Svitzer adapts to changing market conditions

Recent news of Kotug Smit Towage’s intention to sell it northwest European operation to Boluda indicates how established operators previously considered as ‘local’ have expanded globally with seemingly no geographical restriction and also how such arrangements with other local operators can change.

Starting with expansion news, two new tugs Svitzer Elias D and Svitzer Joaquim R have commenced operation in Vitoria as Svitzer deepens its presence in south east Brazil, the start of its second phase of expansion in northeast Brazil following on from when between 2015 and 2018 the focus was on the south and southeast of the country.

The introduction of the 32m, 70tbp, Detroit Shipyard-built pair brings the number of Svitzer tugs in Brazil to 16 and since purchasing Rio de Janeiro-based Transmar Servicos Maritimos in 2015 the company has invested around $127m in the country.

Turning to the Caribbean, Svitzer Caribbean Dominicana has secured a five-year towing contract with Limetree Bay Terminals expanding its market coverage to some of the key oil refineries and terminals in the region including: South Riding Point Terminal in the Bahamas, Nustar Terminal in Statia, Buckeye Terminal in St Lucia and now Limetree Bay in St Croix, US Virgin Islands.

The provision of the two tugs is on the back of re-activation of an idle refinery at Limetree Bay with a previous peak processing capacity of 650,000 BPD and around 32 million barrels of storage capacity. Svitzer has been providing tugs at the terminal on a spot basis for the last two years and following preparation of the two new vessels delivery of the new service is due around the time of this being written.

On the opposite side of the Atlantic, Svitzer has announced its intention to sell its Portuguese marine operations to Pioneiro do Rio Serviços Maritimos, Lda.

Svitzer’s Portuguese operation has faced declining volumes with synergy between Portuguese ports and its remaining European and global operations proving limited. The price has not been revealed but the new owner will acquire the crew and shore staff as well as Svitzer’s Portuguese tug fleet of around 15 tugs.

By Peter Barker