Asia security summit brings together defence ministers in Singapore
Singapore - Defence Ministers from the Asia-Pacific region will meet here early next month for their annual defence consultations -- the IISS Asia Security Summit or also known as the Shangri-La Dialogue. IISS, the International Institute for Strategic Studies based in London, said that the informal summit from June 2-4 will feature three components, the first being on-the-record plenary sessions which offer a platform for ministers and national security advisers to clarify and expand on government policy. They are also expected to be challenged during the plenaries by an expert group on policies and assumptions, thus refining the quality of wider public debate on Asian security, IISS said in a statement. "Secondly, the off-the-record break-out groups, also involving senior officials, provide a private opportunity for professional discussions to analyse more deeply pertinent strategic issues and to advance policy aims. "Thirdly, the multilateral lunches and dinners help to cultivate the sense of a defence and security community where shared interests can be protected and advanced," IISS said. In last year's dialogue, Malaysia was represented by Deputy Prime Minister Datuk Seri Najib Tun Razak who is also the Defence Minister. Addressing the plenary sessions then, Najib proposed the establishment of an "Eye In The Sky" aerial surveillance over the Strait of Melaka and Singapore. The three littoral states of Malaysia, Singapore and Indonesia had since worked out how to go about implementing the proposal and launched the initiative in September last year. The IISS said that delegate leaders will be drawn from Australia, Brunei, Cambodia, Canada, China, France, India, Indonesia, Japan, Malaysia, Mongolia, Myanmar, New Zealand, Pakistan, the Philippines, Republic of Korea, Singapore, Thailand, Timor-Leste, United Kingdom, United States, and Vietnam. Issues to be addressed at the plenary sessions of this year's dialogue include The US and Asia's Emerging Security; India and China: Rising Global Players; Deploying Forces for International Security; Setting National Security Priorities; and Constructing a Regional Security Community. The break out sessions will address Advancing Maritime Security Cooperation; The Challenges of Force Modernisation; and Counter-Insurgency in the Twenty-First Century. Prime Minister Lee Hsien Loong is scheduled to open the dialogue, which has become a recognised part of the infrastructure of Asian defence diplomacy since its inaugural meeting in 2002. © 2006 BERNAMA.

Indonesia seeks to enhance defense co-op with China
Jakarta - The Indonesian government said Friday it is ready to forge defense and security cooperation with China to follow up the strategic partnership established last yearby leaders of the two countries. "China and Indonesia have not established a specific defense and security cooperation yet. To follow up the strategic partnership agreed upon (last year), we are now drafting the memorandum of understanding (MoU) on that matter," Defense Ministry spokesman Eddy Butar Butar told reporters here. He made the remarks shortly after accompanying Defense Minister Juwono Sudarsono in a meeting with a delegation of the Chinese Defense Ministry. He said Indonesia and China will continue working together to achieve regional peace and prosperity. The MoU draft will be consulted with the Foreign Affairs Ministry and other related government agencies, he said. On the same occasion, Defense Ministry Secretary General Lieu. Gen. Sjafrie Sjamsoeddin said the agreement should reflect mutual respect of each other's sovereignty and territorial integrity and be mutually beneficial. The meeting also agreed to enhance cooperation between Indonesia and China in Strait Malacca security and in broader area of maritime security cooperation, he said. © Xinhua News Agency.

MISC profit falls from peak levels
MISC Bhd, Malaysia’s largest shipping company, has reported a 38% drop in net profit for the financial year ending 31 March 2006 to M$2.9Bn ($810M), although turnover rose marginally to M$10.7Bn. A company statement said lower profits must be viewed against the backdrop of the shipping cycle moving out of the “unprecedented super peak levels” achieved in the previous financial year. It has been noted that the Group’s financial profile still remains “very strong" and performance has partially been sustained by shipyard subsidiary Malaysia Marine and Heavy Engineering. An agreement has been signed with the Kuok Group and IMC Enterprises to buy out the remaining 35% equity in MMHE for M$181.6M, which will give MISC full ownership of the yard. MISC is more than 60% owned by state oil and gas giant Petronas and operates a fleet of 108 ships, of which 88 are petroleum, LNG and chemical tankers. The company is the world’s biggest LNG operator with a fleet of 21 vessels. © Lloyd's Register - Fairplay Limited 1999 - 2006

U.S. Pacific Fleet chief to visit Malaysia
Kuala Lumpur - United States Pacific Fleet Commander Admiral Gary Roughead is expected to visit Malaysia starting from May 17, Malaysia's national news services Bernama said Thursday. Roughead hoped to discuss matters of mutual interests and maritime security issues with the Royal Malaysian Navy leadership and other leaders in the Malaysian Armed Forces, Bernama said. Roughead said in an interview with Bernama in Washington that the United States has no desire to have a permanent presence, to patrol or to infringe in any way the sovereignty of the Southeast Asia region. The United States wanted to know how best it can cooperate in the region, said Roughead who became the chief of the U.S. Pacific Fleet in July last year. The United States continued to have discussions and look at ways to improve the security and the stability of the Asia-Pacific region, particularly in the important area around the Malacca Straits. On piracy in the Straits, he noted that piracy cases in the waters had dropped significantly since the tsunami hit the region in December 2004. Countries in the region were also focusing and working hard on the piracy problem, he added. Earlier, Roughead said in Washington that the U.S. Pacific Fleet was engaged in a series of ongoing exercises with the countries in the region, including CARAT (Cooperation Afloat Readiness and Training) from June to August this summer. He also said that a naval exercise called SEACAT (Southeast Asian Cooperative for Anti-Terrorism) would be held to prepare countries in the region for future challenges and threats. Roughead also announced the upcoming visit of the US naval hospital ship, "USNS Mercy" on a humanitarian mission to the Philippines, Indonesia, East Timor and Bangladesh for about five months starting from May 25. © Xinhua News Agency.

WEEK 3 (14 - 20 May 2006)

Bunga Seroja Satu's maiden voyage marks a milestone
Port Klang - Malaysia's largest container vessel, Bunga Seroja Satu, will mark a significant milestone in the country's journey to be a leading maritime nation with its maiden voyage around the world. The 317.8m vessel, owned by MISC Bhd, is heading for at least 15 destinations, among them, Jeddah, Rotterdam, Hamburg, Taiwan, Pusan, China, Singapore and back to Malaysia in 63 days. The vessel will depart from Northport at midnight. Bunga Seroja Satu, ordered from Daewoo Shipbuilding & Marine Engeneering Co Ltd in 2004, is the first of a series of two container vessels ordered by MISC. The other is Bunga Seroja Dua, which is due for delivery in February 2007. MISC vice president (liner business), Niels Kim Balling, said the addition of these vessels was part of MISC's restructuring programme of the liner business. "These vessels will put MISC on a firmer footing within the Grand Alliance and in the integrated liner logistics industry," he said at the ceremony to celebrate the maiden voyage on board Bunga Seroja Satu here today. © BERNAMA.

