EXECUTIVE SUMMARY RISK ANALYSIS (VOLUME 1)
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1 EXECUTIVE SUMMARY RISK ANALYSIS (VOLUME 1) The MRC Navigation Programme (NAP) was formulated in 2003 in close cooperation with Member Countries and other regional stakeholders. Its five components share the objective of the MRC Navigation Strategy to promote Freedom of Navigation and increase the international trade opportunities for the MRC Member countries mutual benefit, and to assist in coordination and co-operation in developing effective and safe waterborne transport in a sustainable and protective manner for the waterway environment. The third component of the programme, Traffic Safety and Environmental Sustainability, aims to provide better facilities and capacity to increase safe and efficient Mekong navigation as a separate transport mode and as part of the regional multimodal transport network. It also aims to promote the concept of clean river transport, focusing on strategic prevention of environmental damage from waterway infrastructure or from shipping and port activities; The Mekong River and its main tributaries are an important transport corridor for the trade of cargo, particularly the Upper Mekong between China and Thailand, and the Lower Mekong between Cambodia and Viet Nam. Cargo and fuel throughput and trips by vessels have increased significantly in the Mekong Delta with the development of a deep-sea port at Cai Mep, which allows exports from Cambodia and Viet Nam to be shipped directly to major world markets. At the same time, the construction of a new Mekong port in Chiang Saen in northern Thailand, scheduled for completion on 2012, is paving the way for a sharp increase in exports of fuel to China. In 2009, the Navigation Programme consulted with port authorities, vessel associations, petroleum companies, transport operators and relevant ministries in Cambodia, Lao PDR, Thailand and Viet Nam to assess growing transport of dangerous goods along the Mekong. Unfortunately, the design of vessels for transporting such goods is lagging in Member Countries and does not provide sufficient protection for the cargo in case of accidents. If not managed properly, the increased transport of dangerous goods along the Mekong could have considerable negative environmental impacts. Within the Member Countries, specific legislation on managing navigation spills is limited. Only Thailand and Viet Nam have the necessary personnel and equipment to respond effectively to emergencies. In general, there is limited enforcement or legislative and regulatory guidance prescribing how to prevent navigation spills and what to do in case of an accidental or operational spill. With the need to develop adequate regulations, operational plans and procedures to ensure the risks of pollution can be controlled, the initial consultation was used to formulate the terms of reference for a Risk Analysis. Conducted over a 12-month period with four National Working Groups and international experts, the Risk Analysis was an extensive assessment of selected ports, terminals, vessels and waterways as well as the environment and legal framework in place to govern the safe transport of dangerous goods in the Lower Mekong Basin. The potential impacts of oil spills and operational impacts of the transport of dangerous goods were carefully considered on both a regional and national basis.
2 xxii RISK ANALYSIS The Risk Analysis included assessing the operational impacts of ports, terminals and vessels and also the waterway, environment and legal framework which governs international, cross-border and domestic transport. National working groups were selected in the Member Countries to undertake risks assessment activities at selected ports, terminals, ferry crossings and onboard vessels. The risks identified were compared against regional and international standards, causes of major incidents in the petroleum, maritime and the inland waterborne transport sector to identify priority areas for improving the transport of dangerous goods. An assessment of the waterway was undertaken to determine the suitability for transporting dangerous goods along the Mekong River. The navigation conditions in the Upper Mekong (Lao PDR and Thailand) are categorized by rocky outcrops, strong currents and shoals which are hazardous for navigation. In Cambodia and Viet Nam, the waterway conditions allow for the operation of maritime and IWT vessels, the main hazards for navigation are high traffic density and man-made obstacles along the waterways. CAMBODIA The carriage, handling and storage of dangerous goods is significant in Cambodia. Gasoline, diesel, jet fuel and other petroleum products are imported from Viet Nam and primarily stored at 12 large petroleum terminals on the Mekong and Tonle Sap Rivers. The petroleum products are transported on inland barges from petroleum terminals in Viet Nam. Other dangerous goods including ammonium nitrate, fertilizers and toluene are imported through Phnom Penh Port by cross-border transport with Vietnamese and other foreign-flagged vessels. The transport of dangerous goods and all cargo has increased and is expected to rise further with the development of Phnom Penh Port II on the Mekong River downstream from Phnom Penh which will commence operations in Domestic transport in Cambodia is still relatively limited, with passenger transport being the most