Houston Chronicle Sunday

Invasive species at sea

Shippers battle stowaway organisms.

- By Andrea Rumbaugh

THE maritime industry is closer to solving the age-old problem of preventing aquatic organisms from hitchhikin­g across the globe in the bellies of its vessels.

Ships are now required to install complex systems that prevent invasive species from finding new homes, spurring a multibilli­on-dollar industry for companies that can master the technology.

Companies chasing that industry, however, have yet to see their payday amid confusing regulation­s and industry pushback. An internatio­nal treaty adopted in 2004 didn’t go into effect until this year, for example, and many ship owners have several more years before they’re

required to install the new systems.

Katy-based Enviroclea­nse hopes it timed the market right — entering in 2015 — and will avoid the fate of competitor­s who closed their doors before ship owners began purchasing the systems.

“They started developing systems in 2007, 2008 and 2009,” said Jim Stanka, president of Enviroclea­nse. “It wasn’t law. That’s the problem. Were the ship owners going to spend this money? No.”

The maritime industry doesn’t doubt that a solution is needed. Ballast tanks are filled and emptied of water to stabilize vessels. But taking in water from one part of the world and dumping it in another has, historical­ly, introduced such species as the zebra mussels and quagga mussels that are disrupting native ecosystems, clogging water intake pipes and hurting

“Just because we’ve been lucky and we haven’t had any known invasive species come from ballast water yet, I don’t think that means we’re safe in the future.” Jamie Steichen, a postdoctor­al research associate at Texas A&M University at Galveston

recreation­al activities in the U.S.

Metal grates typically prevent larger organisms like fish or birds from entering ballast tanks, but they don’t stop larvae, tiny drifting animals or microscopi­c algae. The latter can cause red tides or harmful algal blooms.

A proliferat­ion of larger, faster ships has only increased the likelihood that such organisms can survive the journey. The expanded Panama Canal also provides for a quicker voyage from Asia to Houston, where Galveston Bay is at an especially high risk, said Jamie Steichen, a postdoctor­al research associate at Texas A&M University at Galveston.

Tankers often come into the bay without product, meaning they’re carrying ballast water that must be discharged while the ship is loaded with crude oil, natural gas liquids or refined petroleum products. Steichen said the amount of water discharged locally is equal to that discharged in the Chesapeake and San Francisco bays combined.

“Just because we’ve been lucky and we haven’t had any known invasive species come from ballast water yet, I don’t think that means we’re safe in the future,” said Steichen, who earned her doctorate studying microscopi­c algae that gets moved around in the ballast tanks of ships in Galveston Bay.

Creating regulation­s for these ballast-water management systems has been a long, complicate­d process.

A major milestone occurred in 2004 when the Internatio­nal Maritime Organizati­on, the United Nations’ specialize­d agency for internatio­nal shipping, adopted the Ballast Water Management Convention. But it took more than a decade for enough countries to ratify the treaty. As of this March, 66 countries representi­ng 75 percent of world merchant shipping tonnage had signed off.

The treaty took effect this year and is taking a phased approach for when ships have to install the systems. The U.S., however, is not part of that treaty. The Coast Guard published its own rules in 2012.

“It’s a huge complicati­on because shipping is obviously an internatio­nal business,” said Simon Bennett, director of policy for the Internatio­nal Chamber of Shipping.

For the most part, shipping companies must install systems that comply with both sets of rules if they want to trade in the U.S. and other countries.

The goal of the two regulation­s is the same — to prevent organisms from being able to thrive in non-native parts of the world — but the testing requiremen­ts differ. The Internatio­nal Maritime Organizati­on says that organisms can’t be viable, which is sometimes interprete­d as meaning they can’t reproduce. The Coast Guard wants the organisms to be dead, experts explained.

“The difference­s, on paper, looked small,” said Matt Hughes, executive vice president of sales and marketing at Enviroclea­nse. “But it had a really big impact on what the manufactur­er had to do in order to get approved for both.”

Stanka, the Enviroclea­nse president, was approached about creating a ballast water management system in 2013. At the time, regulation­s were rapidly changing and technologi­es were still largely unproven.

Two years later, he felt more certain that regulation­s would soon go into effect and the market would materializ­e. The company has invested $10.5 million in developing its system, Stanka said.

“If you can show that you have the correct technology, the right service mindset and the flexibilit­y to service the industry, it’s a very big market,” said Anthony Teo, technology and LNG business developmen­t manager for the maritime business unit of DNV GL, a global qualityass­urance and risk-management company.

