General Discussion

• India-Srilanka bunkers
• Rohit Gupta
  Vinergy International Pvt. Ltd
  GMT 13:05
  2nd Jun 2007

  Why are Srilankan bunkers more than Indian bunkers? Specially when India exports fuel to Srilanka!!!
  
  Who do you feel will be a bigger player in the next 3 years amongst the 2???
• Lee Hong Liang
  Petromedia Pte Ltd
  
  GMT 10:13
  4th Jun 2007
  IP: x.x.69.134

  Dear Gupta,
  
  There are a few reasons why Sri Lanka prices are more expensive compared to India.
  
  Like what you've said, India exports fuel to Sri Lanka, and most products in Sri Lanka have to be imported, resulting in higher bunker prices.
  
  Moreover, bunker storage capacity in Sri Lanka is limited.
  
  There are currently only two major bunker suppliers in Sri Lanka, namely Lanka Marine Services and Lanka Maritime Services. The lack of competition within the market itself is another cause of high posted prices.
  
  The ability of Sri Lanka's bunker market to flourish depends on the success of its Hambantota port project, where a bunkering terminal will be built. The bunkering terminal is expected to deliver 500,000 mt of oil products annually.
  
  The Hambantota project is expected to be completed in three years. Until then, bunker prices in Sri Lanka are not expected to become competitive to India's.
• Rohit Gupta
  Vinergy International Pvt. Ltd
  GMT 10:45
  4th Jun 2007
  IP: x.x.125.63

  Dear Liang,
  
  The Hambantota port project will give a major boost to the Srilankan bunker industry.. but what is really suprising is that the Srilankan prices being higher than that of India's; Are able to do around 5 times the volume compared to India.. Srilanka- 2.5 MMT and India is around 0.5 MMT
  
  Why do you feel this difference of 2 MMT exists??
• Lee Hong Liang
  Petromedia Pte Ltd
  
  GMT 08:56
  5th Jun 2007
  IP: x.x.69.134

  India's annual bunker sales is mostly likely in the range of 1.0 million mt, higher than what you have estimated. But it is no doubt true that Sri Lanka commands higher bunker sales than India.
  
  Sri Lanka bunker players have always maintained that the island-state's geographic position is more suited for bunkering. The port of Colombo, for example, is situated strategically for shipping routes along the India Ocean.
  
  Moreover, the quality of bunker fuel in Sri Lanka has been good most of the time. From speaking to the locals, poor quality bunker fuel is seldom heard of in Sri Lanka, while India does face some instances of poor fuel quality now and then.
  
  Buyers would rather stop in Sri Lanka and pay more to ensure better quality fuel than risk having to debunker.
  
  These may not be the only reasons for the gap in bunker sales between the two countries, but it certainly does make some difference.
• Rohit Gupta
  Vinergy International Pvt. Ltd
  GMT 13:17
  11th Jun 2007
  IP: x.x.125.63

  Can you give rough estimates, as to how many vessels call at the various ports in Sri lanka. and pass the IM route, yearly... i am trying to understand as to what percentage of the vessels passing through the route have taken bunkers from colombo.
• Lee Hong Liang
  Petromedia Pte Ltd
  
  GMT 10:04
  13th Jun 2007
  IP: x.x.69.134

  We wouldn't be able to give you any figures on the number of vessels calling at Sri Lanka. Only port authorities would record those figures.
• Kamal Tolani
  Fuel and Marine Marketing Middle East Ltd.
  GMT 09:36
  14th Jun 2007
  IP: x.x.212.21

  What kind of vessels run these routes?
• Lee Hong Liang
  Petromedia Pte Ltd
  
  GMT 10:36
  14th Jun 2007
  IP: x.x.69.134

  Local port authorities would have a clearly idea exactly what kind of vessels ply the Sri Lankan routes.
  
  Looking at Sri Lankan port activities, textiles and garments account for about 60% of the country's export. So the main vessels that run those routes should be containerships and general cargo vessels.
  
  15% of exports fall under plantation crops, which would require reefer containers.
  
  Again, I'd suggest checking with the port authorities for a definite answer.
• Siddharth Paradkar
  IOTL
  GMT 07:26
  30th Jan 2008
  IP: x.x.98.148

  Hi,
  
  I am looking out for info on bunkering service in SL.
  Could advise me on size of the market, key player in this area, also what kind of storage facilities are available in SL
  
• Ameen Raheem
  Maritime Agencies Ltd
  GMT 11:30
  30th Jan 2008
  IP: x.x.42.72

  Bunkers in Sri Lanka are expensive for a number of reasons; a small market of approx. 120 - 140,000 MT a year between 3 players Lanka Marine Services - LMS(120 TMT in 2006), Sri Lanka Shipping Group (Lanka Bunkering and Lanka Maritime repeat Maritime not Marine (so styled I guess to confuse customers (10 - 15 TMT in 2006)) and Lanka Indian Oil (LIOC) under 500 MT (entered the biz only in May 2007 from the Port of Trincomalee and marketing only MGO. Besides the country is an importer of petroleum products in small parcel sizes to serve its 4 million MT domestic market, small refining capacity (only 50,000 bpd from 1 refinery, a privatization process that did not
  bring the desired results, a difficult bunker licensing regime, lack of shore tanks besides those held by the Nationa Oil Company Ceylon Petroleum, LIOC & LMS.
  Ameen Raheem
  General manager, Bunkering & Marine Services Division
  Email ameen.raheem@mal-lk.com
  Tel 077 3428600
• Lee Hong Liang
  Petromedia Pte Ltd
  
  GMT 02:54
  27th Mar 2008
  IP: x.x.172.198

  Chances of Sri Lanka bunker prices coming down this year looks rather bright, though it could be between $10-40 pmt, local players have speculated.
  
  CPSTL is now converting tank farms in Colombo port for bunker fuel usage, while CPC has found a bunkering partner mainly for barging operations.
  
  Also, the Hambantota bunkering terminal project in the south is underway, adding more onshore bunker storage capacity for the country.
  
  Overall, general sentiments about Sri Lanka's bunker market growth look positive. We'll see the results as the various developments unfold this year.