Malaysia, Indonesia to sign fishing cooperation pact by Mohd Nasir Yusoff
Jakarta - Malaysia and Indonesia are expected to sign a memorandum of understanding (MoU) on fishing cooperation, said Malaysian Agriculture and Agro-based Industry Minister Tan Sri Muhyiddin Yassin. Malaysia had submitted a draft of the MoU to Indonesia and expected it to be signed in one or two months, he told Malaysian journalists after attending the Food and Agriculture Organisation (FAO) Regional Conference here Thursday. He said he had held talks with Indonesian Minister of Fisheries and Maritime Freddie Numberi and invited him to visit Kuala Lumpur for the signing of the MoU. Muhyiddin said the MoU proposed the setting up of a Technical Working Committee between the two countries to identify areas to be developed jointly, especially training of ship's crews such as the skipper and downstream fishing industries. The MoU would also foster bilateral cooperation in technical expertise and investment in aquaculture including breeding and processing of fish and prawn. With the MOU, Malaysia and Indonesia could share information on deepsea fishing technology and vessel monitoring system (VMS). The VMS enables each fishing boat to be tracked to prevent encroachment into the territorial waters of the other country and the recording of the total catch. "We plan to begin installing the VMS devices in Malaysian boats from next month," he said. Muhyiddin said at his meeting with Numberi, he offered the use of the tuna fishing port at Batu Maung in Penang to Indonesian boats to land their catches. He said the offer was to promote the port in Batu Maung and another in Tanjung Manis in Sarawak as international deepsea fishing ports complete with facilities to process the catches. © 2006 BERNAMA.

Maritime agency to go after fishermen using illegal fishing methods
Port Klang - Following its success in combating piracy and smuggling, the Malaysian Maritime Enforcement Agency (MMEA) will now go after fishermen using illegal fishing methods. This was necessary as their actions had destroyed coral reefs and could adversely affect the entire marine ecosystem, said the agency’s director-general, Vice Admiral Datuk Mohammad Nik. He said fish bombing, cluster-bombing, over-trawling and the use of cyanide were quite acute in the waters of Sabah and Sarawak. “Since MMEA became operational last year, there has been a marked decrease in the number of pirate attacks in the Straits of Malacca. In fact, no cases have been recorded this year. “So the time has come for us to join the fight against those harming the marine ecosystem,” he said after a symbolic keel-laying ceremony for two MMEA fast assault craft being built by Destination Marine Services Sdn Bhd.© New Straits Times (Malaysia).

Small Fine For ISPS Non-Compliance
Singapore's Maritime and Port Authority has taken legal action against a shipyard and a marine services company for failing to ensure that their facilities complied with the ISPS Code. Both Pandan Shipyard and Dundee Marine & Industrial Services, who were certified ISPS compliant, pleaded guilty and were fined USD 1,900 each by a local court. The breach came to light when the Immigration & Checkpoints Authority found a Filipino without valid travel documents on board a fishing vessel, berthed at the Pandan jetty. Investigations revealed that he had passed through Pandan Shipyard's premises. In a similar incident, two Filipinos, who had overstayed in Singapore, slipped through Dundee Marine's premises. © Lloyd's Register - Fairplay Limited 1999 - 2006.

WEEK 4 & 5 (21 - 31 May 2006)

Asian navies asked to use U.S. technology by Audrey McAvoy
The top U.S. Navy commander in the Pacific is proposing that the Indonesian, Singaporean and Thai navies acquire U.S. technology to help track suspect ships in the Pacific. The idea is part of a U.S. military effort to boost awareness of possible pirate and terrorist ships in a region that is home to a large share of the world's trade and many of the world's fastest-growing economies. The plan would put the United States in a supportive, not front-line, role in any maritime security effort in Southeast Asia. This approach is likely to go over better with countries in the region than having U.S. troops and ships help secure the area, a possibility U.S. defense officials once reportedly suggested but backed away from amid vocal opposition from countries in the region. The United States is particularly concerned about keeping pirates and terrorists out of the Malacca Strait — a waterway that separates Indonesia from Malaysia and Singapore. Half of the world's oil trade and a third of global commerce passes through the strait, making it a critical channel for regional and international stability. Adm. Gary Roughead, U.S. Pacific Fleet commander, said piracy and maritime terrorist attacks, like the 2000 suicide bombing of the USS Cole in Yemen that killed 17 American sailors, raise costs for shippers by inflating insurance premiums and otherwise disrupting trade. "The oceans are great facilitators of trade and commerce, but they are also facilitators of transnational criminal activity," Roughead said in a recent interview at his Pearl Harbor headquarters. "The use of the maritime domain and some of the sea lane for terrorists to move back and forth is a great problem." Roughead said he proposed to defense officials in Indonesia, Singapore and Thailand during a March trip that they use a U.S.-developed system that allows ships to alert one another to the presence of a suspect vessel. He said the officials showed interest in learning more about the program the Navy calls Cooperative Maritime Forces Pacific, but held off from committing themselves. Roughead called that stance "perfectly reasonable," adding that countries would get a chance to try out the system during multinational maritime exercises scheduled over the next several months. He also asked military officials in India and Malaysia during a trip last week if they would be interested in the technology. The admiral stressed the U.S. military did not want to send ships to patrol the Malacca Strait. "As soon as you start talking about doing operations, I think some people begin to get a little nervous. But as I said, we have no desire to do that," Roughead said. "But we are willing and will do all we can to help any of the countries that are looking for assistance, support or whatever, as they do the patrolling and policing." U.S. officials in 2004 reportedly proposed sending an elite unit to help secure the strait. Both Malaysia and Indonesia, which have Muslim-majority populations, said they would reject any such suggestion. © 2006 The Honolulu Advertiser.

