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Defending the Rock of Course, There Are Concerns

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Defending the Rock of Course, There Are Concerns EUROPE • GIBRALTAR Defending the Rock Of course, there are concerns. (2015) was a notably positive year for In the staunchly pro-EU GPA; as well as an increase in British Overseas Territory of ‘We have been doing work as part of bunkering volumes, it recorded a Gibraltar, all discussions the Government initiative to try to 13% increase in cruise calls, and 60% these days centre on Brexit, predict the impact of Brexit and look increase in superyachts calling. ‘After reports Felicity Landon at where the threats and opportunities our increase in activity last year, we are,’ says Commodore Bob are holding steady this year, despite Gibraltar was quick to respond to Sanguinetti, ceo of Gibraltar Port an increase in competition in the the ‘leave’ result of the UK Authority. ‘The obvious point is that region,’ he says. Year to date, cruise referendum on European Union our location isn’t going to change and calls are up 18% and superyachts up membership in June. Within days, its what the port in Gibraltar has been 37% compared to 2015. ministers were meeting with and doing for decades, if not centuries – seeking reassurances from the UK supporting the shipping community – The GPA has been focusing strongly Government; and the Government we will carry on doing. on its Eastern Anchorage, aiming to of Gibraltar, working with the attract more ships to stay for private sector, embarked on a ‘Where we can, we will turn longer for crew changes, consultation exercise to assess the the situation to our advantage provisioning and other impact of Brexit. The data gathered and wherever we can add services. ‘This is up 55%, so our will feed into a ‘master plan’ on value, we will develop our strategy is working,’ he says. which to base discussions with the services,’ he adds. UK Government. In November, Gibraltar will One of Gibraltar’s unique host the annual convention of Bob Sanguinetti ‘The Rock’ has always punched well advantages is its status outside the International Bunker beyond its weight in maritime terms. It is the VAT framework, Sanguinetti Industry Association conference, an acknowledged as the Mediterranean’s continues. ‘That isn’t going to change event that Sanguinetti says is an leading bunker port, offering low-priced, and it might even become more opportunity to showcase Gibraltar not VAT-free fuel, thanks to its position advantageous to Gibraltar. What is just to the bunkering community but inside the EU as part of the UK, but worrying is the uncertainty in the minds also the shipowning and operating outside the EU’s VAT jurisdiction. The of shipowners and operators bringing community. ‘So they can see first-hand Gibraltar Ship Register benefits from its ships to Gibraltar – they don’t know what we do and how we do it, and the status as a Category 1 member of the what the impact will be, although so far wide range of services on offer. Red Ensign Group while offering an there has been no impact.’ Hosting this even reinforces our status attractive European flag option. Gibraltar as the premium bunkering port in the provides the comfort of a system based Brexit aside: ‘Despite the increasing Mediterranean.’ on English common law, and a severity of the crisis affecting European location at the ‘gateway’ shipping globally, we are holding our In fact, the Rock looks set for a major between the Med and the Atlantic. own,’ says Sanguinetti. Last year step forward in bunkering. At present, it Visit: seatrade-maritime.com Seatrade Maritime Review • Quarterly Issue 4 • December 2016 61 EUROPE • GIBRALTAR has a floating storage solution for In August the Government signed an for bunkers to ships at anchor. This is bunkering fuel, using a tanker moored agreement with Shell for the supply of clearly a new business – we are alongside the Detached Mole; earlier LNG for use in power generation. The working closely with Shell to identify this year, the Government invited agreement includes the construction of customers and promote the business.’ proposals for the design and a small re-gas unit that will receive, store construction of a land-based marine fuel and re-gasify the LNG arriving by ship. Also in August came confirmation that a storage facility, something bunker new Vessel Traffic Services (VTS) system suppliers have long been pressing for. A ‘Obviously this is a very exciting has been ordered from Kongsberg decision is expected soon. prospect,’ says Sanguinetti. ‘The LNG Norcontrol. Port Minister Paul Balban plant to supply the power station will said: ‘The project represents an important Gibdock be ready this time next year. And investment in the port infrastructure. KNC Gibraltar will, subject to all the will provide the port authority with one of Gibraltar post-Brexit vote is still environmental and safety processes the most modern VTS systems in the buoyant and open for business and and checks being completed world to oversee shipping traffic in the Gibdock is very satisfactorily, be able to deliver LNG busy waters around Gibraltar.’ G much part of that, says md Gibraltar Ship Register Richard Beards. The Brexit referendum result has caused problems being experienced by our ‘As a shipyard some confusion and uncertainty for traditional clients in the shortsea we are used to some clients of the Gibraltar Ship shipping and oil/gas industry,’ says adapting and Richard Beards Register, but it is still too early to see Montado. ‘Many newbuilds are now taking up the what will happen, says maritime going straight into lay-up and are riding new challenges that come our way. administrator Richard Montado. out the current economic situation.’ It will be the same with Brexit. Things might change a bit in the ‘We are working to reassure them that A number of Central and Northern future and people will change how it is still ‘business as usual’ for us and European flag states have also been things are done but we will jump there are no changes to our services.’ revising their domestic legislation to over any hurdles.’ entice domestic owners to return to However, there are clear implications. their home flags, he says: ‘We have One positive has been the lower ‘Hypothetically speaking, if Gibraltar seen a lot of movement back to the pound, he says. ‘That is starting to were to lose its EU member German, Norwegian and kick in and help us – and the other state register status, it would Swedish registers over the past thing that is keeping us busy is not be an attractive register 12 months, whereas many of scrubber retrofit projects.’ for shipowners who these clients would have opted exclusively engage in regular for an alternative European Gibdock has been working on a five- intra-European trade,’ says registry like Gibraltar or Malta. ship scrubber refit project, making Montado. Vessels trading Nevertheless, we are seeing use of Pad 1, the prefabrication and exclusively in the EU want an significant interest from Richard Montado assembly created last year, also EU flag, he points out. shipowners in the Netherlands, used for offshore projects. particularly with newbuilds, and we are ‘Nevertheless, the opportunity to be looking to diversify our overall portfolio June was a record-breaking month more flexible with some pre- in new markets.’ for offshore-related work, with Q2 as registration requirements like marine a whole exceptionally busy, says equipment and other EU-exclusive Brexit or not, the flag would have to Beards. Demand has since slackened features would make us extremely diversify anyway, he points out. ‘We but Gibdock has received two competitive overall. At the end of the have to get into foreign markets to ‘strong enquiries’ for coming months. day, European status is just one build up the fleet, something we have incentive to register; we are a high- been working on in the past two years.’ ‘Offshore is in a very difficult place – quality British registry with an we all know that – and there is no excellent port state control (PSC) In general, the registry is investing in immediate sign of recovery. But record. Financial lenders see us as a its online services, expanding its social there is still offshore work out there low-risk option and our pricing models media presence, and looking to open and it comes back to trusted are extremely competitive.’ offices outside Gibraltar. ‘We are a partnerships and the delivery of Government department, not run on quality and safety that the offshore At present the Gibraltar-flagged commercial lines like the big registers,’ world needs, along with Gibraltar’s commercial fleet stands at 288 ships says Montado. ‘But we are definitely location,’ says Beards. Cruiseship totalling 2.8m gt. ‘The registry growth adopting a more commercial approach and MoD work are meanwhile has been quite flat over the past two and it is important to have a presence helping keep the yard busy. years, owing to the ongoing financial outside Europe and outside Gibraltar.’ 62 Visit: seatrade-maritime.com Seatrade Maritime Review • Quarterly Issue 4 • December 2016.
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