German inland shipping gets eco-upgrade incentive
A delayed Government programme which will mean increased funding for eco-friendly propulsion and low emission systems on inland ships has finally gone into effect in Germany, reports Tom Todd.
It has taken the EU more than a year to approve the German Ministry of Transport (BMVI) programme and reports said it came only after the intervention of German Transport Minister Andreas Scheuer.
Martin Staats, who heads the Association of German Inland Shipping (BDB), said: “Today is a very good day for inland navigation!” He revealed that funding of about €131 million had been approved and declared : “we now have the opportunity to finally modernise the German fleet on a sustainable basis”.
Some €30 million in subsidies will reportedly be available this year alone. They are for approved measures to increase the profitability and competitiveness of inland ships.
The BDB added that measures to reduce air pollutant emissions will be “specifically promoted” as the Government seeks to promote the strengthening of inland shipping as a safe, sustainable and effective partner in multi-modal transport chains.
The programme provides for increases in existing subsidies to encourage shipowner investment in high-value sectors like future-oriented, low-emission or zero-emission propulsion systems. It also covers investment in on-board equipment using digital technology and in auxiliary systems, as well as in conversion. One highlighted aspect of the conversion incentives is the need to up ship operational capability in low water conditions – a regular threat on Germany’s pan European ship transit routes.
A BMVI memo said that as of July 1st new engine types which are low in emissions compared to conventional diesels, as well as gas engine technology and related gas storage and supply facilities, will draw 40% subsidy on eligible costs. Measures to reduce pollution and noise will also receive 40% subsidies while 30% of cost will be refunded for measures to improve energy efficiency, the BMVI said.
The Government said grants to small EU firms were now 20% more than previously and those to larger firms 10%, while some regional development projects would draw 5% more subsidy than before.
Scheuer said: “this is good news for inland navigation”. He added the subsidies would make inland navigation “more attractive, effective and competitive” declaring: “my appeal to companies is ‘seize this opportunity’”.