singapore 3 april 2007 council agenda & intertanko issues peter m. swift
TRANSCRIPT
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Singapore3 April 2007
COUNCIL AGENDA
&INTERTANKO ISSUES
Peter M. Swift
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Council Agenda
Corporate Affairs: Election of Chairman, MD’s Report
Ship RecyclingRevision of MARPOL Annex VIInformation Sharing/Early Warning SystemPanama Canal Toll increasesBest practices to control inadvertent Cargo Vapour EmissionsFleet Development – including conversions of single hullsHuman Element in Shipping Committee (including Tanker Officer Training Standard)EU Ship Source Pollution DirectiveEuropean Issues US IssuesShipboard Waste Management – Revision of IMO regulations & guidelines on OWSPilotage – including Torres StraitsReception Facilities Lifeboat Safety (services and inspections)Terminal Vetting DatabaseQ-Quest Membership criteria
Committee ReportsRegional Panel Reports Poseidon ChallengeDate and Place of Next Meetings
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INTERTANKO Singapore
Ship Recycling
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Industry Interim Strategy
1. Ship owners should only use Recycling Facilities that have made demonstrable advances in terms of safety and environmental management requirements as established in Section C of the draft IMO Convention.
2. Each new and existing ship to have on board Part 1 of the Hazardous Materials Inventory, which identifies hazardous materials, their location and approximate quantities contained in the ship’s structure and equipment, with Parts 2 and 3 of the HMI being completed prior to recycling.
3. To prevent explosions during the recycling process, arrangements shall be made by the facility that hot work will only commence once the necessary void spaces have been declared gas-free for hot work.
4. A Ship Recycling Plan should be developed prior to the recycling of any ship.
5. Issuance of a Delivery Declaration for vessels that are deemed Ready for Recycling.
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INTERTANKO Singapore
Panama Canal Toll increases
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Panama Canal Expansion
Project details:
• Referendum 22 October 2006 (78% yes)
• 7 years to complete (completion 2014 for the Centennial of the PC opening)
• New Dimensions for third lane: • 49 metres (160 ft) Beam• 366 metres (1,200 ft) LOA• 15 metres (50 ft) Draught• Up to about 170,000 DWT (12,000 TEU)
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Panama Canal Tolls current & proposed
Current and future tariffs:
Tankers
Current: 5/2007: 5/2008: 5/2009:
L: $2.96 $3.29 (+11%) $3.70 (+12.5%) $3.98 (+7.6%)
B: $2.35 $2.61 (+11%) $2,94 (+12.6%) $3.18 (+7.5%)
(based on 1st 10,000 PC/UMS net tonnage)
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Panama Canal Tolls Proposals for increases over next 3 years
Initial industry observations:
• Significantly higher than expected increases for next 3 years - with only 3 months notice.[Expected 3.5% real annual hike]
• Affects existing contracts and spot market• Uncertainty/ weakens confidence over future business
planning[Planned increases for post 2009?]
•
• Large upfront increases for doubtful (?) future benefits[Mostly capacity debottlenecking and extra 0.3-0.5 m. draft]
• Industry seeks gradual & predictable increases
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INTERTANKO Singapore
Fleet Development
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(Single Hull) Tanker Phase Out- an “uncertainty” post 2010
m dwtm dwt
Assumptions :MARPOL phase out allows for trading until the age of 25 years old, max 2015The EU alternative does not allow SH trading after 2010.DB/DS can trade until the age of 25 years old, but here cut off 2015
0
10
20
30
40
50
60
70
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
MARPOL (min phase out - trading of SHuntil 25 years)
EU + no SH after 2010
OPA90
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Conversions to Double Hulla further “uncertainty”
Built 10-30, 000 dwt
30-52, 000 dwt
60-72, 000 dwt
90-113, 000 dwt
(incl 6 obos)
120-148, 000dwt
VLCCs TOTAL
1970s 3 2 0 0 0 0 5
1980-1984
8 36 9 1 0 0 54
1986-1989
11 12 0 3 3 1 30
1990-1998
2 9 1 18 2 2 34
TOTAL 24 59 10 22 5 3 123
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Reclassification of Annex II products
Type of change Reclassified from/to Products and volumes
Re-categorisation of vegoils, soft oils and fats
D to IMO type 2, or IMO type 3 with DH meeting operational requirements
Palm oil 27 m tsSoybean oil 10 m tsSunflowerseed 3 m ts+ Other veg oils 3 m ts+Tallow + fatty acids+ 2 m ts+Total approximately 50 m ts
Other products with no previous requirements on ship type
IBC ch. 18 to IMO type 3 Methanol 17 m tsMTBE 5.5 m tsUAN 5 m tsMEG/TEG/DEG 5 m tsMethyl ethyl ketone, ethyl acetate 1 m ts
Change of ship type requirements
IMO type 3 to type 2 Xylenes >5 m tsAcrylonitrile <1 m ts
No requirements No change Molasses 5 m tsEthanol 3 m ts
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Major exporters of vegetable oils
m tsm ts
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Further information available at www.intertanko.com
November 2006
The Revisions toMARPOL Annex II
(entry into force 1/1/2007)
A Practical Guide
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Changes in the pipeline
Chemical Carriers:
• Proposals from the Inter-industry Group to amend SOLAS to provide for the application of inert gas to new oil tankers of less than 20,000 DWT and to new chemical tankers.
