News Flash ...
MISC ready to offload bulkers
MALAYSIA - Malaysia International Shipping Corp has confirmed plans to sell almost its entire drybulk fleet enbloc to take advantage of high secondhand vessel prices. Dato' Shamsul Azhar bin Abbas, MISC managing director, said that the company was in the process of selling 30 drybulk carriers out of its current fleet of 36 bulk ships. The sale is thought to be worth $750m. He added that it was the shipping company's preference to sell the 30 ships enbloc, with a tender having just closed. Having already sold 15 handysize vessels to Precious Shipping for $98m earlier this year, MISC is planning to dispose of most of its remaining bulkers in order to focus on energy shipping and to take advantage of high secondhand vessel prices. "Bulk shipping is not within our strategic fit, our focus is to move towards the energy-related business," Dato' Shamsul said on the sideline of a Malaysian Shipowners' Association conference. MISC is 62% owned by Malaysian state oil and gas firm Petronas, and has concentrated increasingly on crude oil tanker and LNG shipping. "Bearing in mind the current strong secondhand market for vessels, most of the vessels are 15 to 16 years old, so we reckon now is the best time to catch on to the secondhand prices," he explained. MISC's bulk fleet consists of 36 ships comprising 11 panamaxes between five and 18 years old; nine handymaxes of nine to 10 years old; 15 handysizes and one multipurpose carrier of six to 19 years old. The company is selling the ships via a tender process run by Hong Kong & Shanghai Banking Corp and Citigroup, which has just closed. © tfinforma.com
Malaysia expands to meet demand
MALAYSIA - Malaysia is to keep on expanding its container ports to meet the strong growth in container shipping traffic. "In the ninth plan, we can expect more further expansion of the Malaysian ports because of this very strong growth," Malaysian Transport Minister Chan Kong Choy told reporters after the opening of a conference organised by the Malaysian Shipowners Association. Malaysia is currently in its eighth economic plan running from 2001 to 2005. The minister said that in a few years' time, the country would have a container port capacity of 15m teu or 20m teu per year. Unlike many other countries, Malaysia has adopted a supply-driven approach to container port capacity, building the facilities first and then attracting shipping lines to call. In the first nine months of this year, throughput at Malaysia's container ports was up 13.2% at 8.6m teu compared with 7.8m teu in the same period last year. "I must say this is very strong growth and we are quite confident by the end of this year we can register a total number of 11.5m teu," said the minister . Malaysia is already expanding its box ports with new capacity being built at Westport, Port Klang and the Port of Tanjung Pelepas. © tfinforma.com
Japan shippers in call for more dialogue
MALAYSIA - The head of the Japanese Shippers' Council has called for a greater dialogue between shippers and carriers, and for them to stop fighting over trivial issues. "More dialogue is necessary between shippers and carriers," Ted Kawamura, managing director of the JSC, told a conference organised by the Malaysian Shipowners' Association. Unlike the rest of Asia, where confrontation between shippers and carriers is the norm, in Japan the relationship is much more consensual. This is one of the reasons why the JSC has not joined the newly formed Asian Shippers' Councils grouping. "With Japan, we have somehow come up with a compromise where no-one is happy, but no-one is complaining," Mr Kawamura said. With rapid trade growth, he said that shippers and shipping lines could not spare the time to squabble over trivial issues, such as terminal handling charges. Campaigning against THCs has been at the forefront of Asian shippers' issues for many years. He called on shipping lines to listen to the shippers and for both parties to look at regional and national interests. However, with trades becoming increasingly imbalanced, Tuan Haji Abdul Aziz Meor Ngah, senior general manager of MISC's liner and logistics business, warned that there may be more surcharges in the future: "Maybe we will add a TIC: a trade imbalance cost." © tfinforma.com
Further shake-ups at PSA International
SINGAPORE - PSA International has undergone another round of management restructuring with two senior executives quitting the Singapore terminal operator. Robert Yap, chief executive of PSA's East Asia division, has left to return to the IT industry, which he left in 2000 to join PSA. His position is being left open as the company reviews the structure of his division. Also leaving is head of business development Kelvin Tan, who joined 18 months ago in a previous shake-up. Taking over is David Yang, formerly vice-president, East Asia division. PSA has also appointed a permanent chief executive for PSA India in the shape of HR Srinivasan, a former adviser to the port operator's parent Temasek Holdings. © tfinforma.com
MISC to exit bulker business
MALAYSIA International Shipping Corp (MISC) is speeding up its exit from the bulker business by disposing of 32 vessels, local media reported today. Managing director Shamsul Azhar Abbas confirmed the ‘en bloc’ sale, but has refused to disclose the price or the buyer. MISC currently has 36 bulkers including 11 Panamaxes. It sold 15 vessels in April and May this year to Thailand’s Precious Shipping. In its annual report, MISC explained that the sale was undertaken to take advantage of the increase in the second-hand value of bulk vessels. After the acquisition of American Eagle Tankers from Neptune Orient Lines last year, MISC has continued to focus on the energy sector through LNG, petroleum and chemical shipping besides offshore and heavy engineering. These constituted 90% of Group profits for the financial year ending 31 March, which amounted to M$2.3Bn ($605M). MISC, which is a subsidiary of state-owned Petronas, also wants to trim its fleet of 24 container ships. “Older and less efficient vessels” will be disposed of, while the focus on long-haul services will be retained. © Lloyd's Register - Fairplay Ltd 2004
Malaysia plans on transhipment
EXPANSION of the Malaysian ports of Tanjung Pelepas and Westport in Port Klang has been included in the Ninth Malaysia Plan – a development blueprint for 2006-2010. Transport minister Chan Kong Choy said that transhipment is viewed as a key growth driver for Malaysian ports, the Bernama news agency reports. Tanjung Pelepas, which is competing with Singapore for transhipment cargo, will be adding eight berths. This is in additional to the two berths that were completed last month which raised the port's annual design capacity by 1.5M TEU to 6M TEU. No information on the expansion at Westport was given. Chan expects major Malaysian ports to handle more than 15M TEU annually within the next few years. Last year, Malaysia’s leading ports moved over 10M TEU; for the first eight months in 2004 volumes have amounted to 7.6M TEU. © Lloyd's Register - Fairplay Ltd 2004
Korean shipping protection proposed
MEMBERS of Korea’s National Assembly have urged the government to implement measures to safeguard the interests of the domestic shipping industry.The lawmakers expressed concern that long-term contracts for transport of ‘strategic’ raw materials such as coal and iron ore by sea have been given to foreign companies. They were referring to domestic steel giant Posco and utility enterprise Korea Electric Power Co awarding contracts to Japanese shipowners. Lawmakers want such trades set aside for Korean operators, and suggested the setting up of exclusive companies to cater to large bulk carriage contracts. The government could lend support by joining with shipowners and shippers to float such enterprises, the members said. Korean owners have urged the government to permit employment of foreign seafarers without restrictions. Employing domestic crew entails more costs, which precludes competing with Japanese companies on price, owners have highlighted. Meanwhile, the Ministry of Maritime Affairs and Fisheries has proposed to the National Assembly to implement a tonnage tax system to boost the competitiveness of Korean shipping companies. © Lloyd's Register - Fairplay Ltd 2004
