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DPM: Malaysia may review its maritime laws
Kuala Lumpur - Malaysia may review its existing maritime laws and look into the need to introduce new laws to meet the requirements of a maritime nation, said Deputy Prime Minister Datuk Seri Najib Tun Razak. He said it was the international conventions, custom and practice that governed many of the maritime rights and Malaysia needed to understand how to apply such rights and responsibilities to meet expectations. “To meet expectations is to know, understand, and where compatible with national circumstances, to apply such international yardsticks of rights and responsibilities, through our laws, in our courts and our alternative dispute resolution centres,” said Najib in his speech read out by Transport Minister Datuk Seri Chan Kong Choy at the National Maritime Conference here on Thursday. Najib said the establishment of the Admiralty Court in 2005 showed that maritime interests were properly looked after and it ensured speed, uniformity and quality maritime decisions. “Underlying the capacity for great maritime success is the soundness in foundation of the maritime laws that govern Malaysia’s maritime dealings. “The confidence to use Malaysian ships, to deal with Malaysian traders, and to ply Malaysian waters are premised on the fairness and relevance of Malaysia maritime laws, in ensuring that anticipated rights are recognised and upheld rigorously through an effective legal system,” he said. He said the maritime sector was fundamental to the continued success of Malaysia as 95% of the country’s total trade found its entry and exit by sea while sea freight was projected to more than triple to about 751 million tonnes by 2020. “The efficiency of the entire maritime network is heavily relied upon to support Malaysia’s manufacturers and traders,” he said. Najib also said the Government has allocated RM95mil to achieve its target of making Malaysia a key regional trading nation in the future, and to achieve this target it was vital to have cooperation from the maritime industry to provide effective, world class services, using world class technology. © 1995-2005 Star Publications (Malaysia) Bhd.
Malaysia to adopt more maritime international conventions
Kuala Lumpur - The Attorney Generals' Chambers (AG) will study the possibility of Malaysia adopting more conventions and agreements under the International Maritime Organisation (IMO) to facilitate international trade and shipping, said Tan Sri Abdul Gani Patail Thursday. He said there was a serious need to consider accepting other international conventions of IMO, including the need to improve the safety standard of ships and the marine environment. "Because of their widespread implementation and the fact that they have internationally come into force, Malaysian ships are already subjected to the requirements of these conventions irrespective of the fact that Malaysia is not a party. "In view of the prevailing 'no favourable treatment', ships of non party shall have to comply with the requirements of a convention when they enter a port of a state party to the convention," he said at the National Maritime Conference 2007 here Thursday. He said currently there were nearly 50 IMO international conventions and agreements relating to the law of the sea, maritime safety and marine pollution and private maritime legal matters. He added the AGs' Chambers invited the creation of the industry and government agencies to enable the formulation of a more comprehensive and effective maritime policy. "The compliance and needs of Malaysia and the maritime industry is constantly developing at a rapid rate. Thus, it is my view that there should be a clear interaction and consultations between the government and industry players in order to achieve the objectives of the government and improve the industry," added. © 2007 BERNAMA.
Malaysia to set up ports commission
Kuala Lumpur- The Government is setting up the Malaysia Ports Commission to bring all federal port authorities under one umbrella. This will also pave the way for funds from all local ports to be channelled into strategic development projects, according to Transport Minister Datuk Seri Chan Kong Choy. At present, this is not possible as the port authorities act independently. Chan said the process of forming the commission was at the final stage. “We would have the ports commission,” he told reporters after representing Deputy Prime Minister Datuk Seri Najib Tun Razak at officiating the National Maritime Conference in Kuala Lumpur today. Najib is currently on a week-long official visit to Japan and South Korea. Once formed, several port authorities such as Klang Port Authority and others in Johor, Penang, Sabah and Pahang will come under the commission. They are now under the direct purview of the Transport Ministry. © The New Straits Times Press (Malaysia) Berhad.
Malaysia upbeat on growth of local ports by Presenna Nambiar
The Transport Ministry is optimistic on the growth of Malaysian ports this year, having seen average growth of 15-16 per cent for the first two months of the year. Transport Minister Datuk Seri Chan Kong Choy said some ports reported even stronger growth so far this year. Bintulu Port, for example, recorded a growth of 48 per cent in boxes in January, while Port of Tanjung Pelepas grew by 35 per cent in the first month. He said the Government has set a growth forecast for ports in Malaysia this year, but he did not want to reveal the figure. Last year, Malaysian ports grew 12.9 per cent to register about 13.6 million twenty-foot equivalent units (TEUs), Chan told reporters after opening the three-day National Maritime Conference in Kuala Lumpur yesterday. He represented Deputy Prime Minister Datuk Seri Najib Razak, who is currently overseas. On Port Klang's global container port ranking at number 15, Chan said Malaysia has done well by being in the top 20 ports in the world, although competition is stiff from other growth centres like China. "When we are talking about 10 or 15 per cent growth, they (China) are talking about 40 per cent growth, so we have to accept the reality that the emergence of China is very significant," he said. Meanwhile, Najib in his speech said Malaysian ports have played a significant role in helping the country achieve record trade over the years. "Ninety five per cent of the country's total trade finds its entry and exit by sea. Sea freight is projected to more than triple to about 751 million tonnes by 2020. "It therefore goes without saying that the efficiency of the entire maritime network is heavily relied upon to support Malaysia's manufacturers and traders," he said. © The New Straits Times Press (Malaysia) Berhad.
Najib: Have nerve centre for relief efforts by Wan Hamidi Hamid
Tokyo - An East Asian co-ordination centre made up of civilian and military personnel that could deploy humanitarian relief swiftly in the event of a major disaster is urgently needed, Deputy Prime Minister Datuk Seri Najib Razak said. "If we’re able to set up anti-terrorist centres all over, then I’m sure we could create a regional humanitarian relief co-ordinating centre. "If we can put our minds together and create this centre, then this could be a positive manifestation of building a security environment," he said. Speaking at the Japan Institute of International Affairs forum here yesterday, Najib said East Asian countries could be organised and co-ordinated for a much more effective response than the aid provided during the 2004 tsunami and the recent Yogyakarta calamities. He said the military was proven to be the only viable organisation to handle natural disasters as its personnel could be sent within 24 hours to any affected area. Najib floated the idea about a year ago but countries in the region seemed to give the proposal lukewarm response. On Tuesday, an earthquake in west Sumatra, whose tremors were felt across the Straits of Malacca, claimed at least 70 lives. Yesterday, it was reported that the United Nations offered help, with an aid team on standby while victims claimed that they had yet to receive any help. The deputy prime minister reiterated his proposed idea as part of his views on a comprehensive security environment that would include a framework of workable plans of action. He said there must be a change of mindset based on a more altruistic perspective rather than power politics alone. "There is perhaps a need to have a more robust dialogue on Northeast Asia and for discussions to move forward on issues of security co-operation," he said. Najib also proposed that the region increase economic, financial, trade and investment dealings, saying that economic inter-dependency had a way of moderating tensions, smoothening the rough edges of distrust and making states see beyond self-interest. "We need to enhance military diplomacy which is fast becoming a recognised form of diplomatic activity as it complements and even provides direction towards resolving political hiccups. "Contrary to a skewed public perception, the military is probably the most mindful and cautious of any institution about going to war," he added. He said Japan’s military history, particularly its role during the Second World War, was never an obstacle for Malaysia in working together towards world peace. Najib said Malaysia did not have any historical baggage with Japan and accepted the country as a responsible member of the international community. "History is the past. We welcome the role of Japan, including its military forces, in peacekeeping operations as well as humanitarian relief efforts." He added that Japan had no territorial ambitions and Malaysia considered the country "a friend and a true partner". Najib is on the last leg of his official visit to Japan. He leaves for South Korea later today. © 2006 NST Online.
