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Malaysia's MISC sees soft shipping rates ahead
MISC Bhd expects freight rates for crude oil to remain soft over the next two years as competitors put more new tankers to sea. MISC earns 90% of its profits from shipping oil and liquefied natural gas (LNG). A subsidiary of Petroliam Nasional Bhd (Petronas), the world's largest carrier of LNG. LNG is shipped under long-term contracts, but MISC still faces significant exposure to oil freight rates, with crude oil tankers accounting for 40% of its profits. "We expect softer petroleum freight rates on the back of additional replacement capacity coming onstream and minimal scrapping taking place ahead of the 2010 mandatory scrapping deadline," MISC chief executive Shamsul Azhar Abbas told Reuters in e-mailed answers to questions. The International Maritime Organisation requires single hulled tankers to be phased out by 2010 to reduce the risk of oil spills. But the move has yet to make a dent in the world's fleet of oil tankers as more new tankers are launched. The Baltic Exchange's Dirty Tanker Index stands about 60% lower than its historic peak in November 2004. Analysts have said a glut of new tankers expected in the next three years could depress rates even further and hurt profits of shippers such as MISC. Shamsul said container rates were also likely to weaken as shipping capacity outstripped growth in container traffic. The container business, which accounts for nearly 30% of group revenue, made a loss for the six months ended Sept 30. But MISC's core LNG business is likely to cushion some of the blow from weak freight rates. "All our LNG carriers are on medium to long-term charters whilst 42% of our business in petroleum is on term contracts," Shamsul said. Shamsul declined to give a profit outlook for the current year but noted that operational profits had increased slightly. MISC, owned 62% by Petronas, posted an 11% rise in net profit for its second quarter to Sept. 30, helped by its engineering unit, which builds offshore oil-and-gas platforms. Shamsul said the unit was well placed to win more projects. MISC's net profit fell 38% to RM2.9 billion in the year ended March 31, 2006 from the previous year's record RM4.8 billion. Profit to end-March 2007 is forecast to drop further to US$2.6 billion (RM9.13 billion), according to Reuters Estimates. Shamsul said the oil and gas industry should remain buoyant over the next five years because of higher oil prices and rising energy demand from emerging economies such as China and India. MISC is looking for acquisition opportunities in its core energy-related business to help it grow, Shamsul said, but he cautioned that shipping assets were still expensive. "We would bid for time and only move in when the price is right," he said. "We intend to further expand and establish our presence in the Mediterranean, Africas, Asia and Europe." MISC's 22 LNG tankers account for about a 10th of total world LNG capacity. It plans to add seven tankers to its fleet by end-2008, boosting capacity to 3.6 million cubic metres. The LNG business accounts for 54% of MISC's earnings. MISC has a fleet of 45 petroleum tankers, including eight very large crude carriers. Three more VLCCs are on order. Shares of MISC, Malaysia's fourth-biggest listed firm valued at US$9.3 billion, fell 12% in 2006 compared with a 22% gain in the main Kuala Lumpur Composite Index. The stock trades at nearly 13 times forecast earnings, compared with 12 times for Belgium's Exmar and 15 times for Norway's Golar LNG, its two main LNG-carrier rivals in the region, according to Reuters Estimates data. © Reuters.
Sea rescue drama: swift action saves 10 after boat capsizes by Joniston Bangkuai, Julia Chan, Alang Bendahara and Lydia Gomez
Sandakan - Ignoring a warning of strong winds and choppy seas proved fatal as a boat carrying tourists to Pulau Libaran capsized, killing a Malaysian woman. Prompt action by the marine police, the navy, maritime personnel, police air unit and General Operations Force resulted in four Australians, two Britons, a New Zealander and three Malaysians being rescued. Mariamah Kawari, 40, who was married to a tour agent, was found by villagers in the waters off Tanjung Pisau. However, she died later. Malaysian tour guide Robert Ernest, 26, was found alive seven hours later treading in the waters off Pulau Libaran. Two of the tourists swam 4km to Tanjung Pisau and alerted the authorities. Those rescued were Suzanne Cliston, Megan Jones, Kimberly Cinpoy and Ross Webber from Australia, and Russel Holdsworth, 49, and Christina Grand, 58, of Britain. The New Zealander has not been identified. They were treated for minor injuries and exhaustion. The skipper of the boat, Empang Chekoi, 57, and another tour guide, known only as Wahid, 27, were rescued from Pulau Libaran after they too swam to the island. The boat had overturned, leaving only its keel bobbing centimetres above the water and the tourists had to cling to it until help arrived. Federal police marine commander Datuk Jalaluddin Abdul Rahman said they were informed two hours after the incident and immediately dispatched their boats. He said the Royal Malaysian Navy, Malaysian Maritime Agency, General Operations Force and the police air wing also sprung into action and found the overturned 15-metre-long boat. The boat, with two outboard engines, left Sandakan for Pulau Libaran on a tour organised by the Sabah-based Wildlife Expeditions. It was a two-hour journey. An hour-and-half into the journey, the boat got into trouble as the waves lashed it during a thunderstorm, causing it to go into a spin before capsizing. District deputy police chief Superintendent Mohd Zain Yaakub said the two tourists who had swum back to Tanjung Pisau had alerted the authorities. They were brought to the mainland by boat. He said the rain and huge waves made the rescue difficult but the search and rescue was successful although one life was lost. "Despite darkness approaching, we continued the search for the tour guide and found him at 7pm," he added. Five of the tourists booked into Sabah Hotel in Sandakan. They declined to speak to the Press. A doctor was sent to their rooms to check their condition. The three other tourists are believed to be on Pulau Libaran after they decided not to travel to the mainland by boat in the dark. © 2006 NST Online.
Singapore powers ahead
Singapore – Singapore’s maritime sector continued to power ahead with container volumes, bunker sales and the ship registry maintaining the momentum of recent years. PSA's terminals and Jurong port in the west of the island together handled 24.8M teu in 2006, nearly 7% more than in 2005, transport minister Raymond Lim disclosed yesterday. Separately PSA announced today that its Singapore terminals had handled 23.9M teu in 2006, a growth of 7.6% over the 2005 throughput. The numbers place Singapore well ahead of Hong Kong, stamping its status as the world’s biggest container port in terms of volumes handled. Fairplay understands that Hong Kong, which conceded top place to Singapore in 2005, handled 23.4M teu in 2006. Bunker sales rose by 11% to 28.4M tonnes while the ship registry grew 5.6% to 34.8Mgt. Citing Singapore’s progress as a base for shipping in Asia, Lim noted that the UNCTAD report for 2006 placed Singapore as the “10th most important maritime nation” in terms of vessel tonnage controlled. The government will continue to support shipping, the minister affirmed. © Lloyd's Register - Fairplay Limited 1999 - 2006.
