Djibouti now competing with giants as a ship to fuel location

Red Sea Bunkering (RSB), a Djibouti based ship to ship fuel bunkering service company formed by Djibouti Ports and Free Zones Authority (DPFZA) and UCIG, stated that it has expanded its business in the region.
The company that was formed as an exclusive fuel operator throughout Djibouti and territorial waters of Djibouti has been one of the companies promoting its business at the recent international trade fair and regional integration forum organized by Chamber of Commerce of Djibouti.
Officials of the company told Capital that 65 percent of the shipping activity in the world passes via the corridor in Djibouti.
The company is formed with the aim of ship fuel delivery. We own the ship and the fueling operation offshore. “In the last two years we already filled 600 main international ships that did not plan to come to Djibouti but on their route to the sea,” the officials said.
DPFZA has the major share of RSB with 55 percent ownership and the balance is for UCIG.
“The company is a unique, nobody has made this before. We invest in our ships and the ship which delivers the fuel belongs to the company’s ownership,” Abdi Ismail, Deputy General Manager of RSB told Capital.
The company is supplying fuel for vessels of Ethiopian Shipping and Logistics Services Enterprise.
Previously, Ethiopian vessels were getting the heavy fuel from the Gulf. They were only getting diesel in Djibouti because heavy fuel was not available here.
“We have been in Addis Ababa and met the management of the enterprise to explain about the company and now we are providing the heavy fuel on their way to the gulf,” Abdi explained.
The current annual turnover is about USD 90 million, while it is very young. The company is currently is supplying fuel for huge international shopping companies.
The offshore bunkering services will be available at both inner and outer anchorages.
Djibouti is strategically located near the world’s busiest shipping lines, controlling access to the Red Sea and Indian Ocean. Apart from being a major bunkering and trans shipment centre in the region, it is also a burgeoning commercial and trade hub.
The new company has helped Djibouti compete with prominent fuel providers of Jeddah and Salalah.