Petronas, Saibu sign new LNG deal
Kuala Lumpur - State-owned oil and gas giant Petronas through its subsidiary Malaysia LNG has concluded a long-term LNG supply contract with Japan’s Saibu Gas. Under the terms agreed to yesterday, Malaysia LNG will supply up to 390,000 tonnes of LNG per annum for 15 years beginning 2013. The cargo will be transported from Bintulu, Sarawak in eastern Malaysia to the Japanese utility’s receiving terminals in Nagasaki and Hakata. Two LNG ships of 18,000 m³ each will be utilised. Both Aman Hakata and Aman Bintulu are owned and operated by Asia LNG Transport Sdn Bhd, a joint-venture between MISC, which is the shipping subsidiary of Petronas, and NYK Line. Malaysia LNG has been exporting about 357,000 tonnes of LNG per annum to Saibu since 1990 under a 20-year contract. The Petronas Bintulu LNG complex has a total capacity of 23M tonnes per annum. Petronas has agreements in place to export 3M tonnes per annum to Shanghai LNG and an additional 2M tonnes per annum to Japanese companies using MISC ships. © Lloyd's Register - Fairplay Limited 1999 - 2006.
Singapore navy vessel on five-day visit to Sabah
Kota Kinabalu - The Singapore navy vessel "RSS Endeavour" (a multi-purpose ship), which was involved in several humanitarian relief missions in Indonesia and Thailand during the tsunami disaster of 2004, will make a five-day visit to Kota Kinabalu from today. Singapore navy chief Admiral Tan Kai Hoe said the visit was to further strengthen the present strong relationship between the republic's navy and its Malaysian counterpart and also to foster closer ties among the young officers of both navies. "I think, it is a good thing that the high level of cooperation that exists between the senior officers of both navies is also extended to the junior ones," Tan told a press conference aboard the Royal Malaysian Navy's KD Kedah at the Sepanggar naval base here yesterday. The RSS Endeavour, which has a crew-strength of 150, will be anchored off Sabah Port here for five days to enable the public to visit it before returning to Singapore. Meanwhile, RMN's Region 2 (Sabah and Sarawak) commander Rear Admiral Datuk Ahmad Kamarulzaman Ahmad Badaruddin in the same press conference said both navies had a long history of cooperation and a lot of things in common. He added that the two navies were among the stakeholders responsible for keeping the Straits of Malacca safe for shipping and from terrorist and pirate threats. © 2007 Brunei Press Sdn Bhd.
Sinking modern pirates by Prashanth Parameswaran
As a United Nations aid vessel was hijacked in Somali waters yesterday and the sequel to Pirates of the Caribbean took the Oscar for best visual effects, all eyes were on the grave situation of piracy in the Indian Ocean that has threatened to once again reach threatening levels. Given the considerable security risks, governments in the area, particularly Bangladesh and Somalia, must construct a viable plan to combat this threat. The pirate of today is a far cry from the stereotypical bandana-wearing, swashbuckling Jack Sparrow faring off to sea in a phantom ship searching for the world's treasures. According to a CNN report, most pirates, especially those in the Indian Ocean, are well trained fighters who don military uniforms, ride speedboats equipped with state-of-the-art GPS systems and wield weapons ranging from anti-tank rocket launchers to various types of grenades and automatic weapons. Their objectives, however, remain equally crooked: targeting passenger, cargo and fishing vessels for ransom or loot with which buy weapons. The aid vessel was hijacked yesterday without its cargo since it had already made its delivery to Somalia, leading experts to believe that the motive could be to hold the 12 crew members for ransom. It was the third case of piracy involving a U.N. ship in Somali waters in just over a year. The causes for this worrying phenomenon vary by nation, but Somalia and Bangladesh have long been blacklisted as the world's two biggest piracy hotspots by the International Maritime Bureau (IMB), the body that deals with naval issues ranging from security to commerce. In Somalia, a BBC report has suggested that the Islamist government that held power there last year was vigilant about cracking down on piracy. However, with the formation of a new, recognized central government, it is not clear that the proper control has been asserted over these pirates. If this continues, the IMB and various other agencies have warned that piracy attacks could reach 2005 levels of about 47 attacks annually. The previous government in Somalia has hired a private maritime security agency from the United States to police its waters, but operations have yet to begin. Bangladesh's coastal region houses Chittagong, the world's most dangerous port due to rampant piracy. The region is also impoverished and lacks the resources to combat the security threat. Last year the IMB reported an alarmingly high 33 incidents of piracy in Bangladesh. In response, A.M. Shahadat Hossain, Chairman of the Chittagong Port Authority, dismissed the report as "bogus" according to Opinion Asia, illustrating that Bangladesh has not even acknowledged the full extent of the problem Unlike Somalia, where attacks occur in open waters, 75 percent of Bangladeshi piracy incidents are carried out in port areas, showing an arguably non-existent level of security. Although the IMB has commended Bangladesh on its measures so far against piracy, such as joint naval-coastguard operations, there is clearly much more that needs to be done. In order to step up their efforts against sea piracy, Bangladesh and Somalia should both look to the Southeast Asian model of cooperation. The Malacca Straits, the world's most important waterway that carries half the world's oil and a third of its trade, has gone from being the world's most dangerous waterway to disappearing from the radar of risky waters in just two years. The IMB credits the turnaround to joint security improvements made by littoral states bordering the states and other foreign governments. Last Friday, Thailand, Malaysia and Japan held joint marine enforcement exercises off the coast of Malaysia. Maritime experts have long stressed the role of joint efforts in increasing professionalism, coordinating efforts and strengthening ties. Bangladesh has no agreements with its maritime neighbors India and Myanmar on anti-piracy controls, according to Opinion Asia. The lack of bilateral agreements is perhaps the most acute obstacle preventing the eradication of this vicious crime. Bangladesh has also yet to ratify several multilateral agreements regarding maritime navigation. Experts have suggested that Bangladeshi security agencies focus their efforts on improving port physical security while also honing their skills through cooperation with India, who has significant expertise in dealing with sea piracy. Somalia would also do well to strengthen its hold on militants and sign bilateral agreements with other African nations rather than privatizing regional security concerns. Among potential allies is Nigeria, which has also experienced a ruthless spate of kidnappings of foreign workers in oil companies. The international community must address the issue of sea piracy while being fully cognizant of the potential nexus between piracy and the vice of international terrorism. For example, The South Asia Analysis Group has noted that piracy is an integral part of the activities of the Tamil Tigers in Sri Lanka. There is no reason why Al Qaeda might shift its focus from spectacular airborne attacks to sea hijackings. The bombing of the USS Cole, after all, is still etched in the memory of US defense forces. © 1995-2006 The Cavalier Daily.
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10 divers to survey Portuguese warship
Malacca - Ten divers and three underwater photographers are in the team conducting surveys to recover artefacts from a 16th-century Portuguese warship lying four nautical miles off the mouth of the Malacca River, said Malacca Museum Corporation (Perzim) director Khamis Abbas. He said the team members included those from Perzim, the navy, Customs, Archaeological, Heritage and National Oceanography departments, and Universiti Malaysia Terengganu. He said that the divers were at risk because of the strong underwater currents, the depth of more than 40m and poor visibility. “The divers can only be down there for 10 minutes each time. “We are interested in looking for artefacts, but the safety of the team members comes first,” said Khamis. Well-known Australian maritime archaeologist Dr Michael Flecker, who has carried out more than 100 explorations in countries around the region, discovered the wreck during a survey along the Straits of Malacca in 2005. © 1995-2005 Star Publications (Malaysia) Bhd.
