Hellenic Mediterranean Panel Royal Olympic Hotel, Athens

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Hellenic Mediterranean PanelRoyal Olympic
Hotel, Athens

• Thursday 18 March 2010

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IMOs BWM Convention

• The BWM Convention will enter into force 12
  months after ratification by 30 States,
  representing 35 of world merchant tonnage
• As at 2 March 2010 21 countries representing
  22.63 of world merchant tonnage

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IMOs BWM Convention

• Summary of implementation dates
• Ship constructed before 2009
• BW capacity 1500-5000m3 treatment system from
  first intermediate or renewal survey after
  anniversary date in 2014
• BW capacity lt 1500m3 and gt 5000m3 treatment
  system from first intermediate or renewal survey
  after anniversary date in 2016
• Ship constructed in or after 2009
• BW capacity lt 5000m3 treatment system installed
  at second annual survey and no later than
  31/12/2011
• Ship constructed in or after 2009 but before 2012
  
• BW capacity gt 5000m3 shall have a treatment
  system from first intermediate or renewal survey
  after anniversary date in 2016 (by 01/01/2016 for
  2009-built)
• Ship constructed in or after 2012
• BW capacity gt 5000m3 shall be constructed with a
  BW treatment system

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IMOs BWM Convention
Members express concern over systems and
deadline Environmental Committee sees need to
find solutions to assist Members and seek
evidence that systems will work in practice

• Treatment
• Generation of chemicals
• Approval
• Capital cost (USD)
• Power consumption
• Other costs consumables, spares, maintenance
• Operating costs 10-year
• Cost (Capex Opex)
• Size (m3)
• Weight (kg)
• Pressure drop
• installations/contracts
• Explosion-proof (intrinsically safe)?
• Largest installation

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IMOs BWM Convention
IMO BWM Convention Guidelines Important but
overlooked Available on our website
www.intertanko.com
Guidelines for Ballast Water Sampling
Guidelines for Ballast Water Management and Development of Ballast Water Management Plans
Guidelines for Ballast Water Exchange
Guidelines for Ballast Water Exchange Design and Construction Standards
Guidelines for Sediment Control on Ships
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COP 15

• Hopes
• Commitment to emissions reductions from developed
  countries
• Adaptation funding for developing countries to
  adapt to effects of climate change
• Equal treatment of ships regardless of flag
• Outcome
• Copenhagen Accord - neither accepted nor rejected
  by Plenary only noted. Non-binding -
  principles (of reductions and funding)
• Kyoto Protocol remains in force - CBDR remains
  embedded in Copenhagen Accord
• Onwards to Mexico 2010 - binding agreement?

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Complicating factor

• CBDR . . .
• Common but differentiated responsibility
• Applying GHG emission standards only to flags of
  Kyoto Protocol Annex 1 countries will not have
  significant effect only 35 of fleet
• PROBLEM ships not linked to countries except by
  flag and that can be changed leading to carbon
  leakage
• IMO has to end up with same treatment for all
  flags
• Hope CBDR will not be the cause of delay to IMO
  process

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COP 15

• Provides few answers for shipping, but raises
  some questions
• How will the IMO handle CBDR vs its desire to
  treat all flags the same?
• Copenhagen Accord refers to new and additional
  funding to be provided for developing countries
• Will shipping be asked to come up with this? Seen
  as deep pocket?
• If so, could this result in double tax for
  shipping if MBIs introduced?
• IMO MEPC 60 next week may shed some light

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IMO workplan

• MEPC 60 (March 2010)
• Chairman hopes to have 2 WGs
• Technical and operational measures
• MBIs
• EEDI (technical measures) is key this years work
  fine tuning
• Further details of MBI proposals to be submitted
  looking at methodology and criteria for
  feasibility studies and impact assessments of
  MBIs

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IMO workplan

• ? 2 Intersessionals
• June - on final work op measures, and tech
  (EEDIs)
• June-Sept - on MBIs
• MEPC 61 (October 2010)
• Hope to have tech (EEDIs) and op regulations for
  approval.
• Hope will clearly indicate which MBI it wishes to
  further evaluate, and will identify elements to
  be included
• MEPC 62 (Summer 2011)
• Hope will be in a position to finalise regulation
  and report progress to Assembly
• EU will wait only until end 2011

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Technical measures
Energy Efficiency Design Index (EEDI) -
requires a minimum energy efficiency of new
ships - stimulates technical development -
separates technical/design based measures from
operational/commercial measures - compares the
energy efficiency of an individual ship to
similar ships which could have taken its cargo
Cost Emission of CO2 Benefit Cargo capacity
over a distance
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Operational measures

• Ship Energy Efficiency Managment Plan (SEEMP)
• improve energy efficiency of ships in operation
• best practices on operational procedures -
  setting goals
• plan implementation strategy
• monitoring Energy Efficiency Operational
  Indicator (EEOI)
• procedures for self-evaluation/improvement
  towards set goals
• Energy Efficiency Operations Index (EEOI)
• - assist ship operators in evaluating
  environmental
• performance of their fleet - CO2
  emissions
• - how to measure a ships energy performance
• - how the EEOI can be used to promote low
  emissions from ships