prominent mode. There are only a few inland barges and petroleum tankers registered. However, tankers are still used in the high-water season to transport petroleum products from terminals on the Tonle Sap River to floating fuel stations on the Tonle Sap Lake. Domestic tankers are also used as feeders for fuel supply to industries along the Mekong River for power generation and other uses. The transport and storage of petroleum products on the Tonle Sap Lake was identified as an area of concern in relation to the waterway, water-quality threats, importance of wetlands and proximity to riparian populations. Domestic transport may increase in the future with a focus on the development of the agricultural sector, with rice exports expected to rise steadily. LAO PDR The transport of dangerous goods is relatively limited in Lao PDR and there are no large inland ports or petroleum terminals operating along the Mekong River. The most prominent navigation activity is the passenger transport between Huay Xay and Luang Prabang in the Upper Mekong. Vessels are used to transport general cargo mostly in the high-water season. One of the main reasons that navigation is limited is due to the dangerous conditions of the waterway. Most dangerous goods are transported by ferry crossings and include gasoline, diesel, asphalt, fertilizers and construction materials. Tanker trucks containing dangerous goods load onto ferries and transport goods from Thailand to Lao PDR. Km 4 State Port Authority has fuel-storage capacity for refuelling trucks, cranes and equipment onsite. There are a number of small refuelling stations along the Mekong River for cargo, passenger and small fishing and other vessels. One of the main issues identified by the Risk Analysis was the management of solid and liquid wastes and limited awareness of the risks associated with transport and storage of dangerous goods.
3 EXECUTIVE SUMMARY xxiii THAILAND The main navigation activity in Thailand is the import and export of general cargo to the People s Republic of China through Chiang Saen Port in the Upper Mekong. Cargo throughput and ship calls are increasing through Chiang Saen and the new Chiang Saen Port II will commence operations in 2012, with imports and exports set to increase even further. The transport of dangerous goods is also increasing in Thailand through the export of petroleum products through Keawalee Terminal in Chiang Saen, a privately-owned terminal used to transfer diesel and gasoline from tanker trucks to inland barges from the People s Republic of China and Myanmar. Ferry crossings continue to transport tanker trucks containing gasoline, diesel and asphalt across the Mekong River to Lao PDR. General cargo, construction materials and consumables are also carried across the Mekong River at the ferry crossings. VIET NAM Inland waterborne transport is well advanced in Viet Nam where there are a number of inland and maritime ports helping to boost economic growth. The transport and storage of dangerous goods is extensive in Viet Nam. There are a number of petroleum terminals which use domestic tankers to supply refuelling stations and industry for power generation. Tankers are used to export petroleum products to Cambodia from terminals in Ho Chi Minh City and large tankers are also used for domestic trade from Can Tho and My Tho to the west of the Mekong Delta. Due to the magnitude of the transport of dangerous goods in the Mekong Delta, the potential risks to wetlands, agricultural land, mangrove forests and riparian populations is high. REGIONAL ISSUES Navigation development varies greatly between the Upper and Lower Mekong. In the Upper Mekong, Thailand and Lao PDR have signed the Mekong-Lancang Agreement on Commercial Navigation. The Khone Falls in Lao PDR acts as a physical barrier to vessels in the Lower Mekong, where Cambodia and Viet Nam have signed the Agreement on Cross- Border Navigation. Maritime, cross-border and domestic transport is now developing significantly, particularly in Viet Nam. Awareness of dangerous goods, environmental protection, impacts of oils spills and safety requirements are currently limited in all of the Member Countries. Public information and awareness programmes will need to be developed to raise the awareness of all waterway users. Further investigation is required on the legal framework in Member Countries, specifically in relation to existing rules and regulations for inland waterborne transport, the transport of dangerous goods and environmental protection at the national level. Consideration will need to be given to how national and regional rules can be harmonised in the Upper and Lower Mekong under the relevant legal agreements. Member Countries drafting rules and regulations for transporting dangerous goods should consider regional legal agreements and existing rules and regulations. Cambodia is drafting regulations for inland waterborne transport and the transport of dangerous goods. Existing rules and regulations in Viet Nam should be considered under the Cambodia-Vietnam Agreement on Cross-Border Transport. The development and implementation of international instruments such as the ADN Code for the transport of dangerous goods should be evaluated taking into account the current technical capacity and socio-economic development of Member Countries. The implementation of the ADN Code should be undertaken in a feasible and practical manner.
