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Agreement reached on wreck removal
SINGAPORE and Malaysia have agreed that the wreck of the Malaysian flagged general cargo ship Everise Glory should be completely removed. The wreck lies about seven n-miles north-east of the disputed islands of Pedra Branca and Pulau Batu Puteh. The ship sank after colliding with the Evergreen Marine container ship Uni Concord outside the Singapore Strait on 4 June. “The safety of international navigation was of primary consideration,” said a joint statement from the governments. The wreck is in the middle of one of the world’s busiest sea lanes. A crew member of the bulk carrier died in the incident. © Lloyd's Register - Fairplay Ltd 2005.
Asian shippers combat immunity
SHIPPERS' councils in South Asia have called for an end to anti-trust immunity that gives shipping lines the right to increase freight rates. Delegates at a two-day gathering of the Association of Shippers’ Councils of Bangladesh, India, Pakistan and Sri Lanka in Karachi said they would do all they could to bring an end to the status by co-operating with other shippers' councils. “We will join hands with the Asia, EU and ASEAN shippers’ councils, which have already expressed their resentment over the anti-trust immunity given to shipping lines,” members of the Association told a press briefing held at the Federation of Pakistan Chambers of Commerce and Industry at the weekend. They claimed that under the immunity, shipping lines could not be challenged in a court of law on any issue relating to freight rate hikes or any matter related to freight. © Lloyd's Register - Fairplay Ltd 2005.
Armed Forces chiefs for KL security talks
Kuala Lumpur - The armed forces chiefs of Malaysia, Indonesia, Thailand and Singapore will meet here for three days from tomorrow to discuss regional security. Armed Forces chief Laksamana Tan Sri Mohamad Anwar Mohamad Nor said the meeting would, among others, discuss the passage of ships and fishing activities in the Straits of Malacca. The other chiefs are Gen Chaisit Shinawatra of Thailand, Indonesia’s Gen Endriartono Sutarto and Lt-Gen Ng Yat Chung of Singapore. "The conference will demonstrate the readiness and commitment of the four countries to seriously tackle issues threatening regional security and safety. "The straits is a key passageway to the world’s maritime industry and affects not only our countries but also the rest of the world," said Mohamad Anwar. Meanwhile, Mohamad Anwar was bestowed the ‘First Class Knight Grand Cross’ by Thai King Bhumiphol Adulyadej in Bangkok yesterday. The award was presented by Thai Defence Minister Gen Tammarak Isangura during Mohamad Anwar’s official visit to the kingdom. © 2004 NST Online.
Coercive Maritime Diplomacy by Dr Vijay Sakhuja
The Lloyd's Market Association's Joint War Committee (JWC) has declared the Straits of Malacca and 20 other maritime areas in West Asia and Africa as highly prone to piracy, war, strikes, terrorism and related perils. The West Asian countries include Bahrain, Iraq, Israel, Lebanon, Qatar and Saudi Arabia. Interestingly, Iran does not figure in the list of countries recommended for special attention. In Africa, Nigeria and Somalia are considered security threats to shipping. The JWC decisions are generally followed internationally and this move is fallout of a report that warns of an Al Qaeda attack on a "significant maritime target" this year. It is feared that Al Qaeda could exploit piracy in the Malacca Straits to attack ships. Meanwhile, the Malaysian Transport Minister Datuk Seri Chan Kong Choy, after inaugurating the third annual Indian Ocean Research Group (IORG) International Conference in July 2005, termed the JWC declaration as "over-dramatic." The shipping community too has echoed a similar response and is gearing up to leading a regional charge to overturn this war risk assessment. They believe that the assessment could hit economies across Asia as increased costs inevitably flowed down industry supply chains. Lloyd's Market Association has defended the move and noted that underwriters' are not looking to stop trade; instead, they are looking to assess their own exposures and help the trade by providing a realistic approach. War risk in the maritime domain is not a new phenomenon. Shipping transiting or proceeding to regions or areas prone to war or threat of a war have been subjected to additional insurance surcharge. For instance, insurance underwriters had declared Sri Lanka a war risk zone following the attack on Colombo International Airport in 2001, which led to the destruction of several commercial aircraft. Shipping companies had to pay an extra $350 per container for Sri Lankan imports and exports to cover vessel calls at Colombo. After suffering for almost one year, the Sri Lankan government had to request global insurance giant Lloyds of London to engage in a security audit of Colombo, Galle and Trincomalee ports, and the Bandaranayake International airport. It was only after a favourable report that shipping insurance rates finally reduced and war risk charges abrogated. Similarly, during the 2002 military standoff between India and Pakistan, ships calling at the Indian ports of Mumbai, JNPT, Kandla and other ports in the region (ports 18 degrees Northwest of 73 degrees East) had to pay additional war risk premiums (WRP). Similarly, war risk surcharge imposed on Pakistani cargoes attracted an additional weekly WRP of about 0.75 per cent of the insured value of a ship and this would have cost more that Rs10 billion annually to the government, had the standoff continued. The All-Pakistan Shipping Association had lamented that Pakistan's economy could not afford such a high WRP as it was facing Balance of Payment problems and disruption of exports. Besides, the US and coalition navies were patrolling the Arabian Sea and there was no danger to cargo ships transiting to and from Pakistan and WRP was uncalled. Interestingly, during the wars of 1965 and 1971 between Pakistan and India, no war-risk premiums had been imposed on trade cargoes. Entities like the JWC and the International Maritime Bureau (IMB), an organization under the International Chamber of Commerce (ICC) appear to dictate the maritime security environment. This has given rise to a lucrative private security industry, which is engaged in providing safe passage to maritime shipping. Security firms are willing to escort cargo ships and a mission could starts at $50,000. Alex Duperouzel, managing director of Background Asia Risk Solutions (BARS), a security firm based in Singapore, while speaking to the Sunday Herald noted, "We are not in the business of eradicating piracy. But we are in the business of suppressing it and protecting our clients." BARS formerly specialised in kidnap and ransom operations, employs around 60 US and Commonwealth ex-military and police personnel who either provide armed protection on board vessels or accompany alongside in a chartered patrol boat. These developments point to the fact that there is a move towards privatization of security. According to an analysts, in the 1990s, there has been a rapid growth of private military security agencies and the private security trade will grow from $55.6 billion in 1990s to $202 billion in 2010. By declaring regions as piracy prone or war torn and imposing WRP, the insurance industry appears to be engaging in coercive diplomacy. Historically, coercive diplomacy has been a state function and a tool of statecraft. In the maritime domain, it is meant to use naval force or the threat of limited naval force, other than an act of war, in order to secure advantage or to avert loss, in furtherance of an international dispute. However, entities like the JWC and IMB have been successful in engaging in coercive diplomacy to shape maritime security environment. Like all private enterprises, these ventures are commercially driven and their services have certainly forced governments to respond to their risk assessments. © Copyright 1997-2005, Institute of Peace and Conflict Studies.
