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March 2005

3 countries to conduct marine seismic research
Oil companies of the Philippines, China and Vietnam Monday signed a landmark tripartite agreement in Manila Monday. According to the agreement, a 15 million US dollar joint marine seismic undertaking in the South China Sea will last for a period of three years, a move that President Gloria Macapagal-Arroyo described as a "historic breakthrough" in developing the area of conflict among Association of Southeast Asian Nations (ASEAN) and Beijing into a possible energy source. Arroyo congratulated the Philippine National Oil Company, China National Offshore Oil Corporation and Vietnam Oil and Gas Corporation for the successful negotiations to have the accord. "This is a historic event because it is the first, it is the breakthrough in implementing the provisions of the code of conductin the South China Sea among ASEAN and China to turn the South China Sea into an area of cooperation rather than an area of conflict," Arroyo said when meeting the delegations from the three companies. "It is not only a diplomatic breakthrough for peace and security in the region, but also a breakthrough for our energy independence program because one of the elements of this program, is to work on strategic alliances with our friends and allies so that we can have more supply of energy for the region and our country," she added. In a joint statement, the three parties expressed their desire to engage in the joint research of petroleum resource potential inthe agreement area as a pre-exploration activity. The term of the agreement will be three years and is expected to begin before the rainy or the arrival of the typhoon season. The joint activities will cover an area of about 143,000 square kilometers. In the statement, the three parties affirmed that the signing of the tripartite agreement would not undermine the basic positions held by their respective governments on the South China Sea into an area of peace, stability, cooperation and development in accordance with the 1982 United Nation's Convention on the Law of the Sea and the 2002 ASEAN-China Declaration on the Conduct of Parties in the South China Sea. Chinese ambassador Wu Hongbo told Xinhua that the trilateral cooperation, based on the mutual understanding and common interest,would set a good example for the countries concerned to resolve the South China Sea issue in a peaceful way. "We have to look for the best thing for the region, for our interest. We have to do it collectively," Vietnamese ambassador Dinh Tich told reporters. Philippine Energy Secretary Vincente Perez Jr. said that the agreement was a product of "oil diplomacy" and power of persuasion during meetings and dialogues that started since last year. Perez clarified that what was signed was a mere commercial agreement that would not compromise ant countries territorial claims over the area. He also said that the joint seismic research would only involvethe use of seismic vessels but no drilling would be conducted. "We will just study the potential petroleum resources of the area... This is very important...This is also right on time because of the rising oil prices. This is a big step forwards the so-called Asian energy independence," Perez said. He noted that a successful study of the South China Sea's oil potential could also work to finally resolve the long-standing conflict in the area. Other claimants who might want to participate or raise concernsover the agreement could talk to the Philippines, China and Vietnam, he added. © Xinhua News Agency.

Aceh rebels deny piracy attacks
ONE of the leaders of the Free Aceh Movement (GAM) has insisted the group is not involved in piracy attacks in the Malacca Strait. “We are freedom fighters, not pirates,” spokesman Sofyan Daud was quoted as saying by news agency AFP. “The Malacca Strait is an open area and it’s not clear who the pirates are,” Daud said. The organised attacks on merchant vessels by men armed with machine guns and rocket-propelled grenades suggest a well-drilled outfit, according to law enforcement agencies and the Piracy Reporting Centre in Kuala Lumpur, which has been monitoring piracy attacks worldwide. The Centre is an affiliate of the London-headquartered International Maritime Bureau. In the latest incident on Tuesday, the third in two weeks, pirates boarded a Japanese tug and took the master and two other crew members hostage. The Malaysian police suspect GAM involvement, but Noel Choong, regional director of the Piracy Centre, said his agency has not found any evidence to link these attacks to the GAM rebels. Japan has asked the Malacca littoral states to help in the search for the kidnapped crew and has urged a co-ordinated international effort to combat piracy in the Strait. Most of Japan’s crude oil shipments are transported in ships that transit the 900-km long strait. Singapore’s foreign ministry has assured assistance, and has alerted its Coast Guard and ships within Singapore waters to the 15 March incident. © Lloyd's Register - Fairplay Ltd 2004.

Asian exports push PSA profits up to $544m
SINGAPORE - Strong export volumes from China and the rest of Asia helped drive PSA International's profits up 29% last year to S$881.3m (US$544m). The Singapore-based terminal operator reported a net profit growth of 29.1% in 2004 compared to a year earlier to earn S$881.3m. Revenues grew at much slower rate of 5% last year to hit S$3.58bn. Revenue growth was notably slower than global throughput growth, which was up 15.5% year-on-year to 33.11m teu. PSA put that down, in part, to the sale of non-port businesses. "While throughput grew strongly by 15.5% in 2004, overall revenue increase was 5.3% due to 2003 revenue contribution from non-port subsidiaries, which were subsequently divested. If we exclude non-port businesses from 2003, our revenue grew by 10.2% over 2003," PSA said. The driver of PSA's growth last year was the same as that for the rest of container shipping - strong export growth from China and the rest of Asia. "PSA rode a wave of positive growth in the shipping industry and achieved record business volumes globally in 2004," said PSA chairman Stephen Lee. PSA's homeport of Singapore enjoyed good volume growth last year with throughput up 14.1% to 20.62m teu. Singapore port operations accounted for only 45% of group revenues, however it remained the biggest driver of profits. PSA said that its Singapore port operations accounted for over 50% of its profits growing at 17.2% last year. © tfinforma.com.

Asian shippers call for dialogue
THE Asian Shippers’ Council has called on shipping lines to engage in “constructive dialogue” to resolve a standoff over planned rate increases. The Transpacific Stabilization Agreement has signalled its intention to raise rates this year by $285 per FEU to the US West Coast, $350 per FEU for inter-modal shipments to East and Gulf Coast locations and US interior points and $430 per FEU to the East and Gulf Coasts via the Panama Canal. TSA, which is a grouping of 14 major container lines serving the trade from Asia to ports and inland points in the US, also intends to levy a $400 per FEU peak season surcharge effective from 15 June to 30 November 2005. The rates are justified on grounds of a number of factors including congestion in US West Coast ports. But Council chairman John Lu accused the lines of abusing what he called the monopoly situation. "While shipping lines have a free hand to do as they please, there is no legislation in Asia to protect shippers, apart from Japan,” Lu pointed out. © Lloyd's Register - Fairplay Ltd.

Brutal return of Malacca pirates
MALAYSIA - Heavily-armed pirates have returned to the Malacca Strait after a two month period of inactivity following the Asian tsunami. The pirates, who kidnap crew for ransom, have reappeared with an attack on a Malaysian tugboat. Four gun-toting pirates attacked the Malaysian-registered Highline 26 on Tuesday night and kidnapped the Malaysian master and Indonesian chief officer. A third crewman, the chief engineer, was shot in the leg. The pirates sped away leaving the other six Indonesian crew members unharmed. Anti-piracy watchdog the International Maritime Bureau believes it marks the return of a vicious gang of pirates who mounted a series of increasingly regular kidnap for ransom attacks on tugboats in the northwestern part of the Malacca Strait until the Asian tsunami struck on December 26 last year. “Most likely it is the same people, as the modus operandi is the same,” said Noel Choong, regional manager for the IMB in Kuala Lumpur. As with the series of attacks that took place last year the pirates sprayed the vessel with gunfire before boarding, and on boarding the vessel damaged communications equipment and took senior officers hostage. While in previous cases the pirates normally kidnapped the master and chief engineer, Capt Choong believes they took the chief officer in this case after realising it was the chief engineer they had shot. The tugboat, which belongs to East Malaysian company Skyline Shipping, was reported around 50 nm off Penang towing a coal barge to the port of Lumut when the attack took place. The kidnap is believed to have taken place in Malaysian waters, unlike the majority of past incidents that were in Indonesian waters. “Before the tsunami we saw signs that the attacks were appearing on the Malaysian side,” Capt Choong said. © Informa Asia Publishing Ltd.

Cambodia mulls buying Chinese ships to boost navy: minister
PHNOM PENH : Cambodia is mulling buying ships from China to enlarge its navy in a bid to combat piracy and smugglers operating in the kingdom's waters, a senior minister. "We are planning to buy more ships from the Chinese. Now we are seeking funds to purchase Chinese navy patrol vessels in order to crackdown on pirates and smugglers," co-minister of defence Tea Banh told AFP. "The plans are still being discussed at the moment and we have not secured funding yet," he said, adding that government had set up a committee to negotiate the issue with the Chinese. "We need many more navy vessels to patrol our waters so we can crackdown on pirates and smugglers," he said. Tea Banh declined to give the exact number of ships that Cambodia is seeking to buy. Cambodia's small and ageing navy engages in occasional spats with Vietnam and Thailand over disputed coastal waters, while piracy and smuggling of drugs, petrol and ordinary consumer items is a rising concern. Chinese investments are growing in the kingdom, with a visit by Prime Minister Hun Sen to Beijing last year resulting in a 30-million dollar loan and the launch in November of a 70-million dollar Chinese funded highway upgrade. © AFP

China: from one threat to another by David Morris
China reminds me of that time-honored axiom, "Be careful what you wish for." It was 33 years ago that President Nixon made his historic trip to China. He found a self-absorbed, static, isolationist, communist nation striving for self-sufficiency in all things. Today, the world's largest nation has largely abandoned communism and enthusiastically and successfully embraced capitalism and international trade. We won. So why aren't we savoring our victory? Perhaps because we are discovering that China has become a far more formidable and intimate economic competitor than it ever was as a distant ideological enemy. Since 1980, China's economy has grown faster for longer than any country in history, doubling every 6 to 7 years. In the 1980s and 1990s, that exponential growth went largely unnoticed because it applied to a tiny economic base. But as that base expanded, each doubling added burgeoning amounts of capacity and strength. By 2000, China needed only one more doubling to burst upon the international economic stage as a leading actor. Recognizing that dynamic, the world's manufacturing firms rapidly moved into China to take advantage of its rapidly growing domestic market and its vast quantities of low-paid, highly educated and well-disciplined labor force. In 2004, the curtain went up on China's performance. And what a performance! That year China's import and export volume reached $1.1 trillion, double its 2001 volume. China became the world's third-largest trading nation, next to the United States and Germany. China replaced Japan and Mexico as the largest single source of U.S. imports of consumer electronic products and information technology hardware such as computers. China accounted for one-third of the growth in world oil consumption and 90 percent of the increase in world steel demand. At one point in 2004, China's voracious appetite for materials for its white hot construction and manufacturing markets tied up 20 percent of the world's bulk shipping capacity. Freight rates on transoceanic shipments soared by some 300 percent. U.S. builders ran short of cement. China now accounts for 13 percent of the world's gross domestic product, based on purchasing power parity exchange rates. Imagine the impact of the next doubling. In 2001, the Chinese purchased 2.2 million cars. By 2004, its domestic automobile market exceeded 5 million. In the next 15 years, China's car market is expected to surpass 20 million, exceeding that of the United States. What is the implication of such startling statistics? Let's focus on China's oil consumption, since oil is such a pivotal factor in world affairs. In 2004, China's oil consumption rose by 40 percent, to 6.5 million barrels a day. U.S. domestic demand is 20 million barrels a day. U.S. demand is rising by about 500,000 barrels per day per year. China's is increasing by about 1.5 million barrels per day per year. World oil production is straining to satisfy growing world consumption and the futures price of crude is more than $50 a barrel. Both the United States and China are increasingly dependent on imported oil. Both are aggressively pursuing strategies to maintain their access to oil. To me it looks like China's strategy is more farsighted and coherent. We've spent $300 billion to invade Iraq, have tried to overthrow the Chavez government in Venezuela and now threaten Iran. China has quietly entered into long-term contracts with many of these countries. It has invested about $15 billion in foreign oil fields and expects to invest 10 times more over the next decade. China has begun to negotiate directly with our largest long time oil suppliers to lock up future supplies. Canada is currently our largest supplier. Virtually all Canadian oil pipelines go south to satisfy the energy needs of a thirsty U.S. Midwest. That will soon change. Chinese and Canadian companies are negotiating to build a pipeline from northern Alberta west to British Columbia. Murray Smith, Alberta's former energy minister candidly observed, "The China outlet would change our dynamic." In December, China signed a deal with Venezuela and neighboring Colombia to construct a pipeline linking Venezuelan oil fields to ports along Colombia's Pacific coast. This will allow China to bypass the U.S.-dominated Panama Canal. Venezuela is our fourth-biggest supplier of oil. Congress has asked the Government Accountability Office to investigate the potential impact the Chinese pact might have on our oil imports. China is protecting its energy interests with a string of military bases and diplomatic ties from the Middle East to southern China. Recently, it signed a 25-year oil and gas deal with Iran. Currently, about 80 percent of China's oil imports pass through the Straits of Malacca. China views that Southeast Asia sea corridor as under U.S. Navy control. It is investigating the construction of a canal across the Isthmus of Kra in southern Thailand that would allow it to bypass the straits. Of course, Richard Nixon and Henry Kissinger alone cannot take credit for China's new economic direction. But on this year's anniversary of their historic visit, we might once again muse about the law of unintended consequences. © 2005 Star Tribune.

