Shippers renew low-sulphur fuel pact
January 31, 2013 Category Logistics, Ports & sea transport
A group of shipping companies has extended, for another year, a voluntary scheme to use low-sulphur fuel to reduce air pollution from emissions while ships are berthed in Hong Kong. But they warned they could end the initiative, called the Fair Winds Charter, if “there is no substantial progress towards mandatory regulation by December 31, 2013”. The firms, who are members of the Hong Kong Liner Shipping Association (HKLSA) or the Hong Kong Shipowners’ Association (HKSOA), also urged the government to improve and simplify the incentive scheme launched by the Environmental Protection Department in September. Nearly 570 ships have been registered for the scheme, which gives a 50% reduction in port- and navigation-related charges for oceangoing ships using low-sulphur diesel. Tim Smith, Chairman of the HKLSA, said the incentive scheme covered only part of the extra cost of using the more expensive cleaner low-sulphur fuel. He said the actual proportion varied among shipping companies but for Maersk Line, where Smith is Chief Executive for north Asia, the cost was between USD1.5 million and USD2 million. Hong Kong’s Undersecretary for the Environment Christine Loh said legislation requiring oceangoing ships to use low-sulphur fuel was expected to be lodged with the Legislative Council after the summer recess. Loh hoped it could be approved by Legco “sooner rather than later”. Secretary for the Environment Wong Kam-sing said mandatory fuel switching at berth was the government’s “near-term target”, while an internationally recognized emission-control area covering the whole Pearl River Delta “is a long-term goal”. Preliminary discussions with officials in Guangdong and the Ministry of Transport in Beijing to create the emission-control area had begun, the South China Morning Post reports. If all container lines calling at Hong Kong switch to the cleanest fuel available, sulphur dioxide emissions from shipping will drop 80%.
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