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Economic impact analysis of installing a Same Risk Area under the Ballast Water Management Convention

Journal: International Journal of Transport Economics

Abstract:

This article reports on an economic impact analysis conducted to evaluate the installation of a Same Risk Area (SRA) under the Ballast Water Management Convention (adopted in 2004 and ratified in 2017 by the International Maritime Organization (IMO). The BWM Convention supports efforts to treat BW before discharging, which reduces the spread of invasive and harmful species among different regions. There are some exceptions allowed, primarily determined when a risk assessment determines that the risk of harm is acceptably low. In an SRA, it is not necessary to treat the BW and it can be loaded and unloaded anywhere within the SRA. The authors of this article analyze the use of SRA from an economic perspective, building on previous research that focused on the environmental aspects. The authors determined the economic effects and economic viability of an SRA in the North Sea between the Netherlands and Belgium (affecting five ports – Rotterdam, Zeeland Seaport, Antwerp, Zeebrugge, and Ostend). The authors note that, for vessels merely sailing in an SRA, the economic benefits are estimated to be zero. However, for vessels sailing between foreign SRA ports, this analysis can determine the benefit or saved cost of not having to use the shore-based system.