Consumers to pay price of piracy
Kuala Lumpur- The dark spectre of piracy on the high seas may have a direct impact on consumers’ purse-strings in months to come. Shipping is expected to become more expensive as companies begin paying higher insurance premiums to protect their ships, cargoes and crews. This follows the recent declaration of the Straits of Malacca as a war-risk zone by the Joint War Committee of Lloyds, which allows underwriters to charge additional premiums for ships plying the straits. Malaysian branch of the International Maritime Bureau Piracy Reporting Centre (IMBPRC) head Noel Choong said Malaysians may end up having to pay more for goods. "These extra premiums could ultimately lead to the consumer bearing the brunt of increased prices for goods," he said. He regards acts of piracy as committed by criminals and not terrorists. Thus, reports that terrorists in the guise of pirates were attacking vessels were untrue, he said. There were 75 incidents of piracy and armed robbery in the straits in 2000 and 37 incidents last year. Between January and last month, there had been 42 reported incidents of piracy in Indonesian waters and eight in Malaysian waters. On whether shipping companies should engage armed escorts to thwart piracy on the high seas, he said IMB had never endorsed the idea. He said the onus was on government bodies to protect their waters and allocate adequate resources to patrol the straits and apprehend and prosecute pirates. Foreign Minister Datuk Seri Syed Hamid Albar was quoted recently in an IMB report as saying that Malaysia would not accept the presence of mercenary vessels in its waters. He had said that they may be seen as taking over the role of the navy and maritime enforcement agencies. However, with more than 100,000 vessels weighing 300 tonnes or more passing through the Malacca Straits, the temptation for pirates to make an easy killing is always a factor. Meanwhile, Maritime Institute of Malaysia (Mima) fellow Nazery Khalid said Lloyds had over-generalised by labelling the straits a high-risk area. He said there were only 17 cases of piracy in the waterway which saw 63,000 vessels passing through last year. "This is a mere 0.02 per cent of the traffic with most cases being smaller vessels like tugboats. "Hence, it is a gross generalisation and an oversimplification of the complexity of the issue of piracy and terrorism in the straits." Nazeri said, the "ill-advised evaluation" would have an impact on consumers already hit by higher prices for goods. © 2004 NST Online.
Don’t encroach on ports
Kota Baru - Many fishing boats and anglers are encroaching on ports on the East Coast because of the abundance of fish. Eastern region marine police chief ACP Isa Munir today warned them they could face court action for such encroachment. "So far this year, five cases have been reported, at Tanjung Gelang in Kuantan, Pahang and the Kerteh petroleum port and Kemaman port, both in Terengganu. "They involved fishermen and anglers," he said today. Isa said such activities could endanger others, especially when cargoes were unloaded. To prevent encroachment, he said, marine patrol boats would monitor the ports. © 2004 NST Online.
IMB refutes piracy allegations
Allegations from Indonesia that the International Maritime Bureau has misrepresented the nature of Malacca strait piracy have been refuted. “There is no basis to the allegation that the statistics coming out of the IMB Piracy Reporting Centre are wrong,” IMB director Pottengal Mukundan told Fairplay in an e-mailed statement. The Centre, based in Kuala Lumpur, compiles reports from ship masters during or immediately after an attack, Mukundan emphasised. Indonesia’s foreign minister Hassan Wirayuda conceded that security problems in the strait persist, but added: “ … not all the problems are piracy attacks as reported by the International Maritime Bureau.” Wirayuda made the remarks before last week’s meeting of the foreign ministers of the littoral states on the Indonesian island of Batam. Indonesia, Malaysia and Singapore have agreed to step up vigilance, possibly through co-ordinated air patrols. © Lloyd's Register - Fairplay Ltd 2005.
Indonesia impounds Croatian ship
Zagreb/Surabaya - The Indonesian navy has impounded a Croatian ship and detained its 20-man crew, state-run HRT television reported on Tuesday quoting the Croatian ambassador. The report quoted "Croatian sources" as saying the action was taken "because it was carrying illegal cargo". Croatian Ambassador Aleksander Broz said the Indonesian action was "not in line with the law". "We are asking the Foreign Ministry to explain what happened," said Ambassador Aleksander Broz, adding that the ship's owner is considering bringing Indonesia to an international maritime court. The privately owned MV Mirna Rijeka has been involved in a lengthy legal battle with Indonesian officials since August 2004, when the logging vessel was accused of using improper travel documents. The East Java High Court ruled in favor of the company in May and ordered the navy to escort it from the port city of Surabaya to international waters, but local authorities prevented it from leaving, Broz said. Lt. Col. Guntur Wahyudi, a navy spokesman, said the troops were acting on orders from prosecutors who claimed the vessel was carrying illegal logs, which were seized by forestry officials. "This ship was free to sail on May 6," Broz said. "From my standpoint, everything that has happened since that point is illegal, including the seizure, even if that was done by court order." When the MV Mirna Rijeka was originally intercepted in the Arafuru Sea in eastern Indonesia, it was carrying 15,000 cubic meters of logs. The vessel was subcontracted out to a third party. Agoes Salim Dunda, the ship's representative in Jakarta, called on the government - including the ministers of foreign affairs, transportation and forestry - to abide by the high court's decision to release the Mirna Rijeka. "Our crew knows nothing about illegal logging," he said. "Prosecutors should investigate the company that is involved in the felling of the trees, not us." © The Jakarta Post.
Joint War Committee urged to review Malacca terror risk status by Mike Grinter
Malaysia, Singapore and Indonesia called on the Joint War Committee yesterday to review its position on the Malacca Strait while detailing their response to the security threat on the waterway. Anti-piracy air patrols will begin as early as next month, the countries said in a joint statement, in an effort to ease international fears over security in the key shipping lane. Responding to the concerns of coastal states, Neil Roberts, marine technical executive with Lloyd’s Market Association, re- affirmed that the position was being constantly monitored by both the Joint War Committee and its consultant, Aegis Defence Services. These bodies would be encouraged by official developments in the region, which would be factored into negotiations. “Aegis has judged it to be a high-risk area and there is a tacit acknowledgement of that in action being taken, not only by the littoral states, but by others,” Mr Roberts said. “This new listing is based on a rational and reasoned analysis by professional intelligence specialists. “To that extent, the list is quite robust and is a reflection of the perception of what is going on in the world. The list is reactive and if things change, the list will change.” The chiefs of defence forces from the three nations released their Eyes in the Sky plan after a two-day meeting in Kuala Lumpur with their counterpart from Thailand, saying it would bolster co-ordinated maritime patrols launched last year following rising cases of sea robberies and fears about a possible terrorist attack on ships, AP reported. “We want to show the international community that we are serious about securing the Malacca Strait,” Indonesia’s military commander, General Endriartono Sutarto, said. The move seems to be motivated more by a perception that the strait could be a target for terrorism rather than the fact that it has long been a location for acts of piracy, given that the International Maritime Bureau has reported a sharp drop in incidents of piracy in the first six months of 2005. The IMB reported eight piracy attacks on the strait in the first half of 2005 compared to 20 incidents in the same period last year. Even these numbers may be an exaggeration, according to Indonesian Foreign Minister Hassan Wirayuda who, AP reported, claimed the IMB was misrepresenting piracy statistics by including incidents at Tanjong Priok port and the nearby Sunda Strait. Staff at IMB in London and Kuala Lumpur were unavailable for comment yesterday. Separately, Malaysian Defence Minister Najib Razak called for assistance from governments outside the region in the form of aircraft and other equipment, stating that the three nations had insufficient aircraft to operate the mission. “The reality is that we need more resources to ensure the level of security in the Straits of Malacca,” the minister told a news conference. “The only way we can do it is to engage the international community, but not at the expense of principles of national sovereignty and territorial integrity.” The Defence Minister took the opportunity to reiterate that any call for assistance should not be misinterpreted. Any aircraft provided by other countries would remain under control and command of the littoral states, he said. Malaysia, Singapore and Indonesia have previously rejected out-of-hand offers by the US to send troops to protect the Malacca Strait. The countries’ military leaders have equally rejected suggestions that shipping operators employ private security firms to escort commercial ships through the waterway. Matters regarding security on the Malacca Strait have been rapidly coming to a head this week following a recent decision by London’s Joint War Committee to include the shipping lane as a war risk area after receiving advice from private security firm Aegis Defence Services that the area was ripe for a terrorist attack. Asian shipowners expressed outrage at the decision. The International Chamber of Shipping, the Asian Shipping Forum and government representatives from around the region have set up a meeting with the Joint War Committee to thrash the matter out at the end of August. They were backed later yesterday by the nations straddling the strait, who urged insurers to reconsider their “war-risk” rating, Reuters reported. Foreign ministers from Indonesia, Malaysia and Singapore said they had made significant progress in establishing a framework for co-operation in areas such as air surveillance, co-ordinated patrols and information sharing. “It’s regrettable that they have classed the strait as a high risk zone,” Singapore’s Foreign Minister George Yeo told reporters at Indonesia’s resort island of Batam, where foreign ministers of the three nations held a two-day meeting focusing on security in the Malacca Strait. “We hope that they will take a close interest in what we are doing and factor this into account in the straits of Malacca and Singapore,” he said. © 2005 T&F Informa UK Limited.