Asians to set up owners secretariat
Asian Shipowners’ Forum members have recorded a “strong will” to set up a secretariat to represent their interests on a permanent basis, as Asian companies become ever more influential. Meeting this week in Karuizawa, Japan, the heads of Asia’s leading shipping companies said they had established a working group to make a firm proposal on such an office when the Forum reconvenes in South Korea next year. Japanese Shipowners' Association president Kunio Suzuki, chaired the meeting. He told a press briefing that a permanent office was "not enough … We need to strengthen the Forum itself and ensure that our decisions are implemented.” Commenting on a range of shipping issues, delegates said they expected toughening regulatory pressures to bear on ship owners, particularly with respect to the criminalisation of seafarers involved in pollution incidents. While the ASF supports criminal sanctions for deliberate acts of pollution, Arthur Bowring of the Hong Kong Ship Owners Association told reporters: “we are extremely concerned about the growing trend of criminalisation for accidental pollution incidents.” The ASF said it intends to lobby, inter alia, for re-assessment of insurance status for the Strait of Malacca following a reduction of piracy, and to campaign for continuation of anti-trust exemptions for liner conferences. © Lloyd's Register - Fairplay Limited 1999 - 2006.

Brunei Joins Security Exercise At Sea by Sonia K and Azaraimy HH
Bandar Seri Begawan - Rear Admiral William R Burke Commander, Logistics Group, Western Pacific Commander, Task Force 73 made a courtesy call to Commander of the Royal Brunei Navy Lt Col (L) Joharie bin Hj Metussin at the Royal Brunei Navy, Muara yesterday afternoon. Rear Admiral Burke was in the country for a day's visit to the Royal Brunei Navy. The US Navy routinely conducts exercises with navies in the region to build and enhance proficiencies ina variety of mutually beneficial skill areas. The fifth annual South East Asian Cooperation Against Terrorism (Seacat) maritime security exercise got underway on May 20 with the departure of US Navy task from Okinawa, Japan. Seacat is a week-long at-sea exercise designed to highlight the value of information sharing and multinational coordination within a scenario that gives participating navies practical maritime interdiction training opportunities. The Seacat model was designed to contribute to regional coordination efforts that support cooperative responses to terrorism and transnational crimes at sea. The US Navy task group comprises of Frigate USS Crommelin, Destroyer USS Hopper, the Cutter USCGC Sherman, and Rescue and Salvage ship USS Salvor. With liaison officers from the Royal Brunei Navy, Singapore, Thailand, Indonesia and the Philippines on board USS Tortuga, the task group's command ship serves as an information fusion centre, as well as a simulated rogue merchant vessel while transiting to the South China Sea. Meanwhile, Brunei RBAF observer will board the military sealift command ship MV Button playing the role of a commercial ship in distress. In an interview with the Bulletin, the admiral talked about the purpose of his visit as well as his views on Seacat. What is the purpose of your visit? One purpose was it was a convenient place to get off because it is very- close with one of the countries we're working with and it gives me an opportunity to meet with some of the a naval folks we work with in the exercise. What do you hope to achieve in this visit Primarily I hope for a chance to meet people. On a larger level, the Seacat exercise is a great exercise for South East Asia such as Indonesia, Brunei, Singapore, Philippines, and Thailand so we plan to do is look at ways to address transnational threat and how we as navies would cope with it. What's the scope of cooperation between the US Navy and the Brunei Navy? We cooperate on a lot of levels. Allowing us to fly in here is a level of cooperation and we have ships that will come in here later in December and an aircraft here now. On an exercise perspective, the Brunei Navy ship has been working with us right now in this Seacat exercise and additionally we have a Brunei naval officer whp is on board the Tortuga who is working with a group of officers from South East Asia as well as the US who are trying to track some of these ship that are simulated to be doing bad things. So there is great cooperation with the Brunei Navy. Do you have any comments about the Brunei Navy? How they are performing and all? I did get to see the ship in action and I did see the Brunei Liaison Officer. He and the team are doing very well. It's not a one-nation game because we're talking about the transnational issues so it involves the cooperation of all the countries in the region. And I think they're doing very well. Seacat is not a multilateral exercise, right? Then why are the liaison officers embarked together in the same ship? No, each navy's contribution to the exercise scenario is bilateral in nature with the US Navy and based in each navy are individual capabilities and its own goals. And in this day and age of high operational tempo and a myriad of real world force commitments where assets are often scare, bringing the liaison officers together and conducting what equates to six bilateral exercises simultaneously makes good business sense and had tremendous training value for the US Navy. The take-away from training efforts such as this are directly applicable to anti-terrorism and anti-piracy efforts. Additionally, we feel that personal relationships built by these types of opportunities are mutually beneficial. What do the participating countries contribute to the exercise in the way of assets and capabilities? Each, country's contribution is based on bilateral exercise goals agreed-upon between itself and the US Navy during the exercise-planning phase. Countries may use indigenous capabilities as a means to meet these goals. However, I would refer you to the individual nations to address their participation. © Brudirect.com.

Bunga Seroja Satu joins MISC's fleet by Kamarul Yunus
Bunga Seroja Satu, the largest containership in Malaysia thus far, made its maiden voyage Thursday morning, charting a milestone for MISC Bhd in strengthening its position as one of the leading global players in the shipping logistics. The latest vessel, which joins MISC's fleet as its 21st containership is the first of a series of two containership ordered by the company from Daewoo Shipbuilding & Marine Engineering Co Ltd (DSME) of South Korea in 2004. The second container vessel is due for delivery in February. MISC vice president (liner business) Niels Kim Balling said the addition of these vessels into its fleet is part of the company's restructuring programme of its liner business. "The restructuring programme will place MISC on a firmer footing within the Grand Alliance and in the integrated liner logistics industry," he said at a reception to mark the launching of Bunga Seroja Satu's maiden voyage at North Port Wednesday evening. The Grand Alliance consists of MISC Bhd, Hapag-Lloyd, Orient Overseas Container Lines and Nippon Yusen Kaisha. Delivered on May 3 at DSME Okpo Shipyard, South Korea, Bunga Seroja Satu has an overall length of 317.8 metre, breadth of 43.2 metre and depth of 24.5 metre, maximum deadweight of about 102,670 tonnes a top speed of 25.6 knots. With the carrying capacity of 7,943 TEU (20-ft equivalent unit), Bunga Seroja Satu is considered the largest Malaysian registered containership. The previous largest containership in Malaysia is Bunga Pelangi Dua at 4,922 TEUs which is also owned by MISC. The delivery of the Bunga Seroja Satu also marks a significant milestone in Malaysia's journey to be a leading maritime nation. With 31 crew on board, spearheaded by Kapten Mohamad Mohaiden Abdul Ghani, Bunga Seroja Satu made its way out of the North Port at about 2am on Thursday, cruising towards Jeddah, its first port of call on the 63-day journey to Europe and East Asia. The ship will also make a stop at Rotterdam, Hamburg and Southampton in Europe, while on its return journey, Bunga Seroja Satu will made a port of call starting with Singapore, Kaoshiung, Pusan, Dalian, Xingang and Qintao and back to Pusan, Shanghai, Ningbao, Xiamen and Singapore. A subsidiary of Petronas, MISC currently has a fleet of 109 vessels of which 22 are chartered-in. Its current fleet of vessels consists 21 liquefied natural gas (LNG), petroleum tankers (49), chemical tankers (18) and container ships (21). Established in 1968, MISC was listed on Bursa Malaysia in 1987, and currently standing as the second largest company in terms of market capitalisation on the main board of the stock exchange. It is the world's largest single owner operator of MNG tanker, world's second largest owner-operator of Aframax tanker fleet and the world's second largest shipping company by market capitalisation. © The New Straits Times Press (Malaysia) Berhad.