Experts propose upkeep for Malacca Straits
Kuala Lumpur - Every ship transiting the Strait of Malacca should pay 1 U.S. cent per dead weight tonnage into a fund to help maintain the world's most important maritime trade route, regional maritime experts proposed Wednesday. Delegates at a two-day conference on the upkeep of the shipping lane called for a Malacca Straits Fund to be established, into which shipping companies and other users will pay voluntary contributions, to ensure safe navigation and environmental protection of the waterway. "With the expansion of world trade, the traffic volume is estimated to increase from 4 billion DWT in 2004 to 6.4 billion DWT in 2020 and it will increase the risk of accidents and marine pollution,'' according to a report issued Wednesday by the academics and other maritime experts who organized the conference. "If every transiting ship contributed only 1 U.S. cent per DWT to the Malacca Straits Fund, it will generate US$40 million (euro33 million) annually to the fund.'' The organizers are the Maritime Institute of Malaysia (MIMA), Indonesia's Center for Southeast Asian Studies, S. Rajaratnam School of International Studies in Singapore and Japan's Nippon Foundation - a nonprofit group involved in maritime development. The report said the burden-sharing measure must not impinge on the sovereignty of the littoral states - Singapore, Indonesia and Malaysia - which straddle the waterway. State-backed agency MIMA will submit the proposal to governments of the three nations and hopes to present it at a major international maritime conference in Singapore at the year-end, it added. On Tuesday, Nippon Foundation chairman Yohei Sasakawa said an estimated US$300 million (euro250 million) was required over the next decade to enhance safety on the strait and the burden should be shared equitably between the littoral and user states. Previous proposals to charge users of the Malacca Strait have been met with caution due to concerns from the littoral states that contributors would demand a say on how the waterway is managed, officials said. Indonesia and Malaysia have rejected the possibility of a foreign military presence in the Malacca Strait despite fears that terrorists could link up with pirates to blow up an oil tanker or use it as a floating bomb. The three littoral nations launched coordinated maritime patrols in the strait in mid-2004 and air patrols in 2005 to boost security. Pirate attacks in the Malacca Strait, which carries half the world's oil and more than a third of its commerce, have been on the decline since July 2005, with 11 cases last year. © 1995-2005 Star Publications (Malaysia) Bhd.
Littoral states propose burden-sharing fund for Malacca Strait
Kuala Lumpur - Shipping authorities from Malaysia, Indonesia, Singapore and Japan on Wednesday announced a proposal to set up a common fund to assist in the maintenance and security of the Malacca Strait. Top shipping and marine officials from the straits' littoral states - Malaysia, Indonesia and Singapore - as well as Japan, which is a frequent user, met in Malaysia's capital Kuala Lumpur for a two-day conference aimed at establishing ways to better manage the waterway. The 'Malacca Strait Fund' would consist of financial support by countries plying the busy waterways and serve as a means for user states to share the responsibility of maintaining the strait, said a consensus document released at the end of the conference. Conference delegates said the fund would be disbursed for maintenance efforts such as promoting safety as well as environmental protection of the Straits of Malacca. 'Shipping industries and other users as a major potential contributor towards pollution and maritime accidents should contribute voluntarily to the above fund,' the statement said. The statement also proposed that each transiting ship on the strait contribute 1 cent per Dead Weight tonnage of their cargo towards the fund. Officials said the proposal of setting up the fund would be handed over to the governments of the littoral states for approval, adding that unofficial reactions so far have been positive. Malaysian Deputy Prime Minister Najib Razak said Tuesday that littoral states were currently shouldering the main responsibility of maintaining the the straits, adding that navigational safety at the waterway 'should not be taken for granted' by the international community. However, Najib, who is also defence minister, stressed that any form of assistance from financial aid to training must not infringe on the sovereignty of the littoral states. The Straits of Malacca is one of world's busiest sea lanes with more than 65,000 vessels passing through the critical passageway last year. From 1995 to 2005, there were 44 cases of collision and 15 cases of grounding in the straits. The waterway is notorious for pirate activity, but increased cooperation between the littoral states in recent years has significantly reduced the number of attacks on seafarers, piracy watchdog the International Maritime Bureau said. © 2007 dpa - Deutsche Presse-Agentur.
Littoral States Shouldering Heavy Burden, Says Najib
Kuala Lumpur - Although the United Nations Convention on the Law of the Sea (UNCLOS) warrants user states of any strait to cooperate with the littoral states in ensuring safety of navigation and prevention of pollution, more often than not, the littoral states end up shouldering the heavy responsibility, Datuk Seri Najib Tun Razak said Tuesday. The deputy prime minister said that this was indeed the reality in the case of the Straits of Melaka and Singapore whereby the littoral states -- Malaysia, Indonesia and Singapore -- had undertaken many initiatives, often incurring substantial investments to ensure the safety and security of the waterways. "Among others, these include maritime security measures, such as coordinated patrols and the "Eyes in the Sky" initiative involving the littoral states' navies and air force. "There may be a possibility in the future when the cost of maintaining the straits may reach a point where it may not be possible for the littoral states to finance the maintenance of current projects and fund future ones," he said when opening the Symposium on the Enhancement of Safety of Navigation and the Environment Protection of the Straits of Melaka and Singapore here. Najib's speech was delivered by Transport Minister Datuk Seri Chan Kong Choy. Najib, who is also Defence Minister, said that at the same time, there were greater expectations from the user states for higher standards of navigational safety in the Melaka Straits, was one of the busiest sea lanes in the world with over 65,000 vessels passing through this critical passageway last year alone. "This being the case, there is thus a compelling reason for putting into practice what was envisaged under the UNCLOS, namely calling for cooperation of all parties concerned for the safe navigation in the straits," he added. He said Malaysia hoped that all major user states could demonstrate greater cooperation and assistance towards capacity building of the littoral states in safeguarding the straits in terms of technical assistance, training and exchange of information. User states could also demonstrate their commitment by contributing regularly towards the management of the Straits of Melaka as such funds were essential in undertaking various efforts that could complement efforts of the littoral states. For this purpose, user states could use the Straits of Melaka Revolving Fund, which was set up to tackle problems related to oil spillage, he said. "Rather than setting up a new fund, user states may wish to consider the possibility of contributing towards this fund. Should the user states find it plausible, there may be a need to widen the scope of the Straits of Melaka Revolving Fund to go beyond oil spillage," he added. He said that at the International Maritime Organisation (IMO) meeting in Kuala Lumpur last year, it was agreed that user states of the straits would contribute voluntarily towards projects identified by the littoral states, which involved substantial expenditure. Malaysia, however, had some reservations over this voluntary arrangement as it might not achieve the desired results because user states could be more inclined to undertake less expensive projects, leaving out costly ones, he said. "Malaysia is therefore of the view that the user states should revisit the proposal at the next IMO meeting to ensure equitable participation among the user states through identified projects," Najib added. He also called for greater participation of shipowners to share the heavy burden of safeguarding the Melaka Straits. He said Malaysia was fully supportive of the idea of the Nippon Foundation of Japan, which had proposed the setting up of a special fund to which Japanese shipping companies would contribute voluntarily to finance navigational aids and removal of shipwrecks in the Straits of Melaka. "Malaysia fully supports such a proposal as navigational safety in the straits should not be taken for granted by the international community. It should in fact be the collective responsibility of the users as well as the littoral states. "Malaysia welcomes any initiatives through the concept of burden sharing that could enhance the navigational safety of the straits as long as such endeavours do not infringe the principles of sovereignty," Najib said. Meanwhile, at a news conference later, Chan said Malaysia was of the opinion that the littoral states could safeguard the two straits and that there was no need for foreign military intervention by user countries. "There is no real threat of a terrorist attack in the straits... the three littoral states can and have managed it well so far," he said. He said that although this was the present scenario, the littoral states would remain vigilant without any complacency in safeguarding the straits, especially the Straits of Melaka. © 2007 BERNAMA.
Lumut Maritime to distribute Sealegs amphibious boats by Kamarul Yunus
Sealegs International Ltd, a unit of New Zealand-listed Sealegs Corp, has appointed Lumut Maritime Terminal Sdn Bhd (LMT) as the distributor for its patented amphibious boats in Malaysia. Sealegs International sales manager Greg Ewen said the contract is for 12 months initially. It could be extended if certain targets are met. He declined to disclose the contract's value. He said the Malaysian market represents a significant opportunity for the country, especially given its access to lakes, rivers and coastal environments where a Sealegs boat is useful for recreational or commercial use. "Some of Malaysia's coastal areas have large tidal changes and some areas are even prone to flooding. "The use of Sealegs boats in such areas reduces significantly the time and hassle it takes to launch a conventional craft, which in turn provides emergency services with an invaluable tool in their inventory to dealing with flooded areas in far more efficient manner," he told Business Times. On the reason for choosing LMT as distributor for its amphibious boats, Ewen said the Sealegs re-seller contract was awarded to the Malaysian port operator because of the company's high level of working experiences within the Malaysian marine industry. In a statement posted on its website on January 31, Sealegs International said the company has shipped its 100th amphibious boat to a customer in Australia two and a half year after delivering its first Sealegs boat to a New Zealand customer. With 80 per cent of the company's production now exported, there are Sealegs boats in use in all four corners of the globe and this is expected to increase in future. The Sealegs system works by having powerful motorised wheels which give a user variable speed of 0-10KPH (kilometre per hour) powered by an on-board 16hp (horse power) Honda driven hydraulic power-pack. Ewen said the sealegs boats will be on display for the first time in Malaysia during the coming Langkawi International Maritime and Aerospace show (Lima07). "LMT group managing director Ibrahim Ali Abdul Wahab will comment on this participation of Sealegs boats at Lima07 when closer to the time but it will be the first time Sealegs International display the boats at Lima exhibition. "However, we do attend numerous other international boat shows such as the London and Southampton shows," he said. Ewen said LMT will bring in the Sealegs RIB and D-Tube models for distribution in Malaysia but the price of these boats for the Malaysian market has yet to be determined. "LMT is in the process of pricing Sealegs boats for the Malaysian market," he said. © 2006 NST Online.
