1. Tim Wilkins Regional Manager Asia-Pacific Environmental Manager Anglo-Eastern Ship Management Annual Seminar 2010 “Current Environmental Issues and new regulations in the pipeline” Mumbai February 2010 Image Courtesy of NORDEN AS

2. 1.INTERWho? 2.Environmental Issues 1.Ship strikes on whales 2.Noise pollution 3.Biofouling 3.Environmental Regulations 1.Air emissions 2.Ballast water 3.Ship recycling 4.Some thoughts for the future

3. 1. INTERTANKO International Association of Independent Tanker Owners A non-governmental organization established in 1970 to speak authoritatively and proactively on behalf of tanker operators at international, regional, national and local level Representing oil and chemical tanker owners 260 Members 3,100+ tankers 75% of independent tanker fleet 85% of chemical tanker fleet 330 Associate Members NGO at IMO 23 staff with offices in London, Oslo, Washington, Singapore & Brussels 14 committees / 5 regional panels Strict membership criteria THE voice of the tanker industry

4. 1. INTERTANKO - Tankers and the environment Source: ITOPF Number of spills over 700 tonnes Industry Performance on Oil Spills (35 year trend)

5. 1. INTERTANKO - Tankers and the environment Industry Performance on Oil Spills Tonnes spilt per billion tonne-mile transported Data source: ITOPF/Fearnleys

6. 2. Environmental Issues

7. Ship strikes on whales International Issue IMO’s Guidance to States - routing measures and speed restrictions, but initiated/regulated through IMO Regional Laws USA – speed restrictions and speeding fines! Source: IFAW

8. 2. Environmental Issues Noise pollution Adverse anthropogenic marine/ocean noise impacts on cetaceans and other biota or... Noise pollution and its effect on marine mammals IMO Technical Guidelines for ship-quieting technologies plus potential navigational and operational practices Shipping noise increasing by 3dB per decade

9. but first...Anti-fouling Systems –Entry into force of the AFS Convention –INTERTANKO Environmental Committee Move towards biocide-free systems Comparison of silicon systems Antifouling Problem = Chemical Biofouling Problem = Biological 2. Environmental Issues Biofouling Invasive species a different route for organisms other than ballast water

10. External and Internal hull 'Niches': External skin / shell plating - typically where the antifouling is scratched (bow stem, bulb), missing, mismatched or exhausted (e.g. dry-dock support strips) hi-wear areas (rudder, waterline) anode blocks uncoated areas (prop, rudder pivot) sea chests thruster tunnels, grills, azimuth units, etc Internal - bilge spaces, strainer boxes, seawater pipe work 2. Environmental Issues Biofouling

11. Biofouling as an issue for the IMO – invasive species Organisms found in the sea chest – hydroids, bryozoans, mussels 2. Environmental Issues Biofouling

12. Biofouling as an issue for the IMO Organisms found in the sea chest – Part 2 2. Environmental Issues Biofouling

13. Biofouling as an issue for the IMO Rudder post identified as favoured niche area for many organisms 2. Environmental Issues Biofouling

14. Scale of issue defined and indication of severity in relation to ballast water 36% of species introduced into North America attributed to biofouling 77% of species introduced into Port Phillip, Australia attributed to biofouling Seek risk based approach in initial stages Platforms, barges, pontoons, and derelict and laid-up vessels which have been moored for extended periods of time; Recreational and small craft which spend significant periods at moorings or in marinas and which also do not, or cannot use high performance antifouling coatings; Poorly maintained merchant vessels; Vessels near the end of their docking cycles Vessels with long docking cycles which do not undertake in-water cleaning of unprotected or poorly protected areas, such as propellers, and around rudders and seawater intake grates between dockings. Hull resistance management - Micro versus Macro biofouling Air emissions benefits Invasive species benefits 2. Environmental Issues Biofouling

15. Biofouling – going forward IMO Guidelines National hull management requirements – USA & Australia Ban on hull management/cleaning ! 2. Environmental Issues Biofouling

