Review of Activity 2006-2007 | 50th Anniversary Special section
Review of Activity 2006-2007
Over the past year and so, the issue of greening port especially how to
control air emissions of portrelated activities has become high priority
on our agenda. IAPH extensively addresed this critical issue which culminated
in a resolution on clean air port programs at the Houston Conference. All
ports are now urged to take effective measures in an integrated manner
to reduce air emissions from various activities of port operations.
Since restructured at the Shanghai Conference in 2005, all IAPH technical
committees are always at a full swing to carry out their tasks and work
plans for 2005/2007 to meet the needs of the day. These issues and others
are part of the deliberations and resolutions of the IAPH Mid-term Board
Meeting in Mumbai (2006), Exco Meeting in Shizuoka (2006), and Conference
in Houston (2007).
As always, IAPH is committed to addressing a dynamically evolving agenda
toward building the strategic framework that is critical to the on-going
success of the world port industry.
The followings are the highlights of IAPH activity taking place in the
past year covering from the Mumbai Mid-term Board Meeting (April, 2006)
to the Houston Conference (Apr/May 2007).
- IAPH World Ports Conference in Houston
- Port Clean Air Program
- Ship Emission Control
- Port Reception Facilities
- Security
- Wreck Removal Convention
- Places of Refuge
- LNG and Ports
IAPH World Ports Conference in Houston
The 25th IAPH World Ports Conference returned to Houston after 30 years
since the 10th Conference in 1977. Attended by some 800 delegates and
accompaning persons from 50 countries on all the seven continents of the
world, this biennial world ports summit was held from 27 April to 4 May
2007.
Between plenay sessions and working sessions, addressing a range of issues
faced by the world port industry, the participants heard from several distinguished
guest speakers including U.S. Commerce Secretary Carlos Gutierrez, Deputy
Secretary of U.S. Department of Homeland Security Michael Jackson, Deputy
Administrator of U.S. Maritime Administration, Julie Nelson, and others.
At the closing session on May 4, the world port leaders unanimously adopted
a resolution calling for ports to promote clean air programs to help fight
global warning. The IAPH resolution reaffirms the group’s recognition of
ports’ need to adopt clean air programs to better sustain development of
the global society. IAPH urges ports, members and non-members alike, to
take active and effective steps towards clean air programs, while stressing
the critical need to develop integrated action plans for individual ports.
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Port Clean Air Program
The world economy continues to globalize, international maritime trade
is drastically increasing and port throughputs are similarly growing at
unprecedented rates. No doubt, the world economy and trade could not sustain
their growth without efficient port operations throughout the world. As
ports continue to play such critical roles, however, their harmony with
the natural environment, locally and globally, should be ensured.
IAPH has been extensively addressing a range of environmental issues over
the years. Ports are the meeting place of virtually all modes of transport,
resulting in multiple emission sources often close to cities where air
quality may affect health and quality of life. Moreover, in view of emerging
serious concerns of the global warming, IAPH wants to draw more attention
to air quality of port areas and undertake as many efforts as possible
to reduce air emissions from port operations.
IAPH following its basic position established in Mumbai in April 2006 adopted
a significant resolution on “Clean Air Program for Ports” in Houston in
May 2007. IAPH urges ports, members and non-members alike, to take active
and effective steps towards clean air programs. IAPH also stresses the
critical need to develop integrated action plans for respective ports or
no one-size-fits-all solution exists for ports with their large variations
in pollution level, emission sources, geographical and meteorological conditions.
To assist ports, IAPH is now developing the “Tool Box for Port Clean Air
Programs”, guidelines on air emission control measures related to each
of main emission sources of port such as ships, harbor crafts, yard equipment,
trucks, rails and construction equipment. It is to be made available at
the IAPH website towards the 2007 autumn.
One of such measures being introduced is to completely shut down ship engines and instead supply shore power while ships are at berth. It is known as AMP or cold ironing. IAPH believes that a common technical standard internationally accepted for power supply should be developed before a variety of standards are adopted at ports. IAPH has already started close collaboration with ISO who is to develop technical standards for power supply connection.
Ship Emission Control
For freight movement, shipping is regarded far more efficient in energy
consumption and environmentally friendly than any other modes of transportation.
Nevertheless, as global trade and shipping activities are rapidly expanding,
reducing air emissions from ships has become one of priority environmental
issues in the world.
IMO has developed and promulgated international regulations on air emission from shipping activities with MARPOL Annex VI, which was ratified in 2004 and entered into force on May 19, 2005. For controlling SOx, it sets global cap of 4.5% m/m on the sulfur content in marine fuels and further sets stringent limit of 1.5% m/m for the SOx SECA. The Baltic Sea Area was designated as 1st SECA with enforcement on May 19, 2006 and the North Sea and English Channel will follow as the 2nd SECA on November 22, 2007.