Singapore & Chile sign maritime MOU
SINGAPORE and Chile today signed an MOU on maritime co-operation that includes exchange of information in areas such as maritime safety, security and marine environment protection. Co-operation will also extend to recognition of seafarer certification, implementation of IMO conventions and maritime training, Singapore’s Maritime and Port Authority (MPA) said. The MOU was signed during the visit of Vice Admiral Rodolfo Codina to Singapore. Codina is director general in Chile's Directorate General of the Maritime Territory and Merchant Marine (DIRECTEMAR). “The MOU will enhance possibilities of developing joint projects that could build up the maritime capabilities of both countries,” said MPA chief executive Rear Admiral Lui Tuck Yew. © Lloyd's Register - Fairplay Ltd 2004
US marine legislation passed
TWO major bills with significant impact on the maritime industry passed the US House of Representatives yesterday and now go to the Senate for consideration – and likely passage there. The American Jobs Creation Act, which passed by 280 to 141 votes, repeals provisions for foreign sales corporations and extraterritorial income deemed illegal export subsidies by the World Trade Organization (WTO). Repeal of those provisions should bring to an end an EU programme of punitive tariffs on US goods. However, the bill goes further and imposes customs fees on imported merchandise to pay for enforcement programmes, institutes a tonnage tax for US-flag carriers in foreign trades that may be substituted for income taxes, and lifts an exemption (Subpart F) to the tax laws that required US investments in foreign-flag shipping to be reported as annual income. Also passed was a corporate tax overhaul bill, that also passed by 280-141, and ends tax subsidies for exports that the WTO has said violates global trade rules. The bill also provides tax breaks for domestic shipbuilding. Both compromise bills must be approved by the Senate and signed by President Bush before becoming law. The Senate is expected to take up both measures today. © Lloyd's Register - Fairplay Ltd 2004
Malaysia blasts 'lack of respect' for Malacca strait states
THE respect of the sovereignty of the littoral states of the Malacca Strait is key to any international arrangement to securing the busy waterway say senior officials from Malaysia and Indonesia. Malaysia’s Deputy Prime Minister Datuk Seri Najib Tun Razak criticised users of the key East – West waterway who take the Strait for granted in a keynote address to a Maritime Institute of Malaysia conference on the Straits of Malacca. “There are even those who forget that littoral states, among them sovereign nations in their own right, have the ultimate say over protection and preservation of the Straits,” he said. “Any assumption that its users have absolute freedom to utilise it including for military purposes reflects a lack of respect for the rights of littoral states and a misunderstanding of international law.” The busy waterway is one of the greatest areas of concern when it comes to the threat of maritime terror with it already a major blackspot for pirate attacks and there is increasing international pressure on the three littoral states to ensure security in the Strait. Echoing the Malaysian deputy Prime Minister’s view, Indonesian navy chief Adm Bernard Kent Sondahk said in a paper to be given on Tuesday: “The presence of foreign forces, the context sea lanes of communication, should be under the request of the coastal state. This matter is very important, because it concerns the national sovereignty of the coastal states.” Senior officials from the third littoral state, Singapore, were though conspicious by their absence among the speakers at the opening day of the conference. © 2004 Informa UK Limited
Pelepas volumes hit new high
PORT of Tanjung Pelepas (PTP) in Malaysia, which competes with Singapore for container transhipment cargo, has reported record throughput for the nine months to 30 September and for the third quarter. “The rise in volumes is attributed to the continuing global economic upturn, the increasing market share of local cargo and the addition of new services calling at PTP,” port managers said. Volumes for nine months rose 20% to 3.02M TEU with over 1M TEU handled in the third quarter. Local cargo handled rose 16%. PTP completed two berths in the third quarter as part of its second phase expansion and now has a total of eight berths of 360m each. The port is bringing in new equipment including more quay and yard cranes to deal with increasing capacity and volumes. © Lloyd's Register - Fairplay Ltd 2004
Malaysia warns foreign forces to stay out of Malacca strait by Melissa Goh
Malaysia has expressed willingness to have the international community help secure the Malacca Strait, provided the sovereignty of surrounding littoral states is respected. Making the comment, its Deputy Prime Minister Najib Razak also called for a comprehensive plan to protect the busy waterway from crime and terrorism. Addressing a regional conference on maritime security, Mr Najib warned users of the Malacca Strait against taking the waterway for granted and taking any unilateral actions to secure it. "There are even those who forget that littoral states, each of them sovereign nations in their own right, have the ultimate say over the protection and preservation of the Straits. Any assumption that its users have absolute freedom to utilise it including for military purposes reflects a lack of respect for the rights of littoral states," he said. The 960-kilometre strait, through which about half the world's oil supplies and a third of global trade passes, runs along the coasts of Malaysia, Indonesia and Singapore. The United States has several times offered to help the littoral states secure the Strait through a range of capacity building programmes. Among these - the provision of tools, a legal framework and speedy response to threats like piracy, smuggling and terrorism. The US has also stressed that it won't impose its will on the countries involved. Mr Thomas Doughton, Political Affairs Counsellor of the US Embassy, said: "They have the sovereign authority and responsibility for security along the strait, what they decide they want to accept from us is what we give to them, we are not forcing anything on anybody." Both Indonesia and Malaysia have however expressed skepticism about American involvement - they've opposed the idea of US marine patrols, fearing it may provoke Islamic militants Mr Najib said: "We are still studying the ramifications of that initiative. The important thing is the sovereignty of the littoral states, the ultimate responsbility to initiate any interdiction if necessary should be incumbent upon the littoral states." He said cooperation among the littoral states have been improving and there's now greater exchange of intelligence and better coordinated patrolling of the Strait. Malaysia meanwhile hopes that more countries that use the busy strait of Malacca would emulate Japan and contribute in protecting the strait that sees over 60,000 ships, carrying one third of world trade and half of global oil supply pass through its narrow waterway each year. © 2004 MCN International Pte Ltd.
