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New entrant into the Peruvian bunker market, Naviera Miraflores SAC has begun carrying out deliveries of bunker fuel in the port of Callao.

The Lima-based company, which is jointly owned by Ecuadorian bunker supplier Navipac S.A. and two independent investors is currently supplying by road tank wagon only until sales volumes increase.

Eduardo Crews, one of the shareholders of Naviera Miraflores, is also Director and President of the company. It sources its marine fuel from state-owned oil company Petroleos Petróleos Del Peru - Petroperu S.A., which operates refineries in Talara, Conchán, Iquitos and El Milagro.

The market leader in Callao continues to be Repsol YPF Trading y Transporte S.A., which is reported to take over 60 percent of the market. The company supplies a full range of products from IFO 40 to IFO 380 and MGO, sourcing marine fuel from its 102,000 barrels-per-day La Pampilla refinery.

Last week it was reported that Repsol had begun using the 10,000mt capacity double hull tanker BT Alorca for supply operations in Callao. The company may also add another barge to service the Callao market in the near future.

The increase in supply barges and competition in Callao has come at a time when shipping traffic is high and the potential for growth seems to be apparent. According to the National Port Authority of Peru Empresa Nacional de Puertos S.A. (ENAPU), shipping traffic in the country was at its highest level in 2007 compared to previous years. The volume of ships calling at Peruvian ports reached a record 8,804 last year, whilst container traffic also peaked in 2007 at 1,177,955 TEU.

Peru also has South America's fastest growing economy, which owes much to record prices for mineral exports. Newer export products ranging from mangoes and artichokes to designer cotton T-Shirts are also flourishing in the country.

With exports likely to continue to rise in Peru and annual economic growth forecasted to average 5.8 percent in 2008-12 according to The Economist, bunker suppliers are set to benefit from the increase in the volume of ships calling at Peruvian ports.