Importance, Challenges and Risks Alejandro Trillo October 2008

The future is in our hands and our future is in the Ocean Jean Michel Cousteau

Oily Waste Marine Pollutants in Bulk International Regulations Local & National Regulations Sewage Packaged Pollutants GarbageAir Pollutants Ship Operation Regulatory Compliance- Not an easy One…. FINANCIAL CRISIS

Oil & Oily Mixture - Challenges Oil from accidents greatly reduced Legislation and concerns turning to operational discharges Shipping Sources of Oil Operational Discharges 45% (457,000 tonnes / yr) Shipping accidents 36% GESAMP (IMO/FAO/UNESCO/UNIDO/WMO/IAEA(UN/UNEP Joint Group of Experts On the Scientific Aspects of Marine Environmental Protection) Estimates of Oil entering the marine environment from sea-based activities.

Oil & Oily Mixture - Risks MARPOL ANNEX I Regional & National Legislation Personnel´s attitude / Magic Pipe Fines: Overseas Shipholding Group Inc. (OSG) Sentenced 21 March 2007 (Federal Court) $27 Million fine 3 year probation Stringent environmental compliance program Court-appointed monitor and outside independent auditing of OSG Ships trading worldwide Largest ever fine involving deliberate vessel pollution

WHY COMPLY WITH ENVIRONMENTAL REGULATIONS? International Regulations (MARPOL 73/78) European Union Directives (2000 / 59) and others 15 US Federal Pollution Laws – ranging from OPA ´90 to Migratory Bird Act The US only prosecuted Between 1995 and criminal cases involving intentional discharge of oil, 21 since US $130 million in fines levied since 1998

Recent Prosecutions USA December 2005 – Crew of MSC Elena used magic pipe to bypass OWS Owners fined US$10.5 million Chief Engineer sentenced to 2 months in prison and fines $3000 USA April Magellan Phoenix- owners fined US $350,000 on one charge of failing to maintain accurate records Chief ENG sentenced to one year in prison

Recent Prosecutions France April 2006 – French court imposed 800,000 Euros fine on the captain and owners of Maersk Barcelona as a result of oil slick off French Coast Canada May 2007 –Nobel Fortuna fined CAN $45,000 for illegal discharge of pollutant and failure to report incident Amount of pollutant discharged – 5.5 liters (over CAN $8,000/liter)

Garbage Pollution Australia May 2005 – Owners of chemical tanker Bow De Jin fined AUS$15,000 and master fined AUS $7,500 for dumping one large plastic bag of garbage. UK November 2005 – Owners of fishing vessel Lynden II fined 2,000 british pounds for dumping garbage into the North Sea.

Reasons for non-compliance Falsifying of records Linked to maintenance problems and equipment failures Incorrect, mistaken entries, non valid reception certificates from cheap companies that won´t be trustworthy for inspectors. Perception of saving money for the owners can-do attitude of ship´s staff Misunderstanding of owners requirements Hiring Cheap services from unauthorized companies that in the long-run can be far more expensive and annoying as we have seen. Waste reception facilities inadequate

Waste Reception IMO recognized reception facilities are crucial for effective MARPOL implementation MEPC strongly encouraged Member States to fulfil their treaty obligations on providing adequate facilities Policy of zero tolerance of illegal discharges from ships could only be enforced when there are adequate reception facilities Port Reception Facility Database (PRFD) part of IMO Global Integrated Shipping Information System System (GISIS) System for reporting inadequate facilities in place

Port Reception Database

6 Countries out of 27 in Latina America account with Port Reception Facilities for ANNEX I. Port Reception Facilities in Latin America

For annex 2 only 3 countries account with port reception facilities!

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Solutions Ship-Shore interface Strong relationship Regular meeting Promote environmental values to ship and shore staff Reward good practices Incentive scheme to encourage crew to report to management and help prevent pollution accidents Use of adequate port reception facilities and authorized companies that issue valid receipts in order tu support truthful logs Insist on truthful logs Inspectors extremely knowledgeable in detecting false entries and non valid discharge receipts Prosecutions built on lying to federal officials, not for actual pollution

Solutions Avoid unnecesary suspicion Whistleblowers wake up call to company management Reward for poorly paid, disgruntled employees RickyLalu Nick Vinocur Sketch For the past five months, this Filipino sailor has been lying low in a local motel room, waiting to make his appearance as a whistle- blower in federal deep-sea pollution trial. He spoke out for the first time last week, testifying that his employers ordered him to dump waste oil into international waters. dump waste oil

What do Ship operators want? Demonstrate an environmentally responsible profile Reduce risk of unintentional violation of rules Flexible solutions Environmental awareness of the crew related to waste Training / company philosophy The commercial value of being in the forefront Potential reduced harbour fee for being green ISO certification Goodwill in the market and towards authorities Less hassle Responsible care handling of waste / visible care program One contact point for waste handling

What do Ship operators want? One contact point for waste handling Operational efficiency for the ship Legal aspect – licenses etc. Efficient handling in the ports Make common procedures between vessels and ports Standarized landing manifest

Cabin Sinks & Showers Laundry Galley A / C Condensate Salon Cabin Sinks & Showers Laundry Galley A / C Condensate Salon Toilets Medical Facility Water Toilets Medical Facility Water All liquids collected in open spaces in the bottom of the ship Used Lube Oil Fuel SLUDGE Used Lube Oil Fuel SLUDGE Paper & Plastic Food Waste Cans - Glass Chemicals Spent Fluorescents Batteries Used Paints / Thinners Dry Cleaning Waste Chemicals Spent Fluorescents Batteries Used Paints / Thinners Dry Cleaning Waste Photo Waste SHIP WASTE STREAM - TREATMENT PROCEDURES ON SHORE TREATMENT PROCEDURES WATER TREATMENT PLANTS AUTHORIZED BY THE ENVIRONMENTAL MINISTRY AND ACCORDING TO THE NATIONAL WATER ACT REGULATIONS. RECYCLE SLUDGE IN ORDER TO PROCESS IT TO ALTERNATE FUEL SOURCE. PROCESS COMPLIES WITH THE ENVIRONMENTAL MINISTRY RECYCLE REGULATIONS. RECYCLING ACCORDING TO ENVIRONMENTAL MINISTRY DIRECTIVES: BATTERIES, TIN & ALUMINUM CANS, PAPPER, PLASTIC AND GLASS ARE PROCESSED FOR RECYCLING WITH COMPANIES MEMBER OF THE NATIONAL INSTITUTE OF RECYCLING. DELIVERED TO HAZARDOUS WASTE RECEPTION FACILITY FOR DESTRUCTION. COMPLIES WITH ENVIRONMENTAL MINISTRY AND INTERNATIONAL REGULATIONS.

What creates value? One contact point for waste handling Time Saving Standarization on waste handling on all vessels Simplicity Hassle-Free 24/7 collection of waste at vessel Standarization on documentation and best practice One contact & invoice for the client in many ports Standarized forms & documentation gives standarized answers Less administration of visitors in the port (ISPS) Less congestion on the ports side

That is why TRAER is launching Adequate Port Reception Facilities in Latin American Ports

THANK YOU For your attention! Alejandro Trillo