Urgent issues of the bunkering forum
The first all-Russia Forum Current State and Perspectives of Russian Bunkering Market Development was held the past week in Saint Petersburg. Among the key issues the Forum considered customs legislation, economic and legal risks related to bunkering industry, production infrastructure of bunkering companies. Special attention was paid to the ban on the use of single-hulled vessels in Russian ports.
Forum participants
The Forum was organized by Russian Association of Marine and River Bunker Suppliers, the only Russian public organization representing the interests of the bunkering industry. According to the Organization’s press release, the need to hold such an event was frequently declared by the industry experts as the existing conferences are dedicated mainly to global problems, while specific issues of the Russia market are not given attention enough. The Forum was supported by Military Insurance Company OJSC, Gazpromneft Marine Bunker LLC, LUKOIL-Neva LLC, Nevsky Shipbuilding Yard etc.
Among 140 delegates Forum saw almost all significant players determining the situation at the market as well as the managers of the companies operating in related industries (insurance, financial, oil, legal) as well as top-management of banks, shipyards, equipment suppliers. As for governmental authorities, the Forum participants included the representatives of St. Petersburg Administration, Federal Customs Service and RosMorPort FSUE.
The Forum delegates represent all the main navigation regions of Russia (Kaliningrad, Murmansk, Archangelsk, Black Sea and Sea of Azov Basins as well as inland river ports). There were representatives of over 10 Far Eastcompanies. Despite the event’s format, the Forum was attended by the experts from a number of European countries including Latvia, Estonia, Denmark, Cyprus and Great Britain.
Forum issues
The issues considered by the Forum participants covered the perspectives for the development of Russian ports and bunkering of vessels as the key port service, production infrastructure of bunkering companies as the key competitive advantage and the means to optimize the costs and prices for bunker fuel. Besides, the Forum considered economic and legal risks in bunkering industry: non-production demurrage of vessels, supply of low-quality fuel, de-bunkering, non-payment, oil products available at the Russian market (those for production of bunker fuel), as well as customs legislation issues.
Key issue
The closest attention was paid to the ban for the use of single-hulled vessels in the ports of the Russian Federation. According to the market experts, direct compliance with the ban is likely to paralyze the bunkering industry as over 90% of bunkering tankers are single-hulled today. Experts are sure that the above ban will have a negative impact on both Russia shipping industry and the entire national economy. “The tankers are being gradually replaced in all the civilized countries, where business is provided with a long buffer period for several years as a rule,” Vitaly Kovalev, President of Russian Association of Marine and River Bunker Suppliers, told the Forum. “As for our country, the Flag Administration failed to warn in advance about any possible limits for the use of single-hulled tankers operating within the territorial waters of the Russian Federation.”
Among the possible negative consequences of such a decision the Forum participants called the attention to the decrease of Russia ports’ attractiveness, loss of market positions and occupation of the market by foreign rivals as well as the failure of export program on export of crude and oil products by water and high probability of corruption.
Besides, the Forum participants expressed their confidence the professional opinion would be heard and the buffer period (considering actual possibilities of Russian shipbuilding and ship repairing enterprises), necessary for easy transfer to operation complying with MARPOL requirements, will be set up by the legislation.