P&O Ferries hits out at new sulphur rules

New European Commission proposals on sulphur emissions threaten the future of the UK ferry industry and jobs in the maritime sector, according to leading operator P&O Ferries.

The stark warning came as the company’s fleet director, John Garner, gave evidence to the House of Commons Transport Select Committee on behalf of shipping, ports and maritime industry body Maritime UK. The Select Committee launched an inquiry into sulphur emissions by ships in September. In his submission Mr Garner, who sits on the board of the Shipping Emissions Abatement and Trading (SEAaT) group, raised concerns about the impact of proposed ultra low sulphur fuel rules for shipping in Emission Control Areas (ECAs). The proposals would mean that from 2015 ships will only be able to burn fuel with a sulphur content of 0.1 per cent or lower in these areas, which include the North Sea and English Channel. The higher cost of ultra low sulphur fuels means an increased burden on the shipping industry of up to £3.6bn if the proposals come into force, Mr Garner warned.  

He said that the proposed sulphur reductions would affect jobs within the maritime and ports sector as companies are forced to increase prices and cut costs elsewhere in response to rising fuel bills. He said: “We are supportive of efforts to reduce the impact of shipping on the environment, but these proposals just haven’t been thought through. Increasing the cost burden on shipping companies threatens jobs and risks a modal shift that would see more trade moving by road as the cost of sea transport rises. This could have a significant effect on the environment, making a mockery of attempts to cut emissions. In its current format the new EC directive also distorts the market giving cargo ship operators in non-ECA waters unfair advantages over the ferry industry by letting them continue to burn high sulphur content fuel, of up to 3.5 per cent, until 2020.”

In a separate submission to the UK government on the issue P&O Ferries called for a phased approach to reducing sulphur emissions, with an accent on developing advanced technologies for new build ships rather than enforcing restrictions on the sulphur content of fuel. It also pressed for the current EC Directive proposals to be deferred until 2020 to allow for a full study of the economic, social and environmental impact to be carried out.

Contacts:
Chris Laming, Brian Rees, Natalie Hardy, Michelle Ulyatt
Tel: +44(0)1304 863833 (24 hours)
E-mail: communications@POferries.com