• Review of Dangerous Cargo Endorsements through STW.
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INTERTANKO Singapore
European Issues
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EU Issues
• Ship Source Pollution Directive (Status report)
• Maritime Safety Package III
• Green paper on future maritime policy for the EU
• EU Competition Rules
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EU Maritime Safety Package III
• Revision of Port State Control Directive• Vessel Traffic Monitoring Directive• Athens Convention + extension
• Accident Investigation Directive
• Civil Liability / Financial Guarantees• Flag State Audit / Related Issues
• Revision of Classification Society Directive
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INTERTANKO Singapore
US Issues
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US Issues
• California Air Resources Board Air Emission Standards
• Massachusetts lawsuit
• Lawsuit on Ballast Water discharges
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INTERTANKO Singapore
Shipboard Waste Management – Revision of IMO regulations & guidelines on OWS
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Revision of IMO Regs & Guidelines on OWSs
IMO undertaking a critical review of all its regulations and guidelines related to oily-water waste treatment, including– the design of these installations,– clarification of the terminology and better definitions of the various elements
of these installations, – better and clearer interpretation of the record-keeping requirement in the
Oil Record Book, – inter-relation and harmonisation of regulations between regulations in
MARPOL Annex I and MARPOL Annex VI. – The revision will also consider the capacity of onboard incinerators,
including their storage facilities and the operational parameters for their design.
INTERTANKO’s “Guide for the Engine Room Wastes Treatment Associated Systems (ERWTAS)” – will now be aimed at providing guidance on how to apply in practice the new IMO mandatory requirements.
INTERTANKO’s “Guide for Correct Entries into the Oil Record Book” – may be updated to reflect new regulations and/or may be submitted to IMO as an IMO Guide for Correct Entries in the ORB.
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INTERTANKO Singapore
Lifeboat Safety (services and inspections)
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ILAMA / INTERTANKO / INTERCARGOJOINT FEEDBACK FORUM
LIFEBOAT USER GROUP
ILAMA, INTERTANKO and INTERCARGO have launched a joint feedback forum where end-users (crews) of lifeboats and other Life Saving Appliance (LSA) equipment can comment on how effective
such equipment is and how efficiently it functions.
The aim of the forum is to produce feedback and input to the manufacturers, which will help to improve design of life saving equipment and thereby enhance safety in the industry, taking a
crucial step towards achieving the goal of zero fatalities.
E-mails (which may be anonymous) will initially be channelled through INTERTANKO, noted and processed in the strictest
confidence, and then directed on to ILAMA for action.
PLEASE INFORM US OF YOUR CONCERNSemail : [email protected]
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INTERTANKO Singapore
Poseidon Challenge
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Poseidon Challenge – Houston March 28
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INTERTANKO Singapore
Date and Place of Next Meetings
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Future Dates
Asian Panel
19 September, 2007 Tokyo
Council
15 November, 2007 London
Vetting Seminar
21 November, 2007 Hong Kong
Council & AGM
April, 2008 Istanbul
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Other Issues
• Port State Control / EQUASIS data analysis
• Confidential PSC reporting system – Ukrainian ballast water requirements
• Cadet Berth survey
• INTERTANKO Databases and Benchmarking systems - (TVD, TMSA, Op costs / performance)
• Incident analyses
• Maritime (Industry) Foundation
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Reported tanker incidents reducing – until 2005/6 !!
Number
0
200
400
600
800
1000
78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06
0
84
168
252
336
420
00 01 02 03 04 05 06
War
H & M
F & E
Grounding
Collis.
Misc
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Tanker incidents 2006 by type
13%28%
9%
33%17%
Collision
Grounding
Fire/Explosion
Hull & machinery
Misc/unknown
Collision
Groundings
Hull & Machinery (27 engine, 3 hull related)
Misc.
