B u l k P l an t s
Bulk Plant Update
We speak with a key industry leader to get his take on 2012 and what lies ahead in 2013
B y K e i t h Re i d
T
he 2013 chairman of the International Liquid
Terminal association was recently interviewed
for a multiplatform project with Fuel Oil News'
sister publication NPN Magazine. Offered below is
that interview, which is of interest to bulk plant and
terminal operators in both the heating oil and motor
fuels markets.
Burton S. Russell is vice president of operations
for Sprague. Founded in 1870 as the Charles H.
Sprague Company, Sprague is one of the largest
independent wholesale suppliers of energy and
materials handling services in the Northeast with
products including: home heating oil, diesel fuels,
residual fuels, gasoline and natural gas. Over the
years, Sprague has aggressively expanded upon its
fuel procurement, handling, and delivery expertise.
FON: We've been going through some interesting
economic times since 2008. Looking back at 2012, what
were things like for Sprague?
Russell: There was no shortage of challenges, and in
the end, we fared well. So our attitude is that if you're
doing okay in the tough times, then you're doing
alright. And not unlike many of our competitors, I
think diversification is one of the keys. Some of the
larger challenges we had last year (were mainly with
the) refined products business segment where a piece
of our market share is impacted by the weather and
certainly the abnormally warm winter that we had last
year impacted some of the volumes. And certainly the
market structure that existed throughout the year provided some challenges as well.
On the plus side, our material handling business was
quite strong despite really a recession that impacted
some segments of it, but not overall. Some of those materials
we handle are residential and building related. And the natural
gas business continues to grow. So I don't think that's all that
different from what others have seen, and we've tried to focus
a lot on differentiating our ability to market to our customers
with hedging contracts that are as small as 1,000 gallons and
real-time purchasing where we put some of those technological
30
April 2013 | FUEL OIL NEWS | www.fueloilnews.com
enhancements in the hands of our customers, which they see as
a very competitive market as well. We've seen strong customer
loyalty and growth.
I think I would also mention in the larger context of our company, as with many others in the Northeast, we were affected by
Hurricane Sandy. I think one of the bright spots – as devastating as it
was – was the ability of our employees in New York, in the truck fleet
