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June 2007


WEEK 1 & 2 (1 - 9 June 2007)

24 hour Surveillance Ensures Security Of Sabah Waters
Kota Tinggi - The Royal Malaysian Navy (RMN) is asking foreign media and diplomatic missions which claimed the waters off Sabah's east coast to be unsafe, to go to Sabah to see for themselves the security situation there. The RMN has guaranteed that the waters there to be safe due to tight 24-hour security surveillance by the navy, army, police, Malaysian Maritime Enforcement Agency (MMEA) and other relevant government agencies. RMN chief Admiral Tan Sri Ramlan Mohamed Ali said foreign media reports and travel advisories issued by certain foreign diplomatic missions on security in the area were wrong and baseless. "The reports I receive daily show that the waters off Sabah's east coast are safe. I don't know why they (foreign media and diplomatic missions) say otherwise. "I cannot accept their claims. They have to go to Sabah to see the real situation for themselves," he told reporters here after a ceremony to mark the end of training for RMN and MMEA recruits/trainees at KD Sultan Ismail in Tanjung Pengelih. Ramlan said despite the claims, tourist arrivals to the area were on the increase, indicating that it was safe. He added that the RMN had also placed its combat troops in that part of Sabah to prevent any untoward incident. Some foreign media and diplomatic missions in Malaysia have claimed that the east coast of Sabah and its waters are not safe and have advised their citizens not to visit the tourist spots in the area. The Australian High Commission in Kuala Lumpur, through its website, has advised its citizens to reconsider their plans to visit the area or to go diving in the waters there for fear of being kidnapped by terrorists. The message reads: We strongly advise you to reconsider your need to travel to coastal resorts and other centres and islands and dive sites off the east coast of Sabah because of high threat of kidnapping by terrorists. The US State Department in its statement posted on the website of the US embassy in Kuala Lumpur also cautions its citizens on the risk of visiting the area. Ramlan said the fact that foreign battleships had chosen Kota Kinabalu as the relaxation stop for their crew members also indicated the high level of security in the waters off Sabah. © 2007 BERNAMA.

Fishermen blame pollution for depleting fish population by Loong Meng Yee, Eddie Chua and Nik Khusairi Ibrahim
Kuala Selangor - Fisherman Koh Har Tiong loved the sea for various reasons – the fresh breeze and its vastness. He also loved it for the bountiful fish it provided. That was 10 years ago. Now, he is thankful if he can get 10 barrels of fish each time he goes out to sea, a far cry from the 30 barrels he used to haul in then. And the blue seawater has now turned murky, grey, smelly and lifeless. Not only is there less fish to catch, even the fish in his net are smaller. He blames pollution and the cutting down of mangrove trees as the reasons why the number of fish in the sea is getting smaller. “My house is just beside the river. A decade ago, the water was so clear we could see the bottom. “There were many fishes, crabs and prawns. We could catch them with our eyes closed,” Koh, from Kampung Sasaran here, said. Koh, 31, and his fellow villagers have watched the river die. They claim that upstream factories released effluents into the river while the mangroves along the banks of the river were chopped down. Rubbish started to float around as irresponsible people used the sea as a convenient dumping ground. “The chemicals polluted the sea and destroyed the seabed. When you damage the mangroves and the seabed, you kill the fish because they have no place to lay their eggs and find food,” said Koh. Local freshwater and marine fish expert Prof Mohd Azmi Ambak said that in the last 50 years, some 20 species of freshwater fish had become extinct. Local fishermen, he said, were finding it hard to catch once common and abundant species such as the red and golden snapper. “Freshwater species such as seluang jalur emas, lias puteh, keli hutan and keli limbat as well as marine fish such as the telakai (short fin eel), ikan lelauh minyak (seven finger threadfin) and terubuk bengkalis can no longer be found in local rivers and seas,” he said. Dr Mohd Azmi called for better marine management, saying that at the rate the seas and rivers were being abused, Malaysians might not be able to find their favourite fish on their dinner tables in just a few years Koh agreed that some fish had become rare and were no longer seen. “An example is the lai liew har (mantis prawn). A decade ago, it was considered an inferior type of seafood and nobody bought them. “Now, they are highly sought after. Unfortunately, they are difficult to catch because they are hard to find at sea,” he said. Former fisherman Ng Hwa, 54, said the mudflats in and around Kampung Sasaran smelled bad because they were strewn with rotting rubbish. Like Koh, he blamed the discharge of waste from factories upstream. “Plastic is the worst. You throw them into the sea and they remain there for a hundred years,” he said. He said pollution caused the number of fish such as belanak (mullet) and tau tai (pomfret) and sai tou (wolf herring or ikan parang in Malay) to dwindle. © 1995-2005 Star Publications (Malaysia) Bhd.

Increased maritime patrols to curb encroachment by foreign fishing boats
Kota Tinggi - The Malaysian Maritime Enforcement Agency (MMEA) has increased its vessels and patrolling in waters off Sabah and the east coast of Peninsular Malaysia in view of increased encroachment by foreign fishing boats of late. Its deputy director-general (Operations) Rear Admiral (Maritime) Noor Aziz Yunan said the agency recently detained several foreign fishing boats, especially off the east coast of the peninsula. The boats were mostly from Vietnam and Thailand. Malaysian authorities detained two boats from China in Sabah waters in March this year, carrying 17 crew members and laden with 300 turtles of a protected species. © 2007 NST Online.

Indonesia wants help to secure waterway
Singapore - Indonesia’s defence minister called on Japan, China and South Korea yesterday to help his cash-strapped nation secure the vital Malacca Straits, the busiest sea lane in the world. Juwono Sudarsono asked the three nations, East Asia’s wealthiest economies, to provide technical assistance for the Straits, which handles 40% of global trade and half of all oil shipments worldwide. “What we lack in Indonesia is effective capacity to deploy resources, equipment, ships,” he said at the annual Shangri-La Dialogue, a regional security conference. “We would like to appeal to China, Japan and South Korea to provide the technical assistance on an Asean-wide basis as well as on a bilateral basis to the littoral states,” he said. Asean is the 10-member Association of Southeast Asian Nations. Indonesia had a huge responsibility to secure the sea lanes in the Malacca Straits because of its size and strategic location but did not have the financial means to do it all alone, said Sudarsono. Indonesia, Malaysia and Singapore have implemented coordinated air patrols in the Straits but Jakarta faced limits on what it could do, he said. “There is tremendous responsibility,” he said. “But I am facing tremendous problems.” If Indonesia allocated more for its defence needs, it would mean less funding for the country’s social and economic programmes like building more schools and hospitals, said Sudarsono. Indonesia’s defence budget is less than 1% of the country’s annual gross domestic product of $400bn, which translates into $3.2bn a year. In comparison, Singapore, which has one of Asia’s most modern armed forces, will increase its defence budget by 5.3% this year to an estimated $6.87bn, according to the national budget. “So the contrast is very stark,” the Indonesian defence minister said, adding that was why the vast archipelago must work with its neighbours. The prosperity of East Asia and Southeast Asia is heavily dependent on safety in the Malacca Straits, since the passageway accounts for 40% of global seaborne trade. Half of the world’s oil shipments also pass through the 960km Straits, the busiest seaway in the world. It links the Indian Ocean and the South China Sea and also passes Malaysia and Singapore. “It’s very important for us, it’s very important for countries in the region and very important for the global economy,” said Sudarsono. He said the United States was still the dominant provider of security in the Asia-Pacific region but Japan and China, because of their economic might, would also want to be involved. That would come “by enhancing their naval capabilities within Northeast Asia and across Southeast Asia because of the sea lines of communication and the links with energy security to the Gulf area”, said Sudarsono. Singapore Defence Minister Teo Chee Hean said any moves by Japan and China to extend their naval reach in the Malacca Straits, through which more than 70% of their oil imports passes, must be in line with international law. “Japan and China are extending and strengthening their maritime reach, to have a greater direct ability to influence the security of the sea routes through which their energy supplies pass,” said Teo. “While this is to be expected, countries in the region also expect that this should be done in a way which is constructive, and which is consistent with international law.” © 2007 Gulf Times Newspaper.

Korea to enact ballast bug legislation
Seoul - South Korea is to enact ballast water treatment legislation later this year that aims to protect Korean and ‘other’ waters from harmful organic species. “The law will be passed this year, in time to meet IMO ballast water treatment requirements in 2009,” a source said. It has received full support from the Korean shipping community. The maritime affairs ministry quotes from the IMO that between 3Bn and 5Bn tonnes of ballast water, containing thousands of harmful organic species, is pumped into Korea waters each year. Although most of the organic matter is destroyed, enough gets through to harm the ecosystem. Passage of the bill will mean greater use of Korea’s Techross system for killing harmful organic matter. Techross chief executive Lee Kang Pyong says the electrically-charged system has met all IMO requirements. © Lloyd's Register - Fairplay Limited 1999 - 2006.

Malacca sets sail on a quest to draw more tourists
Malacca - Imagine cruising on the Straits of Malacca at night, enjoying the breeze while taking in the sights of the historical town. With the calm waters of the straits on one side of the boat and historical sites like the A’ Famosa, lit up by spotlights, on the other, such a cruise is bound to be popular. Chief Minister Datuk Seri Mohd Ali Rustam said he was confident the "Malacca Cruise" would be "hot" with locals and foreign tourists. "We are looking for a partner to undertake this project and Boat Explorer Sdn Bhd, a boat builder based in the historic city, is keen on helping us make this a reality. "The cruise boat can accommodate 40 people and it would travel along the coast while diners enjoy their lunch or dinner," he said, after launching Boat Explorer’s first passenger ferry at the Seafarer Restaurant in Kelebang yesterday. The cruise will also be undertaken during the day. The ferry, the first in the country to be built under the Marine Department classification, cost RM800,000 and will be used to take passengers from Kuala Besut to Pulau Perhantian, in Terengganu. Boat Explorer managing director Mike Thien, who accompanied Mohd Ali, said he would call a meeting next week to discuss the design of the cruise boat. "This is a good idea and will be a new tourist attraction in the country. This will be a hit as Malacca is just beautiful from the sea, especially at night. When all the lights are on, the view is breathtaking," he said. Thien said once the state government agreed on the plans for the boat, Boat Explorer would take between six and eight months to build it. He said the boat should be ready for operations early next year. © 2007 NST Online.

Many popular fish species fast disappearing
Kuala Lumpur - Your favourite fish may not be on your dining table in 10 years. Fish are becoming harder to catch and getting smaller in size. Local freshwater and marine fish expert Prof Mohd Azmi Ambak said the depletion of some marine species was worrying. “Land reclamation, silting, deforestation, water pollution and the disappearance of the mangrove swamps has disrupted the fish food chain and breeding patterns of some of the species. “Global warming, the changing currents and tide patterns have also affected the marine eco-system, resulting in some species disappearing or becoming harder to find,” said Dr Mohd Azmi, a senior lecturer at Universiti Malaysia Terengganu’s Fisheries and Aquaculture Department. He said too much fishing and poor enforcement on the use of nets had also caused many common marine species to dwindle in population. “There is a need to act quickly to save and protect the species from total extinction. There is also a need to educate the public, including fishermen,” he said. He said species like the short fin eel (telakai), seven finger threadfin (ikan lelauh minyak) and terubuk bengkalis spawned in the mangroves. “With mangrove swamps being destroyed for wood or reclaimed for development, these species have disappeared,” he said. In Penang, Fishermen Association (southern district) chairman Arshad Omar claimed that humans were responsible for the depletion of many kinds of fish. “Trawlers are fishing wantonly. Their activities pollute the seabed, making the water murky, destroying the corals and reducing fish and prawn populations.” The human factor, he said, was worse than the pollution factor. People are literally eating fish into extinction. A fishmonger in Bayan Lepas, known as Ah Lim, said he had to source fish from other northern states to meet demand in Penang. He said they could not let their customers down, especially during the festive season, when some were willing to pay RM45 per kilo for certain species.” © 1995-2005 Star Publications (Malaysia) Bhd.