Free flow: piracy ebbs, but not cost of insurance by Vaudine England
Bangkok - Gunfire rang out in the Malacca Strait over the past month, but only four times, marring an otherwise pristine record this year in one of the world's busiest shipping lanes. In contrast to past years when dramatic battles have caused expensive losses of crew and cargo, these attacks - mostly involving small fishing trawlers - barely registered on the world piracy radar. Global piracy rose a modest 8 percent in the first quarter, to a recorded 61 attacks from 56 in the first quarter of 2005. The increase resulted largely from incidents around Somalia and Nigeria. In the Malacca Strait, no attacks were reported. "Our findings indicate that actions taken by law enforcement agencies, notably in the Malacca Strait and India, have made a major contribution to keeping these figures down," said Captain Pottengal Mukundan, director of the International Maritime Bureau. "Cooperation between Indonesia, Malaysia and Singapore is now better than ever before and has played a key role." This means that oil tankers from the Middle East and other vessels traveled safely past Singapore and northward to major East Asian markets. The Indonesian Navy earned plaudits from the maritime bureau for deploying patrol boats, warships and aircraft over the strait. Operation Gurita, which has made a show of force in known hot spots, has "yielded positive results, with numerous gangs of pirates being arrested," the bureau said. But there might be more to the story than improved law enforcement. Whenever fuel prices climb, the number of piracy attacks inevitably drops. For pirates, just like other people in business, rising costs lead to diminishing returns. Those cost increases also affect the patrolling navies, leading some to fear that the success of Indonesian surveillance might be short-lived. "At the moment, this is all a positive situation, but long-term it is unclear how long the patrols will be able to continue," the head of the maritime bureau's piracy reporting center, Noel Choong, said by phone from Kuala Lumpur. "A lot lies with Indonesia and with how long they will sustain their patrols, which do cost millions." At stake are the cost margins of the shippers, to say nothing of their lives and livelihoods. Because of its reputation for piracy, the Malacca Strait has been listed as a "war risk area" for insurance purposes by the Joint War Committee of Lloyd's. Shippers must pay thousands of dollars in premiums to ship through the strait while that listing remains. Surely the drop in piracy means the strait could be taken off the risk list? The Malaysian government thinks so and has formally asked Lloyd's to remove it. But for the moment, the designation is staying, on the belief that more time is needed to determine the sustainability of government patrols. Those who follow security issues say that is not the only worry. Although experts with ties to the insurance industry speak of piracy threats, others say the threat is being exaggerated to justify higher shipping premiums. "I'm skeptical about several aspects of all this," said Robert Karniol, Asia-Pacific editor for Jane's Defense Weekly. "Security specialists in armed forces around the region tell me that any time someone pulls a knife it's called a piracy attack. But even if you take the high estimates of piracy and go back to the highest records in recent years, and put those against the number of ship movements through the straits, it's statistically irrelevant." Piracy can never be eradicated, and the issue, Karniol said, is what level to consider acceptable. Skeptics also discount the possibility that pirates and terrorists might work together, a concern expressed by some Western governments. Such fears have helped create a threat level that has been raised frequently in recent years, providing an opportunity for regional and global powers to seek a role in the strait - something both Malaysia and Indonesia have vehemently resisted. That stance has led the two countries to undertake costly surveillance programs. How serious the threat of piracy really is, and when shippers might see cheaper insurance costs, remains a mystery on the high seas. © 2006 the International Herald Tribune.

Indonesia identifies hub ports
INDONESIA’S two busiest ports are to be accorded "direct port" status to enable them to handle cargo shipped directly without the need for transhipment. Tanjung Priok in Jakarta and Tanjung Perak in Surabaya will be operated as domestic transhipment hubs or receiving centres for cargo from the west and the east respectively. But transport minister Hatta Radjasa has admitted that massive investment will be needed if the policy is to be a success. “Facilities should be expanded first before we can begin to compete with Singapore," he said. A large share of Indonesian cargo for long-haul destinations is transhipped from Singapore. Domestic cargo volumes are expected to touch 7Mteu this year. The government has earmarked $15Bn for infrastructure development over the next three years; port company Pelindo II is planning to expand Tanjung Priok through private investors, and there are plans to expand Bojonegara port in West Java. © Lloyd's Register - Fairplay Limited 1999 - 2006.

Lloyd’s Register takes unilateral action on poor Port State Control performance
London - Lloyd’s Register has decided to take unilateral action to encourage flag states to deal with their poor port state control (PSC) performance, using the approach piloted by Cyprus which has, along with Malta, moved from the Paris Memorandum of Understanding (MOU) black list to the white list. The first administration approached under this initiative was Tuvalu, which has responded positively and has now signed an agreement with Lloyd’s Register which will see the register submit its detained ships to a stringent survey and audit regime intended to improve its current PSC record. This regime operates on a ‘three strikes and you’re out’ philosophy. Upon the first detention in a two-year period, Lloyd’s Register will verify that all items have been rectified and carry out all due surveys or a general examination of the vessel. The second time a ship is detained in the two-year period, additional audits of both the ship-based and shore-based safety management systems will be required, together with an inspection of the vessel carried out jointly by Lloyd’s Register and the administration. Upon a third detention in the two-year period, all the ship’s statutory certificates will be suspended from the date of detention and full renewal surveys, with rectification of all items, including conditions of class, will be required in order for the certificates to be re-instated. This system was piloted by Cyprus as part of its ‘improvement of the safety record of the Cyprus fleet’ initiative, adopted in June 2000 by the Cypriot Department of Merchant Shipping, in co-operation with class. "We believe that this action, undertaken jointly between the flag and ourselves, will send a strong message to disreputable owners that substandard shipping is unacceptable. Port state control statistics are a key quality metric for the industry, and if we can work with the Tuvalu Ship Register to improve its port state control performance, we believe that we will have moved towards improving safety and protecting the environment," says Bob Smart, Head of External Affairs, Lloyd’s Register. "We decided to take this unilateral action because we felt that it would be an efficient and effective way of following the good example set by Cyprus." Lloyd’s Register is seeking to extend this regime to other registers where the PSC record warrants such action and where the ship register demonstrates a willingness to improve its performance. This initiative is part of Lloyd’s Register’s objective, as part of INTERTANKO’s Poseidon Challenge to raise safety standards, to reduce class-related detentions of Lloyd’s Register-classed vessels in the Paris MOU, Tokyo MOU and USCG areas by 10% by the next publication of the 2006 annual reports of these organizations. © 2006 Seawaves Publishing Inc.

