EMEA News
SOHAR Chief Warns on Cost, Quality, and Safety Concerns From New ECA Rules
Sohar Port and Freezone's Executive Commercial Manager, Edwin Lammers, has called for unity among global industry leaders to tackle cost, quality, and safety concerns brought about by new Emissions Control Area (ECA) rules coming into effect on January 1, 2015.
Writing in an emailed press release, Lammers predicts that without cooperation, not only would the cost of producing bunkers be higher, but serious risks to engines and vessels may increase.
"Reducing the sulphur content in shipping fuel has obvious benefits for the environment and will no doubt bring about a substantial reduction in the carbon footprint of the world's cargo fleet," said Lammers.
"However, if refining processes are not fully prepared for the shift, reducing sulphur content has the potential to increase the cost of refining processes, affect cat fines that can lead to damaged engines, and in the worst case scenario, increase the risk of flashpoints in marine gasoil that could lead to onboard explosions."
Lammers called for the world leaders in the shipping industry to work together on matters such as innovative testing methods, quality control, fuel efficiency, and risk management practices.
"As global leaders, we will need to work together to ensure the industry is prepared, and minimise the impact of these potential risks," he said.
"At the same time, we will need to work hard to keep costs down - especially given the almost immediate demand for low sulphur MGO that will begin at the start of next year and the addition blending that will be required to reduce sulphur content during the refining process. At SOHAR we are fortunate to have an abundance of low-cost energy, but globally it is quite the opposite."
Lammers noted that while the Omani port was outside of the current ECA zones, its location on major trade routes and rapidly expanding business interests meant many of the ships calling at the port will be required to adhere to the new ruling.
The new ECA rules mean that from January 1, 2015 all vessels operating within an ECA must either use a marine fuel with a sulfur content not exceeding 0.10 percent by weight, or have an equivalent method of compliance.
In August Omanoil Matrix Marine Services LLC (MXO) announced it was expanding its bunkering services at Sohar.