Crew released unharmed
THE crew of a product tanker and a tug kidnapped by pirates on 12 and 14 March respectively have been released unharmed, the Piracy Reporting Centre of the International Maritime Bureau has confirmed.© Lloyd's Register - Fairplay Ltd 2003.

Dam construction destroying mangroves in Pakistan by Shazad Ali
A natural source of fighting huge waves, mangroves are being destroyed by development programmes and dams in Pakistan, say environmentalists, whose concerns are redoubled by the terrifying Asian tsunami disaster last December that killed over 227,000 souls. One of the world’s most threatened habitats, mangrove swamps provide double protection from cyclones and large waves. Their first layer of flexible branches and tangled roots absorbs the initial shock, while the second layer of tall mangroves serves as a wall capable of fighting with huge waves. A local WWF official in Pakistan said that Indonesia, the hardest-hit country with 173,981 confirmed deaths, had been planning to initiate a project of mangrove plantation spanned over a period of five to 10 years with an idea to combat huge killer waves in future. “We [in Pakistan] are destroying the eco-system as mangroves provide a nursery to fish and help shrimps and other marine life to breed. It's time to review our policies and look at the disaster in Asia. Mangroves stop erosion due to heavy winds, storms, are excellent wind-breakers and serve as a wall against giant waves," Dr Ejaz Ahmad, the deputy director of World Wide Fund for Nature, Pakistan, (WWF Pakistan), told OneWorld. "How important mangroves are could be judged from the fact that where there were less or no mangrove forests there was more destruction, especially in Thailand, India and Bangladesh. But if we see Myanmar there was less damage. It was obviously because of heavy mangroves there that saved the country from major disaster.” Formed in estuaries and muddy inlets on tropical coasts, mangrove swamps often serve as the border between dry land and the seas. In Pakistan there are three patches of mangroves in province of Balochistan in Sonmiani, Kalmat and Jiwani, while Indus Delta has swamps at Sandspit, Rehri and Keti Bandar. The Indus Delta mangroves are the biggest arid climate swamps in the world and Avicennia marina is the major specie called “Timer” in Sindhi language. Due to high tide, they seem half submerged in the mix of sweet and saline water considered natural breeding ground for trees. Besides acting as a nursery for fish, shrimps, crustaceans, oysters, sponges, crabs snails, Pakistan's mangroves are also frequented by about 30,000 migratory birds to save themselves from hard Central Asian winters. Among the birds that visit mangroves are gulls, coots, terns, dalmatian pelicans, flamingos, osprey dowitchers, dunlin oystercatchers, waders and duck. Birds that are permanent residents of the mangroves are herons, egrets, black-winged stilts and cormorants. Ironically, mangrove forests in Pakistan face threat of elimination. “The developmental projects, dams and barrages are the major reason for destruction of mangroves. The network of barrages and large dams has reduced the freshwater supply to sea which is eliminating the mangroves,” said Dr Ahmad. According to a Space and Upper Atmosphere Research Commission (Suparco) study conducted through satellite images in 1988-89, the mangroves in Pakistan covered 160,000 hectares. They were found to be reduced to almost half - just 80,000 hectares - when WWF Pakistan studied the mangroves through their Lahore-based facility in 2002. Describing the situation as alarming, Dr.Ahmad says that extent of the damage is colossal as it has not only reduced the mangroves but their species have also been cut from eight to four during the past four to five decades. "Tarbela and Mangla dams and barrages at Kotri and Guddu have played vital role in destroying mangroves. Freshwater is rare and only rains provide solace to mangroves in this case, he asserted. The government and agriculturalists lay emphasis on watercourses for agriculture sector for better yields, but Dr Ahmad lamented the indifferent attitude of government officials. They are ignoring what he calls the multiple benefits of the mangroves as compared to the narrow economic value of agriculture. “Ironically, the decision-makers think that freshwater should be utilised only for agriculture. But they don’t know what they could get providing a gallon of freshwater to agriculture sector and what they could gain by supplying the same amount of freshwater to mangroves. They are perhaps unaware of the multiple benefits that mangroves offer”, said the official. Dr.Ahmad did not mince words in admitting that activists must strengthen their case: “as an organization and environmentalists, it is our fault that we are yet to determine the dollar value of mangroves. If we know that one hectare of cotton crop will give us Rs200 and mangroves on the same area are giving us Rs1000, then things will definitely change. Had we done that I am sure our priority would have been different,” he opined. Surprisingly, the WWF official said logging, marine pollution and even timber mafia was not as damaging as were the large dams -- largely responsible for reducing freshwater supply to mangrove forests. “When we started working on saving mangroves we inculcated local poor population to save mangrove and catch prawns and fish. And it really worked. We also provided fuel-efficient stoves to the locals so that mangroves could be saved from being used as fuel wood. “We are working on a project at Port Qasim Authority near Karachi where we have 60,000 hectares area which could be covered with mangroves. Sindh Forest Department is also working along with us at Keti Bandar. But there could be no lifelong presence of organization like us and somebody has to take over. We believe on sustainability and for that community is being involved in our project,” said Dr Ahmad. © Oneworld.net.

Global greenfield investment on cards for Tanjung Pelepas
MALAYSIA - The Port of Tanjung Pelepas is mulling its first foray into international terminal operations by investing in a greenfield development. Asked about the possibility of PTP expanding into overseas terminal development, chief executive Dato’ Mohd Sidik Shaik Osman said: “We are toying with the idea. “We have had many offers from ports from a number of countries that would somehow like to team up with us as we have made a greenfield project successful,” he said. “They are somehow more comfortable with us than the big players.” Pelepas is a greenfield site at the southern western tip of peninsula Malaysia, just miles away from Singapore, the world’s second largest container port. Despite being dismissed as a white elephant by some when it soft launched in September 1999, PTP has proved highly successful and reported a throughput of 4.02m teu in 2004, making it the 16th largest box port in the world. Dato’ Mohd Sidik said the port had had five or six offers last year to invest in greenfield sites overseas and was seriously considering the idea. “We are identifying areas where we think it is a good idea to invest in ports — the Indian sub-continent would be a good idea,” he said. The port expects to make a decision by the middle of this year. The venture could either be branded as PTP or its majority shareholder Seaport Terminals. Meanwhile, it is also investing at home, and plans to add two more berths this year bringing the port’s total to 10. The two new berths, including container yard and equipment, will cost in the region of US$150m and increase the port’s capacity to 7.5m teu to 8m teu a year. © Informa Asia Publing Ltd.

Government seeks stronger Asian cooperation in maritime security by Lira Dalangin-Fernandez
Government seeks stronger Asian cooperation in maritime security by Lira Dalangin-Fernandez The Philippines is calling on its Asian neighbors to strengthen maritime security in the region following the abduction of a Filipino and two Japanese seamen in the Malacca Strait last week. Third engineer Edgardo Pagliawan Sadang, along with Japanese Captain Nabuo Inoue and co-engineer Shunji Kuroda, were released Monday off the coastal province of Satun in southeastern Thailand five days after their abduction by pirates. “We are thankful that our worker was released unharmed by his abductors,” President Gloria Macapagal-Arroyo’s spokesman Ignacio Bunye said Tuesday. Bunye said the government hoped that the incident would spur other countries to forge “stronger regional cooperation for maritime security and law enforcement.” “Together with our regional allies, we must close ranks in going after pirates and terrorists, and ensure the safety of trade and travel,” he added. The three were taken to an island after their tugboat was attacked March 14 off Malaysia’s Penang Island. Philippine and Japanese official declined to say whether ransom was paid for their release. © www.INQ7.net.

Greeks say manning is cost problem
GREEK owners have renewed their call for measures to improve the competitiveness of the country's ship register, citing the manning requirements for Greek flag ships as a major cost problem. At a press conference yesterday, representatives of the Union of Greek Shipowners stressed that Greece was an exception in requiring a quota of native seafarers for a ship's crew complement, whereas the safe manning standards was the main requirement anywhere else in the world. UGS president Nikos Efthymiou warned of a transfer of Greek-registered tonnage to the ‘cheaper’ registers of Cyprus and Malta. He called for the Piraeus shipping service infrastructure to be strengthened as the owners had to spend a large part of their earnings to buy services from abroad. Efthymiou said the contribution of Greek shipping to the country's foreign exchange earnings exceeded $17Bn in 2004, up 40% from the previous year. © Lloyd's Register - Fairplay Ltd.

Hazardous cargo industry regulations
MPA Singapore has issued a Port Marine Circular (No 6 of 2005) reminding shipowners of the imminent entry into force of the revised Regulation 13G and new Regulation 13H of MARPOL Annex I on April 5; ships subject to these regulations that arrive in Singapore after that date will need to show the amended Form B to the Supplement of the IOPP Certificate as evidence of compliance. Non-compliant ships may be denied entry to port or may be detained. © Harzadous Cargo Bulletin.

IMO seeks framework for joint Malacca terror patrols
THE International Maritime Organisation is seeking a framework for permanent joint patrols in the Malacca Strait to guard against terror attacks. Speaking at the opening of the Asean Regional Forum on Maritime Security IMO secretary-general, Efthimios Mitropoulous said that it would co-sponsor a ministerial meeting in Jakarta later this year where a ministerial action plan on maritime security will be endorsed. The meeting will explore cooperation between countries in the region over maritime security and also the involvement of the wider community of stakeholders. However Adm Mitropoulous said that permanent joint patrols should only be pursued when the littoral states of Indonesia, Malaysia and Singapore were ready for it. ''Once comfortable and mutually beneficial working relationships have been established, such activities would then provide a firm basis for further cooperation perhaps in the form of some kind linkage or coordination between coast guards and maritime assets in the countries concerned and perhaps leading eventually to permanent coordinated joint patrolling of the area,'' he said. ''It is not difficult to see the practical advantages that would accrue if an agreed framework for this kind of activity could be found.'' Any agreement on joint patrols though faces numerous hurdles over the issue of national sovereignty. While Singapore, which is the most publicly concerned over the threat of maritime terror is keen to involve the international community, Malaysia and Indonesia have steadfast in their view that any international cooperation should only be at an information sharing or capacity building level. © 2005 T&F Informa UK Limited.