More needs to be done for maritime security: defence ministers by S Ramesh
Singapore - The often-debated subject of maritime security took centrestage on the final day of the Shangri-La Dialogue, with the focus, once again, placed on the Straits of Malacca. While defence ministers and naval commanders agree there has been progress, they said more effort is needed to defend the sea-lanes of communications. Ministers also welcomed the high-level participation of China and Singapore's Defence Minister Teo Chee Hean said it shows a new readiness on China's part to engage countries in the region on security and defence matters. The Shangri-La Dialogue achieved several important objectives, said organisers, including enhancing confidence in military development and gaining a better understanding of US-China ties and the modernisation programmes of some countries. US Defence Secretary Dr Robert Gates said: "In terms of our bilateral relationship, I wouldn't describe it as a breakthrough but as a next step in a process of military-to-military conversations which we will continue in the future." Enhancing the effectiveness of the various security architecture forums was very much on the minds of the participants on the final day of the Shangri-La Dialogue. In particular, they were concerned that more needs to be done to further strengthen maritime security, especially in the Straits of Malacca as 40 percent of the world's trade passes through the waterways. For Indonesia, the safe passage of maritime traffic in the straits is critical for its economy. Indonesia Defence Minister Professor Juwono Sudarsono said: "We have no aims to develop strike force capabilities beyond our borders because we have enough domestic problems to face – principally poverty, unemployment and inequities in development. "Our defence budget is less than one percent of GDP, less than the defence budget of Singapore, so the contrast is very stark. That is why we have to work with our neighbours to develop a capacity. We wish to assure our neighbours in the region that the real need for capacity building in our defence forces is to provide that semblance of governance that is necessary for economic development and economic recovery." And Singapore is more than ready to aid in the process. Mr Teo said: "We have a radar surveillance chain in the Singapore Straits and we have actually extended the picture to Indonesia's command centre so that they can see the same picture. I think that indicates the level of transparency and information sharing and it also enables quicker response when we want coordinate our activities in the Singapore Straits. "The 'Eyes In The Sky' is a very good example. We may not always have the resources that we need and we may have to move resources from one place to another so the suggestion that came from Malaysia's Deputy Prime Minister Najib Tun Razak was actually quite a novel one. His suggestion was that we take aeroplanes which have surveillance capability, put the observers from the three littoral states in the back and they can pass information to the command centres from each of the countries. "With such an arrangement, we could really bring on board resources from many countries and carry out surveillance in specific areas without having to infringe upon the sensitivities and sovereignty of individual countries." The US Pacific Command believes there has been much improvement in the Pacific and Indian Oceans on maritime security cooperation and no significant incidents. Admiral Timothy Keating, Commander, US Pacific Command, said: "We have discussed enhancing maritime security throughout the region. It is a matter of significance and importance to us in the Pacific Command. We are not satisfied with the current state but we are pleased with the progress we've made." Organisers of the Shangri-La Dialogue – the International Institute of Strategic Studies – are planning a bigger conference next year to commemorate the Institute's 50th anniversary. © 2007 MCN International Pte Ltd.

Southeast Asia urged to develop military links with China, Japan for maritime security by Gillian Wong
Singapore - Japan and China are set to play a major role in the maritime security of Southeast Asia, and there is a «tremendous» need for the region to develop a strong military relationship with them, a top Indonesian official said Sunday. Defense Minister Juwono Sudarsono told a regional defense conference that the United States remains the main security provider for the region, a transit point for ships carrying oil and other goods from the Middle East to Northeast Asia. The ships pass through the key Malacca Straits through which about 30 percent of all global trade and half the world's oil is ferried. The countries straddling the straits _ Indonesia, Malaysia and Singapore _ as well as the Philippines and Thailand have traditionally depended on the United States to ensure their maritime security. «But with the rise of Japan and China as economic powerhouses, there is a tremendous need to recognize that these two major countries will also want to codetermine» the security of the region, Sudarsono said. Japan's economy is estimated to be US$4.5 trillion (¤3.4 trillion), China's US$2 trillion (¤1.5 trillion) while South Korea is more than US$1 trillion (¤770 billion), he said. Although the U.S. presence in the region is considered crucial, Indonesia and Malaysia have rejected the possibility of a foreign military presence in the pirate-infested Malacca Strait despite fears that terrorists could link up with pirates to blow up an oil tanker or use it as a floating bomb. Thanks to increased coordinated patrols by the three Malacca Straits countries, pirate attacks there have been on the decline since July 2005, with 11 cases last year. Sudarsono noted that the economies of the 10 members of the Association of Southeast Asian Nations are closely linked to those of China, Japan and South Korea. Therefore «there is a tremendous interest for us in Southeast Asia to link up and provide some degree of comfort level, (military-to-military) relationship between the armed forces of the Southeast Asian countries and Northeast Asia,» Sudarsono said. He said the importance of Japan, China and South Korea to the United States is simply because these three economic powerhouses underwrite the U.S. trade and financial deficits. «We must look at the nexus of politics, economics and security in a wider sense, because the level of American willpower depends on how it overcomes the trade and fiscal deficit it sustains,» he said. «So long as China, Japan and South Korea underwrite that deficit, the United States will bargain with each of the countries on the terms and conditions of its military presence in Northeast Asia.» © Associated Press.

Week 3 (10 - 16 June 2007)

Cabotage decree vs. IMO regulations; Time's running out by Yenwy Wongso
It was recently reported that two shipments of CPO from Indonesia valued at approximately US$1.6 million were denied entry into a Malaysian port as they were not being carried by the required double-hulled vessels. Starting Jan. 1, 2007, Malaysia introduced the International Maritime Organization (IMO) regulation requiring the scrapping of single-hulled vessels, vessels over 25 years of age, and vessels the fail to meet IMO 2 standards. The IMO also requires certain types of liquid cargo to be carried only by chemical tankers using double-hulled vessels (two layers of steel) for better protection. Officials from Malaysia and Indonesia are currently engaged in discussions to seek a compromise as most Indonesian vessels are single-hulled. Indonesia has asked for an exemption from the IMO requirement to allow time for an upgrading to double-hulled vessels. But the change can't be delayed forever. In March 2005, the Indonesian president issued a decree aimed at accelerating the development of the domestic shipping industry. As a measure taken to reduce foreign dominance of the industry, the decree stipulates: (1) that all domestic goods and imports destined for state-owned companies, and carried between the nation's seaports, must be carried by Indonesian-flagged vessels; (2) a reduction in the number of ports open to foreign vessels from 141 to approximately 20 to 30; (3) the need for fiscal incentives for domestic shippers; and (4) the necessity of developing financial services tailored to the needs of domestic shippers. This cabotage decree is designed to make it easier for Indonesian shippers to secure contracts since it reduces the likelihood of the renewal of foreign shippers contracts. Approaching full cabotage implementation in 2010, the supply of vessels is expected to tighten as foreign operators are forced to exit the domestic market. Combined with the IMO regulation, the availability of vessels will be further narrowed to those with double hulls. Two years after the issuance of the cabotage decree, there has only been limited progress to date. Recent statistics show that around 70 percent of domestic and overseas shipping cargoes are still carried onboard foreign-flagged vessels. What is actually hindering the implementation of cabotage and hence the development of the Indonesian shipping industry? Is it actually something to do with the cabotage decree itself? Financing problems have been blamed for the slow growth of the Indonesian shipping industry, as well as slow progress in the implementation of the cabotage decree. How many additional vessels does Indonesia need? The Indonesian National Shipowners Association (INSA) estimates that an additional 400-500 tugs and barges, and 80 Panamax (60k-80k DWT capacity) vessels will be needed to transport the 140 million tons of coal reserves found in Kalimantan alone. Meanwhile, around 50 additional tankers of between 15k DWT and 30k DWT will be needed to carry biodiesel. Hence, an investment of US$4.5 billion will needed to finance the procurement of these new vessels! A huge amount, indeed. Even if financing were to be available, the supply of new and second-hand double-hulled vessels worldwide is limited. Many shipping lines have rushed to order double-hulled vessels before the IMO bans single-hulled ships in 2010. South Korean shipbuilders (which had a 38 percent share of the global market in 2005) have experienced a surge in orders for new vessels. But today's new orders will only be delivered in four years time. Another problem is that most Indonesian shipping companies prefer to keep their vessels under foreign flags, which makes it easier to operate outside Indonesian waters, and to command better rates. Moreover, the early implementation of the IMO regulation in a number of parts of the world, such as Malaysia and the European countries, will further delay the implementation of Indonesia's cabotage rules. The inadequate supply of suitable Indonesian-flagged double-hulled vessels to carry liquid and chemical cargoes to Indonesia's overseas markets leaves little choice to the CPO, crude oil and liquid chemical producers than to charter foreign-flagged vessels. Given the limited time left -- only three more years until the full implementation of cabotage here, and four years for the building of new vessels -- the government needs to provide real incentives and proper regulations to help domestic shipping firms procure more vessels, rather than just verbal encouragement, as has been the case to date. For instance, the government could provide tax exemptions for those companies that are willing to reflag their double-hulled vessels as Indonesian. Action must be taken quickly, otherwise cabotage will become nothing more than an unrealistic target. © The Jakarta Post.

Chinese fishermen arrested in Indonesia for butchering endangered turtles
Jakarta - 23 Chinese fishermen would be tried in Indonesia for allegedly killing hundreds of endangered turtles, Antara reported Thursday. The 23 Chinese fishermen were caught by local customs officials in waters north off East Kalimantan on May 8. They brought 387 dead rare turtles in their ships. They would face up to five years in prison and a fine of Rp 100 million for the illegal activities. @ 2007 The Jakarta Post.

'Crush Malaysia' trauma and the zero sum game by Imran Imtiaz Shah Jacob
Border-line issues continue to dominate Malaysia -- Indonesia ties, as the calls to "crush Malaysia" echo from the days of Konfrontasi, or the dispute over the incorporation of Borneo into the then Federation of Malaya simmer in the background. On the ground in Malaysia, the general public is seemingly oblivious to the mounting tensions between the two nations. The near combat incidence over Ambalat island or also referred to as the Ambalat offshore area in the Celebes (Sulawesi) Sea off the east coast of Borneo (Kalimantan to Indonesia) brought the two nations to the brink of war. Malaysians were alarmed when news of the collision between the Indonesian naval vessel KRI Tedung Naga and Malaysian patrol boat KD Rencong broke but it did not give rise to anti-Indonesia sentiments. Perhaps the territorial dispute over the Sipadan and Ligitan islands in which Malaysia was accorded sovereignty by an International Court of Justice judgment in 2002 provides further background into the Malaysian mindset towards the issue. Ever since the ICJ judgment in Malaysia's favor there has been a tempered sense of victory, not in the fact that Indonesia lost the claim but because what has always been regarded as part of Malaysia has been affirmed by the international community. Malaysians had a heightened sense of confidence in their Government when the favorable ruling was delivered on the basis of "effectivitis" -- acts of administration demonstrating effective exercise of authority over the islands. Malaysia was well prepared to mount a stronger case against Indonesia's claim by referring to measures taken by colonial British North Borneo (now Malaysia's Sabah Province) authorities to regulate and control the collection of turtle eggs on the islands, as well as their construction of lighthouses on Sipadan and Ligitan in 1962 and 1963 respectively, and the subsequent operation of these lighthouses by Malaysian authorities post-independence. Historical sensitivities were refreshed as the effects of Singapore's secession from the Federation of Malaya in 1965 still haunts Malaysia. This time Malaysia was prepared to deal with territorial disputes effectively. Sipadan is now one of the top diving destinations in the world and the pride of Malaysia as far as tourism and biodiversity is concerned. Indonesia on the other hand, still recovering from the sense of loss over the separation of East Timor in 1999, had to deal with another blow to its national pride and sovereignty with the loss to the claim of Sipadan and Ligitan. Furthermore the disappearances of a number of tiny islets in the province of Riau, 800km northwest of the Indonesian capital, largely attributed to sand-mining for purposes of export to Singapore, is perhaps the final straw for Indonesia. The diminutive island of Nipah, for example, located just 20 kilometers from Singapore, is now practically underwater, raising serious concerns over possible altered maritime boundaries in Singapore's favor. Thus, it is no surprise that the technical committee set up by Indonesia and Malaysia to find solutions to the Ambalat dispute amid the most recently highlighted territorial claims by both sides to Gosong Niger, which is merely a submerged ridge of alluvial sand located 5.5 nautical miles off the terminus of the Indonesian (Kalimantan) and Malaysian (Sarawak) land boundary at Tanjung Datu on the South China Sea coast of the island of Borneo, deliberates away from public scrutiny and publicity. The Indonesian government, under intense pressure to protect and defend its sovereignty while not completely yielding to popular local sentiments, underscores the complexity in finding a way out to the conundrum. The apparent gun-boat diplomacy adopted by Indonesia is that Indonesia must strengthen its military to effectively negotiate with Malaysia. Indonesian MPs have also called for a hard line against alleged Malaysian territorial incursions. Observers argue that the reality is energy security is a zero-sum game. The large gas and petroleum deposits believed to be embedded under the sea bed of Ambalat are the prime motivating factor in the heated territorial dispute. Malaysia's gain would be Indonesia's lost and vice-versa. This approach to the problem is archaic and only serves to further inflame passions across the divide. A series of confidence-building measures that lead to a joint-exploration initiative in which both Malaysia and Indonesia share the resources equally must be the way forward. The fact is that economic diplomacy has so far managed to build a bridge over troubled waters in the Indonesian-Malaysia bilateral relations thus far and could also prove to be a solution to the territorial dispute. Malaysia was Indonesia's largest investor last year with huge sums of money flowing between the two nations in two-way trade. Therefore, adopting a confrontational foreign policy would result in war being the option to the full realization of Ambalat's natural resources and potential. Malaysia and Indonesia in the end will be the real losers. [The writer is a Kuala Lumpur-based lawyer. He can be contacted at imran.yacob@gmail.com] @ 2007 The Jakarta Post.

