Review of Activity 2007-2008 | 50th Anniversary Special section
Review of Activity 2007-2008
The period of mid 2007-2008 has witnessed the sustained growth of the world economy and maritime trade despite economic downturns in US, though impacts of recent unprecedented hikes in oil price need to be carefully monitored. Since the successful Houston Conference in Aril and May 2007, we have discussed intensively a number of key issues, especially at both the Executive Committee (Exco) Meeting in Kuala Lumpur, October 2007 and the Mid-term Board Meeting in Dunkirk, April 2008.
In particular, the issue of climate change has come up high on our agenda. We must act now, as any measures will take time to have a significant effect. To this end, in March 2008, IAPH has launched a web-based guideline “Tool Box for Port Clean Air Program” to assist all ports, IAPH members and non-members alike, to develop their
own integrated programs to improve air quality in ports. Also the Board
of Directors adopted a resolution in Dunkirk to urge ports in the world to fight the global warning.
In July 2008, major ports and port cities around the world met at the World Ports Climate Conference (WPCC) in Rotterdam and discussed how to improve air quality and reduce greenhouse gas emissions in ports. IAPH provided a full support to the conference and is committed to take the lead to implement the WPCC’s declaration.
Over this period, Technical Committees have published a couple of reports.
As all the committees are busy working on critical issues, your active
participation would be greatly appreciated.
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 covering a period of
the Houston Conference (Apr/May 2007) to the Mid-term Board Meeting, Dunkirk,
France (April 2008).
- IAPH World Ports Conference in Houston
- Port Clean Air Program
- Ship Emission Control
- Greenhouse Gas Emission Control
- Supply Chain Security
- Bulk Trade
- Callin for Early Rafitication
- Unwanted and Harmful Aquatic Organisms in Ballast Water
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
While the world economy shows some slump due to sub-prime mortgage loan
problems, the world trade continues to expand in container trade and bulk
trade. IAPH always stresses the need to expand port capacities as planned
in a long term. At the same time, IAPH fully recognizes the critical importance
for ports to contribute to protection of natural environment, especially
reduction of air pollutions in port area.
As its basic policy on air environment, IAPH adopted “A Resolution on Clean Air Programs for Ports” in May 2007 at the Houston Conference, urging world ports to take effective steps by promoting their own ports’ clean air programs, recognizing that no one-size-fit-all solution exists as conditions surrounding air pollutions vary greatly among ports.
In March 2008, IAPH launched a web-based guidelines called “The IAPH Tool Box for Port Clean Air Program”, which had been developed by the IAPH Port Environment Committee led by Dr. Geraldine Knatz, Executive Director, Port of Los Angeles. The Tool Box provides user ports with various information and practical strategies to reduce polluted air emissions for each emissions source, such as ocean-going vessels, harbor crafts, cargo handling equipments, etc. The Tool Box is now posted in public area of IAPH website for the reference of ports in the world, regardless whether IAPH members or not, when developing their own clean air programs.
As one of the effective measures to protect port clean air, “cold ironing”
or “on-shore power supply” is being introduced, which requires vessels
to use shore supplied electrical power, shutting down ship engine while
in berth. Believing a unified international technical standard of ship-shore
connection is essential to promoting “cold ironing” among world ports,
IAPH has been taking part in discussion and work at the International Organization
for Standardization (ISO) and the International Electrotechnical Commission
(IEC). Both organizations are hoped to cooperate to an early establishment
of a single and unified standard for on-shore power supply. MARPOL
Ship Emission Control
MARPOL Annex VI, which entered into force on 19 May 2005, has started control on ship gas emissions by limiting sulphur contents in fuel and setting limit on NOx emission from ship engines. While the regulation was regarded innovative in restricting ship emissions at that time of its adoption in 1997, accelerated restriction on land source gas emissions would not allow ship industry to stay in older emissions standard. The International Maritime Organization (IMO) started working to amend the rule in July 2005.
After intensive discussions made at IMO in its Sub-Committee on Bulk Liquids and Gases (BLG) and in its Marine Environment Protection Committee (MEPC), the final regulations of sulphur content in fuel was agreed at MEPC 57th session in April 2008.