Increased patrols in Straits of Malacca
Kuala Lumpur - Malaysia, Indonesia and Singapore are increasing patrols in the Straits of Malacca following three pirate attacks on vessels over the past two weeks. Deputy Prime Minister Datuk Seri Najib Tun Razak said the Government was concerned over the incidents. In the latest incident on Monday three crewmen of a Japanese-registered tugboat, Idaten, were kidnapped by heavily armed pirates at 45.5 nautical miles west of Tanjung Hantu in Lumut. Two other attacks occurred on March 2 and 12. However, Najib noted that littoral states could not stop pirate attacks completely due to the long coastline. On Japan’s proposal to send its coast guard to help patrol the straits, Najib said it was the responsibility of the littoral states to keep the straits safe. “We have to think of the sovereignty of Malaysia and other littoral states,” he said yesterday after receiving cheques from the Maybank Group, The Star and Utusan Malaysia for the National Disaster Relief Fund for tsunami victims. On Indonesia’s delay in sending back its workers to Malaysia following the amnesty programme, Najib said Malaysia wanted Indonesia to speed up their return or the country would be forced to look for alternatives. © 1995-2005 Star Publications (Malaysia) Bhd.

Indonesia awaits Shell's response over Ambalat
The Indonesian government is still waiting for response from Dutch company Shell in the matter of the oil-rich Ambalat maritime area, a senior official has said here. The government issued a warning to Shell demanding that it explain why it obtained concession rights to explore oil in Indonesian territory from Malaysia's national oil and gas company Petronas. The Ambalat area, located in the Sulawesi Sea, is claimed by both Indonesia and Malaysia. Director for International Treaties and Legal Affairs on Economic and Social Cultural Issues Arif Havaz Oegroseno said the government was still waiting for Shell's reply. "Let's see (their reaction)," Havaz, who is also the head of Indonesia's negotiation team on the Ambalat dispute, said on Thursday. Malaysia's Petronas granted concession rights to Shell on Feb. 16 for the exploration of hydrocarbon deposits in ND6 and ND7 oil blocks in Sulawesi Sea. Indonesia, which claims the area as its territory, launched a protest against the government of Malaysia over its unilateral claim on Ambalat waters. Havaz said that the government had also sent a letter to Shell asking the company not to interfere in Indonesia's internal matters and jurisdictions. "We have told Shell that Indonesia will take firm action against it if it engages in any activities in our waters," Havaz said. He said that Indonesia was in a strong position to prove that Ambalat waters were part of Indonesia's territory based on international maritime law, particularly the 1982 UN Convention on the Law of the Sea. This week technical teams from Indonesia and Malaysia met for the first time to discuss Sulawesi Sea issues. Havaz said that the two sides had agreed to hold meetings every two months to resolve disputes in the Sulawesi Sea. The two teams are scheduled to meet in Malaysia in May. © Xinhua News Agency.

Indonesian Navy hunt for kidnapped Japanese tug crew
Tuesday March 15 2005. THE Indonesia Navy is sending three warships to the Malacca Strait to hunt for five seafarers kidnapped in the last few days, as Japan asks Indonesia, Malaysia and Singapore for help in locating three crewmen kidnapped from a Japanese tugboat on Monday. In a resurgence of kidnap for ransom cases after a lull following the Asian tsunami on December 26, five seafarers have been kidnapped from two hijackings in three days in one of the world’s busiest waterways. The Indonesian Navy has sent three warships to hunt for the pirates and the kidnapped crew members. “Yes, we have asked the navy to hunt down the pirates," Indonesian transport minister Hatta Radjasa told reporters on Tuesday. Malaysia has deployed five vessels and a helicopter to comb the northern tip of the Malacca Strait AFP reported. On Saturday the Indonesian master and chief engineer of the Humpuss-owned product tanker Tri Samudra were kidnapped while the vessel was transiting the Strait to Belawan, and a ransom has since been demanded. In a second case on Monday evening the Japanese Master and chief engineer, and the Filipino chief officer of a Japanese-registered tugboat, 323 gt, Idaten were kidnapped after 14 armed pirates attacked tug which was towing an accommodation barge Kuroshio No 1 with 156 workers onboard northeast of Pulau Berhala. The tug was towing the barge from Batam to Myanmar. © 2005 T&F Informa UK Limited.

Indonesian warships hunt pirates after kidnappings
Indonesia is sending three warships to the Malacca Strait to hunt down pirates who have kidnapped five seafarers in three days. The decision to send in the navy came after Japan asked Indonesia, Malaysia and Singapore for help in locating three crewmen kidnapped from a Japanese tug on Monday. A resurgence of kidnap-for-ransom cases, after a lull following the Asian tsunami, has seen five seafarers kidnapped in two hijackings in one of the world’s busiest waterways. “Yes, we have asked the navy to hunt down the pirates,” Indonesian Transport Minister Hatta Radjasa told reporters yesterday. Malaysia has deployed five vessels and a helicopter to comb the northern tip of the Malacca Strait, AFP reported. On Saturday, the Indonesian master and chief engineer of the Humpuss-owned product tanker Tri Samudra were kidnapped while the vessel was transiting the strait to Belawan, and a ransom has since been demanded. In a second case on Monday, evening, the Japanese master and chief engineer, and the Filipino chief officer of a Japanese-registered tug, the 323 gt Idaten, were kidnapped after 14 armed pirates attacked it northeast of Pulau Berhala. The crew of the tug, which was towing an accommodation barge with 156 workers on board, came under fire from pirates when they sent out a distress signal which was picked up by the International Maritime Bureau in Kuala Lumpur. Regional manager for the IMB’s piracy reporting centre, Noel Choong, said they contacted the relevant agencies and the Malaysian marine police dispatched patrol craft to intercept the attack. Apart from the three crew members who were kidnapped, the rest escaped unscathed, although two bullet holes were reportedly found in the tug. The IMB was also able to track the position of the vessel, which was fitted with a ShipLoc satellite tracking device. Capt Choong added that there had been no contact from the pirates. The incident is being taken extremely seriously in Japan, which has been at the forefront of finding an international solution to combat piracy in the Malacca Strait. © Informa Asia Publishing Ltd.

Japanese PM calls for piracy clampdown by Marcus Hand
JAPANESE Prime Minister Junichiro Koizumi has called for Asian countries to set up a cooperative framework to combat piracy. Following the release of two Japanese seafarers kidnapped in the Malacca Strait last week Prime Minister Koizumi told reporters that many incidents of piracy have occurred despite shipping companies' own efforts to protect themselves. Further attacks by pirates should be prevented, he said. The Japanese Prime Minister said that it would need to work with the littoral states of Malaysia, Indonesia and Singapore on a framework. "But Japan cannot do it alone, and we will have to set up a mechanism of close cooperation and support with the countries concerned.” At a recent Asean Regional Forum on Maritime Security in Singapore International Maritime Organisation secretary-general Efthimios Mitropoulos that it was seeking a framework for permanent joint patrols in the Malacca Strait to guard against terror attacks. However such an agreement faces the major hurdle of national sovereignty. Malaysia in particular has been vocal in protecting its national sovereignty and not allowing other nations to have a military presence in its waters. Giving further clue of its intentions Japan’s Ministry of Foreign Affairs Press Secretary Hatsuhisa Takashima said: “In order to prevent the recurrence of this kind of act of piracy, the Government of Japan is determined to work hard, together with the governments of nations in the region, to implement various measures such as joint training, early entry into force of the draft multilateral agreement for cooperation on this issue, and provision of measures and equipment like patrol boats and others.” © 2005 T&F Informa UK Limited.

Japan helps Malacca piracy crackdown
JAPAN - Japan says it is determined to strengthen co-operative measures to combat piracy in the Malacca Strait and may give patrol boats to Indonesia after two Japanese seafarers were kidnapped on Monday. “As one of the leading nations of maritime activities in the world, Japan finds it most important to take the necessary action to maintain safety in the sea lines of communication, especially in an international strait like Malacca,” Japanese Ministry Foreign Affairs press secretary, Hatsuhisa Takashima, told a press briefing in Tokyo. “In the wake of this incident, the Government of Japan is determined to make further efforts to co-operate with those nations in the area to strengthen the measures to combat against piracy.” Asahi Shimbun reported that the Japanese government planned to give Indonesia two or three unarmed, 20m long vessels as grant aid in 2006 or later. On Monday the Japanese master and chief engineer and the Filipino chief officer of a Japanese-registered tug, the 323 gt Idaten, were kidnapped after 14 armed pirates attacked it northeast of Pulau Berhala. Japan has been trying to secure a solution to tackle piracy in the Malacca Strait following the hijacks of two Japanese ships: the Tenyu in 1998 and the Alondra Rainbow in 1999. The waterway is of key importance to the country with around 80% of its oil imports transiting it. Over the last 30 years it has been the only country apart from the three littoral states of Singapore, Malaysia and Indonesia to contribute to the provision of navigational aids in the strait. © Informa Asia Publishing Ltd.

Making money from jellyfish by Sim Bak Heng
BATU PAHAT - Jellyfish, with their stinging tentacles, have been the bane of fishermen for centuries, but not for a select group of villagers in Segenting here. The Segenting fishermen look to the jellyfish as a money-spinner. Dried jellyfish is popular in many Asian countries, especially in Japan where it is considered a delicacy. Jellyfish is also popular in Chinese restaurants where it is marinated with lime juice and sprinkled with freshly-pounded nuts and served as a cold dish. The Chinese, like the Japanese, believe jellyfish has medicinal properties. In Segenting, about 8km from here, two fishing families are still engaged in catching jellyfish. The village has been synonymous with jellyfish since the 1970s, when there was strong demand from abroad. At the time, almost the entire village of fishermen were catching jellyfish (Catostylus mosaicus) off the Straits of Malacca. But a dramatic drop in catch in recent years, believed to be due to increasing pollution in the sea, has forced many to abandon the trade for other jobs. One of the fishermen still at it is Chua Chi Tuan. "My father saw money in edible jellyfish. And my family has been exporting it for two generations," said Chua. He said the waters of the Straits of Malacca were especially aplenty with jellyfish between the months of March and November."We use nets to trap the jellyfish. We can catch as much as 100 tons of the creature in a day."Chua said although there were many types of jellyfish, only the transparent variety was edible. The others are poisonous."Once the jellyfish are brought home, we rinse them in water before removing their tentacles and entrails. "The cleaned jellyfish are then soaked in salt water for two weeks before sale." © 2004 NST Online.

