EUROPE • GIBRALTAR
Defending the Rock
In the staunchly pro-EU
British Overseas Territory of
Gibraltar, all discussions
these days centre on Brexit,
reports Felicity Landon
Gibraltar was quick to respond to
the ‘leave’ result of the UK
referendum on European Union
membership in June. Within days, its
ministers were meeting with and
seeking reassurances from the UK
Government; and the Government
of Gibraltar, working with the
private sector, embarked on a
consultation exercise to assess the
impact of Brexit. The data gathered
will feed into a ‘master plan’ on
which to base discussions with the
UK Government.
‘The Rock’ has always punched well
beyond its weight in maritime terms. It is
acknowledged as the Mediterranean’s
leading bunker port, offering low-priced,
VAT-free fuel, thanks to its position
inside the EU as part of the UK, but
outside the EU’s VAT jurisdiction. The
Gibraltar Ship Register benefits from its
status as a Category 1 member of the
Red Ensign Group while offering an
attractive European flag option. Gibraltar
provides the comfort of a system based
on English common law, and a
European location at the ‘gateway’
between the Med and the Atlantic.
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Of course, there are concerns.
‘We have been doing work as part of
the Government initiative to try to
predict the impact of Brexit and look
at where the threats and opportunities
are,’ says Commodore Bob
Sanguinetti, ceo of Gibraltar Port
Authority. ‘The obvious point is that
our location isn’t going to change and
what the port in Gibraltar has been
doing for decades, if not centuries –
supporting the shipping community –
we will carry on doing.
‘Where we can, we will turn
the situation to our advantage
and wherever we can add
value, we will develop our
services,’ he adds.
(2015) was a notably positive year for
GPA; as well as an increase in
bunkering volumes, it recorded a
13% increase in cruise calls, and 60%
increase in superyachts calling. ‘After
our increase in activity last year, we
are holding steady this year, despite
an increase in competition in the
region,’ he says. Year to date, cruise
calls are up 18% and superyachts up
37% compared to 2015.
The GPA has been focusing strongly
on its Eastern Anchorage, aiming to
attract more ships to stay for
longer for crew changes,
provisioning and other
services. ‘This is up 55%, so our
strategy is working,’ he says.
In November, Gibraltar will
host the annual convention of
One of Gibraltar’s unique
Bob Sanguinetti
the International Bunker
advantages is its status outside
Industry Association conference, an
the VAT framework, Sanguinetti
event that Sanguinetti says is an
continues. ‘That isn’t going to change
opportunity to showcase Gibraltar not
and it might even become more
just to the bunkering community but
advantageous to Gibraltar. What is
also the shipowning and operating
worrying is the uncertainty in the minds
community. ‘So they can see first-hand
of shipowners and operators bringing
what we do and how we do it, and the
ships to Gibraltar – they don’t know
wide range of services on offer.
what the impact will be, although so far
Hosting this even reinforces our status
there has been no impact.’
as the premium bunkering port in the
Mediterranean.’
Brexit aside: ‘Despite the increasing
severity of the crisis affecting
In fact, the Rock looks set for a major
shipping globally, we are holding our
step forward in bunkering. At present, it
own,’ says Sanguinetti. Last year
Seatrade Maritime Review • Quarterly Issue 4 • December 2016
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EUROPE • GIBRALTAR
has a floating storage solution for
bunkering fuel, using a tanker moored
alongside the Detached Mole; earlier
this year, the Government invited
proposals for the design and
construction of a land-based marine fuel
storage facility, something bunker
suppliers have long been pressing for. A
decision is expected soon.
Gibdock
Gibraltar post-Brexit vote is still
buoyant and open for business and
Gibdock is very
much part of
that, says md
Richard Beards.
‘As a shipyard
we are used to
adapting and
Richard Beards
taking up the
new challenges that come our way.
It will be the same with Brexit.
Things might change a bit in the
future and people will change how
things are done but we will jump
over any hurdles.’
One positive has been the lower
pound, he says. ‘That is starting to
kick in and help us – and the other
thing that is keeping us busy is
scrubber retrofit projects.’