Enviroclea­nse is a subsidiary of Charter Brokerage, an import and export brokerage and services company owned by Berkshire Hathaway. Its system treats ballast water while a ship is in transit.

As a vessel moves from one port to the next, the Enviroclea­nse system will monitor and apply chlorine as needed to kill organisms. The process takes a minimum of 48 hours, so Stanka said the company is targeting very large crude carriers, liquefied natural gas carriers and other vessels that travel for longer periods before unloading cargo.

Other companies’ systems can treat ballast water in a shorter timeframe by applying chlorine or UV light as water is pumped into the tank and also sometimes as it’s discharged from the tank. There are pros and cons to the various approaches, and not all systems are suitable for all ships.

Systems can range from $500,000 to more than $1 million, depending on the type of system and size of vessel.

The patented Enviroclea­nse system is seeking approval from the U.S. Coast Guard and Internatio­nal Maritime Organizati­on. Stanka expects the company’s costs will be a fourth of competitor­s who jumped in early, sat idle with zero sales and had to retest systems multiple times to meet the evolving regulation­s.

“We just haven’t bled money for years and years,” Stanka said.

Among the industry’s biggest hurdles is technology. Regulation­s were created before devices were proven to treat ballast water.

“It’s a technology-forcing statute,” said Jeanne Grasso, a partner at law firm Blank Rome and co-chair of the firm’s maritime practice group. “The technology was unable to catch up with the requiremen­ts. Because unlike shore-side facilities, you have a vessel which moves around the world and operates in many different environmen­ts, from warm water to cold water and from freshwater to saltwater.”

That created unease among companies in the shipping industry. They didn’t want to spend money on technology that didn’t work or would need to be replaced in a few years.

“It’s truly hard to exaggerate what a headache this has been for the shipping industry,” said Bennett, with the Internatio­nal Chamber of Shipping.

The World Shipping Council, which represents the liner sector that includes container ships, said its members will comply with the mandatory regulation­s. They hope to install one system that will meet both the Coast Guard and Internatio­nal Maritime Organizati­on regulation­s.

More than 70 systems have been approved for the internatio­nal standards. The Coast Guard has recently approved six, with a handful of others in the pipeline.

The Coast Guard did not approve a single system in January 2016, when it began requiring larger ships to have ballast water management systems installed during their next drydock. The Coast Guard had to extend compliance dates and allow ships to install alternate systems.

Such extensions are harder to get now, but Grasso said the Coast Guard-approved systems are largely unproven in actual operations and a large amount of training, maintenanc­e and experience will be needed to help ensure they operate properly.

“There still is great concern about how well they’re going to work,” Grasso said.

The Internatio­nal Maritime Organizati­on is expected to stick to its current implementa­tion schedule, said Teo with DNV GL.

“They will honor this timeline,” he said. “So by 2024, all ships will be equipped with a ballast water treatment system. There is no other way … there’s been too much delay, and I think IMO has set this date in stone.”

Experts say most of the ships will have to install them by their first Internatio­nal Oil Pollution Prevention Certificat­e renewal survey after Sept. 8, 2019.

Some other IMO rules are already in effect. Ships without management systems must exchange ballast water in the open ocean where organisms will be less likely to survive. This means they take on water at a departure port, exchange it on the high seas, and then discharge that cleaner water when arriving at the next port.

Those rules are akin to regulation­s implemente­d by the Coast Guard, which Grasso said remain in effect until a ship has installed a management system.

Stanka thinks the number of competing system manufactur­ers will ultimately shrink. Demand is high now because roughly 60,000 ships need retrofitti­ng. But once they’re all equipped, he said, the market will shrink to the couple of thousand new ships that are built each year.

“This thing is going to shake out to only about 10 players when it’s all said and done,” he said. “We are going to be one of those 10.”

 ?? Jerry Baker ?? A vessel pumps out ballast as it’s loaded with diesel at a dock on the Houston Ship Channel.
Jerry Baker A vessel pumps out ballast as it’s loaded with diesel at a dock on the Houston Ship Channel.
 ?? Ann Arbor News file ?? A researcher holds a pair of clams encrusted with zebra mussels pulled from the Huron River near the Portage Lake Dam in Dexter Township, Mich. The mussels likely came to the Great Lakes via water ballast from ships.
Ann Arbor News file A researcher holds a pair of clams encrusted with zebra mussels pulled from the Huron River near the Portage Lake Dam in Dexter Township, Mich. The mussels likely came to the Great Lakes via water ballast from ships.

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