Peter Hall: “Gibraltar, A case study for Mauritius as a bunkering hub”

The potential exists for Mauritius to add value as a bunkering hub in the region, observes the Chief Executive of the International Bunkering Industry Association, all the more so as operators are always looking for opportunities.

BUSINESSMAG. How would you assess the potential of Mauritius as an aspiring bunkering hub?

There is a marketplace ready with around over 100,000 ships passing the doorstep of Mauritius yearly. The opportunity for the country is to engage with those customers and provide them with marine services that are safe, efficient and that comprise cost-effective advantages compared to other locations in the world. You must be a great shop window from which you could sell opportunity.

BUSINESSMAG. There are areas to improve upon, first…

Like anything else, yes. The growth is all about management so that it delivers in a consistent manner. There is no point in growing so fast that it does not deliver viability, efficiency along with good sea operations because the cost of fare can be really high.

BUSINESSMAG. How is the international bunkering industry faring right now amidst increasing challenges?

I think we are probably at the bottom of a cycle where the marine industry does not find itself in isolation. It is integrated with fuel cost, demand and supply. Freight rates are currently low for the bulk market but high for the upper market. It depends on what you are looking at. Ultimately, the bigger picture of the world is that the economy is going to try to move out of that curve. When that happens there is going to be increased demand and movement of goods and that is going to provide opportunity to places like Mauritius.

It is not about the management of growth here in Mauritius but rather in conjunction with the global economic recovery. We will be moving into a more economically viable regime within the next 12 to 24 months.

 BUSINESSMAG. Global oil prices reached a new low at the beginning of 2016. What does this trend tell us?

The industry in general is very pleased with the low oil prices. It makes transport of goods much cheaper. Will the price of oil stay low? The answer is yes because there is an oversupply. Prices will rise again in the further horizon but we cannot predict when.

 BUSINESSMAG. What can Mauritius learn from other established bunkering hubs?

Gibraltar is a great case study wherein a very small community has worked together to produce phenomenal results. They realised that for every vessel that stops to take fuel, there are additional benefits to the local community that can be tapped into, such as supplies, crew changes and stays into hotels, spare parts and so on. This adds value to the local economy, which enables other schemes in terms of tax benefits. Gibraltar is a great case study for Mauritius.

BUSINESSMAG. Can Mauritius aspire to compete with Singapore in the region?

Yes, you can add value to Singapore. It is quite a sophisticated and established market but operators are always looking for opportunities. People generally like the underdog more as opposed to the top dog but this is about more than just pricing. It is about service, relationships and adding value and that is where Mauritius can compete.

BUSINESSMAG. How do you see the future of the bunkering industry with the world looking at alternative fuels?

The timeframe of a transition from conventional sources of fuel to alternative ones can be up to fifty years. The bunkering industry is thus going to be around for some time. Having said that, operators need to consider the future and set up the infrastructure required for alternative fuels.