Navies declare success for tripartite anti-piracy patrols
INDONESIAN and Malaysian navies have declared a sharp drop-off in piracy in Asia's vital Strait of Malacca due to coordinated patrols, but the Internation Maritime Bureau said it was too early to judge their success. Admirals from the two navies said no serious attacks or robberies had been reported against commercial ships in their waters of the strait, one of the world's busiest sea lanes, since they launched coordinated patrols along it in late July. "I think it (coordinated patrols) is successful," First Admiral Jurianto, of the Indonesian navy, told Reuters at a conference on security in the strait, which is estimated to carry almost a third of world trade. He did not give details. Indonesia, Malaysia and Singapore, which flank the 560 mile long waterway, launched coordinated patrols amid fears the strait could be come a target for terror attacks. They allowed their warships to swap information on each other's movements and on suspicious boats, so their patrols could be coordinated. They stopped short of joint patrols, where navies could sail side by side, moving in and out of each other's territorial waters, because of sovereignty concerns. But the International Maritime Bureau said on Tuesday it knew of at least six attacks on ships in the strait since July and it was too early to judge the success of the patrols. "They have not dried up because we are still receiving reports of attacks," said Noel Choong, head of the bureau's Piracy Reporting Centre in Kuala Lumpur. He said captains and chief engineers from two tugs had been kidnapped for ransom in Indonesian waters in the past two weeks. Just as the three littoral nations began to coordinate their patrols, the bureau reported 20 attacks in the Strait of Malacca in the first half of 2004, up 33% from a year earlier. (Reuters)
Malaysia warns against U.S. in Malacca Straits
Foreign powers must not dictate how Malaysia, Singapore and Indonesia protect the adjoining Malacca Straits shipping lanes from threats such as piracy and terrorism, Malaysia's deputy prime minister said on Monday. "The Straits of Malacca are ours to protect and preserve," Najib Razak, who is also defense minister, said at a conference on improving security in the pirate-infested waters. "There are those who forget that the (countries bordering the straits), each of them sovereign nations in their own right, have the ultimate say over the protection and preservation of the straits," he said. Najib did not name any country. However, Adm. Thomas Fargo, commander of U.S. forces in the Pacific, said in March that an American plan to heighten security in the waterway might require a detachment of elite U.S. troops to be stationed nearby. Indonesia and Malaysia have rejected the U.S. plan. Singapore ¡X traditionally a strong ally of Washington ¡X has embraced it. Najib said any assumption that foreign countries whose ships pass through the straits can use them for military purposes "reflects a lack of respect for the rights of littoral states and a misunderstanding of international law." Thomas Daughton, the political affairs counselor in the U.S. Embassy in Kuala Lumpur, said Washington was willing to help enhance security in the straits ¡X but only if it obtains "the consent, support and cooperation of the littoral states." "It does not seem either fair or reasonable that the heavy burden for maritime security in the Malacca Straits should fall exclusively on their shoulders," Daughton told the conference. "While observing international law and the unquestioned sovereign rights of the littoral states, there should be a way for other stake-holders to lend a hand." Malaysia, Singapore and Indonesia all have littoral areas, or coastlines, along the Straits of Malacca. About 50,000 ships ply the narrow passage each year. The United States has warned that terrorists could seize vessels for use as "floating bombs" to blow up key ports or cities, though no such plots have been reported. About 20 pirate attacks were reported in the Straits of Malacca in the first six months of this year. Joint naval patrols by the adjoining countries have curbed piracy, according to officials from all three. Speaking to reporters Monday, Najib said his country will listen to security-building ideas from others, including the United States, as long as they do not infringe on Malaysia's sovereignty. Copyright © 1999~2004 The China Post.
Warning on protection of strait: Najib tells 'foreign powers' not to interfere
KUALA LUMPUR - Foreign powers must not dictate how Malaysia, Singapore and Indonesia protect the Strait of Malacca shipping lanes from threats of piracy and terrorism, Malaysia's Deputy Prime Minister said yesterday. 'The Strait of Malacca is ours to protect and preserve,' said Datuk Seri Najib Razak, who is also Defence Minister, at a conference on improving security in the pirate-infested waters. 'There are those who forget that the countries bordering the Strait of Malacca - each of them sovereign nations in their own right - have the ultimate say over the protection and preservation of the strait,' he said. Datuk Seri Najib did not name any country in his speech. However, Admiral Thomas Fargo, commander of United States forces in the Pacific, said in March that an American plan to heighten security in the Strait of Malacca might require a detachment of elite US troops to be stationed nearby. Datuk Seri Najib said any assumption that foreign countries whose ships pass through the Strait of Malacca can use them for military purposes 'reflects a lack of respect for the rights of littoral states and a misunderstanding of international law'. Malaysia, Singapore and Indonesia all have littoral areas, or coastlines, along the Strait of Malacca. About 50,000 ships ply the narrow passage each year. The US has warned that terrorists could seize vessels for use as 'floating bombs' to blow up key ports or cities, although no such plots have been reported.Indonesia's navy chief, Admiral Bernard Kent Sondakh, said in a recent media interview that terrorism and piracy threats in the strait were overblown. He suggested that foreign governments, including Washington, were playing up the threat because they were interested in controlling the waterway for economic reasons. 'The world economy is now moving toward the Asia-Pacific. Whoever controls the Malacca Strait, the Sunda Straits and the Makassar Straits controls the economy of the Asia Pacific,' Datuk Seri Najib said. The Sunda and Makassar straits are other waterways in the region. About 20 pirate attacks were reported in the Strait of Malacca in the first six months of this year. Joint naval patrols by the adjoining countries have curbed piracy, according to their officials. -- AP © 2004 Singapore Press Holdings.
KL may look into joint strait patrols: Malaysian navy chief says littoral states can go beyond coordinated patrols, but rejects warnings that they need US help
KUALA LUMPUR - Malaysia might consider joint patrols with Indonesia and Singapore in the piracy-prone Malacca Strait - a step further than current arrangements, which involve only coordinated patrols. Speaking on the sidelines of a three-day conference on the Malacca Strait, Malaysian navy chief Anwar Mohamad Nor brushed aside a warning by experts that the countries needed help from the United States to deal with any potential terror attacks. 'We have a structure and a contingency plan to mitigate the potential threat,' he said. 'With the present coordinated efforts by the littoral states, at the moment, they are enough to deal with any possible threat of maritime terrorism.' But he did not rule out moving into the next step of having joint patrols. Currently, the three countries do not conduct joint patrols in the busy waterway due to sovereignty issues. In July, Indonesia, Malaysia and Singapore launched coordinated patrols after fears were expressed by the US that terrorists could hijack a tanker and turn it into a floating bomb. Under this arrangement, troops operate under their own national commands, and each country's naval vessels are not allowed to enter the territorial waters of another. The 960km strait, through which about half the world's oil supplies and a third of global trade passes, runs along the coasts of Indonesia, Malaysia and Singapore. Malaysia and Indonesia had previously rejected the idea of US patrols, fearing it would attract Islamic militants and impinge on their sovereignty. To back their case, admirals from the Malaysian and Indonesian navies said no serious attacks or robberies had been reported against commercial ships in their part of the strait since they launched the coordinated patrols in late July. 'I think they (coordinated patrols) are successful,' First Admiral Jurianto of the Indonesian navy said. He added that user states must share responsibility for the safety and security along the strait by sharing information and intelligence. Some experts, however, still warned of terrorist attacks in the busy strait even after the coordinated patrols were launched in July. The International Maritime Bureau said yesterday that it knew of at least six attacks on ships in the strait since July, and it was too early to judge the success of the coordinated patrols. 'We are still receiving reports of attacks,' said Mr Noel Choong, head of the bureau's Piracy Reporting Centre in Kuala Lumpur. He said captains and chief engineers from two tugs had been kidnapped for ransom in Indonesian waters in the past two weeks. The bureau reported 20 attacks in the strait in the first half of this year - up 33 per cent from a year earlier. Hawaii-based maritime policy expert Mark Valencia warned that the littoral states were not ready for a terror attack in the strait. 'They could use some assistance, not direct naval presence, but certainly intelligence, technology in terms of picking up unusual activity, communication equipment, and training on how to act, what to see and what to look for,' he said. -- AFP, Reuters. © 2004 Singapore Press Holdings.
