Shipping lines weigh costs of greener Hong Kong port

A proposed law which makes Hong Kong the first jurisdiction in Asia to control ship emissions in its ports has raised concerns on who should bear the costs for an environmentally clean port.

A government bill which would require all ocean-going vessels to switch to clean fuel with a maximum 0.5 per cent sulphur content while docked in Hong Kong is being tabled at the Legislative Council today. Violations would mean a fine of HK$200,000 and six months imprisonment.

The Environment Bureau is aiming for the law to take effect on July 1. Frankie Yick Chi-ming, a legislator for the transport constituency, backs the bill and expects it to be passed. "This has been discussed for some time and I haven't seen anybody stand up to object to it," he said.

Several international shipping lines told the South China Morning Post that they were studying ways to minimise the hit. Levying a surcharge on their customers remains the most viable option.

"With the majority of the industry awash in red ink in recent years, it is beyond our financial capability to bear the entire cost for clean air. We may implement surcharges similar to what we are doing in North America and Europe [emission control areas]," said a local manager for a European shipping line, who asked not to be named.

An emission control area is a designated place that must comply with emission caps set by the International Maritime Organisation. There are three such areas in the world in North America, the Baltic Sea and the North Sea. Shipping lines have slapped US$30 to US$90 per standard container on shippers for the extra costs.