Viva Energy Australia Invests in Local Manufacturing

1 December 2014

Viva Energy Australia respects the right of union members to express their views.

Viva Energy reiterates that the Tandara Spirit will not be replaced next year as a dedicated coastal vessel is not required. The company has new supply contracts where most of the fuel produced at Geelong Refinery will be sold and delivered into Victoria.

Selling more fuel from Geelong Refinery into Victoria is good for the refinery and important to build a sustainable manufacturing business. Viva Energy intends to do everything that it can to help the refinery run reliably and be profitable, including investing AUD 150M in the refinery during the next two years.

It does not make sense to continue to hire a dedicated coastal vessel at a cost of tens of millions of dollars if the need has substantially reduced.

Since taking the decision the company has held talks with Teekay Australia – the employers of the Tandara Spirit crew – unions and the government to ensure that they understand the basis of this decision.

Viva Energy is disappointed that the facts behind the decision and the benefit that this will have for Geelong Refinery have been largely ignored. The refinery employs 450 employees, hundreds of contractors and contributes close to AUD 200M to the local Geelong economy.

Viva Energy is not only committed to safety, it underpins all aspects of the company’s operation. The company has a rigorous ship vetting process that involves a physical inspection of each vessel chartered, which is in addition to statutory inspections by bodies such as the Australian Maritime Safety Authority.

Viva Energy requires vessel operators to comply with all applicable legislation and this includes only chartering ships where officers and the crew are covered by trade union agreements that ensures crews are paid wages acceptable to the International Transport Workers Federation.

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