As for NOx emission from ships, IMO has set relevant regulations and requirements for marine diesel engines and exhaust gas treatment systems.
IMO is now considering further tightening up ship air emission controls,
for which several proposals have been submitted by the contracting governments.
At its 56th session in July 2007, the MEPC of IMO reviewed various options
and approaches. One of proposals is to adopt global use of distilled fuel,
which was argued against by shipping industry with a concern of possible
increases of CO2 in processing the heavy fuel oil and also uncertainty
of market supply capability. Therefore it was decided to task a scientific
group of experts to study and review the impacts of future fuel options
not only on environment and human health but also on shipping and petroleum
industries. The group will report the results to MEPC in March 2008.
Meanwhile, the EU has adopted it’s own measures to regulate air emissions by Sulfur Directives,
whereby 1.5 % m/m or less sulfur content of marine fuel is allowed for all ferries calling at EU ports
from August 11, 2006. The EU is likely to revise and tighten its Directives to apply all vessels in the
EU waters.
Port Reception Facilities
MARPOL convention regulates ships not to discharge wastes and polluting
substances into sea and requires ports to provide sufficient reception
facilities for ship wastes. In accordance with the IMO’s “Guidelines for
ensuring the adequacy of port waste reception facilities” adopted in March
2000, the contracting governments have been working on this requirement
at ports, but there still remain persistent complaints about inadequacy
of reception facilities from shipping industry.
To tackle this issue, IAPH together with other maritime organizations such as BIMCO, ICS, INTERCARGO, INTERTANKO and OCIMF, formed up “The Shipping and Port Industry Reception Facility Forum” several years ago.
In October 2006, the MEPC of IMO adopted an Action Plan to formally take up the issue of inadequacy of port reception facilities, which was drafted by the FSI sub-committee based on the Industry Forum’s Action Plan. The Action Plan covers six main subjects, such as reporting, information on port reception facilities, equipment/technology, types and amount of wastes, regulatory matters and technical co-operation assistance.
IAPH in full support to the IMO’s Action Plan is working closely with the MEPC members to make progress on identified key issues. IAPH firmly believes it as basic premise that 1) reception facilities should be provided to handle wastes of ships normally calling at the port and 2) costs for reception facilities should be recovered from users.
In July 2007, the MEPC at its 56th session agreed on the following main issues.
1) Amendment of the reporting format for inadequacy of reception facilities
to incorporate new categories of NLS due to the entry into force of the
revised MARPOL AnnexII on January 1, 2007.
2) Establishing a corresponding group to especially focus on work items
of a target completion date of up to 2008 in the Action Plan.
3) Amendment of the target completion date for work item 6.1(development
of assistance and training program) of the Action Plan to be brought forward
from 2010 to 2009.
Security
In August 2006, when two years had passed since the SOLAS amendments and
the ISPS Code entered into force on July 1st 2004, IAPH conducted a worldwide
survey on port security among its member ports. The survey revealed that
the ISPS Code had generally been smoothly implemented and significantly
improved awareness for port security among those working in the port industry.
Member ports also reported that exercises and drills as required by the
ISPS Code were fully implemented with active participation of parties concerned,
and port facility security plans were under strict audit and review. Developing
member ports, however, stressed their continued needs for technical and
financial cooperation to further enhance port security.
UNCTAD’s survey report of the costs of meeting the security requirements
in ports, in which IAPH participated, was published in March 2007. The
main objective of the study was to establish the range and order of magnitude
of the ISPS Code-related expenditures made from 2003 through 2005. Based
on survey responses, UNCTAD estimated the port-related expenditures of
the ISPS Code to range between about $1.1 billion and $ 2.3 billion initially
and $400 million and $ 900 million annually. These expenditures would be
equivalent to increases in international maritime freight payments of 1%
and 0.5 % respectively. The report shows that the port industry takes on
various approaches to finance those costs, raging from full funding by
port authority through government assistance to market-driven solutions
such as security surcharge levied on port users.
IAPH has also endorsed to promote a holistic approach to the security system
of global logistics chain, well beyond port terminals and port areas. To
this end, I APH has been working closely with the WCO, especially at the
PSCG to consider key issues relating to implementation of the WCO’s Framework
of Standards to Secure and Facilitate Global Trade. IAPH has also been
taking active part in the ISO working group to develop ISO 28000 series
of supply chain security standards.
Wreck Removal Convention
Long suffering days of great danger caused by shipwrecks in and around
access channels to ports will be ended by a new international convention.