F & E
Reported tanker incidents Jan-Dec
2006 - total 264
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Shipping is more than ships moving around the world; it’s about people and passion
it’s about expertise and commitment
www.maritimefoundation.com
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AIR EMISSIONS&
REVISION of MARPOL ANNEX VI
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Drivers of Change
1. Society is driving the requirement for ships to reduce harmful air emissions from engine exhausts – particularly in Europe and the US and to a lesser extent in Japan and elsewhere
2. Legislators, regulators and others are taking action and planning more
3. The IMO has initiated a revision process for MARPOL Annex VI
States and industry are united in trying to ensure that Air Emissions are regulated internationally through the IMO
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IMO MARPOL Annex VIPrevention of Air Pollution from Ships
• Covered by Annex VI– Oxides of Nitrogen (NOx) – create Ozone– Sulphur Oxides (SOx) – create acidification– Hydrocarbons (HC) – gas, soot and some particulates– Volatile Organic Compounds (VOC)– Refrigerant Gases
• Not covered (currently) by Annex VI– Other Particulate Matter– Carbon Dioxide (CO2) – Carbon Monoxide (CO)
Engine exhaust gases are dependent upon engine type, engine settings and fuel type
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Challenges for IMO
” Reduce air emissions from ships ”
• What emissions- SOx, NOx, PM, VOCs ?- Later CO2 ?
• Where - Globally, Coastal regions ?
• Timing:- Phased, where/when/how ?
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MARPOL Annex VIPROPOSALS FOR AMENDMENTS
• Lower limits for SOx & NOx emissions
• SECAs with lower S cap (1.0% or 0.5%)
• NOx emission limits on existing engines
• NECAs – NOx controlled areas
• Restrictions on Particulate Matters (PM) emissions
• Further controls on VOC emissions from cargo oil tanks
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REVISION OF MARPOL ANNEX VIINTERTANKO PROPOSAL
• Distillate fuels & 2-tiered S cap program:– from [2010], a maximum of 1.00% S content
– for ships’ engines installed on and after [2015], a maximum [0.50]% S content
• A Global Sulphur Emission Control Area
• A New Fuel specification in Annex VI
• Simpler monitoring of compliance
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Distillate/MDO Advantages:AIR EMISSIONS
• Applies to ALL existing ships/engines
• With no other measure, immediately reduces:– SOx emissions by 80% to 90%– PM emissions by 90%– NOx emissions by 10% to 15%
• Reduces fuel consumption with some 4%
from ALL ships and thus CO2 emissions
• Facilitates further NOx reductions by in-engine modifications for IMO’s Tier II & III
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Distillate/MDO :ADDITIONAL BENEFITS
• ENVIRONMENTAL:– Reduces onboard fuel generated waste– No fuel heating/pre-treatment or waste incineration = energy saving– ALL ships become “greener” – “Cleaner” waste & free of hazardous elements contained in residual
fuels– Avoids use of abatement technologies = no further additional waste
& no need of further waste disposal– [Any bunker spill significantly less harmful]
• SAFETY:– Less incidents with engine breakdowns caused by poorer quality
fuels / lower maintenance load – No need of complex fuel change-over operations– No risk of incompatibility of blended fuels– Safer working environment for crews
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FUEL OPTIONS TO REDUCE AIR EMISSIONS
At what cost and who takes responsibility ?
• High sulphur residual with abatement technology such as scrubbers, etc.
• Low sulphur residual
• Combination HS/LS residual
• MDO (Low sulphur)
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CO2 Emissions – Net Environmental Benefit
• Additional refinery CO2 emissions from de-sulphurisation of residuals
• Additional refinery CO2 emissions from MDO production/distillation
• Ship CO2 emissions lower with MDO due to lower fuel consumption
• Ship CO2 emissions lower with MDO since no need to heat residual fuels prior treatment & injection
• High CO2 emissions in manufacturing & operating scrubbers
• Higher CO2 emissions with catatylic converters when using residual fuels rather than distillates
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Volatile Organic Compounds (VOC) Emissions & their Control
VOCs generated both during loading and on passage
• Vapour return lines used in some ports
• INTERTANKO developed VOC control procedure (VOCON) with potential to reduce by more than 70% VOC emissions on passage
• System further enhanced by adoption of the Pres-Vac VOCON P/V valve
• Further industry development with KVOC loading system
• Norway advocating incorporation of VOC Management Plan in to Annex VI
• Ongoing work by INTERTANKO on VOC operational controls related to cargo Reed Vapour pressure
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BLG Working Group Options: SOx
• A. Status Quo - No change• B. Sulphur Emissions Control Area (SECA):
– A global sulphur cap (unchanged or lower value) – SECA sulphur cap lowered in two tiers:
• 1.0% in [2010]• 0.5% in [2015]
• C1. Change to distillate fuels (no SECA) :– Use of distillate fuels for all ships– A global sulphur cap in two tiers:
• 1.0% in [2012]• 0.5% in [2015]
– Include in MARPOL Annex VI the specification for the distillate fuel to be used by ships
• C2. Global cap – As C1 but allows use of residual fuel + scrubbers
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What next ?
• BLG : 16 -20 April 2007
• MEPC 56: 9-13 July 2007
• EU Commission to take stock of progress– Review of Sulphur Directive – 2008– Scope for Community measures to reduce ship
emissions pursuant to Council’s conclusions – 2008
• US considers own legislation if IMO does not deliver - ?