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July 2005

Anti-piracy unit formed by Jaswinder Kaur
Kota Kinabalu - a newly set-up marine police tactical unit is expected to assist in fighting piracy and kidnappings, especially in the Straits of Malacca. Some 30 officers have been trained to take quick action in the event of any attack. Marine police commander Senior Assistant Commissioner I Abdul Rahman Ahmad said for the time being, the focus of the unit would be on the Straits of Malacca. "The Straits of Malacca is used for international trade and attacks on vessels may affect the economy in the region. "This unit can also be transported quickly by air if there is a need for them to conduct rescue in other areas, such as in Sabah. Eventually, a similar unit may be set up in Sabah and Sarawak, but we will have to consider several factors such as costs," he said. Abdul Rahman said this after chairing a marine police regional heads meeting at a hotel here today. He said the case of pirates hijacking a tanker north of Langkawi last month showed that there was a need for such a tactical unit. Ten armed pirates held the tanker crew hostage for nearly 12 hours before surrendering to police who laid siege to the ship. More than 50,000 vessels ply the Malacca Straits each year, a waterway that links Asia to Europe and the Middle East, carrying half the world’s oil and a third of global commerce. Abdul Rahman also said the marine police will continue to focus on protecting coastal activities such as ports, oil refineries and tourist islands. He said Sabah, which had faced kidnapping incidents in the past, was also protected by other enforcement units such as the General Operations Force, navy and army. Abdul Rahman also said that the marine police will hand over 15 PZ type patrol boats to the Malaysian Maritime Enforcement Agency which comes under the Prime Minister’s Department. He said nine boats will be delivered on July 25 and the remaining six within two months. The marine police will still have about 200 vessels after the 15 boats are handed over. © NST Online.

China to establish oil pollution fund by Mike Grinter
Hong Kong (July 7, 2005) - China’s Maritime Safety Administration today announced its attention to set up a national oil pollution fund in the face of increasing oil spills. Speaking at the high-profile International Maritime Forum in Shanghai, deputy director-general Liu Gongshen said if the CMSA gets clearance from the state, council shipping companies and consignees will be charged a levy to fund the compensation entity. China has long been a member of the International Oil Pollution Compensation Fund’s 1992 Civil Liability Convention, which calls upon state contributions, but has yet to sign up to the second tier to the 1992 Fund Convention. Hong Kong benefits from both tiers of the fund, having ratified by virtue of its status as a British colony before the handover to China in 1997. A source at a P&I club in Hong Kong suggested that in light of the fact that China has had many meetings with IOPC in recent years, the move announced by the CMSA may be perceived as an interim measure before the nation signs up to the full deal with the IOPC. A rise in collision incidents, due to a sharp increase in shipping traffic, has led to oil spills and this is creating unprecedented pollution in China’s waters, the report said. This has prompted the administration to set up a compensation regime to help fund cleanup operations in the event of oil spills and to compensate victims of oil spills. “While prompting compulsory insurance oil pollution from ships, the administration plans to set up a fund by levying a charge on ship owners and cargo consignors, as they should take responsibility for oil pollution and compensating the victims of oil spills,” Liu Gongshen, deputy director-general of the MSA, said in a keynote speech at the International Maritime Forum in Shanghai, Reuters reported. © 2005 T&F Informa UK Limited.

Fish farms hit by oil pollution
Pontian - Barely six days after an oil slick befouled the Sungai Rengit jetty, more oil pollution struck 80 fish farms in Kukup Laut, Pontian. Hundreds of sea bass, pomfret and grouper were killed as oil discharged by vessels plying the Straits of Malacca drifted towards the fish farms at 5am today. Ong Chee Huat, 45, one of the farmers, said the slick engulfed his kelong. "There was nothing I could do except clean the tarred nets and isolate the unaffected fish. Who would want to buy these fish now? They smell of engine oil," he said. Another farmer Ong Lim Peng, 38, said his losses may amount to RM35,000, including RM5,000 to clean 50 tarred nets. "The fish will not survive and they will die by tomorrow," he said. In April, a similar oil slick cost him RM20,000. Zakaria Yusuf, 52, the penghulu of Mukim Air Masin, said the authorities did not do anything when the area was polluted in April and hoped that this time around, the culprits would be caught. "It has become more common of late for cargo vessels plying the Straits of Malacca to dump oil in the sea," he said. In April, the oil slick had seeped into 6,000 fish enclosures, causing a total loss of RM3.5 million. Kukup Laut is one of the biggest exporters of fish. © 2004 NST Online.

Foreign Ships Caught Fishing Illegally to be Fined up to Rp2 Billion
The Indonesian government is to impose heavy punishments and fines of up to Rp2 billion on all foreign ships caught fishing illegally in Indonesian waters. Indroyono Susilo, Head of the Ministry of Research and Technology’s maritime and fisheries research division, said on Wednesday (13/07) that this has already been stipulated in the Law on Maritime and Fisheries No.31/2004. According to Susilo, this sort of punishment could reduce the amount of illegal fishing cases in Indonesian waters, which cost the state Rp2 trillion in losses per year. “This amount is very high,” he told maritime experts from 13 countries at the Indonesian Ocean and Pacific Asian Marginal Seas/Japan Forum, held in Sanur, Bali. The government will keep increasing efforts to combat illegal fishing committed by foreign ships. Security personnel have already caught several foreign ships and their crews fishing illegally in Indonesia and some ships have even been sunk. Indonesian Naval troops based in Dumai seized two Malaysian ships that were fishing illegally in Indonesian waters of. The ships, with the numbers SLSA 2995 and SLSA 1898, were seized while spreading their nets in the waters off Rupat Island, Bengkalis, Riau “This morning, the two ships were brought to Dumai Base by the Indonesian Naval ship Jemur. The two Malaysian ships, along with their eight crew members, are now being detained for further investigation,” Dumai Navy Base commander Col. Alex A. Kekung told TEMPO on Wednesday (13/07). According to Kekung, four other similar ships managed to escape into the waters of Malaysia. “Four other ships had not yet had the time to spread their net and were positioned exactly on the border area,” he stated. Susilo said that efforts to reduce illegal fishing activities must be carried out immediately and include all related aspects. He added that his ministry has established an online registration system by using computer equipment sets the data security of which could be guaranteed. According to Susilo, this system will enable the registration of ships that request permission to fish in particular areas within a two-week period. This system is also capable of monitoring the movement of ships from transmitter placed on board ships. This way, this system will be able to monitor any crimes that take place on these ships. © TEMPO.

India has no intention to patrol Malacca Straits: Naval chief
New Delhi - On the eve of his heading the biggest ever Naval warship Flotilla to the far east in an attempt to showcase Indian capability in ship building, Naval Chief Admiral Arun Prakash today allayed fears of ASEAN countries asserting that India had no intention to patrol the crucial Malacca Straits. "We have no intention of patrolling the Malacca Straits," he said interacting with journalists at a function of mark the anniversary of a security magazine. Some south-east Asian countries have voiced concern about India's role in the Straits after its Navy escorted some ships there recently. Heading a fleet of Naval warships comprising the country's lone aircraft carrier INS Virat and indigenous Delhi class frigates and destroyers, the Naval chief is embarking on a visit to Malaysia and Indonesia next week to attend big Naval exhibitions where for the first time India would make a big pitch to sell its Naval armaments. Indicating this, Prakash outlined that Indian Navy in next two years planned to built 34 warships of different classes as he strongly advocated that private sector should be brought "on board" in defence equipment production, even in critical armaments. "A time will come when out own shipyards will be full. I feel that at that point, it will be better to involve the private sector in ship building rather that place orders abroad," he said. However, he added that some shipbuilding orders may be given to other countries. Prakash said the Navy had recently received approval to set up a dedicated directorate to develop indigenous technologies which would identity "critical" areas where foreign collaboration took much money and time. The private sector would be approached to use their "ingenuity" to indigenise technology, he said. The Navy was already working on developing a maritime version of the indigenously-developed Light Combat Airport (LCA), he said. The Naval chief said a suggestion had been sent to the Defence Ministry to provide funds for periodic upgradation of shipyards. Prakash said some neighbouring countries had asked India to provide Naval hardware and a full-fledged directorate would check the requests before they are vetted by the Government. "The need of the times is for neighbouring Navies to work together," he said. © Outlook Publishing (India) Private Limited 2005.

India to flaunt warship in South-East Asia by Shiv Aroor
Rising interest from South East Asian countries in India’s indigenous warship building capability has resulted in the inclusion of a locally-built Naval warship as part of the fleet accompanying Navy Chief Admiral Arun Prakash to Port Kelang in Malaysia and Jakarta at the end of July. The indigenous missile corvette will be part of a fleet of five ships, including the Navy’s sole aircraft carrier INS Viraat which will be making its first visit to South East Asian waters during the visit. The other three ships will be decided over the next week. Shipyards in India are currently engaged in the manufacture of 19 Naval warships, including guided missile destroyers, frigates, patrol craft and corvettes. In fact, a locally-built 260 ton fast attack craft (INS Batti Malv), of a type the Singaporean and Malaysian navies have shown a special interest in, was unveiled yesterday in Kolkata to be deployed in the Andaman & Nicobar islands. While Admiral Prakash is travelling on the invitation of the Navy chiefs of Malaysia and Indonesia who visited New Delhi last year, significant discussions could form part of the proceedings in both countries, including talks on joint patrolling, coordinated action against smuggling and piracy, and the crucial issue of policing the Strait of Malacca that runs between Indonesia and Malaysia, as reported by Express on June 11. With India and the US entering into a comprehensive defence cooperation agreement today, with clauses that involve joint-patrolling of global waters, the Malacca Strait issue becomes even more significant. The July-end visit to Port Kelang in Malaysia and Jakarta will be one of the most emphatic gestures of the Navy Chief’s comprehensive ‘Look East’ policy. Earlier this month, Admiral Arun Prakash had said, “We have certain responsibilities in the Indian Ocean Region towards safeguarding national maritime interests, and also an international obligation to ensure peace and tranquility so that seaborne trade and commerce and continue unhindered. The Indian Navy is fully capable of discharging these roles.” © Defence India.

Indonesia to deploy four Japanese vessels to tackle piracy
Kuala Lumpur - Indonesia, whose waters are prone to pirate attacks, will deploy four Japanese patrol vessels along its side of the Straits of Melaka by end of this year, Kazinform cites Bernama. First Admiral Budhi Suyitno, Indonesia's chairman of the Malaysia-Indonesia Maritime Operation Planning Team (Malindo), said Wednesday his government was still discussing Japan's offer but stressed that the vessels were solely for non-military purpose. "The four vessels will be used to tackle robberies in the seas, smuggling activities and to monitor immigration violations. "The vessels will be received by non-military agencies like the Customs department, Indonesian marine police or the Indonesian sea information agency," he told reporters after attending the 14th Malindo meeting here. He said the vessels, measuring about 40m and with a speed of 30 to 40 knots, would be given free to Indonesia but on a condition that they were strictly used to maintian safety along the busy straits. The safety of the Straits of Melaka, an international sealane where some 400 ships ply the waters daily, had come under international scrutiny in recent years due to constant threats from marauding sea pirates who rob vessels and kill their crew in the high seas. On Tuesday, the International Maritime Bureau (IMB), in its 2005 half-yearly report on Piracy and Armed Robbery Against Ships, revealed that Indonesia recorded the highest number of attacks, accounting for one third of the world's total with 42 incidents. About 127 cases were recorded in the first six months of this year, said the report. Asked to comment on IMB's report, Budi said the government would continue to take measures to ensure the straits' safety. "We are committed to ensuring that the Straits of Melaka is peaceful and safe for international users," he added. © Kazinform National Company.

