Creating The First Sale Of Low Sulfur Fuel: Kip Improves Maritime Business Services In The Sunda Strait

September 08 21:40 2021

As a follow-up to the signing of the MoU in early August, PT Krakatau Bandar Samudera (Krakatau International Port/KIP) concocted the first Low Sulfur Fuel Oil (LSFO) bunkering service in the Sunda Strait by filling 160 Metric Tons (MT) or equivalent to 175,000 Liters into the MV vessel, Elona, on Friday (27/8). This inaugural sale was witnessed directly by the Deputy for Coordination of Maritime Sovereignty and Energy of the Coordinating Ministry for Maritime Affairs; Basilio Dias Araujo, CEO of KIP; M. Akbar Djohan, and Director of Central Marketing and Commerce of PT Pertamina Patra Niaga SH C&T; Hasto Wibowo.

This inaugural Marine Fuel Oil (MFO) maritime business proves that KIP’s grand strategy to build an oil and gas bunkering ecosystem as an expansion strategy in the maritime business along the Sunda Strait has the potential to be truly realized. “One of them is the expansion into selling fuel products for ships that are low in sulfur,” said KIP CEO Akbar Djohan. 

MFO with a sulfur content of a maximum of 0.5 percent 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 sulfur content of 0.5% wt which was effective from January 1st, 2020. 

“This strategy is not only projected to increase profits for the Krakatau Group, but it will strengthen the energy supply chain, especially oil and gas along the Sunda Strait, where MFO products are used as the company’s new ‘engine’ in achieving even better growth,” added Akbar Djohan.

Observing the large economic opportunities that have not been optimized so far, especially the thousands of ships — both large and international cargo-sized — passing along the Sunda Strait, Akbar believes that the “economic and opportunity loss” is due to the absence of fuel oil bunkering services for commercial ships in the Sunda Strait has great potential to be synergized with Pertamina Patra Niaga. 

“This is a form of synergy and symbiotic mutualism in order to support the government’s program to encourage Pertamina products and strengthen energy supply chains in the Krakatau Integrated Port Area,” explained Akbar Djohan by stressing that KIP’s commitment to make the Sunda Strait a strategic port that can serve all ship needs with international standard services continue to be improved and maintained.

“This first bunkering is proof that KIP continues to strive to develop a more complete range of services to meet the needs of shipping and maritime businesses in Indonesia, especially in the Sunda Strait, so that ships passing and stopping in the Sunda Strait are easy to fill up with fuel and other logistics services,” he explained.

In addition to bunkering Marine Fuel Oil (MFO), KIP will realize integrated port services by completing its port facilities such as the Port Reception Facility, ship chandler, first emergency call for ships and crew, especially during the COVID-19 pandemic, and crew change. “We will be complementing Krakatau International’s port services to become integrated port services, this [effort] is to fulfill our target of serving 5,000 ships in 2026,” said CEO Akbar Djohan.

Meanwhile, Central Marketing and Commercial Director of PT Pertamina Patra Niaga SH C&T; Hasto Wibowo, appreciated the collaboration that occurred with KIP, due to the fact that this is impeccable for the realization of Indonesia’s maritime power, “Synergy with KBS (Krakatau International Port / KIP) is a strategic step to strengthen Indonesia as a maritime axis, especially in our strategic waters. With the presence of Pertamina’s services at this strategic point, it is hoped that it can support the country’s economic growth and most importantly, be able to prove to be able to provide the best service in our strategic water areas. In the future, Pertamina’s target is to be able to compete with other neighboring countries in LSFO bunkering services,” concluded Hasto. 

This received appreciation from the Deputy for Coordination of Maritime Sovereignty and Energy of the Coordinating Ministry for Maritime Affairs; Basilio Dias Araujo, he thanked the companies for the cooperation carried out by KIP and Pertamina Patra Niaga so that the First Bunkering Services can be realized quickly; “I appreciate KIP and Pertamina Patra Niaga for the realization of the First Bunkering swiftly. We believe that this cooperation can increase state revenues and extraordinary profits, especially for state revenue, public welfare, and most importantly Indonesia is ready and able to provide MFO services in our strategic waters area,” he insisted.

Currently, KIP is in possession of 17 jetties with several international-standard facilities, such as pilotage & towage, mooring-unmooring, stevedoring, jetty management, and integrated logistics services that can serve 800 vessels annually. KIP also has a Continuous Ship Unloader (CSU) with a speed of 1,300 tons/hour which is integrated with an integrated warehouse (IWH) with food grade standards. In total, KIP can serve 25 million tons of bulk goods per year by accommodating large vessels up to 200,000 DWT.

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