[130313.EN.SEA] UK Study: Meeting EU Eco-targets Risks 2,000 Maritime Jobs, Adds CO2

ACHIEVING the EU's low-sulphur fuel targets threatens 2,000 British maritime jobs and risks more carbon emissions, as well as endangering "many more" industrial jobs, according to a new report commissioned by the UK Chamber Shipping.

The cost of the meeting the 2015 low-sulphur emissions target is huge, said the report from the UK environmental consultancy AMEC.

"This will threaten the viability of some routes, forcing them to reduce or even shut down altogether. This would threaten more than 2,000 jobs - related to those routes - in the UK and Europe in maritime engineering, navigation, catering, customer services, cleaning and administration," the report said.

AMEC said meeting mandated sulphur emission targets by 2015 will result in more trucking, putting maritime jobs at risk and result in more highway carbon emissions and road congestion.

The report, commissioned for North Sea and Western Channel ship operators, said 2015 sulphur reduction targets will also result in an increase of 2.8p (US$0.41) per litre for road diesel and increases of up to 29 per cent passenger and container prices.

"To cope with the major [cost] increase, operators of sea routes around the UK would need to increase ticket prices - by up to 20 per cent for passengers and up to 29 per cent for freight," said the report.

"If vital trade routes are closed, the impact would be felt throughout the manufacturing sectors as the cost of moving goods will increase - making the UK a less competitive and more expensive place to base internationally owned businesses," the report said.

Low sulphur fuel costs US$300 per tonne more than standard bunker. In Hong Kong the price difference was set at $400 more. Ships could fit sulphur "scrubbers", but the report says the technology is not ready yet to meet standards required at an affordable price.

Liquefied natural gas (LNG) is another option, but only feasible for new ships and not the older ones that dominate the existing tonnage plying UK waters.

Source : HKSG, 13.03.13.