News Flash ...


May 2007


WEEK 1 & 2 (1 - 12 May 2007)

Canada's new Government announces new regulations to protect marine environment
Ottawa - New and enhanced marine regulations will better protect Canadian waters from pollution, today announced the Honourable Lawrence Cannon, Minister of Transport, Infrastructure and Communities, and the Honourable John Baird, Minister of the Environment. "These new requirements and improvements to existing regulations demonstrate the Government of Canada's commitment to ensuring a cleaner and healthier marine environment," said Minister Cannon. "They align Canadian practices with international standards, making Canada a leader in the prevention of marine pollution." Canada now has consolidated zero tolerance national Regulations for the Prevention of Pollution from Ships and for Dangerous Chemicals. These regulations apply to all boats in all waters in Canada and will help eliminate the deliberate, negligent, or accidental discharge of pollutants from ships into the marine environment. The regulations are a compilation of existing requirements under the Canada Shipping Act, and international marine standards. They also introduce various new requirements that are necessary for Canada to conclude its adoption of all the optional provisions of the International Convention for the Prevention of Pollution from Ships and to adopt the Anti-Fouling Systems Convention. "This is a major step forward in our efforts to ensure Canadians have clean water and that our oceans and lakes are protected for the continued sustainability of our fish resources and habitats," said Minister Baird. "These new regulations complement the Government's existing stringent controls on disposal at sea under the Canadian Environmental Protection Act, 1999, and bring together tough pollution prevention measures for the marine industry covering both water and air and applying to all Canadian waterways." Key features of these regulations include:
- Requiring new oily water filtering equipment and bilge alarms to meet stricter approval standards;
- Requiring any vessel fitted with a toilet to have a holding tank or an approved marine sanitation device for the treatment of sewage;
- Adding cargo sweepings and residues from non-toxic bulk cargoes to the definition of "garbage" and specifying the requirements for record-keeping for garbage-related operations on commercial carriers;
- Requiring ships to be inspected and certified for compliance with provisions for air emissions, limiting emissions of nitrogen oxide from new diesel engines, banning the release of ozone-depleting substances, banning the burning of specified substances in ships' incinerators, and specifying the quality of fuel that can be burned by ships; and
- Banning the use of organotins in anti-fouling systems on ships, and requiring ships' anti-fouling systems to be inspected and certified.
These measures are consistent with the announcement of a new National Water Strategy in Budget 2007. The strategy includes initiatives to advance the health of the oceans and support greater water pollution prevention, surveillance and enforcement along Canada's coasts. The first notice of these regulations was published in the Canada Gazette, Part I on June 17, 2006. A 90-day consultation period followed, during which Transport Canada and Environment Canada conducted extensive deliberations across Canada and received numerous comments from stakeholders, all of which were taken into account in the finalization of these regulations. The final notice is being published in the Canada Gazette, Part II on May 16, 2007. © 2005 CNW Group Ltd.

Cargo movement body sets up regional chapter in Malaysia by Presenna Nambiar
ICHCA International Ltd has set up a Malaysia regional chapter to help improve efficiency and safety of the cargo handling activities. ICHCA International is the only dedicated non-governmental, independent, non-profit-making organisation dealing specifically with the handling of cargo movement. ICHCA International technical consultant Mike Compton said the many news letters, conferences and technical support that the organisation offers would improve the knowledge and awareness of cargo-handling issues, participate in international issues and establish and information network. It is now in 80 countries and has around 1,000 members worldwide. The organisation had its inaugural meeting in Kuala Lumpur on April 27. The Federation of Malaysian Freight Forwarders (FMFF) will act as coordinator and secretariat of the chapter. The organisation hopes to attract all players in the local transportation chain of logistics to become members, to bring awareness to all parties and service providers. The role of all players is especially important when it comes to the implementation of a new regulation. "For example, we have good reason to believe that in September this year, the International Maritime Organisation will come up with a regulation that will make it mandatory for anyone handling packaged dangerous goods to go through training on the subject," Compton said. "This kind of ruling needs a thorough understanding of the subject matter and a trouble shooting point to help solve any problems that may arise. And that is what ICHCA International is offering, a point of reference on such specialised issues," he said. © The New Straits Times Press (Malaysia) Berhad.

Chinese naval growth tied to econ security
Canberra - China's thirst for energy and quest for greater economic growth are key elements in expanding its submarine capabilities. U.S. Navy Rear Adm. James Kelly, speaking in the Australian capital of Canberra Thursday, said an incident with a Chinese submarine off Okinawa, Japan, in October put the punctuation point to that thesis. "It's a pretty good indication of the way they intend to move," he said. "We have in the past had more of an expectation that they would stay very close to their own territorial waters and not operate that much outside," he said, according to a report in The Australian. In the incident, a Chinese submarine approached a U.S. aircraft carrier battle group undetected and then surfaced. China's rapidly expanding economy, in double digits, requires fossil fuels, and that means energy imports from the Middle East and elsewhere. Protection of sea lanes for secure transport of its supplies is therefore necessary for Beijing, and a good portion of its declared level of defense spending is earmarked for continued modernization and expansion of its blue-water naval capability. China has said defense spending would grow by nearly 18 percent this year, to about $45 billion this year, but experts believe the true figure Beijing spends on its military is far higher. China is believed to have five old nuclear-powered submarines, but a new class of sub will soon go to sea. It also deploys about two dozen conventionally powered submarines best suited for operating within 1,000 miles of the country. With China's naval development, the United States and its allies in the Asia-Pacific region are pushing interoperability of their forces and operational systems. Australia and Japan recently signed a security agreement allowing for bilateral maritime security cooperation as well as increased cooperation with U.S. forces. "I think (trilateral ties) are going to grow," Kelly said. "We just opened the door on this with the Japanese because of your signing the agreement with them." © 2007 United Press International, Inc.

Cockle smugglers arrested off Perlis coast by Ahmad Fairuz Othman
Kangar - Men from the Maritime Enforcement Agency have foiled a bid to smuggle more than RM41,000 worth of cockles to Thailand. Two people in a fishing boat were arrested. Maritime District 1 Langkawi enforcement head Commander Abdul Rahim Abdullah said an enforcement team intercepted the smugglers about 2.5 nautical miles off the coast of Kuala Sungai Baru near here about 4.30am today. "They tried to speed off, but their engine broke down," Abdul Rahim said during a Press conference at the maritime enforcement agency's Kuala Perlis base. In the boat, which was heading for Thailand, were 83 sacks of cockles and cockles spats, each weighing about 50kg. Abdul Rahim said the cockles could fetch about RM500 per sack in Thailand, which is double the price in the local market. The cockles were mostly taken from Kuala Sepetang in Perak. Abdul Rahim said this is the fifth time this year that the smuggling of cockles in the northern region has been foiled. Smugglers often use sampan or small fishing boats. Abdul Rahim also said the MEA officers are on the lookout for people who tip off smugglers whenever his men go on operations. "These people position themselves near the jetty. They alert the smugglers when they see maritime enforcement boats going out to sea,” he said. "We are trying to find ways to stop them.” © 2007 NST Online.

Commando unit for marine police
Kuala Lumpur - For the first time, marine police will have its own commando unit. This crack squad, already being trained by the United States navy SEALS, will look into the security of ships plying the Straits of Malacca and off the coast of Sabah. The unit will be ready by year end. At present, 30 members of the marine police department are undergoing training in Langkawi and Kota Kinabalu. Federal marine police commander SAC II Datuk Jalaluddin Abdul Rahman said the commando unit would serve as the strike team in event of a robbery or hijacking. He said the Straits of Malacca is a busy and important passageway for ships transporting goods worth millions of ringgit daily, while the coast of Sabah was notorious for being a transit point for pirates and smugglers in the region. Currently, they had to rely on the VAT 69 commando unit if there was an emergency on the high seas. The problem, he said, was that VAT 69 members were specialised in ground operations. "Also, they are not based near the coastline. They are in Hulu Kinta, Perak. which is a distance away from the coast. We want our own SEALS team and the men are being trained in close combat, tactical assault, sharp shooting, bomb disposal and paramedics." © 2007 NST Online.

Germanischer Lloyd: KL's policies will spur our growth by Presenna Nambiar
The country's policies to ensure the growth of transshipment cargo will help the growth of Germanischer Lloyd's (GL) maritime services business here, say a top official. GL's country manager for maritime services, Saravanan Saminathan, said because of Malaysia's policy with the ports, which is perceived to be attracting a lot of transshipment cargo, the company's business will grow. "When you compare all the class societies, GL can be considered a container ship specialist and I think Malaysia is also focused on container ships." "The ports are being geared up for container shipment," Saravanan said. He said GL has experienced the highest growth among classification societies in the world because of its close link with container ships. Under its maritime services, GL surveys fleets in service as well as new buildings. The classification of ships in service involves annual inspections by classification societies to ensure it is still operating within the guidelines of its classification. While surveying a new build, it needs the involvement of a classification society like GL from the designing stage until the ship goes to sea. All ships of 500 gross tonnes and above need a classification. Saravanan said that in Malaysia, 80 per cent of GL's business comes from surveying fleet in service while 20 per cent comes from new builds. Of the surveying of fleet in service, 80 per cent are foreign ships while 20 per cent, are local. Saravanan said there is a huge market for new builds in Sabah and Sarawak, but it is mostly for tug boats. There are now 40 tug boats awaiting classification. However, he believes that from a technical point of view, the shipyards in Sabah and Sarawak, especially, are pretty much saturated. "This means they cannot really progress to build better ships or something a little bit more high technology because they don't have the expertise in house and the infrastructure within the yards," he said. Saravanan said these are private shipyards that churn out ships in a series to make a profit but don't really reinvest into the yards to enhance it. Considering this the surveying of fleet in service is expected to remain the company's maritime services core business in Malaysia. In Malaysia, one of the division's special market is with the navy as it has been asked to give full classification for four navy ships. Saravanan said the real plan is to have 27 new navy ships, so it is hopeful that it will be given the job. GL is also the only society that does classification of submarines. © The New Straits Times Press (Malaysia) Berhad.

Malaysia seeks common navaid funds
Kuala Lumur - Consensus is growing in Malaysia to get its neighbours to contribute to a common fund to replace navigational beacons and buoys that were damaged during the December 2004 tsunami, and to tackling oil spills. Malaysian Shipowners Association spokesman Anuar Hashim told Fairplay that non-governmental organisations want littoral states to fund the clean-up of oil spills. Sentiment is also growing for replacement of damaged buoys and other navigational aids, which are said still to be missing after the tsunami. The initiative is at a preliminary stage. The common fund to determine who pays for what, he added, will be referenced within the framework of UNCLOS. The fund will also be used to tackle oil spills in the Strait of Malacca by enlisting the help of all three littoral states. Fairplay understands that Malaysia’s transport ministry is "aware" of the growing concerns. The strait is one of the world’s busiest waterways. © Lloyd's Register - Fairplay Limited 1999 - 2006.

Malaysian Merchant heading for calm waters by Presenna Nambiar
Malaysian Merchant Marine Bhd hopes to break even or make marginal profits towards the end of the financial year ending August 31 2008. Newly-appointed Malaysian Merchant Marine group chief executive officer Ravindrasingham Balasingham, said plans were underway to steer the company into calm waters by concentrating on operations rather than being owner-operator of vessels. He said rather than becoming owners of vessels, which would need high capital investments, the company is looking at increasing its tonnage by chartering in vessels and by joint ventures. "I'm not saying we are not going to acquire, we have a new vessel coming in September, and we are actively looking to acquire but how we do that acquisition is the key here," Ravindrasingham said. He said instead of buying vessels and then looking for jobs, Malaysian Merchant would make sure that it has secured contracts before any new purchases are made. In January this year, Malaysian Rating Corp Bhd downgraded the ratings of Malaysian Merchant's Islamic bonds because they could foresee problems with the company's business plan to expand its fleet by acquisition of ships. As at the end of the last financial year in august 2006, Malaysian Merchant had 49,000 dead weight tonnes (dwt), today the company has 206,000 dwt. Currently Malaysian Merchant owns five vessels, and three are chartered-in vessels. There are plans to sell another two to three vessels to rid the company of ailing ships and to comply with International Maritime Organisation requirements. He said any future purchase of vessels would be new builds or second-hand vessels which are not more than five years old. The move is to ensure that the company will not be bogged down by problems it had experienced last year. Malaysian Merchant recorded huge losses last year as the ailing condition of its ships chalked up unscheduled maintenance and dry docking costs which were written off last year. Malaysian Merchant registered a net loss of RM146.93 million for the financial year ended August 31 2006. Ravindrasingham said the company would maintain its focus on transporting both dry and wet cargo. He is also eyeing regional expansion. He said Malaysian Merchant will not hesitate to close down any existing overseas operations that is not making money, but will continue to work towards getting into new countries with high growth potential. © The New Straits Times Press (Malaysia) Berhad.

