News Analysis: Shipping giant follows China's new emission control policy

International shipping company Wallenius Wilhelmsen Logistics (WWL) has promised to use cleaner fuel in all its ships after China imposed new standards on marine emissions.

WWL announced on Thursday a new company policy limiting sulphur content in its vessels' fuel to no more than 0.1 percent. It expects a 20-percent reduction in NOx emission at berth by 2020.

The company will invest in and support new technology, promote wind and solar power, upgrade existing vessels and collaborate with Exxon Mobil on hybrid ships.

Anna Larsson, WWL head of sustainability, said the company will cooperate with government agencies, ship builders and other organizations.

The commitment, the first from a shipping company with business in China, came in response to new rules. From April 1, ships have been required to use fuel with sulphur content below 0.5 percent when berthed in core ports in the Yangtze River Delta, one of three emission control zones established in January. The other two are the Pearl River Delta and the Bohai Sea, covering 11 ports including Shanghai and Tianjin.

This is only the first step of a more ambitious plan. By 2019, all ships will have to follow the rule, reducing estimated oxysulfide emissions from ships by 65 percent and particulate emissions by an 30 percent.

China's regulation follows similar moves in North America and the European Union which have limited sulphur content to 0.1 percent.

Dong Leyi of the Maritime Safety Administration, said the new policy would improve air quality and help upgrade the shipping industry.

"China is striving to promote new energy, develop emission control technology and take outdated vessels off the market," Dong said.

China has seven of the world's 10 biggest ports but many of its harbor cities face serious air pollution. Ships contribute 8.4 percent of oxysulfide emissions.

Barbara Finamore, Asia Director of the Natural Resources Defense Council, said China has become a leader in controlling air pollution from ships.

She advised environmental protection authorities to increase inspections, toughen up punishments and make use of new technology to test marine fuel.

"As the temporary growth downturn continues, it could not be a better time for the government to make this type of change with regard to environmental requirements," said Michael Hynekamp, COO of WWL's ocean operations.

WWL is the world's largest carrier of rolling equipment and automobiles, and is upbeat about the Chinese market, despite worrying exports and imports.

Xavier Leroi, head of WWL China, said, "Although at a slower pace, the Chinese automobile market in the next few years will see continued growth, and will quickly reach a size of 30 million units, a mind-boggling figure."

About 24.6 million automobiles were sold in China last year. Endi