Malaysia and Indonesia play gunboat diplomacy over Sulawesi oil rights
MALAYSIA said on Thursday it would not send ships to a disputed part of the Sulawesi Sea to face off Indonesian warships patrolling there. Indonesia sent three navy warships to the area off the east coast of Borneo island, and has a fourth on the way, in a show of strength after Malaysia awarded oil exploration rights in the area. Indonesia has lodged a protest with Malaysia after it struck an exploration deal with Anglo-Dutch giant Royal Dutch/Shell in the area known as Ambalat. Last year, Indonesia gave another oil giant, US-based Unocal Corp, the right to explore for hydrocarbons in the same area. Malaysia said it would respond to the protest soon, and urged that the neighbours use diplomatic channels to resolve the issue. "Malaysia will not do anything beyond what we consider as our rightful maritime area in line with the law of the sea. To me, there's no need to send ships," Foreign Minister Syed Hamid Albar told a news conference in Putrajaya, the administrative capital. "Our bilateral ties are close and good," he said. "There's nothing to stop us from sitting down and talking to solve any problems." Syed Hamid reiterated Malaysia's position that it had a right to give concessions to oil companies in the area. "We only exercise that right whenever we give concessions," he added. Last month, Malaysia's state oil firm Petronas awarded two exploration blocks in the Ambalat area to its own exploration arm and to Shell. One analyst said the situation could eventually be resolved by both nations agreeing to jointly develop resources in the disputed region. "I do think the moving of warships in the area is significant," maritime policy expert Mark Valencia, who is based in Hawaii, told Reuters. "It's not exactly a friendly act." He saw little risk of violence, however. "It could get kind of nasty," he added. "There could be flexing of muscle, and Indonesia, even though it's poorer, has bigger muscle." Malaysia, southeast Asia's second-biggest crude producer after Opec member Indonesia, has a similar dispute with neighbouring Brunei. Relations between Malaysia and Indonesia - both predominantly Muslim, ethnic Malay states - are also being tested by a Malaysian crackdown on illegal workers, many of them from Indonesia. (Reuters) © 2005 T&F Informa UK Limited.

Malaysia muscles in on bunker business
MPA Singapore has issued a Port Marine Circular (No 6 of 2005) reminding shipowners of the imminent entry into force of the revised Regulation 13G and new Regulation 13H of MARPOL Annex I on April 5; ships subject to these regulations that arrive in Singapore after that date will need to show the amended Form B to the Supplement of the IOPP Certificate as evidence of compliance. Non-compliant ships may be denied entry to port or may be detained. © Harzadous Cargo Bulletin.

Malaysia to boost maritime security
London - Malaysia will set up a 24-hour radar system in the Malacca Strait to guard against attacks by terrorists and pirates, an official said Friday. Deputy Prime Minister Najib Razak, who also serves as minister of defense, said the radar system would increase surveillance on traffic through the strait, especially at night, the official Bernama news agency reported. Najib was speaking during an official visit to Britain. About 50,000 ships pass through the strait every year, carrying a third of the world's trade and half its oil supplies. The waterway is 600 miles long and bordered by Malaysia, Singapore and Indonesia, which currently coordinate patrols against pirates and potential terrorist attacks. Najib said a Malaysian Maritime Enforcement Agency would be in operation by the end of the year to improve security in the strait, guard against illegal immigration and environmental damage, and improve search and rescue operations. Attacks and kidnappings in the strait have increased since late 2003, with four sailors killed in pirate attacks last year. © 2005 United Press International.

Malaysia strives to wipe out piracy in Straits of Malacca
Kuala Lumpur - Malaysia will do the best to eliminate piracy in the Straits of Malacca, Deputy Prime Minister Mohd Najib Tun Razak has said. He believed Indonesia would do the same in its waters. He was asked on the action being taken by authorities to wipe out piracy in the Straits of Malacca after opening the Second Asean Leadership Forum here. The latest case involved the kidnapping of three crew members from a Japanese tugboat, the 323-tonne Idaten, n the straits on Monday, the third in two weeks. Boat captain Nobuo Inoue, 56, chief engineer Shunji Kuroda, 50, both Japanese, and engineer Edgardo Sadang, 31, a Filipino, were abducted by a group of 15 armed pirates. Najib, who is also Defence Minister, said Malaysia and Indonesia had established a pact to conduct coordinated patrols, without entering each other's territorial waters. He did not know whether the abduction was the work of members of the Free Aceh Movement. The movement had denied responsibility. In LUMUT, Chief of the Royal Malaysian Navy, Admiral Mohd Anwar Mohd Nor said the RMN would beef up its surveillance, including deploying its latest helicopter, the Super Lynx, and increase patrols by its surface vessels. "We are also working together with the marine police and the Maritime Coordination Enforcement Centre," he told reporters after opening the RMN Boutique and the certification of MS ISO 9001:2000 of the RMN Aid Depot here. Meanwhile, in northern Penang state, the Idaten was expected to continue its journey to Myanmar. Chief Police Officer Christopher Wan Soo Kee said police would release the tugboat after recording statements from the crew. In the incident, pirates armed with AK47 and M16 rifles and rocket launchers abducted the three men when the Idaten, with a crew of 11, was towing a construction barge, Kuroshio 1, carrying a 150-man crew and undersea pipe laying equipment, was attacked enroute from from Batam in Indonesia to Myanmar. Northern Region marine police chief ACP Shahadan Halus said four patrol boats and a helicopter were continuing the search for the kidnapped crew. © BERNAMA-TNA

Malaysia turns to UK for Malacca Strait surveillance aid
MALAYSIA is turning to Britain for help in increasing its surveillance capabilities in the Malacca Strait to combat piracy and the threat of maritime terror in the busy waterway. "We want to upgrade our sensor capability, especially at night, through the use of radar that can monitor traffic passing the strait,” Malaysian deputy prime minister Datuk Seri Najib Tun Razak told Malaysian reporters during a visit to Britain "We want to ensure that in future our maritime enforcement capability in on par with the international standard, especially in terms of consumer security," Malaysian newswire Bernama reported. With over 50,000 ships a year transiting the Malacca Strait and the area a renowned piracy hotspot issue of maritime security in the Strait is high on the agenda. He said the move was in line with the government's effort to set up a special body, the Malaysian Maritime Enforcement Agency, expected to start operation end of this year, to focus on security measures and upgrade enforcement in the Strait. It is initially investing M$26m in the setting up of the MMEA with further allocation of M$260m for the future. The agency will enforce all the maritime laws relating to illegal immigrants, pirates, sea pollution, terrorism and search and rescue missions. The Malaysian deputy prime minister visited Dover’s Maritime Rescue Coordination Centre to look at its enforcement measures and how it manages the busy Dover Strait. Deputy PM Najib said the Malaysian government needed technical assistance from the Dover Strait management because of its proven efficiency, especially in search and rescue operations. © 2005 T&F Informa UK Limited.

Malaysian police on trail of Japanese tugboat kidnappers by Marcus Hand
MALAYSIAN Marine Police say they have detained one of the fishing boats used in a pirate attack on Japanese tugboat in which three crew members were kidnapped. The Japanese tugboat Idaten was attacked on March 14 by pirates in three fishing boats and kidnapped the Japanese master and chief engineer, and the Filipino chief officer. The Malaysian Marine Police said they had found a fishing boat with the same registration number as was given by witnesses on the tugboat and the barge. The crew of four nationals and one Malaysian have reportedly been detained. It is not clear if any of the crew found onboard the fishing boat were involved in the attack with the pirates widely believed to be Indonesians. A expert said that the pirates often commander fishing boats to use in attacks threatening the crew. The Malaysian Marine Police also hinted that they might know where the pirates were hiding. "Perhaps I can say that we have got a lead, we have got some indication, additional information for us to know further where the victims are being detained," Marine Police Force Commander Abdul Rahman Ahmad was reported as saying by the Japan Times. The is great deal of international pressure on Malaysia and Indonesia law enforcement to produce results in this, the third reported kidnap for ransom case in the Malacca Strait in two weeks. As of Friday afternoon no ransom demand had been made prompting fears from some officials that given the huge outcry over the incident and resulting law enforcement response the pirates have simply decided to kill their hostages rather than potentially give away their position by demanding a ransom. A ransom is normally demanded within a couple of days in such cases, however the pirates can also normally bargain little if any action will be taken against them. The Japanese owner Kondo Kaiji has stated publicly it is willing to pay a ransom to ensure the release of the three kidnapped crewmen. In the kidnapping of two Indonesian seafarers from the Humpuss-owned product tanker Tri Samudra in the Malacca Strait on March 12 ransom negotiations are understood to be ongoing. © 2005 T&F Informa UK Limited.

Marine police close in on Malacca Strait pirates
Malaysian Marine Police have detained one of the fishing boats allegedly used in a pirate attack on a Japanese tug in which three crew members were kidnapped. The Japanese tug Idaten was attacked on March 14 by pirates in three fishing boats, which resulted in the kidnapping of the Japanese master and chief engineer, and the Filipino chief officer. The Malaysian Marine Police said they had found a fishing boat with the same registration number as was given by witnesses on the tug and the barge it was towing. The crew of four nationals and one Malaysian have reportedly been detained. It is not clear if any of the crew found onboard the fishing boat were involved in the attack, with the pirates widely believed to be Indonesians. A piracy expert said that the pirates often commandeer fishing boats to use in attacks threatening the crew. The Malaysian Marine Police also hinted that they might know where the pirates were hiding. “Perhaps I can say that we have got a lead, we have got some indication, additional information for us to know further where the victims are being detained,” Marine Police Force Commander Abdul Rahman Ahmad was reported as saying by the Japan Times. There is a great deal of international pressure on Malaysian and Indonesian law enforcement to produce results in this, the third reported kidnap for ransom case in the Malacca Strait in two weeks. © Informa Asia Publishing Ltd.

The Maritime Security by Mumtaz Hamid Rao
Speaking at the briefing about Pakistan Navy’s war-games at PNS Jauhar in Karachi—Prime Minister Shaukat Aziz said on Monday that Pakistan will not allow domination of the Indian Ocean by any country. He said Pakistan has no aggressive designs, yet it cannot ignore its security imperatives and maritime interests. He felt optimistic that the lessons of the war-games—will help crystallize the strategic thought process and associated plans.Pragmatically, there can be no two opinions that strong and credible defense is vital for national security as well as for peace in the region. Pakistan’s security strategy is—thus rightly designed to retain a minimum deterrence to check any aggressive pursuits of the enemy. Pakistan’s track record bears testimony to the fact that it has no aggressive designs against any country. By all perceptions—it wants to live in peace and devote its energies to the amelioration of its people’s lot. It’s, however, unfortunate that its’ neighbor—India is glued with hegemonic tendency with highly expansive ambition to dominate the region in keeping with its futuristic strategists’ vision of Akhand Bharat—that is amply substantiated by its nuclear doctrine and unabated accumulation of sophisticated and toxic weapons. New Delhi’s blue water craze is also no secret. Pakistan has particularly remained in India’s focus to undermine its rights and interests in one way or the other—since the insight that the Indian leadership has not accepted Pakistan from the core of their hearts is not all wrong. Mindful of India’s designs—Pakistan cannot obviously remain oblivious to its security imperatives. Pakistan cannot, in fact, afford to allow any threat to its maritime interests and has to keep the sea lanes open for trade and transportation. With this realism, assertion by Prime Minister Shaukat Aziz that Pakistan will not allow domination of Indian Ocean—by any country represents the nation’s resolve to defend the country’s interests by all means. In fact, Pakistan will be fully within its right to take all apt and appropriate measures to protect its legitimate maritime interests. At the same time, its’ encouraging that Pakistan Navy is fully alive to the situation and is vigilant enough—to foil any threat on this count. We hope that Pakistan Navy’s war-games will lead to articulation of the strategy to keep the sea lanes clear of any threat from the forces of domination and expansion—in the region of South Asia. The exercise will expectantly sharpen Pakistan Navy’s vision—of a proactive role in the nation’s security strategy—in all modes and manners as well as with a dynamic and fascinating style. © Pakistan Times.