Malacca move disappoints owners
The Asian Shipowners’ Forum has once again expressed disappointment over the retention of the Strait of Malacca on the Joint War Committee’s list of enhanced risk areas for the purpose of war risk insurance. “The inclusion of the strait in the list would appear to be superfluous because many underwriters are removing or lowering their demands for additional premiums in respect of ships in the strait,” the Forum said. The statement was issued today after the organisation's 15th meeting held in Karuizawa, Japan. “Increased steps taken by littoral states to improve security are having a beneficial impact," the statement pointed out. However, the meeting urged all Asian governments to be vigilant in the fight against terrorism in the light of “increased threats” to the maritime community. Expressing concern over the emergence of “new piracy hot-spots” such as Somalia and Iraq, the Forum warned ships trading or passing through the Gulf areas to take anti-piracy measures and heed the advice of coalition forces stationed in the area. Forum members control nearly 40% of the world merchant fleet. © Lloyd's Register - Fairplay Limited 1999 - 2006

Mega deals expected in world shipping industry
Athen - The world's shipping industry is heading for consolidation and this year the sector could see several record-breaking, billion-dollar acquisitions, a leading financier to the industry said on Friday. The highly fragmented industry - in which Greek interests control about a fifth of the world's fleet - has seen a raft of new listings and acquisitions in the past two years. "Going forward in 2006, we will see some billion-dollar transactions taking place," Simon Rose, chief executive officer of boutique investment bank Dahlman Rose said in a telephone interview. "We are seeing a gradual consolidation in the shipping market," he added. "But it will be a five-year process." Earlier this month, Athens-based and US-listed Quintana Maritime acquired a 17-vessel dry-bulk fleet from private Greek shipper Metrobulk for US$735 million (US$1 = RM3.61) - one of the largest acquisitions in shipping history. Dahlman Rose, which helped arrange financing for the deal, has raised US$1.5 billion in equity for shipping companies in the past 12 months - most of that in initial public offerings. Generally strong shipping rates in the past two years - partly thanks to import demand from China's fast-growing economy - have helped lift industry profits and fuelled new interest from investors in the US and worldwide. "This year, we will see half a dozen or so shipping initial public offers and another half-a-dozen other kinds of capital-raising exercises in US markets," Rose said. "In general, we will see fewer deals to raise capital, but they will be bigger in size. In other words, fewer companies, but more dollars involved," he added. In 2005, some two dozen shipping companies listed on US markets, including Greek-controlled DryShips, Diana Shipping, Quintana, Aries Maritime and StealthGas raising US$1 billion in equity among them. "I think there has been a paucity of offerings in the US this year, but my expectation is that the number will increase," Rose said. The world's ocean-going shipping market is made up of two major segments - dry-bulk carriers and oil tankers representing about 10,000 vessels and about 700 million deadweight tonnes. But new environmental regulations on double-hulled tankers will require as much as a third of the 4,000 vessel tanker fleet to be replaced in the next four years. That will require further investment in new ships which, in turn, will lead to more equity being raised and further consolidation as only the bigger shippers will be able to raise the required finance, Rose said. "I am very positive on the tanker sector," Rose said. © The New Straits Times Press (Malaysia) Berhad.

Navies partner for Southeast Asia maritime security exercise
USS Tortuga, at sea - The fifth annual Southeast Asia Cooperation Against Terrorism (SEACAT) maritime security exercise began May 20 with the departure of a U.S. Navy task group from Okinawa. SEACAT is a weeklong at-sea exercise designed to highlight the value of information sharing and multinational coordination within a scenario that gives participating navies practical maritime interception training opportunities. With liaison officers from the navies of Brunei, Indonesia, Malaysia, the Philippines, Singapore, and Thailand aboard, the task group’s command ship USS Tortuga (LSD 46) is serving as an information fusion center, as well as a simulated suspect merchant vessel while transiting to the South China Sea. The frigate USS Crommelin (FFG 37), destroyer USS Hopper (DDG 70), the cutter USCGC Sherman (WHEC 720), and rescue and salvage ship USS Salvor (ARS 52) round out the task group. The Military Sealift Command ship MV Sgt. William R. Button (T-AK 3012) is also taking part, in the role of a suspect vessel. The participating navies will track Tortuga and Button as the ships pass through territorial waters and take the action they consider appropriate within the scenario of the exercise, including boarding the vessels. Each nation will have the ability to communicate with its liaison officer aboard Tortuga, and pass information between nations if desired. Throughout the week, the liaison officers will work with U.S. Navy counterparts to share and discuss planning considerations related to maritime interception operations. In addition to these discussions about doctrine, the liaison officers will develop maritime interception plans within the scenario. “This is a great opportunity for our junior officers to gain some new insight into the thinking of professionals from other navies,” said Capt. Al Collins, commander of the exercise task group. U.S. officers will take part in watch standing teams alongside the liaison officers throughout the scenario. “Although each Navy’s participation in the exercise is bilateral with the U.S. Navy, we’ll work as a team to analyze the situation and produce recommended solutions for the liaison officers to propose to their individual headquarters.” Collins said that any number of factors might affect a recommended action. For instance, a navy might choose to board a suspect vessel, or if assets are not immediately available, could choose to pass the information along to a neighboring country for potential action. “We’ll not be dealing in right or wrong answers,” Collins said. “To be successful, maritime security has to be a collaborative effort. SEACAT is an open forum of sorts that gives us a chance to brainstorm responses to tactical maritime interception issues.” During actual boardings of Tortuga by participating navies, U.S. Navy crew members trained in visit, board, search and seizure (VBSS) will demonstrate their techniques, while witnessing those of their counterparts. An embarked U.S. Coast Guard maritime safety and security team will provide demonstrations aboard Button. U.S. Navy maritime surveillance aircraft will also take part in the exercise. SEACAT is a model of how navies can cooperate and work together to address issues of shared concern, including transnational crimes at sea. The first SEACAT was held in 2002. Following SEACAT, the U.S. task group, under the command of Collins, who is commander of Destroyer Squadron 1, will transition into the annual Cooperation Afloat Readiness and Training (CARAT) exercise series. CARAT takes place sequentially over a period of three months with the armed forces of Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand. © Navy News Stand.