16. 3. Environmental Regulations

17. INTERTANKO submission to IMO in 2006 Distillate fuels with sulphur cap: - From [2010], maximum of 1% sulphur - For engines installed after [2015], maximum of 0.5% sulphur Global sulphur emission control area Why distillate fuels? Single global standard avoids switching fuels and carrying several types Solution should focus on the root cause of the problem, not the effect of cleaning up the air pollution on the ship after it is created With no other measure, immediately reduces: – SOx emissions by 80% to 90% – PM emissions by 90% – NOx emissions by 10% to 15% Negates the need for abatement technology, associated wastes and disposal of such wastes 2. Environmental Regulations Air emissions

18. IMO adopts amendments to Annex VI with entry into force on July 1, 2010 Open sea4.50%Prior to Jan 1, 2012 3.50%Jan 1, 2012 0.50%Jan 1, 2020* (*Review of 0.50% standard to be conducted by 2018 to determine availability of fuel. If not possible, then date becomes Jan 1, 2025) SECAs1.50%Prior to Mar 1, 2010 1.00%Jan 1, 2012 0.10%Jan 1, 2015 Equivalency measures allowed if they are “at least as effective in terms of emissions reductions” 2. Environmental Regulations Air emissions

19. Regional Regulations California Air Resources Board (CARB) air emission regulations - Requires use of fuel with sulphur content of 0.5% or less when within 24 miles of California - Engine failures and reduced power resulting from fuel switching and use of low sulphur fuel EU sulphur directive - Requires use of fuel with sulphur content of 0.1% or less when at berth in port of EU member - Risk of explosions in auxiliary boilers 2. Environmental Regulations Air emissions

20. July 2009 IMO agreed on Interim Guidelines on the method of calculation of the Energy Efficiency Design Index (EEDI) for new ships Interim Guidelines on voluntary verification of the EEDI Guidelines for voluntary use of the ship Energy Efficiency Operations Indicator (EEOI) Guidelines for Ship Energy Efficiency Management Plan (SEEMP) Workplan for Further Consideration of Market Based Instruments (MBIs) 2. Environmental Regulations Air emissions – Greenhouse Gases (GHG)

21. Ship Energy Efficiency Management Plan –Developed as a ship-specific plan by the ship owner –Part 1 – What the Plan should look like in four parts 1.Planning: Package of measures identified & Goal setting 2.Implementation: Implementation system 3.Monitoring: Monitoring system (tools and record keeping) 4.Self-evaluation & Improvement: Voluntary reporting –Part 2 – List of possible options for improving energy efficiency (use of INTERTANKO’s Guide) 2. Environmental Regulations Air emissions – Greenhouse Gases (GHG)

22. INTERTANKO’s Guide for a Tanker Efficiency and Emission Management Plan 1. 1. Introduction 2. 2. Establishing the Company and Ship Management Plans 3. 3. Voyage Optimisation Programme 4. 4. Propulsion Resistance Management Programme 5. 5. Machinery Optimisation Programme 6. 6. Cargo Handling Optimisation 7. 7. Energy Conservation Awareness Plan 2. Environmental Regulations Air emissions – Greenhouse Gases (GHG)

23. 2. Ballast Water Management – Issue Development

24. 2. Environmental Regulations Ballast Water Management IMO Ballast Water Convention –Entry into force dates –Technology –Guidelines

25. Entry into force - 1 –The BWM Convention will enter into force 12 months after ratification by 30 States, representing 35 per cent of world merchant shipping tonnage. –As at 27 January 2010: 21 countries representing 22.63% of world merchant shipping tonnage –Implementation dates still important... 2. Environmental Regulations Ballast Water Management

