OFFSHORE BUNKERING AND THE ENVIRONMENT – STRIKING A BALANCE

Offshore bunkering, the supply of fuel to a vessel at sea outside a harbour, started in Algoa Bay in 2016 off Gqeberha (formerly known as Port Elizabeth) in South Africa. Algoa Bay is located on a main global maritime route and offers the first offshore STS bunkering services in the country. It is the largest bay in South Africa providing shelter to anchored ships. The bay also hosts two major commercial and industrial ports: the original port of Gqeberha and the deep-water port of Ngqura, which opened in 2008, and has since seen rapid development and operational expansion. The location of these ports has facilitated the expansion of the ocean economy in this region under the South African government’s ‘Operation Phakisa’, which aims to unlock the marine space for various initiatives, including oil and gas exploration, aquaculture, tourism, and marine conservation.

The offshore bunkering industry has faced many obstacles: tax compliance issues and environmental concerns being the most prominent.

Tax compliance issues resulted in offshore bunkering operations coming to a halt towards the end of 2023, after several bunker barges were detained due to suspected contraventions of the Customs and Excise Act.

Environmental groups have also raised concerns. Since the inception of bunkering operations at Algoa Bay, there have been four oil spills (some environmental groups suggest that minutes of meetings indicate a further five more spills and that a spill in 2019 resulted in the deaths of the critically endangered African Penguin). These oil spills have also compromised eggs of African Penguins, resulting in the abandonment of these eggs, and have affected breeding success and reproductive fitness. The oil spills in addition create health issues for dolphins and in some cases, result in death. Noise pollution from the bunkering industry has further contributed to the decimation of the African Penguin population, with bunkering activities threatening prey availability.

Pursuant to the environmental concerns, in February 2025, the Minister of Forestry, Fisheries, and the Environment, Dr Dion George, called for public comment on proposed regulations for the environmental management of offshore oil bunkering. The proposed regulations are intended to decrease the high risks associated with bunkering on the marine environment.

Notable regulations include:

• Regulation 4 which aims to regulate noise mitigation by requiring the vessel being used for bunkering operations to comply with the International Maritime Organisation’s Guidelines concerning design adaptions for the Reduction of Underwater Noise from Commercial Shipping. Bunker operators have a period of two years from the commencement of the Regulations to comply with this requirement.
• Regulation 3(1) and (3) which aim to prohibit bunkering activities within marine protected areas and critical biodiversity areas, as well as prohibit bunkering activities within a 20 kilometre radius from St Croix Island and Bird Island, Algoa Bay and prohibiting a vessel waiting to bunker from traversing between Bird Island and the mainland. These are welcomed positions since St Croix Island and Bird Island are key habitants for certain bird-life, including the African Penguin.
• Regulation 9, which requires each bunker operator to have an environmental management plan, developed by an independent specialist, and approved by the Minister. Regulation 9 further sets out what must be included in such plan.
• Regulation 10 is perhaps one of the most notable regulations. In terms of this regulation, a person commits an offence if they contravene certain regulations, including regulations 4 and 3 mentioned above. The penalty for contravention is a maximum fine of two million Rand or imprisonment for a maximum period of 5 years or both a fine and imprisonment. This penalty provision should deter individuals and companies from flouting the regulations.

It is submitted that the proposed regulations give heed to commercial interests and industry demand whilst simultaneously reflecting the government’s commitment to environmental sustainability, ensuring that South Africa’s diverse and vast wildlife is protected.