Experts cautious on Malaysian pipeline
Kuala Lumpur - Oil industry players have given only cautious approval to Malaysia’s multi-billion-dollar northern pipeline project, citing slowing oil demand in the Asian region and cost concerns. The owner of the project has said it will cost $7 billion and take over seven years to complete. It aims to transport Middle East oil to East Asia by diverting it from the congested Malacca Strait. “It saves you some money but it also costs a lot to build the pipeline,” the chairman of the Asia Oil and Gas Conference, Fereidun Fesharaki, said on the sidelines of the meeting, which has just been completed. “Studies should be done to see if it is really economical,” he said. The project’s owner, Malaysian firm Trans-Peninsula Petroleum, last month said the 300-kilometre (188-mile) pipeline will cut across the north of Malaysia’s peninsula with facilities for storage and transit of crude oil on both coasts. The oil will come mainly from the Middle East and also Africa for the East Asian oil market, especially oil-hungry China, the company said. However, Fesharaki, an expert on Asia-Pacific energy markets and a former energy adviser to Iran’s prime minister, downplayed rising energy demand in Asia. With the exception of China, demand for oil in the rest of the region is slowing because of higher prices, he said. “The pipeline assumes that demand will explode, but demand will not explode. That’s the real story,” he added. The pipeline development will be complemented by the construction of two refineries in northern Kedah state on Malaysia’s west coast, according to the state’s chief minister. Officials from Iran’s state oil company said during the oil and gas conference that the firm will invest in the construction of one of the refineries. They will also put money into a separate pipeline to transport Iranian-supplied crude from ships berthed in deeper waters off Malaysia’s west coast to the refinery. Ghanimi Fard, the executive director for international affairs with the National Iranian Oil Company (NIOC), said the success of the trans-peninsular pipeline would depend on the amount of oil demand from East Asia. “When we had a growing market for energy, it made sense but based on today’s information ... we may not be as sure of the viability of this pipeline,” he said. Koh Ban Heng, the chief executive of Singapore Petroleum Company Limited, said the pipeline was a good alternative to the Malacca Strait, but expressed concerns over the cost of the project. “We would welcome the pipeline for the sake of energy security because of the limited capacity of the Malacca Strait (but) a big company has to get involved in this, as the capital expenditure is huge,” Koh told AFP. Malaysia’s Prime Minister Abdullah Ahmad Badawi first announced the development last month as part of the government’s efforts to develop the country’s northern region. Trans-Peninsula has said the pipeline project will be operational by 2011, with a maximum capacity of 180 million barrels of storage and six million barrels per day throughput. Malaysia’s Ranhill Engineers and Constructors Sdn Bhd and Indonesia’s PT Tripatra are to build the pipeline, while Al-Banader International Group of Saudi Arabia will provide the oil, Trans-Peninsula said. On completion in 2014, the pipeline will divert about 20 percent of oil transiting through the Strait of Malacca, it said. Half of the world’s oil shipments currently pass through the 960-kilometre strait, the busiest seaway in the world, which links the Indian Ocean and the South China Sea. The Strait was notorious for pirate attacks but security officials, who fear the economic and strategic ramifications of any disruption to the vital maritime traffic, say security has vastly improved, though threats remain. © 2007 Times Internet Limited.

Fewer cases of piracy attacks in Malacca straits
Kuala Lumpur - Piracy attacks in the Straits of Malacca have decreased over the years and are expected to dwindle further. Deputy Internal Security Minister Datuk Mohd Johari Baharum said yesterday the straits was peaceful and there were "no problems" when it came to maritime security as there was co-operation between the littoral states. "This year, there has been only one incident so far, and if you look at the statistics on piracy attacks which have been going down, the situation is good," he said after opening the sixth tri-annual International Maritime Bureau (IMB) meeting on piracy and maritime security yesterday. The number of piracy attacks declined to 11 cases last year from 12 cases in 2005 and 35 cases in 2004, thanks to the concerted efforts of Malaysian enforcement agencies, he said. Asked if there was a risk of terrorists working with pirates to menace shipping, Johari said no instance of such collaboration had been reported by the navy and police. Pressed further on terrorist threats, Johari reiterated that the Straits of Malacca was in no danger, adding "in the future, it will be very safe for all ships to move around the area". Inspector-General of Police Tan Sri Musa Hassan said terrorism remained a "real and possible" threat in the straits, against which constant vigilance was required. "Terrorism will threaten the straits’ crucial trade route, skyrocket freight and insurance charges, put a damper on tourism and deprive fishermen of a livelihood. "Of prime concern is ships transporting hazardous materials, such as liquefied petroleum gas, which can be hijacked for a suicide mission to attack ports and land facilities," he said in his keynote address "Overcoming the challenges of piracy in the Malacca Straits: Issues and solutions". © 2007 NST Online.

IMB hotline to cover all crime
Kuala Lumpur - The International Maritime Bureau has launched a new hotline that director Pottengal Mukundan said goes beyond piracy reporting incidents. "Any maritime crime ranging from piracy to terrorism, human, drug or weapons smuggling on board commercial ships, can be reported to the new hotline," Mukundan said. "We have felt the need to broaden our reports," he explained. The IMB's Piracy Reporting Centre in Kuala Lumpur will continue to be the contact point for the maritime security hotline. Maritime crimes can be reported to the following e-mail address: imbsecurity@icc-ccs.org.uk "This confidential communication procedure will enable seafarers and others in the shipping industry to pass on suspicions regarding any maritime crime including terrorism on a 24/7 basis," the IMB has stated. Information will be promptly relayed to relevant law enforcement agencies for further action, the agency said. © Lloyd's Register - Fairplay Limited 1999 - 2006.

In the pipeline: Linking the peninsula's east and west by Kamarul Yunus
Come 2011, very large crude container (VLCC) vessels - between 200,000 and 320,000 tonnes - will start making their way into Kedah's waterways, mooring some 30km offshore Yan. These vessels can be up to a quarter of a mile long, 200ft high and as wide as a multi-lane highway. The stopping distance of such supertankers are typically measured in miles. Oil will be pumped out of these vessels and transported through a pipeline to a day tank storage facility located onshore. These activities are set to change the landscape of the existing fishing villages off the coast of Kedah, particularly near Yan, when the US$7 billion (RM24 billion) trans-peninsula (TransPen) oil pipeline project comes on stream in four years. An unlisted company, Trans-Peninsula Petroleum Sdn Bhd (TPP), is developing this mega 300km oil pipeline linking the west and east coasts of Peninsular Malaysia, crossing the states of Kedah, Perak and Kelantan. On May 28, TPP signed a Master Alliance Agreement with PT Tripatra Engineers and Consultants and Ranhill Engineers and Constructors to jointly develop the onshore oil pipeline and storage facilities. The agreement involves the construction of a receiving terminal in Yan; a tanker loading terminal offshore Bachok, Kelantan; a day tank storage in Yan as well as Bachok; main storage tanks in Jeli, Kelantan; and pumping stations along the pipeline route. The signing was witnessed by Prime Minister Datuk Seri Abdullah Ahmad Badawi and Indonesian President Susilo Bambang Yudhoyono. TPP also signed separate memorandums of understanding with PT Bakrie & Brothers for pipe supply, Al-Banader in oil supply and PT LAPI-ITB, the commercial arm of Institute Technology Bandung, to provide technical support to Tripatra. Analysts are saying that the pipeline and storage facilities will revolutionalise the crude oil market in Asia, with Malaysia as the base come 2011. "This is a well-thought and feasible project, from the oil economics standpoint for operators and users as well as clients," Aseambankers Malaysia Bhd said. According to Aseambankers, the TransPen project also offers alternative transit and strategic oil reserve facilities; reserve storage and energy security to the East Asian market; "monetisation" of petro-dollars; and development of a crude oil exchange in Asia. As for the impact on the Malaysian economy, the project could spin off infrastructure and economic developments along the northern corridor of the peninsula, as envisioned under the Ninth Malaysia Plan (2006-2010). Most importantly, the TransPen project could alleviate congestion in the Straits of Malacca where the transit of crude oil is concerned. Traffic along the strait is expected to worsen as demand for oil from East Asian economies, especially China, is anticipated to double to 20 million barrels per day (bpd) by 2020. This would lead to further congestion in marine traffic, which could result in higher probabilities of accidents such as collisions and oil spills. Such major mishaps could lead to a closure of the strait and disrupt freight, cause pollution, and prevent or delay the supply of oil to its destination. The TransPen project, when fully implemented, could potentially take away up to 25 per cent of the oil carried through the strait. This would translate into an absence of three fully-laden VLCCs coasting along the waterway each day. The reserve storage facilities, which cater for up to 30 days when fully upgraded to 150 million barrels, can serve as regional strategic reserves for the East Asian countries like China, Japan and South Korea. Energy security reserve management is crucial to maintaining a stable and predictable supply of oil at national price in case of emergencies such as the closure of the Straits of Malacca, weather and geopolitical conflicts. Excluding Japan, the majority of Asian countries have less than 90 days of strategic reserves, as recommended by the International Energy Agency. Acknowledging that the TransPen makes a lot of oil economics sense, Aseambankers said the project would reduce the freight cost of transporting crude from the Middle East to China. Using an Aframax vessel, it would cost US$4.60 (RM16) a barrel to carry crude along such a route. But by chartering a VLCC from the Middle East to Yan and later using an Aframax to continue on to China from Bachok, the costs would be US$1.45 (RM5) and US$1.65 (RM6) a barrel respectively, amounting to US$3.10 (RM11) a barrel for the entire voyage. "Effectively, this would result in freight savings of up to US$1.50 (over RM5) per barrel, and we estimate there will still be savings when customers use TransPen's storage facilities in Jeli," Aseambankers said. In addition, the pipeline project would result in faster turnaround and optimisation of oil tankers. By using the storage facilities, oil producers will be able to deliver oil to the East Asian market within seven days, versus 42 days via a VLCC from the Middle East to East Asia, with the time-savings coming from bypassing the busy and congested Straits of Malacca. © The New Straits Times Press (Malaysia) Berhad.

Majors must drive freight rate changes
Johor Baru - Major liner operators including Maersk, OOCL and APL must lead on freight rate adjustments or there will be no "harmonisation", says Kim Hansen, managing director of Maersk Malaysia. Speaking to Fairplay at the 5th Association of South East Asian Nations (ASEAN) ports conference, Hansen said the major players lose little business when a new or small operator cuts rates; the impact is minor and the move is ineffective. However, he stressed that the Southeast Asian market should not be controlled by a few major players: "the market should rule," he said. Hansen had earlier delivered a paper assessing the driving forces behind shipping growth. He also talked of the maritime spin-offs that could develop in a market of 1.7Bn people when barriers to trade with China are removed by an ASEAN Free Trade Agreement. © Lloyd's Register - Fairplay Limited 1999 - 2006.