“The Nairobi International Convention on the Removal of Wrecks, 2007”,
more popularly known as WRC, was signed at the diplomatic conference of
IMO held in Nairobi, May 14-18, 2007.
The convention is of considerable significance to ports and coastal states.
Under the new regime, once a coastal state determines that a wreck poses
a hazard, its owner has obligation to remove the wreck with their own accounts,
otherwise the state has a right to remove and direct claim to insurer of
relevant costs. Therefore, the convention will enable ports to recover
costs quickly when action has to be taken to remove hazards caused by wrecks,
including ships in distress. The system of compulsory insurance for ships
of over 300 GT also helps ports minimize their risks in cost recovery.
One of major issues remaining unsettled until the final adoption was the
scope of the convention - whether to apply it solely to the EEZ of coastal
states or extend to their territorial seas or waters. The diplomatic conference
in Nairobi finally adopted an “opt-in” system, where coastal states have
option to choose the applicable area of the convention only to their EEZs
or extend to their territory seas.
In the case of ships in distress, coastal states would not have to wait
until ships have entered the territorial waters before taking necessary
action. It will clearly reduce the threat of damages to ports and marine
environment as well. In fact, the convention will bring about a series
of benefits to ports, coastal states and the whole world. While ships in
distress often pose serious risks and damages to marine environment and
coastlines, the convention will make it possible to deal with incidents
as early as possible.
IAPH has been actively taking part in consideration of the new convention at IMO since the inception. The convention will enter into force 12 months after at least 10 states have ratified it. Now IAPH urges governments to ratify this instrument as soon as possible in view of its critical role to enhance safety of navigation and ports and to protect marine environment.
Places of Refuge
The issue of “Places of Refuge” has been under consideration for some time
at IMO. When a ship is in distress at sea, it often requests to be granted
a place of refuge such as a nearby port, but at present no international
framework is in place to coordinate all parties concerned on such an occasion
and moreover no sufficient compensation is guaranteed for any damages that
might happen to a place of refuge offered.
To this end, IMO adopted two resolutions in November 2003, namely “Guidelines
on places of refuge for ships in need of assistance” and “Maritime Assistance
Services”. It says that “there is no obligation for the coastal state to
grant (an access to a place of refuge), but the coastal state should weigh
all the factors and risks in a balanced manner and give shelter whenever
reasonably possible”.
Despite submissions by various organizations including IAPH to create a
new convention, IMO took a decision in April 2005 to place higher priority
to implementation of the existing liability and compensation conventions.
However, the CMI drafted a new framework titled “Instrument on Places of
Refuge” with a view to establishing a new convention solely dedicated to
this issue. IAPH has been actively working with the CMI to formulate a
scheme acceptable to the world’s ports. In May 2007, IAPH reiterated its
position at the CMI’s meeting in London that access of distressed vessel
to ports should only be allowed with sufficient guarantee of compensation
for possible enormous damages which ports might encounter.
LNG and Ports
The International Energr Agency says that the world’s energy demand is
likely to grow by more than half over the next quarter of the century and
this means all in the transport chain have to expand capacity. Ports furthermore
need to take into account a trend of diversification among energy resources.
While oil will stay on the main stream, LNG will rapidly increase its share,
not only due to diversification policy of consuming countries but also
their recognition of LNG as clean energy. When used, LNG is much lower
in CO2, SO2 and NO2 than other major energy resources such as oil and coal.
Participants of the Houston Conference in April/May 2007 heard that LNG
will take an increasing role of the US energy scene as a result of the
US administration’s policy change, and imports will have to grow to meet
demands. Currently more than 40 LNG terminals are being developed or proposed
along the US coast. In Europe, development of LNG terminals is also gearing
up. France, for instance, is developing large new LNG terminals at Ports
of Dunkirk and Le Havre in addition to present terminals at Fos Marseilles
and Nates-St Nazaire. Another LNG terminal at Port of Rotterdam, first
ever in the Netherlands, is expected to become operational in 2010. Japan,
where 25 LNG terminals are presently in operation, the largest concentration
in the world, is planning to further expand its capacity. China, which
is already the largest consumer of oil after the US, is increasing its
imports of LNG very rapidly. China’s first LNG receiving terminal was developed
in the southern province of Guangdong at Dapeng Bay, which received the
first LNG carrier in June 2006.
Ports will have to effectively cope with increasing demands of LNG, taking into full consideration a range of requirements of safety, security and environment. In October 2006, IAPH organized a special session on development of LNG terminals during the Executive Committee meeting in Shizuoka, Japan. Also IAPH has been compiling relevant information and references on LNG terminals to assist member ports in planning, developing and operating LNG terminals.
