Canadian Ports First to Offer Financial Incentives using A-G Ratings

Corporate Social Responsibility, Environment, Ports & Terminals — By on January 27, 2014 at 8:03 PM

Northland to Ridley Panorama 2 (1)SHIP OWNERS BENEFIT FROM REDUCED HARBOUR DUES

PRINCE RUPERT (January 27, 2013) Canada’s two largest west coast ports are now both offering financial incentives to ship owners based on the ‘A to G’ Greenhouse Gas Emissions (GHG) rating, which benchmarks the energy efficiency of the international shipping fleet.

Port Metro Vancouver’s ‘Eco-Action’ Program and Prince Rupert Port Authority (PRPA)’s ‘Green Wave’ Program will reward the most efficient vessels that enter the ports. PRPA’s Green Wave Program has already received 19 vessel entries during its first two weeks, with 11 of these vessels using the A-G rating.

At both ports, efficient vessels meeting specific GHG emission levels will receive a discount on port dues, rewarding vessel owners that invest in technology and measures to improve their fleet’s efficiency. The rating system, established by maritime risk experts RightShip and global not-for-profit the Carbon War Room, will be used alongside the already-in-use Environmental Ship Index (ESI), which evaluates the amount of Sulphur Oxides (SOx) and Nitrogen Oxides (NOx) emitted.

Port Metro Vancouver’s program has included the A to G rating system for just over a year, while PRPA’s expanded program came into effect on 1 January, 2014. Both ports hope to encourage collaboration from other global port authorities to endorse the scheme further.

Port Metro Vancouver is Canada’s largest and busiest port. Duncan Wilson, vice-president of corporate social responsibility at Port Metro Vancouver, said his organization’s “EcoAction” initiative, which takes cleaner fuels, improved engine technology and other factors into account offered discounts amounting to $1.1-million last year, representing roughly 10 per cent of revenue from deep-sea harbour dues.

Michael Gurney, manager of corporate communications at the Prince Rupert Port Authority, said his group’s “Green Wave” program is forecast to provide $100,000 in discounts in 2014.

Don Krusel, President and CEO of the Prince Rupert Port Authority, said:
“Through an environmental incentive program with qualification standards consistent across global shipping, we are accelerating the industry’s movement toward greater efficiency and sustainability. As more members of the worldwide port community launch similar initiatives, common systems of measurement and reward are vital to wide adoption and success.”

Currently 16 charterers, which represent 21% of the non-container charter market, 1.6 billion tonnes of commodities transported annually, and 20,000 vessel movements per annum use the A to G rating as part of their vessel selection process.

The A to G rating contains information on over 70,000 existing vessels and provides a simple and easy-to-use tool for ports to provide incentives without additional paperwork. For ports interested in adopting the A to G rating, RightShip can provide a retrospective analysis of a port’s distribution of A- to G-rated vessels, as well as the cost implications of shifting to the rating scheme, using historical arrivals data.

RightShip Chief Executive, Warwick Norman, said:
“It’s survival of the greenest and owners that invest in the technology to reduce emissions are being rewarded by charterers using their vessels and ports providing discounted harbor dues. If this leads to a two-tier market then less efficient vessels will be driven out of the market.”

Jose Maria Figueres, President of Carbon War Room, said:
“It is great to see the ports joining the pioneering charterers who are using the A to G rating to enhance their commercial operations. As important demand-side stakeholders, ports have a key role to play in encouraging greater use of efficiency rating systems and in rewarding shipowners who invest to make their fleets more efficient.”

Both Port Metro Vancouver and Prince Rupert Port Authority are members of Green Marine, a North-American industry initiative that encourages companies to achieve environmental performance that exceeds regulatory compliance. Offering incentive schemes to cleaner vessels is one way a port can achieve a higher sustainability rating within Green Marine’s certification process.

Green Marine executive, David Bolduc, said:
“It is great to see Port Metro Vancouver and Prince Rupert Port leading the field in raising the bar to advance environmental protection at seaports in the Americas.”

For more information about Port Metro Vancouver’s EcoAction Program, please contact Marko Dekovic at Marko.Dekovic@portmetrovancouver.com / 1-604-354-0945.

