A chill on environmental protection as Arctic shipping heats up

23 Apr 13 - 11:37

WWF is calling on IMO member states to commit to environmental protection in the Polar Code

After a year's delay, the United Nations body tasked with developing polar shipping regulations has recommended provisions to address the environmental impacts of Arctic shipping - but they don't go far enough, says conservation organization WWF.

The International Maritime Organization (IMO) met last month to shape the Polar Code, a legally binding set of rules for shipping in polar regions. Although the final Polar Code won't be adopted this year, recommendations made now will strongly influence the environmental provisions of the final Code.

"The provisions proposed on environmental protection issues are simply too weak", says Lars Erik Mangset, Advisor for WWF-Norway. "Major risks, like acute pollution from heavy fuel oil, are not even addressed. And although the Polar Code is legally binding, many of the most pressing issues have been placed in the voluntary section of the code or deferred to later discussions, potentially outside the Code."

Rapid warming in the Arctic has led to the opening up of commercial sea routes in the region.  While destination ship traffic in and out of the Arctic is expected the greatest traffic increase the next decades, transport over the Northern Sea Route (above Russia and Scandinavia) has seen substantial growth over the past few years and is in particular being targeted as a route for tanker and bulk traffic.  Increased traffic in these waters, coupled with the fact that the Arctic is up to 95% unsurveyed and chart coverage is generally inadequate for coastal navigation, means that the risks of operating should be matched with suitable precautionary measures in order to protect the environment. For example, banning the use and carriage of heavy fuel oil in sensitive areas would reduce the environmental impacts of a spill significantly.

"Arctic shipping will expand massively in the next few decades. The recommendations are disappointing, but they are not yet set in stone. Arctic countries have an opportunity now to advocate world-class environmental protection measures, which this region needs and deserves", says Dr. Simon Walmsley, Marine Manager for WWF-International.

Solid international and domestic legislation, respectively in the Antarctic and in Canada, sets a good precedent. Canada already in place close to zero-tolerance limit on oil and oily discharge and other waste streams from ships, and has advocated for similar provisions in the Polar Code. This is a positive precedence for other Arctic states to follow.

WWF is calling on IMO member states to commit to meaningful environmental protection in the Polar Code, through a ban on heavy fuel oil in the Arctic, as well as heightened restrictions on operational discharges, carbon emissions and the spread of alien species in ballast water.

Source: WWF

Canada: Investments in efficiency of the Port of Halifax

23 Apr 13 - 15:28

Canada to fund towards the integrated port logistics system

The Canadian Minister of National Defence Peter MacKay, announced federal funding for new technology development at the Port of Halifax.

The Government of Canada has contributed funding towards the integrated port logistics system and the air gap system.

"A strong and efficient transportation sector is critical to Canada's future economic growth. I am proud that our government has supported these two Intelligent Transportation Systems projects, which will improve the efficiency of the supply chain, reduce costs, and increase the satisfaction of customers moving goods through Atlantic ports," said Minister MacKay. "Ultimately, these will increase safe, efficient and reliable traffic flows while reducing environmental impacts."

"Advanced technologies make it possible to improve operational safety, security, efficiency and environmental responsibility without changing the existing infrastructure," said Karen Oldfield, President and Chief Executive Officer of the Halifax Port Authority. "We look forward to working with our stakeholders to identify technologies that can improve operations, reduce costs, and increase customer satisfaction. The integrated port logistics system will use a market-driven approach to prioritize solutions, define business requirements, and develop and market the technologies. We appreciate the federal government's support of technology advancements that ensure we remain a highly competitive port."

With larger ships accessing the port, there is a need to continuously monitor vessel clearances under each of the harbour bridges. The upgrading and enhancing of the bridge air gap system will enable the port to identify exactly the ship clearance.

Port operators and shippers will have confidence in the ability of ships to transit beneath the bridge, preventing delays in accessing and leaving the port. These investments will ultimately help reduce levels of emissions and fuel usage and ensure the safety of the bridges and will also result in increased efficiency and safety for port users.

Source: Port of Halifax

Marshall Islands updates maritime legislation

15 Apr 13 - 14:58

Bill No. 17 and Bill No. 25 amendments

Two bills were recently passed by the Republic of the Marshall Islands (RMI) Nitijela in October 2012 and March 2013 respectively. These bills amend the RMI Maritime Act (the "Act") to include provisions for vessels under construction to be registered and mortgages recorded on such vessels (Bill No. 17) and provisions allowing for the recordation of a financing charter to protect a vessel lessors' security interest (Bill No. 25).