- Global Cap: Current 4.5% will be lowered to 3.5% from 1 January 2012, and further down to 0.5% from 1 January, 2020
- Emission Control Area(ECA): Current 1.50% will be lowered to 1.00% from 1 March, 2010 with further down to 0.10% from 1 January, 2015
The amended regulations have a provision to review the availability of ultra-low sulphur fuel by 2018 to determine the implementation date for 0.5% Global Cap. Progressive reductions in nitrogen oxide (NOx) emissions from marine engines were also agreed. The above draft amendments to Annex VI and the NOx Technical Code will be submitted to MEPC 58 which meets in October 2008 for adoption. IAPH highly appreciates that a single unified international regulation on ship emissions was finally agreed at IMO, believing the new regulations will contribute to an improvement of air quality in the world including ports. IAPH also strongly hopes that all parties involved will work closely to ensure the availability of 0.5% sulphur content fuel by the designated date.
Greenhouse Gas Emission Control
International approach to control greenhouse gases (GHG) emissions to cope
with the Earth’s climate change was initiated by establishing International
Panel on Climate Change (IPCC) in 1988. Kyoto Protocol to United Nations
Framework Convention on Climate Change (UNFCCC) entered into force in 2005
obliging developed countries listed in its Annex I to reduce their overall
emissions of GHG “by at least 5% below 1990 levels” in the period of 2008
to 2012. For quantified reduction commitment for the period after 2012,
Post Kyoto Protocol is scheduled to be established by the end of 2009.
Being assigned as international organization to pursue the target of limitation
of GHG emissions from ships, the International Maritime Organization (IMO)
has worked for developing the CO2 Emission Indexing Scheme and the CO2
Emission Baseline. In April 2008, Marine Environment Protection Committee
(MEPC) at its 57th session agreed to 9 principles for future IMO regulatory
framework on GHG Emissions from ships. To accelerate work at IMO, the Oslo
inter-sessional meeting was held in June 2008 to develop key measures for
reducing GHG emissions from ships such as New Ship Design CO2 Index and
Operational CO2 Index. IMO intends to prepare its position paper on GHG
emissions from ships for submission to the 15th session of Conference of
the Parties (COP) in the end of 2009, where Post Kyoto Protocol scheme
will be finalized.
Being aware of a contribution of GHG emissions to global climate change,
major ports in the C40 Large Cities Climate Leadership Group (C40 CITIES)
have formed C40 World Ports Climate Conference (WPCC). They gathered at
Port of Rotterdam on 9-11 July, 2008 to discuss how port can play active
roles in reduction of GHG emissions and adopted its World Ports Climate
Declaration incorporating initiatives to reduce GHG emissions in port.
IAPH adopted a resolution on its basic position to cope with the GHG emissions,
at Dunkirk board meeting on 16 April 2008, sharing the recognition of WPCC
and showing our support to its activities. IAPH believes that measures
to reduce GHG emissions will be effectively combined with measures to reduce
emissions of air pollutions while promoting port business and containing
operation costs.
Supply Chain Security
For enhancing global supply chain security, various initiatives have been
introduced by individual countries such as 24-Hour-Rule for obtaining advance
cargo information before cargo loading and Container Security Initiatives(CSI)
for security inspection at loading ports, adding to international security
programs introduced in port facilities and ships according to SOLAS XI-2
and ISPS Code in July 2004.
World Customs Organization (WCO) adopted a scheme of Authorized Economic
Operator(AEO) as key concept of “Framework of Standards” in June 2005 stressing
the importance of Customs-Private cooperation in supply chain security.
The scheme of AEO is aimed at not only enhancing security in international
supply chain but also facilitating international trade through providing
certified traders with incentives of Customs procedures such as faster
processing and reduced examination rates.
On January 1st 2008, the EU started its own AEO program which was applied to both importing and exporting companies with an aim to enhancing security for shipments entering or leaving Europe. Besides EU, quite a few countries have been actively introducing the AEO or similar schemes to improve supply chain security within their respective territories/jurisdictions, such as Canada, Australia, New Zealand, Japan, Korea, China, Malaysia and Singapore. The US has put in place the Customs Trade Partnership against Terrorism (C-TPAT) since 2002 that is a precedent to the AEO scheme, though only applied to parties involved in importing goods to the US.
Recognizing critical importance to develop an international security regime
to cover the entire process of supply chain, IAPH believes that bringing
together those local/regional AEO schemes through bilateral or multilateral
mutual-recognition into a formation of an international AEO scheme will
be more effective rather than introducing 100% container scanning program
in loading ports.
Bulk Trade
In the Review of Maritime Transport 2007 United Nations Conference on Trade
and Development (UNCTAD) reported that the world seaborne trade reached
7,416 million tons in 2006. It also revealed that 5 major bulk-trades (iron
ore, coal, grain, bauxite/alumina and phosphate) by sea reached 1,828 million
tons in 2006 gaining 41.9% increase from 2000, while total cargo trade
by sea increased by 23.9% during the same period.