Leaders note progress in resolving maritime issues by CT Hj Mahmod & M K Anwar
The Heads of State of Brunei and Malaysia have noted progress in the long-drawn negotiations between the two countries in resolving the issues of maritime delimitation, said Malaysian Prime Minister, Dato' Seri Abdullah Hj Ahmad Badawi. The Malaysian Premier told reporters yesterday at the International Convention Centre (ICC) that both leaders have urged senior officials of both sides to continue with the discussion and explore all means to resolve the issue as soon as possible. However, he did not elaborate on the lengthy discussions between the two countries over Limbang, and said, "Enough has been said about it, and so far it has not affected Brunei-Malaysia ties." Abdullah was in the Sultanate for the 9th Annual Leaders' Consultation with His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam. Both leaders held a four-eye meeting at the Istana Nurul Iman on Monday. The importance of deepening Brunei-Malaysia ties particularly in fostering closer economic cooperation topped the agenda of the four-eye meeting, which the Malaysian premier described as "good, friendly and constructive". He said he was pleased that both states could also cooperate in the areas of Islamic banking and finance that would certainly be beneficial to Brunei-Malaysia ties. Both leaders have tasked respective officials to explore ways of promoting cooperation in areas such as hydrocarbon, tourism, Islamic banking and halal food production. A joint statement issued on the 9th Annual Leaders' consultation between Brunei and Malaysia stated that both leaders agreed to set up a high level mechanism under the purview of the respective Ministry of Foreign Affairs to undertake collaboration in these areas. This mechanism will complement the work of the Brunei Darussalam-Malaysia Joint Commission (JCM). The two leaders welcomed the conclusion of the negotiations on the Agreement on the Avoidance of Double Taxation (DTA) and looked forward to its signing at a later date. DTA, once concluded, will pave the way for the strengthening of future bilateral trade and investment and enhance the two-way flow of technology, talent and expertise. Greater consultations were further encouraged by both leaders between their respective government agencies and private sectors with the view to broaden the scope of bilateral ties. Among other topics discussed between the two leaders included regional and international issues of mutual interest, encompassing political, economic and security areas. They have also reaffirmed the value of closer coordination and consultation between Brunei and Malaysia in various regional and international fora especially Asean, BIMP-EAGA, UN, OIC, NAM and ARF. Great importance was also placed on the 11th Asean Summit and the inaugural East Asian Summit scheduled to be held in Kuala Lumpur later this year. Both the head of states also reaffirmed the importance of Asean continuing to play the primary role in promoting East Asian cooperation. His Majesty commended the excellent work currently undertaken by Malaysia in preparing for the summit including the BIMP-EAGA Summit, and he looked forward to attending these meetings. Both leaders agreed to hold the 10th Annual Leaders' Consultation in Kuala Lumpur next year. The Malaysian premier and his 13-member high-level delegation including Dato' Seri Syed Hamid Albar, Minister of Foreign Affairs; Dato' Dr. Abdullah Md. Zin, Minister at the Prime Minister's Office; and Tan Sri Ahmad Fuzi Hj Abd Razak, Secretary-General at the Ministry of Foreign Affairs, left the Sultanate yesterday. © 2005 Brunei Press Sdn Bhd.
Long-term solution to seafarer shortage sought
Malaysia International Shipping Corporation Berhad (MISC), deeply concerned about an acute shortage of seafarers and pinching of staff by other marine companies, says it is giving priority and taking measures to find a long-term solution to the problem. It aims to boost the number of seafarers available for itself and the local shipping fraternity by offering locals and foreigners more scholarships to undergo training at the Malacca-based Malaysian Maritime Academy Sdn Bhd (ALAM), which MISC was instrumental in setting up. “We have been very active as far as the Malaysian agenda is concerned — to become a maritime nation. However, at the fast pace at which the Malaysian maritime industry is developing, I am a bit concerned that in the next two to three years we would be facing an acute shortage of seafarers,” MISC’s president and chief executive officer Datuk Shamsul Azhar Abbas told Business Times. “We need to invest more money into developing human capital. This is a genuine concern. Asset quality is not only in terms of steel (ships) but also in terms of human resourses, and that’s the most important part at this point of time. Others within the industry should do the same.” He said that with hundreds of new ships coming into service, shipping companies such as MISC were facing problems finding competent and quality seafarers. “You can’t get them overnight — you have to train them up, nurture them and groom them. The ships are there and somebody has to move them. So, shipowners have to pay high salaries and attract experienced people from other shipping companies.” MISC is facing this problem currently as many of its experienced staff had been attracted by higher salaries elsewhere and had left the company, he said. “We have been losing lots of experienced people. At this point, demand has exceeded supply to a point where demand has become unreasonable.” In order to help Malaysia become a maritime nation, MISC had supported and will continue to support ALAM, but there are only a few local shipping players who contribute to meet this national requirement,” Shamsul said. “They should be investing in human capital instead of ‘pinching’ staff from others.” Besides Malaysians, MISC as a leading international shipping and maritime company, also sponsors and trains foreigners such as Filipinos and Indonesians to be part of the company’s manpower team. “The current situation is that foreign seafarers have a tendency to stay longer in the seafaring line unlike their Malaysian counterparts who mostly prefer to switch to an onshore job after several years at sea.” “It’s not the fault of Malaysians — its just that there are other opportunities available for them,” he added. MISC is in the process of restructuring ALAM. It has signed an memorandum of understanding with Australian Maritime Academy and contracted DNV for Seaskill Certification so that the local institution can become a world-class one, he said. Currently, MISC sponsors successful applicants for courses at ALAM or any other institutions of higher learning in Malaysia or overseas. Trainees can aim to obtain a world-recognised professional qualification which will enable them to become either a fully fledged ocean-going master mariner or a marine chief engineer. © The New Straits Times Press (Malaysia) Berhad,
Littoral States Agree To Implement 'Eye In The Sky' Concept
Kuala Lumpur - Malaysia, Singapore and Indonesia, the littoral states of the Straits of Melaka have agreed in principle to implement the "Eye in the Sky" concept next month in monitoring the security of the straits, Datuk Seri Najib Tun Razak said Tuesday. The Deputy Prime Minister said Thailand, a non-littoral state, had also shown keen interest in cooperating with three nations in keeping the straits threat-free. The "Eye in the Sky" concept, among other things, mobilises existing military assets of the three littoral nations such as maritime patrol aircraft to complement the coordinated patrol arrangement under MALSINDO (Malaysia, Singapore and Indonesia), he said. Najib, who is also Defence Minister, said this to reporters after the chiefs of defence forces of Singapore, Indonesia, Thailand and Malaysia called on him at the Defence Ministry here. The chiefs of defence forces of the four nations -- Gen. Endriarto Sutarto (Indonesia); Admiral Satirapan Keyanon ( Deputy Supreme Commander, Thailand); Lt. Gen. Ng Yat Chung (Singapore); and Admiral Tan Sri Mohd Anwar Mohd Nor (Malaysia) are attending a two-day informal meeting Beginning, here Tuesday. Najib said the informal meeting agreed to establish two working groups to work out the details on both the concepts of maritime security on the MALSINDO framework and the "Eye in the Sky" over the straits. He said details of the two concepts would be further fine-tuned during the International Maritime Organistion (IMO) meeting in Jakarta next month before implementing them. The Melaka Straits is a strategic channel which is one of the busiest routes in the world and is very vital to international trade. Najib said among the details to be worked out by the two working groups were ways to combat