NAJIB: OTHERS SHOULD HELP PAY FOR SECURITY
KUALA LUMPUR - There should be no more free rides for countries using the Malacca Strait, and nations that use it must contribute towards the safety and security of the busy waterway, said Malaysian Deputy Prime Minister Najib Razak. Speaking at a three-day conference on the Malacca Strait on Monday, Datuk Seri Najib, who is also the Malaysian Defence Minister, said that many of those who use the strait took it for granted. He said Malaysia was ready to continue engaging its neighbours in talks to work together for a common benefit. The Maritime Institute of Malaysia had stressed that apart from Japan, no other country has contributed meaningfully to the protection of the strait. The Institute said other user nations should now assist the littoral states - Indonesia, Malaysia and Singapore - to ensure safety and security in the strait. © 2004 Singapore Press Holdings.
Stay out of straits, KL tells foreign powers
KUALA LUMPUR - Foreign powers must not dictate how Malaysia, Singapore and Indonesia protect the adjoining Malacca Straits shipping lanes from threats such as piracy and terrorism, Malaysia's Deputy Prime Minister said on Monday. 'The Straits of Malacca are ours to protect and preserve,' Datuk Seri Najib Razak, who is also Defence Minister, said at a conference on improving security in the pirate-infested waters. 'There are those who forget that the (countries bordering the straits), each of them sovereign nations in their own right, have the ultimate say over the protection and preservation of the Straits,' he said. He did not name any country. However, Admiral Thomas Fargo, commander of US forces in the Pacific, said in March that an American plan to heighten security in the waterway might require a detachment of elite US troops to be stationed nearby. Indonesia has rejected the US plan. Singapore has embraced it. Datuk Seri Najib said any assumption that foreign countries whose ships pass through the straits can use them for military purposes 'reflects a lack of respect for the rights of littoral states and a misunderstanding of international law'. Malaysia, Singapore and Indonesia all have littoral areas, or coastlines, along the Straits of Malacca. About 50,000 ships ply the narrow passage each year. The United States has warned that terrorists could seize vessels for use as 'floating bombs' to blow up key ports or cities, though no such plots have been reported. Indonesia's navy chief, Admiral Bernard Kent Sondakh, said in a recent media interview that terrorism and piracy threats in the straits were overblown. He suggested that foreign governments were playing up the threat because they are interested in controlling the waterway for economic reasons. Joint naval patrols by the adjoining countries have curbed piracy, according to officials from all three. Speaking to reporters on Monday, Datuk Seri Najib said his country will listen to security-building ideas from other countries, including the US, as long as they do not infringe on Malaysia's sovereignty. © 2004 Singapore Press Holdings.
Japan calls for IMO role in securing Malacca Strait
A Japanese official has called for more equitable cooperation among the major users of the Straits of Malacca to help littoral states cope with safety, security and environmental protection of the strategic sealane. [Full news @ http://business-times.asia1.com.sg/shippingtimes] © 2004 Singapore Press Holdings.
Littoral states ready to protect safety of Malacca Straits
KUALA LUMPUR, Oct. 11 (Xinhuanet) -- The safety and security of the Straits of Malacca should continue to be protected and preserved especially by the littoral states, Deputy Prime MinisterNajib Tun Razak said Monday. "If we succeed, not only will we reap the rewards, but the whole world will be able to partake in the benefits of having a key passageway between East and West that is safe and secure," Najib said in his keynote address at the conference on Straits of Malacca: Building a Comprehensive Security Environment here. "If we fail, the consequences are dire indeed and we shall haveto bear the burden of fear, insecurity and a possible erosion of our sovereignty," he said. The three-day conference is organized by the Maritime Instituteof Malaysia with co-organisers two Malaysian Universities. For Malaysia, Najib, who is Defense Minister, said that it was always ready to engage its neighbors in talks and discussion to work together in ensuring the safety and security of the Straits. He said that the Straits was the key artery of the global economy that serves and facilitates trade between East and West. Every year, over 60,000 cargo ships pass through the 926-KM long Straits which links the Pacific Ocean and the Indian Ocean. "The freedom of navigation and free flow of trade facilitated by the Straits have contributed trillions of dollars to the GDP (gross domestic product) of trading nations and have led directly or indirectly to the creation of millions of jobs in those nations," said the Deputy Prime Minister. He said that therefore, any interference with the free flow of trade and navigation on the Straits would adversely affect not just the littoral states but also other trading nations. The maintenance of security in the Malacca Straits was also important as it was the main passageway of oil transportation where about 11 million barrels of oil from West Asia were shipped to East Asia daily via the Straits, he said. While there is a common recognition of the significance of the Malacca Straits, Najib however said it was a sad fact that many who use the Straits took it for granted and forget the rights of the littoral states. He said therefore military uses in the Straits must adhere strictly to the provisions of international law. The Defense Minister said that the littoral states must always be on guard and continuously be prepared to take pre-emptive and proactive measures to protect the Straits from pirates, sea-robbers and possible maritime terrorist attacks. Meanwhile, the threats to the biodiversity and ecology of the Malacca Straits should also be a matter of grave concern for all parties interested in the safety and security of the Straits, he said. To heighten the security situation, navies of Malaysia, Indonesia and Singapore launched the tripartite coordinated patrols in Malacca Straits in July this year, which involves 24-hour patrols in the straits throughout the year. © Xinhua News Agency.
ASEAN agrees to set up new fund for environmental projects by Johnson Choo
The ASEAN region may see drier conditions towards the end of the year and early next year because of a weak El Nino effect. This means any indiscriminate burning may blanket the region in haze again. This was one of the issues discussed by ASEAN Environment Ministers at an informal meeting in Singapore on Thursday. The ministers also praised Singapore's Meteorological Service for warning neighbouring Asean countries about hotspots. Haze from one ASEAN state blowing into a neighbouring country is nothing new. Yet the one-year-old Transboundary Haze Pollution Agreement has only been ratified by six of the 10 ASEAN members. Among those yet to adopt the agreement is Indonesia - home to more than 1,000 forest fires and indiscriminate burnings. Yet the ASEAN administration is not too worried. Mr Ong Keng Yong, ASEAN Secretary-General, said: "As they study this agreement, parliamentarians are asking questions, 'we are happy, we are not happy, how are we going to deal with this situation of sustainable forest management…illegal logging? "How are we going to deal with people who operate in our forest but based in neighbouring countries? So these are questions which parliamentarians in Indonesia ask, I would say very legitimately, because they are asked to ratify an agreement, and before the ratification can take place, these things have to be asked." Meantime, the Indonesian government has been cracking down on fire starters. Seventeen plantation owners are being investigated, and at least one Sumatran company has been charged with indiscriminate burning. Meanwhile, ASEAN Environment Ministers have agreed to set up a fund for environmental projects. Mr Ong added: "Most of our ASEAN countries are developing economies and they may not have that kind of funds on their own, so the idea of this environment fund is to have everybody chip in a certain amount to be decided. If there is such a project, (for example), to protect the coastal and marine areas, we can participate and share in funding part of the cost." The ministers also discussed various proposals to promote environmentally sustainable cities in ASEAN. A list of best practices, sourced from all over the world, is being discussed, and member nations are encouraged to adopt those that would help lead to clean air, clean water and clean land in the 22 ASEAN cities. - CNA © 2004 MCN International Pte Ltd.
