Monjasa is definitely here in Limassol for the long run, say executives

Serving shipowners in more than 800 ports across the world is not a job for the faint-hearted. In an interview in the December issue of GOLD magazine, Theodoros Mitsingas, General Manager at Monjasa, and Senior Trader Rania Saman state confidently that Monjasa is here for the long run, weathering the storm of environmental sustainability and global trade disruptions, while staying close its cosmopolitan clientele.

Tell us about the company and its expansion to Cyprus.

Theodoros Mitsingas: Monjasa was established in 2002 and is now a global partner in the oil and shipping industries and one of the world’s 10 largest marine fuel suppliers. We are a relatively young, privately owned company with roots in Scandinavia through our Danish ownership but, at the same time, truly global through our international offices. As a company, we encourage entrepreneurship and follow the motto ‘first the who, then the what’. So, following years of positive developments in the Mediterranean markets, we decided to establish Monjasa in Limassol in 2017. We wanted to help Cyprus become an international business centre and to see the island’s shipping and energy markets grow. Four years later, we expanded with a new office location in Athens to get even closer to our Greek customers. Altogether, we now have some 20 colleagues located in the Mediterranean, enjoying what we do, implementing good values and running a respected and profitable business. Marketwise, we continue to see a growing demand for our services and being part of a global business and organisation means a lot to us. Just to give you a few examples, Monjasa has recently expanded into China, Singapore and Brazil and we have just bought our largest fleet member, the Panamax tanker Monjasa Leader, for operations in West Africa. These are new opportunities that we are able to bring to the Mediterranean shipping community.

What is your approach to building and maintaining long-term relationships with shipping companies and other clients in the maritime industry?

Rania Saman: Monjasa means personal business – this approach to life and business is anchored in our purpose and values and it is an important element when serving shipowners in more than 800 ports across the world. It’s all about being there for those we work with – including when things go wrong or we have to adjust to change, which is also a big part of shipping. I think that we have continued building on this philosophy and deepened our relationships with our local partners here in Cyprus as a natural extension of Monjasa in the Mediterranean.

One of the most-talked-about issues in the maritime sector is the challenge of alternative fuels. As a company that trades and supplies marine fuels, how are you adapting to the fast-changing energy landscape and the potential shift towards alternative fuels?

R.S.: Our ambition is to become an enabler of the transition to low-carbon marine fuels. When you look at our company, we are right there in the middle of the value chain between the fuel producers and the end customers. Therefore, although our data shows that the demand for new fuel types is only building up slowly, we keep preparing our internal organisation for the logistics needed to supply a new fuel mix. We are already supplying biofuels around the world and, in the long term, we will be working to become a logistics partner to one of Europe’s largest green ammonia facilities in Denmark covering the North Sea area. This is just the beginning and we will continue to form new partnerships to make sure that Monjasa remains a relevant partner in the short-, medium- and long-term green shipping transition.

The latest conflict in the Middle East has replaced the war in Ukraine as the big global news story in recent weeks. What measures are you taking to ensure the security and safety of your fuel supply operations, especially in sensitive or high-risk regions?

T.M.: As a close partner to the shipping industry and as a shipowner, we are very well aware of the situation and the possible consequences for maritime trade in the region, should the situation further escalate. Overall, shipping and the global economy go hand in hand, so when the global economy is affected negatively, this impacts trade, fuel volumes and margins too. In terms of risk, however, I think that the past few years have also shown that these global trade disruptions favour companies whose operating model can adapt to the changing and dynamic sanction spectrum. During difficult and uncertain times, shipowners prefer to engage with reliable partners, and this is what we have seen as well.

According to your 2022 Annual Report, total Group revenue increased to $5.5 billion from $3.2 billion in 2021. What is the company’s outlook as regards its future in the marine fuel industry and what growth or expansion plans do you have in place? Can we expect to see further expansion in Cyprus?

T.M.: 2022 was a record year in global shipping with activity levels and earnings beyond expectations across most segments, including the marine fuels industry and here at Monjasa. Looking to 2024, we see a normalisation of the whole industry matching the global trade slowdown. Throughout 2023, Monjasa continued to record an increasing demand and we expect another positive financial year. Zooming in on Cyprus, we are surrounded by maritime business communities, including Europe’s largest ship management sector and Monjasa is definitely here in Limassol for the long run. We are ambitious and will keep investing in people and new business opportunities both locally and on the periphery. We enjoy a close relationship with the Cyprus Shipping Chamber, the Cyprus Chamber of Commerce and Industry, Young Ship Cyprus and the Cyprus University of Technology among others. There is so much more that we would like to accomplish here and we actually feel that we are just setting off on this journey.

How do you envision the marine fuel trading market evolving by 2030 and what are the trends that will transform the industry?

R.S.: It’s always very difficult to forecast marine fuel markets since they are so closely linked to the shipping markets and developments in the global economy. However, I think we all agree that the level of complexity will only increase from here. Most interesting, of course, is the green shipping transformation awaiting us. The recently revised IMO 2050 climate strategy is a boost to the green fuels industry; however, we still believe that more market incentives are needed to ensure a broad fuel transition away from fossil fuels by the global merchant fleet. But we will get there and Monjasa will be here to fuel global trade, no matter the propulsion method.