PM confirms govt nod for trans-peninsula pipeline by Zuraimi Abdullah and Kamarul Yunus
Datuk Seri Abdullah Ahmad Badawi said the Government has agreed to a multi-billion- ringgit project to build a trans-peninsula oil pipeline from Kedah to Kelantan. "Yes, we have agreed (to the project)," the Prime Minister told reporters after launching the World Halal Forum in Kuala Lumpur yesterday. Abdullah was asked to comment on a Business Times report that a private firm had been given the nod to undertake the project. He did not identify the company awarded the project, but said: "I will announce finer details (of the project) later." Abdullah said the project is part of the Government's blueprint to boost economic development of the northern and eastern states. Business Times reported on Monday that Trans-Peninsula Petroleum Sdn Bhd (TPP) would spend US$7 billion (RM23.9 billion) over eight years to build a crude oil pipeline to help ships bypass the busy Straits of Malacca. Tankers carrying Middle East oil to Japan and China, Asia's largest oil importers, currently must pass through the Malacca and Singapore straits that separate Malaysia from Indonesia. The pipeline may make energy supplies less vulnerable to congestion in the waterways. TPP chairman Rahim Kamil Sulaiman said the 300km pipeline would cross three states at the top of Peninsular Malaysia, linking Yan in Kedah to Bachok in Kelantan. The first phase is expected to cost US$2 billion (RM6.8 billion), rising to US$4.5 billion (RM15.4 billion) and US$7 billion upon completion of the second and third phases respectively. TPP plans to invite investors to participate in the project, including key oil producers from the Middle East, Islamic funds and major East Asian consumers. Rahim, when contacted yesterday, said TPP plans to finance the first phase of the project through equity and project financing. He said the company and participating foreign investors will help raise some US$400 million (RM1.37 billion) for the first phase, which is expected to be completed in three years. "One-quarter of the financing of the project will be raised through equity. The rest will be funded through project financing such as syndicated loans, both internationally and locally," he told Business Times. By the second phase, the project would have generated income that can be used for its business expansion plan, he added. Rahim also reiterated that the project has no connection to the proposed refineries to be built by SKS Development Sdn Bhd, a company owned by Tan Sri Syed Mokhtar Al-Bukhary and Merapuh Sdn Bhd. © The New Straits Times Press (Malaysia) Berhad.

Petronas, Gasunie draw up Dutch plan
Kuala umpur - Malaysia’s state-owned oil and natural gas company Petronas has signed an MoU with Dutch gas infrastructure company Nederlandse Gasunie to “explore the possibilities for collaboration in the fields of gas and related infrastructure projects in the Netherlands”. The agreement, which was signed at the LNG15 summit in Barcelona, will see the exchange of know-how and expertise between the companies. A Petronas spokesman hinted that the agreement with Gasunie could include a regasification terminal in the Netherlands. The Malaysian firm is currently developing a regasification terminal at the UK port of Milford Haven along with Britain’s BG Group. The terminal is scheduled to be ready to receive gas by the end of the year. © Lloyd's Register - Fairplay Limited 1999 - 2006.

Piracy attacks in Malacca Straits down significantly: Teo Chee Hean by Wong Mun Wai & S. Ramesh
Singapore - Singapore's Defence Minister Teo Chee Hean says the number of piracy attacks in the Malacca Straits has fallen significantly. He said that according to one report, there were just two incidents in the first quarter of this year, one of the lowest in ten years. Mr Teo was speaking at the Republic of Singapore Navy (RSN)'s 40th anniversary celebrations and the commissioning of its frigate, RSS Formidable. He noted that patrols of the Malacca Straits launched by Indonesia, Malaysia and Singapore as well as the "Eyes in the Sky" maritime air patrols have enhanced regional maritime security. These efforts have also led to the removal of the Malacca Straits from the Lloyd's Joint War Committee's list. Mr Teo said 50 percent of global oil shipments pass through the strait every year, underlining the strategic importance of the sea lines. Singapore would continue to play its part in helping to ensure that the sea lines of communication remain open, he said. To do this, the Defence Minister stressed that Singapore must have a strong and capable navy. © 2007 MCN International Pte Ltd.

Pirates not having it all their own way on the world's high seas by Richard Halloran
Amid all the gloom and doom in the news coming out of Iraq and Afghanistan, the anxiety over the nuclear ambitions of North Korea and Iran, and the struggle in the war on terror, comes a ray of sunlight: Piracy is down in Southeast and South Asia. The International Maritime Bureau in Kuala Lumpur, Malaysia, says in a fresh report that the number of pirate attacks in Asia plunged to 17 in the first quarter of this year from 68 in the comparable period last year. The bureau, which tracks pirate assaults around the globe, also reported a worldwide downward slide to 239 attacks last year from 445 in 2003. The threat of economic disruption due to trouble in the Straits of Malacca and the South China Sea, through which move more ships each year than through the Panama and Suez Canals combined, has diminished. Much of the imported oil in Japan, China, and other Asian economies, for instance, is shipped through those waters. Equally important, the possibility of a potentially devastating lash-up between pirates and terrorists in that part of the world has lessened."Our greatest fears are the possible nexus between terrorists and weapons of mass destruction and the use of a large commercial vessel as a weapon," retired Admiral Thomas Fargo said in 2005. The former commander of US forces in the Pacific told a conference on maritime security in Honolulu: "Armed with these weapons, undeterrable, unaccountable enemies could inflict enormous damage without warning. If pirates or sea robbers can board a ship, what is achievable by a trained terrorist willing to give up his life?" On terror in Southeast Asia, the State Department last week expressed guarded optimism in a report saying: "The Jemaah Islamiya regional terrorist network remained a serious threat to Western and regional interests, particularly in Indonesia and the Southern Philippines, although its capabilities were degraded due in large part to regional counterterrorism successes in 2005-2006." The International Maritime Bureau attributed the drop in piracy to ship masters and crews "taking more precautions during their transits through the hot spot areas." The bureau said that ship owners had adopted "more stringent rules and regulations for their ships." The report was not specific but presumably countermeasures included more lookouts and perhaps armed guards. The bureau noted: "The increase in cooperation between governments and local law enforcement agencies has proved to be successful in curbing the enthusiasm of the pirates." Admiral Fargo and his successor, Admiral William Fallon, had urged Indonesia, Malaysia, Singapore, and other nations to police their own and international waters in that region. A spokesman for the Pacific Command, which controls US military operations in Southeast Asia, agreed with the bureau. "The continued coordination and cooperation within and between nations is probably the biggest contributor to the positive trend," the spokesman said. The command has fostered "dialogue with the nations in the region by providing ideas to enhance coordination," he said. An obstacle to cooperation has been the legacy of anti-colonialism. Asian nations, having rid themselves of Western colonial rulers have been reluctant to engage in operations that might seem to infringe on their sovereignty, such as allowing ships of a neighboring nation enter their waters in hot pursuit on police missions. Malaysian Defense Minister Datuk Seri Najib Tun Razak, was quoted in the report as pointing to more coordination between his nation, Singapore and Indonesia. "The formation of the Malaysian Maritime Enforcement Agency and the increase in coordinated patrols among the authorities of the littoral states has proved most effective in securing the straits." he said. At a naval base in Singapore, the government is building the Changi Command and Control Center, to be operational in 2009 to coordinate operations against pirates and terrorists. "The trans-boundary nature of maritime crime and terrorism," Singaporean Defense Minister Teo Chee Hean said, "coupled with the limited resources of states, demand that security and enforcement agencies, port authorities and shipping associations, come together to cooperate." The International Maritime Bureau, however, injected two notes of caution. Every attempt at piracy may not be reported and thus it may be worse than calculated. Moreover, the downturn "should not induce complacency." Vigilance, the bureau said, has always been the best defense. As if on cue after the bureau report was published, four pirates boarded a chemical tanker at anchor in the Singapore Straits. The armed robbers broke into the engine room, stole valuable spare parts, and escaped. [Richard Halloran is a writer based in Hawaii]. © 1999-2007 The Taipei Times.

Ports must strategise by Sharidan M. Ali
Ports must not make unnecessary investments just to cater to the increasing ship size, according to Malaysian International Chamber of Commerce of Commerce and Industry executive director Stewart J. Forbes. Ship owners are keen to build larger vessels to achieve higher eco- nomies of scale. The world's lar- gest container ship, the Emma Maersk, with capacity of 11,000 TEUs (20-ft equivalent units), began its maiden voyage in September last year. Perhaps in another 10 years or less, the much anticipated 18,000-TEU Post-Suez-max or Post-Malacca-max ships will be launched. To accommodate vessels of such size, ports are catching up through dredging projects, expansion of wharves, acquisition of cranes and acquisition of yard facilities. Forbes argued that ports must not jump onto the bandwagon and do unnecessary expansion as the ships might still not call at their ports. “One of the first container ships brought to Malaysia was a 3, 000-TEU vessel with a crew of 35 to 40. But now, the Emma Maersk can be manned by only 13 crewmen. “Thus the cost of moving these containers can be dramatically lowered with bigger capacity ships,” he said. He noted that there were already 150 ships of more than 8, 000 TEUs in the sea trade. However, he said, the idea of welcoming a Post Malacca-max of 18, 000 TEUs and 21-metre draft could be impeded by geographical limitations. “Perhaps by 2020, there will be vessels of such size that cannot go through the Straits of Malacca. So ports must strategise and not put all their eggs in one basket,” he said. Citing Northport (M) Bhd as an example, he said the port did not only focus on catering to bigger vessels but also developed other businesses like the distripark, halal hub, conventional cargo and trades with smaller vessels for regional distribution. “New quay cranes, expansion of container yard and dredging are expensive, but it is up to the individual port to decide,” he said. According to Arthur D. Little Malaysia senior adviser Antonie Versluis, what determines the size of new buildings is the type and trend of facilitation (facilities and special treatment) in a particular trade at the ports. “To hub vessels of more than 10, 000 TEUs, a port most likely has to handle 4, 000 to 5, 000 TEUs on and off the carrier at that particular location. “A port operator has to change the yard system entirely and it is hard to manage that amount of TEUs at any one time efficiently. “Personally, I do not know who is ready to do that, but there are ports dominated by Maersk that are actually catering to these ultra-size ships,” he said, adding that currently, most of the ultra-size vessels were ordered by the Danish shipping line. Versluis concluded that it remained a mystery whether this was going to be a continuing trend. Nevertheless, he warned that the rush to build ultra-size ships could end up being a fatal mistake, as seen with the crude oil tankers. At one point, crude oil tankers reached to 500, 000 deadweight tonnes (dwt) in capacity, but today there is not a single tanker exceeding 350,000 dwt in the ocean. Another factor limiting the growth of container ship size, said Baltic Maritime Adviser president Prof Hans J.F. Peters, was the container itself. “We have to consider the stacking capacity, as the bottom containers can be crushed if the upper ones are too heavy. To avoid this, ships must grow wider and longer or the containers must be redesigned. “This is not likely to happen as it will be very costly and certain shipping lanes can only accommodate up to a particular size of vessel,” he explained. The size of quay cranes would also have to be modified to get a wider outreach, and this would not be cost-effective, he said. The largest crane now is the super post-Panamax quay cranes, which have a 22-box outreach capacity. Before any expansion plan is made, ports must consider their geographical limitations, trade routes, investment capacity, cost-benefit analysis and multi-faceted ports services. © 1995-2005 Star Publications (Malaysia) Bhd.

RI Navy Chief warns of potential dangers in Malacca Strait
Jakarta - Indonesian Navy Chief of Staff Admiral Slamet Soebijanto said although the maritime crime rate in the Malacca Strait had been reduced to a minimum, there was a need for vigilance over potential dangers. "Although the rate of maritime crimes such as piracy in the world's busiest strait has been reduced significantly, we have to remain vigilant over potential dangers there," Slamet said on the sidelines of a seninar on the strategy to overcome non-traditional threats and maritime terrorism on Wednesday. He said coordinated patrols conducted by Indonesia, Malaysia, and Singapore as well as security patrols by the Indonesian Navy in the Malacca Strait had led to a sharp drop in the crime rate in the strait. Slamet said the secure conditions that prevailed in the strait should be maintained and improved as optimally as possible. "Anyway, many countries have a stake in the Malacca Strait and use it as the shipping lane of their political and economic activities. Therefore, we should remain alert to the possibility of danger there," Slamet said. (ANTARA). © 2007 The Jakarta Post.