Detained Singapore divers return from Indonesia by Tze Siang & Wong Siew Ying
The 21 Singaporean and 11 foreign divers detained over the weekend by the Indonesian Navy are back tired but safe. They were supposed to have returned on Sunday after a dive trip to the South China Sea, but were stopped by the Indonesian Navy and detained on Bintan. At least one diver operator has since suspended trips to the area where the dive group was intercepted. "Yes, all the divers are back, we are very fine. We are treated very well by the Indonesian people." The divers arrived at the Tanah Merah Ferry Terminal late on Wednesday - greeted by anxious relatives and friends. Despite being kept on their vessel, the MV White Manta for four days, the divers say they were well-treated. Genevieve Chye, Diver on board White Manta, said: "We were confortable, we had food to eat, we had enough drinks, made new friends, new people, It was an interesting experience." The group of 38 were diving at the Seven Skies Wreck when they was stopped by the Indonesian navy. The navy personnel claim the divers strayed into Indonesian waters. Dive operator Vincent Chew said he had led many trips to the area in the last 14 years, and has never encountered this problem. Other Singapore dive operators agree. Dave Yiu, Owner of Friendly Waters Seasports, said: "There is no purpose for operators like ourselves to intentionally go into Indonesia illegally to try and steal a dive. If we knew for sure that the Seven Skies was in Indonesian Waters we would have definitely gotten a rightful permits to dive in...very precise measurements need to be made because it's such a borderline case." Just to be on the safe side, Mr Yiu has decided to suspend dive trips to the Seven Skies Wreck. But Vincent says it is business as usual, but he is not taking any chances the next time... even if it means a lot more paperwork. Vincent Chew, Owner of Vincent Dive Centre, said: "First of all we need to apply a sailing permit from Jakarta, we do have sailing permit, secondly you need to have an agent in Batam to handle your immigrantion procedures and thirdly we need to apply for a special diving permit from the Indonesian authorities." Still, dive operators say this unfortunate incident will not rock the boat - at least where business is concerned. Greg Doyle, CEO of Penetration Divers, said: "I don't expect there'll be much impact, I think the incident was unfortunate. I think divers may question, they may scrutinise more closely the itinerary of trips and they may want to see that the appropriate paper work have been dealt with by the operator." The diving community is talking about what had caused the incident and how to prevent it from happening again. They also hope authorities from various countries can provide clearer guidelines to help them comply with the rules and regulations. - CNA © 2004 MCN International Pte Ltd.
IMO to clean up shipbreaking
THE International Maritime Organization today announced plans for a mandatory ship-breaking regime. In a significant break from existing voluntary IMO guidelines, international delegates attending the 52nd Session of the Marine Environment Protection Committee in London agreed to develop a raft of ‘legally binding and globally applicable’ measures under the authority of a new IMO instrument. Elements already under consideration include a reporting system for vessels ready for the scrap-yard, licensing of shipbreakers, an obligation on shipowners to use approved recycling yards and the creation of a ‘Green Passport’ for new ships. Described by one IMO official as “a turning point” in the campaign to clean up shipbreaking, the plans have won cautious support from both industry representatives and environmental groups. While preliminary details of the proposed new regime have already been hammered out during this week’s meeting, the bulk of the work will now be left to a joint IMO, International Labour Organization and United Nations Environment Protection working group scheduled for February 2005. © Lloyd's Register - Fairplay Ltd 2004.
Singapore, Malaysia should look forward and work together: SM Goh by Farah Abdul Rahim
Senior Minister Goh Chok Tong, who is handling Singapore's negotiations with Malaysia, says both sides should look forward to a cooperative working relationship and not be bogged down by past issues. He said this in response to questions from foreign journalists at the Global Entropolis @Singapore event. Senior Minister Goh says he will make a trip to Kuala Lumpur by year's end to meet with Malaysian Prime Minister Abdullah Badawi. The last time they met was earlier this year, when Mr Goh was still prime minister. Mr Goh said the upcoming meeting would be the first step to make progress on negotiations on the outstanding issues, which include water and the proposed bridge to replace the Causeway. Asked if there would be a change in approach to discussions, Mr Goh said Malaysia had earlier signalled its preference to deal on an issue-by-issue basis. He said Singapore would accept this approach if it is the preferred option of the Malaysian leadership. But Mr Goh reiterated there would not be any negotiation through the media, as agreed with Mr Abdullah. As such, he did not want to discuss Singapore's position or expectations, as bilateral talks are a sensitive process. "I would not want to negotiate through the press. So I would not give any inkling as to Singapore's position on the negotiations. I would not be signalling to Malaysia through the press on what our expectations are," Mr Goh said. Instead, the best way is for Mr Goh to meet Mr Abdullah himself and try to resolve the issues. He added both leaders have a warm relationship based on mutual trust. This is an important factor, and assured there would be no tricks up their sleeves during the negotiations. "I trust him and I hope he trusts me as well. And if we negotiate, if I tell him this is what I can do, this is what I can't do and I propose to resolve it in a certain way, he can be sure that behind what I've offered, there'll be no tricks, there's nothing hidden," Mr Goh said. Mr Goh also pressed home the point that ultimately, both leaders would still have to look after their own national interests. At the same time, he said it does not make sense for both sides to be bogged down by the outstanding bilateral issues. Instead, he expressed hope that Singapore and Malaysia should look forward, as there is much to gain by working together. - CNA © 2004 MCN International Pte Ltd.
Singapore-Malaysia Bilateral Relations
TRANSCRIPT OF SENIOR MINISTER GOH CHOK TONG'S INTERVIEW WITH JOURNALISTS FROM THE REGIONAL JOURNALIST VISIT PROGRAMME AND INDIAN JOURNALIST VISIT PROGRAMME, IN CONJUNCTION WITH GLOBAL ENTROPOLIS @ SINGAPORE, ON 14 OCTOBER 2004
On Singapore-Malaysia Bilateral Relations:
Dorothy Teoh: “Senior Minister, regarding Singapore-Malaysia bilateral ties, well, the issues are complex. How do you propose to go about resolving them and will you be setting a timeframe for the resolution?”