US warship 'Trenton' to join Indian fleet by Chidanand Rajghatta
Washington - Nearly two centuries after Bombay’s famed Wadia family built HMS Minden — the ship on which the American national anthem Star Spangled Banner was written — history will sail a full circle later this month. The US Navy is all set to hand over Seattle-built USS Trenton, an amphibious transport warship, to the Indian Navy. It will be the first American-made vessel to join India’s growing blue water fleet. A crew of more than 300 Indian Navy personnel is already training in Norfolk, Virginia, to take charge of Trenton in a formal ceremony on January 17, when the ship will be officially decommissioned from the US Navy. It will then set sail for India, where it is likely to be inducted into the Eastern Naval Command in Visakhapatnam. When introduced into the Indian Navy in mid-2007, the 17,000-tonne Austin-class platform, formally called a Landing Platform Dock or LPD, will be India’s second-largest warship, second only to the 28,000-tonne Hermes-class aircraft carrier INS Viraat. Built by Lockheed and commissioned in 1971, the amphibious ship has a complement of 28 officers and 480 men, and can transport nearly 1500 marines. Although Trenton cost more than $400 million to build, New Delhi is buying it at a bargain basement price of around $48 million — which includes four mechanised landing craft and other bells and whistles — under a US Foreign Military Sales (FMS) program. New Delhi believes the ship is good for another 15 years. The Indian Navy is also looking to procure six SH-3 Sea King helicopters to operate from the 173-metre-long vessel that has seen action in Somalia, Liberia and Lebanon among other places, landing US troops and rescuing American citizens. Indian officials say Trenton, which is expected to be renamed INS Jalashva (Sanskrit for seahorse), will provide the Navy with enhanced amphibious capability. Besides landing troops during war and rescue operations, it can also function as a command and control platform during offshore and mid-sea mishaps. The Trenton transaction marks an unusual and little known naval connection between two distant countries that are now heading towards a strategic military partnership. In 1810, the Indian company Jamshedji Bomanji Wadia built the HMS Minden at the Duncan Docks in Bombay, the first Royal Navy ship built outside the British Isles. It was on Minden that Francis Scott Key is said to have written the poem ‘The Defense of Ft. McHenry,’ later renamed ‘The Star-Spangled Banner’ and adopted as the American national anthem. Indian-made ships were frequent visitors to the US in the 18th and 19th century and American sea-farers visited Bombay and Surat to see the Wadias, India’s traditional shipbuilders, at work. Trenton is named after the capital of New Jersey. In another coincidence, Kris Kolluri, an India-born immigrant became the governor of New Jersey for just one day last week (to stand in for an out-of-town governor), the first person of Indian origin to make the grade. Although a small deal in financial terms, the Trenton transfer is said to presage both greater strategic interplay and military transfers between the US and India. Some Washington pundits see India as an American partner in patrolling the vital sea lanes from the Gulf of Hormuz to the Straits of Malacca. © 2007 Times Internet Limited.
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ASEAN reinforces international cooperation vs. terrorism
Cebu - A renewed and strong commitment of the Association of Southeast Asian Nations (ASEAN) leaders takes a higher level of cooperation to fight terrorism. The ASEAN leaders are one in saying that terrorism, in all forms and manifestations, is a serious threat to the international peace and security and a direct challenge to the attainment of peace, progress and prosperity of the ASEAN and the realization of ASEAN Vision 2020. ASEAN member-nations are one in carving counter-terrorism measures and strategies to ensure security and peace in the region. Foreign Affairs Secretary Alberto C. Romulo announced that advancing their collective security agenda, ASEAN and Japan are moving towards closer collaboration in counter terrorism and maritime security. At the ASEAN-Japan Ministerial Meeting here, Romulo underscored the importance of sustaining initiatives for regional security, particularly the ASEAN-Japan Counter-Terrorism Dialogue which was launched in June last year. “Greater prosperity and progress can only be achieved for all the region’s stakeholders if we ensure the necessary conditions of peace and security,” Romulo said. “ASEAN and Japan’s agreements to expand counter-terrorism and maritime security are important moves in advancing our common security agenda” Romulo added. ASEAN and Japan will be holding their second Counter-Terrorism Dialogue in Malaysia in 2007. On the other hand, although no definite date yet, Indonesia will host a convention on counter-terrorism in March this year among the six original member countries of the ASEAN – Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand. Australia, an ASEAN dialogue partner, has been invited to attend the convention. Romulo said Indonesia, which is taking the lead in the seven-nation confab to be held in Jakarta “will get together to a meeting of military intelligence and other agencies involved in counter-terrorism. Indonesia, like the Philippines, has its own share of headache in fighting the terror group, Jemaah Islamiyah (JI), as in the case of Indonesian terrorist leader Dulmatin, who is in hiding on the Sulu Island since last year. Further, Romulo said the region’s archipelagic configuration with “its much traveled seas, straits and sea lanes expose us to numerous hazards.” With this, he explained that cooperation to secure our sea lanes is rightly a major initiative. In recent development, pursuit against terrorists in the country is taking ground as President Gloria Macapagal-Arroyo declared, “we are winning the war against terrorism.” This was announced by the President via satellite on the 2nd day of the 12th ASEAN Summit, after receiving a detailed report from Armed Forces Chief Gen. Hermogenes Esperon Jr., on how a combined sea-land air military force killed five Abu Sayyaf and one JI terrorists in a daring battle in the coastal town of Balimbing in Tawi-Tawi, the southernmost island province of the country The fatality was identified as Gofran, alias Abu Samur, the right hand man of Indonesian terrorist leader Dulmatin. The President congratulated the military for its successful campaign against terror groups. © 2005 Philippine Information Agency.
Asian leaders sign energy security pact
Asian leaders have signed an energy security pact that seeks to reduce oil dependency and greenhouse gas emissions in some of the most polluted countries on the planet, but offers no concrete targets. Southeast Asian leaders along with the heads of China, Japan, South Korea, India, Australia and New Zealand held their second East Asia summit in a more constructive atmosphere than last year as Beijing and Tokyo used the meeting to further mend ties. The 16 leaders urged North Korea to abandon nuclear weapons and respond to humanitarian concerns, including abductions of Japanese in previous decades. Japan had lobbied heavily for the summit to address the issue of the dozens of Japanese that North Korea abducted in the 1970s and 1980s. But President Gloria Macapagal Arroyo told a concluding news conference the leaders stressed "we should coax North Korea, rather than use language of animosity" on the issue. While Northeast Asian diplomacy was a feature of the summit, the meeting's legacy is an energy security pact that seeks to reduce the region's dependence on costly crude oil and help stave off climate change. Unlike the European Union, however, which last week unveiled ambitious energy proposals to cut greenhouse gas emissions by at least 20 per cent, the leaders offered no concrete targets. The pact calls for encouraging the use of biofuels, hydropower, or nuclear power to reduce dependence on conventional fuels and seeks private sector investment in energy infrastructure. Trade took a back seat, with China and ASEAN wary of creating yet another trade bloc in the region, officials said. The head of the Asian Development Bank (ADB), Haruhiko Kuroda, urged East Asian countries to create such a bloc to pull 750 million of their citizens out of dire poverty. "To maximise the potential benefits of free trade agreements, East Asia has to chart a clear roadmap to establish a region-wide free trade area (FTA)," Kuroda told the summit in the central Philippines. Japan proposed an East Asia FTA in an area stretching from India to New Zealand and accounting for about a fifth of world trade. Officials at the summit said that while the idea is being studied, any such bloc is far into the future, if at all, and ASEAN's priority is to sign FTAs with individual countries represented at the summit. With world trade talks stalled since July and time running out to revive them, countries around the Pacific rim have agreed or are trying to hammer out a "noodle bowl" of around 50 local FTAs. Both Japanese Prime Minister Shinzo Abe and China's Premier Wen Jiabao are vying to influence ASEAN as it becomes a more integrated political and economic bloc. Abe highlighted Tokyo's desire to play a more prominent security role in the region by agreeing to support Southeast Asian maritime security. China and ASEAN on Sunday agreed to slash barriers on trade in services such as telecoms and transport, which Wen said is a "crucial step" toward creating the world's most populous free trade area. "With the ASEAN moving forward towards firm accords on its own charter, security, overseas workers, and trade, the prospect for the region becoming a formidable bloc in the world is well within reach," Arroyo said. The leaders, who also endorsed a bird flu prevention "road map" that will share best practices, are anxious not to develop into a glorified chat room. They wondered after last year's inaugural meeting if it was worth having another, Arroyo said. "What has made it successful going into the second year is that it was not just a talk shop. We were talking about concrete areas of cooperation and most specifically energy security." © 2007 Reuters.