piracy as well as possible terrorism threats in safeguarding the security of the straits. He said today's meeting showed that littoral states were committed and serious in ensuring the security and safety of the Straits of Melaka. The deputy prime minister said other countries wishing to extend their assistance by offering some of their assets could do so, but it was up to the littoral states to operate the assets and monitor the security of the straits. Few countries including the United States, Japan and China have indicated their willingness to assist the littoral states in protecting the security of the straits. At the moment, the littoral states have some aircraft with basic radar, helicopter and beachcraft which could be mobilised as part of the surveillance system. "None of the littoral states have the full capacity. We are not talking about sophisticated platform and sensors but basic maritime patrol with certain radar onboard that could locate small craft used by pirates. "We are taking it seriously although the number of piracy cases reported at the straits had not reach a critical level. We want to bring down the figure to almost zero. That is our target," he said. Najib said these efforts would not give additional costs to the littoral states as they would be mobilising their existing assets. However, he cautioned that it would be more costly in the long term if the security problems at the straits were not addressed appropriately and accordingly. © 2005 BERNAMA.
Looking beyond International Ship and Port Facility Security (ISPS) Code by Dr Vijay Sakhuja
On July 01, 2005, the first year of implementation of the International Ship and Port Facility Security Code, or the ISPS as it has come to be known went by. From a gloomy prediction offered by many at the beginning, the ISPS has thus far proved to be successful. Large number of seaports across the globe has become ISPS compliant and there is no evidence as yet to suggest that the disastrous disruption of maritime trade portended by many has come true. 147 states and two IMO observer members adopted the ISPS code in December 2002 during a little-noticed IMO conference. It was agreed to bring the Code into practice on July 1, 2004. On the eve of ISPS’s inauguration, of over 22,000 ships worldwide subject to the Code, only 53.2 percent had complied. Similarly, of 7,974 ports required to make changes to the way they do business, only 53.4 percent were compliant as of June 30 2004. The primary aim of the Code was to strengthen the security of international shipping, ports, waterways and the high seas by directing the governments, shipping companies and port operators to enhance security of the maritime enterprise. Broadly, the Code seeks a Continuous Synopsis Record (CSR) of ships, a logbook of the ship’s history including data relating to place of construction, name of registries it has operated and the name and address of the registered owner. Besides, the ship crews are required to be trained in safety procedures and adoption of pre-prepared plan providing appropriate response to various levels of threat. Similarly, the Code places responsibility on the port authorities to undertake detailed security assessments to identify threats and vulnerabilities including response plans. The governments, for their part, must identifying the level of threat and provide appropriate intelligence and advice to ports and ships. The governments are also responsible for inspecting ports and ensuring ISPS compliance. The Code however is not applicable to vessels below 500 tons. Seaport are a small node in the larger network of supply chain where cargo is loaded/ unloaded from ships, trucks, trains, and at times aircraft. Associated with this network is the shore infrastructure involving people, transport vehicles and goods that are loaded and offloaded at terminal on land. It thus becomes essential to examine port security in the larger context of transportation and logistic security. In other words, to improve security within the port, it is important to secure the transportation and logistics network. If security improvements are limited to the ports, it will result in pushing illicit activities ‘horizontally or vertically into the transportation and logistics systems’ where there is a limited chance of detection/interdiction. Therefore, the need to move upstream and build concentric security circles around loading terminals, transportation route and the port itself becomes inescapable. The first concentric circle (outer most) involves the point of loading. Any container to be shipped through a port must be loaded in an approved sanitized facility. These facilities should be secured against unauthorized entry and the loading process monitored by camera. In high-risk areas, cargo and vehicle scanners must be employed and the images stored so that they can be crosschecked with images taken by inspectors at a transshipment or arrival destination. Containers should be fitted with smart seal. The second circle (middle) of the security perimeter would be the area between the point of loading and the seaport perimeter. After loading, the containers transit over land or on an aircraft before arriving at the seaport. The drivers of the trucks that deliver goods to the port should be subjected to mandatory background checks. It may not be possible to monitor the entire route of transit but check points can be established to track the movements. For instance, a GPS transponders and electronic tags could also be placed on shipping container so that they could be tracked en-route. An electronic sensor installed in the interior of the container could be programmed to set off an alarm if the container were opened illegally at some point during transit. The ports (inner circle) themselves are vulnerable to attacks. Assessing port vulnerability, restricted personnel entry, background checks of port employees and regular training for port security personnel are critical. The need to harness technology cannot be overemphasized. Vital security equipment, regular boats patrol, cameras and vessel tracking devices further contribute to security. Intelligence sharing between local and state agencies and also international agencies is the key to ISPS success. For instance, on an intelligence input, in May 2005, the Mumbai police seized a Rs 1-crore arms haul of small arms. These had been cleverly packed in one of the 20 barrels of industrial grease carried in a container and imported by a biotech and poultry-food company. The consignment originated in Bangkok and included 34 Webley Colt and Wesson revolvers, three powerful pistols, a silencer and some 1,283 rounds of ammunition. Interestingly, eight containers, each with several barrels, were addressed to the agro-biotech firm. Four of the containers were delivered and the fifth was inspected by the Customs and Directorate of Revenue Intelligence and was scanned using the hi-tech X-ray facility. The other three containers are reportedly missing. In December 2004, India and the United States signed a bilateral Customs Mutual Assistance Agreement (CMAA) .The CMAA was conceptualized in 2001 and approved by the Indian Cabinet in 2003. It establishes a formal mechanism for exchange and sharing of intelligence and information between the two Customs Administrations i.e. Central Board of Excise and Customs, in the Department of Revenue of the Indian Ministry of Finance and Immigration and Customs Enforcement (ICE), and Customs and Border Protection (CBP), under the U.S. Department of Homeland Security. This bilateral agreement goes beyond the already existing working relationship between the custom authorities and aims at prevention, investigation and repression of customs offenses. Among other issues, the agreement envisages the two custom authorities to share intelligence and information on terrorist activity, trade fraud, narcotics trafficking, smuggling of weapons of mass destruction, and container security violations. There is no denying the fact that seaports are a weak link of maritime enterprise against terrorism. Meanwhile, the threat of terrorism has put a special emphasis on trade and transportation security. But for a safe system of commerce, a comprehensive and credible approach to security is essential. Port officials are conscious of scenarios such as fully loaded tanker exploding in the harbors, explosives in containers, ship hijacking and terrorists as stowaways.. The question before them however is how to enhance security in such a dynamic environment against such elusive threats. This is a question that is unique and vitally important to maritime security agencies and the nations. It therefore calls for a systematic approach to security of the entire supply chain from point of loading to the point of delivery. © South Asia Analysis Group.