According to a data of International Iron and Steel Institute (IISI) and
relevant forecast, world crude steel production will rise to 1.65bn tons
by 2010 from 1.34bn tons in 2007. This enormous surge of steel production
leads to huge expansion of iron ore shipments. The Australian Bureau of
Agricultural and Resource Economics (ABARE) predicts iron ore trade will
expand from 841m tons in 2007 to 1,318m tons in 2013. Backed by these enormous
demands of iron ore shipments, some 28 very large ore carriers (VLOC) of
more than 300,000 dwt size are on order at present and more than 200 Capesize
carriers are expected to be delivered in single year of 2010.
China as a major player of the steel production, consumes enormous volume of iron ore, importing almost 50% of world traded iron ore despite it is ranked 2nd in iron ore production in the world. Seeking for additional sources of iron ore, China has made long term purchase contracts of iron ore with Brazil. The longer a sea-lane of iron ore becomes, the larger a size of ore-carrier becomes in order to enjoy scale merit in transportation cost. Vale, a giant iron ore mining enterprise in Brazil recently disclosed a plan of ordering 14 ultra large ore carriers of more than 400,000 dwt size.
The huge increase of bulk trade and enlargement of vessel size focus another
challenge on ports, i.e. necessity of expansion of port capacity which
includes well connected hinterland transportations in total logistics,
in addition to development of port capacity for accommodating VLOC vessels.
Calling for Early Ratification
Convened at its Mid-term Board Meeting, Dunkirk, France, April 2008, IAPH unanimously adopted a “Resolution on accelerating the ratification process of the HNS, Bunkers and Wreck Removal Conventions and the 1996 Protocols to LLMC 1976”, calling for a prompt and early ratification by the states involved of the following three conventions and a protocol that are of immediate concern to the entire maritime world.
- International Convention on Liability and Compensation for Damage in connection with the Carriage of Hazardous and Noxious Substances by Sea, 1996;
- International Convention on Civil Liability for Bunker Oil Pollution Damage, 2001;
- Nairobi International Convention on the Removal of Wrecks, 2007;
- 1996 Protocols to the International Convention on LLMC of London 1976.
The resolution was proposed in the background of relatively slow ratification processes with only a small number of states having ratified them to date. These IMO conventions are of critical importance to the world port community as they reinforce the liability and compensation scheme for damages caused by maritime accidents to port facilities and marine environment, on the basis of which ports can facilitate prompt compensation.
IAPH invited its member ports to urge their respective governments to ratify
the above conventions, which, in IAPH’s opinion, should result in effective
implementation of the enhanced liability and compensation regimes and further
may give grounds to IMO in resuming talks on the issue of Places of Refuge,
for which, IAPH considers, a new convention is indispensable.
Unwanted and Harmful Aquatic Organisms in Ballast Water
Ballast water is essential to the safe and efficient operation of modern
shipping, providing balance and stability to un-laden ships. However, marine
organisms carried around the world in ships’ ballast water and discharged
into new environments may become invasive and severely disrupt the native
ecology and, as a consequence, they may adversely impact economic activities
such as fisheries, aquaculture, tourism, etc. They are harmful and unwanted,
as they are one of the four greatest threats to the world’s oceans. The
other three are land-based sources of marine pollution, overexploitation
of living marine resources and physical alteration/destruction of marine
habitat.
To eliminate the transfer of harmful aquatic organisms and pathogens through
the control and management of ships’ ballast water and sediments, the International
Maritime Organization (IMO) adopted in February 2004 the International
Convention for the Control and Management of Ships Ballast Water &
Sediments. At present, only 13 States, representing about 3.62% of the
world’s merchant shipping, have reportedly ratified the Convention, which
however will only enter into force 12 months after ratification by 30 States,
representing 35% of world merchant shipping tonnage.
The Convention mandates that all ships that carry ballast water install a treatment system starting from 2009 and by 2016, according to their constructed year and capacities of ballast tanks, while we have not seen any widely recognized system that can meet the Convention’s requirements. For ports and terminals where cleaning or repair of ballast tanks occurs, they will be required to provide adequate facilities for the reception of sediments.
Given highly complex and multi-disciplinary nature of the problem encompassing
biology, chemistry, engineering, law, economics, etc. and with many parties
involved, IAPH continues to address the issue in close cooperation with
other interested parties, so that ports can contribute to formulating effective
policies for practical, safe, cost-effective and environmentally sound
“ballast water management”.
As the ratification process of the legislation at IMO tends to be slow, individual countries or local authorities have already taken steps to develop more stringent measures to prevent the introduction of non-native species through ballast water and sediments, as seen in Australia, Canada, USA, and others.
