LIOC to operate bunker fuel at H’tota port?

by Lalin FERNANDOPULLE

The Lanka Indian Oil Company (LIOC) is eager to operate bunker fuel at the Hambantota Port and add value to international shipping lines, said Managing Director LIOC, K.R.Suresh Kumar in an interview with the Sunday Observer Business and Finance.

“LIOC has sought approval from the Sri Lanka Ports Authority (SLPA) to commence bunker fuel operations in the Hambantota Port following its success in Colombo”, he said.

He said bunker fuel operations at the Hambantota port will add value to international shipping lines as the port is strategically located on the East-West shipping route.

“LIOC is confident that it could add value to the operation of bunker fuel at the Southern Port with its expanding customer base and ability to serve its clients”, Kumar said.

The new Southern port which is considered the largest cargo shipment port in the region began operations with the first vessel calling at the port early this year.

“LIOC will support the SLPA and other shipping agencies to effectively market bunker fuel which will help generate business for the port”, Kumar said. LIOC commenced bunker fuel operations at the Colombo Port in 2008 and since then the company has been recording a steady growth in the business.

Kumar said that the company has been attracting new clients and it is optimistic that business will grow in the current year due to additional traffic at the port.

“We have streamlined bunker fuel operations to improve efficiency and serve customers better with timely deliveries”, he said.

LIOC has planned to set up more filling stations across the country in keeping with the demand for fuel,that has increased sharply over the years. The Indian fuel company operates a network of 155 fuel sheds in the country.

The Indian oil company set up three filling stations last year and is planning to set up 10 this year.The company took over 100 Ceylon Petroleum Corporation (CPC) fuel stations in 2003 and commenced retailing products.“We have identified locations to set up fuel sheds and have taken steps to ensure that it does not affect the network of the Ceylon Petroleum Corporation” the LIOC chief said. Kumar said that the company has been able to meet the additional demand for fuel arising from the growth of the economy, increase in the fleet of vehicles and free movement of goods.

LIOC will import petrol and diesel based on the demand”, he said. The Indian fuel company is developing infrastructure in Trincomalee and is reviewing the import requirement. Imports will be stepped up as per the need of the market in Colombo and Trincomalee. The oil company plans to make substantial investment on expansion and addition of facilities to its operations of tank farms in the East. Kumar said the company will make a substantial investment shortly as sales from the storage terminal have increased as a result of refurbishment.