RM23.9bil pipeline project to involve three northern states
Kuala Lumpur - Malaysia has agreed to build the US$7bil (RM23.9bil) crude oil pipeline from Kedah to Kelantan. Prime Minister Datuk Seri Abdullah Ahmad Badawi said the project would be part of development for the Northern and Eastern Corridors. “We have always wanted more development for that area,” he told reporters yesterday, when asked about press reports that Malaysian petroleum transporter Trans-Peninsula Petroleum Sdn Bhd planned to invest US$7bil over eight years on the 300km pipeline across three northern states. According to the reports, the project will involve the construction of two oil refineries with the pipeline crossing three states linking Yan in Kedah to Bachok in Kelantan. The pipeline, which will enable ships to bypass the Straits of Malacca, will include an import facility on the west coast for oil coming from the Middle East and Africa and a re-export facility on the east coast for oil heading for East Asia. On Terengganu airport's closure due to faulty runway lights, Abdullah attributed it to the “lack of maintenance culture” in the country. “What else? I have spoken about it until kering tekak (my voice is hoarse),” he said after opening the World Halal Forum 2007 here yesterday. On what should be done, he said: “We have to make sure those responsible for maintenance perform well, or it will not be in the interest of their careers as they fail in their responsibility.” Recently, three new buildings in Malaysia were found to have significant defects. The first was the Immigration Department in Putrajaya where operations came to a standstill when a pipe burst, the second was the Entrepreneurial Development and Co-operative Ministry where chunks of a ceiling fell off and the third was the new Courts Complex in Jalan Duta where parts of the ceiling fell. On Saturday, the Prime Minister noticed water marks on the ceiling of an indoor stadium at the Bukit Jalil Sports Complex. He feared it would become a hole if the problem was not taken care of. © 1995-2005 Star Publications (Malaysia) Bhd.

Saving ocean reefs - it's as easy as picking up shoes by Prodita Sabarini
Under the blue sky and scorching sun on one of Kepulauan Seribu's islands, a boy dipped his feet to the water and recovered a discarded potato chip packet."Look what I've found," Jason Tamsil, 13, said to fellow members of the beach clean-up team. He disposed of it in a black plastic bag carried by one of his fellow team members. Not too far away, another team member collected various shoes ranging from flip-flops, sneakers -- even ladies shoes. On another part of the beach, a second group found underwear and a broken toilet seat. The clean-up groups are part of a team of 46 people, including 11 divers, who had traveled from Jakarta to Pramuka Island, 45 kilometers north of Jakarta, for a weekend of cleaning up beaches. The teams are part the Everyday is Earth Day event put together by a non-profit local diving community called Forum Selam, in conjunction with Earth Day on April 22. While children combed the beach for rubbish, divers participating in the event plunged into waters scattered with sea porcupine. Amid the hazardous underwater mines, they collected huge amounts of garbage with the potential to seriously damage coral reefs. Forum Selam member and organizer of the event Meliana Salim told The Jakarta Post she had been inspired by an organization in San Fransisco called The Coral Reef Alliance (CORAL) and their Dive in to Earth Day. "The alliance organizes events for people who enjoy diving to help clean up the ocean -- and I think that's a brilliant idea," she said. In the lead up to Earth Day, the non-profit organization dedicated to keeping coral reefs alive, promoted the event widely. Volunteers from more than 70 countries and territories participated in protecting local aquatic environments by planning beach clean ups, underwater clean ups, educational workshops and fish and reef surveys. On its website, www.coralreefalliance.org, the group said, "In their modern form, coral reefs have thrived on earth for more than 50 million years. In recent years, however, more than 20 per cent of the world's reefs have been lost and 50 percent of remaining reefs are in jeopardy of collapsing if we do not take action now." Coral reefs in Indonesian waters are in an alarming state because of potential threats from coastal developments, marine pollution, over-exploitation of marine resources and inland pollution, said the World Resource Institute via their website (www.pubs.wri.org). The weekend beach and sea clean-up program, although not exactly in line with Earth Day, was linked with a worldwide commemoration of the day. "After all, it doesn't need a particular time of year to clean up our beach and sea," Meliana said. Tadjus Taslim, a road contractor, brought two of his children to participate in the event. "I think it's important to educate children at an early age about the importance of taking care of nature," he said. "Indonesia has lots of beautiful natural tourist sites. "But the downside is they're usually dirty. "It's good to bring children here to learn to love nature in an entertaining way," he said. Pramuka Island is one of 110 islands in Kepulauan Seribu. Some 20,000 people live on 11 of the islands, including Pramuka Island. According to Marudin Boko, head of a community-based conservation area, 75 percent of inhabitants make their living from fishing. More than 40 islands in Kepulauan Seribu have been declared part of Kepulauan Seribu National Sea Park. Diver Eva Sobartini said she found lots of garbage under water. "Most of the rubbish is made up of plastic bottles, noodles wraps, plastic bags, tin cans and sandals," she said. Forum Selam member and leader of the dive Ronald Soefajin said they collected seven sacks of garbage in a one hour dive. Eva was so enthusiastic in her search for underwater trash, she brushed her thigh on sea porcupine thorns and was stung by jellyfish. "These are souvenirs to bring home," she said pointing the scars. According to most divers, the condition of the coral reefs are in bad shape. Prastowo of The Indonesian Coral Reef Foundation (TERANGI) said Indonesia has the most diverse species of coral reefs in the world, but that 70 percent of Indonesia's reefs were in bad shape. "Mostly the coral reefs in the western part of Indonesia are in bad shape," he said. In Kepulauan Seribu, fishermen would fish using bombs and potassium cyanide. In the last five years, however, and after being exposed to educational campaigns, fishermen have shifted their destructive ways toward more eco-friendly practices. Prastowo also said coral transplantation had been carried out on the Islands. "However, there's still a long way to go before we can improve the condition of coral reefs." Prastowo also said the presence of garbage was endangering the coral reefs. "Especially any garbage made of plastic," he said. "If plastic covers the coral reefs then it can't grow or develop and it will die." After the dive, Prastowo gave a presentation on how to save the ocean's ecosystem. "It takes around 250 years for plastic wraps to degrade," he said. "For sandals and shoes it takes around 450 years. "So for those of you who collected plastic and shoes from underwater -- you have done a great deal for the ocean," he said. A knowing smile flicked on all the participants' faces, making way for them to start the barbecue party. © 2007 The Jakarta Post.

Singapore Navy receives its first frigate, RSS Formidable by Wong Wai Mun
Singapore - The Republic of Singapore Navy received its first frigate – the RSS Formidable – on Saturday at Changi Naval Base during celebrations to mark its 40th anniversary, attended by past and present Navy Chiefs. And Defence Minister Teo Chee Hean said Singapore continues to need a capable navy to help it do its part in keeping trade routes open. Half of the world's oil shipments pass through the Malacca Straits every year. Energy-hungry China and economically developed Japan have half or more than half of their oil imports brought through the Straits. And trade across the Pacific, between Asia and Latin America, is another area of burgeoning growth. Mr Teo said: "This underlines the strategic importance of the Strait. With the world's oil needs projected to increase by almost 50 percent by 2030, we can expect the volume of oil carried by sea to increase. "The sea will remain the most cost-effective way to bring the increasing quantities of food, resources and finished goods that the markets demand." Minister Teo said regional cooperation between Singapore, Malaysia and Indonesia in the Malacca Straits, such as coordinated sea patrols launched in 2004 and maritime air patrols launched last year, have enhanced regional maritime security. For example, in the first quarter of this year, pirate attacks in the Straits have dropped to a ten-year low. So Singapore will continue to work with other partners to address the challenges of maritime security. To do this, he said Singapore must have a strong and capable Navy. And to keep the Navy's capability at the premium end, it has received its first frigate, the RSS Formidable. The ship is the first of a fleet of six frigates coming into service over the next two years. Onboard naval helicopters, the Seahawks, are due in three years, and a new class of submarines is expected by the end of the decade. The goal is to defend Singapore and to help sea lines of communication stay open. The RSS Formidable's naval helicopter, for example, will allow her to conduct stand-off surveillance and prosecution of hostile ships and submarines. The modern sensors and weapons on the frigates will also provide surveillance and combat capabilities over a wide area, including a zone of influence in the air that spans hundreds of kilometres. Mr Teo said the frigates would play a key role in the integrated 3rd Generation SAF. © 2007 MCN International Pte Ltd.

Trans-Peninsula plans massive investment by Kamarul Yunus
Trans-Peninsula Petroleum Sdn Bhd (TPP) plans to invest a whopping US$7 billion (RM23.9 billion) over eight years to build a crude oil pipeline that will help ships bypass the Straits of Malacca, its chief said. The 300km pipeline will cross three states at the top of Peninsular Malaysia, linking Yan in Kedah to Bachok in Kelantan. Storage tanks will also be built. "The initial phase of two million barrels of oil per day (bpd) is expected to cost about US$2 billion (RM6.8 billion), and the investment will increase to US$4.5 billion (RM15.4 billion) and US$7 billion upon completion of the second and third phases of the project, respectively. "Investors will also be invited, among them the key oil producers of the Middle East, Islamic funds and major consumers in East Asia," TPP chairman Rahim Kamil Sulaiman told Business Times in an interview. The project will help ease congestion in the busy strait as well as improve the security of supply. Also, it could boost the economies of the three states and have positive spillover effects for violence- ridden southern Thailand. However, Rahim clarified that the pipeline project is not part of the refinery project proposed by SKS Development Sdn Bhd, a company owned by businessman Tan Sri Syed Mokhtar Al-Bukhary. "There is no connection at all (with SKS Development) in terms of equity or contract relationship at the moment," Rahim said. Earlier reports said that SKS Development would build a refinery in Yan and another in Bachok, with a pipeline linking the two refineries. Rahim explained that the projects - two refineries and a pipeline - are the three components of the dedicated Yan Petroleum Industry Zone promoted by the Kedah State Government. "However, the three are all different and separate projects and the three companies submitted different plans to the state and Federal Government. Ours is strictly on the pipeline and storage tanks, not refineries," he said. TPP, which now transports crude and refined petroleum products, was set up by Rahim and company director Syed Izhar Al-Idrus, both former executives of Petroliam Nasional Bhd with 30 years of experience in the oil and gas industry. The firm made their pitch to the National Economic Action Council in December 2005. On November 28 last year, the Cabinet Committee on Investment, chaired by Deputy Prime Minister Datuk Seri Najib Razak, approved the proposed plan, Rahim said. The National Council on Physical Planning, chaired by Prime Minister Datuk Seri Abdullah Ahmad Badawi, met on December 15 last year to approve the pipe's route and storage sites. Rahim said the three state governments support the project. TPP has roped in an Indonesian engineering company and a Bumiputera listed company to be its strategic partners. "We will sign a strategic alliance agreement by the end of this month with the Indonesian company, PT Tripatra Engineers and Constructor, and the listed local company, which we do not want to disclose at the moment." Rahim also provided a picture of how the project would work. The pipeline begins with an import facility on the west coast and a re-export facility on the east coast for oil coming in from the Middle East and Africa and headed for East Asia. To accommodate very large crude carriers, which require a minimum depth of 25 metres, a mooring point offshore Yan will be built. On the east coast, oil tankers will pick up oil offshore Bachok for shipment to East Asia. This will be piped from a secure reserve storage facility in the highlands of Jeli in Kelantan. There will be three storage tanks to be located in Yan, Jeli and Bachok. The initial storage capacity of the pipeline will be around 60 million barrels of oil. This will be upgraded later to serve as the regional strategic reserve of the East Asian countries, especially China, Japan and South Korea. After six to eight years of operation, storage capacity will be upgraded to a minimum of 180 million barrels of oil, which is equivalent to 30 days of imports and six million barrels per day throughput. © The New Straits Times Press (Malaysia) Berhad.