MISC makes long term credit A grade
MALAYSIA - Ratings agency Standard & Poor’s has upgraded Malaysia International Shipping Corp’s long term credit rating to A- on the back of its exit from bulk shipping. “The upgrade in the rating on MISC follows its plan to use proceeds of US$740m from the sale of 32 bulk carriers to repay existing debt, and to fund its upcoming vessel purchases. This is expected to improve its capital structure faster than expected,” said Standard & Poor’s credit analyst Ee-Lin Tan, associate director in the Corporate and Infrastructure Ratings Group. MISC is selling its remaining fleet of 32 bulkers to the Restis Group for US$740m, gaining US$440m profit. The Malaysian state shipping company’s credit rating was raised from BBB+ to A- with a stable outlook. Liquidity has been strengthened by receipt of part of the US$740m from the bulker sale and the prepayment of M$823m ($216.66m) of short term debt related to American Eagle Tankers. “The acquisition of American Eagle Tankers in July 2003 has also contributed positively to MISC’s overall operations without significant integration and operational issues,” said Ms Tan Tan. S&P said the credit rating reflected its strong credit profile underpinned by its robust US dollar cash flows from LNG shipping contracts. Nearly all of MISC’s LNG tankers are on charter to parent Malaysian state oil company Petronas and the LNG shipping is expected to account for 50% of earnings before tax, interest and depreciation over the next three years. © Informa Asia Publishing Ltd.

Monitoring system for fishing vessels by Hamdan Raja Abdullah
MUAR - The authorities will be able to detect the movement of deep-sea fishing craft when Malaysia complies with a UN resolution to fit vessel monitoring system (VMS) devices in these boats by 2008. The country's Fisheries Department is looking into how this ruling can be carried out and will conduct studies soon on the different types of vessels as well as their sizes, tonnage and other related matters. Agriculture and Agro-Based Industries Minister Tan Sri Muhyiddin Yassin said the vessels would include those licensed to fish beyond the 12-nautical miles zone from the coast. The Food and Agriculture Organisation under the United Nations had called for all fishing nations to impose the regulations by 2008, he told reporters after meeting fishermen at Parit Jawa, near here, yesterday. “It is important for our deep-sea fishing vessels to have these VMS devices so that we can detect their movement and know where they are in the open sea,” said Muhyiddin, who was accompanied by Malaysian Fisheries Development Council chairman Adam Hamid. “We have asked the Fisheries Department to look into the present maritime laws and carry out studies on ways to implement the monitoring system by 2008. “When fully implemented, the system will tell us when a vessel leaves for sea, when it returns, where it goes to fish and the amount of fish hauled,” he added. Muhyiddin said VMS devices could also show if vessels encroached into restricted zones. He said the big vessels, which are licensed to fish outside the 12-nautical miles zone, should not be allowed to fish near the coasts, adding that the enforcement unit of the Fisheries Department in all states as well as the marine police would be asked to book big fishing vessels encroaching into coastal zones. The department has laws which empowered it to fine such vessels up to RM20,000 for every encroachment, he said. He added that fines of just RM500 would not deter the deep-sea fishermen from entering into zones meant for traditional fishermen. © Star Publications (Malaysia) Bhd.

Owners to sue weather bureau
MEMBERS of a ship owners’ group in the Philippines are planning to file a lawsuit for negligence against the country’s weather forecasting bureau because it allegedly sent out inaccurate dispatches about a storm last week. The Visayan Association of Ferry Service and Coastwise Operators said its members incurred about PhP60M ($1.11M) in losses last week after the coastguard prevented passenger/cargo ships of less than 1,000gt from leaving port following a declaration by the Philippine Atmospheric, Geophysical and Astronomical Services Administration that Cebu was under signal no. 2. Typhoon Roke was said to be no storm at all by the time it moved to Cebu area on 16 March. The owners accused the weather bureau of failing to monitor and evaluate the situation properly, leading to the issuing of storm warnings. A spokesman for the owners’ group, Jeffrey Solon, said the suspension of departures for almost 48 hours caused huge losses, leaving about 30 vessels idle and more than 1,000 passengers stranded. Most of the 40 Visayan Association members operate their vessels between the Visayas and Mindanao. © Lloyd's Register - Fairplay Ltd 2003.

Pirates release kidnapped seafarers
THAILAND - Five seafarers kidnapped by pirates from two different vessels in the Malacca Strait last week have been released, with a ransom paid in at least one case. The master and two crewmen taken hostage from Japanese tug Idaten on March 14 were released on Sunday, while the master and chief engineer of the Indonesian tanker Tri Samudra, kidnapped two days earlier, were released on Thursday. Japan’s Foreign Affairs Ministry said yesterday that the two Japanese seafarers and one Filipino kidnapped from the Idaten were found on a small boat 12 nautical miles off the coast of Satun in southern Thailand. “It’s like I’m finally back in the world of the living,” Shunji Kuroda, one of the kidnapped sailors, said in a phone interview with NHK television. “We just suffered cuts on the soles of our feet as we walked through mud of a jungle,” he said, noting that the pirates had not harmed them. They were transferred between five different fishing boats following the attack. Japanese officials would not reveal whether a ransom was paid by the tug’s owner, Kondo Kaiji. The shipowner said last week it was willing to pay a ransom to secure the safe release of the crew. Malaysian officials believe a ransom may well have been paid by the owners. “We believe there could have been some secret deal between the owner and the pirates,” said Mokhtar Othman, a deputy superintendent of Malaysia’s marine police, Reuters reported. © Informa Asia Publishing Ltd.

Pirates release sailors by Marina Emmanuel, Audrey Dermawan and Aaron Ngui
Georgetown - The skipper and two crew members of the Japanese tugboat Idaten, kidnapped by pirates in the Straits of Malacca a week ago, arrived here this evening. They were released early yesterday in the sea off southern Thailand and were plucked from a small boat in the waters about 20km offshore. Sporting "five o’clock shadows" , the vessel’s captain, Nobou Inoue, 56, chief engineer Shunji Kuroda, 50, and Filipino engineer Sadang Piawang, 41, in recalling their ordeal, said they were made to get in and out of boats 12 times before being taken to an island. Then they had to trudge barefoot through the jungle and survive on rice and fish for nearly a week. They also spoke of their fear and exhaustion while in the jungle under the watchful eyes of five armed pirates. A tearful Piawang, who only managed to express his thanks to the Marine Police before his voice cracked, had to be taken to his room midway through the Press conference, after which no reporters were allowed to speak to him. Kuroda said: "I have been away from society for the past one week and the first thing I wish to do when I return to Japan is to hide from the media and spend time with my family." Relating through an interpreter their time in captivity, the three said they had been treated well by their captors, although they suffered sore and lacerated feet after being made to walk barefoot in the muddy forest. They were later left on a fishing boat adrift at sea for two to three days. Asked how the Japanese crewman had communicated with their captors, Kuroda said Piawang was the contact person between them and the pirates. "He understood a little of what the pirates said and we believe they may have been Indonesians." Meanwhile, Penang’s chief police officer, Deputy Commissioner Datuk Christopher Wan Soo Kee, told reporters no ransom had been demanded by the abductors for the release of the three crew members. © 2004 NST Online.

Pirates release tug duo in ransom payout
MALAYSIA - The master and chief officer of a Malaysian tugboat kidnapped by pirates last week in the Malacca Strait have been released. “We have received verbal confirmation from the owners that the crew has been released,” said Noel Choong, regional manager of the International Maritime Bureau’s piracy reporting centre in Kuala Lumpur. The Malaysian captain Wong Check Tung and Indonesian chief officer Munaji of the Malaysian-registered tugboat were kidnapped in the Malacca Strait last week after four gun-toting pirates stormed the vessel. The tugboat’s chief engineer was shot in the leg when the pirates sprayed the vessel with gunfire forcing it to stop. He said that the two crew members were released on Tuesday and were now at a police station in Port Klang. The IMB is still awaiting official confirmation from the Malaysian police of their release and no further details were available. It is believed that a ransom was paid for the release of the two men, but that a demand by the pirates of M$1m (US$263,139) reported by Malaysian press was incorrect and it was in fact a much lower amount. While controversy remains over the payment of ransoms, shipowners are being left with little choice if they want to see their crew alive due to a lack of action by the Indonesian authorities to combat the problem. The pirate gangs are believed to be based in the Indonesian province of Aceh. © Informa Asia Publishing Ltd.

Pirates release tug crew
PIRATES have released the Malaysian captain and Indonesian chief officer of a tug who they had kidnapped in an attack on 28 February off Penang port in Malaysia. The men landed safely in Port Klang in a fishing boat on 8 March, the Kuala Lumpur-based Piracy Reporting Centre of the International Maritime Bureau has confirmed. It is believed that ransom was paid, but no details are available. Kidnapping of crew for ransom had been on the rise in the Malacca Strait before the Indian Ocean tsunami, which hit the Aceh coast of Sumatra island on 26 December. Since then the pirate gangs, said to be Indonesian and from Sumatra, seem to have re-grouped, the IMB has observed. The kidnapping took place after the tug, which was towing a coal-laden barge, was sprayed with bullets. The chief engineer was wounded in the attack. © Lloyd's Register - Fairplay Ltd 2004.

Pirates return to terrorise Malacca Strait by Marcus Hand
After a two month hiatus following the Asian tsunami heavily armed pirates who kidnap crew for ransom in the Malacca Strait have returned with an attack on a Malaysian tugboat. Four gun toting pirates attacked the Malaysian-registered tugboat Highline 26 on Tuesday night and kidnapped the Malaysian master and Indonesian chief officer. A third crewman, the chief officer, was shot in the leg as the pirates.After kidnapping the two crew members the pirates sped away leaving the other six Indonesian crew members unharmed. Anti-piracy watchdog the International Maritime Bureau believes it marks the return of a vicious gang of pirates who mounted a series of increasingly regular kidnap for ransom attacks on tugboats in the northwestern part of the Malacca Strait until the Asian tsunami struck on 26 December last year. "Most likely it is the same people as the modus operandi is the same," said Noel Choong, regional manager for the IMB in Kuala Lumpur. As with the series of attacks that took place last year the pirates sprayed the vessel with gunfire before boarding, and on boarding the vessel damaged communications equipment and took senior officers hostage. While in previous cases the pirates normally kidnapped the master and chief engineer, Capt Choong, believes they took the chief officer in this case after the realised the chief engineer was injured. The tugboat which belongs to East Malaysian company Skyline Shipping was reported around 50nm off Penang towing a coal barge to the port of Lumut when the attack took place. The attack is believed to have taken place in Malaysian waters, unlike the majority of past incidents that were in Indonesian waters. "Before the tsunami we saw signs that the attacks were appearing on the Malaysian side," Capt Choong said. He believed this could have in part been due to repeated warnings for shipping to stay as close to Malaysian waters as possible. Prior to the tsunami on 26 December attacks on tugs and barges in the northwestern Malacca Straits had reached alarming proportions becoming an almost weekly occurrence. While kidnapping incidents ceased after the tsunami the IMB kept the region on its list of piracy hotspots and warned that the pirates could well regroup once life began to return to normal. Malaysian newswire Bernama reported Penang police chief Datuk Christopher Wan Soo Kee as saying that the pirates in latest incident had not made contact with a ransom demand. He said the marine police had asked the authorities in Sumatra to help locate the boat used by the pirates and their two kidnap victims. The injured crew man is reported to be in a stable condition after being hospitalised in Penang. © 2005 T&F Informa UK Limited.