SM: “It’s not advisable to set a timeframe, because then you are under an artificial deadline. If you don’t meet the timeframe, everybody will comment that there has been no progress in the negotiations - it is a failure. That would in itself complicate matters. The issues have been there for many years - some as many as 10 years - so we can wait a few more months, if necessary. Well, I have told my MFA to tell Prime Minister Abdullah Badawi’s office that I will make a visit to Kuala Lumpur before the year is up. So that is the first step to make progress on our bilateral negotiations on the issues which are still outstanding.”
Dorothy Teoh: “Well, I was just wondering whether there will be a change in the way that these issues have been dealt. For example, will the package of issues be broken up and dealt with separately? Will some issues be fast-tracked, for instance?”
SM: “Malaysia has signalled that it would like to break up the package into individual components. I mean, that was decided by (former) Prime Minister Mahathir and Prime Minister Abdullah Badawi also preferred to deal with it issue by issue. So if that is his preferred approach, we would accept his approach. But I would not want to, as I’ve agreed with Prime Minister Abdullah Badawi, negotiate through the press. So I would not give any inkling as to Singapore’s position on the negotiations. I would not be signalling to Malaysia through the press on what our expectations are. It’s a sensitive process, as you can appreciate. So it’s best that I meet Prime Minister Abdullah Badawi privately and then we try to resolve the issues. Now, the point I want to make is that we have a new Prime Minister in Singapore. He and Prime Minister Abdullah Badawi should look forward. They should not be bogged down by outstanding issues from the past. I am honoured that both Prime Ministers have confidence in me, using me as the interlocutor to resolve the issues.”
Dorothy Teoh: “Do you think that, well, you’re said to have a warm personal relationship with Pak Lah, So how much of a bearing do you think this will help?”
SM: “Oh, it’s important. Trust is important. And because of this warm relationship, there is trust. I trust him and I hope he trusts me as well. And if we negotiate, if I tell him this is what I can do, this is what I can’t do and I propose to resolve it in a certain way, he can be sure that behind what I’ve offered, there’ll be no tricks, there’s nothing hidden. So, this trust element is an important issue when you negotiate.”
Dorothy Teoh: “Which (i.e. trust) was missing in the past?”
SM: “Which was less conspicuous in the past. But let me emphasise that he (Prime Minister Abdullah Badawi) would have to look after the national interests of Malaysia and I have to look after the national interests of Singapore. It doesn’t mean that because of trust, we can resolve all issues, because there are certain issues which are in fact difficult to resolve.”
Dorothy Teoh: “In particular?”
SM: “I do not want to specify the issues. It only complicates matters. But I would try to resolve these issues. It makes no sense for us to be bogged down by these issues. Let’s look forward and cooperate for mutual benefit. There is much to gain by working together.”
[Source: MICA Date: 16 October 2004] Copyright © 2004 MCN International Pte Ltd.
IMO to set up scrap report system
THE IMO has agreed to develop a reporting system for scrap-ready vessels, according to documents obtained by Fairplay. Details of the reporting system came amid news on Friday that the UN agency’s Marine Environment Protection Committee was tentatively exploring the possibility of creating a mandatory ship-breaking system. The new reporting system should be developed according to several principles including transparency, efficacy, uniform applicability and respect for commercially sensitive information. The MEPC said the system should carry the minimum administrative burden possible and take into account the peculiarities of international maritime transport. At the close of the session, the MEPC had developed an outline of the ship-reporting system detailing what, where and to whom information should be reported. The International Chamber of Shipping’s representative expressed support for a ship-reporting system, but cautioned that the notification procedure should not lead to a “permit to recycle”. In a possibly contentious decision, IMO envisions that the flag and scrapping states will have the primary role for ensuring the ship-reporting system’s proper application. © Lloyd's Register - Fairplay Ltd 2004.
MISC takes time to refocus and cut dependency on LNG
MALAYSIA – Malaysia International Shipping Corp is aiming to refocus its business in order to reduce its reliance on LNG shipping for its profits. “With the refocusing of our portfolio, we are going to reduce LNG’s share by more than 10% over the next five years. The bulk of that will be skewed towards the petroleum business,” Datuk Shamsul Azhar Abbas, chief executive and managing director of MISC told The Star newspaper at the weekend. At present, LNG shipping accounts for 67% of its profits while petroleum shipping provides 27%. With last year’s purchase of American Eagle Tankers, MISC has become the world’s second largest owner of aframax tankers and is looking to this to change the profile of its business. “We acquired America Eagle Tankers, which is a good buy, and that has given us a foothold where the Atlantic business is concerned,” he said. “What we plan to do is to integrate AET’s petroleum business with ours.” Much of MISC’s fleet expansion focuses on the LNG sector with the company expanding its fleet of LNG tankers from 17 at present to 28 by 2008. Datuk Shamsul said that, as of March 31 this year it had committed M$6.2bn (US$1.6bn) to its fleet expansion. The company is also selling off some of its older vessels to reduce its fleet’s average age from nine years old to seven.© Lloyd's Register - Fairplay Ltd 2004
Philippines may raise port charges
THE Philippine Ports Authority (PPA) is considering imposing a 20% increase in port charges in an effort to boost government revenue. But the plan, which will run counter to the government’s aim to reduce transport cost, is expected to face stiff opposition from port users. The PPA said the increase would serve to ease the fiscal crisis the government currently faces. A PPA source said a 20% across-the-board increase would lift PPA revenue by approximately PhP180M ($3.21M). PPA GM Oscar Sevilla said the authority has been profitable, despite not being able to increase port charges last year. He said the authority had adjusted its revenue forecast for the year to PhP1.6Bn, from the initial PhP1.3Bn due to efficiencies in port services. Revenues are expected to reach PhP5Bn. The PPA contributes 50% of its income to the national treasury. © Lloyd's Register - Fairplay Ltd 2004
Singapore, Malaysia and Indonesia making right moves against piracy: think tank by Alastair Wanklyn
Piracy in the seas of Southeast Asia spiked in the past few years but an international security think tank has credited Singapore, Malaysia and Indonesia with making the right moves to counter it. In its annual report, the International Institute of Strategic Studies said trilateral sea patrols by these states can be a possible model for further efforts against piracy and maritime terrorism. Whether it is a forthcoming front in the war on terror, or whether it is just an old aggravation that will not go away, piracy is being taken increasingly seriously by nations in Southeast Asia. The London-based institute says there is growing military cooperation by affected states across their borders, and it is a possible new trend in maritime security. Tim Huxley, International Institute of Strategic Studies, said: "Trilateral patrols between Indonesia, Singapore and Malaysia have been underway since July. These are co-ordinated patrols in which the maritime security forces of the countries concerned patrol within their own territorial waters but it is a significant development that these have gone beyond the previous bilateral patrols." The report's authors also pay tribute to the five-power defence arrangements of Malaysia, Singapore, Britain, New Zealand and Australia. This group now practises maritime terrorism scenarios in annual military exercises. But the report's writers says there are significant weaknesses in Southeast Asia too, mainly Indonesia. Mr Huxley said: "The Indonesian security forces, the navy and maritime police, are still very weak and under-budgeted and that provides an opportunity for piracy on the Indonesian side of the Straits." Chris Horrocks, Secretary General, International Chamber of Shipping, said: "It has been getting worse, the attacks have been getting far more violent." Indonesia is a worry for the International Chamber of Shipping in London. Mr Horrocks says he welcomes any report that highlights this weakness. He adds: "Indonesia has always been the biggest problem country in the region. We tend to talk about the Malacca Straits but Singapore itself has been largely free of incidents, Malaysia has tackled them largely effectively in the last three or four years, Indonesia with its - what - 14,000 islands, an enormous coastline and of course significant economic issues has barely started to tackle the problem in a really efficient way." Not only have pirate attacks spiked in the past year or so, they've also got nastier, according to the International Chamber of Shipping. It says some pirates now seize crew members for ransom. This is a trend that leads some analysts to fear that non-state actors, international militants, could be turning to piracy for funds. Copyright © 2004 MCN International Pte Ltd.
