Deputy Prime Minister Theo Heyliger (2nd, L) reviews a fuel-related point on the computer while Sol executive (L), Regina La Bega, PJIAE Managing Director (3rd, L), and Clarence Derby, Chairman of the airport’s Supervisory Board of Directors, look on. (PJIA photo)
Construction of new
tank set for March 19
Simpson Bay,
St. Maarten - Deputy
Prime Minister Theo Heyliger, with responsibility for the airport, joined a
delegation of Princess Juliana International Airport operating company (PJIAE)
in a specially-convened meeting on March 6 with Sol top brass, including CEO
Gerard Cox, to demand permanent solutions to the recurrent fuel shortages that
have been affecting the airport and airlines servicing the destination since
the beginning of the high season.
The meeting, held at Sol’s offices in Cay
Bay, discussed among other issues Sol and Chevron’s implementation of a 50%
restriction, which was in place from the period of March 2 – 4, 2012, during the
St. Maarten Heineken Regatta weekend.
Sol attributed the spate of
fuel shortages that has hit St. Maarten and affecting the whole island, in part
to what it called an un-forecasted 15% increase in fuel sales this season.
The jet fuel supplier noted
that the spike in sales came as a result of increased demand.
According to Sol, due to the
increase in uplifts, the fuel required at the airport surpassed usual
requirements during the high season. This has affected Sol’s and Chevron’s
ability to provide sufficient fuel given the current storage capacity in St.
Maarten.
Asked why St. Maarten seemed
to be most affected by fuel shortages compared to other islands in the region,
Sol noted that storage is not as big an issue on other Caribbean islands, as in
St. Maarten.
As a result of the fuel
issues it is facing in St. Maarten, Sol has increased its jet fuel storage
capacity in Antigua from 60,000 barrels to 97,000 barrels to allow for quicker
transporting of fuel to St. Maarten when needed, it was further revealed.
Sol further explained that
based on the current storage capacity, should there be any influxes in demand
or setbacks in shipping at supply sources, it would take two voyage rotations,
which usually equates to two weeks, to restore fuel supply to a normal
position. As customary, all fuel that arrives at port is sent to Antigua for
recertification and the time involved in this process would also need to be considered.
Another reason Sol gave for
the recent shortages is the numerous challenges faced by its main supplier,
Petrotrin in Trinidad. However,
Sol maintained that an increase in storage capacity in St. Maarten would put
Sol in a much better position to deal with any unforeseen challenges that may
arise during the peak season.
Addressing the issue of
storage, Deputy Prime Minister Heyliger, reiterated that he had recently signed
the building permit for the construction of the storage tank.
“St. Maarten continues to be
an important market in Sol’s business portfolio and we remain committed to
resolving the problem with jet fuel supply at PJIA,” said Andrew Niles, General
Manager of Sol Aviation Services.
Stressing that indeed, the
“solution is the tank,” Sol further disclosed that construction is set to begin
on March 19 with completion expected by October 31, 2012.
The new tank will have a
storage capacity of 34,000 barrels and when coupled with existing storage will
give a net increase of some 29,000 barrels. The tank is being designed and
built by Sol.
The PJIAE delegation, which
included Chairman of the Supervisory Board of Directors, Clarence Derby and
Managing Director, Regina La Bega, also discussed with Sol plans for relocating
the fuel farm at the airport. This will allow for an expansion of the storage
capacity of the fuel farm as well.
Communication was another
issue the two parties discussed at length with PJIAE demanding that Sol informs
it of any imminent shortages/restrictions in a much more timely manner to allow
for timely dissemination of this information to stakeholders and to enhance
proper crisis management. Poor and last minute communication of the recent
stock-outs have only worsened an already bad situation.
To help manage the fluctuating fuel uplift demand, Sol
requested that all airlines provide their projected jet fuel daily requirements
at airports across the region, including PIJA, to ensure service quality and
availability, seeing that demand is a major factor.
In an effort to improve
communication, it was agreed that Sol would also meet with the stakeholders at
the airport.
“PJIAE is in the business of
attracting airlines to this destination, and one thing for sure, we cannot
afford for the current situation with fuel shortages to continue because of its
negative effects not only on the image of the airport as an international
airport, but also on St. Maarten as a leading tourist destination,” said PJIAE
managing director La Bega – who has repeatedly indicated the need for all
operators, including Sol, to meet soon-to-be established performance standards.
Deputy PM Heyliger, in
summing up the position of St. Maarten, said adequate storage capacity requires
that the supplier(s) guarantee on-island stock that would last a period of at
least two weeks. “This is what we are looking at to solve this situation with
jet fuel shortage that has been happening too frequently now,” he said.