Malacca protection fund proposed
Kuala Lumpur - Ship owners should contribute to navigational safety and environmental protection measures in the Strait of Malacca, according to a consensus document released today at the end of a two-day symposium in Malaysia. Yohei Sasakawa, chairman of the Nippon Foundation, which supported the work by research institutions in Malaysia, Singapore and Indonesia, said that “if users paid just one cent per deadweight ton of shipping, $40M would be raised each year. This revenue would eliminate the excessive and unfair burden borne entirely by the littoral states.” The Nippon Foundation would be willing to set up a special Malacca Straits Fund, he said, which would be the first scheme of its kind in the world. The 1,000-km Strait of Malacca is claimed to be the busiest maritime trade route, with at least 80% of Japan’s oil passing through each year. The consensus document emphasised that the sovereignty of the littoral states over the parts of the strait “must be protected”. The recommendations are to be refined at a follow-up meeting and presented at the IMO’s September gathering in Singapore as a private sector proposal. © 2007 The Associated Press.
Malacca Strait donor says shippers should pay to pass
Kuala Lumpur - Shipping firms should pay a cent for each ton they transport through the Malacca Strait to help maintain one of the world's busiest sea lanes, a major provider of funding to the route said on Tuesday. Based on the amount of cargo that moves through the Strait each year, that would raise about $40 million annually, said Yohei Sasakawa, the head of Japanese non-governmental group The Nippon Foundation. “This is such a small amount that it would not impact freight rates but it would help alleviate the excessive burden borne by the littoral states,” Sasakawa said at a maritime forum. He said the Nippon Foundation would be willing to set up a fund for navigational safety and environmental protection in the strait if his proposal was accepted by international shipping companies. Snaking between Indonesia, Malaysia and Singapore, the Malacca Strait links Asia with the Middle East and Europe and carries about 40 percent of the world's trade, including 80 percent of Japan's and China's energy supplies. Sasakawa later told Reuters that shipping companies could even lower their insurance premiums for transiting in the Malacca Strait if their monetary contributions helped to make the sea lane safer to navigate. “Shipping companies should do this as part of their corporate and social responsibility rather than shift the burden to companies that use their ships,” he said through an interpreter. The three countries that border the sea lane individually bear the bulk of upkeep costs for the strait, including anti-piracy patrols. Malaysia has called on all countries and shipping companies that use the Strait to start contributing financially but Japan remains the main international donor. The Nippon Foundation has contributed $125.5 million in navigational equipment and training for the strait, representing about three-quarters of Japan's total contribution since the late 1960s. Japan is the only major financial contributor to the maintenance of the strait outside the three littoral states. A top Asian shipowner, meanwhile, has called for a careful study of the proposal before implementation. “Well I think the SSA (Singapore Shipping Association) and FASA (Federation of ASEAN Shipowners Association), have always maintained that we must consider very carefully the kind of precedent we will set if we are to charge for use of the waterway,” said Teo Siong Seng, president of the Singapore Shipping Association. Teo, the managing director of the Singapore-based Pacific International Lines Pte Ltd, added that comparisons between the Malacca Strait and Panama Canal were unfair. “It is different with the Panama Canal, because it is a man-made waterway, and was built for commercial reasons, it also belongs to Panama,” Teo said. © 2007 Reuters.
New Website Fights Worldwide Increase in Piracy and Crimes Against Yachtsmen
One cent per deadweight tonnage proposed to help straits fund
Kuala Lumpur - A Symposium on the Enhancement of Safety of Navigation and the Environmental Protection of the Straits of Malacca and Singapore has suggested that every transiting ship contributes one percent per deadweight tonnage to the Malacca Straits Fund. The symposium, convened by Maritime Institute of Malaysia (MIMA), Centre for South-East Asian Studies (Indonesia), S. Rajaratnam School of International Studies (Singapore) and the Nippon Foundation of Japan, agreed on this in the consensus document as one of the ways to set up the fund. "Presently, an estimated 4.0 billion deadweight tonnage of shipping transit the straits annually. If every transiting ship contributes only one percent per deadweight tonnage to the fund, it will generate US$40 million (US$1=RM3.47) annually to the fund," the document said. It added that MIMA, on behalf of the four institutes, would convey the symposium's consensus to the governments of the littoral states (Malaysia, Indonesia and Singapore). MIMA director-general, Datuk Cheah Kong Wai, said the states would also present the symposium's consensus at the 2007 Singapore Meeting, the date of which has yet to be decided. The establishment of a fund was discussed last year during the Kuala Lumpur Meeting to provide a channel for shipping companies and other users to voluntarily provide financial support for maintenance and replacement of the aids to navigation and other measures for safety and environmental protection in the straits. Presently, such voluntary assistance came mainly from the long-term contributor Japan, and the three littoral states have been shouldering the burden of maintaining the safety and security of navigation and the environment there. Meanwhile, Nippon Foundation chairman, Yohei Sasakawa, said previously the Malacca and Singapore straits were viewed to be only the concerns of the littoral states, but now users would have to start bearing their responsibilities. © 2007 BERNAMA.
Perwira Bintang ventures into mangrove rehabilitation by Sharen Kaur
Perwira Bintang Holdings Sdn Bhd, a civil infrastructure and building contractor, is moving into mangrove rehabilitation in a bid to fight erosion and protect mangrove trees, and as a source for additional income. The company invented the Pillowtube technology, in which a series of embankment known as Pillowtube is set up as a protective shield. The technology involves the use of an environment-friendly product made from high-strength woven material and a slurry of filling materials, which works as a wave breaker and protects targeted areas from strong waves and soil erosion. "The Pillowtube technology is a new-born baby for Malaysia which will help to regenerate the economy. Our fundamental cost is low as we use a lot of recycling items as fibre materials from the agriculture sector, which normally go to waste," Perwira Bintang chief executive officer Datuk Tan Kar Meng said. The Pillowtube is manufactured at the company's plant in Rawang, Selangor. The technology is similar to the European technology known as Geotube, Woventube, Textiletube and Polytube but modified to suit all conditions. The primary objective of Pillowtube is to protect the coastal areas and give the fragile mangrove saplings a chance to grow their roots. Mangrove trees develop well in the sheltered deltas and act as great protective barrier against tidal waves. They cover 586,036ha currently. The total length of coastline affected by erosion in Malaysia is 1,414km, which is 30 per cent of the country's entire coastline that needs to be monitored. "We are investing substantially in research and development and studying numerous ways to protect our coastlines from being affected by erosion due to rising sea level and strong waves," said Tan. Tan told Business Times in Sabak Bernam, Selangor, recently that Malaysia's critical coastline includes the Straits of Malacca, Terengganu, Kelantan and Pahang. He said it would cost between RM3 million and RM6 million to rehabilitate every 1km, depending on the location, logistics and level and condition of the coastline. "We have the right technology and formula and expect to get some contracts from the Government this year. We also plan to export our expertise and work on similar projects regionally," Tan said. Last year, the Selangor State Government awarded Perwira Bintang a RM1 million contract for a mangrove rehabilitation project at Sungai Besar near Sabak Bernam, involving 250m. It took the company two months to set up the 1.8m tall Pillowtube as a protective shield to separate the rough sea from the mangrove area. In the Ninth Malaysia Plan, the Government has allocated between RM200 million and RM300 million to combat erosion and protect mangrove forests compared with RM200 million in the Eighth Malaysia Plan. The Asian Development Bank and the World Bank have allocated some RM100 million collectively to help the Government fight erosion and protect the mangrove forest. The World Bank has budgeted as much as RM20 billion for coastal protection in Asia in the event of tsunamis, cyclones and hurricanes. © The New Straits Times Press (Malaysia) Berhad.