BIMP-EAGA commitment
The following joint statement was issued last night after the third Brunei Darussalam-Indonesia-Malaysia-Philippines-East Asean Growth Area (BIMP-EAGA) Summit in Cebu City, Philippines.
1. We, the leaders of the Brunei Darussalam-Indonesia-Malaysia-Philippines-East Asean Growth Area (BIMP-EAGA) had a productive meeting on January 12, 2007. We reaffirmed our commitment to further deepen our cooperation within the overall objective of narrowing development gops in Asean and for the realisation of the Asean Community.
2. We exchanged views on regional and international issues of mutual concern and on deepening the cooperation among the BIMP-EAGA member countries in the economic, security, energy, environment, and social and cultural areas, and have resolved to address various issues and concerns facing BIMP-EAGA's cooperation.
3. We were encouraged with the progress achieved in the implementation of the BIMP-EAGA Roadmap to Development 2006-2010, including the initiative to facilitate the accelerated implementation of the flagship projects; completion of the BIMP-EAGA database on cross-border trade, investment and tourism; development of the implementation mechanism for the Roadmap; preparation of the action plan; conduct of joint trade and tourism promotion activities; finalisation of the guideline on pilot-testing Asean measures/programme in BIMP-EAGA; and forging of stronger partnership with our Development Partners and international development agencies.
We, therefore instructed our ministers and senior officials to more intensively pursue, monitor and review the implementation of all the programmes and projects in order to ensure attainment of the BIMP-EAGA development goals and targets set forth in the Roadmap.
4. We recognised the importance of transport connectivity towards accelerating the economic development in the subregion. We commended the initiative undertaken by the transports ministers in improving air travel in BIMP-EAGA with the signing of the Memorandum of Understanding (MoU) on Expansion of Air Linkages including the granting of fifth freedom traffic rights for passenger and cargo services in the airports of (I) Bandar Seri Begawan, Brunei Darussalam; (II) Balikpapan and Pontianak, Indonesia; (III) Kota Kinabalu and Kuching, Malaysia; and (IV) Davao City and Zamboanga City in the Philippines.
We also expressed our support for the transport ministers' decision to adopt a subregional multilateral or bilateral interstate transport and transit transport agreements in order to further facilitate cross-border movement of people and goods.
We tasked our transport ministers to implement measures towards promoting an efficient and integerated sea transportation system in the subregion including the designation and establishment of priority routes linking the focus areas as well as improving the maritime transport infrastructure facilities.5. We acknowledged the role of the tourism sector, as one of the primary users of transport services in ensuring the sustainability of existing transport linkages. We directed our tourism ministers to strengthen their marketing programmes and to aggressively promote BIMP-EAGA as a single tourism destination.
6. We recognised the initiative taken towards enhancing cooperation among our customs, immigration, quarantine and security (CIQS) agencies. We also noted the efforts undertaken to simplify, mutually recognise and harmonise CIQS processes to facilitate intra-EAGA movement of people and goods at initially designated ports.
We directed our ministers responsible for CIQS to work on measures to intensify cooperation to facilitate trade by initially establishing one-stop CIQS facilities at designated entry points.
7. We urged the private sector and particularly called on the BIMP-EAGA Business Council to intensify their cross-border trade, investment and tourism activities. In this regard, we called on the Asian Development Bank (ADB) to assist in establishing a BIMP-EAGA Private Sector Development Fund to support enterprise and business development in the subregion.
8. We underscored the pivotal role of our local governments in realising the goals of BIMP-EAGA cooperation and the importance of mainstreaming sub-regional level policies and initiative within the local governments. We, therefore welcomed the successful convening of the First BIMP-EAGA Chief Ministers' and Governors' Forum in Kota Kinabalu on November 9, 2006. We called on our chief ministers and governors together with the private sector to formulate and adopt a common strategic plan of action to further accelerate and deepen economic cooperation and integration in BIMP-EAGA.
9. We welcomed the Heart of Borneo (HoB) initiative to establish a network of protected areas, productive forests and other land-uses, that transcends across the borders of Brunei Darussalam, Indonesia and Malaysia, and which aims to maximise transboundary linkages, promote the expansion of the Protected Areas, maintain forest connectivity, and ensure sustainable land use practices.
We will ensure on effective management, development and conservation of the areas, which they will designate as the HoB, within their own respective legal and institutional frameworks, with full respect to each country sovereignty and territorial boundaries and without prejudice to the ongoing negotiations on land boundary demarcation.
We note with appreciation the assistance being given by the Worldwide Fund for Nature (WWF) in the planning and implementation of the HoB initiative. The declaration/document on the HoB initiative is attached as Appendix 1.
10. We were pleased to note that our collaboration with Development Partners, in particular with the Northern Territory of Australia had been further strengthened. We welcomed the cooperation with the People's Republic of China in the areas of agriculture, infrastructure, natural resources exploration, tourism and human resources development.
11. We urged BIMP-EAGA to capitalise on the existing Asean Economic Community initiative in order to further strengthen its sub-regional agenda. In this regard, we agreed to have BIMP-EAGA as the test-bed for accelerating the implementation of relevant Asean agreements to contribute towards acceleration of Asean economic integration. We asked the Asean Secretariat to assist and to collaborate with the BIMP-EAGA institutions in implementing the pilot-testing measures, including but not limited to sharing its technical expertise and helping in mobilising related resources. We directed the Asean Secretariat to assist in promoting the BIMP-EAGA development agenda among Asean's Dialogue Partners and at regular Asean meetings and foras as well as to secure funds for BIMP-EAGA programmes and projects.
12. We thanked the Asian Development Bank and the German Technical Cooperation (GTZ) for the unwavering support extended to BIMP-EAGA. We requested ADB, as Regional Cooperation Advisor, to strengthen its provision of technical and advisory services to deepen regional cooperation and integration in BIMP-EAGA by sharing and transferring knowledge, experience and best practices gained in its support of other growth areas and the assist in mobilising resources for the implementation of the BIMP-EAGA Roadmap initiative. We requested GTZ to continue providing institutional strengthening and capacity building support to BIMP-EAGA institutions, and to assist in the implementation of crossborder pilot projects in trade, investment and tourism.
13. We acknowledged with appreciation the efforts of the local private sector media in increasing public awareness on BIMP-EAGA. We encouraged the BIMP-EAGA Media and Communications Association (BEMCA) to intensify their efforts in disseminating positive information on BIMP-EAGA.
14. Finally, we directed all our relevant ministries at the national government level to undertake necessary policy improvements and support including necessary resources for EAGA's priority development agenda as stipulated in the Roadmap. © 2007 Brunei Press Sdn Bhd.
