1. Leading the way; making a difference Ballast Water Management Current situation and challenges Oslo, September 25 th 2012 Erik Ranheim Senior Manager Research & Projects INTERTANKO

2. Leading the way; making a difference Adopted internationally in 2004 All ships =>400 GT will need to undergo an initial survey and be issued an International Ballast Water Management Certificate, valid 5 years Entry into force requires ratification by 30 countries - 35% world’s GT status 36 countries - 29% world’s GT ratified The US Coast Guard's final rule, published 23-03-2012, effective 21-06-2012 – Standard same as IMO) with review in 4 years; – Compliance schedule similar to IMO – Accepts of “alternative” BWMS for 5 years IMO Ballast Water Management Convention

3. Leading the way; making a difference BWM Plan and Record Book BWM System performance standard Compliance schedule to install BWMS Survey and certification requirements Port State Control procedures US allows states to impose additional requirements EPA regulates vessel discharges with the Vessel General Permit (VGP to be renewed within 5 years ). Regulatory requirements

4. Leading the way; making a difference Regulatory schedule - IMO Enforcement 12 months after ratification i.e. - earliest October 2012 if ratified now - Installation at first Intermediate or Periodical Survey Ballast capacity Year of ship construction Before 20092009-20112012+ > 5,000 m3Ballast water exchange or treatment until 2016 Ballast water treatment only from 2016 Ballast water treatment only Before 2009Constructed 2009 + 1,500 – 5,000 m3Ballast water exchange or treatment until 2014. Ballast water treatment only from 2014 Ballast water treatment only <,1500 m3Ballast water exchange or treatment until 2016. Ballast water treatment only from 2016 Ballast water treatment only

5. Leading the way; making a difference Regulatory schedule - USCG Implementation Schedule for Approved Ballast Water Management Methods Vessel’s ballast water capacity (in cubic meters) Date constructed Vessel’s compliance date New vesselsAllOn or after Dec. 1, 2013 On Delivery Existing vessels Less than 1,500m 3 Before Dec. 1, 2013 First scheduled drydocking after Jan. 1, 2016 1,500 – 5,000 m 3 Before Dec. 1, 2013 First scheduled drydocking after Jan. 1, 2014 Greater than 5,000m 3 Before Dec. 1, 2013 First scheduled dry-docking after Jan. 1, 2016

6. Leading the way; making a difference Possible BWM standard that is 100x and 1000x greater than IMO Considerable lobbying by industry coalition EPA Science Advisory Board report – standard not possible with current BWM technology Reason prevails, for the time being It all depends on California as NY clearly follow California’s lead. Unilateral Regulations New York, California?

7. Leading the way; making a difference Different technology/solution Solid-liquid separation/Filtration+ Hydrocyclone Filtration Coagulation Chemical disinfection and dechlorination Ozone Clorine El/EC Chem/Biocidal Res Peracetic acid Physical disinfection UV Deoxygenation Heat agitation Cavitation Ultra Sonic

8. Leading the way; making a difference June 2012 25 BWMS approved (2 withdrawn) Owner not able to make decision based on type approval Several type approval certificates have been provided based on theoretical extrapolations as opposed to actual physical tests Problems experienced in brackish or fresh water (electro- lysis/chlorination) or high-sediment-load waters (UV systems and sediment rich, muddy waters (filtration) BWMS not always fit for purpose Corrosion, coating Robustness Filters Revision of Guidelines for BWMS approval needed

9. Leading the way; making a difference Insufficient facilities to produce and install BWMS BWM Convention dates progressively surpassed, the number of ships that must have BWMS 12 ms after ratification increases Yards, BWMS manufacturers and owners under increasing pressure to install systems within the time frame Pressure to change schedules BWM Convention cannot legally be amended until convention enters into force Too many ships need to be surveyed/certified within a short time period- phase in needed Standard operating procedure for sampling and analysis of ballast water by Port State Control needed - key impediment to further ratification The Challenges and Uncertainty

10. Leading the way; making a difference Number of ships 200920102011201220132014201520162017201820192020 Newly constructed Vessels (less than 5,000 cubic metres) 1,740 Newly constructed Vessels (greater than 5,000 cubic metres) 0001,690 Existing Vessels (between 1,500 and 5,000 cubic metres) 0000002,500 000 Existing Vessels (less than 1,500 or greater than 5,000 cubic metres) 000000008,800 0 Vessels constructed from 2009 to 2011 (greater than 5,000 cubic metres) 000000001,690 0 TOTAL1,740 3,430 5,930 16,42013,920 3,430 MEPC 61/2/17 by Japan Current Estimated Installation Schedule Dates

11. Leading the way; making a difference INTERTANKO Guidance on the Selection and Installation of Ballast Water Management Systems for Tankers Physical Installation Pumping Control – system approval and certification Treatment type Operating practicalities Released January 2012 The Challenges and Uncertainty

12. Leading the way; making a difference Finding, installing and operating systems on tankers? The Challenges and Uncertainty

13. Leading the way; making a difference BWM Summary 1. 1.Complexity Many different systems, more on the way Often complicated installations, in particular on existing ships Safety 2. 2.Uncertainty Ratification Will the BWMS work on your ship where you trade? Certification, does the BWMS work as it was approved to work? Will the BWMS meet the discharge standards? Will it pass PSC? Uncertainty reduced after MEPC 64 primo Oct-12 3. 3.Economy Installation and operation