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Entrepreneurial compliance opportunities for maritime fuel producers

Author

Listed:
  • Eunice Omolola Olaniyi

    (Tallinn University of Technology, Estonia)

  • Yassine Bakkar

    (Tallinn University of Technology, Estonia)

  • Gunnar Prause

    (Tallinn University of Technology, Estonia)

Abstract

In January 2015, the Sulphur Emission Control Areas (SECA) regulations changed so that ships that ply the Baltic Sea and the North Sea must no longer use bunker fuel that exceeds 0.1%. After the regulation of many compliances, changes occurred in the maritime sector, especially in the BSR. From studies, the impact is still somewhat negative for some maritime stakeholders such as small-scale fuel producing companies who must produce fuel that complies with the SECA requirements. The impact analysis of their compliance options shows that hydrodesulphurisation option is the most viable option with a commensurable investment return rate, but it is highly risky and expensive considering the incessant plummeting of fuel price and the financial status of such companies. However, even though the situation looks bleak for the small-scale maritime fuel producers, a more in-depth probe revealed a chance for exceptional opportunities for growth and profit through a change of business model to the maritime energy-contracting model (MEC). The study zooms in on a case fuel producing company, empirically considers and compares the MEC model (as a decentralised option) and the hydrodesulphurisation process (as a centralised option) and, if either option is adopted by as a SECA compliance strategy to ensure a rounded and robust choice making-process for maritime stakeholders in such situations.

Suggested Citation

  • Eunice Omolola Olaniyi & Yassine Bakkar & Gunnar Prause, 2019. "Entrepreneurial compliance opportunities for maritime fuel producers," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 6(4), pages 1550-1565, June.
    • Handle: RePEc:ssi:jouesi:v:6:y:2019:i:4:p:1550-1565
    DOI: 10.9770/jesi.2019.6.4(1)
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    References listed on IDEAS

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    More about this item

    Keywords

    SECA regulations; business model; entrepreneurship; clean shipping; sustainability;
    All these keywords.

    JEL classification:

    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

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