Making sense of PTP move by Sharidan M. Ali
How can shifting all container operations from Johor Port to Port of Tanjung Pelepas (PTP) stop cargo leakages from the country to Singapore? The question is raised in view of the proposed plan to move all container operations to PTP, while Johor Port in Pasir Gudang, would handle all other cargoes such as bulk and liquid shipments. While many sceptics are keen to look at the increased transportation costs, let us first see the bigger picture that is of national interest. Currently, close to one million TEUs (20-ft equivalent units) are being fed to Singapore by sea and land annually. Of this, 300,000 TEUs come from Johor Port and 400,000 TEUs are from Port Klang. A further 300,000 TEUs are being trucked by land to Singapore for shipment to overseas destinations. Cargoes meant for Malaysia but imported through ports in Singapore are worth about RM33bil per annum. And cargoes being sent to Singapore from Malaysia are worth RM106bil per annum, of which only a small percentage is for Singapore’s consumption while the rest are being re-exported. Ports in Johor control only 15% of the region’s total container volume. This is very low compared with PSA’s market share of 67%. Thus, the rationale for the move of transferring all container operations to PTP is apparent – allowing the two ports to focus on their core activities and making them stronger specialised ports. In terms of capacity and infrastructure, PTP has ample space to cater to the increasing growth in world container trade at about 7 % per annum. Then came the issue of handling increasing size of vessels, in which PTP has the upper hand. Bigger vessels will be attracted to call at PTP if they have the right amount of hinterland as well as transhipment cargoes since all the facilities, efficiency and water depth are already in place. Thus, rather than Johor Port feeding the containers to Singapore, PTP plans to secure more shipping lines to berth their huge vessels to stop the cargo leakage. As PTP and Johor Port are under the same parent company, the rationalisation would eliminate internal competition between the two ports in Johor. A lot of energy and resources are wasted and it is better for the ports in Johor to compete with Port of Singapore (PSA) rather than with each other. But the exercise also has to address the issues of increased cost, longer delivery time and shipping lines' cut-off time for shippers located in Pasir Gudang. According to an industry player, the move will raise the haulage cost for shippers located in Pasir Gudang. “PTP is located 60km to 70km away from Pasir Gudang and that will reflect an increased haulage rate from RM391.40 to RM783.70 per container. “Also, while Pasir Gudang is only located at the back of Johor Port, the trip to PTP will take 45 minutes to one hour,” he said. With the congested road to PTP, shippers will have a problem adhering to the cut-off time to load their containers on board. Additionally, he said, PTP must be able to lure more shipping lines to call at its port as soon as the rationalisation takes place to avoid more leakages than the present amount. Currently, Wan Hai, KMTC, Dongnama Shipping, Pacific International Line, Cosco and PACC shipping lines provide direct calls from Johor Port to East Asia. For shipments to the US and Europe, the port feeds its containers to Port Klang and Singapore. PTP as a transhipment hub has three major shipping lines calling. They are Maersk, Evergreen and Orient Express Line plus other smaller liners. In this respect, PTP must beef up its role not only as a transhipment hub, but also an export and import port in order not to disrupt the production of the shippers in Pasir Gudang. Will the shipping lines from Johor Port shift to PTP? Not likely if they have a long-term agreement with PSA but if PTP succeeds in creating a critical mass for liners, they may change their mind. Also, how can Johor Port replace its container business? Johor Port anticipates handling more than one million TEUs this year and the move will certainly affect the port's income. The Transport Ministry and MMC Corp Bhd will do an in-depth study but the final decision on the move will take into account stakeholders’ interests. MMC, which holds a 100% stake in Johor Port and a 70% stake in PTP, is reported to have a special task force to study the feasibility of the move. © 1995-2005 Star Publications (Malaysia) Bhd.

Malaysia against 'outsiders' policing Malacca Strait
The US wants it, and India, China and others may be waiting to move in, but Malaysia maintains there is no need for 'outsiders' to patrol the strategic Malacca Strait, one of the world's busiest waterways. Stating that piracy and other crime on the Malacca Strait has reduced in the last three years in the vital sea lane, a senior government official said emphatically: 'There is no need for outsiders to come in.' 'There is no real danger. Piracy and other crime have to be settled by the navies, the marine crew and maritime agencies,' he said in response to questions from visiting scholars and experts about security in the Malacca Strait through which at least 600 ships pass daily. The 960-km narrow sea lane, wedged in between Malaysia, Singapore and Indonesia, is one of the world's busiest waterways with about 50,000 ships plying the route annually, carrying half of the world's oil and one-third of the world's trade. While piracy has persisted for centuries, the issue of curbing it, if not eliminating it totally, has gained international prominence after the US mooted the Proliferation Security Initiative (PSI). 'We are not against PSI,' the official, who spoke on condition of anonymity, said to a visiting IANS correspondent and strategic experts from several countries, adding that it had been discussed by the cabinet of Prime Minister Ahmad Abdullah Badawi. 'There is no decision,' he said. The Asia Pacific region is divided, with Malaysia and Indonesia opposed to the participation of any 'outsiders', while Singapore, the third littoral nation, along with Australia and others, think that the security that is in place is not enough. The US has for some time been keen on a policing role for India. India has indicated its readiness, provided it is welcomed by the littoral states. The 'no outsiders' stance has been variously attributed to the anti-US sentiments in Indonesia and Malaysia, both Muslim nations, in the wake of 9/11, and to anxiety to prevent an international maritime rivalry in the region. If India is welcomed, there would be pressures to allow China too, according to some analysts here. The Indian government has been closely monitoring the situation and has rendered help, when called upon. In 1999, Japan sought help to rescue a sea-jacked ship. When India extended help to US vessels in 2002 for the safe passage of 'high value' American cargo, it produced no adverse effect on the region. On the occasion, the 'capability of India' was matched by its 'acceptability' to the regional powers, according to Western diplomatic sources. After the US mooted the PSI in 2004 in the wake of several incidents of piracy, Malaysia and Indonesia said they would manage the problem themselves. Both have since floated or strengthened their maritime agencies, coordinating patrolling with Singapore. Malaysia's top security head Inspector General Musa Hassan, told a conference of maritime industry security experts here Tuesday that the threat was 'real and plausible' and that there was need for vigilance to battle maritime terrorism, including attacks on ships, the hijacking of ships carrying dangerous materials and the use of vessels to attack ports. Such attacks on the crucial trade route would cripple economies globally, he said. The problem is especially acute in Indonesia. There were 325 reported pirate attacks worldwide in 2004, while nine occurred in Malaysian waters and eight in Singaporean waters, a total of 93 occurred in Indonesian waters. On June 4, Indonesia's Defence Minister Juwono Sudarsono called on Japan, China and South Korea to help, including by providing technical assistance to his cash-strapped nation secure the vital Malacca Strait. 'What we lack in Indonesia is effective capacity to deploy resources, equipment, ships,' he said at the annual Shangri-La Dialogue, a regional security conference. According to the International Maritime Bureau, worldwide pirate attacks fell for the third year in a row in 2006. Attacks on ships at sea in 2006 fell to 239 vessels, down from 276 in 2005. That same trend echoed in the Strait of Malacca where attacks dropped from 79 in 2005 to 50 in 2006. Nonetheless, in 2004, the region accounted for 40 percent of piracy worldwide. A Malacca Strait Fund was mooted at a conference here in March by getting each ship to pay one US cent per dead weight tonnage. 'If every transiting ship contributed only 1 U.S. cent per DWT to the Malacca Straits Fund, it will generate US$40 million (euro33 million) annually to the fund,' it said in its report. The report said the burden-sharing measure must not impinge on the sovereignty of the littoral states. @ 2007 Malaysia Sun.

Malaysian, Indonesian police to up anti-piracy operations in Straits of Malacca by V. Shankar Ganesh
Klang - Malaysian and Indonesian police will increase their joint operations to combat piracy in the Straits of Malacca. As a first step, all district police chiefs along the Malaysian coast will take part in an exercise with their Indonesian counterparts in August. Malaysian marine police chief Datuk Jalaluddin Abdul Rahman said the exercise will be held in Medan, Indonesia, and will also involve units from the General Operations Force, the marine police and its air wing. He said the current cooperation between the two nations was mainly in exchanging intelligence and joint patrols. “We now want to create a network between the OCPDs from places like Klang and Kuala Selangor, and their counterparts in Sumatra.” He was speaking to reporters after a demonstration by the police in the rescue of the crew of a hijacked merchant ship at Tanjung Harapan here yesterday. An elite police force took part and the demonstration, involving two helicopters, seven boats and two jet skis, was witnessed by more than 230 participants attending the sixth tri-annual International Maritime Bureau meeting on piracy and maritime security in Kuala Lumpur. Jalaluddin said a problem faced by the marine police was the late reporting of pirate attacks. He said if information was relayed to the police many hours after the incident, the pirates would have had ample time to get away. He said the best way to overcome the problem is to have ship captains radio for help if they see any suspicious vessels near their ships. “We can respond very fast - between 30 minutes and an hour - depending on the location,” he said. © 2007 NST Online.

Malaysia sees threat of terror attacks in Malacca Strait
Kuala Lumpur - Malaysia's police chief warned on Tuesday of "real and possible" threats of terror attacks in the busy Malacca Strait which he said could hurt regional economies and harm world trade if they materialised. Musa Hassan told an International Maritime Bureau conference in Malaysia's capital that one worrying scenario would be if suicide bombers were to hijack a gas tanker sailing in the strait. "Another threat which is real and possible that is lurking in the Strait is maritime terrorism," he said. "There are still concerns for future attacks especially from terrorist groups that could affect the economy of the region." He identified no specific threats made by individuals or groups but said the police and the navy from the three countries lining the strait -- Malaysia, Indonesia and Singapore -- must ensure that one of the world's busiest sealanes was kept open and safe. Musa's remarks echoed concerns among authorities and experts that terrorists may attack shipping, or use ships as floating bombs, in the Malacca Strait, which carries some 40 percent of the world's trade, including 80 percent of the energy supplies of Japan and China. More than 60,000 merchant ships ply the waterway every year. The strait, only about three miles wide at its narrowest point, has seen a sharp drop of piracy cases following increased patrolling by the three states. Only one case of piracy was reported on the Malaysian side of the strait so far this year, against 11 for the whole of 2006, Malaysia's deputy internal security minister Johari Baharum said. Indonesia is installing 10 U.S.-supplied radars on its side of the strait to help beef up security, Rear Admiral Agus Suhartono, a commander of the Indonesian navy, told reporters. Maritime officials said the countries should remain vigilant. "There is no room for complacency," said P. Mukundan, a director of the London-based International Maritime Bureau, adding that pirates remained active in the region. "Today's high risk areas are Somalia and Nigeria, each with its own brand of hijacking and abduction of crew for ransom." In the latest incident last week, Somali hijackers seized a Danish cargo ship and its five Danish crew. © 2007 Reuters.

Malaysia / Philippine maritime agencies in joint operation
Sandakan - Cooperation between the maritime enforcement agencies of Malaysia and the Philippines in safeguarding common borders will be stepped up with the Philippine-Malaysia Coordinated Patrol (OPS PHIMAL) starting tomorrow. "The joint-operation will allow officers from both countries to discuss and find ways to effectively check crime in the territorial waters," said Malaysian Maritime Coordination and Enforcement Centre director First Admiral Datuk Pahlawan Mohd Rashid Harun. "The biennial operation which is into its 13th edition is launched in Sandakan while closing will be in Zamboanga on June 24," he told Bernama after a courtesy call together with the Philippines delegation head Rear Admiral Emilio C. Marayag, on Sandakan Municipal Council president Yeo Boon Hai today. Agencies taking part in the operation include the Royal Malaysian Navy, Marine and Air Police, Sabah Fisheries Department, Sabah Parks Department, Immigration and Customs Departments and the Malaysian Maritime Enforcement Agency (MMEA) © 2007 BERNAMA.

Malaysia warns of Malacca terror threat by M. Jegathesan
Malaysia's top police official on Tuesday warned of a "real and possible" threat of terrorism in the Malacca Straits, one of the world's most vital trade-related waterways. Inspector General of the Royal Malaysian Police, Musa Hassan, said maritime security concerns included piracy and extortion of fishermen in the straits. But touching on a topic rarely discussed by Malaysian officials, Musa said said terrorist attacks on the crucial trade route would cripple economies globally, and called for continued vigilance. "Another threat which is real and possible that is lurking in the strait is maritime terrorism," Musa told a conference of maritime industry experts discussing security threats. Forms of maritime terrorism of "particular concern" included attacks on ships, the hijacking of ships carrying dangerous materials and the use of vessels to attack ports or land facilities, Musa said. "If terrorists were to command a ship transporting LPG (Liquid Petroleum Gas) for a suicide mission in the strait, such an act would devastate southeast Asia's economic environment and severely disrupt trade," he said in his keynote address. More than 30 percent of world trade passes through the Malacca Straits, and the volume of traffic has increased dramatically, with more than 62,600 ships using the straits in 2005, up 42 percent from 44,000 ships in 1999. Half of the world's oil shipments also travel through the waterway, where piracy attacks have prompted concerns among east Asian nations who rely on those fuel shipments. "A significant impediment to the flow of oil would be a direct threat to the national security of countries that are highly dependent, particularly Japan and South Korea," said Musa. "It would mean re-routing the vessels, which would lead to skyrocketing freight and insurance rates and ... a devastating global economic impact," he said. Maintaining and securing the waterway has always been regarded as the responsibility of the littoral states who border the sea lane -- Singapore, Malaysia and Indonesia. The three countries have implemented several security measures including coordinated air and sea patrols to secure the straits. Musa said no single nation could secure the crucial waterway and urged continued cooperation amongst agencies and governments. Separately, Pottengal Mukundan, the London-based director of the International Maritime Bureau organizing the conference, said governments needed to stay on standby for attacks. "There is always the possibility of a terror attack. We need to be prepared for it," Mukundan told AFP. Rear Admiral Agus Suhartono, commander of Indonesia's western naval fleet, acknowledged the possibility of terror attacks in the straits but said Indonesia had sufficient assets and funds to ensure security. "The possibility is there but it is small, because the whole world would condemn the act," he told reporters on the sidelines of the conference. Suhartono said he had 40 ships and 4,000 personnel at his disposal. "At any one time 28 ships are at sea and seven patrol the Malacca Straits," he said, adding the U.S. had provided 10 radar systems which would be installed along Indonesia's island of Sumatra, facing the strait, to monitor all ships. "We have begun installing them and that will be completed by 2008. The radars will allow U.S. to monitor all ships so we can detect any craft that carry out criminal activities," he said. Earlier, Mukundan had also said the war against pirates was not over in the straits despite a fall in attacks in recent years after Indonesia boosted its maritime patrols. "There is no room for complacency. The moment the pirates sense law enforcement will not respond promptly, the attacks will resume," he told the conference. © 1999~2007 The China Post.