Malaysia urges Asian nations to protect strategic waterways
Asian countries still needed to improve security in some of the world's busiest commercial waterways amid increased fears of piracy and maritime terrorism, a conference heard on Monday. Malaysia's transport minister Chan Kong Choy told the two-day meeting on maritime security that some shipping lanes would remain vulnerable unless they were protected vigilantly. "It is time for Asian countries with busy waterways to recognize the potential threats and problems that may arise if shipping lanes are not monitored and enforced properly," Chan said. Singapore and Malaysia are already discussing the possibility of providing security on ships plying the Malacca Strait to guard against terrorist attacks, Singapore's Deputy Prime Minister Tony Tan said in August. Chan did not identify any Asian country that needs to step up security, but Noel Choong, regional manager with the International Maritime Bureau in Kuala Lumpur told AFP that neighbouring Indonesia still lagged behind. "We would like to see countries like Indonesia beefing up its patrols because a lot of piracy occurs in Indonesian waters," he said. Choong said there had been two confirmed kidnap and ransom cases in the Malacca Strait off the coast of Belawan in Indonesian waters this month. "It's not a very good sign. These are serious crimes. We had hoped that with the coordinated patrols, these incidents would decrease. But this is not the case," he added. Malaysia, Singapore and Indonesia in July began coordinated patrols in the Malacca Strait, a narrow waterway that hosts one of the the world's busiest shipping lanes. But Malaysia has ruled out the idea of US marines helping to patrol the waterway, saying such a move would merely provoke Islamic militants. Chan said Asia, which accounts for the largest concentration of shipping lines in the world and generates more than 48 percent of the world's container throughput, needs to ensure the safety of its shipping routes. Among the important waterways in the region are the Malacca Strait, South China Sea, Sunda Strait, Lombok Strait, Straits of Makassar, Sulawesi Sea, Philippines Sea and the Bay of Bengal. Chan said these sealanes need to remain safe and secure to foster sustained growth and development as they provided "vital links between our region to major markets in China, North America, Europe and Japan." Chan did not specify the nature of threat but neighbouring Singapore has expressed fears pirates could team up with terrorists and mount a devastating attack on the Malacca Strait to cripple global trade. Traffic in the Malacca Strait - which carries half the world's oil and a third of its trade - has risen to over 62,000 in 2003 compared to nearly 44,000 in 1999, he said. Key Asian shipping nations have met a deadline to implement anti-terrorist measures for ports and vessels. Hong Kong and Singapore, two of the world's busiest ports, have reported 100 percent compliance with the International Ship and Port Facility Security code which went into effect globally last July. The code, adopted in December 2002, requires ports and ships to draw up stringent plans to prevent a maritime version of the September 11, 2001 attacks in the United States in which terrorists turned hijacked planes into guided missiles. - AFP © 2004 MCN International Pte Ltd.
Malaysia to fund Nigerian cabotage
AFFCOM, a Malaysian consortium, is looking to provide a N28Bn ($200M) loan facility to support cabotage operations in Nigeria. According to reports by newspaper This Day, Nigeria’s National Maritime Authority (NMA) has signed a Memorandum of Understanding with AFFCOM concerning the loan. The fund will be used to help local business acquire ships to participate in cabotage activities. The need for foreign funding to provide such support was referred to recently by Ferdinand Agu, the NMA ‘s DG, because of the lack of suitable local funding; the local Ship Acquisition and Ship Building Fund has been suspended. Agu has told local businesses that the search for other internationally-sourced funds, in addition to the Malaysian investment, continues. AFFCOM, headed by Dato Paduko Long Moh’d Nur Affend, has indicated that the Malaysian investors will cede control of any shipping operations in coastal waters to local companies.
© Lloyd's Register - Fairplay Ltd 2004.
Singapore set for arbitration
THE Singapore Chamber of Maritime Arbitration will be launched on 8 November, chairman of the Singapore Maritime Foundation (SMF) Teo Siong Seng disclosed today. The move will be a significant step forward in fulfilling the industry’s need for a speedy and reliable resolution of shipping disputes within the region, Teo said. SMF is a private sector initiative supported by the government through the Maritime and Port Authority. The growth of ship finance and marine insurance sectors will also be part of a clutch of measures to develop Singapore as an International Maritime Centre (IMC), Teo said. To attract talent into the maritime industry, SMF will kick off an awareness campaign amongst the general public and youth alongside the maritime community. The maritime industry in Singapore currently employs 120,000 people. According to official projections 200,000 would be employed by 2018. “Therefore there is great employment potential here,” Teo said. The maritime industry offers careers equally suitable to both men and women, he pointed out and said that foreigners with appropriate skills would also be welcome.
© Lloyd's Register - Fairplay Ltd 2004.
Singapore studies ‘creative’ funding
Singapore is studying more “creative” ship financing options, on the lines of German KG Funds or the UK tax lease system. The industry promotional body Singapore Maritime Foundation has highlighted ship finance as an area in which the country needs to strengthen its presence. SMF chairman Teo Siong Seng said he would like to see more “creative” types of financing being offered in Singapore, to bolster its position as an International Maritime Centre. “We do not have the length and breadth of financing,” he said. Mr Teo is himself a major shipowner as managing director of Pacific International Lines. Rear Admiral Lui Tuck Yew, SMF board member and chief executive of the Maritime & Port Authority of Singapore, said that a working group had been formed to look at how to boost ship finance in Singapore. He said one of its objectives was to identify new products that Singapore could offer, much as Germany has its KG Funds and the UK has its tax lease scheme. “So is there something Singapore could offer that could make attractive for ships finance?” he said. “People are looking at some kind of ship leasing business.” © Informa Asia Publishing Ltd.