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INTERTANKO position

• Shipping should strive to significantly reduce
  GHG emissions
• Advocates measures that would result in CO2 and
  other GHG emissions reductions from tankers
• Believes that energy efficiency will be gained
  through better coordination with other
  stakeholders involved in logistical chain
• Supports IMO process to develop regulations that
  do not hinder commerce
• Supports ship neutral regulations, equally
  applicable to all flags

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INTERTANKO position

• Supports adoption of EEDI
• Supports adoption of SEEMP (has developed SEEMP
  model for tankers TEEMP)
• Stakeholders and regulators to agree on targeting
  levels for GHG emission reductions
• The target levels should be ambitious
• Targets should also be realistic and thus
  provide incentives for sustainable efforts to
  achieve them
• It is important to initiate the process of CO2
  emission reduction from shipping as soon as
  possible

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Operational measures

• INTERTANKOs Guide for a Tanker Efficiency and
  Emission Management Plan helps with application
  of SEEMP

• Introduction
• Establishing the Company and Ship Management
  Plans
• Voyage Optimisation Programme
• Propulsion Resistance Management Programme
• Machinery Optimisation Programme
• Cargo Handling Optimisation
• Energy Conservation Awareness Plan

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Virtual Arrival

• What is it trying to achieve?
• Reduce unnecessary emissions and fuel use via
  mutually agreed reduction of vessels passage
  speed to meet an agreed arrival time at port,
  thereby reducing known inefficiencies in supply
  chain.
• One Member calculates 40 of time in port so
  savings to be made
•  
• Benefits' of a timed arrival
• Reduced emissions
• Reduced crew fatigue
• Reduced port congestion
• Reduced emissions in port area
• Reduced use of fuel
• The safety of the vessel remains paramount
• The authority of the vessels Master remains
  unchanged

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Virtual Arrival

• How does it achieve this?
• OCIMF-INTERTANKOs Virtual Arrival project
• Cooperation between charterer / terminal and
  tanker operator
• When ships ETA turns out to be before terminal
  is ready, operator and charterer agree speed
  adjustment
• Operator retains demurrage, while fuel savings
  and any carbon credits are split between parties
• Independent 3rd party calculates/audits
  adjustment

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Virtual Arrival
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Virtual Arrival

• Virtual Arrival in fact
• Batumi ( Black Sea) to Isle of Grain (UK)
• ETA 15/0650 but tank space not available before
  16th
• Vessel asked to reduce speed to arrive 16th am
• Daily progress reports issued to all concerned
• Final report issued by Weather Analysis Provider
  to show savings

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Virtual Arrival
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Virtual Arrival

• Vessel sailed Batumi 2 Sept 2009.
• Initial ETA 15 Sept 0650.
• Vessel actually arrived Isle of Grain 16 Sept
  1000
• Virtual arrival was 15 Sept 0650
• (basis of demurrage calc)
• 27 reduction in fuel consumption and emissions -
• bunker savings 58.83 ts HFO
• Emissions saved
• CO2 183.2 ts
• Nox 4.39 ts
• Sox 3.49 ts

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CHINA - Regulations on the Prevention and Control
of Ship-Induced Pollution of the Marine
Environment

• 1st March 2010
• Covers any ship-induced pollution accident or any
  ship-related operation that causes or may cause
  pollution damage to the internal waters,
  territorial seas, and the contiguous zones,
  exclusive economic zones and continental shelves
  of the PRC and all other sea areas under the
  jurisdiction of the PRC
• Requires ship emergency response plans
• Requires insurance to cover claims for pollution
  for all ships,
• except lt 1,000gt and not carrying oil
  cargoes
• Such insurance to be provided by an entity
  approved by China MSA (Mtime Safety Agency)
• Limit of liability is as per PRC Maritime Code
  (LLMC 76) (seems no limit?)
• The operators of any ships carrying bulk
  hazardous and pollutant liquid cargo shall
  contract with an MSA-approved local clean-up
  contractor
• Receivers of persistent oil cargoes are required
  to contribute to the PRC Fund, which would
  compensate for ship-induced pollution claims that
  are in excess of CLC limits
• Provision made for discharge and receipt of waste
  (port reception facilities)
• Fines for breach of provisions estimated Yuan
  10k-300k (1.5k-45k)

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CHINA - Regulations on the Prevention and Control
of Ship-Induced Pollution of the Marine
Environment

• INTERTANKO Observations and Queries
• Not certain whether CLC 92 for persistent oil or
  Bunker Convention 2001 for ships over 1,000gt
  would suffice in terms of insurance
• Entities to provide insurance cover not yet
  decided / approved by China MSA PI?
• We require a list of MSA-approved clean-up
  contractors (language barriers standard terms?)
• Assumed that SOPEP and SMPEP would suffice as the
  ship emergency response plans
• Although China not party to the CLC Fund,
  contributions to a PRC Fund would seem to be a
  local variation on the CLC Fund principle
• Not clear whether standardised advance
  notification forms and waste delivery receipts
  for port waste reception facilities will be used

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CHINA - Regulations on the Prevention and Control
of Ship-Induced Pollution of the Marine
Environment

• IG PI clubs understand delay for 3 months (or 3
  months from publ of approved contractors list)
  but no official proof/evidence received
• We await official English translation and further
  guidance its not that China wont tell us the
  answers it doesnt yet appear to have them!

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