Netherlands: Ministry details Rotterdam bunker licensing system and its ‘limited’ effects on preventing fuel contamination

The Ministry of Infrastructure and Water Management of Netherlands on Tuesday (30 May) responded to a late 2022 Parliament inquiry regarding its efforts within the International Maritime Organization (IMO) for preventing the admixture of undesirable substances in fuel oil, according to a parliamentary document seen by Manifold Times.

It also provided an update on how marine fuel quality at Rotterdam was affected since the 2021 introduction of a bunker licensing system used by Port of Rotterdam, while comparing the development with other ports.

The ministry said the Human Environment and Transport Inspectorate (ILT) is working on an analysis to study the risks of admixture of waste and undesirable substances in fuel oil.

“A provisional indication from the ILT in this regard is that supervision is hampered by the lack of standards and regulations. The ILT’s risk analysis is expected to be completed in August 2023,” said the ministry.

It added following this, the ministry will explore options to tighten regulations and standards while taking into account environmental legislations within Europe and the international fuel sectors.

As for the deployment of a bunker licensing system, the ministry said the Netherlands has submitted a proposal to the IMO environmental committee with the aim of promoting the monitoring of the presence of harmful (waste) substances in fuel oil by means of a bunker licence system.

“However, at the 2016 meeting of the Environment Committee, a majority of participating Member States indicated that they see fuel quality as a commercial matter between private parties. This majority position made it difficult for port authorities to act as a supervisory authority when bunkering oil,” it added.

“Nevertheless, the IMO environmental committee has a circular in 2019, containing guidelines that describe how a bunker licence system can be used to guarantee the quality of the fuels,” it said.

“This guideline, to which stakeholders from the bunker and oil production sector and various port companies have provided their input, forms the basis for the bunker licensing system that was introduced in Rotterdam in 2021.

“The Ministry of Infrastructure and Water Management has been a supportive interlocutor during this period, with a view to strengthening the information chain and the traceability of the origin of fuel deliveries.”

The ministry noted Singapore’s bunker licence system is comparable to Rotterdam’s and there is an exchange of knowledge between the Port of Rotterdam Authority and the Maritime Port Authority of Singapore (MPA) about the system.

It is also acknowledged that while the bunker licensing system in Rotterdam has a positive effect on the reliability of the fuel supply and transparency in the supply chain, it has its limitations as well.

“However, experience over the past two years also shows that the positive effects on environmental quality of the current bunker licensing system in Rotterdam are limited. One reason for this is the lack of an enforceable framework of standards for undesirable substances in fuels for seagoing vessels. The international nature of the production and distribution chain makes it difficult to establish an applicable uniformed framework of standards,” it explained.

“Discussions on this in the IMO have yet to lead to an international framework of standards. The often complex composition of marine fuels is also a complicating factor in establishing such a framework of standards. In the follow-up steps after the risk analysis, investigations will be conducted on the opportunities to improve the quality of fuel oil and to prevent harmful illegal additions in the supply chain.”

The ministry said based on the risk analysis by the ILT, a study will be launched into the possibilities of introducing additional qualitative frameworks for fuel oil.

“Based on this research, it is determined what feasible policy measures are to reduce the emission of harmful substances by shipping, as a result of admixture with fuel oil. The House will be informed about the results no later than the second quarter of 2024. In addition, the government will continue to make efforts, both in an EU and IMO context, for the transition to more sustainable fuels than fuel oil and the implementation of shore power.”

Related: Port of Rotterdam to introduce bunker licensing program from February 2021

Disclaimer: While considerable efforts have been taken to verify the article’s accuracy through a native speaker and processed from sources believed to be reliable, no warranty is made regarding the accuracy, completeness and reliability of any information. For full disclosure, the original parliamentary document written in Dutch may be obtained here.

Photo credit: Daniel Agudelo on Unsplash
Published: 12 June, 2023