Port chief calls for a strategic freight transportation policy
Kuala Lumpur - As Malaysia expands its transport infrastructure, a strategic freight transportation policy needs to be developed for the efficient movement of freight through the full use of modal connectivity, said a prominent port chief. Northport (Malaysia) Bhd's managing director and chief executive officer, Datuk Basheer Hassan Abdul Kader, stressed that expansion of the freight movement capacity of various modal networks must be matched by efforts to ensure that the resources are efficiently utilised. Otherwise, there is a danger that the modal capacity of a particular network could go under-utilised purely due to short-term cost competitiveness rather than taking into account the larger national interest, especially the impact of social costs, he said. Speaking on the development of freight corridors as a strategy for economic growth at this week's maritime seminar here organised by the Chartered Institute of Logistics and Transport (Malaysia), he said the time has come to evaluate the social costs of modality biasness in the enthusiasm to promote freight transportation as a growth driver. "The development of freight corridors should be seen as an effective instrument to drive the growth of the freight transportation industry by deepening and widening the geographical outreach of traffic generation clusters fostered by efficient modal connectivity," Basheer said. He described the recent decision to reactivate the North-South rail double tracking project as a positive move that can boost the prospects for freight corridors development not just in Malaysia but extending as far as northern Thailand and beyond. Basheer said the rail double tracking is expected to increase the rail modal capacity by five to seven times with the number of trains increasing to 250 daily from the present 30. "The rail network will also help extend our freight corridors outreach beyond our border into Thailand and, given time, into Cambodia, Laos and China as envisaged by the Singapore-Kunming Rail Link Study initiated by Malaysia," he added. "There is a need to promote a quantum leap in the rail transportation of freight and this can be achieved through a deliberate policy that actively encourages the use of rail modal transportation." He cited the unintended outcome of the Government's decision to liberalise the road container haulage which dramatically expanded the haulage capacity, forcing haulage rates down while encouraging more shippers to use road rather than rail. But this made rail an unintended victim of competition and lower prices, and Basheer said this example is a good reason why such policy decisions should be linked to collateral issues like environmental concerns and modal shift. Such high stress on the road - with Malaysia having a high rate of road accidents - ought to prompt policy planners to seriously consider fostering a modal shift in the movement of freight, he added. He said there are several options to foster this modal shift, such as through innovative technologies and techniques including inter-modality and integrated transport, and allowing ports a bigger role in the development of rail-accessed freight terminals aimed at exploiting modal efficiencies. Basheer proposed that the newly-created Malaysian Logistics Council study the issue in depth. © 2007 BERNAMA.
Security costs $300M in Malaysia straits by Eileen Ng
Kuala Lumpur - Countries and companies that use the Straits of Malacca and Singapore must help bear the estimated $300 million cost required to enhance safety on the increasingly busy waterways, a Japanese group said Tuesday. Some 94,000 vessels, amounting to 4 billion dead weight tonnage (DWT), passed through the Straits of Malacca and Singapore in 2004 and the number is expected to surge to 141,000, totaling about 6.4 billion DWT, by 2020, said Yohei Sasakawa, chairman of the Nippon Foundation, a private Japanese organization. "The introduction of new (navigational safety) measures is estimated to cost $300 million over the next decade," Sasakawa told a two-day conference in Kuala Lumpur on safety and environmental protection in both straits. "The burden should be shared equitably between the relevant parties." If users pay just 1 U.S. cent per DWT, some $40 million a year would be raised, eliminating the excessive financial burden of maintaining the waterways borne by Singapore, Indonesia and Malaysia, which straddle the Straits, he added. Previous proposals to impose a so-called toll on users of the Malacca Strait have been met with caution amid concerns contributors would demand a say on how the waterway is being managed, which could infringe on rights of the coastal states, officials said. The three littoral states late last year urged users to voluntarily contribute to six proposed projects, costing over $42 million, to enhance safety and curb pollution in the Malacca Strait, officials said. But Deputy Prime Minister Najib Razak said voluntary arrangements could lead to states undertaking projects that are less expensive and ignoring the costly ones. "Navigation safety in the straits should not be taken for granted by the international community," he said in a speech read to the conference by Transport Minister Chan Kong Choy. "It should be the collective responsibility of the users as well as the littoral states." Chan later told reporters the littoral states welcomed contributions in the form of technical aid, training programs and funds, but reiterated that a foreign military presence was not needed to secure the Malacca Strait. The three nations launched coordinated maritime patrols in the strait in mid-2004 and air patrols in 2005, amid concerns terrorists could link up with pirates to blow up an oil tanker or use it as a floating bomb. "We don't think the threat is there. We are of the opinion that the three littoral states jointly can manage it well," Chan said. "There is no room for complacency." Pirate attacks in the Malacca Strait, which carries half the world's oil and more than a third of its commerce, have been on the decline since July 2005, with 11 cases last year. © 2000-2007 The McGraw-Hill Companies Inc.
Toll Proposed for Malacca Straits Ships
Kuala Lumpur - Every ship transiting the Strait of Malacca should pay 1 cent per dead weight tonnage into a fund to help maintain the world's most important maritime trade route, regional maritime experts proposed Wednesday. Delegates at a two-day conference on the upkeep of the shipping lane called for a Malacca Straits Fund to be established, into which shipping companies and other users will pay voluntary contributions, to ensure safe navigation and environmental protection of the waterway. "With the expansion of world trade, the traffic volume is estimated to increase from 4 billion DWT in 2004 to 6.4 billion DWT in 2020 and it will increase the risk of accidents and marine pollution," according to a report issued Wednesday by the academics and other maritime experts who organized the conference. "If every transiting ship contributed only 1 U.S. cent per DWT to the Malacca Straits Fund, it will generate $40 million annually to the fund." The organizers are the Maritime Institute of Malaysia (MIMA), Indonesia's Center for Southeast Asian Studies, S. Rajaratnam School of International Studies in Singapore and Japan's Nippon Foundation -- a nonprofit group involved in maritime development. The report said the burden-sharing measure must not impinge on the sovereignty of the littoral states -- Singapore, Indonesia and Malaysia -- which straddle the waterway. State-backed agency MIMA will submit the proposal to governments of the three nations and hopes to present it at a major international maritime conference in Singapore at the year-end, it added. On Tuesday, Nippon Foundation chairman Yohei Sasakawa said an estimated $300 million was required over the next decade to enhance safety on the strait and the burden should be shared equitably between the littoral and user states. Previous proposals to charge users of the Malacca Strait have been met with caution due to concerns from the littoral states that contributors would demand a say on how the waterway is managed, officials said. Indonesia and Malaysia have rejected the possibility of a foreign military presence in the Malacca Strait despite fears that terrorists could link up with pirates to blow up an oil tanker or use it as a floating bomb. The three littoral nations launched coordinated maritime patrols in the strait in mid-2004 and air patrols in 2005 to boost security. Pirate attacks in the Malacca Strait, which carries half the world's oil and more than a third of its commerce, have been on the decline since July 2005, with 11 cases last year. © 2007 The Associated Press.
Tunas Samudera sets off for seven seas
Port Klang - The KLD Tunas Samudera began its 412-day adventure around the world last night, which will include participation in the prestigious Tall Ship Race 2007 organised by the Polish government on July 5. The Sultan of Selangor, Sultan Sharafuddin Idris Shah, flagged off the ship at the Sultan Abdul Aziz Shah base here. The ruler said the armed forces and the country should be proud of the Royal Malaysian Navy’s participation in the race, which was an achievement in its own right. "The determination shown by our sailors is an inspiration to the rakyat to do something that is not only challenging but which also puts Malaysia on the world map. "We are at the right point of our aspiration to become a country developed in maritime trade, where grasping oceanic knowledge is important and beneficial," he said, adding that he was impressed with efforts by the navy to make round- the-world sailing a reality. Sultan Sharafuddin said that Malaysia was active in organising domestic regattas and that it needed local sailing experts who could compete globally. Navy chief Laksamana Datuk Ramlan Mohamed Ali said winning any major award in the race was not the main aim. "It is to gather information and experience on how to be better prepared to organise the race at the 2009 Langkawi International Maritime and Aerospace Exhibition or Lima." The team will study various aspects of the race, its issues, problems and challenges." On a separate matter, Ramlan, when asked on plans to purchase a multi-purpose support ship from South Korea for the armed forces, said: "It is a special project under the armed forces although the navy will be in charge of the ship. But we do not expect any problems." Deputy Prime Minister Datuk Seri Najib Razak was reported to have said that the government was considering purchasing a support ship from a local company. © 2006 NST Online.
