Singapore to remain no.1 bunkering port, helped by new guidelines

Channel NewsAsia 15 Oct 08;

SINGAPORE: Singapore is set to keep its position as the world’s top bunkering port, with the Maritime and Port Authority of Singapore (MPA) forecasting a record full-year sales volume of 33 to 35 million tonnes this year.

According to Transport Minister Raymond Lim, a total of 26.4 million tonnes of bunkers were lifted between January and September 2008, an increase of 12 percent compared to the same period in 2007.

Mr Lim revealed this at the 15th Singapore International Bunkering Conference or SIBCON, which coincides with Maritime Week 2008, on Wednesday.

The minister also unveiled a set of new guidelines and procedures for ship bunkering to ensure safety and efficiency in Singapore waters.

The new standard, the Singapore Standard SS 600: 2008 – Code of Practice for Bunkering, or SS 600 in short, is the world's first national standard for bunker suppliers and surveyors.

Besides obtaining a licence from the MPA to conduct bunkering business in Singapore’s port, bunker suppliers, craft operators and surveyors will have to comply with SS 600 when carrying out their operations.

The standard will also serve as the technical basis for resolution, should there be any disputes.

The new standard, to be phased in by the second half of 2009, will benefit the industry as it rationalises requirements under two existing Singapore standards for bunkering and bunker surveying (CP 60 and 77) and streamlines the documentation processes. This makes it easier for bunker players to ensure compliance.

It will also ensure bunkers delivered comply fully with regulations under the International Convention for the Prevention of Pollution from Ships (MARPOL) and offer customers greater assurance of fuel quality, with new requirements in place to reduce sample tampering and fraud.

"By offering greater assurance to our global customers when they call at our port to lift bunkers, SS 600 will foster further development of the bunkering industry here," said MPA's Chief Executive, Brigadier-General (NS) Tay Lim Heng.

He also described Singapore's bunkering industry as an important component of the maritime cluster, and an integral part of the country’s growth as a premier global hub port and an international maritime centre.

Call for efforts to make Singapore a maritime hub
Vincent Wee, Business Times 16 Oct 08;

REALISING that it's no longer enough to be just the world's busiest port, Singapore is gearing to be the regional hub for maritime research and development, finance, risk management and law.

'While the port is important, other countries are also developing their capabilities. Also new technology will allow some vessels to bypass Singapore,' said Jude Benny, managing partner of Joseph Tan Jude Benny.

There are many reasons why shipping and offshore companies establish a presence in Singapore, or take advantage of the Maritime and Port Authority's (MPA) various incentive schemes for alternative financing or raising capital.

Chief among these is the support received from the government. International shipowning and ship-operating companies and ship agencies, ship management, international freight forwarders and international logistics operators are given various tax breaks under the Approved International Shipping Enterprise Scheme and Approved Shipping and Logistics Scheme respectively.

'The shift to Asia, with 50 per cent of tonnage owned by Asia, presents a perfect opportunity to offer Singapore as a location for owners to operate from,' noted Mr Benny. 'To make it attractive to them we need to give them the related services, so that they need not have to go back to Europe in search of these,' he said.

These include an educated workforce, financial markets, infrastructure and other facilities. Singapore has all these factors and is also putting in serious efforts with the help of the government to develop them even further. The $80 million Maritime Cluster Fund is the broad umbrella under which all these incentives and development efforts fall. They seek to enhance maritime manpower development as well as to develop local training infrastructure and capabilities.

'All these make Singapore a suitable hub for operations. This, in turn, creates a melting pot of operators, ie a very attractive hive for ancillary service providers. So, both groups feed off each other,' said Mr Benny.

To achieve this, 'all the major service providers must be brought in', he added. For example, the top five or 10 players in ship finance, brokering, legal, insurance and various other ancillary services. 'I don't believe we can displace London - it has too much history and tradition, but we can be, geographically, the Asian self-contained alternative to London,' said Mr Benny.