Africa-Press – South-Africa. Industry and other stakeholders say Algoa Bay has now been struck by potentially damaging fuel shortages after the SA Revenue Service (SARS) impounded several vessels at the port – including four bunker tankers crucial to its refuelling capacity.
“It is my understanding from operations management that bunkering has not stopped but that there is a shortage of fuel currently,” SA Maritime Safety Authority spokesperson Sicelo Fayo told News24.
Four bunker tankers and an oil drilling ship, linked to Minerva Marine Bunkering Services and TFG Marine, were detained earlier in September for allegedly contravening tax laws. The drilling ship is currently anchored at the port of Nqqura, while the bunker tankers are anchored in Algoa Bay.
Shipping agencies previously warned that there was a risk of fuel shortages and other knock-on impacts, as 31 vessels had been lined up for refuelling at Algoa Bay.
Industry members fear prolonged fuel shortages at the key port could have far-reaching effects. Under normal circumstances, three bunker barge operators are active in Algoa Bay, with nearly 6 200 vessels conducting bunkering operations there since 2021. Some two million metric tons of fuel are sold in the region each year.
News24 previously reported that there were ongoing tensions between SARS and shipping companies over fuel taxation. These have yet to be resolved, said South African Association of Ship Operators and Agents (SAASOA) chair Peter Besnard.
A key bone of contention is whether bunker fuel should be considered imported and therefore subject to excise tax.
The South African Association of Freight Forwarders (SAAFF) stressed that SARS was within its rights to impound the vessels and called on all members to uphold its code of ethical conduct and comply with regulations. But some industry members continue to voice fears over the impact of a crackdown.
Maritime Business Chamber chairperson Unathi Sonti said affected companies are losing revenue as vessels en route to Algoa Bay have had to alter their plans.
“The impact… on the ground is slowly becoming a reality as there is no activity on the ground apart from fishing vessels which are back at the sheltered bay during the bad weather. Jobs are on the line now,” said Sonti.
“It is not only affecting bunkering operators, but other businesses including hospitality and tourism industries and transport. A number of sectors have been affected by this.”
SAASOA’s Besnard echoed fears that shipping companies may bypass Algoa Bay altogether amid fears of a prolonged crackdown at the port.
SARS said last week that it had been talking to the fuel industry since 2016 “to encourage the compliance of legislation concerning the importation, trading in and other operational activities of vessels engaged in the supply of fuel”.
The tax authority said while it had detained the vessels as part of an ongoing investigation into violations of the Customs and Excise Act, it had not actually seized the ships.
“SARS has no interest in jeopardising economic growth nor of contributing to the problem of unemployment, poverty and inequality,” Commissioner Edward Kieswetter said.
For More News And Analysis About South-Africa Follow Africa-Press