Use straits but help pay for security by Wan Hamidi Hamid
Seoul - Many international users of the Straits of Malacca insist they have the right to use the waterway but demand that littoral states such as Malaysia be responsible for security. Malaysia finds it difficult to accept this, Deputy Prime Minister Datuk Seri Najib Razak said. He said the high expectations of international users and the increased volume of maritime traffic had imposed considerable demands and financial burden on the littoral states of Malaysia, Indonesia, Thailand and Singapore. "It is regrettable that international users have thus far not matched their usage of the straits with contribution to the costs of maintaining its safety and security. "However, Japan has been forthcoming in its assistance. It recently handed over a training ship to the Malaysian Maritime Enforcement Agency." Najib was speaking at a lecture here on "Security of the Straits of Malacca and its Implications on Southeast Asia’s Regional Security". The volume of traffic in the straits rose from 44,000 ships in 1999 to 62,000 in 2005, a 42 per cent increase in six years, and is expected to reach 100,000 vessels per year within the next decade. At the subsequent dialogue session, Najib said Malaysia was open to proposals on assisting the littoral states to maintain the security and safety of the straits, including in capacity-building. He said international users should consider providing assets such as navigational equipment to be operated by the littoral states, or offer their services to help keep the straits clear of wrecks. Between 1995 and 2003, there were 44 ship collisions and 15 groundings in the Straits of Malacca. On the violence in southern Thailand, Najib said Malaysia stood by the principle of non-interference and considered the situation a domestic issue. "Only when we are invited by the Thai government will we extend our help." Najib ended his official visit to South Korea with a business lunch here yesterday, before leaving for Kuala Lumpur. At the luncheon, he told representatives of the South Korean business community that the republic had become Malaysia’s sixth-largest trading partner and eighth-largest export market, with 252 Korean manufacturing companies operating in Malaysia with investments of about RM6 billion at the end of last year. Najib noted that South Korean corporation Samsung had invested nearly RM4.2 billion in Malaysia, an indication of its conducive environment for foreign companies. Speaking to the Malaysian Press here, he said South Koreans were looking at opportunities in Malaysia as a launchpad to the Asean market. He also said the South Korean government appreciated Malaysia’s support of its efforts to make the Korean peninsula a nuclear-free zone. That sentiment was expressed when Najib met South Korean President Roh Moo- hyun, Deputy Prime Minister Kim Woo-sik and Defence Minister Kim Jang-soo on Monday. Najib said the republic was also impressed with Malaysia as a model of an Islamic country in national development and in managing a multi-religious society. In Kuala Lumpur, Transport Minister Datuk Seri Chan Kong Choy said Malaysia and its neighbours were capable of keeping the Straits of Malacca secure without the aid of foreign militaries. "There is no need for the presence of a foreign military. What we need is aid in other aspects, such as revolving funds, technical aid, training programmes and exchange of information and intelligence," he said at the "Symposium on the Enhancement of Safety of Navigation and the Environmental Protection of the Straits of Malacca and Singapore" yesterday. © 2006 NST Online.
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Asian ship operators urged to discuss Malacca costs
The Singapore Shipping Association (SSA) has urged the Asian shipping industry to participate in discussions on the cost of ensuring navigational safety in the Malacca Strait. While SSA acknowledges the initiatives put forward during the maritime forum, the Singapore-based association hopes for ''further discussions on the issue before a consensus paper can be made to the International Maritime Organisation (IMO).'' There has been a call for shipping firms to pay a ''toll'' going through the Malacca Strait following a recently concluded maritime forum in Kuala Lumpur, Malaysia. The SSA has noted with interest an approach that had been made in seeking to establish an acceptable mechanism for voluntary funding. ''We would like to know how the funds are to be collected, managed and distributed. There should also be further consultation on the voluntary funding mechanism that will be established with all interested stakeholders before it is endorsed by the three littoral States and the IMO,'' Teo Siong Seng, chairman of SSA, said in a statement. Such a mechanism should, in the SSA's view, be consistent with the KL Statement issued last September and the United Nations Convention on Law of the Sea (UNCLOS) 1982. He added that SSA members ''will not be receptive to any attempts that are aimed at seeking mandatory funding towards this cause as their ships calling at ports in the three littoral states are already paying port dues or light dues.'' He highlighted that such dues should be used to enhance safe navigation and environmental protection. During the forum in Kuala Lumpur, the Nippon Foundation, a Japanese non-government aid donor, said a charge of one cent per metric tonne (mt) of cargo would raise $40 million annually. The head of the foundation, Yohei Sasakawa, said the money could be used to improve navigation and safety in the strait. ''This is such a small amount that it would not impact freight rates but it would help alleviate the excessive burden born by the littoral states,'' he told a symposium on the Malacca Straits. There have already been calls for countries and shipping companies that use the strait to give money to help finance safety and security, but so far Japan remains the main international donor. © 2007 Petromedia Ltd.
Indonesia detains Singapore barges
Singapore - Indonesia has detained an unspecified number of Singapore barges transporting granite. Despite the lack of any official ban on granite exports, a Singapore Ministry of Foreign Affairs website quoted an Indonesian inter-departmental team's reference to a 'breach in regulations' as the reason for the detention. Indonesian foreign minister Hassan Wirajuda was also quoted as clarifying to his Singapore counterpart, on the website, the non-existence of any such ban. On 5 February Indonesia banned sand exports, citing environmental concerns. Singapore depends heavily on sand imports, with Indonesia accounting for 6-8M tonnes a year, to sustain a construction boom. Since the ban it has diversified its sand supply sources. © Lloyd's Register - Fairplay Limited 1999 - 2006.
Owners reject Malacca toll proposal
Singapore - Owners have endorsed calls for a safer Strait of Malacca, but have indicated that they would be unwilling to support any mandatory toll. The Nippon Foundation, a Japanese organisation which, together with research bodies, has been funding a significant portion of the cost of installing and maintaining navigational aids along the strait, has mooted a voluntary cost-sharing scheme for users in the form of tolls. The Singapore Shipping Association today emphasised adherence to what is known as the KL Statement issued in September in conjunction with IMO and Unclos 1982. The association has summarily rejected mandatory tolls. “Our members will not be receptive to any attempts that are aimed at seeking mandatory funding towards this cause,” declared SSA president Teo Siong Seng. He pointed out that ships calling at ports of the three littoral states – Indonesia, Malaysia and Singapore – are paying port dues and light dues. The Japanese Shipowners’ Association supports this view, while Intertanko has called for more discussions on the “practical and operational” nature of a voluntary scheme. © Lloyd's Register - Fairplay Limited 1999 - 2006.
