News Flash ...

September 2004

Indonesian shipowners poised for legal boost
INDONESIA’S president is set to ratify a decree that would finally enforce cabotage in the country and a ship mortgage law to boost its domestic shipowners. Oentoro Surya, chairman of the Indonesian National Shipowners Association, told MAT that the association had finalised the draft of the presidential decree on shipping and said he hoped it would be signed before September 20 this year. Indonesian President Megawati Sukarnoputri faces a run-off election for a second term on September 20. The draft decree is seen as a significant step forward for Indonesia’s shipowners, particularly in the area of enforcing the cabotage law and a ship mortgage law for the world’s fourth most populous country. “We are really going to impose the cabotage law,” Mr Oentoro said. “We are talking about it being legally enforced.” Indonesia has had a cabotage law for a number of years; however, it has never actually been enforced. © 2000 - 2003 Informa Asia Publishing Ltd.

Pelepas denial
The Port of Tanjung Pelepas has denied being in talks to sell shares in its second phase to rival PSA International in Singapore. “There have been no such talks between PTP and Temasek Holdings (the parent of PSA) on the latter’s intention to purchase shares in PTP,” Pelepas chief executive Mohd Sidik Shaik Osman told reporters. Last month, Malaysian newspapers reported that PTP was in talks to sell shares to PSA. © 2000 - 2002 Informa Asia Publishing Ltd.

Malaysians in Iraq bunker venture
MALAYSIAN Merchant Marine Berhad (MMM) is in talks with Iraqi Oil Tankers Co (part of the Iraqi oil ministry) to set up a joint venture bunker trading company. MMM disclosed the details in a listing to the Bursa Malaysia (formerly the Kuala Lumpur stock Exchange) yesterday. The company will operate in Umm Qasr, other Iraqi ports and terminals and throughout the Middle East Gulf. The venture will be 50:50 but MMM will run both the operational and commercial aspects. The company will also be involved in ship repair and marine supply in Iraq and surrounding countries. Current intentions are for MMM to initially lease two of its tankers to the new operator. MMM currently runs a fleet of 13 vessels: five tankers, four car carriers and four bulkers. © Lloyd's Register - Fairplay Ltd 2004

Cambodia receives port loan
JAPAN has granted a low interest loan to Cambodia to pay for further expansion of Kompong Som, Cambodia’s main port which is located in the Gulf of Thailand. News agency AFP has reported that Japan has awarded a $39M loan to be paid back over a 30 years with a 10-year grace period. This is the second such loan Japan has given for the expansion of Kompong Som. The loan will cover an expansion of the container berth, land reclamation, dredging and additional cargo handling facilities. © Lloyd's Register - Fairplay Ltd 2004

Eco-scrapping gets underway
THE first environmentally-friendly scrapping operation in the Netherlands will get underway in two weeks’ time when Ecodock starts demolishing the Sandrine in Amsterdam. Ecodock’s own facility in Eemshaven, in the north of the country, is unlikely to be ready for business for two years, but the company will work with Amsterdam Shiprepair as the Sandrine has a great deal of hazardous material on board and cannot be moved to Eemshaven. The vessel’s scrapping with be Ecodock’s first stage in obtaining ISO certification, in which Norwegian class society DNV is involved. Ecodock chief executive Doebren Mulder told Fairplay at the WISTA conference in Rotterdam this week that the banks and shareholders are willing to put up the necessary €50M ($61M) to get the demolition facility up and running, but the environmental survey will take about seven months and construction will take 22 months. Mulder said several owners in the Baltic States, France and elsewhere have expressed an interest in environmentally-friendly scrapping, “but they need to make a commitment and become a customer,” he urged. © Lloyd's Register - Fairplay Ltd 2004

Maritime Institute To Organise Melaka Straits Security Conference
KUALA LUMPUR, Sept 9 (Bernama) -- The Maritime Institute of Malaysia (MIMA) is organising a three-day conference on comprehensive security in the Straits of Melaka, beginning Oct 11. MIMA said in a statement Thursday Deputy Prime Minister Datuk Seri Najib Tun Abdul Razak is expected to deliver a keynote address at the conference themed "Enhancing Cooperation between Littoral and User States of the Straits of Melaka". The conference will review past and present initiatives as well as chart the future directions in the management of the straits, it added. It will focus on key issues such as security and safety under the theme "Ensuring Security and Safety of the Straits of Melaka", environment and resource management with the theme "Sustainable Development of Marine Environment and Resources in the Straits of Melaka", and economics with the theme "Economic Significance of the Straits of Melaka". MIMA said key speakers representing the major users of the straits such as China, European Union, Indonesia, Japan, Singapore, South Korea and the United States have agreed to present papers at the conference. -- BERNAMA

