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Cruise

Assessing the impact of ECAs

TArttu Kahonen, Cruise Agency Manager for GAC Finland, explores the impact of

the 2015 ECA regulations on Finland’s cruise industry

here has been plenty of discussion about how the 2015 The Port of Helsinki receives around 300 cruise calls every
0.1% Sulphur Emissions Control Area (ECA) regulations year. Of the 284 cruise ship calls at Helsinki during 2013, 122

will affect the global shipping industry, specifically for were handled by GAC Finland. But with the implementation of
players operating exclusively within ECA waters. For Finland, ECA regulations around the corner, cruise lines face some

difficult decisions about where and how they operate.which sits entirely within the Baltic ECA zone, the impact of
these regulations could have been far more severe, were it not Incentives

for the country’s firm commitment to managing the transition.The Finnish authorities and maritime industry are exploring
The Baltic ECA - which covers the Baltic Sea, North Sea, ways to reduce the financial burden of the 2015 and 2020/2025

English Channel and waters 200 nautical miles from the coasts regulations. €90 million has been allocated for the construction
of Canada and the US - comes into force on 1st January 2015. of local LNG terminals and a distribution network, and the

Under the new rules, vessels operating in the zone must only Government has earmarked €30 million for the installation of

burn fuel with less than 0.1% sulphur emissions. Owners and scrubbers and green technologies on Finnish vessels.
operators have three options: use more expensive distillate The authorities are also looking at ways to keep Finland

(low sulphur) fuels; install exhaust gas/emission abatement competitive as a transportation hub. Legislation to halve
systems – commonly known as ‘scrubbers’ – to reduce the fairway dues from the 2015 SOx implementation date is

sulphur content of normal fuel burned; or switch to LNG fuel, expected to become law soon, reducing costs for vessels
which has very low emissions, but for which bunkering calling at the country’s ports and going some way towards

infrastructure is still largely undeveloped.offsetting increased fuel bills. There are also plans to suspend
Any way you look at it, and despite the recent fall in fuel railway infrastructure tax for all cargo transport from 2015 to

prices, complying with the new regulations will inevitably bump 2017 and extend some regional transport subsidies for the
up the cost of operating in the ECA zones.same period.

Cost of complianceManaging the transition

For the cruise sector, the regulations have raised concerns GAC Finland’s ‘full-service’ agency approach can play a
due to the substantial fuelling requirements of cruise vessels key role in streamlining costs and better managing time and

sailing in Baltic waters. Finland has historically been a strategic resources to offset customers’ additional ECA-compliance
calling point for cruise shipping services, with its well- expenses. As part of the Helsinki Cruise Network, GAC acts

established transportation infrastructure, high levels of security as an advocate on issues important to its cruise customers, so
and HSSE compliance and well-serviced hospitality industry, not they can focus on giving their passengers a time to remember

to mention Finland’s allure as a destination in its own right.in Finland. u

2014 Issue 63
The SHIP Supplier 21