Bunker License Fuel Transporter
Bunker License Fuel Transporter
portofrotterdam.com
EXPLANATORY NOTES TO THE BUNKER LICENSE FOR
BUNKER FUEL TRANSPORTER
GENERAL
delivered in Rotterdam. The bunker license
The port of Rotterdam is one of the largest transporter is therefore of added value for the
bunkering ports in the world. The favourable environment, society and the reputation of the
location, the infrastructure (high refining port of Rotterdam as a bunkering port.
capacity) and the inclusion of Rotterdam in the
sailing schedules of sea-going vessels as the The Port of Rotterdam is not the only port in the
first or last port of call contribute to vessels world facing these alleged ambiguities. Other
being bunkered1 here. ports are facing or have faced the same
problems. In Singapore and Gibraltar, this
In the ARA area (Antwerp-Rotterdam- ambiguity in the bunkering market has led to
Amsterdam) a huge amount and number of the successful introduction of a license system.
bunker deliveries will take place (in Rotterdam The number of cases involving quantities and
in 2019: 8.9 million m3 and approx 20,000 differences in quality has been considerably
bunkering operations). This makes the port of reduced. The Dutch sea ports do not currently
Rotterdam the second largest bunker port in the have such a system (or a variety thereof) of
world after the port of Singapore. bunker permits or licenses.
The bunkering of sea-going vessels in the port is The desire to introduce a bunker license is
subject to relatively few operational rules. For a widely supported. The bunkering sector
bunker vessel to bunker a sea-going vessel, it (represented within the sector-wide bunker
only needs to notify the Harbour Master consultation), bunker transporter, bunker fuel
thereof. transporter and manufacturers, (international)
representation (NOVE and IBIA3) such as
The desire to introduce a bunker license is not shipping companies and agencies, have been
new. In 1994, the municipality of Rotterdam (at calling for a license system for years in order to
that time via the Port of Rotterdam Authority) make the bunkering sector more transparent
investigated the possibilities of making a bunker and easier to monitor.
license compulsory2. As a result of this
investigation, the aforementioned bunkering Local politicians and the central government
notification was made compulsory at the time; are also watching this development with
however, the bunker license was not introduced interest. This is partly due to the national and
for various reasons. At that time, the idea was international investigations (Reports ‘Dirty Oil’
that the national government or international (Ministry of Security and Justice 2013) and ‘Dirty
bodies would come up with a license, or that Diesel’ Public Eye 2016) in which, in response to
the sector itself would set to work on regulation. questions by the Dutch House of Representatives,
the Minister promised the House that the
The reason for making a bunker license municipality of Rotterdam would submit a
compulsory now is to realize a more transparent proposal. Finally, both the IMO and the European
bunkering market. For years there has been a Commission are closely following the developments
sense of ambiguity in and about the bunker regarding the Rotterdam bunker license.
market, both in the media and in politics, and
there are serious concerns about discrepancies In view of the above, it has been decided to
in bunker quantity and quality. An increasing introduce the bunker license for bunker fuel
number of disputes are being observed and transporter with effect from 1 February 2021
complaints, in particular about the bunkers with the aim of ensuring that the bunkering of
delivered, are also increasing. The bunkering sea-going vessels takes place safely, correctly
license transporter aims to make a positive and in an environmentally responsible manner.
contribution to reduce these alleged The bunker license for bunker fuel transporter
discrepancies. The bunkering license transporter will be issued until 1 February 2023. Prior to this
promotes the transparency and traceability of date, the bunker license for bunker fuel
the bunkering process and helps to better transporter shall be evaluated and the extent to
safeguard the quantity of bunkers that are which the license and the requirements need to
Article 8.2 of the Port Bye-Laws sets out the f) compliance with local, national, Union and
minimum requirements that may be imposed on international environmental requirements;
the bunker license. For the municipalities of
Rotterdam, Vlaardingen and Dordrecht, these g) compliance with obligations relating to
requirements derive from the European social and labour legislation applicable in
Seaports Regulation5, while for the other the Member State of the port concerned,
municipalities, the basis can be found in the including the conditions laid down in
Municipalities Act (see below). applicable collective agreements, manning
Since 24 March 2019, the Seaports Regulation requirements and requirements relating to
4 Where this document states ‘Port Bye-Laws’, it refers to the Rotterdam Port Bye-Laws 2020, Vlaardingen Port Bye-Laws 2019, Schiedam Port Bye-Laws 2020,
Dordrecht Port Bye-Laws, Papendrecht Port Bye-Laws 2020, and the Municipality of Zwijndrecht Port Bye-Laws.
