Optimarin urges owners to get ahead of regulatory curve on ballast water

OPTIMARIN, a ballast water treatment system provider, is warning that shipowners are "stalling decisive action" on investing in ballast water treatment technology ahead of the UN' International Maritime Organisation (IMO) convention which will demand compliance with a much stricter ballast water regime by 2016.

The concerns were raised as the Norwegian company posted third quarter 2012 revenue of NOK150 million (US$26.2 million), an increase of 100 per cent compared to last year's aggregate turnover of NOK77 million.

The firm's current orderbook stands at 130 confirmed orders. In total 180 type-approved Optimarin Ballast Systems (OBS) have been sold and about 35 systems are now installed on board ships around the world.

"Forecasts for 2013 point to additional growth of some 100 per cent over 2012 figures. The market is churning and we expect a surge of activity in the near future as shipowners scramble to meet the soon approaching IMO ballast water mandate of 2016," said CEO Pai Sanner.

"We estimate that only five per cent of the some 77,800 BWT-applicable world fleet has ordered their systems. Hundreds of shipowners are stalling decisive action, which will severely affect future operations and earnings," said Mr Sanner.

A company statement said 18,200 cargo vessels, 6,400 passenger vessels and 6,300 offshore vessels must meet IMO's BWT criteria by 2014. A major block of vessels, including 9,000 bulk carriers, 14,000 tankers, 19,500 chemical carriers, ro/ro and combo ships and 4,900 container vessels, must meet the 2016 BWT deadline.

Mr Sanner continued: There can be a serious bottleneck when shipowners scramble to meet global BWT regulations in a few years' time. Now with the US Coast Guard pushing their own ballast water regulation, global shipowners must ramp up their BWT decision-making processes."

He emphasised that if all shipowners plan a BWT retrofit during a vessel's five-year survey, about 11,000 retrofits must be completed between 2013 and 2016. Market observers estimate a peak in 2017 with 16,500 vessels needing to be retrofitted that year, an average of 45 systems per day.

"We are facing a very strong demand in the next months, but the big question is, will the supply side be able to handle future BWT system demand," he added.

Optimarin recently signed a major fleet-wide retrofit ballast agreement treatment contract with Saga Shipholding for NOK100 million and received an order from Evergreen Marine Corp for BWT systems to be installed on ten newbuild containerships. This contract is valued at approximately NOK25 million.