Economic impact analysis of installing a same risk area under the ballast water management convention
Mohseni, S.A.; Van Hassel, E.; Vanelslander, T.; Sys, C.; Streng, M.; Kuipers, B. (2021). Economic impact analysis of installing a same risk area under the ballast water management convention. Int. J. Transp. Econ. 48(3-4): 479-503. https://dx.doi.org/10.19272/202106704009 In: International Journal of Transport Economics. Istituti Editoriali e Poligrafici Internazionali: Pisa. ISSN 0391-8440; e-ISSN 1724-2185, more |  |
| Keyword | | | Author keywords | Ballast Water Management Convention; Ballast Water Treatment System; Onboard and Shore-based Ballast Water Systems; Ballast Water Management Exemption; Same Risk Area; Cost and Benefit Analysis |
| Authors | | Top | - Mohseni, S.A., more
- Van Hassel, E., more
- Vanelslander, T., more
| - Sys, C., more
- Streng, M.
- Kuipers, B.
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| Abstract | Ballast Water (BW) affects the marine environment and causes ecological, economic, and human health problems. To prevent these effects and to protect the maritime environment, the Ballast Water Management (BWM) convention was adopted in February 2004 by the International Maritime Organization (IMO) and it was ratified and entered into force on September 8th, 2017. The BWM convention aims to treat BW before discharging, which reduces the spread of invasive and harmful species among different regions. However, the BWM Convention considers provisions for cases where vessels do not need to manage their BW based on Regulation A-4 Exemptions, which leads to cost reduction for the vessel owners. Exemptions are applied when a risk assessment (RA) based on the IMO G7 Guidelines, results in an acceptably low risk. To apply for this exemption, the viability of a so-called Same Risk Area (SRA) has been analyzed and determined by several researchers and governments. An SRA is an exemption area within the BWM convention; in this SRA, it is not necessary to treat the BW and it can be loaded and unloaded anywhere within die SRA. The BWM and its exceptions have been approached mainly from an ecological perspective in the literature; however, it is important to look at this convention from an economic point of view. This research, therefore, concentrates on the economic cost-benefit analysis of possible exemptions of the BWM, in particular the possibility of setting up an SRA. The purpose of this paper is to determine the economic effects and the evaluation of the economic viability of an SRA in the North Sea between the Netherlands and Belgium from an economic perspective. The methodology applied in this research is the quantification of the economic effects of the establishment of an SRA and it is twofold. First, the potential benefit of the SRA is assessed, and then the cost of having an SRA is appraised. The research outcome is an overview of the economic effects of the foundation of an SRA, particularly for policymakers and ship owners. It displays the potential benefits of not treating the BW between the ports of the region. The outputs provide the outline for the future decision-making of a possible SRA exemption to the BW management. Ultimately, the results reveal the benefits of vessels sailing in the SRA and the total net benefits of the SRA. Based on the results, the total benefits of establishing an SRA for vessels purely sailing in an SRA are estimated to be zero. However, for those vessels sailing between foreign SRA ports, the benefit or the saved cost of not having to use the shore-based system is calculated. The total net benefit after 10 years ascertains that based on the assumed cost, it is economically worthwhile to introduce the SRA. |
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