Mon 26 Jan 2009, 08:02 GMT

Lanka Bunkering files $1m legal claim


Supplier alleges that it was prevented from delivering marine fuel in 2004.



Sri Lankan firm Lanka Bunkering Services (Pvt) Ltd. (LBS) has filed a damages claim in the District Court of Colombo of almost US$1 million against John Keells Holdings(JKH) and Lanka Marine Services (LMS), alleging that it was prevented from delivering marine fuel to ships in the port of Colombo in 2004.

According to documents filed in court, LBS is said to be requesting US$935,873.53 with interest at 21 percent from 8th August 2004 on the sum to date.

The damages claim follows news last month that LBS had sent a letter of demand to JKH and LMS in November 2008 demanding payment of the aforementioned amount in full.

The letter reportedly claimed that both JKH and LMS prevented LBS from delivering 58,229.133 metric tonnes of marine fuel carried on board a motor tanker named 'Serifos' lying within the port of Colombo.

LBS said the Serifos had been chartered to transport the aforementioned quantity of marine fuel to Sri Lanka, which had been purchased at a cost of approximately US$9 million. The company said it intended to transfer the bunker fuel to Colombo and then use smaller tankers owned by Sri Lanka Shipping Co. Ltd to provide bunkering services to ships calling at the port.

However, LBS alleges that the Serifos was denied a berth upon arrival at the port of Colombo on or around 8th July 2004 and subsequently prevented from carrying out bunker deliveries or transferring the fuel to other vessels.

LBS reportedly claims JKH and/or LMS had contrived to prevent them from delivering bunker fuel to ships in Colombo by compelling the Sri Lanka Ports Authority (SLPA) to invoke the terms of a Common User Facility (CUF) Agreement entered into between the government, the Ceylon Petroleum Corporation (CPC), the SLPA and LMS.

It is claimed that companies engaged in bunkering activities in Colombo were compelled to use the CUF, an agreement which the Supreme Court ruled as being illegal in its judgement in July 2008.


Monjasa Oil & Shipping Trainee (MOST) trainees. Monjasa opens applications for global trainee programme  

Marine fuel supplier seeks candidates for MOST scheme spanning offices from Singapore to New York.

Singapore's first fully electric harbour tug. Singapore's first fully electric tug completes commissioning ahead of April deployment  

PaxOcean and ABB’s 50-tonne bollard-pull vessel represents an early step in harbour craft electrification.

Fuel for thought: Hydrogen report cover. Lloyd's Register report examines hydrogen's potential and challenges for decarbonisation  

Classification society highlights fuel's promise alongside safety, infrastructure, and cost barriers limiting maritime adoption.

Bureau Veritas and Straits Bio-LNG sign MoU. BV Malaysia partners with Straits Bio-LNG on sustainable biomethane certification  

MoU aims to establish ISCC EU-certified biomethane production and liquefaction facility in strategic alliance.

Molgas Energy logo. Molgas becomes non-clearing member at European Energy Exchange  

Spanish energy company joins EEX as it expands European operations and strengthens shipper role.

Yiannis Diamandopoulos, Elinoil. Diamandopoulos appointed CEO of Elinoil as Aligizakis becomes chairman  

Greek marine lube supplier announces leadership changes following board meeting on 5 January.

Sustainable Marine Fuel Services webinar hosted by BV graphic. Bureau Veritas to host webinar on sustainable marine fuel transition challenges  

Classification society to address regulatory compliance, market trends, and investment strategies in February online event.

Inchcape Shipping Services logo. Inchcape to provide bunkering services from new Indonesian offices  

Port agency establishes presence in key bulk and tanker operation hubs handling 150 calls annually.

CPN launch of B100 marine biodiesel supply in Hong Kong graphic. Chimbusco Pan Nation launches B100 biodiesel supply in Hong Kong  

Bunker tanker Guo Si becomes Hong Kong's first Type II certified vessel for pure biodiesel operations.

Vox Apolonia vessel. Van Oord completes Dutch beach replenishment using 100% bio-LNG  

Dredger Vox Apolonia deposited 1 million cbm of sand at Noord-Beveland beach under Coastline Care programme.





 Recommended