China, Vietnam agree to complete border markings before 2008
Beijing - China and Vietnam have agreed to speed up the process on the demarcation and erection of border markers along their land boundaries before 2008 and find ways for the joint exploitation of the resource-rich and strategic South China Sea. These decisions were taken during the just-concluded 13th round of border negotiations between China and Vietnam in Nanning, the Capital city of China's southern Guangxi Zhuang Autonomous Region from Thursday to Saturday. Chinese Vice Foreign Minister Wu Dawei and his Vietnamese counterpart Vu Dung co-chaired the border negotiations. The two sides reviewed the progress achieved since the last round and made further arrangements for the next phase of work, Xinhua news agency reported. The two sides agreed to speed up the process on the demarcation and erection of border markers along their land boundaries in order to complete the task before 2008, it said. The two sides will carefully investigate joint exploitation of the South China Sea. They also agreed to push forward negotiations on the demarcation and joint exploitation of the maritime space at the entrance to the Beibu Gulf. China and Vietnam had agreed in August last year to accelerate oil and gas exploration and extraction as well as allow fishing in the disputed waters of the Beibu Gulf. Despite ideological and cultural similarities, China and Vietnam have historically had uneasy relations. The two had also engaged in a bloody war in 1979. The two countries normalised diplomatic relations in 1991. Hanoi and Beijing have clashed in the past over over-lapping sovereignty claims in the South China Sea, as well as to clusters of oil-rich islands. The last verbal spat between Beijing and Hanoi occurred early this month when China summarily dismissed Vietnam's protests over erection of boundary markers by the Chinese side. The erection of structures marking the base points of China's territorial sea on the Xisha Islands is an issue within China's sovereignty, and other countries have no right to intervene, Chinese Foreign Ministry spokesman Liu Jianchao said on January four. "China has indisputable sovereignty over the Xisha, Nansha Islands and adjacent islands. And we have all historical and legal evidences needed to prove this," he said in response to a question on Vietnam's protest. Liu made the remarks when commenting on an question that Vietnam had accused China of infringing on its sovereignty by erecting these structures. He said that according to the United Nations Convention on the Law of the Sea and the Law of the People's Republic of China on the Territorial Sea and the Contiguous Zone, the Chinese Government issued the base points on the Xisha Islands in 1996. Territorial disputes on the resource-rich South China Sea have emerged among China, Vietnam, the Philippines, Brunei and Malaysia since the 1970s, where each country claimed part of the ownership. © 2006 The Hindu.
Malaysia to host counter-terrorism dialogue by R. Ravichandran
Cebu City - Malaysia will host the Asean-Japan Second Counter-Terrorism Dialogue this year. Philippine Foreign Secretary Alberto G. Romulo, however, said today that the date had not been decided. The dialogue was launched last June. He said the Asean-Japan Ministerial Meeting in Cebu yesterday, which was also attended by Malaysian Foreign Minister Datuk Seri Syed Hamid Albar, underscored the importance of sustaining initiatives for regional security, particularly the Asean-Japan Counter-Terrorism Dialogue. "Greater prosperity and progress can only be achieved for all the region's stakeholders if we ensure the necessary conditions for peace and security," Romulo said. He said Asean and Japan's agreements to expand counter-terrorism and maritime security were important moves in advancing their common security agenda. Romulo emphasised capacity-building and the provision of modern equipment, ships and training as major components of Asean-Japan maritime security cooperation. Asean and Japan, a dialogue partner of the regional grouping, will commemorate 33 years of collaboration and cooperation this year. In 2003, the 10-member regional grouping and Tokyo signed the Declaration for the Dynamic and Enduring Asean-Japan Partnership in the New Millennium. © 2007 BERNAMA.
National maritime conference to come up with reform plan by Presenna Nambiar
The Malaysian Bar Council and the Attorney General's Chambers are jointly organising a conference in March to look into current issues affecting the maritime industry, and to come up with a reform plan. The National Maritime Conference will be held at the Shangri-La Hotel Kuala Lumpur from March 8 to 10 2007. Organisers expect about 300 to 350 participants at the conference themed "Malaysia As A Maritime Nation: Meeting Expectations". Co-chair of the National Maritime Conference, Sitpah Selvaratnam, said the conference aims to revisit the progress made so far in the maritime industry, and critically appraise the areas in need of enhancement. She said the aim is also to prioritise maritime reform to achieve maximum economic returns, while ensuring the safety and security of the maritime sector. The conference is targeted at various segments of the local maritime industry, including shipowners, shipping agents, forwarders, port operators, shipyards, oil majors, insurers, financiers, logistic providers, judiciary, lawyers, port authorities, regulators, and security agencies. At the end of the conference, a collective maritime action plan to develop the industry further is expected to take shape. Sitpah emphasised the need for a collective effort by all players in the industry, encompassing regulators, policymakers and the members of Malaysia's maritime industry, in order to achieve the expectations of being a maritime nation. Scheduled speakers include Attorney General Tan Sri Abdul Gani Patail, NCB Holdings Bhd chairman Datuk Seri Ahmad Sarji Abdul Hamid, director-general of Marine Captain Ahmad Othman and Malaysian Shipowners Association chairman Nordin Yusof. © The New Straits Times Press (Malaysia) Berhad.
A new security arc in East Asia by William R. Hawkins
Just before the 109th Congress adjourned, it passed H.R. 5682, the Henry J. Hyde United States-India Peaceful Atomic Energy Cooperation Promotion Act. The bill was named after its sponsor, the retiring Republican chairman of the House International Relations Committee. The conference report on the bill passed the House by a comfortable bipartisan 330-59 margin, then passed the Senate by unanimous consent. The legislation amends the 1954 Atomic Energy Act sufficiently to allow a deal signed by President George W. Bush and Indian Prime Minister Manmohan Singh last March to go into effect. The agreement is a key piece in the building of closer political, trade and strategic cooperation between the two major democratic powers. It is also a strong rebuttal to criticism of the Bush administration for allegedly alienating allies and isolating America in world affairs. The deal had sparked some early opposition from the arms control community. Former President Jimmy Carter denounced the agreement, and Sen. Joseph Biden, Ranking Democrat on the Senate Foreign Relations Committee (and the incoming chairman) raised some initial concerns. But strategic logic prevailed in the end, with Sen. Biden eventually co-sponsoring with committee chairman Sen. Richard Lugar the Senate’s version of the bill. The week before Congress took its final action. The Bush administration sent the largest trade mission in U.S. history to India, with 186 companies participating. According to the Commerce Department, medical, information technology, energy, and telecommunications companies were heavily represented. Five prime defense contractors, Boeing, Lockheed Martin, Pratt & Whitney, Raytheon and United Technologies were also in the contingent. Earlier in the month, American officials pitched a major sale of fighter aircraft to New Delhi. India’s Defense Ministry plans to buy 126 multi-role medium-range tactical aircraft, a deal worth more than $9 billion. India plans to spend $10 billion a year for the next decade to upgrade its military forces, and buying American systems would be good both economically and strategically. The two powers are also working to implement their 2005 Maritime Cooperation Framework to improve maritime security; protect the flow of commerce; prevent proliferation of weapons of mass destruction, combat piracy and other transnational crimes; and address emerging threats. India sits between radical Islamic states to the west (Pakistan and Iran) and a rising China to the east, all of which have or are developing nuclear weapons. The agreement with the U.S. only covers peaceful, civilian cooperation, but knowledge cannot be isolated, which is the legitimate concern the Bush administration has about Iran. So it must be accepted that India's nuclear capabilities will be advanced across the board. India will place all future civilian nuclear reactors, and 14 of its current 22 reactors, under control and inspection of the International Atomic Energy Agency, but will not sign the Non-Proliferation Treaty. It will continue its moratorium on nuclear weapons tests, but it will not stop building nuclear weapons or the means to deliver them. As Secretary of State Condoleezza Rice told the Senate during hearings on the deal, “India would never accept a unilateral freeze or cap on its nuclear arsenal.” Increasing instability in Pakistan, where pro-Taliban elements are again in the ascent; the temptation of Iranian oil and gas to an energy-hungry India; and the rising ambitions of China, all argue strongly for America being able to present itself as a reliable security and economic partner to India. Washington and New Delhi are being drawn together by a common set of threats. On December 2, India’s top naval commander, Admiral Sureesh Mehta, said at a press conference, “We are ringed with states which may have a favorable disposition to China...They are looking ahead and we also need to look ahead.” Singh said China wants access to the Indian Ocean and its littoral states as friends or possibly client states. Pakistan is building its Gwadar Port with Chinese help, and China has leased bases in Myanmar’s Coco Islands, giving it access to the Bay of Bengal. In response, India is increasing its operations in the Andaman and Nicobar islands to monitor Chinese activities in the Indian Ocean. China is seen as a long-term threat all along the Pacific Rim as it acquires advanced aircraft, new submarines, and surface warships equipped with long-range cruise missiles and undersea mines. China is making special efforts to acquire long-range target-acquisition systems, including optical satellites and unmanned aircraft. The Pentagon’s 2006 annual report on The Military Power of the People’s Republic of China sums up the situation nicely: “China continues to dispute sovereignty claims in the South and East China Seas and is preparing for potential conflict over Taiwan. Chinese companies continue to play a negative role in the proliferation of advanced military capabilities, and continue to supply countries such as Iran with critical military technologies. Beijing has refused to join the Proliferation Security Initiative. China has not fully leveraged its close ties with Pyongyang to stem North Korean nuclear ambitions, and continues to maintain or strengthen political, economic, and military ties with Iran, Sudan, Burma, Zimbabwe, Cuba, and Venezuela, undercutting international efforts to influence those states.” China’s rise has set off alarms in Tokyo as well, drawing the U.S.