SOUTH AFRICA is missing out on attracting an additional 900 ships a year in Durban alone because it lacks sophisticated bunkering facilities and a free and open markets, reports the American Journal of Transportation of Massachusetts.
Speaking at the African Ports Evolution conference in Cape Town, International Bunker Industry Association (IBIA) chief executive Peter Hall said more than double the number of ships move around the Cape than go through the Straits of Gibraltar, yet South Africa's bunkering market shrinks while Gibraltar's grows.
Last year, 600 ships a day moved around South Africa, while the volume of bunkers sold hit a 20-year low in Durban with 1.1 million tonnes traded in 2012, he said.
"The country is strategically located to handle vessels servicing the increase in South American to Asia dry bulk trades as well as Asia to South America container traffic," he said.
Increased bunkering would mean increased business for port operators, oil producers, barge companies as well as international bunker traders," he said.
Mr Hall blamed limited fuel storage facilities and unreliable refinery output.
"These refineries are unable to produce the low sulphur, low carbon fuel which ship operators require. Costs are high because the supply of fuel from offshore barges is banned and there is little competition with only four suppliers," he said.
Partnering with neighbouring countries for crude purchasing and keeping port tariffs competitive could also revitalise an industry "on the verge of collapse", he said.
The IBIA believes the South African government should examine the potential impact of a successful bunkering sector on the country's GDP and develop a strategy in partnership with industry stakeholders, including the oil majors who own the current aging infrastructure.
"It is time that that we all awoke to the enormous potential that is currently lying dormant in South African ports. The annual gain of an additional 900 ships a year in Durban for example would contribute an estimated ZAR2.4 trillion (US$126 million) a year to the South African economy, excluding the value of bunker sales," Said Mr Hall.
WORLD SHIPPING
29 August 2013 - 21:17
South Africa fumbles chance to attract many ships through bad bunkering
SOUTH AFRICA is missing out on attracting an additional 900 ships a year in Durban alone because it lacks sophisticated bunkering facilities and a free and open markets, reports the American Journal of Transportation of Massachusetts.
WORLD SHIPPING
29 August 2013 - 21:17
South Africa fumbles chance to attract many ships through bad bunkering
This news 8725 hits received.
These news may also interest you