Value-added, efficient services by Shahridan M. Ali
Instead of harping on the issue of low freight rates, the local maritime sector should put extra focus on improving efficiency and introducing value-added services. United Arab Shipping Agency Co Malaysia Sdn Bhd country general manager Desmond Yong said although Malaysia's freight rate was one of the lowest in the region, it was only one of the few factors that could attract shipping lines to the ports. “As Port Klang is traditionally a space top up and containers positioning hub for shipping lines, it is also important for us to have a strong transhipment network which can build Port Klang into South-East Asia's transhipment hub,” he said. “Transhipment, cargo consolidation and value-adding activities can increase export and import volume. “We should also concentrate on attracting more shipping lines to locate their regional offices in Malaysia. That will strengthen Port Klang's position as a hub port.” Yong also said government agencies and key industry players' performance in terms of effective policies and operational efficiency should be benchmarked against their counterparts in hubs like Singapore and Hong Kong. He added that local exporters must focus more on efficiency, innovation, quality, value-added services and branding instead of low costs. “Malaysia is already on its way to being recognised as a hub for shipping lines for top up and positioning,” he said. “But we must quickly build upon other key factors which could attract more shipping lines and feeder operators.” Barwil Unitor Ships Service Malaysia managing director Winston W.F. Loo said Malaysian freight rates were competitive compared with neighbouring countries. “As far as direct callers are concerned, the rates, on average, are quite attractive. “Of course, there are lines that charge rates which are slightly higher out of Singapore by 2% to 3%, but I believe that is negligible. “Compared with China, our rates here are lower by 6% to 12%,” he said. According to Loo, Malaysia should look at Singapore and learn how to achieve a high level of efficiency and productivity and not be bogged down with trivial issues such as freight rates. “This is because we have local cargo produced right here in our own country and Singapore does not. The main issue which we need to address is how to ensure that more and more of our cargo are routed via our own ports,” he said. He added that high volumes of cargo, competitive pricing by terminals, other landside activities and high productivity levels were factors that attracted shipping lines to ports. Maritime Institute of Malaysia research fellow Nazery Khalid said the decision by shipping lines to call at ports was based on various factors involving economics, trade, ports, shipping, and geo-strategic and even political reasons. It does not solely depend on freight rates. “Nevertheless, freight rates cannot be divorced from these elements but are influenced by them. “Profit projection, risk assessment, cargo space onboard ships, frequency of ship calls, intensity of competition, and bullishness and bearishness on trade and economic prospects are all vital in the determination of freight rates,” he said. Currently, according to Nazery, there is a shortage of space for Malaysian hinterland cargo as local tonnage is not sufficient for local trades (short-haul trips). “The fact that MISC does not have sufficient tonnage to operate on its own in the major trade routes and has to rely on space-sharing alliance reflects this situation. In addition, local ship owners prefer long hauls in mainline trades as they are more profitable. “These contribute to the shortage of space in short-haul trades, for example to Asean countries, and hence the high freight rates. “Our rates are generally lower than some neighbouring nations, but are higher for certain trades. No doubt shippers want low rates, but over and above, they also want good service from shipping lines,” he said. © 1995-2005 Star Publications (Malaysia) Bhd.

Week 3 (13 - 19 May 2007)

Asia-Pacific navies launch joint exercises
Singapore - Navies from around the Asia-Pacific region began a series of exercises in Singapore on Wednesday to enhance cooperation as sea security takes on increased importance, defence officials said. Eighteen warships from countries belonging to the Western Pacific Naval Symposium (WPNS) are participating in the exercises, Singapore’s defence ministry said in a statement. After dealing with “realistic maritime security scenarios” using shore-based simulators, the navies will stage exercises in the South China Sea on Saturday and Sunday, the ministry said. The drills will involve small boat patrols, search-and-rescue and missile firing, The Straits Times quoted Senior Captain Li Xiaoyan, commander of the Chinese frigate Plan Xiangfan, as saying. Helicopters and maritime patrol aircraft will also take part, Singapore’s defence ministry said. Opening the exercises, Singapore’s defence chief Major General Desmond Kuek said Southeast Asia would become increasingly important to the maritime transport of trade and energy resources. The Straits of Malacca and Singapore already carry more than 30 percent of the world’s trade and half of its oil, he said. “Any disruptions to the maritime traffic traversing these vital sea lanes will have an economic and strategic impact far beyond this region,” Kuek said. Australia, the United States, Indonesia, Singapore are among the members of the WPNS, established in 1988 as a forum to discuss cooperation. Canada, India and four other countries have observer status. “The exercise represents an important avenue for WPNS navies to enhance their interoperability,” Singapore’s defence ministry said. © Daily Times (Pakistan).

Asia to spend over US$108b for regional maritime security by Hoe Yeen Nie
Singapore - Asian countries are expected to spend about US$108 billion beefing up their navies over the next ten years, placing the region ahead of the United States and Britain. But industry watchers at the 6th International Maritime Defence Exhibition and Conference (IMDEX Asia 2007) said rather than leading to an arms race, the increase in spending will be an overall boost to regional maritime security. Naval industries are set to benefit from the buying spree. Analyst Pietr Lindahl estimated there would be twice as many amphibious vessels built in Asia than in any other part of the world. He said: "After the tsunami, it became very evident that there was a real lack in capability in amphibious missions here. The tsunami demonstrated that it was much harder for countries in this region to provide on their own - humanitarian relief, evacuation relief, fresh water and medical supplies to people stricken from the tsunami." Analysts at IMDEX Asia agreed the naval build-up would do much for regional maritime security. Frigates, like the ones recently purchased by the Singapore Navy, account for a quarter of the purchases, and will help Asian countries plug the existing gap in capability shortfalls. Roger Marriott, Managing Director, IMDEX Asia 2007, said: "All the expansion taking place in the navies in this region are the perception of governance – what they need to preserve their sovereignty and to protect their assets, economic zones." But analysts said even with countries like China, India and Japan leading the buying spree, a regional arms race is unlikely. Mr Lindahl said: "Most of the vessels that are being built are not so much to use for intimidation purposes, but more as protection of high-value assets such as oil reserves and natural gas fields." And with nearly half of the naval contracts still available, industry watchers said Asian naval industries, such as Singapore's, will certainly benefit. Keith Smith, Regional Director, Defence Export Services Organisation, UK, said: "There are some really, really first-class ship-building capabilities in the Far East – Japan, Korea and also here in Singapore. "And I can see how some of these technologies can dovetail very well with some of the cutting-edge technologies in Europe to provide overall integrated solutions." Britain, for instance, has said it welcomes Asian industries to bid for contracts worth nearly half of its annual procurement budget of US$17 billion. © 2007 MCN International Pte Ltd.

Asian ports still open to terror by Alan Boyd
Sydney - Cracks have emerged in the security shield being erected around Asian deepsea ports as evidence emerges that extremist organizations may be planning terrorist attacks on terminals and exposed container ships. Five years of overhauling lax security have equipped only a small number of ports to detect potential threats, with the majority failing to enforce even rudimentary background checks on personnel or limit access to terminal facilities. The authoritative Israeli-based Institute for Counter-Terrorism (ICT) has warned that al-Qaeda has a real capability of attacking maritime targets in Asia and identified ports as their soft underbelly. "They appear to have stayed at least one step ahead of the security services invoked thus far by modifying their recruitment and the organizational structure," noted researcher Akiva Lorenz. "It is only a matter of time until al-Qaeda once more will succeed in attacking the West. Maritime terrorism is positioned to be their method of choice." Jemaah Islamiyah and the Abu Sayyaf Group, two Southeast Asian terrorist groups with close links to al-Qaeda, are known to have developed maritime capabilities, as has Sri Lanka's Liberation Tigers of Tamil Eelam. Much of the expertise acquired by Abu Sayyaf and Jemaah Islamiyah is believed to have been passed on by al-Qaeda's maritime-operations commander Abdul al-Rahim al-Nashiri before his capture in Aden in November 2002. Nashiri conceived the idea of using small craft packed with explosives to target US warships and was the mastermind of a suicide attack on the USS Cole in Aden in October 2000 that killed 17 American servicemen and injured another 37. The attack on the Cole, which was berthed in port while refueling, showed that vessels are largely defenseless to this type of threat, while intelligence services discovered they were facing an increasingly dispersed enemy. Devised at a safe house in Aden, the raid involved two operatives from Saudi Arabia who were briefed in Pakistan and given their final orders in Bangkok, where they also reportedly received about US$36,000 in financing. Osama bin Laden would later commemorate the bombing of the USS Cole with a morbid poem at his son's wedding:

A destroyer: even the brave fear its might.
It inspires horror in the harbor and in the open sea.
She sails into the waves
Flanked by arrogance, haughtiness and false power.
To her doom she moves slowly
A dinghy awaits her, riding the waves.

In the subsequent two years before his capture, Nashiri drew up plans to launch small boats against US warships in the Strait of Hormuz after he was deterred by increased security in other busy shipping lanes such as off Aden and Gibraltar. "According to his interrogation, al-Nashiri planned to attack US navy ships with several speedboats launched from a mother vessel traveling on one of two 1-nautical-mile-wide channels," Lorenz reported. "The plan was to detonate the mother vessel once it passed any possible target. After a final intelligence review, al-Nashiri deemed the success of such a mission was unlikely and aborted its operation." Al-Qaeda later modified its strategy to use less direct attacks, with divers trained to plant explosives on the hulls of ships or ram them with swimmer delivery vehicles that had been turned into floating bombs. Another strategy had terrorists hijacking vessels for ransom or steering ships laden with bombs into specific targets in much the same manner as the airliners that were used to attack buildings in the US on September 11, 2001. One month before Nashiri's arrest, a small boat loaded with explosives was rammed into MV Limburg, a large crude-oil carrier being leased by state-owned Petronas of Malaysia, in a suicide attack in open seas outside Aden. There is evidence that Nashiri's strategy has been retained for future operations, possibly with the help of Asian terrorist organizations. In 2005, an Abu Sayyaf member, Angelo Gamal Baharan, was apprehended after undergoing scuba-diving training at Palwan, Philippines, for what he said was a planned operation in an unidentified country. According to the ICT, the US Federal Bureau of Investigation had already reacted to the threat of underwater attacks by securing information in 2002 on about 2 million people who had learned to scuba-dive during the previous three years. Shipping companies and insurance agencies have countered the potential economic disaster of an attack on shipping in the congested Strait of Malacca and Strait of Hormuz by strengthening hulls and instituting protective measures on board vessels. But they have been less successful in changing the culture of complacency in ports, which handle millions of tons of cargo each year and collectively have to monitor more then 1.3 million seamen and longshoremen. At least 46,000 ships called at more than 4,000 ports worldwide and carried 7.1 billion tons of goods in 2006, including 15 million containers that made 230 million journeys. This constituted 85% of global trade volume. The International Maritime Organization launched an International Ship and Port Facility Security Code (ISPS Code) after the USS Cole attack, aiming to deny terrorists the means of accessing vessels and their loads. All ports and ships are required to meet minimum security procedures, including the installation of an automatic identification system that provides authorities with a vessel's identity, position, course and speed. When the code was implemented in 2004, only 53% of ships and 50% of ports were believed to be in full compliance. Although that proportion has since risen, there continues to be resistance from governments and shipowners alike because of the substantial cost. Ships that do not comply can be turned away by ports, but relatively few governments have chosen to enforce this provision. In any case, the code is only binding on vessels of 500 tons or more, which excludes thousands of smaller ships that operate in Asia. Another barrier is that the ISPS Code, like the complementary Container Security Initiative (CSI) and Proliferation Security Initiative (PSI), is viewed as a US initiative tailored to protect US ports from offshore terrorism threats. The CSI, which was introduced in 2002, is a bilateral measure to detect potential threats to US ports by screening cargo at embarkation points through the forward deployment of American customs officials. Only about 40 ports worldwide are partners in the CSI, including 12 in Asia: Yokohama, Tokyo, Nagoya and Kobe in Japan; Singapore; Hong Kong; Busan in South Korea; Port Klang and Tanjung Pelepas in Malaysia; Laem Chabang in Thailand; Shanghai in China; and Dubai in the United Arab Emirates. Washington has hailed the initiative as a success, noting that 11 of the top 20 ports in terms of cargo containers shipped to the US are involved. But this perspective only reinforces the widespread belief that the CSI is designed to serve US interests by shifting the terrorism threat elsewhere. As it is a bilateral measure, the CSI is difficult to enforce, but the US nonetheless applies subtle pressure on ports and shipowners by dictating that cargo from countries outside the initiative be subjected to more thorough checks, often leading to long delays in processing. More than 45,000 companies have taken the hint and submitted to an examination of their cargo at the last port of embarkation before they reach US shores. There is similar skepticism over the PSI, designed to combat the spread of weapons of mass destruction by allowing the warships of participating countries to board and, if necessary, seize vessels suspected of smuggling such arms. Of the 15 nations that have signed up, only two - Japan and Singapore - are in Asia. Notable absentees include China, South Korea and India, which all harbor doubts over the legality of the searches; Beijing and Seoul are especially worried over how North Korea might react if it became a target. As the PSI has no basis in international law, a ship can only be stopped in international waters when there is consent from the country where it is registered. Liberia, Panama and the Marshall Islands, the three main flags-of-convenience states, have signed the PSI. Beijing's mistrust dates back to an incident in 1993, a decade before the PSI came into operation, when the US tried to intercept the Chinese vessel Yinhe on suspicion that it was carrying thiodiglycol and thionyl chloride to Iran. The chemicals can be used to manufacture toxic agents. Eventually boarded in a Saudi port, the ship was found to be carrying a legitimate cargo. And South Korea was unnerved by an interdiction of the North Korean ship So San in 2002 by Spanish vessels - at the United States' request - that unearthed Scud missile parts hidden under cement. After finding they were to be delivered to Yemen, a key ally in anti-terrorism efforts, Washington allowed the parts to be delivered. When the PSI was set up shortly afterward, critics had plenty of ammunition to support their contention that the initiative, and other anti-terrorism measures aimed at preventing maritime attacks, were merely extensions of US foreign policies. Alan Boyd, now based in Sydney, has reported on Asia for more than two decades. © Institute for Counter-Terrorism, Interdisciplinary Center (IDC).

