DENMARK – US – AUSTRALIA – WORLDWIDE – Despite all the talk of new fuels suitable to power the world’s ocean bulk freight and container shipping fleets traditional heavy oil is likely to remain the staple diet of most marine vessels for the foreseeable future and OW Bunker, founded and headquartered in Denmark continues to expand its global operations with recent developments in the US and Australia.
The company, which acts as a physical distributor as well as reseller of marine fuel and operates a global fleet of around 30 bunker vessels, has announced the launch of physical distribution operations in Los Angeles and Long Beach, further expanding its presence in North America. The move comes less than 18 months after launching a physical offering offshore in the Gulf of Mexico, as well as a recent deal signed in February 2014 with UNIPEC America to provide products at the BOSTCO fuel oil terminal in Houston.
In combination, Los Angeles and Long Beach remain the largest container ports in North America, with just under 15 million TEUs per year. Marine fuel distribution potential remains significant, and Los Angeles and Long Beach will likely take on a key supply role for distillate fuels. OW Bunker says the move establishes its services to ensure customers are well prepared and have access to quality products ahead of the 2015 0.1% emissions control area (ECA) regulation.
Operational from April 2014, OW Bunker will take storage at the VOPAK storage terminal in Los Angeles, and will work in close cooperation with barging company, Westoil Marine Services. OW Bunker aims to supply customers in the region with a full range of quality products, including RMG380 (HSFO and LSFO), RMK500, RMK700 and MGO. Supplies of fully-tested and independently verified products will be made to customers at all berths and anchorages in Los Angeles and Long Beach.
Deliveries will be further strengthened by the presence of the David Fanning, a 5395 dwt, 2008-built double-hulled bunker barge that will supply customers in the region with a full range of quality products. The vessel has fast pumping rates averaging 715 metric tonnes per hour ensuring customers receive the most efficient service possible. Adrian Tolson, Regional Manager, OW Bunker North America, observed:
“Expanding our operations into the ports of Los Angeles and Long Beach is a natural evolution as we look to grow our presence and support for our customers within North America. Providing a fully integrated, and end-to-end physical solution for our customers that drives efficiencies into their operations, and is flexible to suit the demands of their businesses, is central in helping them to manage fuel costs and operate profitably.
“With the impending 2015 ECA regulation, it is vital that customers have a clear strategy and plan for the procurement of quality distillates to ensure compliance. Our role is to actively work with customers to implement this, guaranteeing supply in the locations where they need them and in the most cost effective and risk averse way.”
The company has now continued its strategy to further expand the company’s physical distribution presence in key global locations by launching its services in Australia commencing on the 1st April 2014. OW Bunker has leased a fuel oil tank in Port Kembla, New South Wales which will provide vessels with a full range of products including RMG 380 cSt and RME 180 cSt fuel oil via pipeline and DMA gas oil by road tanker and will also distribute products by road tankers from the ports of Sydney, Newcastle and Eden.
Recognising that Port Kembla is one of the major ports in New South Wales which services local coal and steel industries, as well as general and break bulk cargoes, motor vehicle imports, and is a key regional hub for some of the world’s leading shipping lines, OW Bunker’s own physical operation will complement the company’s existing reselling office In Melbourne, which supports customers in all key ports throughout Australia, New Zealand and the Pacific Islands. Søren Christian Meyer, Vice President, OW Bunker, commented:
“This is another important strategic step for OW Bunker’s physical distribution operation, in particular as we look to further expand our presence within the Pacific, which is an important region for our customers. We are confident that with our proven global model for physical distribution, our understanding of the region and our good relationships with local partners, we can ensure that customers receive the highest quality products and services.”
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