Shanghai International Maritime Forum 2007 Oil Transportation and Pollution Prevention

1. Shanghai International Maritime Forum 2007Oil Transportation andPollution Prevention Tim Wilkins 国际油轮船东协会 Regional Manager Asia-Pacific Environmental Manager Image Courtesy of NORDEN AS

2. 国际油轮船东协会 • Business Environment • Oil Transportation and Pollution Prevention • Accidental • Deliberate • Future considerations

3. 1. Business Environment 国际油轮船东协会 World Oil Supply 1900-2005 (Million bls/day)

4. 1. Business Environment 国际油轮船东协会 Crude Oil Seaborne Trade

5. 1. Business Environment 国际油轮船东协会 Crude Imports (m tonnes) Source: Braemar Seascope

6. 1. Business Environment 国际油轮船东协会 China: Crude oil import sources(‘000 tonnes) Source: Braemar Seascope

7. 1. Business Environment 国际油轮船东协会 • Oil consumption per capita • (Litres/day - 2003)

8. 1. Business Environment 国际油轮船东协会 The World needs Tankers • World Oil Consumption 3.7 billion ts • Transported by sea 2.3 billion ts • > 60% transported by sea. As an Industry we may not be loved BUT WE ARE NEEDED

9. 1. Business Environment 国际油轮船东协会 Zero tolerance Source: International Herald Tribune, Tuesday October 11 2005

10. 2. Oil Transportation and Pollution Prevention 国际油轮船东协会 So long as we have a demand we will have a risk… Tonnes spilt per billion tonne-mile transported

11. 2. Oil Transportation and Pollution Prevention 国际油轮船东协会 the problems are obvious, the solutions are less so two branches to the problem Large Scale Accidental Spills Persistent and Deliberate Discharges

12. 100 15 18 21 24 27 32 33 % dwt share* : 80 41 49 SH/DB/DS 78 60 94 DH 85 82 40 79 76 * Assumes 73 68 67 phase out 59 51 according to 20 regulations 22 (rounded 6 upwards, 25 0 years after 2010 1991 1997 End 06 End 10 End 03 End 04 End 05 End 07 End 08 End 09 End 02 . 2. Oil Transportation and Pollution Prevention 国际油轮船东协会 Tanker fleet; double and single hull %

13. 2. Oil Transportation and Pollution Prevention 国际油轮船东协会 • Solutions • Maintenance of existing vessels • Coatings, integrity of welding… • Enhanced Surveys (Condition Assessment) • Role of Port State Control • Places of Refuge: the Prestige disaster has clearly shown that arrangements to accommodate vessels in distress are inadequately regulated • Protection of Fuel Tanks

14. 2. Oil Transportation and Pollution Prevention 国际油轮船东协会 • Solutions • Maintenance of existing vessels • Coatings, integrity of welding… • Enhanced Surveys (Condition Assessment)

15. 2. Oil Transportation and Pollution Prevention 国际油轮船东协会 • Solutions • Maintenance of existing vessels • Coatings, integrity of welding… • Enhanced Surveys (Condition Assessment) • Role of Port State Control • Places of Refuge: the Prestige disaster has clearly shown that arrangements to accommodate vessels in distress are inadequately regulated • Protection of Fuel Tanks

16. 2. Oil Transportation and Pollution Prevention 国际油轮船东协会 the problems are obvious, the solutions are less so two branches to the problem Large Scale Accidental Spills Persistent and Deliberate Discharges

17. 2. Oil Transportation and Pollution Prevention Oil and Chemicals

18. 2. Oil Transportation and Pollution Prevention • Oil into the sea from • fuel oil waste (sludge) • bilge oil (machinery waste oil) • tank washing, cargo residues Fuel Oil Sludge from All Ship Types 187,990M/T Bilge Oil from All Ship Types 64,400M/T Cargo Discharges from Tankers 19,250M/T (1990 158,600M/T)

19. 2. Oil Transportation and Pollution Prevention 国际油轮船东协会 Achieving zero discharge • Industry Guidance on Use of Oily Water Separators and Completion of Oil Record Book • Guide for treatment of engine room wastes – including means to limit generation of waste, better management of waste, better design and sizing of equipment, (revisions to MARPOL), and additional training

20. 2. Oil Transportation and Pollution Prevention 国际油轮船东协会 Persistent and Deliberate Discharge of Oil • What to do with the waste oil: • Incinerate (air emissions issue) • Discharge at sea in legal quantities (15ppm) – not fuel oil sludge...! • Discharge ashore A typical Reception and Treatment facility Courtesy of OSRL/EARL Singapore

21. 2. Oil Transportation and Pollution Prevention 国际油轮船东协会 Port Reception Facility issue • International Law Obligates Availability and Adequacy • Problems: • Responsibility: Port vs Local Agencies • Profitability • Contaminated Oils • Solutions – enforcement and responsibility: • MARPOL Annex I • EU Directive • Case by case

22. 2. Oil Transportation and Pollution Prevention 国际油轮船东协会 Achieving zero discharge • Provision of adequate reception facilities for all waste types • Harmonization of fee system and mandatory delivery of waste • Effective on-board waste system design • oil water separation management • chemical management • Effective waste treatment and monitoring technology • Industry best practice • Supported by: • Aerial surveillance • Oil tracing and fingerprinting technologies

23. 3. Future challenges 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 82 92 02 79 80 81 83 84 85 87 89 90 91 93 94 95 96 97 98 99 00 01 03 04 06 88 86 05 国际油轮船东协会 The Human Element Reported tanker incidents • with human error cases increasing • groundings 17% • collisions 33%

24. 3. Future challenges 国际油轮船东协会 The Human Element • Current and future shortages • - Shortage now or in the future? • Quality gap (training and experience) • Attracting new officers – industry image and criminalisation • Industry Action • Human Element in Shipping Committee • Tanker Officer Training Standards (TOTS) • Cadet Berths – Survey & Policy • STCW revision / IMO Human Element Committee

25. 国际油轮船东协会 thank you 国际油轮船东协会 For more information please visit www.intertanko.com tim.wilkins@intertanko.com