The Tribune

BY DENISE MAYCOCK

Tribune Freeport Reporter

dmaycock@tribunemedia.net

FREEPORT – The implementation of lightering regulations in the Bahamas will create a new stream of revenue for the government according to Minister of Transport and Aviation Glenys Hanna-Martin.

Speaking in the House of Assembly, the minister noted that lightering activities have been taking place regularly in Bahamian waters in the absence of proper government regulations.

She noted that the new regulations will be pursuant to the Merchant Shipping Oil Pollution Act Chapter 275.

“I am pleased to break new ground by propagating these regulations which are the product of consultation between the Ministry of Transport and Aviation and our technical team, and the Office of the Attorney General and the Ministry of the Environment,” said Mrs Hanna-Martin.

“These regulations will, for the first time ever, provide a regulatory regime for an activity that is being carried out almost repeatedly in Bahamians waters but without formal regulation.”

Mrs Hanna-Martin noted that individuals were licensed by the former FNM government to carry out lightering activities in Bahamian waters in the absence of proper regulatory framework.

Lightering is a process involving ship-to-ship transfer of oil cargo.

The process of lightering is used because economical shipment of crude oil from its source requires use of extremely large tankers called very large crude carriers, also referred as VLCCs, and ultra large crude carriers referred as ULCCs.

Mrs Hanna-Martin explained that sometimes ports are not able to accommodate such large vessels because they are either not deep enough, have narrow entrances, or have small berths.

Lightering, she said, allows crude oil cargo to be off-loaded from very large tankers to smaller vessels that can access these harbour, allowing trade to continue.

According to the minister, the process of lightering consists of moving a small tanker called a service vessel alongside the larger tanker or STBL (ship to be lighter) with both vessels still underway.

She said the two vessels are moored together with lines and large rubber bumpers are used to prevent damage to the vessels.

A portion of the crude oil in the larger ship is pumped through hoses to the smaller ship.

The minister said the two vessels may be anchored or continue underway while transfer takes place depending on sea conditions.

“This activity happens routinely in our waters in the absence of regulatory framework.

“I wish the Bahamian public to know that while we met licensed operators in place when we took office, we determined as a matter of policy that no new licenses would be given or made unless and until a proper regulatory framework is in place with safety and emergency contingencies et cetera.

“This despite the fact the several entities have expressed interest and/or desire to become licensed in this area and are waiting for these regulations.”

With regulations in place, Minister Hanna-Martin said, government could give proper consideration to those applicants.

Mrs Hanna-Martin said it “represents in these difficult times a new stream of revenue for the public treasury”.

“One of the important aspects of it is that there will be a tax attached and as result of that it will involve significant revenues for the public treasury.”