Seypec tanker fleet: an example to follow for Africa |25 April 2018

The tanker fleet success story of Seychelles was widely developed at the African Ship-owners Association Summit opening ceremony yesterday.

At a time when nearly all African countries have no national shipping lines let alone fuel tankers, Seychelles’ case was highlighted.

In an address to the summit, Seychelles Petroleum Company (Seypec) chief executive Conrad Benoiton recalled the genesis of this ambitious project which is now a financial tool for the country in its energy policy.

He said the launch of the project initially combined pragmatism and entrepreneurship with a business model which would operate within longer time frames and not in a short-term outlook.

CEO Benoiton stated that for such a small island state of the size of Seychelles, this is a remarkable performance, stating that “the real economic feat about this ambitious enterprise was the concept of its financing without any government funding, guarantee or subsidy despite the fact that it is the owner of our company”.

He reminded summit delegates that the entire fuel tanker project was financed by a well-planned programme of responsible loan contracts and with the re-injection of all the operational profits during the first years of the project, a strategy undertaken by the board of the company then, led by Captain Guy Adam, his predecessor.

According to him, the investment programme had a set of objectives ranging from the economic diversification rationale, to the energy security concern and the development of a new generation of Seychellois mariners with international exposure and experience. Mr Benoiton explained that Seypec had to broaden its activities on an international platform as the opportunities for local expansion were limited. He said the tanker business has both economic and human perspectives. On the economic front, it helps to strengthen the balance sheet of the company, it reduces the charges that the company would have otherwise been compelled to bear and it also adds a massive financial asset to the country. He said that this project was further consolidated by the signing of a strategic partnership sealed some years ago in operational fields and chartering with German Tanker Shipping (GTS) and that has widely increased vessel utilisation and thereby revenues.

But for Seychelles, the most satisfying outcome has been the unique human resource development opportunities this has offered to Seychellois seafarers who are now given the possibility to integrate a global oil shipping sector.

Mr Benoiton stated: “During the last 10 years Seypec has invested massively in training and developing skills of the local crew. To-date there are well over a 100 Seychellois who have been or are being trained and employed as seafarers in the Seypec crew pool. Apart from the investment in career development, the local crew members are equally the future skilled and experienced resources for the ever expanding marine economy base in the Seychelles”.