Port security seen as modern piracy by Rob Varnon
Stamford — Regulations aimed at preventing terrorism and oil spills may be treating today's seafarers like the rogues and freebooters in the time of Captain Kidd, who prowled the port cities of Connecticut more than two centuries ago. That's an opinion voiced by Douglas Stevenson, director of the Center for Seafarer's Rights of New York and a retired U.S. Coast Guard Commander, and an exhibitor at the Connecticut Maritime Association's Shipping 2005 conference Tuesday. The three-day annual event is being held at the Westin Stamford Hotel; it concludes today. In its 21st year, the event generally attracts 1,500 people from all over the world who are involved in the commercial shipping industry to discuss innovations and problems confronting their businesses. Stevenson said new regulations that are supposed to help keep America safe from terrorist attacks and ecological disasters are being used to charge seafarers a lot of money to come ashore and imprison them for months at a time. Foreign crews are being kept in the United States, sometimes in jail, because they were on board ships when an accident occurred that spilled oil, he and others said. "They're being held as material witnesses to pollution crimes," he said, and in at least one California case, a crew was actually shackled by federal marshals and kept in jail. This is a result of tougher regulations and penalties being levied against shipping companies that are involved in accidents, according to some conference participants. Stevenson said a problem that is occurring in Connecticut involves security companies charging seafarers exorbitant fees in order to gain access to land facilities in ports under new security regulations. For example, crews making deliveries to the Magellan Terminal in New Haven are being charged these fees to be escorted to the port's facilities, he said. Paula Farrell, a Magellan spokeswoman, said her company does not charge the mariners the fees, but that the security company it hired in order to comply with federal regulations does. On July 1, 2004, the U.S. adopted and put into practice new maritime security rules that require all ports and ships to have security plans. All foreign vessels bound for American ports must also contact those ports 96 hours before arrival and be prepared to vouch for cargo and seafarers. Farrell said the fee is approximately $160 per hour, but that's not per person. The fee covers all the crewmen, she said. Farrell was not at the conference. C. Sean Day, a Greenwich resident and chairman of Canada-based Teekay Shipping Corp., said during a panel discussion that attracting good people is one the industry's biggest problems. In 300 years, Day said, seafarers have not been able to shake the perception that they are "freebooters and rogues," and prone to violence, and that's how they're treated today under these new rules. The CMA gave Day its 2005 Commodore Award for his contribution to the maritime community. Day reminded the audience that one of the main causes of accidents is human error and, as it becomes harder to recruit good people, ship owners will have to rely more and more on less competent ones. Even the Coast Guard admitted that seafarers aren't being treated fairly these days. "Seafarers have felt the brunt of — I don't want to say ridiculous security policies — but unreasonable security practices," said U.S. Coast Guard Rear Adm. Larry Hereth, who was part of the same panel discussion on industry issues. Hereth and others said they hope plans under way to create an international identification card system for mariners will straighten out some of the problems, but when such a system can be instituted remains anyone's guess. As to how the new regulations are working out, Hereth said that when the measures went into affect, one in five ships had problems with security, but today it's one in 100. Still, there are approximately 12 cases a month of stowaways arriving in the U.S., he said. To respond to the enhanced security requirements, the Coast Guard expanded its operations and now has offices across the globe where officers are reviewing the security practices of all 135 of America's trading partners, Hereth said. The major concerns at home remain the possibility of small plane, boat or scuba diver attacks against vital targets, he said. But Hereth said new technology is being developed to help prevent these types of attacks. Donald Frost, a Fairfield resident and former CMA president, said the industry is dealing with a number of issues beyond basic security. There is concern that delays in Chinese harbors or in the Panama Canal because of increased traffic will harm the global economy, Frost said. What people need to remember, according to Frost, is that the ship that is delayed by one of these choke points may be the same ship that is supposed to deliver materials to an American company, thus hurting that company. © MediaNews Group, Inc.

PSA to fast-track terminal growth
PSA is looking to fast-track its expansion of the Pasir Panjang Terminal in Singapore in response to surging volumes. The company has plans to build three berths in addition to the five already planned between 2005 and 2006. Grace Fu, chief executive South East Asia and Japan, told Fairplay that PSA was in talks with the government for additional land, and this was very close to being granted. Fu added that if the land is granted, PSA would build three new berths this year and another five in 2006. Under existing plans, 15 new berths will be added to the Pasir Panjang Terminal over the next five to seven years, boosting annual capacity by 50% to 31M TEU. Singapore handled a record high of 20.6M TEU in 2004. Overseas volumes for the first two months of 2005 touched 2.03M TEU, an increase of almost 11%. When asked whether any additional terminal joint ventures would be forged in Singapore on the lines of PSA-Cosco tie-up, Fu responded: “Some discussions are going on”. © Lloyd's Register - Fairplay Ltd 2004.

PTP plays down overseas plans
PORT of Tanjung Pelepas in Malaysia has played down reports that it is planning to invest in greenfield projects overseas. “PTP has no firm plans currently. There are indeed offers and we are only at a very early stage of reviewing it,” a spokesman clarified. PTP itself is a start-up port that was set up in Johor state as a potential rival for Singapore. Since setting up operations in the year 2000, it has emerged as a container transhipment facility in its own right weaning major lines Maersk Sealand and Evergreen Marine from neighbour Singapore. During 2004 PTP handled 4M TEU. Total annual capacity at the port, where currently eight berths are operational, is around 6M TEU. Two more berths and a new container yard will be built over the next two years increasing annual capacity to around 1.5M TEU. The port, which is controlled by tycoon Syed Mokhtar, also plans to induct more cranes. © Lloyd's Register - Fairplay Ltd 2004.

Selendang Ayu master admits lying to US safety authorities
US - The master of the Selendang Ayu has joined the ranks of merchant mariners facing criminal prosecution after admitting he lied to the US National Transportation Safety Board. Captain Kailash Bhushan Singh, 52, was to plead guilty yesterday at the US District Court in Anchorage. He was to admit telling the board that the crew had shut the engines 11 hours before officials in Dutch Harbour were alerted when they were actually shut down 13 hours earlier. According to local sources the judge was expected to accept the master’s plea as well as an agreement with prosecutors for a suspended three-year sentence and release of the master on probation. Assuming this came off as planned, the master and his wife were scheduled to leave for their native New Delhi on Saturday, Lloyd’s List was told. The 1998-built, 72,937 dwt bulker, owned by IMC Group, spilt 335,000 gallons of fuel in sensitive Alaskan waters after encountering cylinder problems in its MAN B+W slow speed engine on December 6 last year while sailing from Seattle to China. The master and chief engineer shut the engines down in 30 ft seas trying to fix the problem and, having failed, waited 13 hours before calling Dutch Harbour to request repairs. © Informa Asia Publishing Ltd.

Selendang Ayu master pleads guilty
Kailash Bhushan Singh, captain of the Selendang Ayu, which broke up in the Aleutian Islands in December, will plead guilty today in Anchorage’s US federal court to lying to investigators. Informed sources have told Fairplay that Singh will plead guilty to one count of giving false information to the National Transportation Safety Board (NTSB) regarding how long the Malaysian-flagged cargo ship’s engines were shut down before its grounding. In his initial meeting with NTSB investigators, the 52-year-old Indian said the engines failed 11 hours before he notified the Coast Guard of the ship’s predicament. Now, he confirms the engines stopped an additional two hours before the incident that led to six deaths during a failed helicopter rescue of the crew and an oil spill that left more than 1,100 tonnes of fuel on the shores of Unalaska Island. Singh is hoping for a sentence of probation so he can return home, but local environmental activists, like the Prince Williams Sound Regional Citizens' Advisory Council, are asking for a heavy sentence to prevent similar situations in the future. US officials are continuing their investigation into the accident and are paying special attention to any possible negligence on the ship owner’s part. © Lloyd's Register - Fairplay Ltd.

‘Sharing pact' one way to solve Sulawesi Sea spat by Mark Valencia
March 15, 2005. The recent joint statement by the Indonesian and Malaysian foreign ministers that the Sulawesi Sea dispute would be resolved peacefully was a welcome step in defusing a potentially dangerous situation. Indonesia's deployment of seven warships and four F-16 fighter jets to the disputed portion of the Sulawesi Sea, as well as its placing of a battalion of amphibious forces on standby for deployment to the area, underscored the potential seriousness of the dispute. Malaysia probably understands that the current Indonesian government is in no position to be passive regarding foreign claims to what it considers its continental shelf, which has much oil potential. Given the secessionist movements in Aceh and West Irian, the independence of the former East Timor, and the loss of the islands of Sipadan and Ligitan to Malaysia through a decision of the International Court of Justice (ICJ), the Indonesian government's very legitimacy could be threatened if it appeared to be ineffectual in defending its sovereignty. Indeed, domestic politics probably forced Jakarta's muscular stance. The Sulawesi dispute came on top of Malaysia's crackdown on illegal Indonesian immigrants. Anti-Malaysian demonstrations have broken out in Makassar and Jakarta. Indonesian Parliamentary Speaker Agung Laksono has called for the use of military force if necessary and Mr Theo Sambuaga, the chairman of Indonesia's Commission on Political and Security Affairs, has urged Jakarta to recall its ambassador from Kuala Lumpur. Malaysia's claim to the area in question as part of its continental shelf is based on its 1979 Peta Baru (new map), which Indonesia has never recognised. The claim is based on Malaysia's ownership of Sipadan and Ligitan, but a minority opinion in the ICJ case states that the awarding of the islands to Malaysia does not necessarily mean that they could be used as basepoints to claim a continental shelf and a 200-nautical mile (nm) Exclusive Economic Zone, but perhaps only a 12nm territorial sea. The Malaysian continental shelf claim encloses the edge of the onshore/offshore oil and gas bearing Tarakan basin. If Sipadan and Ligitan cannot be used as basepoints, an equidistance line between Indonesia's archipelagic baselines and Malaysian territory would give more of this basin to Indonesia. But Malaysia seems to have claimed territorial seas and a section of the continental shelf which extend beyond the line of equidistance with Indonesia. A length of the boundary Malaysia claims does follow closely an equidistant course, but it then seems to extend too far to the south-east, discounting Pulau Maratua, a feature forming part of Indonesia's archipelagic baseline. Moreover, Malaysia's inferred baseline, which links the Malaysian territory of Sebatik Island with Sipadan, does not connect islands fringing the coast. Nor does it enclose a coast which is deeply indented, and it deviates appreciably from the general direction of the coast. This means it may not conform with the provisions for baselines stipulated by the 1982 United Nations Treaty of the Law of the Sea. Also, Malaysia has unilaterally drawn the common territorial sea boundary as a line which bisects the angle formed by Indonesia's archipelagic baseline and Malaysia's inferred baseline. Such a line assumes that Batuan Unarang, a rock which Indonesia claims and from which it may be entitled to claim a 12nm territorial sea, belongs to Malaysia, presumably because it lies within its claimed territorial sea. Malaysia's military head, General Zahidi Zainuddin, has already said that the navy will protect the country's oil industry. And according to Indonesia, Malaysian aircraft have repeatedly violated Indonesian airspace in the area. Meanwhile, according to Indonesia, fishermen from Nunukan were fired upon and one of their boats rammed by the Malaysian warship KD Sri Malacca near Batuan Unarang. Malaysia subsequently protested against the 'intrusion' of Indonesian naval vessels into Malaysian territorial seas, a protest which Indonesia rejected. The two sides have now agreed to 'joint patrols' in the area to avoid similar incidents, and Indonesia has withdrawn five of the seven warships it had sent there. However, the presence of the remaining warships and planes from both nations in the disputed area is worrisome. The two countries may be as close as 'teeth and lips', but sometimes teeth can bite lips. Now that the Indonesian media - at the request of Indonesian President Susilo Bambang Yudhoyono - have ceased their histrionics, experts from both sides can begin to try to resolve the issue, or seek a means of doing so. Fortunately - and wisely - both Jakarta and Kuala Lumpur have pledged to seek a peaceful solution. Malaysian Foreign Minister Syed Hamid Albar met his Indonesian counterpart Hassan Wirayuda in Jakarta last Thursday to discuss the dispute. And technical expert teams from both sides will meet next week to begin to try to resolve the complicated issue. Although the International Law of the Sea Tribunal has been mentioned as a possible forum for resolution of this dispute, this is an expensive and time-consuming option and one or the other party may be very unhappy with the outcome - as was Indonesia in the ICJ case. A negotiated solution is a better bet for both, to resolve the dispute as well as to ensure enduring good relations between the two countries. One problem is that Indonesia appears to want to negotiate all its boundary issues with Malaysia, including those in the Malacca Strait and South China Sea, in one forum, presumably so it can leverage the negotiations with trade-offs. Malaysia rejects this package approach. However, given Indonesia's current sensitivities regarding its national integrity, Malaysia's negotiation of a mutually acceptable solution to the Sulawesi Sea dispute would be in the interest of stable long-term relations with its much larger neighbour. Indonesia has offered to negotiate a 'sharing agreement'. In such an arrangement, the two sides could either agree on a boundary or agree on the dimensions of the area in dispute and leave the boundary for future generations to resolve. But with or without a boundary, they would then proceed to manage and share the profits from any resources discovered in an agreed area – perhaps that lying between Malaysia's unilateral claim and its islands' territorial sea. The theory is that access to some oil or gas is better than none. Besides, no foreign oil company is likely to operate in an area of potential conflict. Malaysia already has such joint development agreements with Thailand and Vietnam, while Indonesia had one with Australia in the former East Timor. Perhaps in return for Malaysia's agreeing to negotiate a joint development arrangement for the Sulawesi Sea, Indonesia will agree to negotiate a solution to that dispute separate from the others. In any case, the bigger picture of good relations, Asean solidarity and regional stability must be kept firmly in mind. © 2005 Singapore Press Holdings Ltd.

