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Emissions Rules Will Drive up Costs for Ferries

Date: 12/11/2013

Enn Pant, CEO of Baltic ferry operator AS Tallink Grupp (Tallink), says rules on sulfur emissions starting in 2015 will raise costs for ferries and cargo shipping, Estonian Public Broadcasting reports.

The new 0.1 percent cap for sulfur content in ship fuel in Emissions Control Areas (ECAs) will demand new investments from ship operators, and Pant said it is still not clear how companies will achieve the reduction.

Pant said price increases will have a greater effect on freight transport than passenger traffic, driving up the cost of goods to consumers.
The CSL Group (CSL) recently warned that environmental regulations are "insensitive" to short sea shippers and may have the unintended consequence of pushing the transportation of goods to the road and rail sectors.

Tallink said last year that it was working to increase its vessels' fuel efficiency in reaction to rising bunker prices.
Source: Ship & Bunker News

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