Malaysia, Philippines to start biennial joint maritime patrol
Malaysian and Filipino maritime enforcement agencies will start a coordinated patrol to check crimes along their common sea borders, a Malaysian official said on Tuesday. The Philippine-Malaysia Coordinated Patrol, coded OPS PHIMAL, will allow officers from both countries to discuss and find ways to check crimes in the territorial waters effectively, said Pahlawan Mohd Rashid Harun from the Malaysian Maritime Coordination and Enforcement Center. The biennial operation, the 13th edition, will be launched in Sandakan, a port city in East Malaysia's Sabah State, and end in Zamboanga, the Philippines, on June 24, he was quoted by Malaysia's national news agency Bernama as saying. The Royal Malaysian Navy, Marine and Air Police, Sabah Fisheries Department, Immigration and Customs Departments and the Malaysian Maritime Enforcement Agency will take part in the operation. (Xinhua) © People's Daily Online.

Malaysian, Indonesian police to hold more joint training to combat piracy
Klang - Malaysian and Indonesian police will hold more regular joint training to combat piracy and robbery in the Straits of Melaka. Federal Marine Police Commander Datuk Jalaluddin Abdul Rahman said the joint training would be held in Medan, Sumatra, in August involving district police chiefs along the west coast of Peninsular Malaysia and personnel from the marine police, air unit and General Operations Force. He said that so far the cooperation between Malaysian and Indonesian police involved exchange of information and joint patrols to curb piracy, especially in the southern part of the straits. "We are going to establish a network involving not only the marine police of both countries but also the OCPDs (police district chiefs) from the coastal areas like Port Klang and Kuala Selangor with their counterparts in Sumatra," he told reporters after witnessing a demonstration on a police operation to recapture a ship seized by pirates at Port Klang near here today. Jalaluddin said that currently the marine police was focusing more on surveillance and preventive measures by pulling up boats suspected of being involved in piracy and robbery in the straits. He said that among the setbacks faced by the marine police in protecting vessels plying the straits was a delay in the receipt of information and distress signals from vessels which had been robbed. As some robberies were only known between four and five hours after the incident, he said, the skippers were told to alert marine police of any suspicious vessel appearing on their radar. Sixty police air unit personnel and VAT 69 commandos took part in the operation, which was also witnessed by 239 participants from 37 countries attending the Sixth International Maritime Bureau Meeting yesterday that focused on the piracy threat and maritime safety. The Malaysian police air unit demonstrated its capability of locating the captured MV Juita while VAT 69 commandos stormed the ship and cut down five pirates who demanded a RM10 million ransom for the release of the crew. The operation also involved a crack unit of divers who were ferried to the scene by two rigid hull inflatable boats. © 2007 BERNAMA.

Melaka Straits must be kept safe from maritime terrorism, says IGP
Kuala Lumpur - Inspector-General of Police Tan Sri Musa Hassan today cautioned on the danger of maritime terrorism in the Straits of Melaka, which if left unchecked, could lead to chaos and destruction in the busy waterway. He gave one scenario where a ship could be used as a weapon for a suicide mission, in the manner of the World Trade Centre and Pentagon attacks. "If terrorists were to commandeer a ship transporting LPG (Liquified Petroleum Gas) for a suicide mission in the strait, such an act would devastate southeast asia's economic environment and severely disrupt trade. "Significant impediments to the flow of oil would be a direct threat to the national security of countries that are highly dependent on it, particularly Japan and South Korea. "It would mean re-routing vessels, which would lead to the sky-rocketing of freight and insurance rates, which in turn will have a devastating global economic impact. "Thus, it must be kept open and safe, and the prime responsibility for this is with the three littoral states of Indonesia, Singapore and Malaysia," said Musa. He was making a keynote presentation entitled 'Overcoming the Challenges of Piracy in the Malacca Straits - Issues and Solutions' at the 6th Tri-annual International Maritime Bureau Meeting on piracy and maritime security here today. On piracy incidents there, he said only one case was reported since January this year. Between January and December last year, 83 cases were reported in regional waters. Overall the number of maritime piracy attacks had reduced since 2001. Between 2001 and 2003, Musa said there were 476 actual and attempted attacks while the number reduced to 260 cases between 2004 and 2005. Maritime terrorism, Musa said, comprised three forms which were of particular concern. They are:
I. An attack on an individual ship
II. The hijacking of a ship carrying dangerous materials, and;
III. The use of ship as a weapon to attack port or land facilities.

Musa also spoke about a "criminal phenomenon" involving the extortion of fishermen in the strait. He said the Malaysian Fisheries Department had reported that fishermen were forced to pay a monthly "ransom" to pirates, if they wanted to continue fishing. "Although the problem is limited to certain areas in the strait, it is becoming rampant. "Upon the payment of the "ransom", the fishermen will be given 'safe fishing certification'. "Without such certification, they would not be allowed to fish and their boats seized," added Musa. On the East Asean Emergency System (EAES), the IGP urged police in each Asean country to obtain information and data on terrorism and piracy from the system, to find solutions to improve maritime security in the region. © 2007 BERNAMA.

Non-Asean agencies must stay out
Kuala Lumpur - Non-Asean enforcement agencies should not conduct enforcement exercises in South-East Asian waters as their involvement could complicate security matters. Instead, the regional countries should collaborate further in managing their waters, said Deputy Internal Security Minister Datuk Johari Baharum. Johari, in his opening address at the 6th tri-annual International Maritime Bureau meeting on piracy and maritime security yesterday, said that Malaysia believed the regional littoral states had the capabilities to counter maritime security threats like terrorism and piracy, and disasters like oil spills. He also said pirate attacks in the Straits of Malacca were declining. © 1995-2005 Star Publications (Malaysia) Bhd.

Northport to handle 50% more cars by Sharidan M. Ali
Northport (M) Bhd expects to handle 120, 000 cars by year-end, up 50% from 80,000 units last year. Northport assistant general manager (logistics) Lim Seok Hua said this was due to the port's initiative to become an important international distribution hub for used cars from Japan, following successful inroads made to attract the used car auction trade to Port Klang. Under the arrangement, several dealers under the Japan Used Motor Vehicles Association (JUMVA) are expected to engage Northport for the storage of used cars prior to transhipment to developing countries. Northport expects to serve as a transhipment hub for the re-export of the vehicles to markets in South-East Asia, Africa, the Indian subcontinent and the Middle East. Lim said the 120, 000 units also included new cars currently exported and imported via Northport, namely Proton, BMW, KIA, Daimler-Chrysler and Ssyangyong. Northport has a capacity to handle about 300,000 vehicles per annum and JUMVA handles more than 1.3 million units which are distributed worldwide annually. Traditionally, two Japanese ports – in Nagoya and Osaka – have served as transit and storage centres for the vehicles before they are auctioned off worldwide, and the used car dealers are now trying to reduce their dependence on these ports. The dealers, faced with the exorbitant port and related handling charges for the storage of the used vehicles as well as increasing shipping charges, have found Northport a more viable alternative. Lim said the used vehicles from selected dealers in Japan would be stored at Northport’s automotive hub, which offered three dedicated storage yards and ro-ro (roll on-roll off) berths to handle car carriers, as well as a wide range of services that would include pre-shipment inspection, maintenance and repair services. The port also expects to offer additional auto repair and engineering services. These will include compliance with standards and requirements by importing countries such as the conversion from left to right-handed driving, and requirements related to brake, timing belt, drive shaft and tyres. “Clinching the JUMVA deal for Northport to be a used car hub is a major step in the port’s attempt to broaden its product base in non-containerised cargo handling,” said Lim. The port, which is linked globally to more than 200 ports, is also upgrading berths 15 and 16 to cater to increased vessel calls from ro-ro ships or dedicated car carriers. “We handled slightly over 1,000 cars in 2001, but we have since put a lot of attention on marketing and it started to show results beginning 2003,” he added. The automotive hub at Northport offers real-time information, which provides information on details of vehicle and the receipt/delivery status and generates loading list verification reports for identification. The system also helps track vehicles on a real-time basis and ensures seamless operations from yards to vessels. The expansion of automotive trade at Northport is consistent with the future growth plans identified by the port operating company and announced by its CEO and managing director Datuk Basheer Hassan Abdul Kader recently. The future growth strategy also includes extending its geographical outreach northward across the Sungei Puloh industrial region in Klang where it expects growth of more distributive trades, including an expansion into bulk cargo handling and storage. Financially, NCB Holdings Bhd (the holding company of Northport) recorded first quarter pre-tax profit of RM38.91mil, up 6.3% from RM36.61mil of the corresponding period last year. The group revenue for the first three months of 2007 rose 3.6% to RM202.10mil from RM195.01mil previously due to higher contributions from the haulage/logistics subsidiary. Northport, the port-operating subsidiary, contributed RM149.3mil while Kontena Nasional, the haulage subsidiary, accounted for RM52.8mil.

Ramunia to fund expansion via equity, debt by Chong Jin Hun
Ramunia Holdings Bhd, an oil and gas sector infrastructure builder, will use an equal mix of equity and debt to fund a on-going RM360 million expansion at its existing fabrication yard in Johor. A planned transfer to Bursa Malaysia's main board next year is also on the cards to further raise the profile of the second board-listed Ramunia, especially among institutional investors. But shareholders' dividends is unlikely for current fiscal 2007 as the company intends to pump its earnings back into its business. "Of the RM360 million, about RM180 million is from debt and the remaining half from the equity side. We are going for the main board, and Ramunia's privatisation is a rumour." "We are reinvesting everything we have back to the company. It is a growing company," Ramunia chairman Datuk Azizul Rahman told reporters after the company's shareholders meeting in Kuala Lumpur yesterday. Shareholders' had earlier approved a private placement of 45.5 million new shares in Ramunia at RM1.20 apiece to raise RM54.6 million. The money, part of which forms the equity-funding portion for its Teluk Ramunia-based fabrication yard expansion, will part finance the two-year initiative. The job is due for completion by October 2008. Bonds, however, may not be a part of the modernisation plan's debt package which will be dominated by bank loans, said Azizul. Ramunia's fabrication yard improvements involve infrastructure upgrades, and land purchase, costing some RM200 million and RM108 million respectively. Meanwhile, about RM50 million will be used as working capital. Once finalised, the yard's size will almost double to some 68ha from the present 36ha. Fabricaton capacity is expected to more than double (171 per cent) to 84,000 tonnes, according to Ramunia's circular to its shareholders. Market chatter has it that Ramunia Energy & Marine Corp Sdn Bhd, the single-largest shareholder with a 50.5 per cent stake in Ramunia, may take the latter private and re-list it abroad. Ramunia's net profit more than quadrapled (by 317 per cent) or 2.1 sen a share to RM5 million in the first quarter to January 31 2007. Revenue, meanwhile, more than doubled to RM82.7 million. Its borrowings stood at RM173.3 million as at last January. The fabricator, with some RM1.3 billion worth of outstanding jobs, is bidding for global projects valued at some RM4.5 billion. Ramunia shares closed unchanged at RM1.60 yesterday, its highest in six months, for a market capitalisation of RM381.8 million. The stock's price had risen 39 per cent so far this year, outperforming the benchmark Kuala Lumpur Composite Index's 24 per cent rise. © The New Straits Times Press (Malaysia) Berhad.

Rethink patrol strategy, urges IMB
Kuala Lumpur - Coalition forces patrolling sensitive areas in the Indian Ocean to ward off potential terrorist attacks should reconsider their strategy of not penetrating the territorial limits, IMB director Pottengal Mukundan has said. "We respect that they have their own objectives, but crimes against ship crew off the Somalia coast have escalated and a show of force is necessary," Mukundan said at the end of the IMB conference on maritime security today. The two-day meeting was held in conjunction with the Royal Malaysia Police. At least 100 seafarers have been taken as hostages during the past year, according to IMB. However, Mukundan told Fairplay that he disagreed with the contention in some quarters that US coaliton forces were disregarding attacks on small ships of poor countries. "This is not true. We have instances of forces helping out ships regardless of which country it belonged to or the nationality of seafarers," he said. The IMB still has no official word on the crew of the Danish vessel Danica White held by Somalian pirates early this month. © Lloyd's Register - Fairplay Limited 1999 - 2006.