-Japan alliance closer at the other end of Asia. This has given rise to a new balance of power configuration, what Taro Aso, Japan’s Minister for Foreign Affairs, outlined on November 30. “I firmly believe that Japan must make its ties even firmer with friendly nations that share the common views and interests, namely of course the United States as well as Australia, India, and the member states of the EU and NATO, and at the same time work with these friends towards the expansion of this "arc of freedom and prosperity.” It should also be an arc of security. Japan will also benefit from the U.S.-India nuclear deal as Toshiba now owns Pittsburgh-based Westinghouse Electric, a leading American firm in the design and construction of nuclear reactors. Prime Minister Manmohan Singh recently made a state visit to Japan. At a joint press conference with Japanese Prime Minister Shinzo Abe on December 15, he proclaimed “As two vibrant democracies sharing common values and aspirations, we have much to contribute to each other. We have converging political, economic and strategic interests....India and Japan are natural partners....To underline this point, we have already agreed to establish a Strategic and Global Partnership. It will be our endeavor to strengthen our political and diplomatic coordination on bilateral, regional and global issues, enhance our defense relations, undertake comprehensive economic engagement, to widen cooperation in science and technology and to seek a major expansion of people-to-people contacts. India-Japan relations are today poised for a transformation and we have resolved to seize this historic moment.” It is also a historic moment for the United States to strengthen old alliances and build new ones, so as to extend America’s role as both an Asian and a global power well into the new century. [William R. Hawkins is Senior Fellow for National Security Studies at the U.S. Business and Industry Council]. © U.S. Business and Industry Council.
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Are we ready for a global meltdown? Elizabeth John
Monstrous storms, ravaging seas and molten heat. The scenario for these climate changes may seem like the plot of a Doomsday movie but there are three reasons why they must be taken seriously. IT’S pretty complicated, but here are three reasons why climate change is the hottest topic around: Food, trade and a rising sea. If a warming world brings more droughts to the countries we buy our food from, what will we eat? If once frozen seas thaw, creating new sea lanes and trade routes, what happens to our ports? And when ice melts, will our thriving coastal communities and sun-kissed beachfront hotels be gobbled up by rising seas? These are the worries many countries have been wrestling with, says meteorology professor Datuk Dr Azizan Abu Samah. And as science has grown more certain and the ifs of climate change have turned into when, they have begun strategising and preparing. "In terms of climate change awareness, we’re quite low. If we don’t start strategising now, we’ll be left behind," he says of Malaysia. We import most of our food, says Azizan, and that doesn’t bode well for food security. This is especially so when the countries we import from could be adversely affected by climate change. Then, there are trade and economic issues to consider. South Korea and Japan have been closely studying the melting of Arctic ice that could open up the Northwest Passage, says the head of Malaysian Antarctica Research Programme. The Passage is a sea lane across the top of Alaska and Canada that is blocked by sea ice for all but one month a year. It is only passable to hulking icebreaker ships. But as global temperature rises and Arctic ice melts, it could open up the Passage and other routes like the Northern Sea Route, for commercial shipping. Recent studies say this could happen anywhere between a few decades and a few years. If it takes place, it could cut a considerable amount of travel time for trade ships from Japan that are headed to Europe, says Azizan. "For so long, our ports have benefited from their central position. "But if this new route can be used all-year round, would ships still need to pass through our waters? What is our plan then?" But climate change isn’t necessarily all bad news, he’s quick to add. Malaysia should study and respond to impacts facing other parts of the world that could benefit this country. For instance, how will climate change affect soya bean crops, oil palm’s main competitor? So climate change isn’t just for scare-mongering environmentalists or scientists, says Azizan, but also for policy makers. "They need to be interested in this." Making a start on the awareness front is the Maritime Institute of Malaysia. Using the predictions of existing global climate change models, the institute has begun a preliminary assessment of the likely impacts on Malaysia. It hopes to complete this by year-end and carry out a more advanced study in 2008. It will focus specifically on how rising sea levels will affect the country’s coasts and marine resources, says senior researcher Tan Kim Hooi. Working with government, NGOs and universities, the study will look at how many coastal towns and how much infrastructure will be affected by rising seas. Tan, who is with the institute’s Centre for Coastal and Marine Environment, will also study how much land and mangrove forests will be lost and how this will impact fisheries. Finally, they will assess steps the country has taken to address issues and what more needs to be done. But Azizan argues that there’s very little accurate information on regional impacts to begin with. He says the models being used to predict what happens with climate change on a global scale don't do such a good job when it comes to regional scenarios. When applied to the region, the location of increased warming and higher rainfall differ significantly from model to model. This creates a lot of uncertainty and the need for a really good regional model. The model must also be tested against historical data, he says. "If the model can accurately predict what happened with the climate in the past, we can use it to predict the future scenarios with some confidence. "But this means we need historical data that stretches back a few thousand years." Countries covered in swathes of ice get this information by coring deep down and studying samples of ice frozen ages ago. The layers are like a diary of weather events of past centuries, explains Azizan. In Malaysia, stalagmites and corals store similar information and should be studied. "There’s a lot more that needs to be done and we’ve a long way to go before we can say we are prepared." © 2006 NST Online.
ARF conducts first-ever maritime exercise in Singapore
Singapore - The Asean Regional Forum (ARF) has conducted its first-ever exercise, known as Maritime Security Shore Exercise, here. The two-day exercise, which ended today, was also the first time that member countries had come together for an operational activity under the ambit of the ARF, Singapore's Ministry of Defence said. "The multilateral shore exercise was designed to promote interoperability and familiarity among the various agencies involved in enhancing maritime security," the ministry said in a statement released at the end of the exercise. Maritime security experts from the military, law enforcement, port, and policy agencies of ARF member countries participated in a series of inter-agency discussions and table-top exercises. A simulation exercise was also held at the Singapore navy's tactical training centre at the Changi naval base, which focused on inter-agency as well as international information-sharing and collaborative sense-making, it said. A total of 102 officials from 21 of the 26 ARF member countries participated in the exercise which the ministry described as a reflection of the recognition by ARF members that multilateral cooperation was necessary to address the transnational nature of maritime challenges. The ARF is the only formal security forum in the larger Asia-Pacific region. "Building on the high level of comfort that has been achieved among ARF member countries, the ARF is moving beyond confidence-building measures to the next phase of its development in preventive diplomacy. "The conduct of the ARF Maritime Security Shore Exercise reflects the ARF's progress from dialogue to practical cooperation," the statement said. The ARF comprises the 10 Asean members and Australia, Bangladesh, Canada, China, European Union, India, Japan, North Korea, South Korea, Mongolia, New Zealand, Pakistan, Papua New Guinea, Russia, Timor Leste and the United States. © 2007 BERNAMA.
