World Bunkering > News > Summer 2010 > Gibraltar

Despite the economic downturn, Gibraltar’s bunker volumes increased by nearly 12% compared to 2008, to 4.69 million tonnes. Paul Imossi of ship’s agents Smith Imossi says Gibraltar has been helped by the introduction of the Emission Control Areas (ECAs) in northern Europe. This has helped in two ways. A 4% increase in ship calls probably reflects an increase in ships taking low-sulphur bunkers before entering the ECAs while ships have also been taking on more bunkers – IMO-compliant high sulphur and low sulphur for the ECAs.

The biggest supplier in Gibraltar in 2010 was Vema Oil, a subsidiary of Greece-based Macoil, with about 31% of the market in 2010, just slightly ahead of Cepsa/Peninsula at 30%, while Aegean accounted for some 23% and Bunkers Gib/Bominflot, 15%. There is a general acknowledgement that the already fierce competition both among suppliers and between the region’s ports has, if anything, been intensified by the global economic crisis.

Gibraltar Port Authority (GPA) chief executive Peter Hall tells World Bunkering: “Gibraltar’s main strengths are its maritime reputation as a bunker supply port and support services, and its location centred on the north/south east/west shipping highway. These two key factors are coupled with deep sheltered waters that can accommodate the largest of the world’s vessels.”

The main challenges are to service customers in a timely and cost effective manner that delivers a quality service. The introduction of an e-notification system will allow customers to track their vessels’ progress with regard to the service that is being given in Gibraltar. During the past year, calling fees have risen and a charge has been imposed on ship-to-ship transfers. Initial fears that this could deter business appears not to have been borne out.

Explaining the charges, Capt Hall says: “Like most business operations we review our tariffs on an annual basis. This was done against the charges levied by our nearest competitors. We adjusted our charges and continue to maintain our competitive advantage.” Congestion has long been seen as a problem at Gibraltar but Mr Imossi says there have been few problems recently. Capt Hall reinforces this, saying: “Congestion has been reduced and continues to be addressed with the introduction of the VTS system, which will deliver greater efficiencies as congestion will be further reduced.”

Expansion

In the long term, a solution to the currently very restricted area available for bunkering needs to be found. In broad terms, there are two main options: replacing the current storage vessels with shore facilities, and allowing bunkering to take place on the territory’s Eastern anchorage. The most obvious course is to bring the Kings Lines storage tanks back into use. It is understood the Gibraltar government has received at least four proposals to take over this former military facility.

Bunkering operations have been the subject of criticism by environmental groups and this was heightened by the New Flame and Fedra incidents when bulk carriers grounded and broke up on the southern tip of Gibraltar. Capt Hall says: “A number of measures have been introduced. These are an exclusion zone around Europa point, prohibited inshore anchorage zones, and a state-of-the-art monitoring system.” These measures have been backed up by improvements to procedures at GPA which was quality accredited last year.”

He adds that shifting storage to land would stem concerns, which he says are unfounded, that storage vessels pose an unacceptable pollution risk. “But there are other factors too,” Capt Hall points out, “namely the phenomenal success of this business in recent years. Faced with sustained growth in the sector, the Gibraltar government is exploring ways of meeting future storage demand. With land at a premium in Gibraltar, the King’s Lines depot is an obvious choice.”

Responding to questions in the territory’s Parliament recently, chief minister Peter Caruana said: “The government has a medium to long-term aspiration to reduce and if possible eliminate floating bunker storage.”

Bunkering in the Eastern anchorage has always been a sensitive issue but Capt Hall confirms this is now on the agenda. He says: “During the summer of 2009 a number of trial operations were carried out on the east side. These were very successful and will be expanded once the new VTS system is bedded in.”