Teluk Sepanggar naval base to be ready in 2009, says Najib
Kota Kinabalu The construction of the Teluk Sepanggar naval base near here is expected to be fully completed by 2009, Datuk Seri Najib Tun Razak said. The deputy prime minister said the implementation of the project was proceeding smoothly. He said the base was of strategic importance to the Royal Malaysian Navy and the Malaysian armed forces as it would be home to two submarines to be delivered shortly. "It'll also serve as the nerve centre for monitoring operations in the South China Sea and Sulu Sea," Najib, who is Defence Minister, told reporters after visiting the naval base project today. He said that between 2,000 and 2,500 personnel would be stationed at the facility by 2009, and the figure would swell to more than 6,000 if their dependents were included. Najib said, to date, the government had spent more than RM600 million on the project and RM300 million more was needed for its completion. The naval base, he said, would also benefit those in the surrounding areas as they could share, for example, sports facilities with navy personnel. "This will enable our people to forge close relations with those living in nearby areas," he added. © 2007 BERNAMA.

Week 4 (17 - 23 June 2007)

Asian fishermen suffer as fish stocks in region decline
More and more often, fishermen in Asia return home with nothing but a few small fish in their nets. Fish stocks in the region have declined dramatically in recent decades, and the quality of the catch has gone down. Hong Kong is best known as a financial and business center. But the territory with its many islands has about nine thousand fishermen who make a living casting their nets in the South China Sea. But often, the nets are almost empty when they return. This fisherman says the sea used to be full of fish, but it is not any longer. Andy Cornish is director of conservation at the Hong Kong office of the World-wild Fund for Nature. He says the catch rate of fishermen here has dropped significantly in the past five decades. "In the 1950s, when they could spend one hour to catch one kilogram of fish, now they have to spend four hours to catch one kilogram of fish - so that gives you a very crude idea that the stocks declined about 25 percent of its levels since the 1950's," Cornish said. The problem is not unique to Hong Kong. Stephen Hall, head of the WorldFish Center, a Malaysia research institute, says that all over Asia, sea fish stocks have gone down by up to 30 percent since the 1970's. "The most dramatic decline for sea fisheries has been in the Gulf of Thailand and the east coast of Malaysia, but it's a pretty common story throughout the Asian region," Hall said. Along with the drop in quantity, the quality of the seafood Asian fishermen are bringing back has also declined. The survival of some larger fish - such as some species of garoupa and shark - has come under threat, and fishermen now mostly bring home small fish that have a lower market value. Hall says the cause of the decline is over-fishing. "There are too many fishers, the boats are too powerful. We have got highly effective fishing methods, and we basically over-harvested," Hall said. Andy Cornish says there are two main reasons for the over-fishing. One is the rapid population growth in the region. Another, he says, is that many countries in the region have not taken fisheries management seriously enough. Hong Kong is one of those. "You don't even need a license to commercially fish within Hong Kong waters. So there is no control whatsoever on fish, the size of the catches, the size of nets - nothing like that," Cornish said. "So we have a situation where fishermen are competing against each other for the last fish that are left." The decline of fish stocks is a global problem, but it hits Asia harder than other parts of the world. The Asia-Pacific region is not only the world's largest producer of fish, but people here consume more fish and seafood than anywhere else. The WorldFish Center says fish and seafood traditionally provide up to 80 percent of the protein intake of people in the region. While fish stocks are declining, the demand for seafood has risen as a result of the region's growing affluence. Prices have gone up, especially for large and rare species. Live reef fish, for example, sell for as much as $200 a kilogram in restaurants in Hong Kong, where the demand for rare delicacies is high. Hall says seafood has become less affordable for Asia's poor. "What we are seeing in particular is that the poorer people are eating less fish and the richer people are eating more fish," he said. "And that's more an issue in developing countries and Asian countries than it is in the rest of the world." Experts say the large commercial fishing operators in Asia are still able to make money. But the declining fish stocks are devastating to millions of small fishermen, who are among the poorest people in Asia. Simon Funge-Smith is a fisheries expert at the office of the United Nations' Food and Agricultural Organization in Bangkok. He says the FAO is concerned about the future of the region's fishing communities. "The very serious concern that we have is that as the fishing livelihood becomes ever more marginal economically, the fishermen don't really have anywhere to turn - their only assets are their boats or their fishing gear, they quite often are landless or have very small land holdings or homes near the sea," Funge-Smith said. "They can't suddenly go off and do other jobs - they have no skills. So it's a very bleak future for their families." Funge-Smith says the good news is that there is increasing willingness to take action. He says a lot of this action, however, is focused on high-seas fisheries and attempts to combat illegal fishing. But Funge-Smith says not enough is being done at the national level. The biggest challenge, he says, is to reduce the overall amount of fish being taken. "We simply can not keep taking fish out of these fisheries, they can only provide so much, and we probably hit the point where they can't provide anymore," he said. "So we need to acknowledge that and fish less hard, improve the diversity of the catch." Funge-Smith says governments need to crack down on the use of destructive fishing gear that damages habitats and maritime nursing grounds. He also says marine sanctuaries need to be sealed off either permanently or seasonally, to enable fish to replenish their numbers. © Huliq.com 2006.

Bumi Armada investing RM1.2bil in new ships by Sharidan M. Ali
Bumi Armada Bhd, a leading offshore marine transportation services provider, will spend RM1.2bil to acquire 17 deepwater offshore vessels (OSVs) under its Steel on Water programme. On Saturday it received the first of the 17 OSVs, the first Malaysia-made dynamic positioning 2 vessel – RM100mil Armada Tuah 100 built by Nam Cheong Dockyard Sdn Bhd that will serve in the country's first deepwater oil and gas (O&G) project in Kikeh, Sabah. Through its Steel on Water programme, Bumi Armada aims to complete the acquisition of all 17 steel-hulled OSVs by the end of next year. Chairman Datuk Mahamad Fathil Mahmood said these new vessels would be part of Bumi Armada's strategy to offer larger, technically-more-sophisticated deepwater vessels to its partners in the O&G sector. “In South-East Asia, Malaysia, through Petronas, is leading the drive into deepwater development. The Kikeh field is located at a water depth of 1,500m. “Kikeh will be followed by Gumusut in 2010. Malikai, Kebabangan, Ubah Crest, Kamunsu, Pisangan and Jangas in East Malaysia are the other deepwater projects that are expected to follow,” he said after the handing-over ceremony of Armada Tuah 100 in Kuala Baram, Miri. Mahamad Fathil added that the deepwater O&G field required a completely different type of vessel to support the O&G operations. “As such, Bumi Armada has risen to the challenge to support Malaysia's interest in deepwater work by investing into more vessels that meet such requirements,” he said. Mahamad Fathil said the majority of the funds to finance its new fleet of deepwater OSVs would come from bank borrowings. Of the 17 new vessels ordered, nine will be built at Nam Cheong Dockyard, five in Singapore and three in China. Bumi Armada revealed that it had secured some contracts and was actively marketing its services locally and abroad. The company also plans to re-list itself on Bursa Malaysia for the expansion. “We are considering to be listed again and we will make an announcement in the future,” he said. Since Bumi Armada was taken private in 2003, there have been talks for the company to be listed on Bursa again. With deepwater focus in mind, Mahamad Fathil believed in the importance of developing the company's key asset, that is the people, to operate the vessels. “To realise this, we have recently signed an agreement with the Malaysian Maritime Academy (ALAM) to train and certify Malaysian captains to operate dynamic positioning (DP) vessels. “The DP certification is a requirement for deepwater operations, and currently it is unfortunate that there are no Malaysian captains with DP certifications. “We certainly hope with this effort, Bumi Armada could contribute to building this capability locally,” he said. The 17 new OSVs will enhance the portfolio and market share of the company that already owns 40 offshore O&G vessels which include floating, production, storage and offloading vessel (FPSO), work barge, safety and standby vessel, topographic survey vessel, pilot boat, hose handling vessel, mooring launch, landing craft, accommodation work boat, offshore support vessel, oil terminal support vessel and anchor-handling vessel. Bumi Armada is also one of the largest owner-operators in South-East Asia and was also the first Malaysian company to operate an FPSO. It has operation bases in Miri, Kemaman and Malacca in Peninsular Malaysia as well as Brunei, Australia, Congo and Nigeria. © 1995-2007 Star Publications (Malaysia) Bhd.

India ready to play role in securing the Straits of Malacca
Jakarta - India has expressed its readiness to play a role in protecting the Straits of Malacca even as it enhances defence cooperation with Indonesia. The Indian offer to secure sea-lanes of the Indian Ocean, through which 60 per cent of world's energy is supplied, was made by external affairs minister, Pranab Mukherjee, after he co-chaired a joint commission meeting along with his Indonesian counterpart, Hassan Wirajuda in Jakarta. At the first Joint Defence Cooperation Committee meeting, India and Indonesia have also agreed on a plan of action to implement the strategic partnership in a "clear and measurable manner." Addressing a joint press conference with Wirajuda, Mukherjee said, "There is a growing presence of terrorists and non-state actors requiring attention of littoral states and the international community so that mercantile trade and supply of energy can be ensured," he said. "We always keep in view sensitivities of the littoral states. Whatever role they expect us to play, we will be glad to do so," Mukherjee added. Mukherjee is on a four-day visit to Indonesia and Singapore as part of a government to project India's "Look East" policy. The meeting of the two ministers is significant in that it follows the "New Strategic Partnership" forged by Indonesian president, Susilo Bambang Yudhoyono and prime minister, Manmohan Singh, during the state visit of the former to India in November 2005. The two countries expressed satisfaction at the increase in visits of MPs, military officials, trade missions, academicians, and people-to-people exchanges over the past few years. The commission focused on a wide-ranging subjects including defence and security, transportation, economy and investment possibilities, health, education and training, science and technology, tourism and culture, technical cooperation and legal cooperation, according to an official release here. Mukherjee termed the plan as a "blue print" for the realisation of the strategic partnership between the two countries. The Indian delegation expressed appreciation at the extension of Visa on Arrival facilities to Indian nationals by Indonesia. The two sides also identified new fields of cooperation such as Special Economic Zones (SEZ), development of alternative energy sources and the conclusion of a Mutual Legal Assistance Treaty (MLAT) in Criminal Matters and Extradition Treaty. Cooperation in health and pharmaceuticals, oil and gas, and mining, biotechnology and women's empowerment have also been identified as new areas of cooperation between Asia's two largest pluralistic democracies. The Indonesian side welcomed the India's offer to assist in the restoration work at the Prambanan Temple Complex, the largest Hindu temple in Java that was damaged by the Tsunami in 2004. Both sides also agreed to cooperate closely in the hospitality and tourism sector as well. Indonesia is India's third largest trade partner in the 10-member ASEAN region with a trade value of US$4.79 billion last year. The two countries have set up a trade target of US$10 billion for 2010. Mukherjee travels to Singapore on Tuesday where he will launch the Indian Business Forum that is expected to benefit over 2,500 Indian companies operating in that country. © 1999-2007 The Information Company Private Limited.

Malaysia arrests 31 Thai fishermen
Kuala Lumpur (dpa) - Malaysian marine police have detained 31 Thai nationals and seized a large fishing trawler after a 30-minute high- sea chase, a news report said Friday. Maritime agency patrols spotted the vessel early Wednesday in waters off the northern Kelantan state. Officers decided to conduct a random check on the vessel, but upon nearing the trawler, the suspects immediately sped off, the Star daily said. Following a 30-minute chase, the Thai suspects, aged between 13 and 30, surrendered themselves to the officers, district maritime enforcement commander Abu Bakar Idris was quoted as saying. All the suspects did not have valid travel documents and have been remanded for investigations on the charge of encroachment. If found guilty, the crew face a fine of up to 500,000 ringgit (147,058 dollars) while the skipper faces a fine of up to 1 million ringgit (294,118 dollars). © The Post Publishing Public Co. Ltd.

Maritime agency understaffed
Putrajaya - The Malaysian Maritime Enforcement Agency (APMM) that has been operational since November 2005 needs to double its workforce to function effectively. Its director-general Datuk Mohammad Nik said the existing 2,000 personnel were being deployed only to areas that were most important, such as enforcement in the Straits of Malacca against pirates, smugglers and illegal fishermen. “Our programme is expanding with new ships and helicopters being included. “These new assets will mean more manning, and therefore, we need to review the number of staff we need,” he said, adding that the agency would be submitting its recommendations to the Government for necessary action. Mohammad was speaking to reporters after presenting service awards for excellence to 138 staff members of the agency. © 1995-2005 Star Publications (Malaysia) Bhd.

