Fujairah joins other ports, tightens exhaust rules ahead of 2020 regulations

Fujairah’s harbor master said the port “has decided to ban the use of open-loop scrubbers in its waters ... (and) ships will have to use compliant fuel once the IMO 2020 sulfur cap comes into force.” (File/AFP)
Updated 23 January 2019

Fujairah joins other ports, tightens exhaust rules ahead of 2020 regulations

  • Under International Maritime Organization (IMO) rules that come into effect from 2020, ships will have to reduce the sulfur content in their fuel to less than 0.5 percent
  • Singapore, China and Fujairah marine sales volumes represent a quarter of global ship refueling, also known as bunkering

SINGAPORE: Fujairah in the UAE has become the latest major port to ban a type of fuel exhaust cleaning system to comply with a coming tightening in rules regarding global sulfur emissions, mirroring similar moves in Singapore and China.
Under International Maritime Organization (IMO) rules that come into effect from 2020, ships will have to reduce the sulfur content in their fuel to less than 0.5 percent, compared with 3.5 percent now, forcing huge changes upon global shippers and also oil refiners.
Fujairah’s harbor master said in a faxed document seen by Reuters that the port “has decided to ban the use of open-loop scrubbers in its waters ... (and) ships will have to use compliant fuel once the IMO 2020 sulfur cap comes into force.”
This follows top marine fueling port of Singapore announcing a similar move in November, while China banned the use of open-loop scrubbers from Jan. 1, 2019.
Singapore, China and Fujairah marine sales volumes represent a quarter of global ship refueling, also known as bunkering.
Impact for shippers
To comply with IMO 2020 rules, shippers can switch to burning cleaner but more expensive oil, invest in exhaust cleaning systems known as scrubbers that may allow them to still use cheaper high-sulfur fuels, or redesign vessels to run on alternatives like liquefied natural gas (LNG).
Scrubbers use water to clean up fuel emissions, preventing them from being released into the atmosphere.
Open-loop scrubbers are the cheapest option, but they have come under criticism as they wash heavy metals and sulfur from the waste water into seas instead of storing it for a controlled discharge in ports, as closed-loop scrubbers do.
Of the more than 2,000 ships that have so far opted to invest in scrubbers, around three-quarters have installed the cheaper, open-loop type, shipping sources estimated.
Closed-loop scrubbers, which store wash water for later discharge, are still accepted in most ports.
Despite the spreading bans of open-loop scrubbers, Douglas Raitt of ship classifier Lloyd’s Register said vessels can still benefit from such systems as they can pump out the waste water in open seas, outside a port’s jurisdiction.
“The benefits of open-loop scrubbers are largely realized in open water during transit from one port to the next,” he said.
Raitt said shippers, however, should consider alternative measures to prepare for IMO 2020, considering that when the new rules come into force refueling infrastructure will be mostly geared toward compliant low sulfur fuel oil (LSFO) rather than high sulfur fuel oil (HSFO).
“Prevailing wisdom would be for operators opting for scrubbers to have a meaningful dialogue with their supplier base to secure HSFO post-2020 in ports of call,” Raitt said.


Egypt raises Sinai investment by 75% in 2019-20

Updated 22 August 2019

Egypt raises Sinai investment by 75% in 2019-20

  • North Sinai will receive 2.85 billion pounds of the investments, while South Sinai will take 2.38 billion pounds, Planning Minister Hala Al-Saeed said
  • An aide to President Abdel Fattah El-Sisi said last year that the Sinai development plan is expected to cost 275 billion Egyptian pounds and be completed by 2022

CAIRO: Egypt said on Thursday it would invest 5.23 billion Egyptian pounds ($315 million) in the Sinai Peninsula in fiscal 2019-20, a 75% rise on the year, in a venture officials say is intended to stabilize a region hit by violence from armed groups.
The Planning Ministry, which directed 2.986 billion pounds in investments to Sinai in the 2018-19 fiscal year, said in response to a Reuters question that the 2019-20 investments would be “general investments directed to all sectors.”
Egypt has been fighting an insurgency led by Daesh and concentrated in the peninsula’s north since the military overthrew President Mohamed Mursi of the Muslim Brotherhood in mid-2013 after mass protests against his rule.
The government hopes investing in the region will help curb extremism and bring stability by reducing higher-than-average unemployment.
North Sinai will receive 2.85 billion pounds of the investments, while South Sinai will take 2.38 billion pounds, Planning Minister Hala Al-Saeed said in a statement.
“The investments in North Sinai are in education, water, agriculture, irrigation, transport, storage, real estate activities and construction projects,” Saeed said.
South Sinai investments will be “in the agriculture, irrigation, transport, education and other services sectors,” she said.
An aide to President Abdel Fattah El-Sisi said last year that the Sinai development plan is expected to cost 275 billion Egyptian pounds and be completed by 2022, calling it “a project for national security.”