The dissertation sets out to identify the reasoning behind why there has been a decline in bunker callers to the port of Durban at a time when there has been an increase in shipping activity and other ports around the world have experienced rapid growth in their bunker markets. It was first necessary to establish that there has been a fall off, what the economic impact of the fall off was and then to analyse the current operational procedure and the strengths and weaknesses of the port. The ports of Singapore and Gibraltar are looked at as they are two ports where bunkering has grown over the period Durban has seen a decline. The SWOT analysis of Durban takes into account the survey that was conducted by IBIA to ascertain what were perceived to be the main factors behind South African ports losing bunker business The type of ship that calls at Durban for bunkering and what is the most common voyage route are identified. It was found to be a handy size ship with the last port of call being a South American port. The cost for the voyage and the port call at Durban are calculated to work out the maximum time the ship should be at Durban from arriving outside to once again sailing. It is found to be twelve hours. The relationships of the parties to the bunker operation are analysed to see where it would be possible to introduce efficiencies to the supply chain and how to reduce the overall port stay to under twelve hours. Over an above this the port costs are reviewed as there are areas where discounting could be introduced to once more encourage owners to call A major stumbling block to the whole process is the unreliability of supply with the port being unable to provide bunkers 11% of the time. The need to address the stock management problems experienced by the majors is vital to the success of promoting Durban as a bunker port and ways of achieving this are proposed.

Thesis (MBA)-University of KwaZulu-Natal, 2006.