West Indies Petroleum (WIP) Limited, a leading energy company in Jamaica, is charting a course towards new horizons in the bunkering industry through its subsidiary, WIP Terminal. With the cruise ship sector showing robust signs of recovery, WIP Terminal aims to tap into the increasing demand for fuel services in the region.
Bunkering, which involves providing fuel to vessels, is at the forefront of WIP Terminal’s strategy as cruise lines rebound from the impacts of the COVID-19 pandemic. Last year, cruise passenger numbers surged to 31.7 million, surpassing pre-pandemic levels of 29.7 million in 2019. As the industry anticipates a continued influx of travelers—projected to reach 34.7 million this year—the demand for bunkering services is expected to rise correspondingly.
Royal Caribbean, a major player in the cruise sector, recently reported a significant uptick in bookings, indicating strong growth potential. Their data suggests a 30% increase in repeat customers and an influx of new cruisers, primarily younger demographics. This evolving passenger profile could diversify Caribbean itineraries and subsequently elevate marine fuel consumption in the region.
“The resurgence of the cruise industry offers WIP Terminal a prime opportunity to expand our services,” remarked Charles Chambers, CEO of WIP Terminal. “Our strategic location in Jamaica, combined with our extensive storage facilities, positions us to efficiently meet the fuel needs of cruise lines operating throughout the Caribbean.”
WIP Terminal’s primary facility in Old Harbour boasts a storage capacity of 650,000 barrels, complemented by a 100,000-barrel facility in Ocho Rios. Both locations offer direct access to docking facilities, enhancing the company’s ability to provide prompt bunkering services—a critical factor for cruise operators seeking to minimize downtime.
Chambers further noted that WIP Terminal is not solely focused on the cruise sector; there are plans to broaden their horizons by targeting container and cargo ships as well. With strategic partnerships and improved pricing strategies, WIP aims to attract vessels that previously opted for other ports due to fuel costs. “If we can provide more competitive pricing, we believe vessels passing through the region will choose to refuel here instead of heading to places like Panama,” he explained.
In addition to enhancing its bunkering services, WIP Terminal is also undergoing a significant organizational restructuring aimed at strengthening its market position. This includes forging alliances that could lead to cheaper fuel procurement and better logistics for fuel delivery. “We’re optimistic about our future in the bunkering business, especially with the increasing number of cruise ships visiting our waters,” Chambers stated.
As WIP Terminal prepares for expansion beyond Jamaica, the company is already operational in key ports including Kingston, Montego Bay, Falmouth, and Ocho Rios, with plans to add at least one more Caribbean location soon. The specific destination remains under wraps, but Chambers hinted at an announcement in early 2025.
Meanwhile, WIP Limited is also gearing up for a listing on the Jamaica Stock Exchange. The company has restructured its share offerings, now authorizing an unlimited number of ordinary shares, with plans to increase its capitalization and facilitate future growth.
With revenues rising by 13.3% in 2023, despite a slight dip in net profits, the company is set on leveraging the cruise industry’s revival to boost its performance in the bunkering market. Chambers concluded, “We are fully committed to adapting our operations to meet the evolving demands of the cruise sector and ensuring our place as a key player in the Caribbean bunkering landscape.”