Joint Statement Between President Bush and Prime Minister Lee Hsien Loong
Washington - The following text is a joint statement between President Bush and Prime Minister Lee Hsien Loong: President George W. Bush and Prime Minister Lee Hsien Loong reaffirm the strong U.S.-Singapore partnership and will open a new chapter in strategic cooperation by signing the “Strategic Framework Agreement Between the United States of America and the Republic of Singapore for a Closer Cooperation Partnership in Defense and Security.” The Agreement is a natural step in the expansion of bilateral ties. President Bush and then-Prime Minister Goh Chok Tong first announced their intention to conclude this agreement in October 2003. It was born out of a shared desire to address common threats such as terrorism and the proliferation of weapons of mass destruction (WMD), which called for even closer cooperation between the United States and Singapore. The Agreement recognizes Singapore’s role as a Major Security Cooperation Partner and will expand the scope of current cooperation in areas such as counterterrorism, counter-proliferation, joint military exercises and training, policy dialogues, and defense technology. The Agreement will further enhance regional stability by supporting the continued security presence of the United States in Southeast Asia. The President and Prime Minister agree that the U.S. presence in the region has promoted peace and stability, which are crucial for regional cooperation and economic development. The President and Prime Minister instruct their senior officials to meet to continue close coordination on strategic issues in the period leading up to their next bilateral meeting. The President and the Prime Minister acknowledge progress in the war on terror. The Prime Minister commends the President for the United States’ resolute and steadfast stance in the war on terror and expresses Singapore’s continued support in this endeavour. The two leaders welcome the successful election of the first Iraqi National Assembly. President Bush expresses appreciation for Singapore’s contributions to Iraq’s reconstruction and stabilization. He commends the professionalism of the Singapore Armed Forces personnel who have been deployed in support of Iraq operations over the past two years and of the Singapore Police Force, which has provided critically important training. The President and Prime Minister express optimism about the outlook in Southeast Asia. They welcome successful elections, the strengthening of democratic institutions, and renewed economic growth in the region and agree that these trends should be encouraged. The two leaders note the progress countries in the region have made in disabling terrorist networks through enhanced cooperation among ASEAN nations and with the international community. The President and Prime Minister condemn the terrorist attacks in London and call on governments around the world to fight terrorism together. They agree that a sustained, long-term effort is needed to defeat terrorism and reaffirm their commitment to continue working closely on law enforcement, non-proliferation, and other appropriate measures to address all aspects of the war on terror. The President and Prime Minister express satisfaction with the seamless cooperation between the United States and Singapore in responding to the humanitarian disaster caused by the tsunamis in the Indian Ocean. The two leaders note the increasing importance of the Regional Emerging Diseases Intervention (REDI) Centre in light of growing concern over transnational-public-health threats such as SARS and avian influenza. They also note the importance of the Straits of Malacca, and President Bush pledges U.S. support for the region’s initiatives for maritime security. The President and Prime Minister welcome the successful implementation of the U.S.-Singapore Free Trade Agreement and the growth in bilateral trade since it became effective on January 1, 2004. They express satisfaction with growing commercial ties between our two countries and are confident that trade and investment relations will continue to expand. The President and Prime Minister pledge to sustain the close cooperation between the United States and Singapore in key regional and global multilateral institutions. The President reaffirms U.S. support for ASEAN and the ASEAN Regional Forum. The two leaders note the central role of the Asia-Pacific Economic Cooperation (APEC) forum in supporting trade and investment liberalization and in promoting cooperative efforts to strengthen regional security. With the forthcoming first Meeting of the East Asia Summit in Kuala Lumpur in December 2005, they agree that the future development of cooperation among countries in the region should be open, transparent, and inclusive. The President and Prime Minister reaffirm the warm and strong ties between the United States and Singapore, which are grounded in historical cooperation, common interests, and shared strategic perspectives. © 1999-2005 Christian Communication Network.

Malacca Strait among world's safest shipping lanes
Kuala Lumpur - The Straits of Malacca is one of the safest shipping lanes in the world and statements to the contrary are unfounded, said Transport Minister Datuk Seri Chan Kong Choy. "Every year, well over 100,000 vessels, (each) weighing 300 tonnes or more, pass through the Straits and the most number of piracy cases we have recorded (on an annual basis) was just 37 in 2000. "The figure does not include smaller vessels (below 300 tonnes). If we divide the number of vessels which use the Straits of Malacca every year with the number of cases of piracy, the figure is less than 0.01%," he told reporters after opening the 3rd annual Indian Ocean Research Group (IORG) International Conference at the Legend Hotel here on Monday. The Lloyd's Market Association's Joint War Committee (JWC) recently declared the Straits of Malacca together with 20 other areas, such as Iraq, Lebanon, and Nigeria, as security threats to shipping. Chan said the JWC declaration was "over-dramatic." "We have to be rationale and put things in perspective. We have zero-tolerance for pirates, but the number of piracy cases in the Straits has been over-hyped to cause unnecessary alarm to ship owners," he said. © 1995-2005 Star Publications (Malaysia) Bhd.

Malacca Strait declared a high risk zone by Joint War Committee Decision could increase premiums in affected area by Marcus Hand and James Brewer
One of the world's busiest shipping lanes, the Malacca Strait, has been declared a war-risk area by the Lloyd's and London insurance market Joint War Committee. New guidelines to underwriters listing a total of 21 areas worldwide in jeopardy of war, strikes, terrorism and related perils will give them more bargaining ammunition with shipowners. By specifying the Strait and adjacent ports in Indonesia in policies, insurers will assume the ability to issue seven days notice of cancellation of terms, to prepare the ground for seeking additional premium. In a sweeping overhaul of the committee's listed areas, the Strait is perceived to be an area of high risk, as are some other areas in Indonesian waters. Middle East countries named include Bahrain, Iraq, Israel, Lebanon, Qatar and Saudi Arabia. Iran has been dropped from the list of countries recommended for special attention. At the root of the Malacca Strait decision is a spate of piracy attacks and kidnappings in the key shipping artery, which has more than 60,000 vessel transits a year. The area covered runs the entire distance north to south of the Strait and includes major Indonesia ports such as Dumai and Belawan. The committee has a purely advisory role, without any rating power. Insurers remain free to decide whether to seek additional premium. In practice, even when they apply the list to their policies, they use discretion depending on a shipowner's trading pattern and other considerations. Members of the committee, chaired by Rupert Atkin of Lloyd's enterprise Talbot Underwriting, viewed reports from staff and from external consultancy Aegis Defence Services about recent piracy activity, which has been well chronicled. Daniel Tan, secretary general of the Federation of Asean Shipowners Associations, expressed disappointment. He said: "I think it will be of great concern. It will not be good for Asean shipping." Neil Smith of Lloyd's Market Association stressed that underwriters "are not looking to stop trade happening, they are looking to assess their own exposures and help the trade by providing a realistic approach." The Malacca Strait has seen a sharp rise in the number of kidnap-for-ransom attacks over the last year, especially in Indonesian waters close to the province of Aceh. In terms of the maritime terrorism risk, the fact pirates are able to board and take control of a vessel theoretically means that a terrorist could do the same. The believed involvement of Free Aceh Movement rebels in kidnap-for- ransom attacks has further blurred the lines between whether incidents should be classified pirate attacks for commercial gain, or viewed as part of a civil war and treated as war risk claims. Another area which has also been hit by hijackings and kidnappings the Sulu Archipelago, between the tip of East Malaysia and the southern Philippines, is among those categorised as a war-risk area. An industry source voiced surprised that the Malacca Strait had not been declared a war-risk zone earlier. Another felt that it might act as a wake-up call to regional governments to take tougher action to curb piracy. Until now, the war-risk listing has tended to remain little changed, but Aegis will help the committee keep it under constant review.

Aegis, whose clients include the US government, international financial institutions, and international corporations, has been hired to help the committee to refine and clarify areas of maritime risk, and advise on parts of the world where war or terrorism risk has largely abated. A statement from Aegis said that its use of geographically-specific risk analysis "means that for complex countries such as Indonesia, where a single threat assessment is too simplistic, the joint war committee can now assess the threat in many different areas, and can concentrate specifically on those identified as being of particular concern" It said that its approach drew heavily on its Aegis Threat Assessment System, which took into account the danger of war, political unrest, terrorism, piracy, smuggling, organised crime, stowaways and other threats to some 3,000 locations, calculating a weighted threat factor for each. Aegis intelligence director Dominic Armstrong said: "Aegis is delighted to be providing the joint war committee with insight into the increasingly complex war and terrorism threat matrix. We believe that the impact will be to enable the market to take a professional approach to the current complex global security threat." Mr Atkin said that the role of Aegis in keeping the insurance response under review "means that the underwriting market will be fully informed of the rapidly evolving security situation around the world, and will be able to deliver an efficient and professional insurance response. © 2005 T&F Informa UK Limited.

Malacca Strait war risk ruling comes under attack
Singapore - INTERTANKO says declaration of the Malacca Strait as war risk areas by the Lloyd’s and London insurance market Joint War Committee was unnecessary.“It is fair to say it is a matter of concern,” said John Fawcett-Ellis, regional manger for Intertanko in the Asia Pacific region. The vast majority of oil imported by east Asian countries moves through the Malacca Strait, one of the world’s busiest shipping lanes, The decision to declare the ship-ping lane a war risk zone followed a spate of violent piracy attacks. These attacks, however, mainly target smaller vessels such as tugboats, although in some cases small tankers have been involved. There is also a fear that pirates could be linked to terrorist organisations. “We are having meeting with the war risk representatives at the end of July,” said Mr Fawcett-Ellis. “There has been no proof that piracy is linked to terrorism.” © Informa Asia Publishing Ltd.

