KZN Bunkers creates a new name in bunker services

Putting the BEE into bunkers
TERRY HUTSON
IT MIGHT be a new name but the business has been around for a long time – KZN Bunkers is one of South Africa’s longest-established ship bunker services, previously known as FFS Bunkers. Recently KZN Oils, which for several years has had a 26% stake in the bunker company, acquired the balance to create South Africa’s first fully black empowered bunker operator. Rajen Reddy, the Durban-based entrepreneur who created KZN Oils out of literally nothing and has turned it into a multi million rand oil distribution company, saw in FFS Bunkers a stable and long-term business that also possessed a depth of expertise in its personnel . When Tony Hurter, chairman of FFS Refiners, indicated his willingness to sell the bunker side of the business, it didn’t take Reddy long to make the decision, he told FTW. Reddy said he was impressed by the spirit in which Hurter and the FFS Refiners board approached the sale of the bunker business, as well as by the confidence and support shown by the existing staff in the 23-year old company. “There are exciting times ahead for all of us. There were so many positives they outweighed any negatives. Yes we will have to invest in at least three new bunker barges to meet with higher international standards in South African ports (double hulls), and yes each barge is going to cost us in the region of R40 to R60 million to build, but we’re fully confident of the future. “You know, I learned recently that one of our vessels is the only South African vessel remaining on the South African Ships’ Registry – the bunker supply tanker Dolphin Coast. Now that means something, at least it does to us. It says we have something here to grow, and we’re proud that it’s going to be a fully black empowered company that will be doing the growing. We’ve bought the asset and saved the business and kept the personnel. Now we intend to grow it.” Reddy said the barges would be built locally, further strengthening South Africa’s maritime presence. “We need to create faith in our local industry and will not be going offshore,” he said. Negotiations with potential builders has already begun in order that the January 1, 2008 deadline for double-hull vessels is met, and barge number 1 is likely to be in the pipeline before the end of June.