CircularsNews
July 2023

Operational Interruption in Bizerte Canal

The European Union’s Emissions Trading System (EU ETS) was extended to cover emissions from shipping as of 1st January 2024.

The EU ETS is limited by a 'cap' on the number of emission allowances. Within the cap, companies receive or buy emission allowances, which they can trade as needed. The cap decreases every year, ensuring that total emissions fall.

Each allowance gives the holder the right to emit:

  • One tonne of carbon dioxide (CO2), or;
  • The equivalent amount of other powerful greenhouse gases, nitrous oxide (N2O) and perfluorocarbons (PFCs).
  • The price of one ton of CO2 allowance under the EU ETS has fluctuated between EUR 60 and almost EUR 100 in the past two years. The total cost of emissions will vary based on the cost of the allowance at the time of purchase, the vessel’s emissions profile and the total volume of voyages performed within the EU ETS area. The below is for illustration purposes:
  • ~A 30.000 GT passenger ship has total emissions of 20.000 tonnes in a reporting year, of which 9.000 are within the EU, 7.000 at berth within the EU and 4.000 are between the EU and an outside port. The average price of the allowance is EUR 75 per tonne. The total cost would be as follows:
  • ~~9.000 * EUR 75 = EUR 675.000
  • ~~7.000 * EUR 75 = EUR 525.000
  • ~~4.000 * EUR 75 * 50% = EUR 150.000
  • ~~Total = EUR 1.350.000 (of which 40% is payable in 2024)
  • For 2024, a 60% rebate is admitted to the vessels involved. However, this is reduced to 30% in 2025, before payment is due for 100% with effect from 2026.
  • Emissions reporting is done for each individual ship, where the ship submits their data to a verifier (such as a class society) which in turns allows the shipowner to issue a verified company emissions report. This report is then submitted to the administering authority, and it is this data that informs what emission allowances need to be surrendered to the authority.
  • The sanctions for non- compliance are severe, and in the case of a ship that has failed to comply with the monitoring and reporting obligations for two or more consecutive reporting periods, and where other enforcement measures have failed to ensure compliance, the competent authority of an EEA port of entry may issue an expulsion order. Where such a ship flies the flag of an EEA country and enters or is found in one of its ports, the country concerned will, after giving the opportunity to the company concerned to submit its observations, detain the ship until the company fulfils its monitoring and reporting obligations.
  • Per the EU’s Implementing Regulation, it is the Shipowner who remains ultimately responsible for complying with the EU ETS system.

There are a number of great resources on the regulatory and practical aspects of the system – none better than the EU’s own:

https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02003L0087-20230605

https://climate.ec.europa.eu/eu-action/transport/reducing-emissions-shipping-sector_en

https://climate.ec.europa.eu/eu-action/eu-emissions-trading-system-eu-ets/what-eu-ets_en

In order to bring Bizerte to the attention of our owners and operators who sail to Tunisian ports or whose ships are on the Bizerte channel, we would like to share the news and current situation we have received from TIPIC, the local correspondent of the club, about the Bizerte channel.

According to information from local correspondent TIPIC, a fire broke out in the main engine room of the mobile bridge on the river as a result of the incident that occurred on the Bizerte Canal on July 26, 2023. Although the cause of the fire is still unknown, the operation of the mobile bridge is expected to be suspended for weeks, until the necessary repairs are completed.

Since the fire mobile bridge acts as an important gateway between offshore and inland ports (including commercial berths, silo/grain berths, steel/concrete berths and shipyards), the cessation of operation may result in serious delays/delays in the traffic of ships entering or leaving inland ports. appears to be the cause. For this reason, we strongly recommend that our shipowners planning voyages to Bizerte ports take this situation into consideration.

Dear all,

Please take same u/m info into consideration to inform your good association and members, which have vessels planned to call Bizerta ports:

We regret to inform you that an unfortunate incident occurred on 26th July 2023 at the Bizerte channel, resulting in a fire outbreak in the main principal engine room of the mobile bridge installed along the river. The cause of the fire is still unknown currently. Consequently, the mobile bridge's operation will be suspended for an estimated period of several weeks, or until necessary repairs are completed.

The mobile bridge serves as a crucial gateway between the open sea and the inner ports, including the commercial pier, silo/cereal pier, steel pier, cement pier, and shipyard. With its operation temporarily halted, there will inevitably be disruptions to ship movements entering and leaving the inner ports.

We understand that this situation may adversely affect your vessels' traffic and operations in the region. Rest assured, our team is closely monitoring the situation on-site, working in tandem with the local authorities and relevant parties to expedite the repair process. We will keep you promptly informed of any updates regarding the progress of the repairs and the expected resumption of mobile bridge operations.

During this challenging period, we remain open to answering any questions or providing further clarity on the situation as needed. Our primary goal is to minimise any potential impact on your vessels' activities and ensure a swift resolution to this incident.

We deeply appreciate your understanding and cooperation in these unforeseen circumstances. If you have any concerns or require immediate assistance, please do not hesitate to contact us.

Thank you for your continued support.

Best Regards

Makram MEJRI

TIPIC BIZERTA

00 216 72 439506 (direct) \ Fax 00 216 72 435876 \ Mobile -  00216 98 346743

Rue 8 Janvier 1938 , Galerie des arts , 3rd Floor n° 9 – Bizerta / Tunisia
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