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Indonesia: Krakatau International Port to offer bunkering services at Sunda Strait

05 Aug 2021

Representatives of PT Krakatau Bandar Samudera (Krakatau International Port) and PT Pertamina Patra Niaga on Wednesday (4 August) entered into a Memorandum of Understanding (MOU) to establish bunkering services providing low sulphur 180 cSt fuel oil at the Sunda Strait in Indonesia.

The signing of the MOU was carried out at the Office of the Coordinating Ministry for Maritime Affairs and Investment (Kemenko Marves).

CEO of Krakatau International Port, Akbar Djohan, said the bunkering service for marine fuel oil by Krakatau International Port is a strategic step to strengthen Indonesia as a maritime axis, especially in the Sunda Strait.

“This collaboration is Krakatau International Port’s commitment to provide the best service, especially serving ships crossing the waters of the Sunda Strait who want to refuel,” said Akbar.

Deputy for Coordination of Maritime Sovereignty and Energy at the Coordinating Ministry for Maritime Affairs, Basilio Dias Araujo, said the MOU is a realisation of Indonesia’s commitment to create and improve bunkering services for marine fuel oil (MFO) at various strategic ports in Indonesia.

“MFO with a sulphur content of a maximum of 0.5% mass by mass (m/m) is a ship fuel that is in accordance with the International Maritime Organization (IMO) mandate regarding ship fuel with a maximum sulphur content of 0.5% wt which is effective from 1 January 2020,” explained Deputy Basilio.

Deputy Basilio estimated US$173 billion worth of opportunities are available from bunkering services, crew change, and logistics provision for ships passing through the Malacca Strait, Singapore Strait, Sunda Strait, and Lombok Strait.

Referencing data for 2020, he pointed out the number of vessels passing along the Sunda Strait to be 53,068 ships (with 150 ships passing per day), while traffic at the Malacca Strait and Singapore Straits was around 120,000 ships (with 350 ships passing per day in the Malacca Strait).

“We have prepared hot spots for several strategic ports along these straits with this MFO business,” said Deputy Basilio.

“We believe that this collaboration can increase state revenues and extraordinary benefits, especially for state revenue, public welfare, and most importantly Indonesia is ready and able to provide MFO services in our strategic waters.

“In the future, ports in Indonesia will be able to provide the best service and compete with other neighbouring countries.”

PT Pertamina Patra Niaga Marketing and Commercial Director, Hasto Wibowo, said he welcomed the collaboration.

“The spirit of this program must be started immediately, it is hoped that in the next 6-12 months there will be many ocean going ships bunkering at KIP [Krakatau International Port],” he said.

 

Photo credit: Krakatau International Port
Published: 5 August, 2021

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