Piracy down in first four months
Lumut - Eight cases of piracy reported between January and April 2006, a decline compared to 13 cases for the same period in 2005, said the Maritime Enforcement Coordination Centre Director First Admiral Abd Hadi A. Rashid, Wednesday. "Sabah waters recorded the biggest number of cases with five, followed by Strait of Melaka (2) and the South China Sea (1)," he told reporters after handing over his post to First Admiral Mohd Rashid Harun at MECC, here Wednesday. Abd Hadi will begin his new role as the commandant of the Armed Forces College effective June 5. In comparison, he said eight piracy cases recorded in Sabah waters, three in Strait of Melaka and one each in Singapore Strait and South China Sea from January to April 2005. "The lower incidence of piracy is the testimony of the MECC's capability in ensuring the safety of the nation's maritime borders without the assistance of foreign powers. MECC also given recognition by the International Maritime Bureau," he said. MECC is planning to utilise satellite technology to monitor the position of the ships from the various enforcement agencies in Malaysia. "Through the technology, when there is a need for rapid response... we will know which agency closest to the location to be contacted to provide assistance ," he said. MECC is expected to receive the satellite tracking system, satellite telephone, high capacity computer and radio communication systems within the year through financial assistance from the Japanese government. © 2006 BERNAMA.

SEACAT fosters exchange between future naval leaders by Melinda Larson
Aboard USS Tortuga, South China Sea - Tracking three simulated suspected rogue vessels, junior officers from six Southeast Asia nations are working together to plot mock maritime interceptions during the fifth annual Southeast Asia Cooperation Against Terrorism (SEACAT) maritime security exercise, which began May 20. SEACAT is a weeklong at-sea exercise designed to highlight the value of information sharing and multinational coordination within a scenario that gives participating navies practical maritime interception training opportunities. The exercise between the U.S. Navy and the navies of Singapore, Thailand, Malaysia, Brunei, Indonesia and the Philippines offers 10 liaison officers a chance to work with their peers from neighboring countries to address maritime threats in the region. “Sharing tactics and techniques during an exercise scenario gives us all a common framework in the event of a real-life operation,” said Lt. Kirk Lee, SEACAT coordinator assigned to the staff of Destroyer Squadron 1 embarked aboard USS Tortuga (LSD 46). “SEACAT provides a forum where we can learn how to effectively exchange information and operate together.” Split into two groups of five, the officers man the combined SEACAT watch floor 24 hours a day aboard the SEACAT task group’s command ship, Tortuga. With the assistance of Lee, the teams learn how to decipher intelligence data received from a variety of sources, including each navy’s headquarters and surveillance aircraft from the U.S., Philippine and Royal Thai navies. “This exercise is important because it helps us to enhance our operations and our understanding of how the other countries work,” said Lt. Cmdr. Anuar Mohamed of the Royal Malaysian navy. “We are fighting together against terrorism, and by having this exercise, we can increase our intelligence capabilities by sharing information.” Each day, the groups brief the exercise task group commander on their progress and the day’s events, offering solutions and plans as to possible actions that should be taken against the exercise's rogue vessels. “We don’t have the monopoly on great ideas. By working together, the teams have developed excellent plans of action,” said Capt. Al Collins, commander of the SEACAT exercise task group and commander of Destroyer Squadron 1. Throughout the weeklong exercise, the officers will receive boarding tactics and techniques training from U.S. Coast Guard visit, board, search and seizure (VBSS) teams. Traveling by rigid-hulled inflatable boats (RHIB), the group is also visiting the other U.S. SEACAT task group ships. Living and working aboard a U.S. naval vessel gives the officers a slice-of-life peek at how the U.S. Navy operates. “This is my first voyage on board a U.S. Navy ship,” said Mohamed. “I’ve seen U.S. Navy ships on television and in port, but to have the real life experience is very interesting.” The future leaders of the six Southeast Asia navies are building both professional and personal relationships with newfound friends from neighboring nations that will help fortify the fight against at-sea piracy, drug smuggling, and trafficking in persons into the next decade. “We need to work with the various countries and support each other in this region,” said Republic of Singapore navy Capt. Tan Yong, who is the equivalent of a U.S. Navy lieutenant. “Regional cooperation is already in place, and when it comes to piracy in this area, we need everybody’s help. SEACAT is a good opportunity for us all to exercise together”. In addition to Tortuga, the other task group ships include the frigate USS Crommelin (FFG 37), destroyer USS Hopper (DDG 70), Coast Guard cutter USCGC Sherman (WHEC 720), and rescue and salvage ship USS Salvor (ARS 52). The Military Sealift Command ship MV Sgt. William R. Button (T-AK 3012) is also taking part, in the role of a suspect vessel. Immediately following SEACAT, the five ships will form the Cooperation Afloat Readiness and Training (CARAT) task group. Exercise CARAT will be conducted with the armed forces of the six SEACAT participating nations. Collins will also lead the CARAT task group through the three-month bilateral series of exercises. © Navy NewsStand.

Small tankers seen at most risk in Malacca Strait
Singapore - Small liquid gas or chemical tankers sailing the Malacca Strait, one of the world’s busiest shipping lanes, face the biggest risk of a terror attack, a Singapore think tank said on May 23. A paper from the Institute of Defense and Strategic Studies also said local shipping was more likely to come under attack from terrorists or pirates than mainline traffic. Concern has increased in recent years that terrorists may hit shipping, or use ships as floating bombs in the Strait, which carries some 40 percent of the world’s trade, including 80 percent of the energy supplies of Japan and China. "Relatively few actual attacks occur on large mainline through traffic vessels...For example, of the actual attacks in 2005, only two were on through traffic vessels," the report said. The International Maritime Bureau has said there were 12 piracy attacks in the Strait last year. The report called on the three littoral states -- Malaysia, Indonesia and Singapore -- to accept assistance from other countries that have offered operational assistance in the past, including Australia, China, India, Japan and the United States. Malaysia and Indonesia have been strongly opposed to any foreign military involvement in policing the strait, citing concerns over territorial sovereignty. The institute said the most common form of attack was robbery, and that local vessels were most at risk due to smaller ships and crews as well as their proximity to coastal waters away from high traffic areas. The Strait is only about three miles wide at its narrowest point. The report also concluded that there was a low probability of a high impact terrorist attack and that it had found little evidence of links between terrorists and pirates. "Due to the relative vulnerability of smaller and slower vessels, the greatest threat to a port might in fact come from a small LPG (liquefied petroleum gas) or chemical tanker rather than the larger vessels, which tend to attract the most security attention at present," the report said. © DefenseNews.com.

