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Conservationists oppose Algoa Bay bunkering

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Algoa Bay was declared by BirdLife International as an Important Bird and Biodiversity Area (IBA) in 2001, because of the globally threatened and vulnerable species. Picture: Raggy Charters
Algoa Bay was declared by BirdLife International as an Important Bird and Biodiversity Area (IBA) in 2001, because of the globally threatened and vulnerable species. Picture: Raggy Charters

The chase for profits at all costs, coupled with total disregard of environmental and tourism considerations has resulted in the emergence of a profitable but controversial industry in the ecologically sensitive Algoa Bay in Port Elizabeth.

Bunkering, commonly known as ship-to-ship refuelling, is fast growing in this region despite numerous objections from marine conservationists and tourism experts who are afraid that, in the event of an oil spill, there will be a major environmental catastrophe.

The activity has been quietly going on since 2016 until recently when large international vessels have been sighted in the bay, engaging in the offshore transfer of oil and fuel, risking the survival of other ocean industries such as tourism, water sports and fisheries.

Currently, only two companies – Aegean Marine Petroleum Network and SA Marine Fuels, owned by black South African women – have been licensed to operate bunkering in Algoa Bay.

A third licence is under consideration by the two issuing authorities – the SA Maritime Safety Authority (Samsa) and Transnet National Ports Authority.

The process works like this: A mother ship carrying the fuel load is permanently anchored in the harbour, and there are about four barges that transport the fuel from the mother ship to the receiving vessels.

Peter Myles, an internationally recognised tourism expert says there are great concerns because there is no legislation to control or guide the operations.

Myles said that, “Bunkering in Algoa Bay has been a point of discussion with concern being raised regarding regulation and authorisation of ship-to-ship bunkering operations.

“There are significant environmental risk factors associated with the activity due to the sensitivity of the surrounding area. Algoa Bay is home to St Croix Island, which supports the largest breeding population of the African penguin on the planet, forms part of the Addo Elephant National Park and is a proposed marine protected area.

“Additionally, the bay is integral to the tourism industry in Port Elizabeth and the surrounds and also the fishing industry, especially the squid fishing industry.”

Myles says none of the current legislation provides for an environmental assessment process to be followed in order to obtain a licence to operate bunkering.

“The process taken by current bunkering companies to obtain permits to operate did not involve any form of public participation or assessment of environmental risks associated with the operations, and no environmental [protection] requirements were set out prior to the issuing of the permits,” said Myles.

However, Samsa says the operations were in line with the government’s policy of opening up the ocean economy – part of Operation Phakisa – which will create jobs.

The authority argues that there will be diverse economic opportunities, adding that, while it was aware of the possible environmental dangers, companies issued with operating licences underwent “a strict auditing process”.

Samsa principal officer Captain Neville Noble said that Algoa Bay was strategically situated – on a prime busy international shipping route – and therefore this was an advantage, as ships improved their cargo capacity.

“This means that ships can refuel rather than waiting to do so at their loading port and reduce cargo to stay beneath the maximum allowable dead weight,” said Noble.

Currently, bunkering is only authorised in Algoa Bay and nowhere else along the South African coastline. This is because the bay is well positioned as a natural stopover on routes to Europe, the Americas, Asia and Australia.

An opposing group consisting of environmentalists and marine biologists, has been formed in Port Elizabeth to counter the controversial operation, and several meetings have already been held.

Although the operators estimate that the industry makes R5.7 billion for the fuel suppliers, conservationists argue that the revenue does not benefit Port Elizabeth, and is not worth the anticipated environmental damage.

The conservationists have called for a “full analysis of benefits and costs”, including revenue and jobs for the Nelson Mandela Bay economy, and the threats of oil spills and their effect on existing enterprises and marine biodiversity, especially the critically endangered African penguin.

Alan Straton, who runs a local water sports company, and is also a tourism expert, says there is no proper study conducted to see what the financial benefits would be for the Nelson Mandela Bay economy.

“I cannot get clarity on just how much money filters into the local economy from this operation – one suspects not a lot. The question is how does government track the sale of fuel from these ships. Presumably they are all foreign-registered vessels and the payment for fuel takes place from overseas bank accounts and not locally,” said Straton.

He added that, during the first quarter of last year, about 1 050 ships anchored in the bay for refuelling, and that, at the beginning of the operations, containment booms used to be deployed around both ships but now that no longer happens, giving rise to oil spillage risks.

Environmental affairs department spokesperson Zolile Nqayi says bunkering did not need a full environmental impact assessment, or even a public participation process.

“Already a number of other environmental protection instruments exist. As part of issuing an operating licence, Samsa should ensure that a public participation process takes place,” said Nqayi.

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