Philippines: Government asked to rethink tanker phaseout sked

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30 Dec 2008

A group of domestic tanker operators said they will ask the government to move along with the international schedule for the phaseout of single-hulled tankers in moving petroleum products, and not to implement the move before the set timeframe. Philippine Petroleum Sea Transport Association (Philpesta) chairman Gerardo Santos explained that any move ahead of the proposed schedule will not benefit the industry, particularly now that it is moving towards survival mode, due to the strong backlash of the global financial crisis.
He said if the government added a new policy to the tanker operators, like requiring them to use double-hull vessels in moving gasoline, many of their members may not be able to afford it.
“We should not implement any new ruling ahead of the international schedule,” Santos said.
In April this year, the Maritime Industry Authority (Marina) has implemented a double-hull requirement for tankers in moving black oil, ahead of an international timetable in phasing out single-hulled tankers.
The said new regulation, which covers even barges plying the Pasig River route, has pushed many companies to have their vessels converted to double-hull or buy a new one. Others have even opted to be penalized by the government for P25,000 a day and post a bond of P5 million, rather than invest millions to purchase a new ship.
That leeway, however, will expire this year and there is no assurance if the government will extend it through 2009.
“We cannot do something about [the policy] since it has already been implemented. But we want to prevent such things from happening again in the future,” Santos said.
The Marina is gearing up to implement a double-hull requirement to tanker operators carrying white oil, such as diesel and gasoline, starting January 1, 2011.
Philpesta said they want the government to adopt the international deadline set on 2012 by the International Maritime Organization.
The group claimed that they will have a hard time complying with the requirement if the government pushes through with the 2011 deadline, considering they just recently complied with the double-hull requirement for the transport of black oil, such as crude, only this year.
“We are doing these to prolong our business as we really do not expect anything in the next four years and hopefully government will consider,” Santos said.
The double-hull policy in the domestic trade was introduced after MT Solar I sunk off the coast of Guimaras, spilling more than 220,000 liters of black oil wrecking havoc to the marine environment in 2006, the country’s worst.
This has also pushed petroleum companies to use only double-hull vessels as their insurance coverage is a level above the set international standard.
Earlier, Islas Tankers Shipping Corp., the tanker division of the Magsaysay Transport and Logistics Group, in November delivered the double-hull tanker, MT Panglao Island, to its charterer, Chevron Philippines Inc., at the port of Batangas.

Source: Business mirror