Dalian Free Trade Zone launches operational models to boost bunkering

The Dalian Area of China (Liaoning) Pilot Free Zone on Tuesday (12 November) launched two operational models, namely the ‘collection and distribution’ and ‘dual dynamic warehousing’ models, to help Chinese bunker suppliers improve fuel delivery and product storage operations.

The initiatives, introduced by the Dalian Free Trade Zone Management Committee and Beiliang Port Customs, are the first in China and will be implemented at Dalian Port for the Chinese bonded bunkering industry on a non-compulsory basis.

The ‘collection and distribution’ model will have participating bonded bunkering firms centralise delivery operations to tankers managed by Beiliang Port Customs which will schedule bunker deliveries in batches.

A merged application, centralised examination and approval process will greatly reduce the waiting time and the number of storage and delivery times for the bunkering tanker, notes Dalian Free Trade Zone.

The model will also avoid excessive fuel consumption, significantly reducing the operating costs of enterprises, and improve the fuel supply service of enterprises.

“According to statistics, the supply of 1,000 ships in the existing supervision mode can be completed by only 143 ships under the ‘collection and distribution’ supervision mode, and the compression ratio reaches 85.7%,” it explains.

The ‘dual dynamic warehousing’ model dynamically adjusts the capacity of bonded bunker fuel storage facilities according to actual needs. It is expected to save fuel storage fees for participating bunkering firms by at least CNY 4.2 million (USD 600,000) per year.

“Under this model, the storage method is more flexible, the utilisation rate of storage tanks is improved, the vacancy rate is reduced, and the storage capacity is adjusted,” it states.

The original Chinese press release from Dalian Area of China (Liaoning) Pilot Free Zone can be viewed here.

Photo credit: Manifold Times
Published: 14 November, 2019