‘Barges should not be at Tioman’
The contractor for the RM40mil marina project off Kampung Tekek in Pulau Tioman has breached the terms imposed under the Environment Impact Assessment (EIA), said Deputy Environment and Natural Resources Minister Datuk S. Sothinathan. He said the environment management plan (EMP) had not been approved yet. “The barges have gone in. This is clearly a breach of conditions imposed by the Department of Environment (DOE) for this project as they cannot start work without the approval of the EMP. “We have received the EMP but we have not read through it. We are not a rubber-stamping body. They cannot expect to just submit the plan for formality's sake and continue with their work. “They can only start work once we're satisfied that everything is in order, such as the work schedule and implementation of measures to protect the environment including the corals,” he said yesterday. Sothinathan said he had also directed the DOE director-general to advise state and local authorities to stop the project pending approval of the EMP. “I have also asked the director-general to inform the contractor that he has breached the terms of EIA approval,” he added. The project, located off Kampung Tekek, is said to threaten the livelihood of local villagers and the survival of more than 200 endangered giant clams, 300-year-old corals and other marine life within the area. Sothinathan said the ministry was not happy with the way the contractors were going about the project. “We are very concerned about what's going on. We will decide what the next course of action will be after our meeting with the state authorities tomorrow in Tioman. “However, we want to make it clear that at the end of the day, the power to stop work lies with local authorities and not with the DOE,” he said. The Sultan of Pahang, Sothinathan and the ministry's parliamentary secretary Sazmi Miah will visit Tioman today. © 1995-2004 Star Publications (Malaysia) Bhd.

Yemen sentences Limburg bombers by Namrata Nadkarni
FIVE al-Qa’eda supporters responsible for bombing the tanker Limburg in October 2002 have been sentenced to 10 years in jail by a Yemeni judge. The sentencing was part of a move to change the perception of the country — the ancestral home of Osama Bin Laden — from a hotbed of terrorist activity to a country toeing the line in the fight against terrorism. The militants appeared unrepentant upon hearing the verdict and burst into cries of “God is great, America is the enemy of God, Osama bin Laden is God’s beloved”. The attack, which took place two years ago, saw a speedboat armed with explosives crash into the side of the tanker that was carrying 400,000 barrels of Saudi crude oil. The Limburg, built in 2000 and registered in the Kerguelen Islands, was being operated by Euronav, a Luxembourg-based subsidiary of Compagnie Maritime Belge. When the fire started, the vessel was calling at Ash Shihr to load with crude. The resulting explosion killed one of the 25 crew members, injured others and resulted in large-scale pollution. Eleven of the crew remained onboard to assist firefighters in their attempts to put out the flames. At the time, the government of Yemen had denied any terrorist involvement and claimed that a technical fault was responsible for the fire. However, a later investigation showed that the explosion was the work of terrorists under orders from Ali al-Harthi, the al-Qa’eda leader in Yemen. The explosion made headlines the world over; not just because of the extent of the damage, but also because it came just a few days before the second anniversary of the bombing of the USS Cole, that took place under similar circumstances. The militants responsible for that particular bombing are also on trial in Yemen, with five suspects under arrest and the sixth being tried in absentia. There were a total of 15 terrorists sentenced to varying terms in jail by judge Ahmed al-Jarmouzi on Saturday. Two of the men, brothers Fawaz and Abu Baqr al-Rabe’ie received 10-year sentences for attacking a helicopter of US firm Hunt Oil in late 2002, and a fine of YR18.3m ($99,133) for an attack on a civil aviation building. Hazem Megalli received the death penalty for a variety of crimes that included killing a Yemeni soldier at an army checkpoint. The others were responsible for a variety of crimes including a plots to attack the embassies of the US, Britain, Germany, France and Cuba. They were also found guilty of forming an armed group that has attacked targets in Yemen and other parts of the world.One of the militants responsible for a plot to assassinate the US ambassador to Sanaa was sentenced to death. All these attacks were seen as revenge against the CIA for killing al-Harthi in 2002 with a missile fired from a drone aircraft. All of the defendants are appealing the verdicts. Yemen maintains that it is on alert for any terrorist attacks on sea ports but denies that it has any information on imminent attacks on its coasts. © 2004 Informa UK Limited.