Malacca states oppose war risk tag
SINGAPORE has joined Indonesia and Malaysia to oppose the categorisation of the Strait of Malacca as a high risk area by the Joint War Committee of Lloyd's Market Association. Foreign ministers of the three states met on the Indonesian island of Batam to discuss security in the commercially vital waterway, through which more than 50,000 transits are made each year. “The ministers expressed regret at Lloyd’s categorisation of the straits of Malacca and Singapore as a high risk zone for piracy and terrorism without consulting and talking into account the existing efforts of the littoral states to deal with the problem of safety and navigation and maritime security,” a joint statement said. All three countries have urged the Lloyd’s committee to review its risk assessment. While acknowledging the role that 'user states' could play in ensuring safety and security of the strait, the ministers stressed that primary responsibility would remain with the three littoral states. In a related development, defence chiefs of the three countries are reported to have agreed to consider initiating co-ordinated air patrols to complement co-ordinated sea patrols initiated last year. © Lloyd's Register - Fairplay Ltd 2005.
Malaysia plays down incident between its navy, Indonesia's marine police
Kuala Lumpur - Malaysia on Sunday played down an incident at sea that involved its navy and Indonesian marine police and raised tensions between the two countries. On Wednesday, a Malaysian navy ship and helicopter prevented Indonesian marine police from detaining three Malaysian trawlers for allegedly fishing in Indonesian waters in the Malacca Strait, which lies between parts of the two nations. Jakarta accused the Malaysian navy of violating Indonesia's territorial integrity. On Friday, it delivered a protest note to Malaysia and demanded the extradition of the Malaysian officers involved. Malaysian Foreign Minister Syed Hamid Albar said the navy was "merely looking after the interest and safety of Malaysian nationals," the national news agency Bernama reported. Malaysian officials could not immediately be reached for comment. Syed Hamid said many fishermen enter other countries' waters without knowing it in the narrow Malacca Strait. "Sometimes, when they are caught for encroaching into foreign territory, they are not aware that they are in foreign territory," Bernama quoted him as saying. "Anyway, we have received a protest note from the Indonesian Foreign Ministry on the matter and we will respond according to procedure," he said, without elaborating. Tensions have been brewing between the two countries since Malaysia awarded exploration rights for oil-producing areas in the Sulawesi Sea near the disputed islands of Sipadan and Ligitan earlier this year. The International Court of Justice gave Malaysia sovereignty over the islands in 2002. But Indonesia says Malaysia's sea territory extends only 19 kilometers offshore, and does not include the area where the oil blocks are located. @thejakartapost.com.
Malaysia Urges Asean to Drop Noninterference Policy by Jasbant Singh
Kuala Lumpur - Southeast Asian countries should be open with each other in discussing regional security, which otherwise could be compromised by their grouping's policy of noninterference, the Malaysian foreign minister said Friday. The 10-member Association of Southeast Asian Nations cannot remain fixated on its principle of not interfering in each other's internal affairs because terrorism in one country can have a profound effect on its neighbors, Foreign Minister Syed Hamid Albar said. “Asean countries have to be very open now. We cannot just limit things that happen within our borders as our internal affairs,” Syed Hamid told reporters. He did not say what kind of openness Malaysia would like to see in discussions on security but was apparently referring to intelligence sharing and asking neighboring governments to crack down on extremist groups deemed to be a cross-border threat. "We have to look at external effects because sometimes [events] outside the region can be used by some extremist groups as an excuse to commit terror or acts of violence beyond their borders," he said. Malaysia itself faces the cross-border terrorism dilemma with neighboring Thailand, whose southern provinces are in the grip of a separatist Islamic insurgency. The Thai government claims that the extremists, who have dual Thai and Malaysian citizenship, often cross over to Malaysia to seek refuge after staging attacks. The two governments have set aside the principle of noninterference to discuss the problem openly. As a demonstration of its commitment to curbing the extremist problem, Malaysia said Wednesday it will set up a new patrol regiment to curb intrusions, smuggling and other transnational crimes on its border with Thailand. Syed Hamid said he hoped for more discussions on security issues in future Asean forums. He said a recent meeting of Asean foreign ministers in Batam, Indonesia, discussed not only security in the pirate-infested Straits of Malacca but also surrounding areas such as waters off Thailand and the Philippines. Syed Hamid also expressed disappointment at the recent decision of Lloyds of London—an international shipping insurance company—to put the Straits of Malacca on its list of war-risk areas, which increased premiums on shipping insurance. "They consider it like a war zone area. I think that's a bit of exaggeration. We are disappointed because we were never consulted," he said. © Irrawaddy Publishing Group (IPG).
Misperception Of Piracy And Terror Link In Malacca Straits
Malaysian Ship Owners Association (MASA) said there is a misperception among underwriters of a direct link between piracy and terrorism in the Straits of Malacca. Its chairman, Nordin Mat Yusoff, said in a statement here Monday that so far there has been no terrorist attacks in the Malacca Straits, and no evidence of a continuing threat of an Al-Qaeda inspired attack. The explanation came at a time when the busy and important straits, under the littoral states of Malaysia, Indonesia and Singapore, was rated as a high-risk zone for piracy and terrorism. In July, Lloyd's Joint War Committee, a London based advisory body for insurers designated the Malacca Straits as a high-risk area for war and terrorism on a par with Iraq for insurance purposes. Meanwhile, in the same statement, the Federation of Asean Shipowners' Associations (FASA) welcomed the start of dialogue with the Joint War Committee marine hull underwriters at the offices of the International Chamber of Shipping on Aug 16, 2005, and hoped talks would continue. Its president S.S. Teo said that while the war risk rating was unchanged, FASA remained optimistic that the Malacca Straits would be removed from the listing soon. He said that the committee should not rely on a single report from one consultant and should review its decision to place Malacca Straits on the listed areas of Perceived Enhanced Risk (listed areas) in relation to war risks. However, Teo said that while FASA welcomed recent measures taken by the littoral states to enhance security in the Malacca Straits, it does not believe these actions were taken in response to the report. "There should be an urgent and thorough review of the risk assessment of Malacca Straits involving wider consultation." he said. "There is no valid reason for war risk insurers to take hasty action in seeking to charge additional premiums before this review is completed," he added. Teo said that FASA member associations would continue to advise their members to negotiate with their brokers and underwriters not to charge any additional premium based on perceived risks for ships passing through the Malacca Straits. © 2005 BERNAMA.