Gibdock has been working on a fiveship scrubber refit project, making
use of Pad 1, the prefabrication and
assembly created last year, also
used for offshore projects.
June was a record-breaking month
for offshore-related work, with Q2 as
a whole exceptionally busy, says
Beards. Demand has since slackened
but Gibdock has received two
‘strong enquiries’ for coming months.
‘Offshore is in a very difficult place –
we all know that – and there is no
immediate sign of recovery. But
there is still offshore work out there
and it comes back to trusted
partnerships and the delivery of
quality and safety that the offshore
world needs, along with Gibraltar’s
location,’ says Beards. Cruiseship
and MoD work are meanwhile
helping keep the yard busy.
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In August the Government signed an
agreement with Shell for the supply of
LNG for use in power generation. The
agreement includes the construction of
a small re-gas unit that will receive, store
and re-gasify the LNG arriving by ship.
‘Obviously this is a very exciting
prospect,’ says Sanguinetti. ‘The LNG
plant to supply the power station will
be ready this time next year. And
Gibraltar will, subject to all the
environmental and safety processes
and checks being completed
satisfactorily, be able to deliver LNG
for bunkers to ships at anchor. This is
clearly a new business – we are
working closely with Shell to identify
customers and promote the business.’
Also in August came confirmation that a
new Vessel Traffic Services (VTS) system
has been ordered from Kongsberg
Norcontrol. Port Minister Paul Balban
said: ‘The project represents an important
investment in the port infrastructure. KNC
will provide the port authority with one of
the most modern VTS systems in the
world to oversee shipping traffic in the
busy waters around Gibraltar.’ G
Gibraltar Ship Register
The Brexit referendum result has caused
some confusion and uncertainty for
some clients of the Gibraltar Ship
Register, but it is still too early to see
what will happen, says maritime
administrator Richard Montado.
problems being experienced by our
traditional clients in the shortsea
shipping and oil/gas industry,’ says
Montado. ‘Many newbuilds are now
going straight into lay-up and are riding
out the current economic situation.’
‘We are working to reassure them that
it is still ‘business as usual’ for us and
there are no changes to our services.’
A number of Central and Northern
European flag states have also been
revising their domestic legislation to
entice domestic owners to return to
However, there are clear implications.
their home flags, he says: ‘We have
‘Hypothetically speaking, if Gibraltar
seen a lot of movement back to the
were to lose its EU member
German, Norwegian and
state register status, it would
Swedish registers over the past
not be an attractive register
12 months, whereas many of
for shipowners who
these clients would have opted
exclusively engage in regular
for an alternative European
intra-European trade,’ says
registry like Gibraltar or Malta.
Montado. Vessels trading
Nevertheless, we are seeing
exclusively in the EU want an
significant interest from
Richard Montado
EU flag, he points out.
shipowners in the Netherlands,
particularly with newbuilds, and we are
‘Nevertheless, the opportunity to be
looking to diversify our overall portfolio
more flexible with some prein new markets.’
registration requirements like marine
equipment and other EU-exclusive
Brexit or not, the flag would have to
features would make us extremely
diversify anyway, he points out. ‘We
competitive overall. At the end of the
have to get into foreign markets to
day, European status is just one
build up the fleet, something we have
incentive to register; we are a highbeen working on in the past two years.’
quality British registry with an
excellent port state control (PSC)
In general, the registry is investing in
record. Financial lenders see us as a
its online services, expanding its social
low-risk option and our pricing models
media presence, and looking to open
are extremely competitive.’
offices outside Gibraltar. ‘We are a
Government department, not run on
At present the Gibraltar-flagged
commercial lines like the big registers,’
commercial fleet stands at 288 ships
says Montado. ‘But we are definitely
totalling 2.8m gt. ‘The registry growth
adopting a more commercial approach
has been quite flat over the past two
and it is important to have a presence
years, owing to the ongoing financial
outside Europe and outside Gibraltar.’
Seatrade Maritime Review • Quarterly Issue 4 • December 2016