Security emphasized for Malacca, Asia's
most important sea lane by Thorsten Ludwig
Located between Malaysia, Indonesia, and Singapore, the Malacca Strait is one of the most important shipping lanes in the world, and one of the most endangered. About 60,000 ships, carrying half the world's oil and more than a third of its economy, pass it every year. This makes it equivalent in its importance to the Suez or Panama Canal. "Located in one of the world's most vibrant economic growth areas, it is a crucial link for international trade and transportation," the Hon Dato' Sri Najib Tun Abdul Razak, deputy prime minister of Malaysia told the audience in an address on the security of the Straits of Malacca, on March 13, 2007. The seminar took place in a hotel in Seoul and attracted numerous journalists and embassy officials, such as Colonel Tim Gall of the New Zealand Defence Force and Colonel Bernd Gieber, defence attaché of the German embassy. The address was jointly hosted by the embassy of Malaysia and the Institute of Foreign Affairs and National Security (IFANS). "Germany is largely an export nation and has a prospering ship building industry. That's why we are very much concerned about the security of the seaways," Mr. Gieber explained the reasons for his attending. The strait's economic importance drew the attention of a threat, which seemed long forgotten in marine history: piracy. A threat which grew so eminent, that the Lloyd Market's Association (an insurance company) declared the Malacca Straits an area that is in jeopardy of "war, strikes, terrorism and related perils" in 2005. The LMA revoked this decision later in August 2006. Nevertheless, in 2004, from all the piracy crimes worldwide, 40 percent were committed in this area. After the 9/11 attacks on World Trade Centre, another frightening scenario rose in the heads of analysts. A terror attack in this area could critically wound one of world trade's most important veins, leading to an economic collapse in this region. If terrorists would sink a ship at the most shallow part of the strait, no ship could pass through and the whole traffic would be blocked. Fears rose, when video footage of Malaysian police patrols along the Malacca Straits, appeared on the al-Qaeda network, suggesting there was already a plan in progress. "After 9/11 we were worried about a connection between pirates and al-Qaeda. But we are tracking this very closely and I can assure you that there is no evidence for such a case so far," the deputy prime minister ensured the audience. In order to find a response to the threat, authorities in some Asian countries are operating together. Malaysia, Thailand and Japan recently joined in a first anti-piracy exercise near the Thai island resort of Phuket. United efforts, through coordinated patrols and eye-in-the-sky surveillance have recently shown huge success in decreasing the piracy rate. "In comparison to the year 2003 and 2004 that recorded 28 and 37 cases respectively, the year 2006 only recorded 11 cases with 19 cases in 2005," Mr. Razak explained. But not only pirates and terrorist threaten the ships traveling the lane. Another danger is navigational problems. With increasing volume of traffic (62,000 ships in 2005 compared to 44,000 in 1999), the littoral states face huge problems in ensuring a safety of navigation. "The waterway is still an accident-prone area. This is despite the fact that the navigational aids to facilitate smooth flow of traffic in the straits are already in place," the deputy prime minister continued. Another challenge for the littoral states of Malaysia, Indonesia, Singapore and Thailand are the environmental threats. "The increase in traffic volume and sometime heavy fog poses the risk of ship collisions and the threat of shore-based pollution," he said. But even so the international community is one of the main users of the Straits of Malacca, it so far lacked in contributing to the costs, necessary for maintaining its security. "Malaysia finds it difficult to accept that while the international users consider the straits as an international sea lane which they have the right to use, however, the efforts of maintaining and securing the waterway have always been regarded the responsibility of the littoral states," he complained. So far only Japan has given assistance and resources regarding navigational and environmental security. Its interest in secure Malacca Straits is obvious. Together with China, most of their oil from the Middle East and its exports to Southeast Asian and Arab markets are ferried on tankers and ships that use the Malacca Straits. "The Straits of Malacca will continue to face a plethora of challenges whether existing or emerging in the years ahead. There is thus a need for the littoral states and the stakeholders to go beyond the confidence building stage to concrete collaboration by realizing modalities for cooperation," he finished his speech. © 2007 The Seoul Times Company.
Ships 'should pay' to use Malacca Strait
There has been a call for shipping firms to pay a “toll” going through the Malacca Strait. The Nippon Foundation, a Japanese non-government aid donor, said a charge of one cent per metric tonne (mt) of cargo would raise $40 million annually. The head of the foundation, Yohei Sasakawa, said the money could be used to improve navigation and safety in the strait. 'This is such a small amount that it would not impact freight rates but it would help alleviate the excessive burden born by the littoral states,' he told a maritime forum. The Malacca Strait links Asia with the Middle East and Europe and carries about 40% of the world's trade and 80% of Japan's and China's energy supplies. It is also the main approach to Singapore. There have been calls for countries and shipping companies that use the Strait to give money to help finance safety and security, but so far Japan remains the main international donor. The president of the Singapore Shipping Association (SSA), Teo Siong Seng, reacted to the proposal with caution. "[We] have always maintained that we must consider very carefully the kind of precedent we will set if we are to charge for use of the waterway," he said. But Malaysian Transport Minister Chan Kong Choy said Malaysia welcomed any initiative to share the burden of enhancing navigational safety in the strait. © 2007 Petromedia Ltd.
Singapore shipping body says 'no' to funding for straits' upkeep
Singapore - Playing the Law of the Sea's 'international waterway' card, the Singapore Shipping Association (SSA) has voiced its absolute opposition to any mandatory cost-sharing for the maintenance of navigational safety in the busy Malacca and Singapore straits. 'Our members will not be receptive to any attempts that are aimed at seeking mandatory funding towards this cause,' said SSA president S S Teo in a statement yesterday. The association said its 300 members' ships already pay port and light dues at ports in the three littoral states which should be used for the enhancement of safe navigation and environmental protection. 'The SSA also notes the Straits of Malacca and Singapore are international waterways for free and unimpeded passage of ships,' Mr Teo added, in reference to the United Nations Convention on Law of the Sea (Unclos). The SSA's comments, which included a call for the shipping industry to be involved in further discussions on the issue, were in response to a consensus document issued at the end of a two-day symposium last week in Malaysia. The statement, issued by the four participating research institutions from Malaysia, Indonesia and Singapore along with the Nippon Foundation of Japan, called for private sector support for a cost-sharing scheme to protect the vital waterways. It recommended that 'shipping companies and other users recognise their corporate social responsibility towards the promotion of navigational safety and environmental protection of the straits and voluntarily provide the necessary assistance to the littoral states'. The proposal included the establishment of a Malacca Straits Fund in which each transiting ship would voluntarily contribute one US cent per dead weight tonne (DWT), which would contribute US$40 million annually to the fund. 'This revenue would eliminate the excessive and unfair burden born entirely by the littoral states, Malaysia, Singapore and Indonesia,' said Nippon Foundation chairman Yohei Sasakawa as he urged the shipping industry to play its part. 'Such a system would guarantee that those who profit most from the waterway - the users - would help to pay for the maintenance of navigational safety,' Mr Sasakawa added. 'We would like to know how the funds are to be collected, managed and distributed,' Mr Teo said of the proposed fund. The symposium statement is to form the foundation of a consensus paper to be presented at the next International Maritime Organisation (IMO) meeting on the straits, to be held in Singapore in September. The SSA also said that while it recognised the efforts of the five organisations to raise awareness of the need for equitably sharing the costs in the straits, an acceptable mechanism for voluntary funding should be consistent with the KL Statement issued last September during the IMO straits meeting in Kuala Lumpur as well as the Unclos. That statement effectively urged greater cooperation among all stakeholders to develop a voluntary funding mechanism. An estimated $300 million will need to be spent on new navigational safety measures over the next decade as traffic in the already congested straits is expected to increase nearly 50 per cent to 141,000 annual vessel transits, or from four billion DWT in 2004 to 6.4 billion DWT by 2020. Increasing security measures in the straits to fight piracy and prevent marine terrorism have also added significantly to the cost being borne by the littoral states with contributions by Japan. The symposium was organised by the Maritime Institute of Malaysia, Indonesia-based Centre for Southeast Asian Studies, Singapore's S Rajaratnam School of International Studies and the Nippon Foundation. © The Business Times Singapore.