ASEAN Regional Forum conducts maritime security shore exercise in Singapore
A formal security forum in the Asia-Pacific region concluded the first ever multilateral maritime security shore exercise in Beijing, according to a statement by Singapore's Defense Ministry on Tuesday. The two-day exercise of the Association of Southeast Asian Nations (ASEAN) Regional Forum (ARF), hosted by Singapore, was also the first time that member countries came together for an operational activity under the ambit of the ARF, the statement said. The multilateral shore exercise was designed to promote interoperability and familiarity amongst the various agencies involved in enhancing maritime security. A total of 102 maritime security experts from the military, law enforcement, port, and policy agencies of ARF member countries participated in a series of inter-agency discussions and table-top exercises. A simulation exercise was also held at the Singapore Navy's Tactical Training Center at Changi Naval Base. A total of 21 of the 26 ARF members participated the exercise, which reflected the recognition by ARF member countries that multilateral cooperation is necessary to address the transnational nature of maritime challenges that all countries face, the statement said. Building on the high level of comfort, the ARF is moving beyond confidence-building measures to the next development phase in preventive diplomacy, said the statement, adding that the conduct of the exercise reflects the ARF's progress from dialogue to practical cooperation. The ARF, established in 1994, is the main official multilateral dialogue channel on political and security issues in the region. Its 26 members include the 10 ASEAN member states, Australia, Canada, China, the European Union, India, Japan, the Democratic People's Republic of Korea, the Republic of Korea, Mongolia, New Zealand, Pakistan, Papua New Guinea, the Russian Federation, the United States, Timor-Leste and Bangladesh. © People's Daily Online,
Eaga shows clear signs of growth
Cebu City - Leaders of the four-country grouping called Brunei Darussalam-Indonesia-Malaysia-the Philippines East Asean Growth Area (BIMP-Eaga) are seeing encouraging signs of growth in the sub-region as government and private sector players rev up efforts to make Eaga flagship programs and projects moving. At the recently held third BIMP-Eaga Leaders Summit in Cebu, BIMP-Eaga leaders, Sultan Haji Hassanal Bolkiah of Brunei, President Susilo Bambang Yudyohono of Indonesia, Prime Minister Abdullah Ahmad Badawi and President Gloria Macapagal-Arroyo of the Philippines noted achievements in the BIMP-Eaga Roadmap to Development 2006-2010, saying that signs are clear that the sub-region will accelerate growth over the next medium term. In a joint statement, the leaders said they were encouraged with the progress achieved in the implementation of the BIMP-Eaga Roadmap to Development 2006-2010, particularly the initiatives to facilitate the accelerated implementation of the flagship projects. At the summit, Dato Seri Syed Hamid Albar, standing chair of the BIMP-Eaga Signing Ministers, presented to the leaders the accomplishments in the BIMP-Eaga roadmap over a 12-month period of implementation as well as status of compliance to the leaders' directives during the 2nd BIMP-Eaga Leaders summit in Kuala Lumpur, Malaysia last December 2005. Among the major breakthroughs cited were the initiatives taken by the energy, transport and CIQS or customs-immigration-quarantine-security sectors. Last year, Filipino-Russian join venture Mosphil Aero launched its regular flight between Zamboanga City in the Philippines to Sandakan in Sabah, Malaysia and this was followed by Sriwijaya Airlines launching its own flight between Manado in North Sulawesi and Davao City. Shipping service between the municipality of Glan in Sarangani and Bitung via Tahuna Islands in Indonesia was also launched in October. To strengthen trade facilitation, the BIMP-Eaga CIQS Task Force was also formed in August last year with the assistance of the Asian Development Bank and the German Technical Cooperation. Philippines and Malaysia have also conducted two Joint Border Patrol Exercises to strengthen security in the common maritime border areas. Other accomplishments cited include the signing of the joint venture agreement on the BIMP-Eaga Halal Poultry Project, palm oil industry project investment expansion in Malaysia, preparation of the energy action plan, development of tourism packages and marketing materials for BIMP-Eaga, completion of the BIMP-Eaga Database on cross-border trade, investment and tourism and the holding of the 1st BIMP-Eaga Chief Ministers, Governors and Local Governments Forum in Kota Kinabalu, Malaysia. The leaders stressed prioritization of all BIMP-Eaga flagship projects. They also directed Eaga ministers and senior officials to intensively pursue, monitor and review the implementation of all the programs and projects in order to ensure attainment of the BIMP-Eaga development goals and targets set forth in the roadmap. The BIMP-Eaga roadmap's ultimate goal over the next five years is to "narrow the development gaps across and within the Eaga member countries as well as across the Asean-6 countries." This, as BIMP-Eaga, after suffering a backlash from the 1997 financial crisis, is currently gearing towards broadening economic links not just within the sub-region but also to external markets in Asean. Within the five-year period, BIMP-Eaga stakeholders are hoping to achieve 10% increase in intra-trade and investments among Eaga focus areas and 20% increase in tourism movement within the sub-region by 2010. Created in 1994, BIMP-Eaga is a four-country grouping collectively pursuing sub-regional economic growth. With an estimated 50 million people spread out across 1.5 million square kilometers of land in four countries, the BIMP-Eaga is Asia's largest sub-regional cooperation. © Copyright 2002 - 2006 Sun.Star Publishing, Inc.
Global pirate attacks in 2006 dip to lowest in 8 years, says maritime watchdog
Kuala Lumpur - Global pirate attacks in 2006 fell for the third year in a row to the lowest level in eight years, raising hopes that the war against armed robbery at sea can be won, an international maritime watchdog said Monday. Last year, there were 239 attacks on ships, down from 276 in 2005 and 329 in 2004 — thanks to precautionary measures by ship crew in hotspot areas and increased patrols by law enforcement agencies and navies, the International Maritime Bureau said in its annual report. "More reporting and greater awareness leading to increased government reaction is proving a successful strategy in the battle against piracy," the London-based bureau said through its piracy reporting center in Kuala Lumpur. The IMB said the downtrend was a positive sign but urged authorities and ship crew to remain vigilant. "We have to keep up the pressure by encouraging more ships to report attacks, getting ever more accurate figures, and increasing awareness. The strategy is working and there are now signs the war against piracy can be won," IMB director Pottengal Mukundan said in a statement. Indonesia remained the world's hottest piracy hotspot with 50 attacks last year, but this was a marked improvement from 79 cases in 2005, the IMB report said. But the situation has deteriorated in Bangladesh as cases of sea attacks more than doubled to 47 last year, the IMB said. Chittagong port, where most of the cases occurred, has been listed as the world's most dangerous port, it said. Nigeria has 12 pirate attacks, the third highest, it said. Last year, 49 people, mostly foreign oil workers, were kidnapped and three killed, the report said. Attacks in the busy Malacca Strait, which carries half the world's oil and more than a third of its commerce, have been on the decline since July 2005 with 11 cases last year, it said but warned ships to maintain a strict watch when transiting the waterway. Fifteen crew were killed by pirates in 2006, compared to none in 2005 and 32 in 2004. Pirates took 188 people hostage in 2006, down from 440 in 2005 but up from 148 in 2004, its said. More than half of the attacks occurred while vessels were at anchor, with attacks on bulk carriers accounted for about a quarter of the incidents, it said. © 2007 the International Herald Tribune.