For more information about joining Prince Rupert Port Authority’s Green Wave Program, please contact Michael Gurney at mgurney@rupertport.com / 1-250-627-2509.

For more information about using the A to G rating to offer incentives, please contact the Carbon War Room at shipping@carbonwarroom.com.

About Prince Rupert Port Authority
With five terminals, including the fastest-growing container terminal in North America, and industrial land primed for development at the terminus of CN Rail’s Northern Mainline, the Port of Prince Rupert is growing Canada’s trade with Asia’s growing economies safely, responsibly and sustainably. PRPA’s Green Wave environmental incentive program for vessels considers environmental certification, fuel quality, technological implementation and management practices, now including the A to G index. Visiting ships can apply to qualify for one of three tier levels based on environmental performance, which enable that vessel to receive discounted harbour rates of up to 50% less than the regular rate.

About Port Metro Vancouver
On January 1, 2008, after nearly one hundred and fifty years of existing separately, the Fraser River Port Authority, North Fraser Port Authority and Vancouver Port Authority combined to become the Vancouver Fraser Port Authority (VFPA), now known as Port Metro Vancouver. As the fourth largest tonnage port in North America, PMV offers 28 major marine cargo terminals and three Class 1 railroads, providing a full range of facilities and services to the international shipping community.

About the A – G Greenhouse Gas Emissions Rating
Launched by RightShip and the Carbon War Room, the A – G Greenhouse Gas Emissions Rating enables charterers, owners and ports to instantly see a ship’s theoretical greenhouse gas emissions and relative energy efficiency compared to ships of similar size and type. Vessels are rated from A (most efficient) to G (least efficient. Some of the data, including a vessel’s rating, is available free-of-charge through www.shippingefficiency.org, a joint initiative between RightShip and the Carbon War Room.

About Rightship
RightShip provides the world’s most comprehensive online marine and environmental risk management system, enabling customers to identify in advance the 20 per cent of substandard operators who account for the majority of total casualties. RightShip supports more than 2500 users in over 215 organisations worldwide. Its offices are in London, Houston and Melbourne.

RightShip’s comprehensive online ship vetting system (SVISTM) analyses over 50 risk factors, using up-to-the-minute data about 70,000 ships and thousands of maritime companies. SVISTM screens vessels according to customised criteria, gives fast, reliable assessments, tracks vessel or fleet performance and can be accessed 24/7 through www.rightship.com. RightShip’s SVISTM also provides an instant, reliable online environmental rating for nominated vessels and RightShip is an incentive provider to the ESI. RightShip’s vetting support also includes vessel inspections, expert advice and secure hosting of clients’ vetting systems.

About The Carbon War Room
The Carbon War Room is a global entrepreneur initiative set up by Sir Richard Branson that accelerates the adoption of business solutions that reduce carbon emissions at gigaton scale and advance the low-carbon economy. The organization focuses on breaking down market barriers for capital to flow to entrepreneurial solutions, and takes a global sector-based approach. Almost all the climate change challenge can be addressed today—and profitably—under existing policy and technology conditions.

In 2010, Carbon War Room, in partnership with RightShip, introduced the world’s first eco-labelling for the shipping industry and provided a global online platform (www.shippingefficiency.org) giving stakeholders the information they need to make informed decisions. The War Room’s current Operations include Maritime Shipping Efficiency, Green Capital for Energy Efficiency in the Built Environment, Renewable Jet Fuels, Smart Island Economies, and Trucking Efficiency. For more information, please visit www.carbonwarroom.com.
About Green Marine
Green Marine is a voluntary marine industry initiative with the goal of achieving levels of environmental performance that exceed regulatory requirements in areas such as air/land/water emissions. There are currently over 70 ship owners, port authorities, terminals and shipyards from coast to coast, in Canada and the United States, participating in the program. Green Marine certification process is rigorous and transparent: results are independently verified every two years and each company’s individual results are published. Green Marine relevance and credibility is proven through its growing number of supporters: more than 40 environmental groups and government departments/agencies have endorsed and help shape the environmental program. Green Marine is also drawing international recognition and received the Green Shipping initiative of the year at the Sustainable Shipping Awards 2011, in London, UK.

“Jo”

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