Impacts of the ballast water management convention on the maritime industry (economic impact)

• Main Author: Tja, Huei Min
• Other Authors: Lum Kit Meng
• Format: Final Year Project
• Language: English
• Published: 2019
• Subjects: DRNTU::Engineering::Maritime studies
• Online Access: http://hdl.handle.net/10356/78359
• Institution: Nanyang Technological University

This paper will present, compile and analyse the possible impacts of the Ballast Water Management (BWM) Convention on the maritime industry. The BWM Convention came into force on 8 September 2017 with a compliance deadline by 8 September 2024. Ballast Water is a routinely taken on ships for stability and thus, ensuring safe operation of the vessel. However, the ballast water can also contain thousands of aquatic organisms and pathogens which are carried across different oceans and released into native marine environments, causing damage to biodiversity. As such, the BWM Convention is introduced to ensure that all aquatic organisms and pathogens are removed or rendered harmless before ballast water is released into new location. Currently, there are two main ballast water management standards for ship owners and operators to choose from: D-1 Open Seas exchange method and D-2, use of a type-approved Ballast Water Treatment System (BWTS) installed onboard. Nonetheless, the maritime industry still has to conform to D-2 by the end of 2024 and these results in several impacts which will be the focus of this report. The main research will be carried out according to the following three guidelines: 1) to identify the potential stakeholders across the maritime industry that could be impacted by the BWM Convention; 2) to identify the economic impacts of BWM Convention on key stakeholders in the maritime industry and 3) to evaluate the extent of the economic impacts on these stakeholders depending on their approach (proactive or reactive) towards the BWM Convention. Together with the literature review and survey and interview results, this report aims to make significant economic assessments of the BWM Convention on the maritime industry. This study will also share some findings from the work packages on the legal and technical impacts of the BWM Convention on the Maritime Industry. The legal impacts include important points such as the inconsistencies in regulation standards, equipment testing and certification protocols as well as the conflicts in establishing Ballast Water Exchange Areas. On the other hand, the work package on technical impacts of the Convention addresses the uprising concern of the industry on the effectiveness level of the BWTS. This can be a significant barrier to successful implementation of the Convention as the ship owners have to be convinced of the installations before they are willing to invest and operate it. Nonetheless, all three work packages will also compile potential recommendations on how should future works be carried out in order to help improve the current shortfalls and negative implications of the Convention.