Malaysia Expects More Progress From Third Meeting On Sulawesi Sea Dispute
Kota Tinggi - Malaysia hopes its third round of talks with Jakarta on the maritime border dispute in the Sulawesi sea, to be held in Indonesia, will achieve even more progress based on the positive developments at the second round held in Langkawi in May. Foreign Minister Datuk Seri Syed Hamid Albar said Saturday, Malaysia was satisfied with the outcome of the second meeting and Indonesian Foreign Minister Hassan Wirajuda had expressed the same view. "There were positive developments at the second meeting held in Langkawi which can be brought forward to the third meeting. We also hope for more positive developments at the third meeting in view of the success in the second round," he said. "The will to reach a solution in the talks is truly encouraging," he told reporters after opening a seminar on consumerism organised by the Kota Tinggi Umno division here. The first meeting of this technical team was held last March in Bali following a dispute between the two countries over ownership of waters in the Sulawesi Sea, believed to be rich in oil and natural gas. Kuala Lumpur had declared that an area known as Block ND6 and Block ND7 belonged to Malaysia and had awarded the right to prospect for oil to a local firm, Petronas Carigali, and its partner, Royal Dutch Shell. Malaysia's action was opposed by Jakarta which declared that the waters it refers to as Ambalat belonged to it and the right to prospect had been given to a company called Unocal. Syed Hamid said both countries would discuss more specific matters during the third meeting, the date of which had not been fixed yet. "I cannot disclose the details of the specific matters because it may have an impact on the next meeting, he said, adding that Malaysia's stand on the matter was in line with the United Nations Convention on the Law of the Sea - UNCLOS. According to him, the conflict, among others, touched on issues related to the maritime region, Exclusive Economic Zone (EEZ) and the continental shelf. Asked on the effect of Indonesia's continued action of building lighthouses in the disputed waters, Syed Hamid said it did not have any effect on the laws or on the meeting between the two sides. On whether construction of the lighthouses would have any effect on the decision by a third party such as the World Court, he said that at this stage neither side wanted to bring it to the court. "I don't think either side wants to bring (the matter) to the International Court of Justice. Both sides want to negotiate according to the UNCLOS and international law," he said. He said Kuala Lumpur and Jakarta would continue holding the talks without any time limit and would ensure that each side was fair to the other. © 2005 BERNAMA.

Malaysia lures China Shipping
(July 7, 2005) - CHINA Shipping’s move to relocate its regional headquarters to Kuala Lumpur from Singapore was prompted among other things by incentives provided to foreign owned businesses by the Malaysian government. However, as China Shipping executive Li Zuo Ming explained, the move makes sense following the transfer of the company’s regional container transhipment hub to Port Klang in 2000. Li is vice-president and director of Malaysian subsidiary China Shipping Regional Holdings. He said Port Klang is cheaper than Singapore but is just as efficient. China Shipping’s volumes at Klang have been registering double-digit growth, and hit 350,000 TEU in 2004. The relocation comes amid uncertainty over P&O Nedlloyd's continuing presence in Singapore if the proposed acquisition by AP Moller-Maersk goes ahead. The Danish giant moved its transhipment hub to Tanjung Pelepas in the Malaysian province of Johor five years ago. © Lloyd's Register - Fairplay Ltd 2005.

Malaysia not to allow foreign forces to patrol Malacca straits: PM
Malaysian Prime Minister Abdullah Ahmad Badawi said on Thursday his country would never allow foreign military forces to help it patrol the Malacca Straits. Malaysia firmly believes in the principle of sovereignty and independence of a country, no matter how small the country is, Badawi said in his keynote speech at the 56th General Assembly of the ruling United Malays National Organization (UMNO). "Their presence (of foreign forces) without our permission is an encroachment which we consider as being disrespectful of our country's sovereignty," Badawi, who was also UMNO president, was quoted as saying by the Bernama news agency. The Straits of Malacca is now jointly patrolled by the littoral states of Malaysia, Indonesia and Singapore. However, Malaysian Deputy Prime Minister Najib Tun Razak said on June 7 that the international community could help reinforce security in the straits by providing maritime surveillance aircraft which would be operated by security forces of the littoral states. According to a recent report issued by the International Maritime Bureau, eight piracy attacks have been reported in the straits with increasing violence during the first half of the year 2005. Over 60,000 vessels, with shipment of a third of global trade and half of the world's oil, pass through the straits every year. About 2,500 party members are attending the three-day assembly, which is the last general assembly for UMNO during the Eighth Malaysia Plan (from 2001 to 2005). UMNO leads the party coalition National Front, which has been ruling Malaysia since its independence in 1957. © People's Daily Online

Malaysia not to intensify maritime security in Straits of Malacca
Kuala Lumpur - Malaysia has no plan to beef up maritime security in the Straits of Malacca in the wake of the bombings in London, the Royal Malaysian Navy (RMN) said Monday. "We will maintain the current maritime security level because there are no indicators to increase (security) in terms of the maritime context," RMN Assistant Chief of Staff (Plans, Strategy and Operation) First Admiral Ahmad Kamarulzaman Badaruddin was quoted as saying by the Bernama news agency. He made the remarks when asked whether Malaysia would tighten maritime security after the terrorist bombings rocked London last Thursday. Badaruddin said maritime security was a complex issue given the900-kilometer stretch of the straits. Malaysia and the RMN were committed to ensuring that security was well managed along the busy waterway, Badaruddin stressed. "This is to provide assurance to our international users that the straits is safe," Badaruddin said at a three-day seminar on the Indian Ocean Research Group International Conference which opened here. It is reported that over 60,000 vessels, with shipment of a third of global trade and half of the world's oil, pass through the straits every year. © Xinhua News Agency.

Malaysia to issue commemorative stamps to mark 600th anniversary of Malaysia-China relations
To mark the 600th anniversary of Malaysia-China relations, Malaysia Post will issue on Thursday commemorative stamps and first-day covers in honor of the great Chinese maritime explorer Zheng He. The stamps, of denominations ranging from 30 cents to 2 ringgit (0.52 US dollars), record the historic events that shaped the relations between the two countries, Malaysia Post Managing Director Ikmal Hijaz Hashim was on Tuesday quoted by the Bernama news agency as saying. The stamps feature the 15th century tin currency of Admiral Zheng He, the 14th century rooster currency, the seal of the Chinese Emperor given to the Sultan of Malacca, ceramics, merchant vessels and trade in Malacca, Hashim said in a statement released here. With the launching ceremony to be held in the Malacca International Trade center, some 2.26 million stamps and 67,000 first-day covers as well as souvenir packs and folders will be sold nationwide beginning Thursday, Hashim said. The year 2005 marks the 600th anniversary of the western voyages of Zheng He, who led huge fleets of Chinese merchant ships on seven major expeditions from 1405 to 1433, establishing mutually beneficial trade and diplomatic relations with over 30 Asian and African countries and regions. Zheng He, who visited Malacca at least five times during his seven major expeditions, has been recognized as the founder and witness of the profound relations of friendship between China and Malaysia. © People's Daily Online.

Malaysian backlash at Malacca risk call by Marcus Hand
Malaysian Transport Minister Chan Kong Choy has lashed out at the declaration of the Malacca Strait as a war risk zone, claiming that the shipping lane is one of the safest in the world. “If we divide the number of vessels which use the Strait of Malacca every year with the number of piracy cases, the figure is less than 0.01%,” Mr Chan he said after opening the third annual Indian Ocean Research Group international conference. He was responding to questions over the decision by the Lloyd’s and London insurance market Joint War Committee to declare the Malacca Strait a war risk area. He noted that the highest number of piracy incidents in the Strait was 37 in 2000. The number of attacks compares with 60,000 merchant vessel transits a year. Recent violent pirate attacks, including kidnap for ransom, prompted the strait to be declared high risk. Mr Chan described the committee statement as “over-dramatic”, adding: “We have to be rational and put things in perspective.” Violent pirate attacks on vessels in the Strait have increased concern that shipping in the region could also be vulnerable to the threat of maritime terrorism. The views of the transport minister were echoed by a Malaysian navy official. “In fact, if you look at statistics, the Strait of Malacca is one of the safest straits in the world,” Royal Malaysian Navy assistant chief of staff First Admiral Ahmad Kamarulzaman Badaruddin told the news agency Bernama. “The incidences [of threats] are small [in number] and relatively the risk factor is very small.” However, in apparent recognition that there is a real problem with piracy in the strait, the Indonesian navy has launched an operation to combat the scourge. The operation named Gurita, Indonesian for Octopus, will involve 20 warships, seven patrol boats, four aircraft and two helicopters. The operation will cover both the Malacca and Singapore straits. Meanwhile, Malaysia says it has no plans to increase security in the strait following last week’s terror bombings in London. Mr Chan said it was “business as usual” in the strait. While the London bombings have resulted in increased security on public transport in a number of countries in the region, no increased threat is seen against the shipping industry. “We will maintain the current maritime security level because there are no indicators to increase [security] in terms of the maritime context,” Adm Kamarulzaman Badaruddin said. © 2005 T&F Informa UK Limited.

Malaysian PM meets CPC delegation
The contacts and exchanges between the United Malays National Organization (UMNO) and the Communist Party of China (CPC) are conducive to the development of the relations between Malaysia and China, Malaysian Prime Minister Abdullah Ahmad Badawi said Friday. Badawi, who is also UMNO president, made the remarks while meeting with a CPC delegation headed by Hu Jiayan, deputy secretary of the Xinjiang Uygur Autonomous Regional Committee of the CPC. Friendship between Malaysia and China dated back to 600 years ago, when the Chinese maritime explorer Zheng He set foot on Malacca, Badawi said. Badawi said he hoped that the friendly relations between the two parties, the two countries and between the Malaysian and Chinese peoples could be further strengthened. The CPC delegation, which arrived here Wednesday afternoon, attended the 56th UMNO General Assembly on Thursday. The UMNO leads the party coalition National Front, which has been ruling Malaysia since its independence in 1957. © People's Daily Online (China).

Malaysian PM warns foreign navies to keep out of Malacca Straits
Kuala Lumpur - Malaysian leader Abdullah Ahmad Badawi on Thursday warned foreign navies to keep out of the Malacca Straits, an apparent message to the United States which has proposed sending an elite U.S. unit to help secure the piracy-prone waterway. "We will view any uninvited presence as an intrusion and a sign of disrespect for our independence and our sovereignty," Prime Minister Abdullah told delegates at the annual congress ofthe ruling United Malays National Organization party. Malaysia has said it is capable of guarding its portion of the narrow, 885-kilometer Malacca Strait, which it shares with Indonesia and Singapore. The strait is a key maritime route for a third of the world's trade and half of the world's oil supply. More than 50,000 vessels ply the waterway each year. "We are firm in our stand that it is our responsibility to safeguard the Straits of Malacca. We will not allow foreign troops to patrol these straits," Abdullah said. The U.S. plan to send a unit to protect the waterway, proposed last year, has also met with opposition from Indonesia and Singapore. The U.S. worries the scourge of piracy may turn into the threat of terrorism. Earlier this year, Malaysia's Defense Minister Najib Razak warned that foreign governments will want to get involved in providing security in the Malacca Strait if piracy in the busy shipping lane isn't curbed quickly. Last year, the International Maritime Bureau recorded 37 pirate attacks in the strait, despite coordinated patrols by Malaysia, Indonesia and Singapore. © The Jakarta Post.