5 Regulation (EU) 2017/352 of the European Parliament and of the Council of 15 February 2017 establishing a framework for the provision of port services and
common rules on the financial transparency of ports. 3
hours of work and rest for seafarers, and the does not require authorisation. The explanation
applicable rules on labour inspections; of the requirements and restrictions specifies for
each requirement (where applicable) the
h) the good repute of the port service provider, (administrative) burden on the license holder
as determined in accordance with any and states that the requirements are necessary
applicable national law on good repute, for the purpose of the bunker license for bunker
taking into consideration any compelling fuel transporter.
grounds to doubt the reliability of the
provider of port services. CONSULTATION
These minimum requirements, with the exception In preparation of the bunker license for bunker
of the second paragraph under g, have been fuel transporter, interviews were held
incorporated in Article 8.2 (2) of the Port Bye- throughout the chain with enforcers, transporter,
Laws. Article 4 of the Seaports Regulation industry representation, energy transporter,
specifies the scope of these minimum insurance companies, bunker inspectors,
requirements, which must be transparent, shipping companies, ports and bunker fuel
objective, non-discriminatory and relevant to the transporter.
port service in question. The article-by-article
explanation explains in more detail that the All stakeholders were interviewed based on a
requirements laid down in the bunker license standard questionnaire and the answers given
comply with these conditions. were fed back for verification. Some (mainly
foreign) stakeholders completed the
The legal basis for the bunker license for bunker questionnaire themselves.
fuel transporter in the municipalities of
Schiedam, Zwijndrecht and Papendrecht is the The results of the questions and the answers
general decreed power of the municipal councils have been bundled so that a ‘common thread’
by virtue of article 147 of the Municipalities Act. has emerged in the design of the bunker license
The provisions relating to the bunker license for for bunker fuel transporter. This common thread
bunker fuel transporter were subsequently further highlighted the most important issues that all
elaborated in the provisions under or pursuant to stakeholders wanted to see on a regular basis
the Port Bye-Laws in those municipalities. and in what way.
BUNKER LICENSE FOR BUNKER FUEL There was great consensus between the wishes
TRANSPORTER of the stakeholders, but on some points there
was disagreement. These include the
The bunker license for bunker fuel transporter mandatory use of the Mass Flow Meter,
covers the bunkering or debunkering of residual blending of types of fuel and the quality
fuels and distillates (fuel oil and diesel) and requirements of bunkers (which ISO standard).
biodiesel. The fact that the bunkering of these What all the stakeholders were and are
fuels is subject to authorisation is laid down in unanimous on is that the introduction of a
the Designation Decree on fuels and energy bunker license for bunker fuel transporter is
sources which may only be bunkered with a necessary.
license.
The stakeholders:
The bunker license for bunker fuel transporter Bureau Veritas/Verifuel: bunkerinspection
applies to the transport and delivery of residual and checks;
fuels and distillates (fuel oil and diesel) and CMA/CGM: shipping company;
biodiesel to sea-going vessels. The supply of International Bunker Industry Association:
other fuels, such as LNG, requires a different represents bunker parties (transporter and
bunker license, since different techniques are shipping agency);
used and different safety and other Human Environment and Transport
requirements apply. Inspectorate: enforcement authority;
Mediterrenean Shipping Company (MSC):
ADMINISTRATIVE BURDEN container shipping company;
Port of Gibraltar: port (already has license
Any license entails an administrative burden in system in place);
comparison to a situation in which an activity Stolt Nielsen: chemicals shipping company;
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Total: fuel producer; therefore be amended ex officio by the
Trefoil: bunker transporter and shipping agency; Harbour Master. It goes without saying that
ONE: container shipping company; there must be a necessity to do so and that any
Maersk: container shipping company; amendment will need to be justified..
