Corporate Risk Management Bridging the Environment and the Bottom Line

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• BRIDGE VIEW
• Operational realities
• Vasant Nair, General Manager, Eagle Ship
  Management

Corporate Risk ManagementBridging the
Environment and the Bottom Line
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Environmental Protection

• AIR POLLUTION CO2 EMISSIONS
• BALLAST WATER MANAGEMENT 2012
• OIL POLLUTION ONGOING ISSUES
• WASTE DISPOSAL HOLD CLEANING RESIDUES AND
  MARPOL CHANGES
• MARPOL/SECA/CARB/NEW YORK HARBOR WHOS IN
  CHARGE HERE?

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AIR POLLUTION CO2 Emissions

• EXTERNAL FACTORS
• WORLDWIDE DECLINE IN BUNKER QUALITY
• LIMITED STORAGE AND SEGREGATION OPTIONS ON BOARD
• DIFFERENT RULES FOR DIFFERENT AREAS

• OPTIONS
• Increased spending on analysis and testing of
  fuels
• Slow streaming to reduce consumption the longer
  voyage with less consumption?
• Increased voyage planning for optimal tank wise
  storage

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Ballast Water Management - 2012

• USA 33 CFR 151 The draft Ballast Water
  Discharge Standard (BWDS) rulemaking package is
  currently in review.   The Coast Guard has
  entered the final rule stage, and is pending
  final approval by the White Houses Office of
  Management and Budget. Also, EPA expects to
  release the VGP for public comment in November
  2011.

• Worldwide Implementation of MARPOL 73/78

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Ballast Water Treatment Systems

• DEOXYGENATION AND CAVITATION
• ULTRAVIOLET FILTRATION
• OXIDATION WITH AND W/O FILTRATION
• ELECTRO-CHLORINATION WITH AND W/O FILTRATION
• OZONE OTHER ACTIVE SUBSTANCES WITH AND W/O
  FILTRATION
• 17 BWTS technologies have received Type Approval-
  Are any of these the solution?

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BWTS PROBLEMS AND CONSIDERATIONS

• COST
• RATED TREATMENT CAPACITY M3/HR
• EFFECTIVENESS OVER TIME
• MAINTENANCE
• RETROFITTING
• SALINITY

• POWER REQUIREMENTS
• FUEL CONSUMPTION
• UNIFIED WORLDWIDE STANDARDS?
• TECHNICAL SUPPORT
• PSC INSPECTION CRITERIA

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Marpol 73/78 is the International Convention for
the Prevention of Pollution From Ships, 1973 as
modified by the Protocol of 1978.

• All ships flagged under countries that are
  signatories to MARPOL are subject to its
  requirements, regardless of where they sail and
  member nations are responsible for vessels
  registered under their respective nationalities

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MARPOL ANNEX I EXPERIENCE TO DATE....

• Signs of tampering with pipelines e.g. Fresh
  paint, signs of opening of nut/bolts of flanges.
• Inconsistencies in ORB entries and Crew
  statements.
• Suspicious temporary arrangements of transfers.
• Signs of oil in OWS Overboard line (internally).
• Signs of tampering with OCM including flushing
  connections ,wires etc.
• Bilge condition poor and Oily.
• Malfunctioning equipment/controls.

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Common Issues

• OWS malfunction, full with oil/sludge when
  opened,
• filters torn, no spare filters very common
  finding as per USCG inspectors.
• 15 ppm monitor alarm with automatic
  stopping/3 way valve inoperative, no calibration
  record of monitor.
• Standard Discharge connection blind flange
  bolts frozen
• Bilges filled with oil, Portable pumps, hoses
  and cleaning products in Engine room - raises
  suspicion of wrong doing.
• OWS overboard valve not locked in port .
• Overboard discharge piping/stub-piece found
  internally coated with Oil.

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COMMON ISSUES

• Changes to sludge/bilge lines/OWS from original
  approved drawing, presence of magic
  pipe/illegal pipe
• Evidence of loose bolts, blanked flanges, dead
  end valves on OWS and its piping OR chipped
  paint, oily hand prints against hull or
  piping raises suspicion of wrong doing.
• Removal of overboard pipe/valve for maintenance
  purposes OR for inspection by PSC/external
  authority, --Always record the same in Engine Log
  book .
• Entries in ORB Falsification, errors are most
  
• common violations invites legal
  action/prosecution.

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C/V RENA Astrolabe Reef Tauranga NZ 05 2011

• Officers in Rena grounding face further charges
• Further charges have been laid by Maritime New
  Zealand (MNZ) against the Master and Second
  Officer of the of the Costamare-owned 3,032 TEU
  containership Rena, following the ship's
  grounding on Astrolabe Reef off Tauranga on
  October 5.Both officers now face one charge
  under section 338 (1B) and (15B) of the Resource
  Management Act 1991 (RMA) relating to the
  "discharge of harmful substances from ships or
  offshore installations."The RMA charge carries
  a maximum penalty of a fine of NZ 300,000, or
  two years' imprisonment, and 10,000 for every
  day the offending continues.The Master and
  Second Officer (Navigation) had earlier been
  charged by Maritime New Zealand (MNZ) under
  section 65 of the Maritime Transport Act 1994
  (MTA), "for operating a vessel in a manner
  causing unnecessary danger or risk."They have
  been remanded on bail without plea to reappear in
  the Tauranga District Court today (Wednesday,
  November 2) on that charge and will face the RMA
  charge at the same appearance. Their names and
  identities are suppressed.The MTA charge
  carries a maximum penalty of  NZ10,000 or a
  maximum term of imprisonment of 12 months.MNZ
  says it will make no further comment while the
  matter is before the courts.November 2, 2011

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CONCLUSIONS

• THE MARITIME INDUSTRY IS GEARING UP FOR THE
  MANY NEW REGULATIONS THAT WILL COME INTO FORCE
  SOON
• INDUSTRY HAS GENERALLY BEEN VERY RECEPTIVE TO
  THESE REGULATIONS
• CONCERNS REMAIN REGARDING COSTS, PRACTICALITY OF
  APPLICATION, TRAINING OF SEAFARERS, ETC
• BIGGEST CONCERN IS IN EFFECTIVE ENFORCEMENT AND
  THE NEED FOR A LEVEL PLAYING FIELD
• ENVIRONMENTAL BENEFITS OF THESE NEW MEASURES WILL
  PROBABLY NOT BE SEEN IMMEDIATELY BUT IF PROPERLY
  IMPLEMENTD, THE BENEFITS WILL BE THERE!