fuel of this grade, it seems this issue will not be a main concern for İIstanbul suppliers in the near future.

Mr Eraydin says that regulations also have an effect on what can be offered. He says: “It is forbidden to sell fuel oil as bunker product if the sulphur content is lower than 2%.

Therefore, if we want to obtain different grades with blending facility, we have to stock fuel oil with a minimum of 2.5% sulphur. Also, MGO with a sulphur content of less than 0.05% cannot be sold as bunker product.” He attributes the problem to diverging priorities of different government bodies, saying: “While one authority is trying to introduce regulations according to international environmental standards/concerns, another authority introduces the contrary. It takes some time to explain and make changes.”

Developing a market

While Istanbul has many advantages due to its location, its bunker industry cannot, says Mr Muhtaroglu, be complacent. He says: “Regarding the future of bunkering in the area, it is a fact that owners prefer to bunker at the berth during cargo operations. So Istanbul, as a transit and bunkers-only call port, could lose volume to the Black Sea ports if they can offer a reliable, professional, quality and competitive bunkering service.”

However, he believes efficient, fast, reliable and high service quality will mean Istanbul will keep its position as one of the best and most convenient bunkering options. He says: “Istanbul will be always be a strong bunkering alternative for the area with its huge shipping traffic and an increasing number of cruiseships calling at the ‘2010 culture capital’.”

Updating the fleet

The quality of the bunker fleet is set to receive a boost as new double-hull tonnage come into service. PO has the largest timechartered bunker barge fleet but only Baytur, CYE Petrol and Energy own their bunker barge fleet, with other suppliers using spot or timechartered barges.

The main authority regulating the bunker industry is the Turkish Undersecreteriat of Maritime Affairs. Together with the Turkish Energy Regulatory Authority (EPDK), it has been working on several projects.

Mr Eraydin says that one policy currently being implemented by the EPDK is the scrapping of old single-hull tankers as the double-hull regulations bite between 2010 and 2016. “This means,” he says, “we will be introducing some new bunker barges within five to six years.”

He says CYE Petrol currently operates the biggest bunker barge, with 3,300 tonnes fuel oil capacity and a 650 tonnes/hour pumping rate. His company uses the privately owned Poliports chemical and petro-chemical terminal barge loadings are supervised by ITS Caleb Brett surveyors.