MISC ships to transport KoGas LNG
MALAYSIA International Shipping Corp will ship LNG to KoGas under a new import contract signed today between Malaysia LNG and oil and gas giant Petronas. KoGas is the world’s largest importer of liquefied natural gas with annual imports close to 20M tonnes and MISC the world’s largest operator of LNG vessels with a fleet of 19. The agreement with Malaysia LNG Tiga today for the import of 2M tonnes of LNG every year for 20 years beginning 2008 provides for the deployment of MISC-owned ships. MISC is the subsidiary of state-owned oil and gas giant Petronas, which also owns 60% equity in Malaysia LNG Tiga. Following this agreement, total imports from Malaysia LNG will amount to 6.7M tonnes a year. “Malaysia LNG companies will supply about 24% of the total volume of KoGas import estimated to be around 25M tonnes in 2008,” Petronas stated today. The cargo will be shipped from Petronas’ Bintulu complex to KoGas receiving terminals in Pyeong Taek, Incheon and Tong Young in South Korea. © Lloyd's Register - Fairplay Ltd 2005.

Nations told to share in fight against straits pirates
Attacks on ships in the pirate-infested Straits of Malacca are unlikely to decline unless Indonesia, Malaysia and Singapore share more intelligence, maritime security experts say. The three countries straddling the straits began coordinated patrols last year after Washington said more needed to be done to protect the 50,000 commercial vessels that ply the waterway annually. Experts at a seminar in Singapore marking the first anniversary of the patrols said Thursday that naval and coast guard cooperation are not enough to stop piracy and urged the three countries' police forces to step up information exchanges to help in the apprehension of pirates. ``We still have a significant problem,'' said Graham Gerard Ong, a piracy researcher at the Institute of Southeast Asian Studies in Singapore. The 960-kilometer Straits of Malacca, which links Asia with the Middle East and Europe, is one of world's most important sea lanes. Half of the world's oil and a third of its goods pass through the waterway. Singapore and Washington are concerned that terrorists could collaborate with pirates to seize a ship, sail it into a harbor and set of a massive explosion. In May, the US Navy held a joint anti-terror exercise with Indonesian marines off Jakarta. But Indonesia and Malaysia have both made it clear that security in the straits should be the job of littoral nations, rejecting ideas that US ships take an active role in fighting the pirates. Japan, meanwhile, has sent support vessels because its ships and mariners have been targeted. ``Patrols are only a temporary solution to the piracy problem,'' said Noel Choong, head of the International Maritime Bureau's piracy watch center in Kuala Lumpur. ``Police have to go to their hideouts, flush them out and only that will put a stop to it.'' At least seven pirate attacks have been recorded in the strait this year, the latest June 14 when authorities caught 10 Indonesians attempting to hijack an oil tanker off northern Malaysia. That was foiled when a crewman made off in the pirates' boat to alert Malaysian authorities of the attack. Navy and police craft later overhauled the tanker and talked the pirates into surrendering. Officials recorded 37 attacks last year in the waterway. ``Pirates are better caught - as we know - on the ground in the villages, not out in the middle of the straits,'' said Robert Beckman, an adviser to the Singapore Maritime and Ports Authority. ``Someone must know which villages have small boats with 300 horsepower engines that only move at night. That's really where the cooperation's required.'' © 2005, The Standard Newspaper Ltd.

Navy touches up friendly face by Sujan Dutta
New Delhi - The navy is setting up a directorate of foreign cooperation after emerging as the service of choice for India’s policies of military diplomacy in the Indian Ocean region even as the first murmurs of discontent on its strategic ambitions wash up at the naval headquarters. The chief of naval staff who is also chairman of the chiefs of staff committee, Admiral Arun Prakash, leaves for Indonesia, Malaysia and Singapore next week to join the navy’s aircraft carrier-led flotilla that is now steaming to Southeast Asia. He will convey the message that India’s maritime interests in the Indian Ocean region are friendly. The navy chief’s visit was scheduled before Indonesia last week expressed reservations on the Straits of Malacca being patrolled by navies from outside the three countries that flank the busy sea lane of communication. Admiral Arun Prakash today took the initiative at a function organised by the journal Force to allay fears of the Indian Navy’s reach before leaving to join the INS Viraat carrier group that has set sail for the Southeast Asian countries with ships from the eastern fleet. This is the carrier’s first overseas deployment and is a move designed to showcase the Indian Navy’s capability. The carrier is also the navy’s flagship. “We have no intention of patrolling the Malacca straits. We believe in working with the Singapore, Malaysian and Indonesian navies with whom we have joint programmes,” he said. Last week, an Indonesian foreign ministry spokesperson said in Jakarta that “we wish to make it clear that the Straits of Malacca is not an international strait. It is only for international navigation and the responsibility of its safety lies with Indonesia, Malaysia and Singapore”. India has escorted US vessels through the straits and has been repeatedly stating, with some encouragement from the US, that it has an increasing role to play in the Indian Ocean region from the Straits of Hormuz near the Persian Gulf in the west to the Straits of Malacca in the east. The maritime strategy also reflects the Indian foreign ministry’s “look-east policy”. The navy chief said Indian naval vessels had escorted US ships on a specific request from Washington. Admiral Prakash said a foreign affairs cell in the naval headquarters was being upgraded to a foreign cooperation directorate. The directorate would look into aspects of maritime diplomacy as well as help shape exchange and training programmes. The directorate was being set up on the advice of and in consultation with the ministry of external affairs and would take initiatives in foreign collaboration. “The Indian Navy will have a crucial role to play in concert with our friends,” he said. The Indian naval ability — showcased earlier this year in its rapid deployment to tsunami-hit countries in the Indian Ocean region — and strategy has come in for some criticism particularly after the India-US framework agreement on defence signed during defence minister Pranab Mukherjee’s visit to the US. Naval headquarters is impressed by Washington’s proclaimed reliance on the Indian Navy as a friendly force capable of dominating the Indian Ocean region and securing the sea lanes of communication through which the heaviest maritime traffic sails. The Viraat, two guided missile destroyers, the INS Rajput and the INS Ranjit, a replenishment tanker, the INS Shakti and an indigenously built missile corvette, the INS Khukri, are deployed to Singapore, Malaysia and Indonesia between July 19 and August 1. © 2005 The Telegraph (India).

New court for admiralty cases by Sharidan M. Ali
A dedicated court to handle admiralty cases has been set up at the Kuala Lumpur High Court from July 1. Maritime Institute of Malaysia (MIMA) director general Datuk Cheah Kong Wai said the court with a dedicated judge would hear all the maritime related cases filed at Kuala Lumpur High Court. He said MIMA welcomed the establishment of the court, which would help speed up such cases. Cheah said filing of admiralty actions in the country is expected to increase with the establishment of such a court. “A court devoted for admiralty cases can be viewed as a first step towards a longer term objective of establishing a specialised admiralty court or an admiralty division,” he said. He said this would be in line with the significant growth of Malaysian maritime industry since 1970’s after the Government’s declaration to make Malaysia a maritime nation. “Recognising the weak legal support to the maritime industry, MIMA undertook a study on the need for an admiralty court in Malaysia recently. “The study identified the lack of confidence in the present system as cases involving maritime law are usually tried before the commercial division in the high court,” he said. Cheah said MIMA's report on the study was forwarded to the Chief Justice of Malaysia and it received a positive response to set up a dedicated court at the Kuala Lumpur High Court. He said sometimes the courts are not aware of the special needs of admiralty actions like such cases must be heard while the ship is in Malaysian waters. “From 1997 to 2003, only 371 admiralty cases were filed in Malaysia courts and none of them went for full trial,” he said. Cheah said not only are Malaysian courts not attracting cases from outside the country, even disputes that occur in Malaysia amongst businesses in the country are mostly referred to courts of other jurisdictions. He said the admiralty services earned £800mil for England in 2001 while the law sector in Hong Kong for such cases generated HK$42mil. © 1995-2005 Star Publications.

New research on propeller material
Northport (Malaysia) Bhd and Mara University of Technology (UiTM) has signed a memorandum of understanding in estuarine studies, port engineering and management. Environmental Research Centre (ERiCA) director Professor Dr Ruslan Hassan said they would embark on research methods to increase the life of boat propellers, which are damaged frequently by floating debris. He said currently the propellers are being replaced once in six months. Ruslan said he had explored three methods to increase the life span of the propellers by determining the directions of the movements of the floating debris, improving the composition of the propeller materials and providing a propeller cage around the propeller. “The research proposed a new composition of the tested alloy to be used as the propeller material,” he said. He named it as Alloy SI, which has been found to have better mechanical properties and can replace the existing propeller material. “Out of the tested propeller cages, one that fulfils the purpose of preventing debris hitting the propeller while at the same time not putting too much penalty on boat speed,” said Ruslan. The report was handed at the signing of the MoU between the groups and other similar future works would be carried in collaborative manner. “Northport will be able to source the expertise of the university staff thereby optimising the use of their resources while the academics and the students will be able to deal with real problems and providing relevant solution. “The exchange of information between the two will cement further the University-Industry relationship,” he said. © 1995-2005 Star Publications (Malaysia) Bhd.

Pelepas to attract more box lines
PORT of Tanjung Pelepas in Malaysia says it is poised to add “a few more” independent shipping lines. The port is competing with neighbour Singapore for container cargo. Expectations have mounted following the latest success in attracting Singapore’s electronics firm Flextronics to set up a M$400M ($105M) industrial complex within the Pelepas Free Zone. The complex, scheduled to be operational from April 2006, will serve as a regional hub for the company. “This is the big start we have anticipated,” PTP chief executive Mohd Sidik Shaik Osman said, referring to the global portfolio of Flextronics that covers 30 countries. The free zone provides a number of concessions in terms of free import duty and tax breaks. More than 90% of PTP’s volumes are generated from transhipment, but the free zone facility is expected to boost hinterland traffic from the fast-growing south-western corridor of Johor. Volumes for the first six months at PTP this year exceeded 2M TEU. Throughput for 2004 was a record 4.02M TEU. © Lloyd's Register - Fairplay Ltd 2005.

