Singaporean ruling on port limits draws mixed reactions<\/p>\n
SINGAPORE (Reuter): A move by Singapore to extends its port
\nlimits will help curb ship refueling in open seas, some oil
\ntraders said yesterday.<\/p>\n
However, others said the action could well turn business away
\nand hinder the island's lucrative bunkering business.<\/p>\n
Industry sources said on Wednesday that Singapore extended its
\nofficial port limits, partly to try to draw bunker trade back
\nwithin port limits.<\/p>\n
The sources said the Maritime and Port Authority of Singapore
\n(MPA) brought new port limits on its southern and eastern
\nseaboards came into operation July 11 and that shippers were
\ninformed on July 25.<\/p>\n
\"This will definitely help bunkering within the Singapore port
\nlimits,\" said a major bunker supplier.<\/p>\n
\"Those who are doing off-port-limits (OPL) bunkering will be
\nforced to enter the port for bunkering. This is bringing back
\nSingapore's image for credibility and quality,\" said the
\nsupplier.<\/p>\n
Singapore authorities have no jurisdiction over the grey OPL
\nmarket. Bunkering is not illegal off port limits, but it means
\nthere is greater risk on quality and quantity, shippers said.<\/p>\n
MPA declined to elaborate on the new boundaries but a bunker
\ntrader said he estimated the widening of the port limit
\nrepresented a three-mile southward extension of the port limits
\noff the island's southeastern and eastern coast.<\/p>\n
The port limit was extended by one mile south on the south
\nwestern seaboard, the trader said.<\/p>\n
The movement squeezes the open seas space between the port
\nlimits and the traffic separation zone -- the highway for
\nshipping.<\/p>\n
Singapore is one of the world's biggest bunkering ports and
\nhas encouraged ship owners to refuel in the port to ensure
\nquality and quantity. But many buyers opt for the OPL market to
\navoid paying port dues as save on docking time.<\/p>\n
Official data showed that Singapore's bunker sales totaled
\n16.9 million tons in 1996, a three percent drop from 1995.<\/p>\n
But the volume of bunkering carried out in the OPL market
\ndoubled in 1996 to three million tons, industry sources
\nestimated.<\/p>\n
MPA's move followed news earlier in July that Indonesian
\nauthorities had boarded several tankers refueling outside
\nSingapore port limits.<\/p>\n
The Indonesian action has reduced OPL trade and industry
\nsources said Singapore might have reached an understanding with
\nJakarta to cut back OPL trade.<\/p>\n
\"Then both countries will benefit, with more bunker sales and
\nport dues,\" said a long-time market watcher.<\/p>\n
However, some traders involved in the OPL trade cautioned
\nwhether the move would significantly help in-port bunkering.<\/p>\n
\"They've been trying hard to curb the OPL trade without much
\nsuccess in the past,\" one OPL trader said.<\/p>\n
\"Ship owners can always find cheaper bunker fuel elsewhere,\"
\nhe said, referring to cheaper port charges and bunker fuel prices
\nelsewhere in Asia.<\/p>\n
\"We can always change the location. There should still be some
\narea where we can do this,\" said one bunker supplier.<\/p>\n
\"Ship owners used to the OPL bunkering may just turn away to
\nother countries. They think they are luring business into the
\nSingapore port but actually they are pushing business away from
\nSingapore,\" another OPL bunker supplier said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/singaporean-ruling-on-port-limits-draws-mixed-reactions-1447893297",
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