Singapore tightens rules after bunker fuel scandal<\/p>\n
SINGAPORE (AFP): Singapore, the world's top bunkering port,
\nannounced yesterday that it was tightening procedures following
\nofficial confirmation that bunker fuel sold to some vessels here
\nwas contaminated.<\/p>\n
Under the new rules, bunker suppliers must now comply with
\ninternational standard specifications, Minister of State for
\nTrade and Industry Goh Chee Wee said.<\/p>\n
Suppliers were required to use improved equipment and
\ndocumentation procedures for determining actual bunker quality
\nfrom fuel samples, Goh said in his opening remarks at an
\ninternational bunkering conference.<\/p>\n
The new rules, effective Aug. 1, would be incorporated in the
\nSingapore Bunkering Procedure (SBP) governing the supply of fuel
\noil to the more than 100,000 ships calling here annually.<\/p>\n
The SBP was introduced jointly in 1992 by the Port of
\nSingapore Authority (PSA) and the Singapore National Shipping
\nAssociation, both of which earlier this month confirmed that fuel
\nsold here to 12 vessels was contaminated.<\/p>\n
Several of the vessels reportedly unloaded the fuel which
\ncaused engine damage.<\/p>\n
Goh said that the SBP changes, which also require licensing of
\nall bunker craft owners and operators, would help assure high
\nquality bunkers to shipowners, charterers and operators.<\/p>\n
Bunkers are barge size lots (1,000 tons) of fuel oil for
\nships.<\/p>\n
\"Bunker craft owners and operators have to ensure that all
\noperational equipment on board their craft are maintained in good
\ncondition, and that proper tank gauging and sampling procedures
\nare complied with during bunker deliveries,\" he said.<\/p>\n
Competition<\/p>\n
Industry analysts said Singapore quickly moved to resolve
\nproblems over fuel quality to ensure that its leading position
\nwas not threatened by increasing competition from ports in
\nnorthwestern Europe, the Middle East and South Korea.<\/p>\n
Rotterdam continues to be competitive because of increasing
\nfuel oil supplies resulting from fuel substitution policies in
\npower generation, said the analysts at the 7th Singapore
\nInternational Bunker Conference.<\/p>\n
The Middle East ports such as Fujairah of the United Arab
\nEmirates are also well placed to serve the bunker needs of
\ntankers loading crude oil and products, they said.<\/p>\n
South Korea which has been aggressively expanding oil refining
\ncapacity in recent years has surplus fuel oil for the bunker
\nmarket.<\/p>\n
\"The gap between Korea and Singapore would be narrowed in the
\nnear future as Korean suppliers have efficient blending skills to
\ncut costs considerably,\" said T.S. Koh, bunkering manager of
\nYukong Ltd., a South Korean oil refining and chemical enterprise.<\/p>\n
U.S. Federal Maritime Commissioner Ming Chen Hsu, in her
\nkeynote address at the conference, said that the global bunker
\nfuel industry was set to expand even further with rapidly-
\nincreasing international trade.<\/p>\n
\"The demand for shipping services and, consequently, for the
\nfuels on which those services depend, appears extremely positive.
\nEspecially here in Asia,\" she said.<\/p>",
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