Page 7 - EurOil Week 19 2021
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EurOil                                                                                                EurOil





















                         To what end?                         which was blocked for six days after a container
                         Erdogan has made no secret of the fact that he  vessel ran aground, demonstrates that even
                         views Kanal Istanbul as a project of great per-  the best managed canals are not immune from
                         sonal importance that he intends to see com-  accidents.
                         pleted despite mounting criticism over the   The canal will thus offer little advantage
                         potential political, military, commercial and  to vessels travelling in either direction and it
                         environmental impact, both from within Turkey  appears increasingly likely that, to encourage
                         and internationally.                 ships to use it, Ankara will have to direct traffic
                           But even as the contracting and construction  there one way or another.
                         of the canal is set to start, the basic business case   It could revoke the Montreux Conven-
                         for it is not clear: Why would shippers opt to pay  tion entirely, or more likely introduce new
                         a transit fee to use a canal when the Bosporus  restrictions on Bosphorus traffic that would
                         is free?                             have the practical effect of reducing traf-
                           Turkish officials insist that the canal will offer  fic through the straits without altering the
                         a safer option for transit than the Bosporus, and  convention.
                         have suggested that the canal would allow ship-  Such a move wouldn’t be unprecedented. In
                         pers to avoid the delays from which Bosporus  the mid-1990s, Turkey required all vessels pass-
                         traffic occasionally suffers.        ing through the Bosporus en route to or from a
                           While it’s true that navigation through the  Turkish port to employ a Turkish pilot for the
                         planned canal will not entail the same tricky  traverse. While large tankers do opt to use pilots,
                         90-degree turns that the Bosporus requires, acci-  most other vessels transiting the Bosphorus
                         dents in the straits are nevertheless extremely  choose not to incur the expense.
                         rare.                                  Ankara also says it will not allow tankers
                           The last major incident involving a tanker – a  carrying liquified natural gas (LNG) to transit
                         Russian fuel oil tanker, not a super tanker carry-  the Bosporus, a stance that technically violates
                         ing crude oil – was back in 1999, before a radar  the Montreux Convention but which has never
                         vessel transit system (VTS) was installed to track  been tested given that no Black Sea littoral state
                         vessels and help aid safer navigation. In the 19  has an LNG import or export terminal. But it’s
                         years that the VTS has been in operation there  also not clear that it would allow LNG tank-
                         have been no major incidents involving tankers  ers to use the canal, given that it will be nar-
                         and no oil spills at all.            rower and potentially just as dangerous as the
                           Delays are not uncommon on the Bospo-  Bosphorus.
                         rus, which can be closed due to bad weather   In any case, the government may come up
                         or the passage of unusually large vessels which  with new rules designed to nudge shippers
                         require traffic to be restricted to one direction  toward the Kanal, whether they like it or not.
                         only. But they rarely last more than a few hours   Erdogan may see the canal as helping ensure
                         and the canal, if built, would likely face similar  the Black Sea “continues to be a sea of peace,
                         limitations.                         serenity and cooperation.” But his neighbours
                           And the recent incident on the Suez Canal,  may take more convincing. ™






















       Week 19   13•May•2021                    www. NEWSBASE .com                                              P7
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