Jail for Yemen's Limburg attackers
A judge in Yemen has down handed ten-year prison sentences to six defendants for their part in plotting the October 2002 bombing of the tanker Limburg off Al-Mukalla. A seventh man, believed to have masterminded the Limburg attack, is still at large and was sentenced in abstentia. Nine others were jailed for a spate of separate terrorist acts. The trial lasted three months and ended on Saturday with the accused remaining defiant right to the end. "There is no God but God, America is the enemy of God, Osama is beloved by God," they shouted from a caged off area of the court as sentencing was announced. One Bulgarian seafarer was killed when an explosive-laden launch rammed the VLCC causing a 90,000 barrel oil spill that blazed for days. The trial was Yemen's most successful prosecution of terrorists in recent years. Apart from the Limburg bombing, the accused were charged with shooting down an oil company helicopter and plotting to assassinate the US ambassador. A separate trial is under way for six men accused of a similar attack on the USS Cole in Aden four years ago. © Lloyd's Register - Fairplay Ltd 2004.

Reject Temasek, urges NOL
INDEPENDENT directors of Singapore liner and logistics giant Neptune Orient Lines have advised shareholders not to accept the mandatory cash offer by Temasek Holdings. Temasek, the Singapore government investment arm, controls more than 30% of NOL stock and has offered S$2.80 ($1.63) per share for the remaining shares. “Shareholders who are confident of the long-term future prospects of the company and who believe that they would be able to realise a greater value from their shares in the future, should retain their shares and not accept the offer,” the directors said today in a recommendation based on the advice of independent financial advisor HSBC. The consultants had noted that though the offer price was higher than any “adjusted daily closing price” at which NOL had traded since the acquisition of APL in November 1997, the shares had “consistently exceeded” the offer price since the offer announcement date (3 August). “… The offer price is fair, but not compelling, from a financial point of view,” HSBC has observed. NOL shares were trading at S$2.83 per share today. Shareholders have until 1530 hrs on 15 September to accept the offer. © Lloyd's Register - Fairplay Ltd 2004.

MISC signs up to more tankers
MALAYSIA – Malaysia International Shipping Corp is ordering five liquefied natural gas carriers from Mitsubishi Heavy Industries, cementing its plans to remain the largest owner and operator in the world of such ships. “I can confirm we have signed up for five [tankers],” MISC spokeswoman Fiona Pereira told Dow Jones Newswires. MISC confirmed broker reports that it had ordered up to five LNG newbuildings from Mitsubishi, with three firm contracts and two options. The latest order follows though on a plan unveiled by MISC chairman Tan Sri Mohd Hassan Marican last month to remain the world’s largest owner and operator of LNG carriers, expanding its fleet from 17 at present to 28 by 2008. The plan left MISC at least five LNG tankers short of the 28 figure, based on previously announced orders. Since it set out its expansion plan, MISC has reportedly added a fifth LNG newbuilding at Samsung Heavy Industries as well. The Malaysian national shipping company declined to say how much the new orders from Mitsubishi cost. © 2004 Informa UK Limited.

Singapore trebles growth to 15 new berths by 2009
SINGAPORE - PSA Singapore has trebled its expansion plans to 15 new berths by 2009 to meet soaring volumes that have found shipping lines and terminals grappling with unaccustomed capacity constraints. PSA is to add ten berths at Pasir Panjang Terminal, to be developed over the next five to seven years, and has fast-tracked the development of five new berths it announced earlier this year. Volumes at PSA in Singapore have grown much faster than expected in the first eight months of 2004 at a rate of 14% to bring it up to its operational capacity much faster than expected. “We are working beyond capacity,” Grace Fu, chief executive Singapore terminals for PSA Singapore, told Lloyd’s List. Growth this year is expected to exceed 2m teu bringing annual throughput to the 20m teu level, the design capacity of its terminals in Singapore. When PSA announced the building of five new berths earlier this year it said this was to meet growth of 5% a year or around 1m teu to 1.5m teu a year. “We’re still looking at growth of 1m teu-1.5m teu a year, but what we’ve had in 2004 thus far is 14% growth so we are short of capacity,” Ms Fu explained. © 2004 Informa UK Limited.

