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Singapore 3 April 2007 COUNCIL AGENDA & INTERTANKO ISSUES. Peter M. Swift. Council Agenda. Corporate Affairs: Election of Chairman, MD’s Report Ship Recycling Revision of MARPOL Annex VI Information Sharing/Early Warning System Panama Canal Toll increases

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council agenda
Council Agenda

Corporate Affairs: Election of Chairman, MD’s Report

Ship Recycling

Revision of MARPOL Annex VI

Information Sharing/Early Warning System

Panama Canal Toll increases

Best practices to control inadvertent Cargo Vapour Emissions

Fleet Development – including conversions of single hulls

Human Element in Shipping Committee (including Tanker Officer Training Standard)

EU Ship Source Pollution Directive

European Issues

US Issues

Shipboard Waste Management – Revision of IMO regulations & guidelines on OWS

Pilotage – including Torres Straits

Reception Facilities

Lifeboat Safety (services and inspections)

Terminal Vetting Database

Q-Quest Membership criteria

Committee Reports

Regional Panel Reports

Poseidon Challenge

Date and Place of Next Meetings

intertanko singapore
INTERTANKO Singapore

Ship Recycling

industry interim strategy
Industry Interim Strategy
  • 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.

intertanko singapore1
INTERTANKO Singapore

Panama Canal Toll increases

panama canal expansion
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)
panama canal tolls current proposed
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)

panama canal tolls proposals for increases over next 3 years
Panama Canal TollsProposals 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
intertanko singapore2
INTERTANKO Singapore

Fleet Development

single hull tanker phase out an uncertainty post 2010
(Single Hull) Tanker Phase Out- an “uncertainty” post 2010

70

MARPOL (min phase out - trading of SH

60

until 25 years)

EU + no SH after 2010

50

OPA90

40

30

20

10

0

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

m dwt

Assumptions :

MARPOL phase out allows for trading until the age of 25 years old, max 2015

The 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

further information available at www intertanko com
Further information available at www.intertanko.com

The Revisions to

MARPOL Annex II

(entry into force 1/1/2007)

A Practical Guide

November 2006

changes in the pipeline
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.
intertanko singapore3
INTERTANKO Singapore

European Issues

eu issues
EU Issues
  • Ship Source Pollution Directive (Status report)
  • Maritime Safety Package III
  • Green paper on future maritime policy for the EU
  • EU Competition Rules
eu maritime safety package iii
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
us issues
US Issues
  • California Air Resources Board Air Emission Standards
  • Massachusetts lawsuit
  • Lawsuit on Ballast Water discharges
intertanko singapore5
INTERTANKO Singapore

Shipboard Waste Management – Revision of IMO regulations & guidelines on OWS

revision of imo regs guidelines on owss
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.

intertanko singapore6
INTERTANKO Singapore

Lifeboat Safety (services and inspections)

ilama intertanko intercargo joint feedback forum
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 CONCERNS

email : lifeboats@intertanko.com

intertanko singapore7
INTERTANKO Singapore

Poseidon Challenge

intertanko singapore8
INTERTANKO Singapore

Date and Place of Next Meetings

future dates
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

other issues
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
reported tanker incidents reducing until 2005 6
Reported tanker incidents reducing – until 2005/6 !!

1000

800

420

600

War

336

H & M

252

400

F & E

168

Grounding

84

Collis.

200

Misc

0

00

01

02

03

04

05

06

0

78

79

80

81

82

83

84

85

87

89

90

91

92

93

94

95

96

97

98

99

00

01

02

03

04

06

86

88

05

Number

slide32

Shipping is more than ships moving around the world;

it’s about people and passion

it’s about expertise and commitment

www.maritimefoundation.com

slide33

mikcThe Maritime Industry Knowledge Centre

Directory Dictionary Events Careers eLibrary Useful Links Contact us Refined Search

At the heart of the Foundation is the Maritime Industry Knowledge Centre designed to help the visitor make sense of the complex world of shipping, letting them see the business in a new light.

DIRECTORY: Find our ready-to-digest guides to the different sectors

DICTIONARY: Find out the meaning of a word or phase used in shipping

EVENTS: Find up-to-the minute conference listings

CAREERS: Check out the wide-ranging job opportunities available in the maritime industry

SEARCH: If you know exactly what you are looking for, just enter your keyword (s)

Enjoy your journey!

Who makes the rules?

Owning and operating a ship

A Ship’s Life

When the ship comes to shore

Different ships, different cargoes

The human element

drivers of change
Drivers of Change
  • 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
  • Legislators, regulators and others are taking action and planning more
  • 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

imo marpol annex vi prevention of air pollution from ships
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

challenges for imo
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 ?

marpol annex vi proposals for amendments
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
revision of marpol annex vi intertanko proposal
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
distillate mdo advantages air emissions
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
distillate mdo additional benefits
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
fuel options to reduce air emissions
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)
co 2 emissions net environmental benefit
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
volatile organic compounds voc emissions their control
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
blg working group options sox
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
what next
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 - ?