Indonesia counts its islands before it's too late by Ed Davies & Mita Valina Liem
Pulau ayer, Indonesia - Indonesia has so many islands it has not been able to count them all and is having a hard time finding names for them. From coral-fringed atolls to jungle-clad volcanoes thrusting up from the ocean, its chains of islands sprinkled along the equator make up the world's biggest archipelago. Officially there are about 17,000 islands, but that number may drop as one minister fears hundreds of islands might vanish because of rising sea levels from global warming. So, before it's too late, the country aims to complete its first detailed survey this year, spurred on by worries ranging from sovereignty disputes to climate change. Even near the capital, there is confusion over the numbers. Pulau Ayer, or Water Island, is one of a string of islands just north of Jakarta. This tiny dot of an island is part of a chain called Pulau Seribu, or Thousand Islands. Depending on who you ask, there are between 100 and 145 islands. "How can you manage the islands if you don't know the identity of the islands?" questioned Alex Retraubun, a government official in charge of small islands and leader of the survey. "So this agenda is quite important, quite strategic, to smooth your policies in the future," he added, speaking in his office in the ministry of marine and fisheries in central Jakarta, with a large map of Indonesia pinned to the wall. The issue has become a hot topic after Indonesia upset neighbouring Singapore recently by banning sand exports to the city state, blaming sand mining for literally wiping some of its islands off the map. The government says it has 17,504 islands, but Retraubun said not all officials are clear about the numbers.

Island-Hopping
"If you pay attention to our important persons' speeches sometimes the number of islands varies with the speakers. We really need to make sure we have a definitive number." Retraubun was born on a small island in the remote Moluccas region of eastern Indonesia. He went on to study coastal management at Britain's Newcastle University. His team is on the last leg of a three-year project to visit every island in Indonesia. Going to the islands, he says, is needed to ensure something is actually an island rather than a clump of mangroves partly submerged at high tide. According to the U.N. convention on the Law of the Sea, an island is a naturally formed area of land, surrounded by water, which is still exposed at high tide. The survey team takes the coordinates of an island it visits, notes what is there, whether it is occupied and, if so, what is the makeup of the community. The team interviews the inhabitants. Far less than half of Indonesia's islands are inhabited and it has yet to officially name more than half. A marine ministry official said satellite data shows at least 700 are occupied. However, highlighting the sketchy data and hazy definitions, some sources put the number at about 6,000. Under U.N. rules, the name of an island can be recognised if it is known by at least two local people. Problems arise, though, when islands have the same name. "You find almost, let's say, seven islands with the same name and that is confusing," said Retraubun. In another case, he said an island in West Nusa Tenggara province was being renamed because the western name it had did not sit well with the Muslim population in the outlying area. Nationally the island has been known as Pulau Sofia Luisa. "Once we finish this survey then all the names should be standardised." He also noted the importance of naming islands, or even just rocks, particularly in disputed border areas. "If that rock is in a border area that is quite strategic because from that rock you measure your maritime border." Retraubun said Indonesia had learned a lesson from a dispute with Malaysia over sovereignty of the islands of Sipadan, a popular diving resort, and Ligitan in the Sulawesi sea. The International Court of Justice ruled in 2002 that the islands belonged to Malaysia, based on evidence that Kuala Lumpur was doing more on the islands to indicate its authority.

Tourism and Climate Change
Retraubun believes there is still huge potential for tourism, pointing to successful Dutch development of eco-resorts in the diving area of Raja Ampat off Papua province. "If you're talking about tourism then the isolation is actually an asset," he said. In contrast, Pulau Ayer's proximity to the teeming capital means that the sea around the palm-fringed beaches of the resort island, which can easily be walked round in 10 minutes or so, is often murky and strewn with rubbish. Retraubun said he wanted massive investment to come to the small islands, but was realistic about the challenges. Indonesia's environment minister Rachmat Witoelar in January said the country could lose about 2,000 islands by 2030 if sea levels continued to rise. World sea levels are likely to rise by up to 59 cms (23.2 inches) by 2100 and bigger gains cannot be ruled out if ice in Greenland and Antarctica thaws, the U.N. climate panel said in February. Nicholas Stern, author of an acclaimed report on climate change, has also pointed to Indonesia's vulnerability. "Island states are very vulnerable to sea level rise and very vulnerable to storms. Indonesia with 17,000 islands of course is particularly vulnerable," he said on a recent visit to Jakarta. Retraubun said that with the majority of small islands in the country only 1 metre above sea level, there was little Indonesia could do if sea levels rose dramatically. "I think ... we just pray." © 2007 Reuters.

Maintaining security should be the priority of all players
Greater emphasis must be given to identify the vulnerabilities along the maritime supply chain and to secure the chain from incidences that can derail its smooth flow. In the wake of the 9-11 attacks, the need to boost defences along the maritime supply chain has become a critical issue. A slew of measures have been introduced since the incident to bolster the defence of the maritime sector and its supply chain. However, most of them are foc-used on the intermediate stages of the chain, namely ports and shipping, and mainly zeroing in on containerised cargo. Little attention has been given to securing the rest of the maritime transportation links beyond ports and ships from potential security threats. The threats faced by the maritime supply chain are wide-ranging. The common ones include piracy, acts of terror, smuggling, equipment breakdown, accidents, tampering, theft and stowaway. Measures to neutralise the threats along the supply chain should be viewed in the context of an overall security framework to prevent, anticipate and deter incidents that could hamper smooth flow of the maritime supply chain, rather than to merely react to them. A holistic approach is needed to tie the various players and components along the supply chain together into a maritime supply chain security scheme based on a proactive rather than reactive, anticipative rather than passive doctrine. Several measures already in place to improve security along the chain are welcome, but they need to be harmonised into a comprehensive security blueprint in the manner of the ISPS Code for ports and shipping. The next stage of maritime supply chain security planning should encompass allocation of resources on capacity building in human resources, procedures, systems and technology. Beyond the port and shipping sectors, other players in maritime transport must play their parts to facilitate uninterrupted, efficient, reliable and smooth flow of cargo along the maritime supply chain. They include freight forwarders, hauliers, distributors and warehouse operators. All parties must assess the vulnerabilities within the domain of their operations and undertake efforts to secure their end of the supply chain. To improve the maritime supply chain security, the whole supply chain network must also be secured, and every single party and stopover in the chain must be made accountable for the security of the commodities. This would call for accountability and the contribution of resources from all involved, from the point of origin to the point of destination. Such an approach would enhance security standards and practices all along the maritime supply chain. Policies and measures to secure the maritime supply chain should be made based on reliable and updated information and statistics to ensure their effectiveness. A comprehensive approach towards securing the chain from the threats it faces is needed in constructing a solid framework. This would enable policymakers and other stakeholders to make sound judgment and nuanced decisions with regards to their interests and priorities with regard to cargo transportation. In coming up with a comprehensive maritime supply chain security, it is essential to engage all parties involved in the entire network - from the producers to the consumers and end users. All the stakeholders must realise that protecting the safety and integrity of the maritime supply chain hinges upon teamwork. Maintaining security should be a priority of all involved, and as such needs to be planned and carried out collectively without undermining the interest of one another, in a manner that would facilitate smooth transportation of cargo along the supply chain. Constant risk evaluation should be conducted by security planners, enforcement agencies, and other stakeholders in the maritime supply chain to secure cargo transportation along the chain. This would help the stakeholders to plan and allocate their resources effectively in balancing commercial needs and ensuring that cargo is transported speedily and efficiently along the supply chain. [Excerpts from a presentation made by Nazery Khalid, research fellow at the Maritime Institute of Malaysia, at a recent supply chain security conference in Singapore - CargoNews Asia] © 2002-2007 Marshall Cavendish Business Information (HK) Ltd.

Malacca: Who's to pay for smooth sailing? by Vijay Sakhuja
Singapore - The Strait of Malacca was the center of tension in 2004 between the waterway's littoral states and US Admiral Thomas Fargo, commander in chief of US Pacific Command, who announced that under the Regional Maritime Security Initiative, the US was planning to deploy marines and special forces in and around the strait to combat terrorism, proliferation, piracy, gun-running, narcotics-smuggling and human-trafficking. The following year, Lloyd's Market Association's Joint War Committee (JWC) declared the Strait of Malacca, along with several maritime areas in West Asia and Africa, as highly prone to piracy, war, strikes, terrorism and related perils. It was feared that al-Qaeda could exploit piracy in the Strait of Malacca to attack ships, and the JWC declaration resulted in the imposition of higher insurance premiums for ships transiting through the strait. At the time, Malaysia and Indonesia were averse to the US initiative, positing that such a deployment raised serious sovereignty concerns. The littoral countries - Malaysia, Singapore, Indonesia and Thailand - responded through the so-called "Eyes in the Sky" initiative, and the International Maritime Bureau acknowledged that the sea and air patrols undertaken by the littoral states had proved effective and incidents of piracy had reduced drastically. Today, however, there is a shift in the way the strait is viewed by the international maritime community. Significantly, as a result of considerable improvement in security, issues of safety of navigation in the strait have taken priority and begun to dominate discussions. In the coming years, traffic density is projected to increase from 94,000 ships in 2004 to 141,000 in 2020. Given this projected phenomenal increase in traffic, the quality of navigational aids in the strait will have to be enhanced for a smooth flow of traffic and to prevent accidents. Under Article 43 of the United Nations Convention on the Law of the Sea, it is the responsibility of the littoral states to maintain navigational aids in the strait, as it is to prevent pollution. The littoral states have held several Track I and II interactions on improving the safety of navigation in the strait, including an August 2005 ministerial-level tripartite meeting of the Strait of Malacca littorals and International Maritime Organization (IMO)-sponsored discussions in Jakarta in 2005 and in Kuala Lumpur in 2006. The recently concluded Symposium on the Enhancement of Safety of Navigation and the Environmental Protection of the Straits of Malacca called for sharing the cost of maintenance of navigational aids and preventing environmental hazards that could severely impact on the livelihood of coastal communities - including the fishing and tourism industries. The littoral states have vehemently argued that with a manifold increase in traffic, the costs of maintenance are expected to be as high as US$300 million in the next decade, and they should not bear this burden on their own. Japan has long contributed financially to the upkeep and maintenance of the strait, and in recent years India, South Korea and the United States have also pledged assistance. China has offered to restore and repair navigational aids damaged during the 2004 Indian Ocean tsunami. Over and above these voluntary offers, the Nippon Foundation of Japan has suggested that all ships transiting the strait contribute a voluntary fee of 1 US cent per deadweight ton of cargo. This contribution could generate $40 million a year and would help support and upgrade navigational aids in the strait. Another approach suggested is for shipping companies to make contributions based on the practice of corporate social responsibility (CSR).

