Cook Islands Fuel Supply Chain Review - 2008

The report was prepared by The Economic and Energy Analysis Pty Ltd for the Cook Islands. The Cook Island Government sought to examine the alternative methods of price control and operating methodologies used in the Pacific region. Following visits to Tahiti and Samoa in 2007 by representatives from the Cook Island Ministry of Finance, Economic and Energy Analysis Pty Ltd (EEA) were asked to provide assistance and to provide a review of the Cook Island Fuel Supply Chain and specifically to complete:

• An assessment of the current fuel supply chain into the Cook Islands covering existing supply chain logistics, product and freight costs and projected fuel demand.
• An assessment of the onshore costs currently being incurred by terminal operators to service the Cook Islands.
•  A preliminary assessment of the adequacy of the existing petroleum terminal and related assets to meet the Cook Islands projected market requirements over the period to 2013. A preliminary assessment of the adequacy of the existing operating standards of the on-shore distributors against international bench marks
• Recommendations on the alternative fuel supply chain and on-shore operating arrangements that could be adopted in the Cook Islands.
• An understanding of the additional investigations or actions required to develop an Implementation Plan to achieve alternative fuel supply chain management and on –shore operating arrangements and the estimated cost of actual implementation

The components of the main fuel Supply Chain to the Cook Island can be summarised as:

• Product supply ex Singapore

• shipping logistics using medium range tankers (MRT) ex Singapore
• intermediate storage via Fiji
• Shipping logistics using local coastal tankers
• on-shore activities terminating and distribution in the cook islands
• retail activities storage and dispensing to customer ex cook islands service station