cost more. If the USCG continues this
approach, we are likely to see the use of
UV-LED technologies increase to fll part
or all of the decreased market share of
conventional UV systems.
Electrolytic systems are generally
used in larger ships. Assuming that
the shipbuilding market continues to
build the same ratio of large versus
small and medium ships, these systems
will continue to hold approximately 35
percent market share.
WATER SECTOR OPPORTUNITY
The opportunity for companies in the
water sector are categorised in fve
segments; equipment, engineering,
installation & repair services, servicing
equipment and testing laboratories.
Equipment: There are over 60
equipment companies competing in this
Engineering: Engineering frms are
often located near the drydocks where
the installation of BWMS takes place.
A few examples of companies that
specialize in this part of the market are:
• Choice Ballast Solutions, Cleveland
• InBallast AS, Lillestrom, Norway
• Mitsubishi Heavy Industries, Tokyo,
A high-proft area of the industry
is the engineering design of systems.
Each ship is different. Therefore, the
retroftted BWMS must be engineered
for each application. Engineering can be
done in any locale. However, there are
often modifcations during installation
of the treatment system. Local offces
near dry docks will be benefcial to
handle these changes.
Installation and repair services: Often,
service providers are divisions of
engineering frms or ship management
companies. A few examples of
companies in various parts of the world
that specialize in services are:
• Nico International, Dubai, UAE
• Damen Green Solutions, Gorinchem,
• Aries Marine, Sharjah, UAE
• Mitsubishi Heavy Industries, Tokyo,
Servicing the equipment: This is
another opportunity for companies with
water treatment equipment expertise,
especially those with technical staff
working with systems in operation. Ship
owners want the assurance of service for
a 20-year time period. Included in this
part of the business may be the resupply
of parts and materials. This opportunity
will be greatest in areas near dry docks.
The regions that will dominate in service
operation are China, the Middle East
and South Korea. Approximately 70
percent of dry dock work is performed
in China. However, Korea would like to
increase their market share as they have
lost business to China.
Laboratories: There are few laboratories
not associated with governments or
universities. Examples of laboratories
that test for invasive species include the
Bogeda Marine Laboratory, Davis, CA
and Montana Fish Wildlife and Parks
Aquatic Invasive Species Lab, Helena,
An area that is a bottleneck for the
approval process is the availability of
testing facilities and laboratory services.
This encompasses testing entities, such
as Great Ships Initiative, Cal Maritime’s
Golden Bear facility, Maritime
Environmental Resource Center (MERC)
and others in Europe and Asia, and
laboratories with water-borne biological
testing capabilities. The EPA’s Vessel
General Permit states that annual
analytical monitoring is required. In
many instances, it has been diffcult to
have samples collected and tested.
BARRIERS TO EN TRY
The barriers to entry are very high.
There are dozens of competitors in
the market and the cost of obtaining
certifcations is US$3 to US$5 million.
The process of gaining type approval
takes several years to achieve. There is
little opportunity for small companies
and innovative technologies to enter the
The USCG and IMO have different
requirements. This adds complexity
for the equipment suppliers and the
shipping companies. In addition to
the cost of approvals are the costs
of researching and developing the
equipment prior to the beginning the
process of obtaining approvals, global
sales and marketing efforts, personnel
salaries and operating expenses.
Regulatory uncertainty is another
barrier. The IMO convention was
ratifed on 8 September 2016. However,