Footing the bill
The "all users pay" suggestion has been gathering momentum, but has received a mixed response from the shipping community. The International Chamber of Shipping, the Association of Independent Tanker Owners, and the Baltic and International Maritime Council have agreed to discuss the issue of voluntary contributions. The Singapore Shipping Association, a group consisting of 300 members, has urged the Asian shipping industry to participate in discussions but has noted that ships visiting ports in the littoral states pay so-called "port and light" dues, and this money should be used for the maintenance and upkeep of the navigational aids in the strait. It is of interest that most of the shipping traffic transiting the strait is classified as "long-haul through traffic" - that is, most vessels do not call at any ports of the littoral states and thus do not pay any port charges. It is also evident that there are several stakeholders involved in the safety of navigation in the strait: littoral countries, user states, shipping companies, insurance agents and, above all, the IMO, the top maritime body under the UN. The littoral countries are desperate to seek support from other stakeholders, but user states and their companies are not forthcoming and argue that the responsibility should lie solely with the littorals. There are also fears that the "all users pay" demand could set a new precedent, and would naturally tempt other littoral countries that straddle narrow sea passages and choke points through which global shipping transits to impose similar charges. These overriding issues notwithstanding, the ongoing discussions at both the Track I and II levels have raised the issue of safety of navigation in the Strait of Malacca as a top priority. The proposal by littoral states of burden-sharing will clearly not be smooth sailing, but could yet yield results. The IMO could become a central repository of an international fund with contributions made by flag states to extend disbursements to needy countries. This approach is bound to be very slow, time-consuming and peppered with politics and bureaucratic hassle. For their part, the flag states could raise such funds from registered shipping companies whose vessels are engaged in international shipping. Since this burden is not likely to be very large, the shipping industry could pass it to suppliers and end users. But all stakeholders must appreciate that a safe and secure environment in the Strait of Malacca cannot be achieved by the efforts of littoral countries alone, but instead requires mutual understanding and cooperation from all parties. For that, it is necessary to start by sharing common values on the benefits of burden-sharing, to be provided for and enjoyed by the entire maritime community. © 1999 - 2007 Asia Times Online (Holdings), Ltd.

Ministry sets up marine unit to prevent smuggling at sea
Kuala Lumpur - The Domestic Trade and Consumer Affairs Ministry has set up a marine unit to prevent smuggling at sea. Minister Datuk Mohd Shafie Apdal said the Maritime Enforcement Unit was set up this month but its personnel had yet to begin patrol and enforcement duties because they were still under training. "At the initial stage, we will work together with the Malaysian Maritime Enforcement Agency (APMM). "From next year, we will start patrolling by ourselves using boats rented from the private sector before the ministry acquire its own boats," he told reporters after attending the 35th anniversary celebration of the ministry's enforcement division here tonight. He said the move was necessary because smuggling activities through the sea were rampant and it mainly involved necessities that were sold cheaper in Malaysia like cooking oil, sugar and salt, compared to those in neighbouring countries. © 2007 BERNAMA.

Petronas keeps Shikoku deal in-house
Kuala Lumpur - Malaysia LNG, a subsidiary of energy major Petronas, has signed a deal to supply up to 420,000 tons of LNG annually to Japan's Shikoku Electric Power for 15 years starting from 1 April 2010. Under the deal, which was signed in Kuala Lumpur on Friday by MLNG chairman Hassan Marican and Shikoku Electric president Momoki Tokiwa, the Malaysian energy major will ship LNG from Bintulu to a new receiving terminal at Sakaide, which is currently under construction. LNG carriers operated by MISC, another Petronas subsidiary, will be used to cover the supply contract; there is also an option attached to extend for a further five years. Shikoku Electric power serves almost 2.9M customers – including domestic and industrial users – located on the island of its name, and operates four thermal power stations, all of which are expected to be switched to use gas as fuel before the supply contract commences. The latest deal brings the number of Petronas’ Japanese LNG customers to 15 companies in total. © Lloyd's Register - Fairplay Limited 1999 - 2006.

Port of Tanjung Pelepas to boost India-Malaysia trade
New Delhi - Port of Tanjung Pelepas (PTP) will play a key role in fostering the growth of trade between India and Malaysia. This was stated by Mohammad Sidik Shaik Osman, Chairman of the port, who was recently in Kolkatta to launch shipping services between Kolkatta/Haldia and the Malaysian port. In an interview with Hindu Business Line, he said: "Malaysia is India's biggest trading partner in South-East Asia and the two way trade is growing. In 2006, it was worth US$5.6 billion and is estimated to jump to US$10 billion in 2007. Our port will play a key role in fostering the growth." Osman, who attended the launch of Singapore-based orient Express Line, which has launched direct weekly services between PTP and Kolkata /Haldia, said "There will be an additional sailing via Bangladesh." Giving details of the port's capacity, he said the port would be able to handle eight-million TEUs annually. "In 2006, we handled 4.77 million TEUs, (which is) likely to rise to six million TEUs in 2007. We have a 3.6 km-linear quay (10 berths x 360 metres), a 154,000-TEU capacity container yard and 3,000 reefer points. "The number of super post-panamax cranes is 27 and there are 72 rubber-tyred gantry (RTG) cranes and integrated IT system." Asked what were the major shipping lines operating through PTP, Osman said that Maersk, the world's biggest container operator had equity stake in PTP. Several other lines such as Evergreen Malaysia International Shipping Company, Hamburg Sud Orient Express Line, MCC Transport, Utama Marine, Vinalines and Qc Lines, also place their mainland vessels at the port. "Negotiations are on with several others," he added. Asked on its growth from a fishing village to a leading port, he said there were several factors, including its location. The Straits of Malacca's strategic location has made Malaysia an important transshipment and distribution hub. "Our port is strategically located at the intersection of east and west international sea trade lanes." The port which adheres to various international safety standards including the US Customs Service container Security Initiative and C-TPAT, has customs scanning machine installed in the port. It has restricted and controlled systems in the terminals, 24-hour in house security with auxiliary police powers and 24-hour emergency response team. About challenges facing them, he said "As a service provider, we must achieve excellence. Our service standards have to be second to none. We are confident of achieving it." © 2007 BERNAMA.

Week 4 & 5 (20 - 31 May 2007)

19 navies to attend multilateral maritime security seminar, exercises
Singapore - Singapore is hosting a series of multilateral maritime security activities that include a two-day weekend sea exercise involving 18 warships and a seminar, the city-state said. The events are being attended by navies from countries including China, Japan, Russia, the United States and France, the Defense Ministry said Wednesday. The navies will use simulators in a tactical training exercise to establish procedures in dealing with maritime security threats, the ministry said. The maritime exercise, which starts Saturday in the South China Sea, will enable the participants to practice these tactics, the ministry said. "The maritime security challenges we face together are multifaceted and trans-boundary in nature," said Singapore's Chief of Defense Force, Maj. Gen. Desmond Kuek, in a statement. "They cut across traditional sectoral boundaries of navies, coast guards, port authorities and other maritime security agencies." Aside from Singapore, the other participating countries are: Australia, Indonesia, Cambodia, Tonga, Malaysia, Brunei, New Zealand, Papua New Guinea, the Philippines, South Korea, Vietnam and Thailand. Indonesia, Malaysia and Singapore began coordinating their sea patrols of the Straits of Malacca - through which half the world's oil trade and a third of global commerce passes - in July2004 after prodding from Washington. They started air patrols two years ago. U.S. leaders had voiced concerns terrorists could ally themselves with pirates already established in the strait to blow up an oil tanker or turn ships into floating bombs. © 2007 JakartaPost.

ASEAN urged to form competitive transport system
Kuala Lumpur - To enhance the attraction of the region as an investment haven, the Association of South East Nations (ASEAN) needs to bolster its transport network, according to Nazery Khalid, Research Fellow at Maritime Institute of Malaysia. In an era of fierce competition for investment, the region needs to pull out all the stops to attract foreign direct investment, Nazery said. For ASEAN to facilitate greater intra-regional trade and investment, it needs to enhance its transport infrastructure and its supporting services, he added. ASEAN needs to adopt a three-pronged strategy towards creating a competitive maritime transport system for the region, said Nazery. This strategy entails the unitisation of services and the provision of seamless and high-speed services. Complemented with infrastructure development in container port, transport terminal and other maritime infrastructure, this strategy would enhance the competitiveness of ASEAN as a trade-dependent region, he said. While ASEAN encourages the opening and upgrading of port facilities in less-developed ASEAN countries, the lack of resources are hampering such efforts, said Nazery. This is unavoidable, given the uneven economic development and different priorities amongst the countries in the region, he added. Before the ASEAN Free Trade Area (AFTA) declaration in 1992, ASEAN adopted a sectoral approach towards developing the individual transport modes across the region individually. This contributed little in realising a single regional transport network. Post AFTA, ASEAN shifted its policy to focus on trade facilitation to promote regional economic integration envisioned by AFTA. Despite the progress that has been made in integrating the regional Asian economies, there remain issues to be overcome such as the lack of investments and the need for capacity building for less-developed countries in the region, among others. These issues need to be resolutely addressed before ASEAN can truly claim success in its lofty goal of creating a level economic playing field in the region, Nazery said. © 2002-2007 Marshall Cavendish Business Information (HK) Ltd.

Asian navies strengthen ties at maritime exhibition by Hoe Yeen Nie
Singapore - The International Maritime Defence Exhibition (IMDEX) Asia opens on Tuesday with the largest number of participants in its six-year history. The key aim of this four-day event is to deepen naval defence ties among participating countries. So in the spirit of cooperation, some 18 warships are taking part in a multilateral sea exercise this weekend at the invitation of the Singapore Navy. Second Defence Minister Ng Eng Hen received a traditional naval welcome on board a Chinese warship, Xiangfan, which is on its maiden visit to Singapore. Its crew members hope to build closer ties with their counterparts from 17 other warships, which have also arrived in Singapore. The multilateral sea exercise is part of the second Western Pacific Naval Symposium, which will explore ways to tackle maritime terrorism and piracy. The event will also see activities in multilateral tactical training and information sharing. Li Xiaoyan, Commanding Officer of Xiangfan, People's Liberation Army (Navy), China, said: "From what I know, this multilateral sea exercise will involve exercises to guard against threats from small vessels and sea mines, as well as conduct surface-to-surface and surface-to-air missile tests. We will also be carrying out live firing exercises, and search and rescue operations." The Chinese Navy participated as an observer in the first sea exercise held two years ago. This year's IMDEX Asia has attracted 22 warships from 14 countries – all with a shared interest in maritime security. Dr Ng said: "Any disruption to passage in the Straits of Malacca and Singapore will have immediate and severe repercussions felt far beyond Southeast Asia and the Asia Pacific. Needless to say, the economic costs of any disruption will be astronomical." That is why participants were told that closer cooperation among countries is important. Apart from naval exercises, participants said trade events like IMDEX Asia allow them to share new developments in maritime defence technology, including anti-ship missiles, new defence vessels and simulator systems. © 2007 MCN International Pte Ltd.

Asian owners oppose Malacca levy
Busan - Asian owners have backed the setting up of a Malacca straits fund, but are against any compulsory levy on ships using the Malacca and Singapore straits. The 900km-long strait that separates the Indonesian island of Sumatra from Peninsular Malaysia is the main waterway for tankers transporting crude oil from the Middle East Gulf to the Far East. “It was agreed that the [Asian Shipowners'] Forum will not support any form of compulsory levy on ships using the Malacca and Singapore straits,” a statement issued by the owners has affirmed. The 16th ASF meeting was attended by 119 delegates from 12 countries. Owners will, however, co-operate in the setting up of a mechanism for voluntary funding to support the maintenance and renewal of aids to navigation in the strait. But they want to be assured of transparency and sound management. While welcoming the drop in piracy attacks in the Malacca strait, owners have urged littoral states to maintain patrols and cautioned ship masters to stay vigilant when plying through piracy hot spots. © Lloyd's Register - Fairplay Limited 1999 - 2006.

Asian shipowners agree on permanent secretariat to promote industry interests
Busan - Asian shipowners on Tuesday agreed to set up a permanent secretariat in Singapore to promote wide-ranging industry interests. The decision reached at the end of the two-day-long gathering of the Asian Shipowners' Forum (ASF) claimed that the secretariat could help strengthen international maritime order, which would be beneficial to the industry as a whole. The new organization is expected to be set up within the next six months, with the secretary-general to be picked in July. The meeting of 119 Asian shipping company chiefs and representatives from a dozen national shipping associations also said that the general health of the world economy is likely to help the shipping industry post gains in the coming years. They estimated that shipping traffic from Asia to the United States will continue to rise by around 10 percent every year for the foreseeable future. ASF members then said that the international efforts to clamp down on piracy in the high seas have resulted in fewer criminal incidents in Asian waters. They then called on Indonesia, Malaysia and Singapore to continue policing their respective territorial waters for pirates. Since its first meeting in Tokyo in 1992, the forum has assumed a significant role in the international shipping community through its activities. Asian shipowners control and operate more than 40 percent of the cargo vessels worldwide, the Korea Shipowners' Association said. South Korea was represented by heads Hanjin Shipping Inc., Hyundai Merchant Marine Co., and STX Pan Ocean Co. © 2005 Yonhap News Agency.