Piracy attacks leave owners facing ransom cover dilemma by Marcus Hand
P & I clubs reluctant to pay out after spate of kidnappings in the Malacca Strait. If the worst happens and crew from your vessel are kidnapped by pirates in the Malacca Strait your P&I insurer may well not pay out if a ransom is paid to secure their safe release. The spate of kidnapping crew for ransom by heavily armed pirates over the last year in the Malacca Strait has left owners with little choice than to pay up if they want to see their crew alive again. However, when owners have tried to claim for ransom payments they have found they are treated as discretionary claims by their P&I insurer and whether the Club has paid out in full, part or not at all varies from case to case. “There is no express inclusion or exclusion of cover in P&I Club rules,” said an insurance industry source. “A shipowner might seek to submit a claim to his P&I club under principles of mitigation costs or other discretionary cover, but it can not be predicted how such discretion would be exercised and any decision is likely to be confidential.” Simply not paying the ransom has proved not to be an option, with weak law enforcement in particular on the Indonesian side of the Malacca Strait where kidnapping is prevalent. Last year an Indonesian owner negotiated a ransom with the pirates but then decided not pay. As a result, the hostages were killed. One owner said that while the payment of ransoms was not covered under standard P&I policies, some clubs would consider payment if the member concerned appealed. The source said he was aware of at least one case where this had happened, although in such cases the club would only pay part of the ransom, not the full amount. In other cases, clubs are reported to have refused to pay out over ransom payments and owners have accepted this. An International Group Club recently issued a circular saying the best course of action to ensure cover was to take out a standalone kidnap and ransom policy. Despite having been circulated among insurance brokers, it is understood the club has since claimed this was an internal document and not its official position. Ironically though, if the seafarer is shot dead by the pirates, the Club is liable to pay a death compensation claim and this has led to one possible avenue for appealing claim for a ransom payment. In at least one case an owner has been able to successfully appeal based on the application of sue and labour claims. The owner was able to show that he both acted prudently in securing the release of the seafarers and the ransom was less than the Club would have had to pay in death compensation. The wide range of scenarios that have played out illustrates the lack of a common policy when it comes to the payment of ransoms. Robert Gordon, managing director of Singapore-based P&I correspondents Seasia P&I Services, believes Clubs need to clarify the situation. “The Clubs need to stop sweeping this under the rug. It is not right that owners are left in limbo,” he said. He feels that it should be made clear that claims will be assessed on the merit of each case or, “If they want to say ‘No, we do not pay ransoms’, they should say No”. Should the latter be the case they should advise owners how to seek kidnap and ransom cover. Even if clubs do cover ransom payments it is not something they are likely to publicise though. One source noted that if the pirates knew the seafarers they kidnapped were covered by insurance they would make much higher ransom demands banking on the insurer having far more money than an owner and operator of tugboats. “If these people know the owners have insurance the demands are going to become phenomenal,” one insurance executive stated. As it stands the demands of kidnappers in the Malacca Strait have generally stayed in the US$50,000 to US$100,000 range with room to negotiate to lower sums which they know the shipowner can afford to pay, and at the same time, the pirates are guaranteed a handsome return. © 2005 T&F Informa UK Limited.

Piracy in Malacca Strait may raise insurance costs
INSURANCE costs for ships using the Malacca Strait, the world's busiest sea-lane, may rise after it was declared a high-risk area for war and terrorism by an insurance body that advises members of Lloyd's of London. “Premiums, which vary according to underwriter, ship type and other factors, may rise,'' Neil Smith, marine manager at Lloyd's Market Association, said by phone from London yesterday. “Because of the general security situation in the Malacca strait, we felt it's an area that we cannot ignore.” The waterway was added to 20 other areas, including Iraq, Lebanon and Nigeria, deemed a security threat to shipping, according to a June 20 list from the Lloyd's Market Association's Joint War Committee. Shipowners have to inform underwriters that they plan to navigate in the country's waters and additional insurance costs may be levied for seven days' cover. The Malacca Strait was the second-most dangerous area for pirate attacks on ships last year, according to the International Maritime Bureau. Indonesia's oil-rich Aceh province has been subject to a separatist rebellion. About 50,000 vessels pass through the Malacca Strait each year, according to the US government's Energy Information Administration. “Rising piracy in the strait increases the chance of a major event happening,” Smith said. “It's difficult to identify if these attacks are just armed robberies or if there are political motives behind them.” Lloyd's of London is the world's largest insurance market. © 1995-2005 Star Publications (Malaysia) Bhd.

Pirates add to risks for shipowners by Saijel Kishan
London Insurance costs for ships using the Malacca Strait, the world's busiest sea lane, may rise after it was declared a high-risk area for war and terrorism by an insurance body that advises members of Lloyd's of London. "Premiums, which vary according to underwriter, ship type and other factors, may rise," Neil Smith, marine manager at Lloyd's Market Association, said by phone from London on Friday. "Because of the general security situation in the Malacca Strait, we felt it's an area that we cannot ignore." The waterway was added to 20 other areas, including Iraq, Lebanon and Israel, that are deemed a security threat to shipping, according to a June 20 list from the Lloyd's Market Association's Joint War Committee. Algeria and Nigeria are also on the list. Shipowners have to inform underwriters that they plan to navigate in the countries' waters and additional insurance costs may be levied for seven days' cover. The Malacca Strait, between Indonesia and Malaysia, was the second-most dangerous area for pirate attacks on ships last year, according to the International Maritime Bureau. Most pirates come from the Indonesian side of the waterway. The oil rich Indonesian province of Aceh has been subject to a separatist rebellion. About 50,000 vessels pass through the Malacca Strait each year, according to the U.S. government's Energy Information Administration. Ten pirates surrendered after hijacking a tanker off the Malaysian island of Langkawi on June 14, the maritime bureau said last month. The robbers, who were armed, approached the vessel in a speedboat, which was then used by one of the crewmembers to escape. "Rising piracy in the strait increases the chance of a major event happening," Smith said. "It's difficult to identify if these attacks are just armed robberies or if there are political motives behind them." Lloyd's of London is the world's largest insurance market. © 2005 the International Herald Tribune.

Progress expected in Malaysian-Indonesian maritime border dispute
Kuala Lumpur - Malaysia hopes its third round of talks with Indonesia on the maritime border dispute in the Sulawesi sea, to be held in Jakarta, Indonesia, will further progress made during the second round of talks, which was held in Langkawi in May, Foreign Minister Datuk Seri Syed Hamid Albar has said. Both countries will discuss more specific matters during the third meeting, the date of which has not been fixed yet, he told reporters from the Bernama news agency after opening a seminar on consumerism held by the Kota Tinggi Umno division. "I cannot disclose the details of the specific matters because it may have an impact on the next meeting," he said, adding that Malaysia's stand on the matter was in line with the United Nations Convention on the Law of the Sea (UNCLOS). According to him, the dispute, like others, touches on issues relating to the maritime region, Exclusive Economic Zone (EEZ) and the continental shelf. "I don't think either side wants to bring the matter to the International Court of Justice. Both sides want to negotiate according to the UNCLOS and international law," he said. © Vietnam News Agency.

Resurgence of piracy highlights terror risk: Southeast Asia struggles to protect vulnerable waterway by Kari Huus
When 35 pirates carrying machine guns and rocket launchers boarded a tanker laden with methane in the Malacca Strait in March, it sent a shudder through the crew, and a ripple of fear from Tokyo to Washington. The incident marked a resurgence in attacks along one of the world’s most vulnerable and valuable shipping lanes, where things had been relatively quiet following last year's tsunami. It also served as a reminder of the risks to world trade, and of the potential for terrorism in the region. The attack on the tanker turned out to be routine highway robbery in the strait, whose waters are shared by Singapore, Indonesia and Malaysia. But in the nightmare scenario, terrorists using the methods of modern-day pirates seize a gas tanker and use it as floating bomb, which experts say could explode with the force of a small nuclear weapon. The damage from such an attack could go well beyond the immediate bloodshed and environmental damage, hobbling U.S. trade with Asia and cutting off essential energy supplies shipped through the narrow channel to China, South Korea and Japan. "The threat is real and urgent," Singaporean Prime Minister Lee Hsien Loong told a regional security conference in June. "We know that terrorists have been studying maritime targets across the region." Each year, 60,000 ships ply the Malacca Strait, carrying about half of the world's oil and one-third of its trade. That includes nearly all of U.S. imports from China and 80 percent of the oil used by economic powers Japan, South Korea and Taiwan. In the 600-mile long passageway, just 20 nautical miles across at its narrowest, slow-moving cargo ships are easy to spot and chase down. Many of the attacks succeed because pirates can quickly retreat into national waters where pursuers cannot follow, and hide among the myriad islands in the region. As shipping through the strait increases rapidly, security only gets harder to provide. While the stakes are high for the United States and its trading partners, there are limits to American security efforts since the piracy is not in U.S. waters. Many attacks not reported. In 2004, there were 37 attacks in the Malacca Straits reported to the Piracy Reporting Center of the Malaysia-based International Maritime Bureau, making it one of the most dangerous stretches of water on earth, according to the organization. The number dropped sharply after the tsunami hit the region on Dec. 26, presumably because of the large presence of foreign military vessels helping with aid. But in mid-March, after their departure, the maritime bureau said violent ship attacks were on the rise again. And reported attacks, experts agree, are only a sampling of reality, since shipping companies are reluctant to report the incidents, which can cause costly delays or push up insurance rates. "There are more and more attacks that go unreported," said Gal Luft, director of the Institute for the Analysis of Global Security. "People in this industry ... admit that for them economically it doesn’t make sense." "They don’t care about the geopolitical implications or the social cost of all this," Luft said. As it is, the Lloyd’s and London insurance market Joint War Committee, an advisory body to insurers, reclassified the Malacca Strait as a war risk area this month — a signal to the insurance industry that regional conflict and the rising level of violence merit higher premiums for ships passing through the region. The attacks vary. Some pirates target the contents of ship safes; others kidnap crew members for ransom, while others target high-value cargo. One of the most recent reported incidents, technically in the Singapore Strait at the far southern end of the passage, took place on July 13, according to the International Maritime Bureau: "Six pirates armed with long knives and wearing black facemasks boarded a tanker under way via a speedboat. They took hostage two duty crewmembers and tied them up." After destroying the ship's communication equipment, the bureau said, they took three more crew members and the captain hostage, and stole the ship's cash and other property. More firepower. The attacks are increasingly sophisticated, employing military-style weapons and strategies. "Because of the kinds of weapons they're carrying, they're use of flack jackets, a high degree of competency and tactical prowess ... it seems apparent that they’ve had some relatively vigorous training," says Rupert Herbert-Burns, director of intelligence and research for the Washington, D.C.-based arm of Lloyds Marine Intelligence group in London. "We’re talking about criminals here … with more sophistication, scales of ammunition, adequate use of command and control, the use of multiple boats and the ability to seize precisely the right ship," he said. So far, the link between these criminals and terrorism remains largely a matter of speculation and concern. Skeptics say that the United States and its allies exaggerate the threat as a way to justify asserting themselves in the region. But there is some evidence that is cause for concern. The separatist group known by the acronym GAM, a group fighting to create an independent Islamic state in Indonesia's Aceh province, uses piracy to raise money for its long-running battle. Of more concern is the Islamist extremist group Jemaah Islamiyah, which was behind the October 2002 nightclub bombing in Bali that killed more than 200 on the popular Indonesian resort island. Jemaah Islamiyah is known to operate throughout Southeast Asia, and has had at least some contact with al-Qaida. Last August, Indonesia's intelligence chief, A.M. Hendropriyono, wrote in an opinion piece in the Jakarta Post that "senior Jemaah Islamiyah terrorists now in detention have admitted that attacks on Malacca shipping traffic have been contemplated in the recent past." He didn't provide any additional detail in the article, which argued for more cooperation in the region and help from the United States. An attack in 2004, the details of which remain in dispute, also prompted intense focus on the potential for terrorism in Malacca. As it was reported, hijackers with assault rifles took over a chemical tanker, disabled the ship's radio, took the helm and apparently experimented with steering the vessel at various speeds, an incident that prompted comparisons with the Sept. 11 suicide bombers flight training. Political obstacles to security. Since early last year, under pressure from the United States and other trading powers, Singapore, Indonesia and Malaysia have been struggling to devise a plan for better security in the narrow bottleneck. Indeed, Adm. Thomas Fargo, head of the U.S. Pacific Command, prompted a flurry of regional security efforts when he told Congress in March 2004 that the military was looking at "putting Special Operations forces on high-speed vessels" in the strait "to conduct interdiction." Indonesia and Malaysia, which firmly rejected the idea of a U.S. military presence in their waters, have started working, along with Singapore, on building a system of joint patrol, a move lauded by security experts. In the meantime, however, successful attacks continue mainly because the pirates flee international waters a short distance into the Indonesian archipelago, where Malaysian and Singaporean vessels cannot pursue them. "If those three countries agree on hot pursuit into each others territorial waters, that would be big progress in terms of cooperation," said Yoichiro Sato, associate professor at the Asia Pacific Center for Security Studies in Hawaii. But the poor state of Indonesia's military remains a major obstacle to security. By some estimates, only about one-third of its vessels are even seaworthy, says Jeorg Eschenfelder, Southeast Asia editor for the World Security Network. "They have equipment problems, training problems and corruption" to complicate their fight against piracy. Many of the pirates "are better equipped and trained than the coast guard or navies in the region," he said. Wealthy Singapore, with its largely Chinese and non-Muslim population, is the most zealous enforcer in the region, because port and maritime services are the lifeblood of the tiny city-state's economy. It also sees the United States as a key ally in a largely Muslim region. "Singapore is scared of its bigger neighbors, so it is trying to enhance ties with the United States," Sato said. "It actually welcomes a U.S. military presence in the region; for the same reason it invites the Japanese to be in the region with their coast guard or Self Defense Forces. Outside nations keep eye on the problem. There's no shortage of nations with an interest in Malacca's security, but their involvement remains marginal. Japan would like to help police the strait, and it's under pressure from shipowners to help after pirates abducted threw crew members of a Japanese-owned tugboat in March. In its most recent move, in June, Tokyo sent a coast guard patrol vessel to the region. However, lingering sensitivities over Tokyo's World War II atrocities in Southeast Asia dictate that Japan cannot send military vessels or run patrols, and that its role will remain largely financial and technical. Even the coast guard vessel met with some resistance, and instead is being billed as a training vessel. Under Japan's own postwar constitution, it cannot export arms. For now, Washington has taken a softer stand on the Malacca Straits, taking the lead of the newly appointed chief of the U.S. Pacific Command, Adm. William Fallon, who has said Malaysia, Indonesia and Singapore can do a "very adequate" job of safeguarding security. Support from the United States is focused on providing technology, reconnaissance data and running joint exercises to bolster local patrols. Sato said risks in the straits may also prompt the United States to lift restrictions on military sales to Indonesia that were imposed in the 1990s because of alleged human rights abuses by its military. Meanwhile, U.S. Defense Secretary Donald Rumsfeld held security meetings in Southeast Asia in June, urging coastal nations to work together on Malacca security, a reminder that the United States is standing by to protect its interests. © 2005 MSNBC Interactive.