Bill No. 17 allows a vessel under construction to be registered when the keel is laid or a similar act is commenced. Documents for registration will be similar to those required in a traditional vessel registration except that, in lieu of the Builder's Certificate, the party seeking registration must provide a certified copy of the construction contract and documentary evidence that construction of the vessel has commenced. The RMI Maritime Administrator will then issue a Construction Certificate of Registry providing provisional registration of the vessel under construction. Upon completion of construction, the vessel must meet statutory requirements to obtain full and permanent registration under the RMI flag. Further, the amendments allow a vessel under construction mortgage to be recorded with the RMI Maritime Administrator and for this mortgage to have the same priority as a preferred mortgage until the mortgage is discharged.

Bill No. 25 allows equipment lessors, who provide lease financing of vessels, to enjoy the same security in collateral as a mortgagee enjoys under a preferred mortgage. New section 302A of the Act permits the registration and recording of a financing charter as the equivalent of a preferred mortgage against the vessel and allows for the recordation of any renewals, amendments, supplements, assignments or other instruments related to a recorded financing charter. A financing charter must be signed and acknowledged by the documented owner and must include the name and official number of the vessel, the date of the financing charter contract, the names and addresses of the documented owner and the charterer, and the aggregate of the nominal amount of all charter hire payments and purchase option amounts payable, or which may become payable, under the financing charter, exclusive of any interest, indemnities, expenses, or fees. All other provisions applicable to a preferred mortgage will also apply to a financing charter. The amendments in Bill 25 bring the Act in line with the United States Uniform Commercial Code.

"These amendments were made in response to requests from the international shipping community to better protect their interests in a vessel under construction and/or a chartered vessel," said Bill Gallagher, President of International Registries, Inc. "We are fortunate to be able to work efficiently with the RMI Nitijela to ensure that the most modern legal provisions are in place to provide a necessary competitive advantage in today's challenging world markets," he concluded.

Source: Marshall Islands

Enhancing the competitiveness of the Port of Singapore

12 Apr 13 - 16:47

Review of Singapore's port and the Maritime Singapore Green Initiative

Speaking at the Singapore International Maritime Awards during Singapore Maritime Week, Mr Lui Tuck Yew, Minister for Transport, announced initiatives aimed at further enhancing the competitiveness of the Port of Singapore.

Speaking at the Singapore International Maritime Awards during Singapore Maritime Week, Mr Lui Tuck Yew, Minister for Transport, announced initiatives aimed at further enhancing the competitiveness of the Port of Singapore.

Review of Singapore's port dues structure and rates

Minister Lui shared that the Maritime and Port Authority of Singapore (MPA) has completed a comprehensive review of Singapore's port dues structure and rates, in consultation with the shipping industry and other stakeholders. Singapore's current port dues structure has served us well since its introduction in 1990. The review aims to ensure that the port dues framework remains relevant, to enhance Singapore's competitiveness as a hub port and to enable more efficient use of our limited anchorage space. As part of the port dues review, MPA will also simplify the port dues structure and streamline the various incentive schemes.

The changes to port dues are expected to save the industry an additional $11 million a year. This is on top of the $11 million a year savings from the 20% port dues concession for container ships that will be made permanent and the $7 million a year from the waiver of Maritime Welfare Fee introduced in October 2012.

Under the revised port dues structure, up to 83% of vessel calls are expected to pay lower port dues compared to today. About 10% of vessel calls will pay the same port dues and up to 7% of vessel calls, mainly long staying vessels, may pay more port dues, if call patterns remain unchanged.

Enhancements to the Maritime Singapore Green Initiative

To further encourage companies to adopt environmentally-friendly shipping practices, Minister Lui announced several enhancements to the Maritime Singapore Green Initiative. The S$100 million Green Initiative, which comprises the Green Ship Programme, Green Port Programme and Green Technology Programme, was introduced in 2011 to encourage and support the industry's efforts towards clean and green shipping in Singapore.

The Green Ship Programme will be expanded to recognise Singapore-flagged ships that adopt approved SOx scrubber technology, which go beyond the International Maritime Organization's (IMO) emission requirements. This comprises a 25% reduction of their Initial Registration Fees and a 20% rebate on their Annual Tonnage Tax. This is in addition to the current 50% reduction on Initial Registration Fees and 20% rebate on Annual Tonnage Tax for ships that exceed the IMO's Energy Efficiency Design Index. Singapore-flagged ships which adopt both energy efficient ship designs and approved SOx scrubber technology that exceeds IMO's requirements will enjoy 75% reduction of their Initial Registration Fees and 50% rebate on their Annual Tonnage Tax.