Shipping hopes high in Malaysia five-year plan
MALAYSIA - Neighbours Malaysia and Singapore compete with each in just about everything and the maritime industries have certainly been no exception. Having already proved themselves serious competitors in the container port business, Malaysia is now out for a slice of Singapore's lucrative bunkering business. At present, Malaysia's bunker supply is imported through Singapore which is the world's largest bunkering port. Malaysia has had ambitions to change this situation for some time and its vision is now getting closer to becoming a reality. Labuan offshore company KIC Oil and Gas plans to invest between M$600m (US$159m) and M$700m ($184m) to build a 1.2m cu m oil storage facility on a reclaimed island in Tanjung Bin, off Tanjung Pelepas, Johor. KIC chief executive Abdul Rashid Isa Al-qadiry said recently that it aims to be major regional player in the supply of bunker fuel through a joint venture with Swiss-based Trafigura Beheeer. On February 28 this year, KIC signed an agreement with Trafigura for the supply of fuel oil feedstock to KIC and for KIC to provide storage and blending services at its processing terminal in Tanjung Pelepas. "The timely collaborative arrangement with Trafigura gives a boost to KIC and with the additional arrangement in place, KIC will be able to ensure a steady supply of bunker fuel oil at competitive prices to Malaysian ports such as Port of Tanjung Pelepas and Port Klang to meet the existing demand," he says. "Being able to ensure the steady supply of bunker fuel oil at competitive rates will further enhance the attractiveness of the PTP and Port Klang. This will in turn attract more of the major shipping liners to call at the ports, which translates into more business opportunities for all parties." At present, KIC operates a 270,000 dwt very large crude carrier storage and blending facility off Tanjung Pelepas and currently has a demand of about 100,000 tonnes per month. © tfinforma.com.

Singapore and US sign 'dirty bomb' monitoring deal
SINGAPORE has signed an agreement with the United States that will see it in Southeast Asia to deploy equipment to detect “dirty bombs” being trafficked through its port. The US and Singapore governments signed a declaration of principles that will lead to what they described as “state of the art equipment” being deployed at the Port of Singapore to detect hidden nuclear and radioactive materials in shipments. Since 9/11 one of the biggest fears has been that container shipping could be used either as the delivery vehicle for a dirty bomb by terrorists or as a way to smuggle radioactive material to make such a bomb. "The United States and Singapore both recognize the need to remain vigilant against the threat posed by the trafficking of nuclear and other radioactive materials,” said US Ambassador to Singapore Franklin Lavin. No details were given of the type of detection equipment that will be deployed at the port. Singapore is home to the world’s second largest container port and has taken the threat of maritime terrorism extremely seriously. “Singapore’s participation in the initiative demonstrates our commitment in safeguarding maritime security and the global trading system. Being an international maritime hub, Singapore views the enhancement of homeland and container security as an important response to the threats posed by terrorism,” said Lock Wai Han, Singapore’s Immigration & Checkpoints Authority Commissioner. The U.S.-Singapore agreement falls under the Department of Energy’s National Nuclear Security Administration Megaports Initiative and the Republic will be the first country in Southeast Asia to use the detection system in cooperation with the US. © 2005 T&F Informa UK Limited.

Singapore takes maritime security steps by Eric Watkins
Los Angeles - Singapore has taken measures to protect key oil and chemical port facilities from terrorist attack following several recent attacks on tankers in and near the Malacca Straits. The Maritime Port Authority of Singapore said vessels not having prior approval from the Port Master would be prohibited from entering waters surrounding specific complexes. Vessels must report by VHF radio and request permission to enter Jurong Island petrochemical complex, Pulau Busing and Pulau Bukom, Pulau Sebarok and the Shell single-point mooring buoy, and Sembawang Wharves and approaches. "All other harbor craft providing services, including the supply of stores' provisions and those connected with the changing of crew, are to seek written approval of the Port Master," MPA said. Agents for harbor craft must apply by fax to MPA's Maritime Security Department at least 2 hr before the vessel departs from the pier. Noncompliance can result in a $3,000 fine. According to MPA, more than 10,000 oil tankers and 700 chemical tankers call at Singapore each year, with some 1,000 ships in port at any given time. "With the substantial amount of oil and chemicals being shipped in and out of the island, safeguarding our waters and port terminals against terrorist threats remains a top priority, MPA said. About 80% of oil tankers headed from the Middle East to Japan and China pass through the Malacca Straits (OGJ, June 23, 2003, p. 20). According to the International Maritime Bureau, 37 pirate attacks took place in the straits in 2004. On Mar. 20, Singapore called for a joint front of all Malacca Strait littoral states to secure the vital waterway. "Indonesia, Malaysia, and Singapore as littoral states have a primary role to play, but no single state has the resources to meet the rising challenges of maritime security," the Foreign Affairs Ministry said. © 2005: PennWell Corporation, Tulsa, OK.

Stepping up safety in the Malacca Strait by Barry Desker
There has been, of late, increasing concern over the safety of navigation in the Malacca Strait. This follows al-Qaeda attacks on the USS Cole in Aden in October 2000 and the French-owned supertanker Limburg off the coast of Aden in October 2002. Then there was the bombing of a ferry by the al-Qaeda-linked Abu Sayyaf group in waters off Manila in February 2004, the worst act of maritime terrorism in recent years, with more than 100 passengers killed. Two examples suffice to highlight the significance of the Malacca Strait and Singapore to international shipping: First, oil flows through the strait are three times greater than through the Suez Canal/Sumed pipeline and 15 times greater than through the Panama Canal. Second, two-thirds of the tonnage passing through the strait consists of crude oil from the Persian Gulf bound for Japan, South Korea and, increasingly, China. More than half of the world's shipping tonnage passes through the strait. The International Maritime Organization (IMO) estimates that, if for some reason the strait were closed, all "excess shipping capacity would be absorbed with the effects being strongest for crude oil shipments and dry bulk cargoes such as coal . . . [which] could be expected to immediately raise freight rates worldwide." The IMO has noted the number of violent attacks on shipping in the strait since mid-May 2004. A tug, a barge, an offshore support vessel and two cargo ships have been attacked in broad daylight using automatic weapons and grenades. There have been the boarding of vessels, the tying up of crew and, in March 2003, the piloting of the Dewi Madrin, a small chemical tanker, for some distance through the strait. Such incidents have raised the possibility of terrorist attacks on ocean-going vessels such as oil and chemical tankers traversing the strait. It is also widely believed that the Acehnese independence movement, Gerakan Aceh Merdeka (GAM), has been orchestrating acts of piracy in the northern stretch of the Malacca Strait, particularly in the past year. Significantly, these attacks have declined significantly since the devastating tsunami of Dec. 26, which destroyed coastal communities in northern Aceh. Today there is growing concern that such acts of piracy may be linked to regional and global organizations such as al-Qaeda, Jemaah Islamiyah and GAM. From the vantage point of the shipping community, how does the crew of a vessel transiting the strait differentiate an act of boarding a vessel to stage a robbery at sea from that of boarding a vessel with the intention to hijack and use it as a floating bomb? The 9/11 terrorist attacks changed the way the civil-aviation community handles hijacking incidents because the intention of the hijackers was to kill as many as possible in suicide attacks. In the past, the intention was to get as much publicity and as much ransom as possible with the minimum loss of life. Similarly, the maritime community needs to pay greater attention to the risk of a "low-probability, high-impact scenarios" such as the hijacking of a tanker or a liquid natural gas carrier for use as a human-guided missile, or an attack on a commercial or naval vessel at narrow points in the strait to disrupt traffic flows within the waterway. The idea is not so far-fetched. Jemaah Islamiyah operatives arrested in Singapore in late 2001 had undertaken operational surveillance and considered the possibility of an attack on U.S. naval vessels in Singapore waters off the Strait of Singapore. At its narrowest point, between Raffles Lighthouse and Batu Berhenti, the strait is 1.2 nautical miles wide, creating a natural bottleneck if there were a collision or grounding, aside from the probable pollution of the maritime environment. The littoral states are cooperating to facilitate the unimpeded passage of international seaborne trade. Trilateral coordinated patrols among the navies of Indonesia, Malaysia and Singapore have been implemented and are targeted against sea piracy and maritime terrorism. But more needs to be done. The changed strategic environment in the Malacca and Singapore straits is of particular interest to (1) the littoral states -- Indonesia, Malaysia, and Singapore -- because of the threat of pollution and the possible risk of attacks on onshore facilities; and (2) the user states, especially Japan, China and South Korea, which are dependent on the Malacca Strait for the smooth and efficient transit of cargo, especially energy supplies. Other user states are the major maritime powers (such as the United States) that are concerned about the possible threat to their naval vessels traversing the straits. Consequently, the status of the Malacca Strait as a waterway used for international shipping requires an inclusive approach to its future management. Just as the littoral states have valid concerns about the possible costs arising from pollution in the event of a collision or grounding in the strait, user states are concerned about the provision of appropriate facilities that could reduce the risk of such accidents as well as prevent possible acts of piracy or terrorism. The 1982 United Nations Law of the Sea Convention (UNCLOS) recognized that user states had an interest in unimpeded passage through and over straits used for international shipping. It limited the right of the littoral states to regulate the passage of ships traversing the strait but recognized the jurisdiction of the littoral states over illegal activities taking place within their territorial waters. Article 43 of UNCLOS provided for burden-sharing agreements between the littoral states and user states "in the establishment and maintenance in a strait of necessary navigational and safety aids and other improvements in aid of international navigation; and for the prevention, reduction and control of pollution from ships." We should, therefore, view the IMO-sponsored meeting in Jakarta this September as the beginning of a process intended to address issues of navigational safety, environmental protection and maritime security in the Malacca Strait. The international shipping community is confronted with growing challenges as a result of the exponential increase in shipping through the Malacca Strait as well as the new threat of catastrophic terrorism after 9/11. There is a need for a new architecture facilitating cooperative arrangements involving the littoral states and the user states. One approach could be the institutionalization of the IMO-sponsored meeting on the straits of Malacca and Singapore involving all interested parties. It could go beyond the modest objectives envisaged in the original proposal to consider ways and means of implementing Article 43 of UNCLOS. Such an inclusive process will strengthen the commitment of user states to meet the costs of upgrading the capabilities of the littoral states. It will also encourage the user states to ensure the provision of safety and navigational aids and the establishment of state-of-the-art electronic information systems. Over the longer term, the formation of a regional coordinating center could be envisaged. The center could help coordinate responses by naval, coast guard and marine-police forces operating in or traversing through the straits in the event of acts of piracy or maritime terrorism. [Barry Desker is director of the Institute of Defense and Strategic Studies, Nanyang Technological University, Singapore.] © The Japan Times Ltd.

