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Compliance challenges withnew SECA rules
Poul Woodall
Director, Environment
DFDS A/S
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118 days 9 hours 10 minutes
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Compliance challenges withnew SECA rules
Compliance
= conforming to a rule, such as a
specification, policy, standard or law
06/05/20144
Compliance challenges withnew SECA rules
What are they ?
• Financial
• Practical
• Legal
• Technical
• Commercial
• Environmental
DFDS A/S at a glance
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DFDS operates one of Europe's
largest integrated shipping and
logistics networks, offering
comprehensive supply chain
and shipping solutions to our
customers.
Established 1866
Listed on NASDAQ OMX Copenhagen
DFDS Divisions
Revenue in 2013 (mil) € 561
Employees 1000Logistics Offices 26Warehouses (m²) 70,000Trailers 3,100Containers 3,750Swap bodies 850Trucks 150Trailer Loads 350,000Container Loads 75,000Rail movements / year 25,000
Logistics Division
Group revenue (2013) €1,622 millions / 6,000 employees
Shipping Division
Revenue in 2013 (mil) € 1144
Employees 4,700Routes 23Ships 41Terminals 7Warehouses (m²) 70,000Passengers (mil) 5.8Lane meters shipped (mil) 29
The DFDS solution model to comply with the revised SOx limits
• Scrubbers
• MGO
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Compliance challenges withnew SECA rules
LNG
Financial challenges :
• Investment is scrubber technology
• TEN-T funding
• Operation of the scrubber
• Additional cost of MGO compared to HFO
• Convert vessels to run on MGO
• Cash flow/credit facility
• Effect on asset values
• Other things requires funds as well
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Compliance challenges withnew SECA rules
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Scrubber installations on:
Magnolia Seaways
Freesia Seaways
Begonia Seaways
Primula Seaways
Petunia Seaways
Have been co-financed by the European Union
Magnolia Seaways
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Compliance challenges withnew SECA rules
Practical challenges :
• 1% HFO availability to end 2014?
• ”Switch over” around New Year
• Training
• HS HFO availability post 2014
• Seca/non-Seca trading
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Compliance challenges withnew SECA rules
Legal challenges :
• EU directives not harmonized
• Sulphur directive
• Waterframework directive
• River Rhine convention
• National jurisdiction not clear
• Impractical
• Commissioning of scrubbers post 1.1.2015
• Washwater testing procedure
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Compliance challenges withnew SECA rules
Technical challenges :
• MGO temperature
• Fuel testing points
• Commercial life of current installations
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Compliance challenges withnew SECA rules
Commercial challenges :
• Loss of business
• Change in trade flows
• Loss of commercial space
• GT increase
• Environmental discounts in port tariffs
• Will others get away with non-compliance?
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Compliance challenges withnew SECA rules
Environmental challenges :
• CO2 will increase
• PM
• pH of wash water
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118 days 8 hours 50 minutes