4 xxiv RISK ANALYSIS Viet Nam has the most extensive legal instruments for inland waterborne transport. However, a full review needs to be undertaken to determine the effectiveness of the rules, decrees and circulars specifically for transport of dangerous goods. The review needs to include information on how the rules and regulations are implemented and who is responsible for monitoring and compliance. National line agencies in Member Countries all have difficulties ensuring compliance with existing rules and regulations. This is often due to limited budgets, resources, institutional capacity and also a lack of technical guidance to complete necessary inspections. The line agencies also have difficulty accessing some private terminals and completing registrations and inspections for all vessels. In all Member Countries, there are limited emergency-response mechanisms along the waterway to monitor inland and navigation activities and respond to security incidents, navigation accidents, oil spills and other major incidents. Early-warning, notification and emergency-response systems should be enhanced in respect to existing National Disaster Committees and ASEAN Disaster Response Preparedness. To prevent navigation accidents and pollution, inland waterborne transport should be restricted in areas deemed not suitable for the transport of dangerous goods. Any future proposals to do so on these stretches of the river should be subject to full risk assessments taking into account ports/ terminal, vessels, waterways and the environment. To improve waterway safety, minimum safety requirements for navigation equipment should be established for tankers and cargo vessels transporting dangerous goods in the Mekong River system. A feasibility study should be carried out on establishing a Vessel Traffic System (VTS) to monitor the movement of cross-border tankers and cargo vessels transporting dangerous goods. A number of ports and petroleum terminals do not have effective emergency-response planning for fire, explosion and pollution incidents. The emergency-response plans should also involve consultation with location communities and emergency-response authorities. The capacity of emergency-response authorities needs to be improved to respond effectively to major fire and explosion incidents in collaboration with the private operators of ports and petroleum terminals and local communities. Fire and emergency drills should be performed on a planned basis and reviewed to ensure continual improvement. Not all ports visited had established safety, health and environment management systems. Cambodia, Thailand and Viet Nam have all signed up to the Ports Safety, Health and Safety Management (PHSEM) Code for Partnership in Environmental Management for the Seas of East Asia (PEMSEA). This presents a good opportunity to apply the code to major inland ports in the Member Countries. Some of the petroleum terminals have also not established safety health and environmentmanagement systems or emergency-response plans to governments to outline how they will prevent pollution and respond to emergency situations. Petroleum terminals can have significant impacts on the environment, people and public infrastructure in the event of a major incident and require further monitoring. The petroleum industry and shipping companies should be encouraged to protect the environment under corporate social responsibility (CSR) programmes. The petroleum industry is a lucrative business and companies should invest in safety and environmental protection to ensure a sustainable future for Member Countries. The potential for major oil spills is highest in Cambodia and Viet Nam due to the size of the petroleum terminals and tankers operating. Further assessment and modelling is required to determine the possible trans-boundary impacts and location of terminals to water intake (for drinking) and public infrastructure.
5 EXECUTIVE SUMMARY xxv There are currently no programmes in the Member Countries to investigate soil contamination, surface-water quality and groundwater monitoring in the vicinity of ports, petroleum terminals and areas with high levels of inland waterborne transport. Heavy metals and other industrial contaminants have been detected downstream from navigation activities. However, the source of such pollution cannot be confirmed. Impacts of navigation on water quality are difficult to determine under both the Water Quality Monitoring Network of the MRC and water quality monitoring by the Member Countries. Further investigation is required to monitor water quality in areas with high levels of transport of dangerous goods. A number of facilities were built before the implementation of Environmental Impact Assessment (EIA) rules and regulations. They are therefore not required to submit Environmental Management Plan (EMP) reports to national line agencies to ensure compliance with standards for water quality, waste water and pollution prevention. In Viet Nam, it was reported that a number of operators do not comply with EIA requirements. Cooperation at the inter-ministerial level needs to be enhanced between the Ministries of Environment, Water Resources, Transport and other sectors to ensure compliance with environmental rules and regulations. A joint statement should be prepared between key ministries in the Member Countries to promote inland waterborne transport and the protection of the environment, as recently done by the countries along the Danube River. The conclusions of the Risk Analysis in this volume are being used to guide the Recommendations in Volume II to determine the regional priorities for improving the transport of dangerous goods on the Mekong River. Together, these two volumes provide a useful framework to ensure a balance between inland waterborne transport and environmental protection.
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