Oceans have fewer kinds of fish: overfishing among causes, study says by Juliet Eilperin
The variety of species in the world's oceans has dropped by as much as 50 percent in the past 50 years, according to a paper published today in the journal Science. A combination of overfishing, habitat destruction and climate change has narrowed the range of fish across the globe, wrote biologists Boris Worm and Ransom A. Myers of Dalhousie University in Nova Scotia and three other scientists. In some areas, such as off northwest Australia where a wide variety of tuna and billfish used to thrive, diversity has declined precipitously. "Where you used to put out a fishing line 50 years ago and catch 10 species, now you catch five species for the same amount of effort," Worm said in an interview yesterday. "That's a recipe for ecological collapse and disaster." The study, which marks the first worldwide mapping of predatory fish diversity, identified five hot spots in the world that have a rich variety of species, two of them in U.S. waters. The hot spots are areas off the east coast of Florida, south of Hawaii, near Australia's Great Barrier Reef, near Sri Lanka and in the South Pacific north of Easter Island. "These areas are really of global significance," Worm said. "It's really important to protect them now, because 20 years from now they may not be there." The total catch for tuna and billfish has increased as much as tenfold over the past half-century, they found, prompting fish diversity to plummet. Overfishing is the main factor in these species' decline, Worm said, as well as for other fish caught inadvertently. "That's what's driving the pattern," he said. But in an example of how shifts in temperature can also affect diversity, the study found that in the Pacific, the variety of fish expanded when the weather pattern known as El Nińo swept in and brought warmer surface water but then contracted when temperatures dropped. Predatory fish appear to like medium temperatures, around 77 degrees Fahrenheit, Myers said. "Like Goldilocks and the three bears, ocean animals don't like it too hot or too cold, they like it just right." To do the study, Worm and Myers -- along with Marcel Sandow, Heike K. Lotze and Andreas Oschlies of Germany's Leibniz Institute for Marine Science -- used data from Japanese long-line fisheries going back to the 1950s, which they cross-referenced with U.S. and Australian scientific observer data. The researchers determined that tuna and billfish are indicators of wider ocean diversity, and that these species are disappearing in many areas. Mid-size predators -- snake mackerel and pelagic stingrays -- are taking their place. Worm compared the diminishing range of species to a poorly distributed stock portfolio that is ill-equipped to respond to economic and environmental shifts. "As [fishing] markets change, as the climate changes, you have nothing to fall back on," he said. Myers said international authorities need to ban fishing in ecologically valuable sites. "We need protected areas in the open ocean," he said. "The open ocean is still open access." © Washington Post.
Pirates strike again in Indonesian waters
Pirates have attacked a Malaysian tugboat in Indonesian waters while it was towing scrap metal to Penang from Kota Kinabalu on Borneo island. The Piracy Reporting Centre of the International Maritime Bureau says the captain abandoned the barge and managed to escape with his seven crew members on the tugboat to Singapore. The incident which happened on friday is the second of its type in recent days. Last tuesday three Indonesian pirates hijacked another Malaysian tugboat and barge, kidnapping eight Indonesian crew and dumping the Malaysian captain into the sea. He was subsequently rescued. The vessels were on their way from the southern Johor state of Malaysia for Labuan island, in eastern Sabah state. In July the IMB said pirate attacks worldwide had dropped 30 percent in the first half of 2005, but that the waters off Indonesia continued to be the world's most dangerous. © ABC 2005.
Pirates target shipping straits by Sebastien Berger
Bangkok - The pirates of the Malacca Straits, one of the world's most important waterways, are mounting more serious attacks than ever before after recovering from the Dec. 26 tsunami, according to a recently published report. Lloyd's of London recently added the straits to its list of war- and terrorism-risk areas, and private military companies are offering their services to escort vessels through it. About 50,000 ships use the straits every year, carrying a quarter of the world's seaborne trade, including half its tanker-shipped oil. For two months after the tsunami, when some of the world's most powerful navies were stationed in the region, there were no attacks. But an International Maritime Bureau report published July 20 says that since then, there have been 14 incidents in the straits, between Malaysia and the Indonesian island of Sumatra, and the Singapore Strait at its southern end, making the area the most dangerous in the world. Capt. Jayant Abhyankar, the deputy director of the bureau, said: "What has changed is the nature of the attacks. People are now taking the crew as hostages and demanding ransoms. That is a worrying trend." In June, eight pirates in a speedboat attacked a Thai tanker with machine guns, taking over the vessel and kidnapping the master and boatswain, who were released only after a ransom was paid. Two weeks later, 10 armed pirates hijacked a Malaysian tanker, hitting the second officer with a sword and threatening to kill the crew if it did not surrender. The alarm was raised after a sailor escaped and stole the pirates' boat. The danger has prompted Lloyd's joint war committee to designate the straits as a war and terrorism risk. Shipowners, who normally take out annual policies, will have to approach their underwriters before going through it and a premium may be charged, with potential effects on global trade. Neil Smith, the marine manager of Lloyd's Management Association, said: "The number of incidents has come back to pre-tsunami levels, if not more. Sooner or later, one of these attacks is going to go badly wrong, we fear." The move was made on advice from Aegis Defense Services, a consulting and security firm headed by Col. Tim Spicer, whose company, Sandline International, became involved in conflicts in Sierra Leone and Papua New Guinea. Dominic Armstrong, head of research and intelligence, said that pirates were from areas where Islamic extremism is known to exist. "Automatic weapons and [rocket-propelled grenades] are traditionally used by insurgents rather than pirates. The pirates are now indistinguishable from terrorists in terms of the tactics," he said. © London Daily Telegraph.