S & P remains 'unconvinced' over shipping outlook by Tony Gray
Freight rates will stay "clearly" above historical averages for the rest of the year, according to Standard & Poor's (S&P). But the leading credit rating agency is less convinced about the medium-term outlook for shipping. In its latest industry report card on global shipping, S&P notes that companies continue to experience favourable market conditions, albeit below 2004 levels, leading to strong earnings and cash flows. Greatly improved demand for shipping to and from Asia, especially China, is supporting shipping markets . China's exceptional economic growth and increase in industrial production has translated into high import demand for raw materials and energy-related products (such as iron ore, oil, and oil-related products), which, combined with relatively tight vessel supply, has led to vastly improved freight rates in most shipping segments, S&P explains. "Freight rates are expected to remain clearly above historical averages for the remainder of 2005, albeit not at the strong levels experienced toward the end of 2004," says S&P credit analyst Andreas Kindahl. Nevertheless, S & P notes considerable uncertainty remains with regard to the mid-term outlook. Deliveries will be significant across almost all industry segments over the coming three years, which, in combination with relatively low expected scrapping levels, could lead to a demand-and-supply imbalance and subsequent pressure on freight rates and asset values. "Although some in the industry believe that the current very high freight rate levels could be sustainable, Standard & Poor's is more conservative in its shipping industry outlook and--while tanker and dry bulk freight rates are likely to remain above historical averages, at least in the near term--the mid-term outlook is clouded by uncertainties with regard to the future demand-and-supply balance," added Mr Kindahl. © 2005 T&F Informa UK Limited.

Sea diplomacy: Navy to 'exercise' its might by Rajat Pandit
New Delhi - The Navy is really spreading its wings now. It may be smaller than the Army and IAF but it has upstaged them in acting as a diplomatic instrument to further the country's political and geo-strategic objectives. While encomiums for its rapid deployment to help neighbouring countries during the tsunami disaster are yet to die down, it's already gearing up for another staggering round of international engagements to project power as well as build bridges of friendship. For the Navy, it's surely a multipolar world. The engagements range from combat exercises with three other powerful navies in the world, namely the American, Russian and French, to the dispatch of its aircraft carrier INS Viraat and four other frontline ships to South-East Asia. "India is a maritime nation. We have a bright. future if we use the seas to our advantage. Over 60,000 ships, for instance, transit through the Indian Ocean every year, transporting oil and goods worth an estimated $1,800 billion,"said a senior officer. "India will have to play a crucial role in ensuring the free flow of oil and commerce from the Gulf to the Asia-Pacific region. We have held joint patrols with the Sri Lankan and Indonesian navies. Similar action is on the anvil with the Thai Navy,"he added. The forthcoming combat manoeuvres — "Malabar"with the US, "Indra"with Russia and "Varuna"with France — will see INS Viraat and other Indian destroyers, frigates and submarines operating with foreign nuclear-powered aircraft carriers and submarines. "The exercises, for the first time, will involve carrier-borne air operations. The idea is to further enhance inter-operability with these navies,"said an officer. The US is to bring four warships, including an aircraft carrier and a submarine, and P-3C Orion 'spyplanes' to India's west coast for the exercise towards September-end. While Russian warships will operate on India's east coast in October, Indian warships will head for the Gulf of Aden to exercise with the French Navy in November. But before these exercises kick off, INS Virrat, two guided-missile destroyers, a missile corvette and a replenishment tanker will head for Singapore, Malaysia and Indonesia later this month to enhance bilateral ties in consonance with India's "Look East policy". That's not all. Two Indian warships are currently on their way back from Britain, while another four have just returned after a tour of Seychelles, Mauritius and South Africa. "We are, at present, interacting with 18 navies at different levels. We might have to set up a separate directorate for foreign cooperation,"quipped an officer. © 2005 Times Internet Limited (India Times).

The Security of Selat of Melaka: the Evident and the Hidden
The success of the Malaysian Police in defeating a group of 10 pirates during a piracy of the Nepline Delima on the 14 th of June last week received wide coverage in the local printed and electronic media. The ship which was carrying a load of 6,300 tons of diesel worth some RM12 million (Malaysian Ringgit) was seized by the pirates approximately 23 nautical miles to the southwest of Rebak Island within the waters of Langkawi Island. According to the Deputy Inspector General of Police Datuk Seri Musa Hassan, there was a possibility that the pirates belonged to an international syndicate (Berita Harian 17, June, 2005). During the month of March, a Japanese trawler fishing boat was attacked by a group of 35 pirates, equipped with weapons. They proceeded to kidnap 3 of the crew, 2 of which were Japanese citizens and the third was from the Philippines. Similarly in April of this year, the Thailand Navy succeeded in capturing 10 Indonesian pirates who were in a fishing boat heading toward the Island of Lipe, close to the region of Muang Satun. The problem of piracy is not new. It has existed from the time when sea-lanes were first used for trade and commerce. However the pirates of those days were not nearly as well equipped as they are today. These days they possess the very latest weapons and are able to move with organised efficiency and speed. They know precisely how to attack the critical areas, which must be quickly secured, and their way to the ships control rooms. That is in order to conclude their operations swiftly. With such evident efficiency and effectiveness it is no surprise the local authorities are beginning to take a very serious interest in their activities. Especially as the operations of these pirates have the feel of a trained group and have the speed of a commando unit as well as the necessary financial backing. Small wonder then, that the piracy that is taking place in the Malacca Straits is frequently linked to an international syndicate. In stark reality, it is also linked frequently to terrorist activities. There appears to be an interest in gaining control of this busiest of water channels in the world. [Piracy and the hukm from Islam] Piracy can be interpreted as the crime of stealing, pillaging and violence at sea, which is analogous to highway robbery (gat’u thariq). It is categorized as hirabah. Hirabah is the actions of a group of armed persons within the boundaries of Daulah Islamiyyah who cause disturbances or cause the spilling of blood, the pillaging of wealth, the violation of honour, the destruction of crops and animals, religious harmony, morals and the peace of society be they Muslim or kuffar (dhimmi or harbi) (Sayyid Sabiq, Fiqh Sunnah, the chapter of Hirabah). Included in hirabah are the crimes committed by crime syndicates such as the mafia, triads and such like. The hukm on those who commit hiraba as well the method has been mentioned clearly within the Qur’an ul Kareem. Allaah subhanahu wa ta’ala commands, “The punishment of those who wage war against Allah and His Messenger, and strive with might and main for mischief through the land is: execution, or crucifixion, or the cutting off of hands and feet from opposite sides, or exile from the land: that is their disgrace in this world, and a heavy punishment is theirs in the Hereafter” . [T.M.Q. AL MA’IDAH:33]. Based upon this, the punishment for those who commit hirabah is (1) death or (2) crucifixion or (3) their alternate hands and feet are cut or (4) they are banished. This is the punishment that must be meted out to the pirates who commit their acts in the Malacca Straits according to the hukm of Allah subhanahu wa ta’ala. However it is not our intention to discuss the details of punishment for piracy. Rather we wish to study the wider issue of security in one of the busiest straits of the world, the Straits of Malacca. The issue is wider than that of piracy, it includes the matter of power and control over this, most strategic of waterways. [The Straits of Malacca and the ambitions of the US] Why has is issue of piracy in the Straits of Malacca being hotly debated? The Straits of Malacca is a strategic channel, which represents the very pulse of the majority of world trade. It provides the critical cargo transportation route for the producers and exporters of both East and West. The amount of sea traffic is greater than that of the Suez Canal by up to 300% and that of the Panama Canal by 500%. There has been a sharp increase in traffic of the Straits of Malacca with the rise of China as a new economic power in the region. The schedule below shows the yearly amount of traffic for the Straits since 1999. The regional economic powers such as Japan and South Korea depend upon the Middle East for their supply of oil, most of which is supplied via the Straits of Malacca.