Tanjung Pelepas in bunkering deal
MALAYSIAN company KIC Oil & Gas has signed an agreement with European commodities trader Trafigura Beheer for storage and blending of ship fuel. KIC has a floating storage facility at the port of Tanjung Pelepas in southern Johor province, which has set itself the ambitious aim of competing with neighbouring Singapore for the status of an International Maritime Centre. Plans include developing extensive bunkering facilities. Currently most of Malaysian supplies are sourced from Singapore, the world’s largest bunkering port. Malaysian transport minister Chan Kong Choy, who was present at the signing ceremony, revealed plans for a $400M petroleum hub, which is likely to be developed this year. Negotiations with KIC are on, he said. “We will have no problem to meet demand for ship fuel, which will be offered at more competitive prices,” Choy said. © Lloyd's Register - Fairplay

Three tugboat crewmen freed without ransom paid by Bernard See and Anthony Tan
Penang - The three tugboat crewmen kidnapped by pirates in the Straits of Malacca last week have been released without any ransom paid. Thai marine police found them in a drifting fishing boat, about 20 nautical miles north of Pulau Adang near Pulau Langkawi at 5.30pm on Sunday. Captain Nododuo Indue, 54, and chief engineer Shunji Kuroda, 51, both Japanese, and third engineer Sadang Paliawan, 41, a Filipino, of the tugboat Idaten were unhurt but looked exhausted when they arrived at Hotel Equatorial here at 7pm yesterday. Capt Indue said they were set adrift in the sea on Friday morning. “We were treated relatively well after our abduction on March 14. We don't know where we were on shore but they made us change boats a total of seven times to avoid being detected by maritime authorities. “Five pirates armed with machineguns accompanied us and we moved camp daily. Paliawan understood what they said and acted as our translator. “We were made to walk barefooted through the jungles. Our daily meals were made up of rice and fish,” he told a press conference here. Kuroda said their captors acted and looked more like soldiers than pirates, adding that all he wanted to do now was to return to Japan to be with his family. State police chief Deputy Comm Datuk Christopher Wan said the men were released without any demand for ransom. “Patrols along the Straits of Malacca, which is one of the world’s busiest shipping lanes, will be beefed up to prevent such incidents,” he said. The three crewmen were earlier brought into Malaysia from Thailand through the Bukit Kayu Hitam border checkpoint at 4.30pm. Several Japanese officials accompanied them. The tugboat was towing a barge, Kurushio 1, when pirates in three fishing boats who were armed with machineguns and rocket launchers, boarded it and kidnapped the three crewmen. The attack happened 45.5 nautical miles west off Tanjung Hantu, Lumut. The marine police base in Gelugor was informed about the attack after the International Maritime Bureau (IMB) received a distress call at 7.35pm that night. © 1995-2005 Star Publications (Malaysia) Bhd.

Trawlers operating illegally will be severely punished by Chong Chee Seong
MUAR - There will be stiffer penalties for owner of trawlers that operate illegally in the Straits of Malacca. Agriculture and Agro-based Industries Minister Tan Sri Muhyiddin Yassin has proposed that the compound should be "nothing less" than RM5,000 to RMl0,000 for each offence. He said the current RM500 compound for the offence was inadequate, adding this would not deter illegal trawler owners. Muhyiddin said Fisheries Department directors had been empowered to impose deterrent compounds under the Fisheries Act,l985, as a way to check the widespread activities of illegal trawling operations in Johor's west coast. "The Fisheries departments have adequate laws to check the illegal operations and they should not hesitate in using them," he told reporters after a dialogue session with fishermen in the Muar parliamentary constituency at Parit Jawa here today. Muhyiddin said he would meet the Fisheries and Marine departments soon to formulate new strategies to intensify checks on the illegal trawlers. On the vessel monitoring system, which uses satellite to track the movement of ships and boats, Muhyiddin said the Government was expected to complete it by 2008. © NST Online.

Tugboat's crew members reported safe
Tokyo - The three crew members of the Japanese tugboat Idaten who were abducted by pirates in the Malacca Strait last week were found safe in Satun Province, southern Thailand, the Japanese Foreign Ministry announced Monday. The ship's Japanese captain Nobuo Inoue, 56; chief engineer Shunji Kuroda, 50; and Filipino third engineer Edgardo Sadang, 41, were taken into protective custody by Thai police in Satun after they were found, Foreign Ministry said. The abductees later met Kanji Kondo, president of Kondo Kaiji Co., which owns the Idaten, and Japanese Foreign Ministry officials at a hotel in Satun. The ministry announced Monday morning the abductees were under the Japanese government's protective custody. The ministry said they were in relatively good health. Inoue, speaking to The Yomiuri Shimbun by phone from a hotel, that they had been moved to several places by ship during their captivity. "After we were moved from the Idaten to the pirates' ship, they took us to an island, which seemed to be one of their hide-outs, surrounded by a jungle. There was a shrimp breeding farm," he said. "We were then moved to several other places. I think we got on board, say, seven times, and they took us around on the sea. We were always moved at night," Inoue added. Inoue said he saw several people he thought were also hostages at the hide-outs, but none who spoke English and one who seemed to be Indonesian. The three ate each meal with the kidnappers, who never threatened them or became violent, he said. Before they were released, they were moved to a ship that was operated by another group of people. When they were at sea, the group found a Thai ship and asked its crew members to take the three to Malaysia, Inoue said. They were later taken into custody by the Thai marine police and then taken to the Satun hotel. According to Kondo Kaiji Co., Inoue called Kondo after they were released and told him all three were fine. After receiving the call, Kondo left his hotel in Malaysia and drove to meet the three at the Satun hotel. At the hotel, the three briefly spoke to the media. "Don't worry. We're fine," Inoue told reporters. "We're back and in good health. Please don't worry," Kuroda said. After receiving permission from the Thai police, they left Satun for Penang with Kondo and Foreign Ministry officials on Monday afternoon. A Foreign Ministry official said the case did not seem to be politically motivated. "Compared with similar cases, the latest one was solved relatively quickly," a senior ministry official said. "We don't think there was any political motivation behind the abduction, judging from its development." As for whether there had been any ransom demands from the pirates, the official said; "I can't tell if or what we discussed with the criminals." © 2005, The Yomiuri Shimbun.

Thais plan a short cut to West by Connie Levett
Bangkok - A Thai proposal to carve a two-lane canal through the narrow Kra peninsula, linking the Indian and Pacific ocean sea trade routes, could potentially cut millions of dollars off the cost of doing business in East Asia. The proposed $US18 billion ($23 billion), 120 kilometre-long canal, which would join the Indian Ocean with the Gulf of Thailand, aims to slice days off the travel time of busy sea routes. With the emergence of China as this century's engine for global economic growth, South-East Asia's sea routes, carrying oil to China and its manufactured goods back to the world, will only get busier. Most of that traffic now sails through the Malacca Straits but there are concerns about routine piracy and terrorist attacks. Sinking one large ship in the right spot could close one of the world's most important shipping routes. The alternatives, the Sunda and Lombok routes, add as much as four days to the journey. At present up to 1400 ships pass through the three routes each day, with 600 using the Straits of Malacca. The Thai canal could relieve that pressure, rerouting more than 200 ships a day. It would allow ships to move between Europe, the Middle East, India and China without passing through the Straits of Malacca and Singapore's container port hub, which handles between 15 million to 20 million containers a year. Kamnuan Chalopathump, chairman of the Kra Canal project Senate committee, said that at first Singapore was unhappy with the Thai canal proposal. "The first time [we discussed it] they were really worried because if this canal happens, Singapore will lose their jobs and ships will no longer pass by and that would affect Singapore's economy," he said, through an interpreter. However, one shipping industry observer based in Bangkok said it might not be such a problem for Singapore. "For container ships, which travel quite fast, [the canal shortcut] may not be so attractive but for big oil tankers it could save time." It costs up to $US50,000 a day to operate a container ship, significantly more for an oil tanker. Senator Kamnuan said that Malaysia and Indonesia had expressed interest in investing in the project. China had also indicated support during unofficial talks in December 2001. Although the idea for a Thai canal is hundreds of years old, this is a new proposal. The Thai Senate is to vote on the just completed four-year "pre-feasibility study" next month. The canal concept dates back to the Thai King Narai in 1677. In the 1860s Britain won Thai approval to excavate a canal but never followed through. At that time the royal court dreamed of a canal linking the two sides of the Thai peninsula for naval military efficiency. Now the interest is economic, rather than military, advantage. Senator Kamnuan said he was confident the Senate would approve the study, after which it would go to the Prime Minister and cabinet.. If cabinet approved, it would take another two years of feasibility planning then at least 10 years to build the canal. Much will depend on how the powerful Prime Minister, Thaksin Shinawatra, views the project. He supported the initial study in 2001 but in early 2003 said there would be no canal construction. After that the Senate sanctioned further study of the proposal. "Does he agree or disagree? I don't know," Senator Kamnuan said. "But [Thaksin] let this committee consider it. He appointed the Senate to study pre-feasibility and the national commission to study full feasibility." As well as a new world shipping route, the Thai canal proposal plans to create a special economic zone around the canal with an oil refinery on the Andaman coast, deep sea ports at both ends, shipyards and dockyards and new cities with related industries. A draft special economic zone bill being considered would allow the Government to bypass many environmental, city planning and tax laws. © 2005. The Sydney Morning Herald.