North of England P&I Association Ltd:
insurance company; 4. Requirements for the license holder
NOVE (Nederlandse Organisatie Voor de This Article lays down conditions for the license
Energiebranche) holder. The license holder must have a
Unibarge: bunker shipping agency; Certificate of Good Conduct for Legal Entities
Netherlands Petroleum Industry Association: (VOG/RP). The VOG/RP is a written declaration
represents bunker transporter and producers; by which a bunkering company can demonstrate
Association of Rotterdam Shipbrokers and that it has not committed any criminal offence
Agents: represents Rotterdam agencies; that poses a risk to the work or the task it
Verenigde Tankreederij: bunker shipping agency; intends to carry out.
Wilson: shipping company;
Seaport Police: enforcing authority. When applying for a VOG RP, Dutch screening
authority Justis investigates whether a bunkering
EXPLANATION OF THE REQUIREMENTS AND company and all the directors of Dutch nationality
RESTRICTIONS in important positions within that company
have not been in contact with the judicial
1. Terms authorities. If this is the case, Justis will issue the
This regulation defines a number of terms. Some VOG RP. If they find criminal offences have
terms from the Port Bye-Laws have also been been committed, Justis will check whether they
repeated in this regulation for the sake of the are relevant for the purpose for which the VOG
readability of the license. RP has been requested. At the time of the
license application, the VOG/RP may not be
2. Licensed activities more than 3 months old. Only Dutch companies
The licensed activities concern the supply of can apply for the VOG/RP. If the applicant is a
residual fuels and distillates (fuel oil and diesel) foreign company that has a legal entity in the
and biodiesel for the propulsion of sea-going Netherlands which carries out bunkering
vessels and for the general and specific energy activities, it must submit a VOG / RP from the
supply on board sea-going vessels. Dutch legal entity with the application.
The legal basis for this can be found in the Port If the foreign company does not have a legal
Bye-Laws and the Designation Decree on fuels entity in the Netherlands which carries out
and energy sources that may only be bunkered bunkering activities, it must submit a document
with a license comparable to a VOG / RP, issued by a
(see https://www.portofrotterdam.com/nl/ competent authority in the country where the
scheepvaart/wet-en-regelgeving). company is located. This document may also
be no more than 3 months old at the time of
The license is applicable in the ports of the applying for the permit.
municipalities of Rotterdam, Schiedam, In this case, it will be checked whether the company
Vlaardingen, Dordrecht, Zwijndrecht and indeed has no legal entity in the Netherlands. If
Papendrecht. The exact scope is laid down in this turns out to be the case, a VOG / RP will still
Article 1.2 of the Port Bye-Laws. have to be requested from Justis.
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older than 3 months. If a bunker operator or per bunkering operation is justified.
his/her replacement joins the authorised
company at a later time, a VOG/NP that is not A quality management system is a prerequisite
older than 3 months must be submitted. for the safe and transparent bunkering of fuels.
This may be an IS0-9001 or equivalent
In order to provide the supervisory authorities (proprietary) system. Virtually all license holders
with an insight into the activities of the facility, have such a quality management system in
the use of a travel and cargo log is required. place. If a quality management system is not in
The information as prescribed by the ADN, as place, one will need to be developed. These
already used in tanker shipping for the costs vary depending on the size of the
transport of petrol, is recorded in this log. company, starting at around €1,000 per year
for a small company.
A reliable bunkering market also requires a
transparent quality management system. Such Fully lockable and sealable sample bottles
a system makes it easier for the license authority complying with ISO 13379 are normally already
to check that the accounts and working methods on board. The cost per sample bottle is
of the license holder are in order. The accounts negligible. There are virtually no clients of a
will also be audited by a third party, the bunker fuel transporter who accept a non-
classification society. Almost all bunker shipping lockable or non-sealable sample bottle.
companies already have a quality management Currently, compliance with ISO 13379 is rare.
system, usually a proprietary system, which will Working in compliance with ISO 13379 requires
need to comply with an assessment framework. additional knowledge within the companies
and on board. It also requires additional
To ensure proper sampling, the use of correct sampling tools such as drip rings, fuel drip
sampling bottles and containers is essential. samplers and more time to be spent by the
crews on understanding this properly.