Year    Numbers
1999     43,964
2000     55,935
2001     59,314
2002     62,393
2003     62,334
2004     63,636
Numbers of ships passing through the Straits of Malacca 1999-2004 [Malaysian Department of the Sea]

With a population of around 1.2 billion people, China today is the third largest consumer of oil in the world, after the United States and Japan. China is undergoing a tremendous pace of industrialization with growth in GDP approximately 7% per annum. China’s use of oil grows by about 7.5% every year, which is 7 times higher than the US [www.iags.org/china.him]. In the year 2003, China’s import of oil grew by 30% compared to 2002. It is estimated that 2005, will see the growth increase by 10% to 7 million barrels a day [China Brief, The Jamestown Foundation March 29, 2005]. When added to the other Asia Pacific countries it would require 20 million barrels each day. A total of 45 Chinese oil tankers pass through the Straits of Malacca each day currently and it is estimated that by the year 2010 it will increase to 60 a day [Iskandar Sazlan, June 2004]. Apart from this, the Straits of Malacca is the ideal passage compared to haulage over land especially for the transportation of large quantities of heavy goods from the Indian Ocean to the South China Sea. The Straits is sheltered from large waves and strong winds, in other words the risks and costs are much lower compared to other routes. Alternative routes via the Straits of Sunda, Lombok or the Makassar to the South China Sea are available; should the passage through the Straits of Malacca ever be blocked. However the closing of the Straits of Malacca will doubtlessly cause a sudden rise in transportation costs. The experience of the closure of the Suez Canal during the Arab-Israeli war in the 70s showed that the cost of transportation rose several times over. The closure of the Malacca Straits would have a similar impact not to mention the rise in oil prices, which would surely have an impact upon the economy of the world. This is why the passage through the Straits of Malacca represents the best of all routes compared to alternative sea routes, or land or air. It is this strategic factor that brings US interference to the security arrangements of the Straits of Malacca. Even though US ships makes up only 4% of the traffic through the Straits of Malacca, it is still importance to the US’s key trading partners Korea and Japan as well as her major companies situated around the Asia Pacific rim. This forms the greater factor for the US to interfere in this area. This is the factor that influences economic growth, politics and her military as formally detailed in the Ocean Policy “…The United States has historically been a world leader in international ocean policy, participating actively in the development of international agreements that govern the planet’s ocean areas and resources. That leadership must now be reaffirmed and reinvigorated by acceding to the United Nations Convention on the Law of the Sea, enhancing the participation of all ocean-related federal agencies in international discussions and negotiations, and taking a leading role in building international capacity in ocean science and management, particularly in developing countries.” [ U.S. Commission of Ocean Policy, September 2004]. In the year 1990, General Norman Schwarzkopf, the General responsible for the attack on Iraq in 1991 told the US Congress that, " Middle East oil is the West's lifeblood. It fuels us today, and being 77% of the free world's proven oil reserves, is going to fuel us when the rest of the world runs dry." That was in 1990. And now America has invaded Iraq in order to control the oil of the Middle East. It is also moving to control the world’s oil supplies and ‘energy chokepoints’. China and India are growing rapidly and are now becoming major importers of oil in their own right at a time when the supply of oil to the US from the North Sea to Alaska is beginning to shrink. Here we can begin to see the future global energy conflict beginning to take form. The US government has identified the Straits of Malacca as a “world oil transit chokepoint” and considers it as one of the most strategic waterways of the world. In an article by William Engdahl in the Asia Times on this issue, he writes, Control or militarization of Malaysia, Indonesia and Myanmar would give US forces chokepoint control over the world's busiest sea channel for oil from the Persian Gulf to China and Japan. It would be a huge blow to China's efforts to secure energy independence from the US. Not only has China already lost huge oil concessions in Iraq with the US occupation, but China's oil supply from Sudan is also under increasing pressure from Washington. (“Oil Factor in Bush’s War on Tyranny” F. William Engdahl, Asia Times, 3 rd March, 2005). Although this is merely one person’s analysis, the facts show that America’s strategy is aligned with gaining control over strategic waterways such as the Malacca Straits, which will serve to consolidate the economic, political and military hegemony of the US – in accordance with the American aspiration for world domination. Furthermore, with China and India as the US’s economic rivals this forces the US not only to try to maintain her position as the policy maker but also as the only party that is responsible for chairing it. [The political scenario of the Nusantara in facing the US] The National Intelligence Council (NIC) a body from the CIA produced a paper entitled ‘Mapping the Global Future’ in which it mapped possible future world scenarios. In one, a Khilafah of Islam rises in 2020 and dominates the world. This scenario exists because the US can sense that the Khilafah is a certainty and only a matter of time. The establishment of the Khilafah would clearly be a political challenge to the future interests of the US. Due to the fact that the Nusantara (Malaysia, Singapore, Indonesia, Brunei, Philippines, Cambodia), has one of the largest concentrations of Muslims as well as possesses one of the most strategic waterways in the world it is logical to assume that if the US gained control or a foothold in the Straits of Malacca, it would be ideally placed to oppose, attack and destroy the nascent Khilafah if it arose in the region. Furthermore, they have accused countries within the Nusantara of harbouring‘ terrorism’. It would be a simple matter to justify American ‘intervention’ in the wider political, economical and military affairs of South East Asia. The US has already had various joint exercises with the militaries of Thailand and the Philippines. Singapore, which has become a staunch ally of the US within the Nusantara has become their mouthpiece, ear-bending Malaysia and Indonesia to accept the US’s existence and control of the Malacca Straits. However, the Deputy Prime Minister of Malaysia, Datuk Seri Mohammad Najib Tun Razak was resolute in stating that Malaysia maintains her stance in not agreeing to compromising the sovereignty of the two countries (Malaysia and Indonesia) by the existence of a third power in the area of the Straits of Melacca. Furthermore, the existence of the third party, would not bring any benefit to the surrounding countries. [Bernama.com.my, 5 th June, 2005]. From the experience of the Muslim Middle Eastern countries, America’s presence and intervention is invariably followed by military action especially towards Muslim countries. Iraq and Afghanistan are horrific reminders. The US is able to easily invade and destroy a country it dislikes. IF the neighbouring countries support and permit the US to establish or use bases as well as supply logistical support within their lands. The lands surrounding the Straits of Malacca would provide a strategic base. It is from this base that the US could assault and attack any country within the region that might dare to defy her. The Deputy Prime Minister of Malaysia has stated that South East Asia, especially the countries that border the Straits of Malacca, must learn the lessons of the failure of the invading armies led by the US in what they claimed was their mission to ‘liberate’ Iraq. [Utusan Malaysia 7 th June, 2004]. Nevertheless, Datuk Seri Mohammad Najib has yielded a little in Singapore recently, in which he called for the international community members who have most benefited from the waterway, to contribute to its security in the form of assets, capability and man power in order to step-up security to the pointthat it becomes less attractive to pirates and terrorists. [Bernama.com.my 5 th June, 2005]. He nevertheless, expressed his confidence that the countries bordering the Straits of Malacca were able to guard and police the security of the Straits, themselves. Perhaps for now Malaysia as one of the countries bordering the Straits of Malacca, can resist international pressures especially from the US. However, how long will her leaders be able to fend off US’s pressures for intervention? From the facts on the ground, it is reasonable to expect the US pressures to grow stronger day by day. Many regions of the Islamic world are today under the control of the kuffar, the Suez Canal of Egypt is now under international control whilst the Straits of Gibraltar (Jabal Tariq) is under joint Spanish and British control. And who might be controlling the Straits of Malacca in the future? For how long shall we Muslims bow to the whims and instructions of the kuffar? Who is it that could protect and guard the Muslim lands? There was a time when we the Islamic Ummah, were free of any power or authority other than that of Allah subhanahu wa ta’ala and were free of the influence, wishes and commands of the kuffar. Before, the Islamic Ummah were respected and held in awe by the kuffar. Before the Islamic Ummah was cared for, their affairs managed, their lands under the protection of the Khalifah. The Khilafah was a powerful and secure, and the Muslims were respected and lived noble lives on this earth. It is only by the implementation of the hukm of Allah subhanahu wa ta’ala through the Khilafah will we be truly protected. “Verily, the Imam is the shield behind which we are protected and we fight” (Riwayat Muslim) Everyone of you is a shepheard, and will be asked of you, that which you hearded and protected. The Imam is a shepheard, and he willl be asked about that which he hearded. (Riwayat Mutaffaq ‘alaih) Oh noble Muslims. It is fard upon us to care for the affairs of the Muslims whether within or without the borders of our lands. It is not good for us to remain silent and uninvolved. Selfishness will only bring about disaster upon ourselves and the wider Islamic Ummah. We must not be negligent nor detached from the issues of the Islamic Ummah lost in the luxury of our own lives. Remember the words of our beloved Rasulullah SAW: “However wakes up in the morning and their attention is to other than Allah, therefore they will have no affairs with Allah. And whoever wakes up and does not think about the affairs of the Muslim, than he is not from amongst them (i.e. the Muslims)” (Riwayah Hakim from al-Khatib from Hudzaifah RA) It is time for the authority of Islam to return. It is time for the glorious history of Islam to return. © Khilafah.com.

Selendang Ayu: report findings
Blame for the wrecking of the bulk carrier Selendang Ayu and the 1,100 tonnes of spilt oil is being laid at the feet of the ship’s captain as well as USCG, state and federal agencies, in a report by the environmentalist-oriented Alaska Oceans Program. The report was commissioned to investigate the spill off Unalaska Island, which is still being cleaned. The captain should have sought safe harbour to effect repairs “instead of attempting repairs in a building storm with a lee shoreline,” the report said. But, the Coast Guard and state environmental agencies are also criticized for being unprepared for the accident in December last year. More powerful and manoeuvrable ocean-going tugs in the area and the development of “open ocean oil spill response vessels” are called for. Concerns are raised that depletion of the Oil Spill Liability Trust Fund may hamper efforts to prevent future spills. © Lloyd's Register - Fairplay Ltd 2005.

