Mundra ambition to match Singapore prices

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

29 Nov 2007

India-based bunker supplier Adani Bunkering Services has ambitious plans for its Mundra port operations. "We want to match Singapore's bunker prices," Chandan Samaiyar, head of bunkering for Adani, told Bunkerworld at the sidelines of the 3rd Bunkering in Asia 2007 underway in Shanghai this week. Bunker fuel prices at Mundra are currently about $10-15 per metric tonne (pmt) above Singapore, according to Bunkerworld data. Adani offers duty-free, or bonded, 380 centistoke (cst), 180 cst and marine gasoil (MGO) to oceangoing ships at Mundra, which is part of Gujarat state's Special Economic Zone (SEZ). The Indian company aims to bring Mundra's bunker prices down further from the second-quarter of next year, when it says its bunker sales volume is set to increase. Adani currently moves about 50,000 metric tonnes (mt) of bunkers per month and expects that volume to hold steady until March 2008. By March next year, however, the addition of two new double-hulled bunker tankers will allow Adani to double its monthly sales volume with the aim of achieving more than 1 million mt of sales in 2008, said Samaiyar. "Once we increase our sales volume to 100,000 mt per month, we will have the capability to bring bunker prices lower so as to match Singapore's spot bunker prices," he said. The company will be taking delivery of its first 3,000 deadweight tonnes (dwt) bunker tanker during the first week of December, while the second is due in March 2008. It currently charters three bunker tankers to undertake deliveries at ports including Kandla, Sikka, Jamnagar, Bedi and Vadinar, all of which are located in Gujarat state. The company has its own oil storage facilities in Mundra, with 80,000 cubic metres (m³) of storage capacity being dedicated to bunker fuel. Products are sourced from Indian oil refiners where bunker quality is guaranteed, said Samaiyar. Adani intends to "stabilise" its operations in the SEZ of Gujarat state before moving on to supply at other Indian ports, he said.He believed that other states will soon see the advantage of having the SEZ status and will follow suit, bringing enormous benefit to India's bunker industry."Indian ports so far have not been seen as bunkering ports due to high government taxes," he told the conference delegates.Due to unavailability of specified products at all ports, high government taxes that vary from state to state and a lack of infrastructure, the Indian bunker market has remained underdeveloped, he noted.India has a coastline of 7,517 km with over 13 states, 12 major ports and 187 minor ports.