The two-day Fujairah Bunkering & Fuel Oil Forum (FUJCON 2011) concluded with a message that despite global economic, political and environmental changes, Fujairah’s influence as an important international hub is set to grow.
About 266 representatives of international companies, as well as 50 from within the country, took part in the seventh forum of its kind, held at Fujairah’s Al Diar Siji Hotel, under the patronage of His Highness Sheikh Hamad Bin Mohammed Al Sharqi, Member of the Supreme Council and Ruler of Fujairah.
The forum was inaugurated in the presence of Sheikh Saleh Bin Mohammed Al-Sharqi, Chairman of the Department of Industry & Economy, Sheikh Mohammed Bin Hamad Bin Saif, Director of Fujairah e-Government, Sheikh Mohammed Bin Salih Bin Mohammed Al Sharqi and Dr. Mohammed Saeed Al Kindi, Chairman of FUJCON 2011 Steering Committee.
In his keynote address, Dr. Al Kindi stated the Emirate of Fujairah’s commitment to continued progress, to build on sustained investment based on realistic forecasts and expectations.
Looking back from the first FUJCON forum, Dr. Al Kindi hailed the growth in capacity and business handled by Fujairah as a bunkering hub, describing it as ‘impressive’. Overseeing an increase of calls from under 5,000 in 2000 to just under 12,000 in 2010, has seen Fujairah consolidate its place as one of the three top international bunkering locations, alongside Singapore and Rotterdam, he said.
The former Minister of Environment and Water said the combination of Federal-related projects and private investment is projected to continue as a strong element of Fujairah’s growth as an important and strategic hub of business, particularly in the oil-related sectors.
He said: “Private companies are now committed to building additional storage facilities as the oil market in Fujairah has developed, and will continue to develop, through bunkering and increasing trading, to become a major oil product supply hub.”
Al Kindi said there are presently 121 storage tanks representing approximately 3 million cubic meters of storage, adding that by the end of 2012, it was expected this will increase through private investment to 262 tanks representing a total storage capacity of over 7 million cubic meters.
He said: “Fujairah, and within the forthcoming years, will become one of the most important seaports which supply ships with oil fuel, oil industries and by-products.”
The industry is growing and will keep going until the port becomes a major oil supply hub in the world. Plan has been hammered out to make Fujairah the top worldwide in refueling ships, he said.
Delivering an address on State-of-the-Bunker Industry, Tom Reilly, CEO of Chemoil Energy, gave a reading of current and forecast development in the oil and oil-related industry stating that current economic, political and environmental issues are changing the game rules in the market, whereby companies are having to diversify or face being left behind.
Reilly said: “The Bunker market will remain in flux, but that’s exciting; I’d much rather have a fluid market where the industry is having to invent and explore than be in a stale steady market.”
Commenting on Fujairah, he said: “One of the reasons why Fujairah is a leading hub for the international markets is the vibrant entrepreneur spirit, encouraged by the Federal and local governments. Once Fujairah loses this entrepreneurial spirit it will lose the market.
In this global economic atmosphere, where competition is fierce, Fujairah remains a dynamic place to do business and it is a place poised for great things.” He added.
Fujairah Seaport Harbour Master, Captain Mohammed Tamir Masoud, said the final session of the forum focused on a number of key financing issues such as insurance and bank financing for petroleum projects.
Captain Masoud said there were important discussions on how to implement international marine environmental regulations from the Marpol Treaty such as those relating to carbon emission from ships and using low sulphur content in shipping diesel.
Fujairah Seaport Harbour Master, Captain Mohammed Tamir Masoud said the capacity of the port to supply ships with diesel fuel has reached 24 million tons last year, adding that the yearly rate of growth in the capacity is 4%.
Captain Masoud said the number of ships arriving at the ships waiting area opposite Fujairah seaport was 11719 oil carrying ships in 2010, 73% of them were supplied with fuel, in addition, he said, the crew replacement in Fujairah Port totals also about 1800 boarding and about the similar number boarding-off each month.
Fuad Mohammed Ali
About FUJCON:
FUJCON is a biannual event which provide an independent platform for the discussion of the industry’s latest trends, opportunities, challenges & regulations
It is a meeting point for bunker buyers and sellers as well as other sectors of the industry including ship owners, ship operators, ship managers, ship brokers, fuel oil and product traders, blenders, refiners, maritime consultants, international maritime organisations, lawyers, bankers, supply & services companies.