Thais rebuff Malacca Strait joint air patrols
Bangkok - Thailand turned down a Malaysian request on Friday to join in regional patrols of the Malacca Strait, deemed by international insurers a "war risk" zone, as too expensive, a military chief said. Thai armed forces chief General Ruengroj Mahasaranond told his Malaysian counterpart Admiral Anwar Mohamad Northat Bangkok felt distant from the strait, which links Asia with the Middle East and Europe and carries some 40 percent of the world's trade. "It is very far from us," Ruengroj told reporters after the meeting in Bangkok. "It is not worth sending our ships and planes there because the costs will be extraordinary." Malaysia, which formally established a coast guard in March, faces the biggest maritime threat of piracy on its side of the strait, through which 80 percent of the energy supplies of Japan and China are shipped. The London insurance market classed the Malacca Strait a "war risk" zone last year -- adding the sea lane to a list of 21 areas such as Iraq and Colombo deemed high risk and vulnerable to war, strikes and terrorism. © Reuters 2006.

US, Brunei talk on security ties by Kartika Rahman
Bandar Seri Begawan - US Deputy Under Secretary of Defence (DUSD), Mr Richard P Lawless, visited Brunei for two days and talked on current security policies, past involvements, future engagements, exchanges of information and aims of his visit. He came from two days of policy talks at Kota Kinabalu, Sabah, Malaysia, for the third Asean Regional Forum (ARF) meeting, where ARF members discussed security policy issues. "Brunei was -very well represented at the meeting in KK. We had a very active discussion and we talked about defence, maritime security, peace keeping. Those were the key things of that event. So we're coming from that meeting with Brunei, where Brunei participated," he said. On current issues, he said there were general discussions of the way U S develops its security policy in a Roundtable Briefing at the Ministry of Foreign Affairs and Trade, last Saturday. Minister II Pehin Lim Jock Seng met DUSD Lawless. "We shared our Quadrennial Defence Review (QDR), explained the QDR process, explained QDR documents released in February 2006, generally discussed standard security relationships between US and Brunei, and how we might find traditional ways to expand and further our relationship," he said. Brunei is interested in expanding its contribution of its regional roles. With this there was further general discussion of Brunei's role in Asean, and how the Asean organisation is becoming and sustaining its leading role within greater Asean security arrangements, he said. "We had a very good visit by His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam at the Pentagon in December 2002, and subsequently in May 2005 led by then Permanent Secretary Pehin Darn Singamanteri Col (L) Dato Paduka Hj Mohammad Yasmin bin Hj Umar, and so what we are doing is trying to sustain and expand the dialogue we have with Brunei. "We're building on the recent visit made here by US Admiral (Adm) William J Fallon. We're sustaining the tempo that the US has established with later engagements with the Asean nations." On future engagements, he said "the US plans on staying very deeply engaged in East Asia. And as we go through things like global posture review, and our QDR process review, in all these instances we are very mindful of our obligation to be actively engaged in Asia. We are mindful that many countries here in East Asia desire for US to be heavily engaged. "We look forward to seeing Brunei's representation in the IISS, in early June in Singapore. Once again expanding the tempo of discussions." The IISS gathering, known as the IISS Asia Security Summit or the Shangri-La Dialogue, is held every year in June in Singapore, with plenary sessions offer a platform for ministers and national security advisers to clarify and expand on government policy. On exchanges of information, he said: "This (the visit) allows us today to explain how we do our national security planning, it also allows us to explain our transformation of US defence forces, and equally importantly, it allows us to explain changes in our global defence posture. This relates to how we are organised around the world, including Asia. So the meetings yesterday and today allow us to explain a lot of the details of how we changed our global defence posture internationally: where we are organised, where we are based, and how we plan to operate. So that is referred to as our global defence posture review. "The changes that are to come out of that review, how we organise ourselves in Asia, defence officials and security officials, and foreign policy folks are very interested in understanding what the US is doing, and why it's doing it. "Last but not least, (this visit) allows Brunei to explain to us what it's doing in its own defence transformation. And there is a process underway here which I believe Brunei is evolving its own defence planning and its own defence structure, so we are very interested in understanding what's going on there. "What we are trying to do is show that we are determined' to expand the relationship incrementally, modestly, we want to make sure that people understand that we very much desire to sustain a relationship with Brunei," Lawless said. © Brudirect.com

US eyes growing arms sales to Asia by Jim Wolf
Washington - Asian countries are weighing billions of dollars of possible new U.S. weapons purchases, including fighter jets, warships and missile-defense systems, the general in charge of government-to-government sales says. Japan, for instance, is in the early stages of considering whether to buy maritime patrol aircraft, cargo carriers and fighters, Air Force Lt. Gen. Jeffrey Kohler told Reuters in an interview on Thursday. South Korea is "looking seriously" at acquiring more Boeing Co. F-15E fighter-bombers, he said, describing the likely growth of arms sales to Asia. The general projected $13 billion in overall U.S. sales to foreign governments this year, up from $10.6 billion last year. The U.S. goal, he added, was to help friends "get the capabilities they need." Another aim is to help friendly forces operate more smoothly with U.S. counterparts and cement ties to their militaries, through, for instance, training, maintenance and exchange programs. The projected buying spree may reflect tensions from North Korea's nuclear program, China's military buildup opposite Taiwan and al Qaeda allies operating in parts of Southeast Asia, among other situations. Another hot spot Kohler pointed to was Iran, which says it is pursuing a peaceful nuclear program. Nevertheless all of its neighbors -- including Saudi Arabia, Kuwait and the United Arab Emirates -- are in talks about missile-defense systems, including the Lockheed Martin Corp./Raytheon Co. Patriot PAC-3, he said. Kohler's agency oversees U.S. foreign military sales and financing programs as well military education and training programs for foreign officers. It is responsible for managing more than 12,000 programs, involving 189 countries and organizations, with a value of more than $220 billion. Kohler said he would travel next week to Australia, the Philippines and Thailand to reinforce military-to-military ties and advance other possible deals. In Australia, he said he may sign a contract being prepared for the supply of up to four Boeing C-17 Globemaster cargo jets valued at a total of up to $2 billion if all options are exercised. In Thailand, the United States is offering advanced F-16 Block 50/52 multi-role fighter aircraft built by Lockheed Martin in response to the Royal Thai Air Force's request for 12 new fighter aircraft. Kohler said naval and coast guard forces worldwide were showing great interest in the U.S. Navy's Littoral Combat Ship, optimized for close-to-shore missions and easy to customize. The ships are built by rival teams led by Lockheed Martin and General Dynamics Corp.. He said he expected India, as it builds warmer ties with the United States, to launch formally by early next month a potential $5 billion contract for 126 multi-role combat aircraft. The United States is offering both Boeing's F/A-18E/F Super Hornet and a version of the F-16. However, it may take India another two years to award a contract, Kohler said. The Pentagon has said it would be responsive to India's request for technology transfer and Indian co-production as part of any warplane deal. U.S. companies also have submitted bids to sell about $1 billion of maritime patrol aircraft to replace vintage Russian reconnaissance models. In January, the United States plans to transfer to India an amphibious helicopter carrier ship that Congress has designated as no longer needed by U.S. forces, Kohler said. The 37-year-old Trenton, costing India $47 million, will help "cement an already tremendous relationship between our two navies," he said. India's archrival, Pakistan, is planning to buy a mix of new and refurbished U.S. F-16s as well as carry out "mid-life updates" of the 34 it already flies, Kohler said. The F-16 upgrade program improves on-board radar and makes it possible to carry more precision-guided weapons, including Boeing's Joint Direct Attack Munitions, he said. © Reuters.

