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    Government extends double-hull policy
    By VG Cabuag
    Reporter

    THE government has extended the implementation of the double-hull policy for vessels carrying black oil to the end of the year, but placed stiff conditions before operators can qualify for such an exemption.

    Sources said the Maritime Industry Authority (Marina), during its board meeting earlier this week, approved the extension of the implementation of the double-hull policy, which will take effect by the end of the month, but the rules have yet to be made public.

    The extension is up to the end of December 2008.

    Marina administrator Vicente Suazo Jr. in a text message to BusinessMirror confirmed that there is such an extension of the implementation but “under certain conditions.”

    “There will be penalties to be imposed for every day of delay, plus cash bond,” he said, but did not give details.

    Marina has been careful about extending the policy since many big shipping firms have started investing millions of pesos on either buying new double-hull tankers or converting existing vessels.

    With the extension, the government has given in to the request of operators who earlier said they would not be able to comply with the ruling of using double-hull vessels to move black oil, such as crude, anywhere in the country’s waters, including the Pasig River, where the Pandacan oil depot is situated.

    Most of the tankers that carry black oil have been compliant with the double-hull policy since most of them have long-term charter contracts with oil companies, which employ stricter requirements as a result of insurance and other policies set by international conventions.

    The situation, however, is different with barge operators, which provide service on a per-voyage basis.

    It will take only two months to convert a barge to double hull, but they claim there is no available shipyard to do the conversion.

    Many are also adamant since there is no guarantee they can recover their investments as a result of the relocation of Pandacan depot by 2013.

    Conversion of a barge to double hull costs about P20 million, depending on the size, while buying a new one costs between P120 million and P150 million.

    Double-hull vessels are less likely to cause oil spills in case of accidents, according to Marina, since the bottoms and the sides of the tankers have two complete watertight layers.  The outer layer is the usual hull and the second layer serves as a backup.

    At present, there are 22 vessels that carry persistent oil. Of this figure, eight were able to convert to double hull, but there were six additional double hull vessels that came into the country since the MT Solar I sunk off Guimaras Island in 2006, the country’s worst oil spill in history.

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