Aegean to exit S’pore marine refuelling hub by January

SINGAPORE: Aegean Bunkering Pte Ltd will halt physical supply operations in Singapore by January, said the company, becoming the fourth such firm to exit the world’s largest marine refuelling hub after it adopted tougher bunkering procedures this year.

Since adopting mass flow meters (MFM) to streamline operations on marine refuelling, or bunkering, barges at the start of the year, suppliers, here, have seen margins squeezed and competition surge in the battle for market share.

“This year has seen heightened commercial pressures in Singapore, and as a result, management has determined that Aegean’s resources can be more profitably deployed elsewhere,” said its president Jonathan Mcilroy in a statement on Tuesday.

“We had hoped that enforcement of mandatory MFMequipped bunker barging in January would have driven commercial improvement in the Singapore market, allowing Aegean to compete profitably,” he said.

The exit plan surprised some at the company’s Singapore office, which was “doing okay as far as profits were concerned”, said a source.

Aegean was in the process of arranging its withdrawal from the physical supply market, here, in conjunction with the Maritime and Port Authority of Singapore and its barging and cargo partners in the market, said the company.

“All deliveries and contracts that we have booked with clients’ vessels, cargo providers and barge contractors will be fulfilled,” Mcilroy added. Reuters