The oil companies’ pressure hacks are once again busy, this time exerting tremendous effort on the Marina to move its deadline for the use of single-hulled vessels in inter-island transport of black oil products past the April 30, 2008 deadline.
Marina or the Maritime Industry Authority has issued a stern reminder that it will cancel all licenses of oil tankers, even remove the ship’s listing from the Philippine registry, if they do not comply with the requirement of using double hulls by deadline day.
Marina’s warning is part of the Philippines’ commitment under the International Maritime Organization (IMO) International Convention for the Prevention of Marine Pollution (MARPOL 73/78) as a preventive measure to minimize oil spills that could damage the world’s coastlines and rich aquamarine life.
Ecological disasters
The last biggest tragedy that happened in the Philippines was in early August of 2006 when the MT Solar I oil tanker sank off the coast of Guimaras island in the Visayas and leaked oil that polluted the island’s coastal areas and extensively damaged marine life and the environment.
In the uproar that followed, Marina came up with a memorandum circular in early 2007 that called for strict enforcement of the requirement to use double-hulled vessels in oil sea transports in accordance with the MARPOL agreement.
Double-hull vessels are less likely to spill oil in case of accidents since the bottoms and sides have two complete watertight layers. The interior hull acts as another barrier to spillage if the outer hull is broken as when the tanker runs aground or sinks.
The MARPOL convention had mandated the phase-out of single hull vessels by 2008 for fuel (bunker oil) tankers and by 2010 for refined petroleum (gasolines and diesel oil) tankers.
Marina likewise issued an advisory to all oil companies worldwide that effective end of April 2008, no single-hulled very large crude carriers (VLCC) would be allowed to enter Philippine waters to deliver crude (or even processed) oils.
The advisory was issued to avoid a similar incident that happened last December in Korea wherein a 270,000-deadweight single-hulled tanker was involved in an accident that caused a massive oil spill causing tremendous damage to the environment.
Last minute
Early this year, maritime industry sources said that some tanker operators were still waiting for the “last minute” to convert their ships to double hulls in the hope that Marina would extend the effectivity of its circular to a much later date.
The operators were complaining that conversion to a double-hull vessel was costly, and without the explicit assurance by oil companies of an extended lease, it would be difficult for the tanker owners to come up with the money despite the government’s announcement of soft loans from the Development Bank of the Philippines.
Conversion of a 5,000-ton single-hulled tanker to double hull would already cost from $6 million to $8 million. On the other hand, buying a brand new double-hulled tanker would require some $12 million to $18 million, depending on the size. Due to the old age of local in-country single-hull tankers, it may no longer be economically viable to convert them to double hull, operators said.
Happily, the numbers of tankers that have not converted are in the minority. Most have already complied with the double-hull rule, and are on schedule to meet the April 30 deadline.
Still, major oil companies like Petron, Shell and Caltex are fretting that the few tankers not in compliance would affect the supply of fuel oil in throughout country. And this is the case that they have been presenting of late to the Marina.
With the deadline fast approaching, non-compliant tanker operators are scrambling to get slots in shipyards locally and abroad for conversion works. But with shipyards busy trying to meet the global compliance deadline, those that can’t be converted by end-April will have to be dry-docked.
The three majors have reportedly expressed concern over the non-compliance by these contracted tanker operators. The oil companies say that they cannot afford delays in the transport of their products.
Resisting pressure
So far, Marina – ably headed by Vic Suaso – seems to be resisting the pressure to extend the deadline and rejecting requests for an extension. And rightly so.
The petroleum tanker industry and the oil companies have been given sufficient time and resources to comply with the international ruling. For the Philippines with its long stretches of coastline, Marina should uphold current safety conventions rather than risk accidents to the environment.
The cost of converting – even buying a brand new double-hulled tanker – will always be cheaper than cleaning up and rehabilitating miles and miles of blackened coastlines and saving the lives of coral reefs, aquatic plants, fish and birds, not to mention the livelihood and health of humans.
I am surprised that the oil companies are taking the cudgels for vessel owners who may not be able to comply with the double hull ruling by month-end. Are they so smug as to believe that threatening supply shortages once again will facilitate an extension?
It seems they have forgotten where their complacency over the petitioned transfer from Pandacan has brought them. Armed with just zealousness for the safety of their families, Pandacan residents won their case all the way up to the Supreme Court. The oil companies are now just counting time.
Collegiate basketball season 2008
The collegiate basketball season for 2008 will officially start mid-June, by which time almost all schools are open for the new academic year. This early, however, the collegiate basketball scene is buzzing with talks about new talents and the changes that are occurring in the competitive strengths of the different teams. The keen interest in the ongoing FilOil Flying V Pre-season attests to this.
Schools sports officials, alumni groups and basketball fanatics are also looking forward to an exciting and eventful season as the teams all over the country are preparing to start the road towards the Philippine Collegiate Championship. Watch this space for more updates on this major collegiate sports event of the year.
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 reydgamboa@yahoo.com.