Singapore port champions cruise growth: PSA determined not to be left behind by Marcus Hand
Singapore port champions cruise growth: PSA determined not to be left behind by Marcus Hand Singapore is looking to build a new cruise terminal by the end of the decade to cater for the latest mega ships. “There is a need to cater to the long-term requirements of the cruise sector, especially for the handling of the new mega ships,” Brigadier-General Tay Lim Heng, chief executive of the Maritime & Port Authority of Singapore, told guests at a function to celebrate a S$5m (US$3m) upgrading of the Singapore Cruise Centre. Last week, PSA Singapore revealed that it is studying whether to build a dedicated automotive terminal to meet growing demands for regional transhipment. Japanese lines are keen to be involved in its management. Singapore’s current cruise terminal has size limitations due to its location and its turning circle is not large enough for the biggest cruise ships, resulting a number of ships having to dock at PSA Singapore’s container terminals instead of the cruise centre. “Careful consideration will have to be given to many factors including the size and location of the additional cruise facilities,” Brig-Gen Tay said. The concept of building a new cruise terminal at Marina South has been mooted on a number of occasions in recent years. Genting Bhd and Star Cruises’ joint bid to build an integrated resort and casino is understood to include plans for a new cruise terminal. With the SCC target to hit its capacity of 1.2m passengers annually by 2010, Singapore is concerned that at its stays ahead of other upcoming cruise terminal developments in Asia. “New facilities would also help Singapore position itself against other Asian ports such as Shanghai, Hong Kong and Goa that are reported to be building new cruise facilities. These ports will be out to woo the international cruise lines to deploy ships at their ports,” Brig-Gen Tay said. Cruising in Asia remains relatively underdeveloped when compared to Europe and North America. Over the past decade Malaysian-owned Star Cruises has dominated the market but other international cruise lines are now starting to base ships in the region on a seasonal basis. P&O Cruises will be basing the 1,200 passenger capacity Pacific Sky in Singapore from February to October 2006. “To stay ahead in the game, Singapore needs to plan for world class cruise facilities to attract more ships to homeport in Singapore,” Brig-Gen Tay said. © 2005 T&F Informa UK Limited.

Singapore unveils S$3.5m transponder scheme by Marcus Hand
The Singapore government is spending S$3.5m to equip all licensed small craft with transponders to increase security in its port. Singapore has developed the Harbour Craft Transponder System, which costs less than S$1,000 against AIS transponders which cost seven to 10 times as much. Craft under 500gt not covered by the International Ship & Port Security Code were identified last year as an area that required greater security. The transponders will have to be fitted to all licensed harbor and pleasure craft. The cost will however be borne by the Singapore government with a S$3.5m contract for the equipment already awarded to ST Electronics. Over 3,000 craft will have the transponders fitted in phases, with the first 500 expected to be completed by December this year. © 2005 T&F Informa UK Limited.

Straits a terrorism-risk area by T. Selva
The Malaysian maritime fraternity has come out in force to protest against the declaration of the Straits of Malacca as a high-risk area for war and terrorism. A June 20 list issued by the Lloyd’s Market Association’s Joint War Committee (JWC) has lumped the Straits together with 20 other areas, including Iraq, Lebanon and Nigeria, deemed as security threats to shipping. The move is expected to result in higher insurance costs for shipowners using the sea passageway. It is understood that the JWC’s decision to declare the straits a high-risk area is owing to recent cases of pirate attacks in the waterway. The Malaysian Maritime Institute (Ikmal) said it was incorrect to place the Straits of Malacca under such a category because there had been no case of war or terrorism in the waters so far. Ikmal president Capt Jaffar Lamri said the armed robberies reported in the 600km sea lane had occurred primarily in Indonesian waters off northern Sumatra and not the entire stretch of the Straits. “To categorise armed robberies or piracy as equivalent to war and terrorism is unfair to the littoral states. “The direct result from this decision will be forcing shipowners to impose additional insurance coverage. “Shipping cost will increase and will affect consumers and the Asian region that is currently experiencing tremendous growth,” said Capt Jaffar. He said the action by the JWC would result in the maritime community viewing the Straits of Malacca as an unsafe area. “This is a bad branding exercise for the Straits and it does not reflect the actual situation. Many efforts have been taken by Malaysia and the littoral states in fighting piracy. “The Malaysian Government, Singapore and Indonesia should protest this declaration by JWC not only to Lloyd’s but also to the International Maritime Organisation,” he said. He said Malaysia should come up with a comprehensive reasoning and justification on why the declaration was unjustified. Capt Jaffar said all the three countries should come together to reverse this negative branding of the Straits of Malacca. He said statistics on piracy cases and the enforcement and preventive measures being taken by the agencies must be highlighted to the highest international maritime body and world maritime community. Maritime Institute of Malaysia (Mima) director general Datuk Cheah Kong Wai said the decision was definitely an “over reaction” to the piracy threat in the Straits of Malacca. He said the highest number of piracy attacks reported in the Straits was in the year 2000, but since then the numbers had reduced dramatically. There were 17 cases in 2004 and four cases in the first thre months of 2005. He said compared to the 64,000 of ships transiting the Straits annually, the exposure of a ship being attacked is 0.02%. “It is accepted that piracy is a threat in the Straits of Malacca but the likelihood of a nexus between piracy and terrorism in the Straits is presently remote. “The piracy threat is certainly not similar to war risk areas and therefore to declare it a ‘war risk area’ is not appropriate. “Declaring the Straits of Malacca a high-risk area will not only increase the cost of shipping through increased insurance cost, it will also subject such ships to the mercy of insurance companies,” he said. International Shipowners Association of Malaysia (ISOAM) vice-chairman Ooi Lean Hin said any increase in the cost of insurance would hike the shipping cost in Asia. “Should the insurance companies levy additional premium for vessels transiting the Straits of Malacca and depending on how high the additional premium is, it is likely that shipowners will pass on this additional cost to shippers. “This surcharge if implemented will however not affect Malaysia’s competitiveness in the global market as it will be applied across all cargoes transiting the Straits.” Ooi said the Strais of Malacca was the most economical sea route for vessels plying between Asia and India Sub-Continent, West Asia and Europe. He said the threat for war and piracy posed a different nature of threat. “The threat of war poses risks like missile attack on ships including kidnap of vessels and crew. In the case of piracy, the pirates are robbing the ship of its valuables although there have also been instances where the whole ship, cargo and crew vanished. “There is however a common risk in both instances in that in both cases, the ships, its crew and the cargo it is carrying is at risk,” he said. Whether the threat of war or piracy is more serious, he said it is perhaps better answered by the insurers. He said but if one were to compare the number of incidents of which the ship was put at risk, he believes piracy stands out as the greater risk. Ooi said the responsibility of improving the security for ships transiting the Straits of Malacca should rightfully be with all parties using the Straits of Malacca for transit. He said Malaysia and its neighbouring countries due to its territorial rights have the responsibility of improving the security systems and patrol but the costs of providing an effective security system for ships plying the Straits should rightfully be shared by all users of the water way. After all, he said the Straits of Malacca is an international sea lane and Malaysia and its neighbours bordering the Straits should not be made to bear all the costs for the safety of the international community. Ooi said funds should also be channelled to weed out piracy at its source, which is at Sumatra, Indonesia. © 1995-2005 Star Publications (Malaysia) Bhd.

Straits Security To Remain At Current Level Despite London Bombings
Kuala Lumpur - Malaysia has no plans to bolster maritime security in the Straits of Melaka in the wake of the bombings in London but will maintain the current arrangement to monitor the busy waterway, according to the Royal Malaysian Navy (RMN). "We will maintain the current maritime security level because there are no indicators to increase (security) in terms of the maritime context," RMN Assistant Chief of Staff (Plans, Strategy and Operation) First Admiral Ahmad Kamarulzaman Badaruddin told Bernama Monday. He was asked to comment whether Malaysia would tighten maritime security in the wake of the terrorist bombings in London which killed at least 50 people and injured about 700 last Thursday. Ahmad Kamarulzaman said maritime security was a complex issue given the 900-km stretch of the straits, a popular international sea lane to some 100,000 vessels which ply the route yearly. "The enforcement agencies face complex challenges because of the high density of traffic and it is such a huge area and involves many stake holders, including countries and agencies which have their own priority," he added. He also said that Malaysia and the RMN were committed to ensuring that security was well managed along the busiest waterway where a quarter of the world's trade and half of its oil pass through. "This is to provide assurance to our international users that the straits is safe. "In fact, if you look at statistics, the Straits of Melaka is one of the safest straits in the world; the incidences (of threats) are small (in number) and relatively the risk factor is very small," said Ahmad Kamarulzaman. Meanwhile, Transport Minister Datuk Seri Chan Kong Choy said "business is usual" when asked whether the government will heighten security along the straits following the London tragedy. Chan opened the three-day seminar on the Indian Ocean Research Group International Conference which was jointly organised by the Maritime Institute of Malaysia (MIMA) and RMN. However, he said the government would not tolerate any form of security threat in Malaysian waters, be it small-scale robbery or piracy. Speaking at the same press conference, MIMA Chairman Vice-Admiral (Rtd) Datuk Seri Ahmad Ramli Mohd Nor said the straits was still the safest sea lane. He also dismissed a newspaper report today that said the straits was a terrorism-risk area. "It is over-reaction and dramatised (the threats). If you compare (piracy) statistics, the Straits of Melaka is one of the safest straits in the world," he said. At the height of piracy attacks in 2000, only 37 cases, including theft on boats and fishing vessels, were reported, he added. © 2005 BERNAMA.

Third Round of Talks on Sulawesi Claims Concludes by Mohd Nasir Yusoff
Jogjakarta - The third round of talks between Malaysian and Indonesian technical experts on the disputed maritime borders in the Sulawesi Sea ended here Tuesday night. Neither the Malaysian nor Indonesian side issued any statement on the outcome after the two-day meeting. A Malaysian official, when contacted, said the discussion was carried out in a friendly atmosphere and both sides exchanged notes on their arguments. The first round of talks was held in Bali and the second in Langkawi. Unlike the first meeting which was widely reported in the Indonesian media, the latest round passed unmentioned. Malaysia and Indonesia have awarded concession areas for oil and gas exploration to international oil companies which overlapped each other in the Sulawesi Sea. The dispute became a hot issue that triggered demonstrations in Indonesia early this year. However, the situation returned to normal after the top leaders of the two countries pledged to resolve the disputing claims through negotiation. © 2005 BERNAMA.

Tracking systems for fishing boats
Kuala Lumpur - To check illegal fishing, which costs Malaysia about RM1 billion in losses a year, the country’s 900-odd deep-sea fishing vessels will be required to install tracking transponder systems from next year. The "Vessel Tracking Monitoring System" will enable maritime authorities to locate, identify and monitor the activities of fishermen authorised to fish in designated waters. The system costs about RM20,000 a set. Deputy Agriculture and Agro-Based Industries Minister Datuk Seri Mohamed Shariff Omar said today that unregulated and illegal fishing affected not only the livelihood of local fishermen but also conservation of marine resources and biodiversity. From 1999 to 2003, 13,687 local fishermen were arrested and 4,360 vessels seized for illegal fishing. During the same period, 4,235 foreigners were arrested and 448 vessels seized. Shariff said this at a Press conference after opening the five-day Global Fisheries Enforcement Training Workshop at the Crowne Plaza Mutiara Hotel in Jalan Sultan Ismail here. © NST Online.


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