Pirates target tanker off Somalia as incidents jump by Stefano Ambrogi
Heavily armed pirates have stepped up attacks on merchant shipping along Somalia's coast, with one of the latest of nine incidents in two weeks targeting a laden oil tanker, an ocean crime watchdog said on Wednesday. The International Maritime Bureau (IMB) said gun-wielding pirates in white speed boats had fired at two large dry bulk carriers in the last week alone -- one off the northeast coast and the other off the war-torn nation's eastern coastline. It also reported an attack on a petroleum product tanker on July 26 by a band of pirates in two speed boats armed with rocket propelled grenade launchers and machine guns. "One boat came within 30 metres and fired shots at the tanker," it said. The 25,000 gross tonne tanker laden with gasoline was some 90 nautical miles of the east coast of Somalia at the time. "It's very alarming, a considerable increase (in attacks) on the last quarter -- we are losing count," said Jayant Abhyankar, deputy director of the IMB. The spree takes the tally to at least 25 attacks since the start of the year. Abhyankar said it was not clear whether the attacks were undertaken by Somali militia or criminal elements in the lawless country. "In hindsight vessels should have kept well away from the Somali coast -- the warnings have been crystal clear." In June, Somalia hit the headlines after militiamen hijacked the MV Semlov carrying 850 tonnes of rice donated to the U.N. World Food Programme for post-tsunami relief to the country. The 10 crew are still being held captive, but a diplomat mediating in the standoff said on Wednesday they could be freed soon. In a worrying new trend, the IMB said heavily armed pirates were now attacking ships further away from the coast and forcing them in shore where they were more vulnerable. "The most recent incident took place 120 nautical miles off the eastern coast. Ships are advised to keep as far away as possible from the Somali coast," the IMB said in an advisory to merchant shipping. In its six monthly ocean piracy report published in July the IMB said Somali waters had re-emerged as a serious threat to commercial shipping after a near two-year period of inactivity. Somalia has been synonymous with insecurity since warlords overran the country of approximately 10 million in 1991, carving it into fiefdoms after ousting dictator Mohamed Siad Barre. © reuter
PTP Gets RM741 Million Loan From BPIMB
Kuala Lumpur - Pelabuhan Tanjung Pelepas Sdn Bhd (PTP) receives 15-year loans totalling RM741 million from Bank Pembangunan & Infrastruktur Malaysia Bhd (BPIMB) to part finance the second phase of its development. The rest of the RM1.3 billion financing will come from internal funds and bank borrowings, said PTP chief executive officer, Datuk Mohd Sidik Shaik Osman. "We are now in the midst of talking to the banks," he said at a press conference after the signing ceremony Wednesday. The second phase of Port of Tanjung Pelepas development totalling RM1.3 billion will include berths 7 to 10 inclusive of the design, construction, equipment and port operating facilities. It also encompasses the design and construction of distripark phase B and all the related consultancy fees, he said. He said the development began in November 2002 well ahead of the original scheduled start in 2005 due to the rapid growth of the port's operations, and to date, Berth 7 and 8 with a few rows of container yard had been completed and were operational. He said the construction for Berth 9 and 10 wharf structures and Distripark Phase B infrastructures had just commenced and were expected to be complete by the middle of next year. He said PTP was expected to see growth of about five percent in terms of the volume it handled, but next year it expected a high double digit growth with addition of more cranes and new berths. In 2004, PTP achieved a throughput of 4.02 million TEU. "Last year and this year are consolidation phase for us and the growth closely correlated with the economic growth of the country," he explained. Mohd Sidik expected at least one more major investor to invest in facilities at its Pelepas Free Trade Zone, which is behind PTP, before the end of the year. He expected the high-tech company to invest around RM500 million. So far, two major companies are investing in the free trade zone, he added. Meanwhile, he expected the proposed development of petrochemical and maritime industry-related activities on a 902-hectare land adjacent to Port of Tanjung Pelepas would complement and generate extra revenue for the port. He said it would not pull away investors from Pelepas Free Trade Zone as the activities in the zone were focussed on "clean industries" while those on the land of Johor Port would be in the heavy industry. Meanwhile, BPIMB president/managing director Datuk Abdul Rahim Mohd Zin said Japan Bank for International Cooperation (JBIC) was the source of fund for the loan, adding that the drawdown would be staggered, depending on the progress of the project. He said this was the third facility granted by BPIMB to PTP, bringing the aggregate amount to RM1.891 billion. The first two finance facilities amounting to RM1.15 billion were to part finance six container berths with port facilities at PTP. BPIMB function as development bank and financing infrastructure projects. In 2004, its total income was RM1.12 billion, an increase of 27.8 percent from the previous year, while its total banking portfolio as at Dec 31, 2004 was RM12.82 billion, a growth of 25.4 percent. © 2005 BERNAMA.
Report reveals misuse of ISPS Code
TIGHTER maritime security is being used as an excuse to impede shore leave, to deny access to seafarers' welfare personnel and to discriminate against certain ethnicities, according to a follow-up report from 2001's Independent Commission on Shipping (ICONS). In the latest report, Peter Morris, who chaired the original ITF-sponsored study into ship safety, and commissioner James Bell say that although much has been done to address ship safety, security and seafarer welfare, "there is a worrying trend toward the criminalisation of mariners as a soft option for states that cannot or refuse to accept their responsibilities under the international maritime conventions". The security-related amendments to Solas have "reduced the status of the seafaring profession even further," Morris and Bell claim. "A worrying trend in this is the growing misuse of the ISPS Code provisions for setting security levels on board ships to deny access to welfare personnel." It continues: “Owners are faced with substantially increased demands for ship security, often with no basis other than race or culture, with the result that seafarers from certain countries now face unemployment simply because they have non-Christian names or they come from countries with an Islamic culture. (…) Abuses and exploitation still exist and shady owners still hide behind layers of secrecy … Unscrupulous manning agents and rogue employers still exist and the evidence seems to be that their methods are becoming more sophisticated and better concealed." Morris and Bell do agree, however, that tightening maritime security should help to eliminate fraudulent certification, questionable training establishments and dubious manning agents. © Lloyd's Register - Fairplay Ltd 2005.
Seven Rescued In Joint Exercise Off Brunei Coast by M K Anwar & CT Hj Mahmod
Bandar Seri Begawan - Seven crew members from an aircraft that crash landed off the coast of Brunei yesterday were rescued thanks to a joint effort by the Royal Brunei Air Force (RBAirF) and the Malaysian Royal Air Force (TUDM). Radio contact with the "distressed aircraft" by ground controllers was lost at about 9am yesterday morning. A Search and Rescue Centre was initiated immediately at the RBAirF base in Rimbato further determine the location of the aircraft. The RBAirF CN-235 was quickly dispatched to the last known location of the "missing aircraft". At the same time the Malaysian Air Force in Labuan also sent their C-130 aircraft to another search area. In less than an hour, flight crew from the CN-235 located the seven crew members of the "crashed aircraft" floating on a life raft. After the information was received at the command centre in Rimba, a Blackhawk helicopter was sent to the location. The Malaysian side also sent theirNuri Sikorsky S-61 helicopter to "rescue" the crew. The helicopter pilots, hovering skillfully with only a few metres separating their aircraft and the sea, successfully winched the crew from the life raft within an hour and brought them back to the RBAirF headquarters for "medical check up". The scenario was, part of the annual "Search and Rescue Exercise" (SAREX) between the RBAirF and TUDM. This was the 6th SAREX MALBRU exercise implemented by both countries' maritime forces. Last year, Malaysia was the host for the exercise. Working on their Standard Operating Procedures, the exercise was aimed at sharpening the manoeuvres as well as improve on its preparedness should any accident take place. The exercise was also aimed at fostering a better relationship and understanding between the two armed forces that have been long established. The three-day exercise officially ended yesterday. SAREX MALBRU has been held every year since 2000 and next year Malaysia will again be the host. © Brudirect.com News Courtesy of Borneo Bulletin
Some Progress Made In Maritime Issues, Says PM by R. Ravichandran
Bandar Seri Begawan - Malaysia and Brunei have made "some progress" regarding the maritime delimitation issues between the two countries, Prime Minister Datuk Seri Abdullah Ahmad Badawi said Tuesday. Abdullah said discussions on the issues were still going on among the officials and hope they would come out with some specific suggestions. "We recognised that some progress had been achieved by our officials who were involved in the discussions and we urged them to continue with the discussions. "And we hope that they will be able to come back to us with some specific suggestions for the Sultan (Brunei Sultan Hassanal Bolkiah) and I to talk before we can come to some kind of agreement," he told reporters at the end of his two-day visit for the annual leaders consultation. Replying to a question, Abdullah said that there was no time frame set to solve the issues. "But we would like this to be concluded as soon as possible," he said. On his discussions with Sultan Hassanal, the Prime Minister said it was constructive. "I would like to express satisfaction that the bilateral relation is certainly very good and would like to deepen and broaden it," he said. Abdullah said both countries were looking forward to explore new areas of cooperation such as in Islamic banking and financing which would benefit them. "All the understanding between us will further strengthen our relations," he said. © 2005 BERNAMA.