Malaysia re-elected to UN maritime commission by Foo Yee Ping
New York - Malaysia has been re-elected for a third term to a United Nations commission that facilitates the implementation of international rules on maritime space and activities. Datuk Dr A. Bakar Jaafar, a senior adjunct fellow of Maritime Institute of Malaysia, will be among the 21 members of the Commission on the Limits of the Continental Shelf (CLCS) for a five-year term. It is a position that he has held since 1997. This is the third consecutive term that he was elected to the CLCS. There are five Asian members on CLCS. On the significance of the re-election last week, he said: “This demonstrates Malaysia’s commitment to the UN Convention on the Law of the Sea.” The Law of the Sea is a set of regulations on maritime space. It secures for coastal states the right to an Exclusive Economic Zone (EEZ) of 200 nautical miles. Bakar explained that the role of CLCS was to decide on the sovereign rights of the coastal states, besides delineating what was actually “common heritage of mankind.” © 1995-2007 Star Publications (Malaysia) Bhd.

Oil pipeline will transform order in Malacca Straits by Presenna Nambiar
The much talked about trans-peninsula oil pipeline will have massive impact on the maritime order in the Straits of Malacca and its vicinity, a research fellow of Maritime Institute of Malaysia (MIMA) says. Nazery Khalid in a paper entitled "The Trans-Peninsula Pipeline: A Maritime Perspective" explains how the existence of such a pipeline can be a bane and a boon for the maritime world. He said that the construction of the pipeline could reduce the number of oil tankers passing through the Straits of Malacca, reducing the chances of oil spills and attacks. However, whether it will help ease traffic congestion in the Straits is arguable as based on the Marine Department Malaysia's statistics of shipping traffic in 2006, very large crude carriers and ultra large crude carriers made up merely six per cent of the total traffic. The pipeline could also possibly bring down the price of oil per barrel as it will lower the cost and time to transport oil. It is estimated that the average cost to transport oil will be US$1.50 (RM5.19) cheaper per barrel, and three days less compared with using a ship via the Straits. Although this could translate to better days for crude importers in East Asia, the pipeline would challenge the livelihood of ports along the Straits as the volume of oil cargo handled is bound to go down. Nazery said that even though the pipeline will spur investments and economic growth in the region along its path, it could also potentially cause adverse economic impacts to areas with existing oil refineries and transport infrastructures benefiting from the current situation. "Denied of oil tanker traffic, the economies of those areas could suffer from the diversion." "The pipeline and accompanying infrastructures could even render existing ones along the Straits as redundant," Nazery said. Such an occurrence would alter the patterns of maritime trade and infrastructure development related to oil transport in the Straits region. The pipeline could also open up the possibility of new naval calculations in the Straits by outside powers wishing to counter the strategic and geo-political impacts and to capitalise on opportunities arising from the pipeline. "Until more details are known, it would be difficult to comprehensively ascertain its feasibility and benefits." "But one thing is certain - the realisation of the project is poised to dramatically alter the maritime transport, energy, economic, environment, socio-political and strategic landscape in the region and beyond," Nazery said. © The New Straits Times Press (Malaysia) Berhad.

Piracy on the high seas by Frank Kennedy
To many people the term 'piracy on the high seas' conjures up a romantic image of swashbuckling gallantry in a long-gone age. Unfortunately in the present day context, the term is a stark reminder of a dangerous and vicious crime that is being regularly perpetrated. Moreover, the situation has steadily deteriorated since the days of the Cold War when the distribution and concentration of major-power navies were to be found in greater numbers in all regions. The reality of today is that many localities cannot control their adjacent waters with serious implications for the marine industry. In most cases the methodology employed for boarding is generally similar and the robbers will be equipped with modern aids such as GPS, mobile and satellite telephones and they will mount their attack in fast boats propelled by large outboard motors. Often they will approach from behind in the blind arc of the ship's radar and board the ship with speed and agility. In the case of straightforward robbery, within 30 minutes they can be away to continue their crimes elsewhere. Notwithstanding the gloom of the situation, optimism that things might improve should not be ruled out. Three years ago the Malacca Straits were considered the world's worst area for piracy, with insurers loading premiums and shipping lines in fear of the area. Today the picture is different after one tsunami and concerted action by the littoral states that has managed to contain the menace. The threat remains but the containment appears successful. However, such success is badly needed elsewhere in the world. The regions affected are numerous - these include Indonesian waters, the South China Sea, the Philippines, the Indian Sub-Continent (Bangladesh and Indian waters), Somalia, Red Sea, Gulf of Aden, Nigeria, the Ivory Coast and off Santos in South America. But help for the worried operator is available - all reputable flag states give information, recommendations and guidance concerning areas to avoid and instructions where security levels should be enhanced. The US and British navies offer bulletins, advice and guidance in the Middle East region through their Marlo and UKMTO offices respectively and the US Office of Naval Intelligence gives a weekly update on its website. Commercial services are also available - in particular through various classification societies. By far the most well-known agency is the UK-based International Maritime Bureau, with its Piracy Reporting Centre in Kuala Lumpur, Malaysia. The International Ship and Port Facility Security (ISPS) Code is an important factor in the fight against piracy and whatever the critics of the code say, if nothing else it has increased general awareness, it has instilled a sense of reality into ship operators and their crews and it has formalised procedures to raise the alarm and for authorities to respond. Of particular relevance to operators is prevention and although an unpopular contingency - an increase in ship manning numbers does provide some measure of insurance. At the present time it is somewhat absurd that ships are operating with proper, flag-state-approved ship security plans that in many cases could not be effectively implemented for any length of time due to low manning levels. It is also evident that many flag states seem not to take proper account of ISPS code needs when stipulating minimum safe manning - perhaps the IMO in its wisdom should rename the certificate the 'Minimum Safe and Secure Manning Certificate' in recognition of this situation. However, at the end of the day it is the elimination of the perpetrators of piracy that must be achieved by international co-operation and which the ISPS Code cannot do and for which there is no immediate answer to the ship operator. Pro-activity and prevention is thus the only current countermeasure and the only formal tool for this is the ISPS Code. [The writer is a Dubai-based Marine Consultant specialising in safety management, security and training.] © Al Nisr Publishing LLC 2007.

Scomi Marine to buy six vessels
Kuala Lumpur - Scomi Marine Bhd will spend about RM650mil to acquire six deep-water anchor-handling tugs and supply boats (AHTS) and three offshore support vessels (OSVs) that will be delivered in stages until 2010. Scomi Marine anticipates receiving four AHTS next year and the remaining two in 2009 and 2010. Scomi group chief executive officer Shah Hakim Zain said 30% of the cost of the fleet expansion would be internally financed and the rest from bank borrowings. The expenditure is in line with Scomi Marine’s strategy to re-profile its fleet through new buildings of higher specifications vessels in meeting oil and gas industry demands in its key markets in Malaysia, Australia, India and Indonesia. “New vessels can potentially garner higher rates of up to an additional 25%,” Shah Hakim told reporters after Scomi Marine’s AGMyesterday. Since OSVs contracts were usually short-period agreements of one to three years, the company expected service fee to increase every time each contract was renewed, he said. Its re-profiling process also involves the disposal of 10 older vessels which have a value of RM100mil at current market prices. “We do not have a specific timeline for the disposal as it depends on the contract each vessel is in now and the market price of the vessel. “So far, we have let go of six OSVs from the third quarter of last year for a total value of RM30mil,” Shah Hakim said. On its coal transport business, which contributed 60% of the company’s profit, Scomi Marine was positive on the outlook of the demand for its services. “Tenaga Nasional Bhd is increasing its annual utilisation of coal from the current 10 million tonnes to 20 millions tonnes by 2010 and we will be bidding to provide our services. “Also, the coal mines in Indonesia are beefing up production due to higher demand and surely, they will need vessels to transport the coal,” he said. Presently, the 42.7% associate company of Scomi Group Bhd owns a total of 149 vessels. Scomi Marine’s net profit increased 229% to RM80.5mil for the year ended Dec 31, 2006. © 1995-2007 Star Publications (Malaysia) Bhd.

Scomi Marine to spend RM200 Mln for building three new vessels
Kuala Lumpur - Scomi Marine Bhd, a 42.7 percent associate company of Scomi Group Bhd, plans to spend about RM200 million for building three new vessels this year. The vessels will cater to demand for offshore support services in the region. Speaking to the reporters after the company's annual general meeting here today, group chief executive officer of Scomi Group Shah Hakim Zain said the new vessels are expected to be ready by next year. He also said that Scomi Marine had ordered six deepwater Anchor Handling Tugs and Supply boats for deepwater exploration. The vessels are targeted to be delivered in stages over the next three years, with four of them next year and one each in 2009 and 2010, Shah Hakim said. To-date, Scomi Marine's fleet of vessels numbers 149 and comprises utility vessels, Anchor Handling Tugs, tugs, barges, accommodation barges and landing crafts. The company's core businesses are in oilfield services, energy and logistics engineering, energy logistics and production enhancement. Shah Hakim said the company has already sold six vessels with a combined value of RM25-RM30 million. He said Scomi Marine also plans to dispose 10 vessels with total value of more than RM100 million. "We plan to sell 10 vessels when we receive the best offers," he said. Shah Hakim said the company was also actively bidding some projects relating to the oil and gas industry as well as for coal transportation in Malaysia, Indonesia and Vietnam. © 2007 BERNAMA.

Singapore straits MOU enhances safety
Singapore - Singapore and Indonesia have signed an MOU to enhance safe passage for the 60 ferries that serve key routes and terminals in Singapore and the Riau Islands. The agreement was signed on the occasion of the launch of the Barelang (Batam-Rempang-Galang) – Singapore Electronic Navigational Charts on Tuesday. The jointly-produced charts are expected to facilitate smooth passage along the crowded Singapore Strait for the high-speed passenger craft that ply between Singapore and the Indonesian islands of Batam, Bintan and Karimun. The Indonesian maritime agency Janhidros and Singapore’s Maritime and Port Authority have been working towards encouraging the use of ENC and the Electronic Chart Display and Information System (ECDIS) on these ferries. Director-General of Sea Communication, Indonesia, Harijogi said the charts support IMO’s efforts for mandatory carriage of ECDIS. MPA chief executive BG Tay Lim Heng described the ENC launch as “yet another milestone” in the joint-efforts between the two countries to ensure safety of navigation in the Malacca and Singapore straits. © Lloyd's Register - Fairplay Limited 1999 - 2006.