Under the Green Port Programme, the port dues reduction for ocean-going vessels that burn clean fuels or use approved abatement technology throughout their entire stay in the Port of Singapore will be increased from 15% to 25%. A new tier of port dues reduction of 15% will be introduced for ocean-going vessels that burn clean fuels or use approved abatement technology only while at berth.

For more details, you can click here.

Source: MPA Singapore

India: Growth of Cargo Handling in Port Sector

15 Apr 13 - 11:35

Cargo traffic increase at Indian ports

Ports are economic and service provision units of a remarkable importance since they act as a place for the interchange of two transport modes, maritime and land, whether by rail or road. Therefore, the essential aspect of ports lies in their intermodal nature. India has a coast-line of around 7517 Kms with 13 major ports and 199 non-major ports along the coast-line and sea-islands.

Cargo Traffic at Indian Ports

During April – November 2012, major and non-major ports in India handled a total cargo throughput of 623.05 MT reflecting an increase of 2.81 % over the same period last year. There is marginal deceleration in growth of cargo handled at major ports from 1.33 % in April-November 2011 to (-) 2.88 % in April – November 2012. However, the growth at non-major ports is encouraging. As compared to growth of 9 % in April – November 2011, it has reached 12 % (estimated) in the corresponding period in 2012.

Out of 12 major ports, cargo handling at 6 ports is showing positive growth, among which, growth in throughput at Ennore was the highest at 19.82%, followed by Kandla (14.76%), New Mangalore (12.48%), Mumbai (9.14%), V O Chidambaranar (1.99%) and marginal increase at Cochin at 0.54%. In contrast, six ports have shown a contraction in cargo growth, ranging from 40.46% to 1.76% in ports viz. Mormugao (-40.46%), Visakhapatnam (-17.72%), Kolkata (-15.23%), Chennai (-6.00%), Paradip (-2.48%) and JNPT (-1.76%).

Commodity-wise Cargo Traffic at Major Ports

The marginal decrease of 2.88% in the cargo throughput in the major ports during April - November 2012 over the corresponding period during 2010-11 is mainly due to decline in exports in Iron ore to the tune of 53.38% due to restriction imposed by the Government on the Iron ore mining activity which is followed by the contraction in import of fertilisers and fertiliser raw materials in the major ports by 24.34%. The energy commodities viz. Coal and POL are showing an impressive growth of 17.99% and 3.48% respectively. The other general traffic increased by 7.19%. The container traffic both in terms of tonnage and twenty equivalent units is almost static. Jawaharlal Nehru Port Trust continued to be the leading container handling port in the country with a share of about 48% followed by Chennai (25%) and the remaining share of 27% is handled by the other major ports excepting Ennore.

Cargo Traffic at Non-major Ports

During the eleventh five year plan (2007-12), the traffic at non-major ports increased at an annual rate of close to 14.75 per cent. Non-major ports handled more than 39 percent of the total maritime freight traffic of the country during 2011-12. The growth in cargo handled at non-major ports has been facilitated by sustained growth in non-major ports located in Andhra Pradesh and Gujarat, aided by substantial increase in the cargo traffic of coal, containers, building materials and fertilizers. The growing importance of non-major ports in handling cargo traffic has helped alleviate the congestion at major ports. Gujarat accounted for around three fourth of the total traffic handled by non-major ports followed by Andhra Pradesh (13 per cent), Maharashtra (6 percent) and Goa (4 percent). Four maritime States namely Gujarat, Maharashtra, Goa and Andhra Pradesh together accounted for close to 96 per cent of the total traffic handled by the non-major ports in the current year.

Port Efficiency

Efficiency at ports has an important bearing on the transaction cost of the shipping lines. Major ports have improved their efficiency of operation particularly in terms of turnaround time (TRT). TRT is the total time spent by a ship at the ports from its entry until its departure. Average TRT for all major ports improved from 8.10 days in 1990-91 to 4.47 days in 2011-12. During April-September 2012, the TRT at 4.15 was lower compared to 4.80 days in the corresponding period of the last year with a range between 1.54 days at Cochin Port to 6.27 days at Kandla Port.

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You can find more information in the relevant article India: Performance of Major Ports Improved

Source: Press Information Bureau, Government of India