Jakarta bans sand exports to Singapore by Sharon Vasoo
For some time now, Singapore has been basking in its friendship with Indonesia, trying to nudge foreign investors to go to its larger neighbour. It has been a staunch supporter of Indonesia's Riau Island's Special Economic Zones. On Monday night, the warm ties had to negotiate a sand trap. Indonesia's Trade Minister Mari Elka Pangestu unilaterally announced that her country would ban the export of sand, soil and topsoil — a move that will affect mainly Singapore which imports between six and eight million tonnes of land sand annually. It comes at a time when Singapore's construction sector has just roused itself from a long, lethargic spell and is set to take off. Singapore imports almost all the sand used in its buildings from Indonesia but is confident that it will find other sources to bridge the shortfall. It has also been persuading its developers to switch from sand-based construction to using more steel — which is more easily available and makes for quicker, cleaner projects. Indonesia's decision may speed up this switch. "It could also be an opportunity — just as our water disputes with Malaysia led to our engagement with Newater," said an observer. Nevertheless, Indonesia's sudden and swift decision has not gone down well. "Singapore is disappointed," said a statement from the National Development Ministry and the Building and Construction Authority. Ms Mari said that Indonesia took this decision because its government wanted to protect its environment and maintain the nation's maritime borders. "After observations in the field, there is actually quite heavy environmental damage and the banning of sand exports is a response to this," she said. It is understood that Singapore had offered to work with Indonesia to address its environmental concerns. "We regret that Indonesia did not take up our offer ..." said the statement. Still, Jakarta decided to go ahead with the ban under which exporters have been given up to Feb 5 to honour existing sand contracts. Observers say that the Indonesia's move was mainly to placate domestic lobby groups and provincial ministers who feel that they have not benefited from the trade that fetches Indonesia more than $120 million a year from Singapore alone. It has been the Republic's main supplier of sand since Malaysia banned exports in 1997. On paper, the ban could affect between $60 billion and $90 billion worth of projects here that are already in the pipeline. But there is not likely to be any disruption at all. "We have quite a sizeable sand stockpile, and we are prepared to release the stockpile to meet the immediate needs of the industry," Dr John Keung, BCA's chief executive officer told Channel NewsAsia. Meanwhile, the alternatives are already clicking into place. The Housing and Development Board has already started procuring sand from sources outside Indonesia to produce concrete. At least one such ship, it is understood, is already on its way to Singapore. This arrangement will ensure that Singapore builders get a steady supply of sand to make concrete for their buildings. But since the sand is being shipped from areas much further away than Indonesia, industry experts said that it was likely to be more expensive than Indonesian supplies. This sand could add between 1 and 2 per cent to project costs, experts said. So, it probably made more sense to switch to steel-based construction which would be marginally more expensive — it could add 3 per cent to project costs — but would see buildings come up faster, with less dependence on foreign labour. Backing this, Mr Keung said: "It is very important for us to move away from such high dependency on sand export in construction work. We've been trying to persuade the industry to move towards a more sustainable form of construction, like the use of steel structure." Industry experts that it was possible for Singapore to cut its sand consumption by up to 70 per cent. This would mean that the Republic would only have to import between one and two million tonnes of sand a year. Of late, Britain has slashed its sand usage by up 70 per cent and Japan by 50 per cent. The trend has caught on in Singapore too, with the National Library, Capitol Tower and the Ang Mo Kio Hub Mall using steel more than concrete in their structures. Even the Marina Integrated Resort design has a steely edge to it. The construction industry here is expected to shrug off the impact of this ban sooner rather than later, observers said. For now, they are more intrigued by the mixed signals that Indonesia is sending as far as its relationship with Singapore goes. "Sometimes governments are forced to make tough decisions, but these decisions should not be seen as an expression of negativity against another country," said Mr Wiryono Sastrohandoyo, a former Indonesian ambassador and now a senior fellow at Jakarta's Centre for Strategic and International Studies. Not many builders in Singapore will agree with that. © 2005 MediaCorp Press Ltd.
Japanese coast guard to hold anti-piracy exercises with Malaysia, Thailand
Kuala Lumpur - Japan's coast guard will hold anti-piracy exercises with Malaysia and Thailand in a bid to bolster cooperation against attacks at sea, the Japanese Embassy said Thursday. The Japan Coast Guard vessel Yashima will arrive in northern Malaysia on Jan. 30 for a series of exercises off the resort islands of Phuket in Thailand and Langkawi in northern Malaysia, an embassy statement said. It said the exercises would strengthen close ties among the three countries' maritime security agencies, and help build their ability to uphold safety and security at sea. The Yashima will be joined by five vessels from Thailand and three from Malaysia, which will also provide air support, it said. Authorities in some Asian countries have stepped up anti-piracy cooperation in recent years, in part because of concerns over possible terror strikes, especially along the Strait of Malacca, one of the world's most crucial waterways. Japan has provided logistical and technical support to some regional maritime security agencies. In August, it hosted officials from Indonesia, Malaysia, the Philippines, Singapore and Thailand to discuss terrorism at sea. The Strait of Malacca is a narrow waterway with coastlines in Malaysia, Indonesia and Singapore. Its northern entrance is near southern Thailand. Attacks in the strait _ through which half the world's oil and more than a third of its commerce passes _ have been declining since July 2005, with 11 cases reported last year. © 1999~2007 The China Post.
Malaysia has potential to be maritime hub by Jimmy Yeow
Malaysia can rival major regional maritime hubs such as Hong Kong and Singapore and boost its downstream sector by attracting ancillary services to support the domestic maritime industry, according to IT services company LogicaCMG’s chief executive officer Michael Warren. “Malaysia is at the cusp of a major boom to its maritime business. Because of strong government support, it has the potential to be one of Southeast Asia's leading maritime nations,” he said. While the likes of Port of Tanjung Pelepas, Westport, Northport and Penang Port expand healthily; major developmental works are also seen at North Butterworth Container Terminal, Kuantan Port and Bintulu Port offering ample business opportunities for the ancillary sector, he added. In addition, Warren said the country's programmes to upgrade its maritime capability in defence by doling out contracts worth US$1 billion (RM3.5 billion) spells fresh opportunities for many downstream businesses. These support services range from security, technology, logistics to training, human resource management and outsourced services, he added. As an example, Warren cited there were many maritime support services within the sphere of security that can spring from Malaysia. “Maritime certificate fraud is rapidly emerging as a key threat to the industry, and one that poses grave dangers for the wider international community. Forged ship documents and crew travel documents can easily be obtained, so security services will become more predominant,” he said. Security services are just the tip of an iceberg. Other services can cater to haulage, freight forwarding or even manufacturing industries e.g. tracking, cost management," Warren said. LogicaCMG provides global services in the finance; telecoms; energy and utilities; industry, distribution and transport; and the public sectors. Its systems are used in controlling the transfer of more than US$5 trillion per day, two thirds of text messages sent globally and a third of the world's satellites currently in orbit. LogicaCMG's systems have been fundamental to the regulatory transformation of energy markets around the world. Its HR outsourcing services process more than US$100 billion of salaries globally each year. In the maritime industry, LogicaCMG has served the Ports of Rotterdam and Amsterdam, the Port of London Authority, the Bremer Lagerhaus Gesellschaft (the operating company for German Ports), the Associated British Ports Holding PLC, Lloyd’s of London Press, the Belgian and Dutch governments as well as Hong Kong-based shipping and logistics service company OOCL. In Holland, it has developed and maintained a port management system that supports vessel movement control and advised the Port Authority of Amsterdam on possibilities of electronic services via the Internet. LogicaCMG also developed an information processing system for the Belgian and Dutch government to plan and control cargo shipments of dangerous goods. In Asia, OOCL appointed LogicaCMG to develop a global communications strategy to process data and provide global support through three regional data centres. © 2006 The Edge Communications Sdn Bhd.
