Growing bunker volumes of Saint Petersburg port

Negative results

According to the information provided by the Administration of the port of Saint Petersburg, the port’s cargo turnover fell by 7% in the 10-month period of 2006, y-o-y, amounting to 44.84 million tons. Over the reported period the port’s stevedoring companies accepted and handled 23 064 vessels, which is 12% less compared to the first ten months of the previous year. Transshipment of export oil products also decreased to 10 920.5 thou tons against 13 577.2 thou tons in the similar period of the previous year.

In January-October, sale of bunker fuel totaled 1 371 889 thou tons. According to Analytical Department of the PortNews IAA, this result is 9.8% higher compared to that of January-October 2005. The share of heavy fuel oil sold from the beginning of the current year makes 83% of total bunker sales. The rest 17% falls on light fuel. The proportion was almost the same in 2005: dark oil products covered 82% of the whole bunker market of Saint Petersburg.

Holding the position

From the beginning of the year about 50 companies were engaged in bunker operations in Saint Petersburg. The majority of them participated in sale of both light and dark fuel. In 2005, 44 market players had narrower specialization: only 36 companies participated in sale of heavy fuel oil while sale of diesel fuel was a specialization of just 29 companies.

The list of Saint Petersburg bunker leaders has seen no changes for the last two years: Baltic Bunkering Company LLC, Lukoil-Neva LLC, ECO Phoenix Holding OJSC, KONTUR SPb LLC. Baltic Bunkering Company is at the top of this list as it demonstrated the highest results in sale of heavy fuel oil and diesel fuel. Market leaders cover 54% of all bunker fuel sold at the port over the reported period.

In 2005, Lukoil-Neva LLC was only the fifth company among the suppliers of heavy fuel oil, while this year the company has climbed up to the third position in terms of sales volume at the regional bunker market. It should be first of all attributed to unlimited access of Lukoil-Neva to low-sulfur heavy fuel oil, which is produced mostly by Lukoil refineries in Russia. As for the market of light fuel, the company still holds its leading position.

New bunker terminal built in spring 2006 at the port of Saint Petersburg by Transbunker Group of Companies – the largest player of Russia’s bunker market – has not started active transshipment of oil products yet. Its activities are hindered by the dispute between the business units for ownership of the berth involved in the project. However, it did not prevent Transbunker GC from sale of marine fuel at the bunker market of Saint Petersburg. Having signed agreements with Saint Petersburg companies possessing berth facilities necessary for oil transshipment, Transbunker managed to demonstrate high professionalism of its traders (sales are carried out by Transbunker-Baltic LLC). In the 10-month period the Group was in the list of ten leaders in sale of light and dark fuel at Saint Petersburg port.

Flagman SPb LLC, member of Flagman Group of Companies (the Group includes Marijsky refinery) failed to enter the list of ten leading bunker suppliers of Saint Petersburg port in 2006.

Growing dynamics

Starting from 2000 the analysts of the PortNews IAA have been monitoring the bunker market of Saint Petersburg port. On the basis of its results they note stability of the market and dynamic growth of sales during last six years. Major market participants are successful in holding their positions. Among new players striving to get their own share at the regional market, Transbunker GC is worthy of attention since it has its own terminal at the port as well as extensive plans aimed at berth development.