Singapore, allies to stage maritime security drill
Singapore and a dozen other nations are set to stage Southeast Asia's first military exercise in the South China Sea this week under a U.S.-led initiative to halt the spread of weapons of mass destruction. Military officers from 13 countries, including Australia, France, Germany, Japan, the United Kingdom, the United States and others, met at Singapore's Changi Naval Base to prepare for Wednesday's Proliferation Security Initiative (PSI) drill. U.S. President George W. Bush launched the initiative in May 2003 aiming to stop global trafficking of weapons of mass destruction, such as nuclear, chemical and biological arms. Singapore's Defence Minister Teo Chee Hean told a briefing the threat from the spread of such weapons was more acute than ever. "The terrorist attacks that have taken place around the world since 9-11 are not isolated acts with local objectives, but strands of a single, global web of terror," Teo said. "We now have a network of terrorists who will use the most extreme violence and destruction to achieve their objectives," he said. The scheme, in which ships and aircraft suspected of carrying WMD can be intercepted, has the support of more than 60 countries, although some legal experts say it could violate international law. Singapore itself has one of the world's busiest ports and is at the junction of the South China Sea and the Strait of Malacca, through which more than a quarter of world trade passes. Japan hosted the previous exercise in Asia last October, a drill that North Korea, which exports missiles, called hostile and provocative. The exercise, one of the largest PSI demonstrations to date, will involve 2,000 personnel from the military, coast guard, customs and other agencies from the 13 countries. Personnel will stop and board a merchant ship carrying an illegal shipment of chemicals destined for an entity of proliferation concern. The vessel would then be escorted to Singapore. Malaysia, Pakistan, Brunei and Vietnam are so far the only Asian countries that have plans to observe the exercise, the 17th to be held since the PSI was launched in 2003. © AlertNet news, Reuters.
Singapore revises competition act
SINGAPORE has published its revised competition guidelines, but has yet to decide on granting block exemptions for agreements among shipping companies on 'price-fixing' activities. “We understand the EU is reviewing the exemptions and we are currently studying the matter,” a spokesman for the Competition Commission of Singapore told Fairplay. The CCS, which was set up in January, is taking into account submissions from both the shipping industry and the shippers’ body. The Singapore National Shippers’ Council has opposed exemption, describing agreements on freight rates as monopolistic practices. However, the Singapore Shipping Association stressed the economic benefits of international shipping. The block exemption orders will be released for consultation before adoption. Provisions related to anti-competitive agreements are scheduled to come into force from 1 January 2006. © Lloyd's Register - Fairplay Ltd 2005.
Singapore seeks war risk talks
SINGAPORE Shipping Association (SSA) has offered to set up talks with members of the Joint War Committee (JWC) of the Lloyd’s Market Association on designating the Malacca strait as a war risk area. The SSA today endorsed a decision by the foreign ministers of Indonesia, Malaysia and Singapore to reconsider the JWC decision to ask insurers to charge higher war risk premiums for ships transiting the strait. SSA president Teo Siong Seng pointed out that piracy is in fact declining, according to statistics of the International Maritime Bureau, and the vast majority of attacks in the strait are against small, coastal vessels. “There has been no report to the SSA of a terrorist attack on merchant shipping in the Malacca strait, let alone an Al Qaeda inspired action,” Teo said. SSA executive director Daniel Tan has urged marine underwriters not to impose additional premiums on shipping in the Malacca strait until there has been ‘full consultation’ with all interested parties, including the SSA membership. © Lloyd's Register - Fairplay Ltd 2005.
Thailand may join Malacca Strait patrols by Tiarma Siboro
The three littoral states - Indonesia, Malaysia and Singapore planned to invite Thailand to participate in the joint patrol to secure the Strait of Malacca, recognizing that more "eyes" are required to guard the busy international shipping lane. Malaysian Navy Chief of Staff Adm. Dato Ilyas bin Haji Din said here on Monday that the invitation for Thailand to join the coordinated patrol would be officially discussed at a meeting of high-ranking military officials from the three countries in Batam, Riau Islands, sometime in the next two weeks. "During the recent meeting in Kuala Lumpur, there were new initiatives that we have reached, including the invitation for Thailand to guard the northern side of the Strait of Malacca," Ilyas told journalists. He was referring to the meeting in Kuala Lumpur last week, when the military chiefs of Malaysia, Indonesia and Singapore agreed to enhance cooperation in securing the Strait of Malacca. "We have also set up a working group to explore in detail the concept of an 'eye in the sky' that my country had proposed ... and I guess these are considered as new initiatives that we have concluded in the recent meeting in Kuala Lumpur," Ilyas added. The 'eye in the sky' is a security concept that emphasizes aerial surveillance of the territory of the three countries. Under the concept, Malaysia said that security personnel of Malaysia, Indonesia, Singapore and Thailand will fly aboard an aircraft to monitor security along the water way. Ilyas said the concept was necessary because an aircraft could mobilize faster than a patrol boats to tackle threats and hunt down criminals in the strait. Ilyas' visit to Indonesia was aimed at improving cooperation in the field of defense and security, especially in the sea territory. Accompanied by Indonesian Navy Chief of Staff Adm. Slamet Subiyanto, Ilyas met with Indonesian Minister of Defense Juwono Sudarsono on Monday. Last week, a meeting was held in Batam and attended by the foreign ministers and state officials of Malaysia, Indonesia and Singapore. During the forum, they agreed to welcome "any cooperation with ASEAN countries and the strait's users in a bid to improve security and safety along the maritime territory." In the wake of terrorism issues, the United States has offered assistance to guard the Strait of Malacca, but it will probably have to wait for further arrangements by the three littoral states on the participation of "other foreign countries". Apart from the United States, other countries, including Japan, China and South Korea, have also expressed interests in helping to provide security along the strait, where their ships that carry crude oil and supplies regularly pass. The Strait of Malacca, linking the Indian Ocean with the South China Sea, is a narrow 600-kilometer stretch of water used by more than 50,000 commercial ships each year, carrying more than one-third of the world's shipping trade and half of the world's crude oil shipments. © The Jakarta Post.
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