Singapore in drive to promote maritime careers
Promotional body, Singapore Maritime Foundation, is launching the ‘Maritime Now!’ campaign in an effort to attract more young people and professionals to take up maritime careers. Singapore, like many developed maritime nations, has found it difficult to attract people to take up a career in the industry. At present, the maritime industries in Singapore employ 120,000 people; however, this number is set to nearly double to 200,000 by 2018. “There is therefore great employment potential here,” SMF chairman Teo Siong Seng said. SMF board member Dato’ Jude Benny said that they had found that young people largely associated maritime careers in Singapore with the port and shipyards. They were largely unaware of white collar opportunities such as ship broking and ship finance. He noted that there were very few Singaporeans working in the ship finance sector. As part of the Maritime Now! programme, SMF, along with its partners, will provide educational and careers talks to students, and programmes such as ports and ship visits and road shows. But, although it recognises the local manpower shortage, Singapore is still aiming to attract foreigners into the maritime industry. “We also welcome foreigners with the appropriate skills to join us. If they can contribute and add value, the opportunities are there,” Mr Teo said. © Informa Asia Publishing Ltd.
EU pollution move blocked by Bob Rust
Greece, Cyprus and Malta have blocked a move by the European Union (EU) to force member states to impose minimum criminal penalties on marine polluters. The showdown came today at a Luxembourg meeting of EU justice ministers. The proposal is now thrown back in the laps of EU heads of state who will meet in a Brussels summit next week. The post-Prestige proposal, intended to prevent individual member states from adopting lax enforcement regimes, would require each EU member state to set minimum penalties for various offenses related to marine pollution ranging from one to 10 years in prison. Minimum fines for the offenses in question would range from EUR 150,000 ($190,000) to EUR 1.5m with no requirement of prescribing a maximum. All links in the transport chain would be targets from the shipowner to the master and crew. Classification societies would also be exposed. During heated debate in today's meeting, Malta's justice minister Tonio Berg is said to have been especially indignant at the majority's proposal, whose brunt would fall mainly on the three little giants of European shipping. Sources speaking to Luxembourg media quote him as protesting that " France and England would never have been treated this way". Greek government spokesman Evangelos Antonaros said: "Greece has no interest in contributing to a criminalisation of maritime labour and no intention of doing so. It is others, not we, who are responsible for causing environmental catastrophes." Besides objecting to the criminal penalties, Cyprus, Malta and Greece are holding out for a ceiling of EUR 3m on penalties imposed on shipping companies. The proposal can still pass a second reading by the European Parliament. The inclusion of criminal penalties requires the unanimous consent of EU member states. © TradeWinds.
USCG targets ferry security by Dale Wainwright
The US Coast Guard (USCG) and the US Transportation Security Administration (TSA) are leading an interagency team studying ways to enhance the security of ferry systems. The National Ferry Security Study Team, which began work in July, is focusing on issues involving the screening of people, vehicles and baggage for explosive devices. It is assessing screening technologies, model the potential consequences of an attack, examine the socio-economic effects of various screening strategies and seek to measure the deterrent effect of random screening. “This summer’s implementation of security standards was a major step in our efforts to ensure the safety and security of the nation’s ferries,” said Rear Admiral Thomas Gilmour, assistant commandant for marine safety, security and environmental protection. “These studies build on those efforts and will aid decision makers by providing them solid data on which to base security requirements,” he added. In addition to the USCG and TSA, the team also includes the Homeland Security Institute, and the Department of Homeland Security's Science and Technology and Information Analysis and Infrastructure Protection directorates. The team was formed in July, following the implementation of the Maritime Transportation Security Act of 2002. The act requires the implementation of security measures on vessels and at port facilities in order to protect US ports and waterways from a potential terrorist attack. Ferry security is said to have become a “high priority” of the Department of Homeland Security since the attacks in the US on 11 September 2001. “The threat to ferries is real and we must reduce their vulnerabilities,” said Captain Frank Sturm, chief of the Coast Guard’s office of port, vessel and facility security. “It is vital that we have valid data to ensure that the actions we are taking to protect our ferries will have real impacts and this team will help us accomplish that goal.” © TradeWinds.
IMO strengthens Marpol
IMO has issued revised regulations on marine and air pollution following October’s sitting of the Marine Environment Protection Committee (MEPC). Ships carrying oil, chemicals or vegetable oils will be most affected. The new rules mandate double bottoms for pump rooms on oil tankers built after 2006, further protections against accidental oil outflow following a stranding or collision and a requirement for vegetable oils to be carried in chemical tankers. MEPC has also announced a new four-tier classification system for liquids: so noxious that discharge is prohibited, dangerous substance but limited issue allowed, liquids that present a minor hazard and, lastly, substances that may be discharged without restriction. The revised Marpol annex includes a number of other revisions made possible by advances in ship technology. In other news from the MEPC, Western European waters have been designated as a ‘particularly sensitive sea area’ and, as previously reported in Fairplay, mandatory measures have been developed on shipbreaking. © Lloyd's Register - Fairplay Ltd 2004.
Pollution law amendments blocked
GREECE, Cyprus and Malta yesterday blocked the adoption of a common position of the Council of EU Justice and Home Affairs ministers in Luxembourg on the draft Directive seeking to strengthen the criminal law against ship-source pollution. Explaining why he voted against it, Greek shipping minister Manolis Kefaloyannis said the proposed Directive went beyond Marpol and Unclos, would have a negative impact on attracting new recruits because it made the detention of seafarers easy, and put EU -flagged ships in a disadvante vis-a-vis their competitors. This is in line with the position of Greek owners who in a joint statement by two representative bodies early this month said that the proposed Directive was unfair, unrealistic and very damaging because it illegally characterised accidental pollution as a punishable act. In Greece, the government opposition criticised Kefaloyannis for his stance at the Council. Former shipping minister Christos Papoutsis said Greece had missed the opportunity of improving the law against pollution, and had offered a great service to shipowning interests that wished to remain beyond the reach of the law. © Lloyd's Register - Fairplay Ltd 2004.
Pirates foiled
MALAYSIA - Two piracy incidents, one involving the use of firearms, were reported in Indonesian waters this week, according to a report from the International Maritime Bureau. In the most serious case a speedboat containing six armed men wearing masks and black clothes approached a bulker off southern Sumatra. The opened fire on the ship but fled after the master raised the alarm, sounding the ship's whistle and taking evasive action. In a separate incidenct off northern Sumatra a containership used fire hoses to turn away four boats carrying armed man. © tfinforma.com
Singapore, Indonesian navies mark 30th year of cooperation with Exercise Eagle by S Ramesh
The close cooperation between the Singapore and Indonesian navies is now into its 30th year, a mark of their long-standing and strong defence ties. And both sides are currently involved in Exercise Eagle, which will go on till November 4. Mindef says that since 1974, the exercise has expanded in scope and complexity, and for this year, they are contributing three ships each for the exercise. Indonesia and Singapore also conduct coordinated patrols to combat sea robberies in the Singapore Strait. © 2004 MCN International Pte Ltd.