Colonial Group has sold its bunkering business to Chemoil Energy Limited, one of the marine fuel industry’s leading physical suppliers, according to several sources, including Ship & Bunker magazine.
Neither Colonial officials nor Chemoil representatives returned calls regarding the acquisition Thursday, although sources indicate the sale was finalized earlier this month. No value or terms were disclosed.
Bunker is simply the name given to fuel that operates ships. The term originated in an era when ships ran on steam produced by coal. The onboard storage bins for the coal were called bunkers, a name that has endured long beyond steam-powered ships.
Colonial’s bunker supply operation — one of many diverse energy and port-related aspects of the company — focuses on the ports of Savannah, Charleston and Jacksonville.
Ship & Bunker reports that no formal announcement is expected but Chemoil plans to continue branding the operation as Colonial Oil Marine Fuels.
Chemoil already has U.S. bunker supply operations in New York, Philadelphia, New Orleans, Houston, Los Angeles and San Francisco.
Established in 1981 at the Port of Long Beach in California, Chemoil has integrated operations in Los Angeles, New York, Houston, Singapore, Panama, United Arab Emirates and the Antwerp, Rotterdam and Amsterdam region. Chemoil is listed on the Main Board of Singapore Exchange Securities Trading Limited (SGX-ST).
A third-generation family company founded in 1921 and based in Savannah, Colonial Group Inc. ranks No. 64 on Forbes List of America’s Largest Private Companies with more than 900 employees. Its history is rooted in the marketing, retailing and distribution of petroleum products for transportation, industrial and marine applications.
Big wheat crop boosting exports
Georgia Ports reports that a bumper crop of wheat is setting up a booming export business at the Port of Brunswick.
“This is going to be a banner year with somewhere in the range of 90,000 to 100,000 tons of wheat moving across our docks at Colonel’s Island Terminal,” said Curtis Foltz, GPA executive director.
Increased marketing of domestic grain to overseas buyers has prompted Georgia farmers to plant more wheat, Foltz said.
The U.S. Department of Agriculture reports that farmland dedicated to wheat production in Georgia grew from 230,000 acres in 2012 to 350,000 acres in 2013, while statewide production saw a 70.8 percent increase, growing from 11.27 million bushels in 2012 to 19.25 million bushels this year.
The 2013 wheat yield represents not only an increase in overall production, but also an improvement from 49 to 55 bushels per acre across the state.
Bill Dawson, GPA’s general manager for the Port of Brunswick, said the facility had about 60,000 tons of wheat in storage and was still receiving shipments when the first ship of the year to take on wheat arrived Tuesday.
The CMB Weihai took on approximately 33,000 tons of grain and departed Thursday, bound for Mexico. Two other vessels, yet to be determined, will move the remainder of the wheat exports.
While most of the exported wheat was produced by Georgia farmers, shipments also were also received from Florida, Alabama and South Carolina. Brunswick is the second busiest facility on the East Coast for the export of wheat, behind only Perdue Farms in Virginia.
While most wheat grown in the region is used within the U.S., having access to the global marketplace is good for farmers, Foltz said.
“Having a vibrant export facility in Georgia helps farmers get better prices,” he said. “Our global agribulk marketing means more customers and more competition for American farm products.”
Senior business reporter Mary Carr Mayle covers the ports for the Savannah Morning News. She can be reached at 912-652-0324 or at mary.mayle@savannahnow.com.