Development of a Financing Model for oily and greasy ship waste

Hans Bergervia donau – Austrian Waterway Company

Budapest, 21.03.2012

Content of the presentation

• Introduction• Summary of the current situation of ship waste management• A Financing Model for oily and greasy ship waste

– Basic principles– Components– The „Rhine System“ – Possibilities for the Danube region– Results of the WANDA project

• Implementation aspects

Introduction

Aim: Development of a „financing model for oily and greasy ship waste“

Requirements according to international and national legislation, policies and strategies (e.g. Waste Framework Directive, DC recommendations)

Socio-economic conditions of the Danube Region Needs of IWT operators Connection with River Information Services (RIS)

Basic idea

Number of services according vessel nationality

26%

30%

29%

8%7%

Rhineregion (incl. Switzerland, France)

Germany

Upper Danube Region

Middle Danube Region (incl. Slovenia)

Lower Danube Region

The Danube is an international waterway! Hence, ship waste disposal services shall be available for all vessels, regardless of their flag to similiar conditions!

Usage of mobile services in Upper Danube Region by vessels of different flags (via donau, 2012)

Summary of current situation of SWMC

CCNR Waste Treaty (CDNI)

Danube Commission Recommendations

Different national systems

ISRBC

MARPOL

1. Different systems used for • Waste disposal• Re-financing of the costs

2. High number of unknown variables (waste potential, costs, multitude of different users &

interests,…)

A Financing Model (FM) has to

1. … cover the costs for waste disposal

2. … be applicable on international level

3. … be compatible with the Rhine system

4. …be simple & cheap to implement

Basic Principles for a Financing Model

Indirect Payment

Waste Prevention

Polluter Pays Principle

Components of the Financing Model

1. Costs• Services of waste management companies: 125 €/m³ (average val.)• Administration costs: 10 %• Costs for monitoring, controlling & enforcement: not available

2. Revenues• Payment of IWT Operators: 8 payment scenarios• Contributions of the participating states: recommended for stepwise

implementation

3. International balance for costs & revenues

CDNI

Provisions for all types of ship waste, contains a FM for oily and greasy ship waste 6 countries involved

Waste disposal is possible in every country for every vessel

Disposal fee is paid in advance when bunkering gas oil = indirect payment

International balance payments are carried out between countries

© Hans van der Werf, CCNR

Payment scenarios for the Danube • Discussion of 8 payment scenarios, three were investigated in more

detail

Levy on gasoil

11 €/1000 l gasoil; + used in the Rhine regionEvasive reactions of vessels possible, hence higher risk for successful implementation; changes in CDNI possible; high administration costs expected;

Levy on port dues

15 €/ port entry ; costs could range from 0 to 5500 €/vessel; no. of port entries not related to waste generation; complex administration, monitoring and controlling, market interference possible;

Vignette system + Simple, low administration costs, support by RIS possible

Vessel registration fee

Vessels could avoid payment by registration outside the Danube region;

Costs & Revenues of a vignette system

Component Unit Amount

Quantity of bilge water m³ 15,000

Price per m³ Euro 125

Total costs for the collection of bilge water Euro 1,875,000

Motorised vessels No. 1400

Average tariff per vignette based on bilge water only

Euro 1,339

Costs for the collection of other oily waste 10% 187,500

Total costs for the collection of all oily waste 2,062,500

Average tariff per vignette including other waste

Euro 1,473

(NEA, 2011)

Gasoil system

• 11 €/ 1000 litres of bunkered gas oil

• Motorized Cargo Vessel 1300 kW + Lighter, Passau-Vidin-Passau:

43 t gasoil = 50.6 m³, 200 engine hours, 250 liters/hour= 0.250 m³/h* 11 € = 2.75 €/h

200 h*2.75 €/h

=> 550 € for one trip

Sources for calculations: Sava Commission, Creating Project mod. - via donau

Break Even Point

0

500

1000

1500

2000

2500

Trip: Passau-Vidin-Passau

Numbers of journeys

€Vignette System

Gasoil Fee

1st journey

Between the second and the third journey, the vignette system becomes cheaper for the vessel than the gas oil system.

2nd journey 3rd journey

Waste Reception Facility 2

National Administration

IWT Company 1

Vessel 3

IWT Company 2IWT Company 3

Vessel 1c Vessel 1 b Vessel 1 aVessel 2aVessels 2b

3 Vignette2

Vignett

e

1Vignett

e

Data about· Users· Type of Waste· Amount of

waste· Place of

delivery

Vignette System: National level

€ for Ship Waste

Collection

Waste Reception Facility 1

€ for Production of Vignettes

Payment Flow

X vignette

Distribution of Vignettes

Data exchange

Reading TerminalVignettes

Reading Terminal

Reading Terminal

Computer Programme

Waste Stream

Edited by Hans Berger, via donau – Austrian Waterway Company, January 2012

Key aspects for implementation

• Support on international level – EU – and national level will be necessary

• Establishment of a common, legally binding treaty for harmonised ship waste management along the Danube

• Practical implementation – pilot tests - & further development of concepts

• Developing of infrastructure for waste disposal• Appointment of organisational and administrative bodies on

international and national level

CO - WANDA

Follow Up Activities

• Submission of CO-WANDA (Nov 2011) to the SEE program

• Danube Commission as observer• Financing Model plays an important part in this

proposal– Pilot Actions for testing the vignette system (AT, SK, HU, HR, RO, BG)– Connection to RIS (HU, RS, RO)– Further conceptual development (including other waste types, a

computer software, international balance, lessons learned and compatibility with the Rhine Region, …)

• Incorporation into an „Int´l Treaty“

Summary

• Financing waste disposal services: crucial for sustainable development

• Danube: a vignette system is recommended (external experts)– implementation will require funding and support of national states &

international funds

• Compatibility to neighboring systems

• A joint approach of Danube Riparian countries for developing a legal framework

• Further development of the FM and accompanying tasks CO-WANDA

Thank you for your attention!

Hans Bergervia donau – Austrian Waterway Company

Budapest, 21.3.2012