26. Entry into force - 2 Summary of implementation dates: Ship constructed before 2009 BW capacity 1500-5000m3 – have treatment system from first intermediate or renewal survey after anniversary date in 2014 BW capacity less than 1500m3 and greater than 5000m3 – have to have treatment system from first intermediate or renewal survey after anniversary date in 2016 Ship constructed in or after 2009 BW capacity less than 5000m3 shall have a treatment system installed at its second annual survey and no later than 31/12/2011 Ship constructed after 2009 but before 2012 and with a BW capacity greater than 5000m3 shall have a treatment system from first intermediate or renewal survey after anniversary date in 2016 Ship constructed in or after 2012 with a BW capacity of greater than 5000m3 shall be constructed with a BW treatment system 2. Environmental Regulations Ballast Water Management

27. Technology Update –Still concern from tanker operators regarding the installation of treatment systems that have not been tried and tested on a larger scale. –Lloyd’s Register release ballast water technology overview –All systems should be type approved by the administration – those using active substances will need Basic approval and Final approval by IMO –Systems to watch... NEI Treatment Systems Alfa Laval OceanSaver 2. Environmental Regulations Ballast Water Management

28. IMO Convention Requirements Ballast Water Management Plan Ballast Water Record Book Ballast Water Management Certificate and surveys to verify compliance Mandates ships to conduct ballast water exchange until equipment is approved to meet ballast water standard 2. Environmental Regulations Ballast Water Management

29. IMO Guidelines (5 key guidelines out of 16) 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 2. Environmental Regulations Ballast Water Management

30. Local, National and Regional Regulations Australia (Victoria)New Zealand Argentina (Buenos Aires) Brazil Panama Canada PeruChile Russia (Novorossiysk) Georgia Lithuania (Klaipeda) Ukraine Israel USA To see the details of their requirements, go to : www.intertanko.comwww.intertanko.com – Environment – Ballast Water – Ballast Water Legislation 2. Environmental Regulations Ballast Water Management

31. The key regulatory development... Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships 2009 Unlikely to enter into force until 2013 at the earliest, but... Pressure on ship operating industry to move towards compliance in the transitional period Interest from INTERTANKO members to recycle in compliance with the Hong Kong Convention Recommendation to recycle ships in accordance with the Hong Kong Convention, where possible Industry Working Group – “Transitional Measures – for Shipowners Selling their Ships for Recycling” 2. Environmental Regulations Ship Recycling

32. Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships 2009 Key Elements 1. Recycling Facilities – environmentally sound 2. Mandatory reporting scheme 3. Ship Recycling Plan 4. Minimising Potentially Hazardous Materials 5. Inventory of Hazardous Materials (aka Green passport) 2. Environmental Regulations Ship Recycling

33. Transitional Measures - for Shipowners Selling their Ships for Recycling Key Elements Activities During the Lifecycle of a Ship –Inventory of Hazardous Materials – accurate and updated Selling a Ship in Accordance with the Convention –Methods of Sale – direct or through cash buyer –Ensuring a Facility is Competent –Ship Recycling Plan – specific to the vessel being recycled –Prior Removal of Hazardous Materials – yard selected on capability to handle waste –Safe for Entry and Hot Works – tanks cleaned to allow/facilitate gas freeing at the yard –Certification and Flag State Reporting – 3 rd party verification –Other Factors to Consider Facility Management Plan Worker Health and Safety Waste Management 2. Environmental Regulations Ship Recycling

34. 4. Recap of issues addressed 1. 1.INTERWho? 2. 2.Environmental Issues 1. 1.Ship strikes on whales 2. 2.Noise pollution 3. 3.Biofouling 3. 3.Environmental Regulations 1. 1.Air emissions 2. 2.Ballast water 3. 3.Ship recycling 4. 4.Some thoughts for the future

35. 4. Some final thoughts On rules and regulations... 1. Issues generate guidelines. If guidelines deemed not to be working, legislation is proposed, developed and adopted. 2. Regional legislation frequently leads to international legislation. On the environment and environmental issues... 3. Environmental awareness and an environmental culture needs to be evident. STCW amendments simply the baseline/minimum requirement. 4. An appreciation of the environment is not simply something for work but importantly, for life in general.

36. thank you www.intertanko.com