Asian shipowners outline strategy to improve marine industry's image
Asia's leading shipowners and managers have pledged to use the region's growing influence to help steer pending regulatory changes and improve the image of the global marine industry as they look to lessen the anticipated shortage of qualified officers for the world's expanding fleet. The strategy, forged at the sixth annual meeting of Lloyd's Register's Asian Shipowners Committee in Kuala Lumpur on May 4, committed industry leaders in Asia to play a more active role in forming new marine legislation, training seafarers and in engaging media-related organisations with a view to polishing the public image of shipping. "After a day of productive discussions, a consensus emerged on a requirement to play a more active role in improving how the general public views the shipping industry," said Lloyd's Register Asia director John Stansfeld in a statement. "Strategies for attracting high-quality young recruits and improving shipping's image stand together, and if you can't improve your image, you can't compete with business sectors such as information technology and finance to capture the brightest young talents," he added. The committee, chaired by Pacific International Lines (Pte) Ltd managing director and Singapore Shipping Association president Teo Siong Seng, highlighted the lack of skilled and experienced manpower as one of the greatest threats to the commercial viability of the marine industry. According to a report released last year by the Baltic International Maritime Council and the International Shipping Federation, the global shortage of marine officers would treble to 27,000 from 10,000 currently if no efforts were made to address the problem. "The lack of human capital is a problem not only for the shipping industry, but all industries in Asia at present," said Nordin Mat Yusoff, vice-president fleet management services for MISC Bhd, owner of the world's largest fleet of LNG vessels. "It is an element of everyone's business that assures sustainability and a superior business performance." Nordin said the current recruiting strategies of some firms were short-sighted, noting that "rampant" poaching in the past few years had driven the annual attrition rate for experienced mariners far above traditional levels of about three per cent. "The industry needs to stop pinching and poaching each other's most senior officers and executives and start investing in training and people development," Nordin said. "We must all work together or else this industry will go southbound. We will have 140 new LNG vessels entering service by 2010. Just imagine how many experienced masters we will need for that alone. It is a great challenge." MISC acquired full ownership of Akademi Laut Malaysia (Alam) three years ago, the country's premier education and training institution for mariners. The Lloyd's Register Educational Trust, a member of the Lloyd's Register Group, in February awarded Alam US$200,000 (RM680,000) to fund the academy's director of studies position for two years. Committee members urged their fellow executives to "get involved" with the various forms of media and commit resources to improve the image of shipping, an industry that is all too often perceived to have to be lead into regulation, particularly where the environment is concerned. © The New Straits Times Press (Malaysia) Berhad.

Asians urged to raise profile
Singapore - Asian ship owners need to raise the profile of the shipping industry as competing sectors try to lure away talented employees, Nordin Mat Yusof, chairman of the Malaysian Ship Owners Association, told the 6th annual meeting of Lloyd’s Register Asian Ship Owners Committee in Kuala Lumpur. Among initiatives under discussion are a more “positive spin” from the media, greater emphasis on seafarer training and new maritime legislation. Pacific International Line and Singapore Shipping Association president Teo Siong Seng is reported to have described the lack of skilled manpower as “the greatest threat to the commercial viability of the industry”. The owners heard that the maritime industry is susceptible to widespread poaching, which contributes to continued shortages among the ranks of seafarers. © Lloyd's Register - Fairplay Limited 1999 - 2006.

Brunei Participates In 19-Nation Maritime Exercise by Sonia K.
Bandar Seri Begawan - Brunei Darussalam is among the 19 nations participating in a series of multilateral maritime security activities that include a two-day weekend sea exercise involving 18 warships and a seminar hosted by Singapore. According to the Associated Press, the Singapore Defence Ministry said the events are being attended by navies from countries like China, Japan, Russia, the United States and France. The navies will use simulators in a tactical training exercise to establish procedure in dealing with maritime security threats, the ministry said. The maritime exercise which starts today in the South China Sea will enable the participants to practise these tactics. "The maritime security challenges we face together are multifaceted and trans-boundary in nature," said Singapore's Chief of Defence Force, Maj Gen Desmong Kuek, in a statement. "They cut across traditional sectoral boundaries of navies, coast guards, port authorities and other maritime security agencies." Aside from Brunei and the host country, the other participating countries are Australia, Indonesia, Cambodia, Tonga, Malaysia, New Zealand, Papua New Guinea, the Philippines, South Korea, Vietnam and Thailand. Indonesia, Malaysia and Singapore began coordinating their sea patrols of the Straits of Malacca - through which half of the world's oil trade and a third of global commerce passes in July 2004 after prodding from Washington. They started air patrols two years ago. US leaders had voiced concerns that terrorists could ally themselves with pirates already establishing in the strait to blow up an oil tanker or turn ships into floating bombs. (AP) © 1999-2005 Brudirect.com.

China's focus on aircraft carriers by Richard Halloran
Fresh from a visit to China, the new commander of U.S. military forces in the Pacific and Asia said he found Chinese military leaders intensely interested in acquiring aircraft carriers. At the same time, Adm. Timothy Keating said: "I suggested let's not be naive about the complexity of those ships, and they are not cheap." The admiral, a naval aviator who has made 1,200 carrier landings, said all of the Chinese leaders with whom he spoke during a five-day stay earlier this month indicated their inclination to pursue the development of aircraft carriers. "No one said we're not going to do this," he said in an interview at his Pacific Command headquarters overlooking Pearl Harbor. "This would be a profoundly difficult venture if the Chinese choose to undertake it," he said. The U.S. Navy had nearly 800 planes crash in training accidents in 1954 during the transition from propeller driven aircraft to jet aircraft, say Andrew Erickson and Andrew Wilson, who are on the faculty of the U.S. Naval War College in Newport, R.I. Even as late as 1999, the Navy lost 22 planes flown by the world's most experienced aviators. Internal discussion and external speculation over China's acquisition of an aircraft carrier has been churning along for at least 25 years but now seems to have picked up momentum. Keating said he sensed that, just below the surface, the Chinese saw aircraft carriers as potent symbols of great power status, a clear Chinese aspiration. On a related score, the U.S. Pacific commander continued making a point cited by several predecessors, cautioning his Chinese hosts not to misjudge American military capacity or intentions. He urged that both Chinese and Americans "take all prudent measures to avoid miscalculation or misunderstanding." "We were not bellicose about it," he said. Rather, he said, "let's make sure we don't get into situations where there would be recourse to military force." An early Chinese advocate of aircraft carriers was Adm. Liu Huaqing, from the time he became chief of the Chinese navy in 1982 until he retired as a vice chairman of the Central Military Commission in 1997. "To modernize our national defense and build a perfect weaponry and equipment system," the admiral once wrote, "we cannot but consider the development of aircraft carriers." So far, the Chinese navy has concentrated on buying submarines from the Russians or building them at home. That policy, however, will most likely not last much longer, Erickson and Wilson said. "While submarines seem to be ascendant," they wrote last fall, "the Chinese are still actively engaged with the carrier question and are reframing the terms of the debate." They suggested that China could include carriers in their next five-year plan, which begins in 2011. There appear to be five reasons China may buy or build a carrier:

* International prestige: Like Keating, Erickson and Wilson noted that Chinese often say
"a nation cannot become a great power without having an aircraft carrier."
* Power projection: China has proclaimed that the waters and islands of the South China Sea are Chinese territory. Southeast Asians dispute those claims, but a carrier would back China's contention.
* Defending lifelines: Through the Straits of Malacca between the Indian Ocean and the South China Sea pass increasing amounts of oil for China's industry. A carrier could help defend them.
* Regional rivalry: India and Japan, which Chinese leaders see as political competitors, are well ahead of China in sea power. A carrier would help close that gap.
* Relief operations. China was humiliated after the 2004 tsunami in the Indian Ocean drew swift responses from the U.S., Japan and other nations with air and naval assets, and China was left out. China, however, would not need a carrier to attack Taiwan, the island it covets, as land-based aircraft that can be refueled in the air and missiles, forces that China has been steadily building up, would carry the brunt of an assault. The Chinese have bought four decommissioned carriers since 1985, the Melbourne from Australia and the Minsk, Kiev, and Varyag from Russia. The three former Russian ships are tied up and open to the public as educational museums now. What the Chinese have learned from those ships can only be speculated. [Richard Halloran, a free lance writer in Honolulu, was a military correspondent for The New York Times for ten years.] © RealClearPolitics 2006.

China, Philippines attain agreement over security, defense
China and the Philippines Friday attained agreement over many issues on security and defense in their third round of bilateral defense and security dialogue in Manila. Lt. General Zhang Qinsheng, deputy chief of General Staff of the People's Liberation Army (PLA) of China and Antonio Santos, undersecretary for Defense Affairs of the Philippines, co-chaired the dialogue meeting at the Aguinaldo Camp in Quezon City. The two sides discussed a variety of issues concerning international and regional security, including the fight against terrorism, situation in Northeast Asia, maritime security, national defense and military construction. They also had in-depth discussion about strengthening the exchanges and cooperation between PLA and the Armed Forces of the Philippines (AFP). This is the third time for the two countries to hold bilateral defense and security dialogue since they established the consultation mechanism in 2005. During the dialogue, Zhang briefed his Filipino counterpart on China's principle policy of seeking peace and development and the country's defensive national defense policy. He reiterated China's firm stand and resolution to foil any attempt to split Taiwan from China. Zhang also said China is willing to further develop the relations between PLA and AFP. Santos said the Philippine government and the AFP highly evaluate friendly relations with the PLA. He stressed that the Philippines sticks to "one China policy" and highly appreciates the contributions being made by China to maintain international and regional peace and stability. Zhang arrived here on Thursday for a three-day visit to the Philippines at the invitation of the Philippine Department of National Defense. He also met with Philippine Executive Secretary Eduardo Ermita, Defense Secretary Hermogenes Edejer Ebdane and AFP Chief of Staff Hermogenes Esperon Jr. (Xinhua) © People's Daily Online.

Coast guard unit to curb illegal activities along border by Shamini Darshni
A maritime unit has been formed to guard the coastline against illegal border activities. Officers of the unit, which was formed earlier this month, will undergo training with the Malaysian Maritime Enforcement Agency and form joint patrols. The unit is expected to complement existing efforts to overcome smuggling. Domestic Trade and Consumer Affairs Minister Datuk Shafie Apdal said by year end, the unit will rent private boats for patrolling and targets 2010 to have their own. “With the unit, we hope to increase existing efforts and help the maritime police, along with other agencies, to curb smuggling,” he said at the ministry’s enforcement division’s 35th anniversary last night. “Smuggling and hoarding is everywhere. Malaysian cannot be exempted,” he said, while adding that the country has invested much effort to curb the menace. Shafie said Malaysia was falling victim to smuggling because the prices of essential goods and petrol were lower compared to neighbouring countries. The minister also thanked enforcement officers of both past and present for their services to the country. © 2007 NST Online.

