Double-hulled benefits for all

After the disastrous Guimaras oil spill, the Maritime Industry Authority (Marina) issued a ruling to fast-track the commissioning of double-hulled oil and chemical shipping vessels by 2010.

The move was intended to phase out single-hulled tankers in the domestic trade to prevent incidents like the sinking of MT Solar I last year, which spilt some 220,000 liters of black oil near Guimaras Island, leading to the contamination of kilometers of coastline.

Double-hulled tankers are better able to withstand rough seas, thereby severely limiting oil or fuel leakages from product cargo compartments in the event of sinking.

Double-hulls are significantly safer than single-hulls in terms of maintaining cargo integrity, and in preventing or minimizing spillage and associated marine pollution when an accident occurs.

Aside from being a Marina mandate, all tanker operators are required by the International Maritime Organization, a United Nations agency that looks after maritime safety, to phase out single-hull vessels effective from 2005 to 2010.

In the meantime, single-hulled tankers 15 years or older will have to undergo a condition assessment scheme that stipulates stringent verification of ships’ structural conditions, among others.

This act was a result of several tanker mishaps spilling oil in international waters and killing marine life while destroying the livelihood of fishermen.

Remember when the Exxon Valdez sank off Bligh Reef in Alaska’s Prince William Sound spilling 10.8 million gallons of crude on March 1989? To protect their coastal waters, some countries in Europe have already in recent years banned single-hulled tankers from entering their ports.

Slow compliance

Some of the bigger tanker operators have started to comply with the mandate, but Marina seems to be having difficulty convincing smaller players to begin either acquiring new double-hulled vessels or converting existing fleets.

The steep cost is the main reason for the slow pace in compliance. The estimated cost of a brand new double-hulled tanker custom-fitted for local trade is about $12 to $15 million, and those that are just shopping for one now are finding most shipyards fully-booked until 2012.

Recent available data show there are some 214 tankers in the country, with 21 of them carrying black oil.

The other option is to convert existing tankers. This is significantly cheaper by 60 percent compared to acquiring brand new double-hulled vessels. The downside, however, is that with retrofitting, cargo capacity will be reduced by about 15 to 20 percent.

Expensive as the costs may be, it makes better sense for tanker operators to just invest in brand new double-hulled vessels. They’re in the business for the long-haul after all, and bigger capacity vessels will provide them the economies of scale that would enhance their competitiveness both in the local and international trade.

Facilitating compliance

Some of local oil companies had acted as early as two years ago to help local ship owners in either acquiring brand new double-hulled tankers or retrofitting existing ones.

By signing up for long-term supply contracts, oil firms are able to help ship owners hurdle the steep cost of compliance. Among the petroleum companies that have been pro-actively signing such “guarantees” are Petron, Shell, and surprisingly, even the new oil companies such as Flying V and Total Petroleum.

It is comforting to hear more new or newly-compliant vessels being let out to sea these days. This surely will make us sleep better knowing that oil products are doubly safe as they travel our seas most especially during stormy weather.

Another source of help available to ship owners who are not as lucky in securing long-term contract guarantees is through government financial institutions such as the Development Bank of the Philippines. A sizeable amount, I hear, has been set aside to finance such a capital intensive investment at relatively attractive terms.

Even as tanker operators and owners are rushing to comply, the situation I am told is opening doors for related industries. For instance, it gives our local shipbuilders the much-needed shot in the arm.

I have it that a group of shipbuilders under the Shipyards Association of Cebu has tied up with the Netherlands’ Damen Shipyards Gorinchem to initially  make four double-hull tankers by 2008.

This venture should further spur activities in the local shipbuilding industry as tanker operators rush to meet the 2010 Marina deadline.

More maritime safety measures

While Marina is making sure all existing vessels plying Philippine waters fully comply with the double-hulled requirement, maritime authorities can take a step further. They can assess existing laws and improve them so that there won’t ever be a Guimaras accident again.

After the Exxon Valdez disaster, the US Congress for instance, moved swiftly to pass the Oil Pollution Act of 1990. This law called for an integrated approach towards reducing future oil spills through preventive measures such as improving tanker design and operational changes. It even went as far as addressing oil pollution liability and compensation, spill response planning, and international oil pollution prevention and removal.

A similar review and strengthening of local maritime laws should be looked at by our legislators.

Let’s not forget also the need to upgrade the skills and competence of tanker officials and crew. Again, past sea mishaps have demonstrated the key role that shipping personnel play in steering the tankers to safe routes and havens.

The general public is anxiously hoping that the Marina directive is not just for media purposes. That these authorities are serious in ensuring compliance to double-hulled vessels regardless of who they are in the shipping business is very much welcome. Ultimately, marine authorities are considering the welfare of the general public above all.

Collegiate National Championship Elite Eight

The cast of the “Elite Eight” of the Filoil Flying V Collegiate Championship games is now complete. They are: San Beda College Red Lions, Ateneo Blue Eagles, FEU Tamaraws, JRU Heavy Bombers, UST Growling Tigers, University of Visayas Green Lancers, STI Olympians and the University of Mindanao Wild Cats.

All “Round of Eight” games will be played at the Arena, San Juan starting today Monday, 19th of November 2007. At 2:00 pm, University of Mindanao and University of Visayas will knock each other out to determine the Vis-Min representative in the “Final Four.” This will be followed by San Beda Red Lions exchanging claws with the UST Growling Tigers

On Wednesday, 21st November, games will feature knock-out matches between FEU Tamaraws and STI Olympians followed by Ateneo Blue Eagles vs. JRU Heavy Bombers.

All games are televised by Solar Entertainment Basketball TV over Sky Cable on the same day starting 5:00 pm. Watch and enjoy the excitement and hustle of collegiate basketball.

Should you wish to share any insights, write me at Link Edge, 25th Floor, 139 Corporate Center, Valero Street, Salcedo Village, 1227 Makati City. Or e-mail me at [email protected].