Speed limit on Sebatik ferries
Tawau - The State Maritime Department will impose a "speed limit" on ferries at the narrow channel between Sebatik and Sadam islands to minimise damage to mangrove forests and ecosystem in the surrounding areas. The move would see travel time entering and leaving the port here to Nunukan, Indonesia, lengthen by between 20 and 30 minutes. Deputy Director Awang Ismail Haji Mohd Tahir said it was the best approach rather than having to change the route that might involve an increase in the ferry fare as well as problems concerning insufficient water depth. Met after inspecting the area up to the Malaysia-Indonesia border together with Sebatik Assemblyman Datuk Dr Patawari Patawe, Tuesday, he was confident that it could be done. He said it would be implemented after getting the results of studies to determine the optimum speed limit since the ferries passing through the channel daily vary in terms of size and engine capacity. Awang Ismail said over the years the pounding waves had resulted in erosion up to the banks of both islands resulting in destruction of the precious mangrove forests, which not only act as the breakwater but also an integral part of the ecosystem there. "It is a small price to pay ... it is for the benefit of all," he said when asked about the passengers having to travel for up to 30 minutes more. The Nunukan-Tawau ferry is the most popular transportation mode for Indonesians, especially from the Eastern Kalimantan side to enter Sabah looking for jobs as well as for those with expiring visit passes since Nunukan Island is the nearest point for them to re-stamp their passports, facilitating re-entry to Sabah. The estimated travel time from Nunukan to Tawau is about 45 minutes based on guidelines but it was noted that most of the ferries take just about 35 minutes. On how the department would ensure compliance on the part of the ferry operators, Awang Ismail said it would issue a notice to all the operators before holding a meeting with them to explain the decision as well as request for their cooperation. To the question of enforcing the regulations using the law, he said it was not necessary so long as they (operators) cooperate and that they only have to slow down when entering the narrow channel near Tanjung Arang of Sebatik Island before returning to normal speed at Cowie Bay (fronting Tawau). Meanwhile, Dr Patawari said the department made the inspection following his call at the recent State Legislative Assembly for the Government to take action to protect the mangrove forest in Sebatik Island and the surrounding areas. He said the expedition by a team of scientists from the Universiti Malaysia Sabah (UMS) found that the mangrove forest in Sebatik and Sadam islands formed an integral part of the ecosystem in the area where many species of fish, birds and animals were detected. Patawari said the scientists, however, stated that erosion from the waves of the speeding ferries passing through the area daily were taking a toll on the environment and recommended that the route be changed to the other side of the island. Expressing gratitude to the Government for taking immediate action, he hoped the operators would cooperate. He said as far as enforcement of the regulation, he had also proposed to the National Security Division to set up a monitoring post on Sadam Island near the Malaysia-Indonesia border which would also assist in the surveillance of the border of the country's waters here. (See separate story) During the inspection, ferries passing through the water channel immediately slowed down and some even came to a standstill when the operators saw the Maritime Department boat. A SHOCK awaited Patawari and the team of scientists when they entered the Simandalan River "behind" Sadam Island. Heading towards Kampung Simandalan for a reception, they saw several loggers felling mangrove trees. Parawari immediately went down to the mud-stricken area to confront the loggers. However, two of them showed him several papers such as the registration or permit for their company to log mangrove trees in the Tawau Forest Reserve signed on March 10, 2006 by the Tawau Forestry Department Registrar. There was also a Tawau Forestry Department letter showing that the permit had been renewed from June 26 this year to June 25 next year. "We are making efforts to save the mangrove forests but here you are cutting the trees," Patawari said, adding he would not let the matter rest. He urged the Forestry Department to look into the legality of mangrove logging at an island on the rivermouth of Simandalan River, a remote area on the southern part of the district, "behind" Sadam Island near Sebatik Island. There were about 500 trees lying in heaps on Simandalan Island on Tuesday. He hoped the Forestry Department would investigate the authenticity of the letters as well. It was learnt that the mangrove trees were being supplied to the construction sector as piling material. "I hope the department will take stern action ... what is the use for us to take all the trouble to safeguard the mangrove forest when there are people who are allowed to fell mangrove trees there," he said, adding that studies by the scientists from UMS had shown that the mangrove forests there are teeming with wildlife. Damaging the mangrove forest would affect the ecosystem, which means destruction of the wildlife's habitat, he said. Simandalan Island is located at the mouth of the river flowing from the mainland of eastern Borneo. Although the loggers furnished the permit, Patawari doubted its authenticity "as it could be fictitious and whether they are really allowed to fell the trees there". © Daily Express, Sabah, Malaysia.

Vehicles, goods seized in anti-smuggling bust
Kota Kinabalu - The Malaysian Maritime Enforcement Agency seized six vehicles, including five lorries, in an anti-smuggling bust along the coastal waters of Taman Pantai in Sipitang, about 140kms from here. Enforcement personnel also seized 15 cartons of cigarettes, 4,608 bottles of beer, and 198 barrels of beer when they arrested five suspects during a 2.15am operation Saturday at the Merintaman area. The agency's operations officer for Sabah and Labuan, Commander Mohd Amir Hamzah said, however, that at least 10 other suspects managed to flee when his officers closed in on the smugglers. He said that the suspects detained were a foreigner and four locals, aged between 17 and 49. They are being remanded at the Kota Kinabalu police headquarters for further investigations. © 1995-2007 Star Publications (Malaysia) Bhd.

Week 5 (24 - 30 June 2007)

Malaysia set to be global deepwater oil player by Sharidan M. Ali
Malaysia is set to become a serious global deepwater oil player with about 1.3 billion barrels of oil discovered from deepwater sites. This deepwater oil reserves includes the Kikeh oilfield, off Sabah. This first deepwater discovery in Malaysia in 2002 by Murphy Oil marks a milestone in the nation’s venture in deepwater development. Maritime Institute of Malaysia (MIMA) research fellow Nazery Khalid said Kikeh with an estimated recoverable reserve base of 400 million barrels of oil, is expected to come on stream in the middle of 2007, while the Gumusut-Kakap fields should be pumping by 2010 and Malikai by 2012. Nazery said Malaysia's deepwater oil sector was expected to contribute a quarter of the national oil output by 2015. Malaysia currently ranks 24th in terms of world oil reserves and 13th for gas, with oil reserves of 4.84 billion barrels and natural gas reserves of 89 trillion cubic feet. Presently, Malaysia produces about 750,200 barrels of oil per day and five billion cubic feet of gas per day. “Malaysia has an offshore exploration area of about 600,000 sq km containing about 60 blocks and is the first country in the ASEAN region to develop deepwater exploration,” he said, adding that with the discovery of several local deepwater sites in recent years, Petronas, the national oil company, was leading the thrust of deepwater developments in Malaysia. “It is expanding its reaches from traditional brown field sites to find and produce more oil in the nation’s deepwater basins,” he said, adding that the spate of discoveries had proven that the waters off Malaysia were fertile grounds for deepwater exploration. “Much of them have seen only the early stages of exploration and it is projected that there will be plenty more deepwater activities, as they move into the development stage. With eight deepwater fields to be developed from 2010 to 2013, Malaysia is poised to see a slew of activities in this field. “The deepwater development boom will trigger a positive spill-over effect in supporting services activities, subsequently creating employment in the field and boosting the oil industry’s growth all-around,” he said. In line with the national depletion policy, Nazery said Malaysia advocated the exploitation of its natural resources in a sustainable manner. “This is despite strong demand from local and international markets for its energy resources and the current high prices of energy. This policy continues to drive Petronas to explore oil and gas beyond the traditional areas, including deepwater areas. “It is to Petronas' credit that the production level has been kept steady through the conceptualisation and execution of major projects through innovative and cost-effective developments of such technically challenging sites,” he said. In overcoming the challenges presented by deepwater development, Nazery explained Malaysia has to be as competitive as other international oil majors in developing adequate and technological resources. “Needless to say, it needs to be at the forefront of technological advancement and to put in place skilled resources not only to operate in the challenging deepwater environment at home but to compete with others in bidding for contracts overseas,” he said. He said the importance of providing adequate support services in shoring up Malaysia’s ambitious development plans could not be overemphasized. “Sufficient offshore service vessels (OSV) of the right capabilities must be in place to support deepwater ventures,” he said. © 1995-2005 Star Publications (Malaysia) Bhd.

Saving coral reefs becomes a tourism priority by Bonnie Tsui
Green sea turtles, cascades of glittering reef fish, blooming coral pillars — countless travelers have come nose to nose with a thriving undersea universe while on vacation. But increasingly, divers and snorkelers are swimming over bleached hunks of coral devastated by shore runoff or overfishing. From the South Pacific to the Caribbean, coral reefs — which are among the most delicate of marine ecosystems — are bearing the brunt of climate change and other human-driven activities — including coastal development, deforestation and unrestricted tourism. Now, many in the tourist industry are trying to halt the damage. And it is no wonder. The dollars involved in reef-based tourism are significant: Australia's Great Barrier Reef alone draws about 1.9 million visitors a year, supporting a $4.2 billion industry. According to the Nature Conservancy, the annual economic value of coral reefs to world tourism is $9.6 billion. Growing awareness of environmental issues means that the tourism industry has lately been a partner to conservation efforts in major reef areas. Though the Great Barrier is the most famous reef, it is not the most threatened; its extensive marine management program is widely regarded as a model for conservation. It includes eco-certification programs for tourism operators within the boundaries of the marine park, environmental tourist fees, large no-take zones, species monitoring and tourism industry contributions to the Great Barrier Reef's main research center. But the world's second-largest barrier reef, the Mesoamerican Reef in the Caribbean, is seriously endangered by coastal development, runoff and pollution. The reef system stretches nearly 700 miles from the Yucatán Peninsula of Mexico to the Bay Islands of Honduras. And reefs in the Coral Triangle in Southeast Asia — which reaches from Malaysia to the Philippines, Indonesia and the Solomon Islands, encompassing some of the planet's most diverse marine habitats — have been severely damaged by overfishing and destructive practices, including the use of cyanide and dynamite to capture fish. In 2004, the nonprofit group Conservation International began a program called the Mesoamerican Reef Tourism Initiative, which aims to address the threat that mass tourism poses to the Mesoamerican Reef by engaging hoteliers, developers, cruise lines and local governments in Mexico, Belize and Honduras. There is special emphasis on the Riviera Maya of Mexico, where, less than nine miles offshore, the island of Cozumel is the world's second most-visited cruise destination after Miami, according to the International Council of Cruise Lines. Last year, as part of the Mesoamerican Reef initiative's efforts, the cruise line council began an effort to avoid wastewater discharge by cruise ships in environmentally sensitive areas. "This program will ensure that cruise line wastewater is discharged at least four miles from any of the sensitive marine ecosystems within the Mesoamerican Reef system, thereby minimizing the chance such discharges will have negative impact on the long-term health of the reef," said Jamie Sweeting, who oversees Conservation International's work with the travel industry. The cruise industry is a particular area of concern, since ships regularly disgorge crowds of passengers into fragile coastal areas that strain to absorb the impact. Conservation International estimates that cruise passengers typically make about 2,000 scuba dives in and around Cozumel's surrounding reefs in a single day. "We're working with the municipal government, the local dive and water sports association, and the cruise lines themselves, because they all have a vested interest to look after this coral reef," Sweeting said. Areas being addressed include the creation of a dedicated snorkeling zone in Cozumel to limit visitor impact to one section of the reef, and ensuring that park management fees are collected and put toward protection and management of marine areas. The Mesoamerican Reef Tourism Initiative has also begun a program to evaluate and implement good business practices for conserving water and energy, reducing solid waste and managing chemicals at coastal hotels along the Riviera Maya and in southern Belize. Crucial partnerships between conservation groups and the tourism industry have also taken root in the Coral Triangle. In developing nations like Indonesia, where human and financial resources are slim, the cooperation of private tourism businesses has been instrumental in accomplishing reef conservation goals. For example, Bunaken National Park, in north Sulawesi, is today managed in large part by a local association of dive operators who saw the declining quality of coral (and their livelihood) in the mid-1990s. The Nature Conservancy's Coral Triangle Center works at several sites in Indonesia, including the Raja Ampat Islands in Papua and Komodo National Park, a major protected marine area in the Lesser Sunda Islands. Komodo is now run by a nonprofit joint venture between the Nature Conservancy and a local tourism company. The joint venture, PT Putri Naga Komodo, was established in 2005. Founded in 1980, the park is a World Heritage Site and protects the habitat of the Komodo dragon, as well as important whale migration routes between the Indian and Pacific Oceans. The reefs are rich in coral species and home to up to 1,000 species of fish. "After a decade supporting conservation in Komodo National Park, the Nature Conservancy recognized the need for self-sufficiency," said Marcus Matthews-Sawyer, director of tourism communications for the joint venture. "The idea was that a joint venture between a well-respected NGO and local tourism company would be able to balance conservation concerns with the need to generate revenues to ensure the long-term sustainability of the park." Tourism has helped raise awareness of the destination and of the reefs' biological importance. Blast fishing — using explosives to stun or kill fish — is now prohibited within the park. The ban is credited with a 60 percent increase in hard coral coverage between 1996 and 2002, according to the Coral Triangle Center. The collection of conservation fees from tourists, about $15 a stay, is vital to sustaining park management. The partnership plans to have Komodo self-financed by park fees by 2012. Though Komodo is one of Indonesia's greatest tourism assets — it is one of the most frequently visited nature reserves in the country — conservation work there is also necessary to protect young fish that are a source for surrounding fishing grounds. Enforcement of the park zoning system, which restricts access to certain parts of the reefs, continues to be a challenge because of limited resources. But a major goal of the tourism partnership is supporting sustainable community use of the reef area, which includes providing alternative livelihoods to destructive fishing. "Tourism creates jobs and puts much-needed income into the hands of local people, including those who previously might only have made a living from fishing," Matthews-Sawyer said. All three reef systems — the Great Barrier Reef, the Mesoamerican Reef and the Coral Triangle — are jeopardized by the threat of global warming, which kills coral and leads to a bleaching effect. And while tourism cannot solve the problem of rising sea temperatures, the industry's cooperation to eliminate specific pressures — by establishing a well-enforced no-take zone, or reducing wastewater pollution, for example — helps reefs recover from bleaching and disease. The contribution of conservation fees to support the protected areas, which many businesses have long resisted, is also important. To keep coral reefs from disappearing as quickly as they have in recent years, people need to be involved and educated on every level from local government to hotel developers to cruise lines, said Sweeting of Conservation International. "It took Cancún 35 years to develop to this massive size, and it took less than a decade for the Riviera Maya," he said. "But nature will not let you get away with it." © 2007 the International H