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Banker hails proposed Tanjung Manis shipyard by Edward Subeng Stephen
Sibu - The proposed shipbuilding and repair industrial zone in Tanjung Manis in the Mukah Division and the set-up of Sarawak Maritime Academy here are steps in the right direction for the state. Bank Pembangunan Malaysia Bhd (BPMB) deputy president, Norulhadi Md. Shariff, said they would propel the state to greater heights in the shipbuilding and repair business and in producing more manpower. Norulhadi, who is also head of the bank's maritime, business development and advisory services, told Bernama Tanjung Manis was poised to be the country's shipbuilding and repair hub. He said this at the three-day Sibu Ship Expo 2007 beginning today which showcases products by local shipbuilders, vessel engines and latest high-technology appliances. Norulhadi said the other place which could equal Tanjung Manis was Sungai Dinding in Perak, which he described as the last frontier for shipbuilding in Peninsular Malaysia. "With Tanjung Manis' deep water, shipbuilders can build larger ships of over 20,000 metres. "Malaysian shipbuilders' capability is limited and the biggest vessel they can manufacture is a 12,000-tonne tanker," he said. He said shipping business worldwide was at its zenith and the demand for ships of all categories was increasing even within the country. "Shipyards in the country, for example, have existing orders stretching to 2010 and beyond. "The increasing oil exploration activities worldwide are also making their presence felt on shipbuilders," he said. Sibu shipbuilders, he said, should take advantage of the situation by relocating to Tanjung Manis. "In Tanjung Manis, they can operate from bigger premises and build or repair bigger ocean-going vessels," he said. He said Sarawak has the most number of shipyards in the country albeit mostly small ones. "In Peninsular Malaysia the number of shipyards is small. But the companies are big and their forte are in the offshore jobs and repair and in constructing big ships," he said. He, however, said big or small was not an issue. "What is important is they have their respective areas of specialisation," he said. Norulhadi said BPMB was ready to offer financial facilities to shipbuilders and shipowners wanting to relocate to Tanjung Manis. "We have a huge shareholder fund. Our single customer limit is about RM1billion, or a quarter of our shareholders' fund," he said. He said BPMB would offer working capital loan from the vessel construction stage to when it was ready for delivery, a tenure of 15 years with two-year grace period. "The borrower will only need to service the interest during the grace period," he said. He said BPMB had so far provided loans for the construction of 281 vessels nationwide. "Last year, we gave out loans totalling almost RM1.8 billion. Most of the applications were for the construction of double-hull tankers to carry palm oil and chemicals," he said. On the RM20 million Sarawak Maritime Academy, he said, it was a far-sighted effort to increase manpower in the industry. The academy is expected to take in its first batch of students by 2008. He said there was a need for such a school to create awareness among students on the huge prospects in becoming a trained seaman. "We are still relying a lot on foreign captains and other crew members. An experienced captain can easily command a salary of US$8,000 (US$1=RM3.43) per month. © 2007 BERNAMA.
Musa wants no repeat of encroachment incidents
Kota Kinabalu - Chief Minister Datuk Seri Musa Aman wants enforcement and surveillance activities in the Malaysian waters off Sabah to be intensified to prevent encroachment of foreign vessels. He also wants the Marine Police, Royal Malaysian Navy (RMN) and the Fisheries Department to submit reports to the State Government regarding the two incidents of encroachment in Sabah waters by fishing boats from China that happened this week. "We are very sad that these (intrusions) happened. I hope the agencies concerned will ensure such incidents do not recur," he told reporters after attending a function to celebrate his 56th birthday, here, Friday. Expressing disappointment that it could happen, he said it was not only a matter of the fishing boats poaching for endangered species of turtles but also concerned the nation's maritime security. "This is something serious and constant monitoring is necessary to prevent a recurrence of similar incidents," added Musa, who is also the Chairman of the State Security Committee. Sabah Marine Police caught two fishing boats, believed from Hainan in China, that were poaching for turtles about 18 nautical miles northwest of Mantanani Kecil Island and 17.5 nautical miles from Mengalum Island on Monday and Wednesday, respectively. The incidents, which were direct violations of Malaysia's Exclusive Economic Zone (EEZ), also puzzled the Bukit Aman Marine Police. Apart from intercepting the trawlers, the marine police also recovered over 300 Greenback and Hawksbill turtles, including 25 that were alive, and detained 36 Chinese nationals aged between 16 and 58. Sabah Police Commissioner Datuk Mohd Mokhtar Hassan had said on Thursday that the police are investigating how the boats could have eluded the various layers of enforcement agencies guarding Sabah's waters. He said they would liaise with the RMN, among others, to prevent further intrusions by illegal foreign vessels. Only local fishermen are allowed to operate in the EEZ, an area anywhere in the Malaysian Territory Waters (MTW) that stretches across about 200 nautical miles from the nearest land. On another matter, Musa hoped that the readmission of Datuk Askalani Abdul Rahim into Umno would help further strengthen Umno in Sabah. © Daily Express, Sabah, Malaysia.
Singapore funds maritime R & D
Singapore - Singapore has set up a S$10M ($6.5M) fund to boost maritime research and development. The Maritime and Port Authority and the Agency for Science, Technology & Research (A *Star) are splitting the grant to be provided over three years to the Centre for Offshore Research & Engineering (CORE) at the National University of Singapore. An MOU for the purpose was signed between the university and A *Star, MPA and the Economic Development Board when the offshore research programme was launched. Separately CORE has signed an MOU with seven industry partners, among whom are Singapore’s leading shipyards grouped under conglomerates Keppel Corp and Semb Corp and classification societies Lloyd’s Register (Asia) and American Bureau of Shipping. Singapore is the world’s leading builder of jack-up rigs and the MOU provides for joint research projects in offshore and marine engineering. Offshore related works including construction of jack-up rigs, semi-submersibles and FPSO and FSO conversions account for a significant portion of Singapore’s booming marine industry whose annual turnover exceeds S$7Bn. © Lloyd's Register - Fairplay Limited 1999 - 2006.
Singapore to build new command center for maritime security
Singapore - Singapore is building a joint command center that will house three maritime groups under one roof to increase coordination against threats at sea, the Defense Ministry announced Wednesday. A groundbreaking ceremony was held Tuesday for the Changi Command and Control Center, which is expected to be operational in 2009 to coordinate local, regional and international security efforts to deal with threats such as piracy and terrorist attacks on ships. The center, to be located beside the Changi naval base, will house the Singapore Maritime Security Center, the Information Fusion Center and the Multinational Operations and Exercises Center. "The trans-boundary nature of maritime crime and terrorism, coupled with the limited resources of states, demand that security and enforcement agencies, port authorities and shipping associations, come together to cooperate in the maritime security domain,'' Defence Minister Teo Chee Hean was quoted as saying at the ceremony by The Straits Times. In a statement, the ministry said the center will provide a "useful platform for nations to cooperate and respond more flexibly and effectively to a dynamic maritime security environment.'' It said the Multinational Operations and Exercises Center can also function as a regional disaster relief center if the need arises. Singapore, Indonesia and Malaysia have in recent years coordinated maritime and air patrols in the Malacca Strait. Pirate attacks in the Malacca Strait, which carries half the world's oil and more than a third of its commerce, have been on the decline since July 2005, with 11 cases last year. © 1995-2005 Star Publications (Malaysia) Bhd.
Shipyard to be developed in Sarawak
Miri - Sarawak Timber Industry Development Corp (STIDC) in East Malaysia is diversifying into shipbuilding, a company source has confirmed to Fairplay. Earlier reports quoting Sarawak’s urban development and tourism minister Datuk Seri Wong Soon Koh as saying that local and foreign shipbuilding companies have been allocated land for the project are incorrect, the source clarified. “There are no foreigners in Tanjung Manis,” he emphasised, referring to the township where Sarawak’s shipbuilding will be based. The push into shipbuilding has been prompted by a downturn in the timber sector. Work to construct, repair and maintain deep-sea cargo vessels will begin with the construction of a slip way; commencement of the project dependent on investors. Indications are that the yard will be able to accommodate vessels of more than 20,000dwt. A highway will be built to link Tanjung Manis to Sibu in Sarawak. © Lloyd's Register - Fairplay Limited 1999 - 2006.
Vietnam to built shipyard industrial area
Singapore - Hai Phong in northern Vietnam is to build a $49M shipbuilding industrial park in Thuy Nguyen district. Tien To Tuc, director of Hai Phong Maritime Administration, confirmed to Fairplay that the park will allocate land for the building of a quay. The quay will have a length of 1,700m and a depth alongside of 6m. It will be able to handle vessels of up to 10,000dwt. Meanwhile, a joint venture between Vinashin subsidiary Shinec Shipbuilding Joint Stock Co and Viking's Cordage Co, will build a $5M factory on the site that will supply navigational devices, about one-third of which will have been made in Vietnam. Shinec is reported to specialise in producing ship interiors. Tien said the industrial park is considering encouraging investors with low rents. © Lloyd's Register - Fairplay Limited 1999 - 2006.
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