US nod for our efforts to maintain security
Kuala Lumpur - The United States is satisfied with the role played by Malaysia in maintaining security in the region. Deputy Prime Minister Datuk Seri Najib Razak said this was conveyed to him by US Pacific Fleet Commander Admiral Gary Roughead, who called on him yesterday. Najib said Malaysia’s role in keeping the peace in the Straits of Malacca, southern Philippines and Aceh was favourably mentioned during their half-hour meeting. Najib, who is also Defence Minister, said Roughead told him the United States respected the sovereignty of the littoral states along the Straits of Malacca. "The US has given an assurance that it will not do anything which would affect the littoral states’ rights and sovereignty," he said yesterday. Najib said the US armed forces would co-operate with its Malaysian counterpart in capacity-building, including sharing experience in various matters. © 2006 NST Online.

US satisfied with efforts to keep Malacca Straits safe
Kuala Lumpur - The United States is satisfied with Malaysia’s efforts in keeping the Straits of Malacca secure from threats, said Datuk Seri Najib Tun Razak. The Deputy Prime Minister said this was the view of the Commander of the US Pacific Naval Fleet Admiral Gary Roughead who paid a courtesy call on him at his office in Parliament House for 45 minutes yesterday. Najib, who is also Defence Minister, said Admiral Roughead commended Malaysia’s peacekeeping efforts in the southern Philippines and Aceh, and the Malaysian armed forces' efforts in the border region off Sabah waters to curb piracy and militant activities. “Admiral Roughead also reiterated that the US respected the sovereignty of the littoral states and their rights within the Straits of Malacca, and it had no intention of breaching the assurance,” he said. “He also offered to cooperate with Malaysia in terms of capacity building by sharing experiences with the Malaysian armed forces through seminars or courses.” Admiral Roughead has impressive credentials before he was appointed as the commander of the US Pacific fleet. He was commander of the US Second Fleet, Nato striking fleet Atlantic, and Naval Forces North Fleet East in Norfolk, Virginia. Admiral Roughead’s awards include the Defence Distinguished Service Medal, Navy Distinguished Service Medal, and Legion of Merit, Meritorious Service, Navy Commendation and Navy Achievement medals. © 1995-2005 Star Publications (Malaysia) Bhd.

Westports organising trade and logistics mission to Dubai
Kuala Lumpur - Transport Minister Datuk Seri Chan Kong Choy will lead a Trade and Logistics Opportunities Mission to Dubai on June 12 to attract investors, manufacturers and shipping liners to be a part of the Port Klang Free Zone (PKFZ). The mission, organised by Westports Malaysia and supported by the Transport Ministry, also aimed to attract these investors, manufacturers and shipping liners to participate in Malaysia's Halal initiatives in Port Klang and other parts of the country. In a statement here Monday Westports said that among the possible Halal industries that the delegation will explore are food products such as dairy, food and beverages, confectionary and culinary as well as non-food products like pharmaceuticals, herbal supplements, leather goods, and cosmetics and toiletries. Chan said that the mission also aimed to enhance bilateral trade between Malaysia and the United Arab Emirates (UAE). He said that the mission would also hold business matching programmes and this would raise the profile of Malaysian participants to foreign investors. "We intend to bring about 100 local businessmen to further enhance business collaboration between the private sectors of Malaysia and the UAE," he said in the statement. Other members of the mission include Westport executive chairman, Tan Sri G.Gnanalingam, Port Klang Authority (PKA) chairman, Datuk Yap Pian Hon, PKA general manager, Datin Paduka O.C.Phang, and PKFZ managing director, Noel Gulliver William. The recently held World Halal Forum here had paved the way for Malaysia in becoming a "Center Of Halal Excellence". "We want to help Malaysian businessmen especially Bumiputera small and medium scale enterprises (SMEs) realise the full extent of the market potential for Halal manufacturers, both food and non-food," Chan said. He said that the Dubai mission is also geared towards growing the numbers and range of Halal-certified products on offer in the global market, coming off Malaysian Centers of Halal Excellence. Exports to West Asia amounted to RM1.65 billion in March 2006, a surge of 51.7 percent from RM1.09 billion in February 2006. All the markets in this region recorded increases in exports, with the UAE, Saudi Arabia, Turkey, Yemen and Iran registering the most significant growth. Chan is expected to address about 500 prominent shipping and maritime industry leaders and private sector players from the Halal trade during the one-day mission in Dubai. Westports is also arranging for business-to-business matching to enable Malaysian businessmen especially Bumiputera SMEs to take full advantage of the gathering and to look for possible tie-ups or joint ventures with the help of Malaysia External Trade Development Corporation. The port company is also excited on the prospect of engaging more West Asian Main Line Operators to call at its port, as its current capacity is 6.0 million twenty-foot equivalent units (TEUs) and has the capacity to handle up to 10 million TEUs within the next five years. The recent surge in trade between Malaysia and West Asia is also exemplified by the strong growth of containers from West Asian Shipping Lines such as United Arab Shipping Company (UASC), Islamic Republic of Iran Shipping Line (IRISL) and Simatech Shipping (Simatech), who are all major customers of Westports. © 2006 BERNAMA.