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Cruise lines fear effect of green rules
July 22, 2010

Cruise-industry watchers are waiting to see if tougher North American emission rules will lead companies to reduce the number of vessels visiting B.C. ports due to rising costs.

"I'm very concerned about the impact of this," said John Binkley, president of the Alaska Cruise Association, which represents nine cruise lines. He said cruise lines are working on 2012 plans now, the same year the tighter fuel rules come into effect.

Low-sulphur fuel will add about $100 million in costs for Alaskan cruises, Binkley said, adding passengers will likely feel the pinch in increased ticket prices.

"It's going to mean an additional cost burden for all of the visitors coming to Alaska, transiting through Canada, or leaving from Canada," he said. The cost to meet the upcoming rules will be about $100 per person for a seven-day cruise, association information states.

A $50 head tax charged by Alaska has already been blamed on a 142,000 decrease in passengers this year, Binkley said. Donna Spalding, director of administration for the North West and Canada Cruise Association, did not know if the new standards, which she calls very aggressive, will cut ship visits.

This is a "critical" issue for industry, from the point of view of whether the required fuel will be available and at what cost, Spalding said from Vancouver.

Canada and the U.S. applied to the International Maritime Organization for an Emissions Control Area. The approval covers waters within a 200-mile limit offshore and will come into effect in the summer of 2012.

The ECA sets out allowable sulphur contents in maritime fuel. Under the new guidelines, the sulphur limit will be one per cent in 2012 and 0.1 per cent in 2015, compared with the current global limit of 4.5 per cent, the association said. These rules apply not only to cruise ships, but deep sea vessels within the 200-mile limit as well.

No one is against better air quality and the association is working with Transport Canada to seek ways to meet the objectives, Spalding said. This might include using scrubber technologies and shore-power.

Today, ships in the North West Cruise Association aim at as close to 1.5 per cent as possible, averaging between 1.5 per cent and 1.8 per cent, Spalding said. Lower sulphur fuel is not always available, and is now averaging between 1.2 and two per cent, she said.

In Victoria, the James Bay Neighbourhood Association has long been calling for cruise ships to move to lower-sulphur fuels. An air-quality study in James Bay in 2009 found temporary spikes in sulphur dioxide levels when cruise ships arrived, left or docked at Ogden Point.

A decrease in cruise-ship visits would affect Victoria's $1-billion annual tourism sector. Direct spending last year by cruise ships companies, passengers and crew members was estimated $70 million by the Greater Victoria Harbour Authority.

This year, 228 cruise ship visits are expected at Ogden Point, and next year's numbers are anticipated to be stable, said Sonterra Ross, harbour authority acting CEO. She does not expect the new rules will prompt a significant decline in visits.

Victoria is well-positioned for the Alaska market and Alaska is a large draw for the U.S. tourist, she said.

The harbour authority believes the new rules are an important step in addressing ship emissions, Ross said.

Source :- http://www.timescolonist.com