The license supervisor can check the activities of The estimated cost of working according to ISO
the license holder via the bunker registration 13379 is approximately €3,000. Having said
forms, such as the bunker request forms, the that, a standard bunker vessel is equipped with
checklists and Bunker Delivery Notes. These may be these tools and just needs to be cleaned and
inspected at the location of the license holder. put into service.
The price for purchasing a cargo log is a copy of the title deed of the bunker
approximately €250. A cargo log can hold facility;
some 150 transactions. A cargo log is of great a copy of the Inspection Certificate;
importance for checking which bunkering a copy of the Certificate of Approval;
operations have taken place and in what way. the date from which the bunker facility will
The cargo log is therefore very important in be used.
order to be able to monitor the desired
transparency and safety (afterwards). In view of The documents can be submitted by post to:
this, an additional cost of approximately €1.70
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Port of Rotterdam Authority, Harbour Master’s measuring equipment involves costs. The cost
division for a certified calibration of the dial gauges is
Harbour Master Policy and Support Department approximately €1,250 and should be performed
stating registration or cancellation request at least once every 5 years. The cost for a
bunker facility certified calibration of measuring sticks and
PO Box 6622 tape measures is approximately €350 and must
3002 AP Rotterdam be performed at least once every 12 months.
The Netherlands
Partly in order to keep the administrative
[email protected] burden low, the regulation allows all documents
and certificates to be available on board in
(administrative) burden electronic form.
The requested documents are in the possession
of the license holder and making copies of 7. Documentation on board the bunker
these documents will take very little time. facilities
The information can also be sent digitally. This regulation lays down rules with regard to
bunkering. For loading at a terminal, the
6. Requirements for the bunker facilities Certificate of Quality of the bunkers must be
Article 6 sets out the requirements for the available on board, so the captain can ensure
bunker facility itself. The sampling equipment they will receive the correct cargo. If several
required by this regulation must be available batches are loaded at the same time during
and used on board the facility. The equipment loading (blending), the certificate can be
is described in ISO standard 13739 in Annex K. arranged at a later stage. In this case, the
certificate must be arranged prior to delivery to
To ensure that the correct amount of fuel is the client (sea-going vessel).
delivered to sea-going vessels, it is important
that regulations are laid down. The existing Pursuant to regulation 7.3, a measurement
measuring equipment and tanks must therefore report consisting of a number of fixed data is
be calibrated in order to be able to calculate a drawn up prior to bunkering and immediately
correct measurement of the quantity to be after bunkering. The purpose of drawing up
supplied and delivered. The validity of the these two measurement reports is to calculate
calibration certificates of the different the difference and thus determine the quantity
measurement methods is also subject to delivered.
conditions.
(administrative) burden
In order to guarantee a proper connection with A Certificate of Quality is currently already
other piping systems, it is necessary to adhere being used, which means that this provision
to common standards and to have the does not lead to any additional financial
necessary adapter pieces (fittings) on board to administrative burden.
create a proper connection.
8. Requirements for the bunker operator
Monitoring the piping system requires a clear A number of responsibilities and administrative
piping plan, so it can easily be checked whether tasks are assigned to the bunker operator.
bunkers are going from the correct tank to the Regulation 8.1 requires the bunker operator to
sea-going vessel. enter additional information in the travel and
cargo log relating to the bunkers and their
Bunker facilities also continue to become larger delivery.
and larger. To guarantee accessibility of the Regulation 8.2 covers the bunkering process to
port basins, a maximum width of 24 metres has be followed to ensure safe and transparent
been established. This is also the maximum size bunkering.
for the Volkerak locks.
