Ports to offer distillate incentives

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

20 Mar 2008

The Port of Los Angeles and the Port of Long Beach may offer incentives to shipowners to burn distillate fuel in port areas and offshore, the two authorities announced."This proposal would immediately improve the air quality of Southern California," said Long Beach Mayor Bob Foster. The two ports will vote on the proposal on March 28, which would see the ports "pay the difference between the price of bunker fuel and the more costly low-sulfur distillate fuel for vessel operators who make the fuel switch within at least 20 miles and out as far as 40 miles from the ports" for one year.To qualify, ships would also need to use distillate fuel in their auxiliary engines - currently a requirement being enforced by the California Air Resources Board (ARB) - and comply with vessel speed restrictions in the ports."By switching to clean-burning fuel we will cut air pollution and help Southern Californians breathe easier," said Los Angeles Mayor Antonio Villaraigosa.There would be substantial costs associated with the scheme.  Today, IFO380 was around $545 per metric tonne (pmt) in Los Angeles while distillate grades were $975 pmt, according to Bunkerworld price information - a $430 difference.Figures released by the port authorities today said that the cost could be as much as $9.9 million annually for Long Beach and $8.6 million for Los Angeles.Despite the cost, the ports were looking at accelerating emissions reductions already underway as part of the joint San Pedro Bay Ports Clean Air Action Plan."We are moving full steam ahead in making our ports the cleanest and greenest in the world," Mayor Villaraigosa said.