The coral reef deserves our attention by Allen Chen [Translated by Marc Langer]
Reef Check, an international organization dedicated to coral reef conservation, issued an online petition called Reef Check Declaration of Reef Rights, which received strong support. In just three days, Taiwanese reef lovers joined the cause, catapulting Taiwan to No. 2 on the list of signatories between the first-place US and third-place Malaysia. But even as Taiwanese throw their support behind this noble cause, I've seen a newspaper report that said: "Stop wasting energy focusing all attention on how humans have destroyed coral reefs. Finding a way to artificially mass reproduce wild shallow-water coral reefs is the key to saving coral ecology in Taiwanese waters." I must ask why focusing attention on human destruction is a waste of energy. And can humans really mass reproduce wild coral and save Taiwan's coral ecology? First, just as the reality of global warming is threatening the world climate, coral reefs are facing an unprecedented crisis. As the Reef Check Web site says, we have already lost 15 percent of the world's coral and 30 percent is directly in danger of destruction because of human activities. If we weren't able to halt or slow this decline, more than 200 million people living on Pacific islands would have their livelihoods affected. The petition states that all coral reefs have the right to be free from destruction from over-fishing, pollution, artificial coral bleaching, ocean acidification, and damage due to poorly planned coastal development. The organization hopes 1 million people will sign the declaration, and, when the International Year of the Reef begins next year, to use those signatures to appeal to all reef countries to protect their reefs. Is it really a waste of energy for Taiwan, whose diverse coral ecology should be a source of national pride, to work with the rest of the world to eliminate human activities that destroy coral habitats? Wild shallow-water reefs and reef-building coral are an important part of the tropical and sub-tropical coral reef ecosystem. This kind of ecosystem has existed on earth for more than 250 million years. But coral-building reefs grow very slowly, whether by sexuallor asexual reproduction. The fastest, acropora coral, grows at 20cm per year, while the slowest, porites corals, grows at just 3mm per year. Moreover, coral reefs require other living organisms in addition to the coral. These include fish, shrimp, shellfish, seaweed and other micro-organisms invisible to the naked eye, all of which make for a complex system. In addition, coral reefs normally develop in clear-water areas free from land pollution. The waters surrounding Taiwan have long since become overused and polluted. Even if we can mass reproduce reef-building coral, how could we give it a place to survive? The only purpose for breeding coral is so that it can be used for commercial purpose in aquariums in place of harvested wild coral. There are simply no scientific reports proving that mass reproduction of reef-making coral can save coral ecosystems. If this were really possible, where is all the coral that has been transplanted on to man-made reefs? If this technology really existed in Taiwan, how is it saving the coral reefs? Where is the data? Why hasn't it been published in an international academic journal to be tested by peer review? All of this needs to be explained through scientific testing. Otherwise it is but fake science. In 1997, Taiwanese academics established the Taiwanese Coral Reef Society, and in 1998 began participating in Reef Check activities. In 1999, Taiwan experienced the largest reef-bleaching incident in history, leading to the destruction of much of the coral reefs in Taiwan's surrounding waters. But with great efforts over the last decade, Taiwanese society has gradually come to understand coral ecology's importance to Taiwan's marine environment. The establishment of Dongsha Marine National Park this year symbolizes our gradual movement into an era of respecting the ocean and protecting coral reefs. Just as concern over global warming has encouraged people to ride bicycles to work, efforts like these are anything but a waste of energy. [Allen Chen is an assistant research fellow in the Institute of Zoology at the Academia Sinica.] © 1999-2007 The Taipei Times.

Deals signed on pipeline that seeks to divert Malacca Strait oil
Kuala Lumpur - Malaysian, Indonesian and Saudi Arabian firms on Monday signed agreements for construction of a pipeline that aims to divert 20 percent of oil flowing through the strategic Malacca Strait, the project owner said. Malaysia's Trans-Peninsula Petroleum Sdn Bhd said it signed an agreement with Malaysia's Ranhill Engineers and Constructors Sdn Bhd and Indonesia's PT Tripatra to build the pipeline at an estimated cost of seven billion dollars over seven years. Trans-Peninsula Petroleum, the owner and promoter of the project, said it signed separate memoranda of understanding with Bakrie and Brothers of Indonesia to supply pipes, while Al-Banader International Group of Saudi Arabia will provide the oil. Prime Minister Abdullah Ahmad Badawi first announced the development earlier this month as part of the government's effort to develop Malaysia's northern region. "We have always wanted to do more for that area and that also will take care of the eastern corridor," he said at the time. Badawi witnessed the signing with Indonesian President Susilo Bambang Yudhoyono on the sidelines of the annual World Islamic Economic Forum, aimed at boosting cooperation among Muslim communities. "When the entire project is completed in 2014, TRANSPEN pipeline will divert about 20 percent of oil transiting through Straits of Malacca, proportionately easing the congestion in the Straits," Trans-Peninsula said in a statement. Half of the world's oil shipments currently pass through the 960-kilometre (595-mile) Strait of Malacca, the busiest seaway in the world, which links the Indian Ocean and the South China Sea. The Strait was notorious for pirate attacks but security officials, who fear the economic and strategic ramifications of any disruption to the vital maritime traffic, say security has vastly improved. "Everyone can use the pipeline. It is to direct traffic away from the international waterway of the Straits of Malacca," Rahim Kamil Sulaiman, chairman of Trans-Peninsula Petroleum, told a news conference. In its statement, Trans-Peninsula said the pipeline, about 300 kilometres in length, will cut across Malaysia's northern states of Kedah, Perak and Kelantan. It will have support facilities for deep-draught tankers at either end. Rahim said the oil will come mainly from the Middle East but also from Africa for "the East Asian oil market". He said "we have made known our projects to both China and Japan, especially China". Government data in China say the country's crude oil consumption rose 7.1 percent year-on-year in 2006. Phase one of the oil pipeline project is expected to begin in 2008 after land acquisition and environmental and social impact assessments, Trans-Peninsula Petroleum said. Plans call for an initial 48-inch (122-centimetre) pipeline with a throughput of two million barrels a day and storage capacity of 60 million barrels. It would be operational by 2011, the company said. After four to five years of operation, capacity would be upgraded to a maximum of 180 million barrels of storage and six million barrels per day throughput, it said. Deputy Prime Minister Najib Razak has said the proposed project was intended to reduce transport costs and security risks for tankers on the Malacca Strait. "It's a very expensive solution to a problem that doesn't seem that severe, frankly," said Jason Feer, of energy market analysts Argus Media Ltd in Singapore. While traders would save three days' sailing time, the logistics involved and the cost of using the pipeline would leave "a pretty marginal benefit," he said. "In the end, the big test will be, will banks loan them money to build this?" Feer told AFP. © 2007 Agence France Presse.

HPH denies selling Westport stake
Hong Kong - Terminal operator Hutchison Port Holdings has strongly denied a Fairplay Daily News report published on Friday that HPH is in talks with PSA to dispose of its stake in Malaysia's Westports. "HPH has no intention of selling its stake in Westport, Malaysia, and has never engaged in any discussions on this matter," HPH Group MD John Meredith stressed. "Westports is an important facility to HPH in Southeast Asia as the terminal is located at the doorstep of Malaysia's largest and most concentrated industrial region," Meredith added. The terminal has been experiencing healthy year-on-year double-digit growth in the past few years. The investment in Westport is for the long-term and, Meredith said, HPH is positive on future development of the facility. © Lloyd's Register - Fairplay Limited 1999 - 2006.

Hunting and gathering
Fishing is done by mankind’s last hunters. As a commercial and industrial sector, fishing is a precarious contest between high capital outlay and running costs against an ever-capricious and shifting resource, and one that present landings indicate is depleting rapidly. In fisheries management, the goal is expressed in the term "maximum sustainable yield". This refers to the level of resource removal that can be done without damaging "seed stocks" of fish fry and juveniles, so that there will always be fish of those species in the waters hunted by fishermen. Two very different activities are lumped together in fisheries as a whole, however: The small or "artisanal" fisherman in his boat with his nets, traps, lines and hooks, fishing waters above reefs and close to shore, and the industrial trawler fleets plying the continental shelves and open oceans. For the former, fisheries management is becoming indistinguishable from environmental and conservation management; the fisherman must come to be seen as part of the coastal marine environment, much as aboriginal communities are becoming seen as intrinsic elements of their chosen home environments of forest, bushland or outback. In the Philippines and Indonesia, coastal fishing communities are being educated and empowered to be their own conservators with what’s touted as "the 25 per cent solution": With studies showing that protecting a quarter of a fringing or barrier reef will ensure a constant supply of renewed fish stocks for the remaining area, islanders have been taught to protect and preserve their own waters to such an end, with impressive results in generating a steadily growing resource base where once only depletion was known. It is a technique with wide potential in Malaysian waters, especially around offshore islands. When it comes to industrial-strength, "deep-sea" fisheries, however, the thinking has to be mega. Konsortium Perikanan Nasional Bhd, a group of companies led by Oilcorp Bhd, hopes to generate RM1 billion in revenue and create 15,000 jobs with a 30-trawler tuna fleet, in accordance with the government’s hopes of doubling the catch of oceanic pelagics to 500,000 tonnes annually under the Ninth Malaysia Plan. Malaysia suffers a disadvantage in this regard, though: Most of its exclusive economic zone in the South China Sea is in relatively shallow, continental-shelf waters. Landing the tonnage of tuna that would return a profit over such an outlay would call for top-flight technology and fleet management — the best of which would still run the risk of all hunting expeditions: The prey must be found where it can be caught. © 2007 NST Online.

Indonesian fisherman catches ancient fish off Sulawesi island
Jakarta - An Indonesian angler caught a fish oncethought to have disappeared along with the dinosaurs and held it in a quarantined pool until it died 17 hours later, a biologist said Sunday. The coelacanth fish was thought to have become extinct 65 million years ago until one was found in 1938 off Africa's coast. The discovery of the so-called "living fossil" ignited worldwide interest. Several other specimens have since been found, including one in 1998 in waters off the Indonesian island of Sulawesi, where Justinus Lahama also hooked his 1.3-meter, 50-kilogram fish early Saturday. The fisherman pulled it from waters near Bunaken National Marine Park, which has some of the highest levels of marine biodiversity in the world and is a popular diving spot for tourists, marine biologist Lucky Lumingas said. Lumingas classified the fish as Coelacanth Latemeria, a powerful predator with highly mobile, limb-like fins. It is usually about 5 feet (1.5 meters) long and weighs around 45 kilograms. Unlike most other fish, it gives birth to live young rather than laying eggs. © 2007 JakartaPost.

An isthmus oil pipeline, why not in Thailand? Silvio L. Emery
Malaysia's prime minister recently affirmed his government's intention to build a peninsula-spanning pipeline to pump oil from the Middle East. This ambitious project will lower crude oil transport costs to China, Japan, Korea and Taiwan and avoid transport through Singapore and the Straits of Malacca. It will reduce the risks of tanker accidents and pirate attacks in the strait and enhance regional energy security. The Malaysian project is estimated to cost US$14.2 billion. This includes one coastal refinery with a capacity of 200,000 barrels per day (bpd) and two major oil terminals, capable of handling supertankers on either end of the pipeline. Crude oil and refined oil products from Malaysia's west coast will be pumped to the east coast and then loaded onto tankers bound for Japan, China and South Korea. The savings in oil transport costs to consuming countries would come from shortening the shipping distance resulting in savings in the rental duration of very large crude oil tankers (two million barrels). The rental cost for such oil tankers is currently $250,000 per day and rising. The Thai government hopes to promote Thailand as an oil-refining and -trading centre that would rival Singapore. However, Thailand has no international oil-pipeline connections. Its oil-pipeline infrastructure consists of one 260-km trunk line and 110 km of additional local spurs, despite a 16-year effort by Thai Petroleum Pipeline Company (Thappline). By contrast the US has an extensive oil-pipeline network of 90,000 km of trunk lines, covering the entire country. Thailand's existing oil and oil-transport infrastructure is inadequate to meet the country's current and future growing demand. Thailand consumed an estimated 922,000 bpd of oil (mostly imported) in 2006, making it the second largest oil consumer in Southeast Asia. Approximately 40% of the cost of goods made in Thailand is transport-related. Thailand's petroleum costs can be significantly reduced by improving existing petroleum infrastructure. Currently, 84% of petroleum products are transported by truck and 16% by rail. Rail transport for oil products is used primarily for the North and Northeast. These transport methods are considerably more expensive than a pipeline system. This results in considerably higher fuel prices for upcountry consumers. With the current economic slump, Thailand should have a major project to stimulate the economy and increase employment. The pipeline project proposed here has two components: an Andaman Refinery/Pipeline Mega-complex (ARPM) in conjunction with one offshore oil terminal capable of unloading VLCCs or ULCCs on the Andaman Sea, and a national strategic petroleum reserve (SPR) storage capability. The project could be implemented in phases, and financed from the Oil Fund (rather than directly subsidising energy consumption) in combination with strategic international partners. The ARPM will consist of a refinery, offshore Andaman Sea port, a peninsular pipeline, and pipeline system through the country's northern and northeastern regions. To remain competitive, Thailand needs additional refinery capacity that can handle heavy sour crude oils. This would enable the utilisation of cheaper grades of oil, yet produce the same high-quality value-added products for domestic use or export. The pipeline project would significantly reduce domestic transport costs. The oil pipeline can also be opened to neighbouring countries, namely China, Laos, Cambodia and Burma. This alone will make the proposed investment worthwhile. A strategic petroleum reserve (SPR) should also be built. A 90-day supply of oil for Thailand would require a storage capacity of about 90 million barrels. This would minimise the impact of supply disruptions and price spikes on the Thai economy. Officially, current commercial storage should be enough for 30 days, however in practice only a 14-day supply is usually on hand. The SPR could be filled gradually at times when oil prices are low. A small portion of foreign currency reserves could be used for this purpose. Oil could be released from the reserve during price spikes. This would diversify Thailand's reserve holdings with a liquid asset. Geographically, Thailand can benefit from such an oil pipeline project, both domestically and internationally. China is the world's second