(administrative) burden
(administrative) burden Filling in the travel and cargo log takes time, about
To ensure transparent bunkering, the calibration half an hour per bunkering or (at an hourly wage
of measuring equipment is of paramount of €60) approximately €30 per bunkering
importance. Periodic calibration is therefore operation. See the explanation above of why
essential. Calibrating the current on-board this information must be provided.
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9. Requirements for sampling (administrative) burden
The way in which samples must be taken is a The cost of the bunker inspector course (2 days)
separate requirement, as this is extremely is approximately €800 for the first time. After
important to ensure the quality of bunkers at obtaining the certificate, a one-day course
the various transfer points: from terminal to must be followed every two years, which is
facility and from facility to receiver (sea-going concluded with an exam.
vessel). In addition, it is important that the This costs approximately €400.
sampling process is properly recorded in the log,
to ensure the sampling is traceable in the chain. 13. Debunkering
Debunkering is a rare occurrence in the port;
(administrative) burden however, it is paramount that it takes place
Virtually all bunker vessels are as standard under strict conditions to avoid any ambiguity
equipped with a drip sampler according to ISO about the substance being handled. Including
13739. If this unexpectedly breaks down or does the debunkering in the bunker license abolishes
not work properly and must be replaced, the the voluntary completion of the application
corresponding costs amount to approximately form while the license holder is responsible for
€3,000. the correct debunkering procedure including
the use of the application form and the
10. Operational notification and registration debunkering checklist.
To ensure effective and efficient monitoring, the
bunker operator must report a number of details The debunkering notification must be sent to
to the Harbour Master prior to starting the theHarbour Coordination Center by email, to
bunkering to sea-going vessels. The notification [email protected].
to the Harbour Master takes place via a special
application in order to keep the administrative 14. Disputes and complaints notification desk
burden to a minimum. With the use of the One of the objectives of the bunker license for
application, the existing possibility to pass on bunker fuel transporter is to make the bunker
the data via telephone and VHF will be abolished. chain more transparent and easier to monitor.
By imposing a possibility to report complaints
(administrative) burden and disputes, the effect of the license can be
The use of the Time2Bunker application keeps measured and supervision and enforcement of
the administrative burden for making this the license can partially be information-driven.
notification low.
The notification can be sent via a complaint form
11. Blending and by email to the following email addresses:
Regulation 7 stipulates that a Certificate of [email protected] or
Quality must be drawn up. The bunkers are [email protected]
delivered to the sea-going vessel on the basis
of this certificate. When bunkers are blended 15. Concluding provisions
during delivery, the composition of the bunkers This requirement specifies the circumstances in
changes and thus deviates from the details of the which the license may be amended or revoked.
Certificate. This regulation stipulates that blending
during delivery of the bunkers is not licenseted, Supervision and enforcement
in accordance with the provisions of the ADN. The supervisory authorities and special
investigating officers of the Harbour Master’s
12. Bunker surveyor Division of the Port of Rotterdam Authority are
The deployment of a bunker surveyor takes primarily responsible for supervising and
place on a voluntary basis. The bunker surveyor enforcing the bunker license for bunker fuel
(surveyor) must follow a course as organised by transporter.
the Shipping and Transport College (STC). The
course increases the quality of the bunker surveyor Enforcement may take place either under
and improves the quality assurance of the administrative law (order subject to a penalty)
bunker measurements and reports. The deployment or under criminal law. The method of
of a bunker surveyor is expected to make bunker enforcement will be further elaborated in the
deliveries safer and more transparent. It is also Enforcement Arrangement for the Bunker
recommended the bunker operator also follows License for Bunker Fuel Transporter.
this course.
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Evaluation
The effectiveness of the bunker license for
bunker fuel transporter will first be evaluated
after 1 year. The results of the evaluation will be
available in Q1 of 2022. Depending on the
results of this evaluation, it will be further
studied whether the use of a Mass Flow Meter
should be made compulsory in the bunker license.
The most reliable way to measure how much
fuel is bunkered is a measurement according to
the Coriolis principle with a Mass Flow Meter.
Since the meter is pricey: between EUR 50,000
and EUR 250,000 (depending on the capacity),
the effects of the bunker license for bunker fuel
transporter will first be evaluated.
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