Economic Impacts of Ballast Water Treatment System Installation for Shipowner. Ballast water is the water that is taken on board a ship to maintain its stability and balance when it is not carrying cargo or passengers. Ballast water can contain various organisms and pathogens that can pose a threat to the marine environment and human health when they are discharged in different ports or regions. To prevent the spread of invasive species and diseases, the International Maritime Organization (IMO) has adopted the Ballast Water Management Convention, which requires ships to treat their ballast water before discharging it.
Economic Impacts of Ballast Water Treatment System Installation for Shipowners
One of the main challenges for shipowners is to install a ballast water treatment system (BWTS) that complies with the IMO standards and regulations. A BWTS is a device that uses physical, chemical, or biological methods to remove or inactivate the organisms and pathogens in the ballast water. There are different types of BWTS available in the market, such as filtration, ultraviolet radiation, electrochlorination, ozonation, and deoxygenation.
The installation of a BWTS involves significant costs and operational impacts for shipowners. According to a study by the World Maritime University, the average cost of installing a BWTS ranges from $0.8 million to $5.8 million per ship, depending on the size, type, and age of the ship, as well as the type and capacity of the BWTS. The installation process can also take several weeks or months, during which the ship may be out of service or have reduced operational efficiency.
The economic impacts of installing a BWTS can be assessed from different perspectives, such as the return on investment, the payback period, the net present value, and the internal rate of return. These indicators can help shipowners to compare the costs and benefits of different BWTS options and to make informed decisions. However, these indicators are also influenced by various factors and uncertainties, such as the fuel price, the ballast water discharge frequency, the port state control inspections, the penalties for non-compliance, and the future changes in the IMO standards and regulations.
To illustrate these impacts, some examples are provided below:
– A study by Lloyd’s Register found that for a 10-year-old bulk carrier with a 30-year lifespan, installing a filtration + electrochlorination BWTS would cost $1.9 million and have a payback period of 6.4 years, while installing a filtration + UV BWTS would cost $2.1 million and have a payback period of 7.1 years.
– A study by ABS found that for a newbuild very large crude carrier (VLCC) with a 25-year lifespan, installing a deoxygenation BWTS would cost $4.5 million and have a net present value of $3.7 million, while installing an electrochlorination BWTS would cost $5.5 million and have a net present value of $2.7 million.
– A study by DNV GL found that for an existing container ship with a 15-year lifespan, installing an ozonation BWTS would cost $3.2 million and have an internal rate of return of 9%, while installing an electrochlorination BWTS would cost $3.5 million and have an internal rate of return of 7%.
Therefore, shipowners need to consider not only the technical and economic aspects of installing a BWTS, but also the environmental and social aspects. By installing a BWTS, shipowners can contribute to the protection of the marine biodiversity and ecosystem services, as well as to the prevention of public health risks and economic losses caused by invasive species and diseases. Moreover, by complying with the IMO standards and regulations, shipowners can enhance their reputation and competitiveness in the global shipping market.
In conclusion, installing a BWTS is a complex and costly process that requires careful planning and evaluation by shipowners. However, it is also a necessary and beneficial process that can help shipowners to comply with their legal obligations and to fulfill their social responsibilities.