Mangrove shelter by Jessica Lim
Standing on the edge of a rickety wooden jetty, the jolly-faced local pointed to a pole sticking out from the rolling sea some 1.5km away. “That’s where my house was. That’s where I grew up.” Over four decades, Chai Bak Long watched the sea waves eat aggressively into the mangroves which shielded his fishing village, forcing its residents to move further and further inshore. The fish, large crabs, frogs and birds that lived there rapidly dwindled in size and number, affecting the livelihoods of local fishermen. Today, a giant sausage-like tube snakes across the sea floor. It’s called a geotube. About the diameter of a hawker-stall umbrella and nearly as long as five Olympic-sized swimming pools, it represents the great, green dreams of contractors Perwira Bintang Holding Sdn Bhd. The tube, which the company named Pillowtube, was designed to absorb the relentless thrashing of waves, giving the fragile mangrove saplings within a fighting chance to grow their roots. Occasional breaks in the tube allowed fresh sea water to slosh in and out. At the same time, the tube prevented seedlings from being washed out to sea. “It looks like a sausage, but it’s a very special sausage,” said Perwira Bintang CEO Datuk Tan Kar Meng, who himself grew up among the mangroves of Sungai Besar, Sabak Bernam. The nearly RM1 million pilot project, funded by Selangor Forestry Department, was completed in October. As of last week, Tan said 80 per cent of about 1,800 saplings planted still survived, and thousands of wild ones were growing under the mother trees. This, he said, made it a resounding success. Want a piece of the mud pie? Four months, agree experts, is way too short a time to deem any mangrove replanting project successful. In one such project in Kuala Sala, Kedah, all it took was a series of unusually large wave surges for survival rates of the plants to plummet by over 90 per cent, said Universiti Malaya Maritime Research Centre (UMMReC) research fellow Prof Noraini Mohd Tamin. And that was after it had been growing well for four years, she added. “It takes at least three to four years before we can say the project is successful. Mangroves are so sensitive, things can change in the blink of an eye.” She was also concerned that the Pillowtube makers didn’t involve experts in the field like botanists, sedimentologists and coastal ecologists. She said that although the company had engineers to construct the geotube, they didn’t have the expertise to deal with issues like salinity, soil analysis, hydrology and natural pests. “It’s like making a car. Just because you know how to make the tyres doesn’t mean you should get the contract to build the whole car,” said Prof Noraini, who sits on a task force set up under the Natural Resources and Environmnent Ministry to oversee mangrove and coastal species replanting operations. Selangor Forestry Department director Nik Mohd Shah Nik Mustafa said the company was given the contract because they were well-established and had the relevant expertise in construction. “They can engage other experts if they want to. That is up to them,” he said. But he said that as far as he could see, the mangroves were growing well and he was satisfied with the project. Money well spent? “RM1 million, huh, for 250 metres of geotube,” mused Maritime Institute of Malaysia (MIMA) senior researcher Tan Kim Hooi. About 15 per cent of our 4,800km coastline is lined with mangroves, he pointed out, and a third of the coastline is facing erosion. One estimate put a RM250,000 price tag on every 100 metres of tubing. That is a lot of eroded coast to line with those frightfully expensive tubes. He said that to consider geotubes as a major solution for coastal erosion and protection would be largely ineffective. “It’s a dynamic process. You gain some, you lose some. If the conditions are right, nature repairs itself,” he said, adding that geotubes had not been tested against rising sea levels. “Most mangrove plantings along exposed coastlines have failed. To answer why, we have to determine the reason they were dying out in the first place,” said Tan. He said the heroic efforts to plant mangroves often came to naught because well-meaning parties used the wrong species at the wrong areas. “You won’t believe it. People can look at a mangrove forest, see mother trees of one species, and plant trees from a different species. “Just because a species like as Rhizophora apiculata grows well in Matang mangroves doesn’t mean it will grow well along exposed coastlines. Even if those trees survive, they will probably be stunted,” he said. Mangroves died out in coasts with high-energy waves, he said, because they simply liked it better in more sheltered areas. Thus, he said that the idea of growing mangroves in open coastal areas as protection against tsunamis could be misleading. “It’s better to invest on an early warning system for tsunamis. Encourage mangrove rehabilitation, yes, but in areas where they can thrive naturally.” He also suggested that active replanting in abandoned shrimp ponds would be more viable and cost effective. But most importantly, he said that yet-unprotected mangrove forests (about 100,000 hectares) should be gazetted, and real steps taken to control development in mangrove areas. “What’s the point of trying so hard to plant new mangroves when you’re not doing enough to protect existing ones?”. © 2006 NST Online.
Philippines to revise maritime laws
Manila - The Philippines is planning to put in place comprehensive maritime legislation to promote and accelerate the growth of its shipping industry. With $200,000 assistance from the Norwegian International Agency for Development (Norad), a committee has been formed to review pending bills and existing laws, with a view to addressing overlapping functions of state agencies dealing with marine functions. The committee includes Norwegian and Philippine experts together with academics. At least 15 government agencies have maritime-related functions and several laws govern the country’s maritime affairs. “There is therefore a need to clearly delineate functions such as safety of life at sea, maritime security, marine environment protection, seafarers’ education and training (including certification and assessment), shipbuilding, supervision of maritime schools and training centres,” says transport secretary Leandro Mendoza. He has advised president Gloria Macapagal-Arroyo that the legislation will also serve as a single instrument governing the development and implementation of policies and direction of Philippine overseas shipping. It is also expected to shape the bureaucracy’s organisational structure towards a “co-ordinated and effective framework of action to make the country attractive [to] maritime investment capital,” Mendoza added. © Lloyd's Register - Fairplay Limited 1999 - 2006.
Pirates in retreat – IMB
Kuala Lumpur - There are signs that the war against piracy can be won, according to the International Maritime Bureau. The Bureau yesterday launched its annual report for 2006 showing a falling number of attacks for the third successive year. There were 239 attacks on ships in 2006, compared to 276 in 2005 and 329 in 2004, the agency said. The Bureau credits this to more reporting and increased awareness, leading to government action. “There are now signs the war against piracy can be won,” Bureau director Pottengal Mukundan said. “We just have to keep doing what we have been doing.” In terms of piracy ‘hot-spots’, while attacks reported around the entire Indonesian archipelago fell from 79 in 2005 to 50, almost as many (47) were reported in the waters in and off one port – Chittagong, Bangladesh. The latter raids may be opportunistic, but the robbers are nevertheless armed and pose a serious danger to seafarers, the Bureau notes. Growing violence in Nigeria is also of concern: the country had the third-highest number of attacks on ships and the most kidnap victims. “It appears that local politics are having a direct impact on the safety of shipping”, the report said. Nevertheless, the number of crew members or passengers taken hostage world-wide more than halved in 2006, from 440 in 2005 to 188 last year. Over in East Africa, it is feared that the eviction from Somalia of the hard-line Islamists, who had overseen a virtual ceasing of piracy cases, may see the menace return. The figures, while cause for cautious optimism, should not be cause for complacency, the Bureau warned. © Lloyd's Register - Fairplay Limited 1999 - 2006.
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