NOL ‘did consider seeking other offers’ after receiving Temasek bid
SINGAPORE – Independent directors at Neptune Orient Lines have confirmed that they did consider soliciting competing bids to the takeover offer by Temasek Holdings. The announcement followed criticism from a US institutional investor over the NOL board’s alleged failure to do so. The criticisms were contained in an open letter by John Paulson. president of Paulson & Co, to NOL chairman Cheng Wai Keung. In reply, the shipping company’s chairman issued a statement, saying: “The independent directors gave careful consideration to how they should respond to the offer by Lentor Investments. “This included the question of whether the company should solicit competitive bids, having regard to the fact that the company had not been approached by any person with an offer competing with the offer.” Lentor, a wholly-owned subsidiary of Temasek, is offering S$2.80 (US$1.64) per share for all the remaining shares it does not own in NOL after a mandatory takeover bid was triggered by its stake crossing the 30% threshold. Based on research from NOL’s independent financial advisor for the offer, Hong Kong and Shanghai Banking Corp, Mr Paulson said the bid undervalued the company by 40%. He criticised NOL’s independent directors for failing to solicit competing offers. NOL’s Mr Cheng said the board had carefully considered the offer and the advise of HSBC. “Having taken all of the above matters into consideration, the independent directors concurred with the independent financial advisor’s recommendation in respect of the offer and made their recommendation to shareholders accordingly,” he said. © 2004 Informa UK Limited.

ASEAN talks free trade
THE Association of Southeast Asian Nations (ASEAN) has agreed to launch talks with Australia and New Zealand regarding a free trade agreement (FTA). The agreement was made at the ASEAN meeting held in Jakarta over the weekend. Talks for the ASEAN-Australian-New Zealand FTA are expected to begin in January 2005 and it is hoped that an agreement will be made in two years and free trade fully implanted by 2017. At the same meeting, ASEAN ministers also held talks with the Indian trade minister on tariff reductions. Further ASEAN FTAs will be held with both Japan and South Korea next year, and full free trade with these countries by all members of ASEAN is expected in 2014 and 2017 respectively. At the meeting it was agreed that an FTA with China, agreed last year, will be ready for signing at the ASEAN summit in November. The ten members of ASEAN are Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam. © Lloyd's Register - Fairplay Ltd 2004.

Laem Chabang bidders emerge
THAILAND’S ministry of transport has released the names of bidders who have submitted documents for the building, operation and transfer of six new container terminals at Laem Chabang. The bidders are made up of three groups: Hutchison Port Holdings/Lexton (Thailand); Port Singapore Authority/Singa-Thai/Bangkok Success/Meechai Planner and Regional Container Lines and Dubai Ports International. Only these three groups submitted bids from a total of eleven who paid the $12,500 for the terms of sale documents. The ministry of transport’s committee of selection will open the bids on technical requirements on 15 September with price bids to be opened at a later date. The Thai government is hoping to receive $1.2Bn plus addition fixed income from the 30 year lease. © Lloyd's Register - Fairplay Ltd 2004.

NOL urged to seek rival bids to Temasek
SINGAPORE - A US institutional shareholder of Neptune Orient Lines has called on the line’s board to seek rival bids following Temasek Holdings’ S$2.80 (US$1.62) share offer, which expires on September 15. Paulson & Co, a New York firm that holds a 6.05% stake in NOL, said Singapore state-owned Temasek’s $1.6bn offer was at least 40% below a fair price based on industry precedent. Citing research by HSBC, the NOL adviser, Paulson says a price of at least S$4 a share is needed for Temasek or a rival bidder to sway NOL shareholders. Paulson’s dismissal of the Temasek offer came two days after the NOL board rejected it and echoed earlier sneers from crucial operators such as John Fredriksen. Paulson’s thoughts appeared in an open letter to NOL chairman Cheng Wai Keung. John Paulson, president of Paulson & Co, expressed frustration at the board’s inertia. “Merely rejecting the offer and not taking an active role facilitates Temasek’s ability to acquire NOL at the current price,” he wrote. “Furthermore, saying that the lack of a competing offer indicates the fairness of Temasek’s offer fails to recognise the reluctance of potentially interested parties to enter a competitive bidding process without the board’s invitation. “Unless Temasek makes a competing offer, it is incumbent on the board actively to solicit other acquirers to maximise shareholder value.” Market speculation on Temasek’s mandatory bid has included the claim that it was a ploy to stop minority holders such as Mr Fredriksen from building up a stake or launching a bid. So far no such offer has materialised. Another view is that Temasek intends to take NOL private, something the state company seems to have denied. According to local reports Temasek is also said to be unlikely to increase its offer. © 2004 Informa UK Limited.

Indonesian concerns grow over the wreck of Hyundai No105
INDONESIA - Eokor is undecided on how to deal with the wreck of the Hyundai No105 in the Singapore Strait, but Indonesian authorities have repeated the ship and its cargo must be “totally” removed. A letter dated August 31 from Tjuk Sukardiman, Indonesia’s director-general, Sea Communication, sighted by Lloyd’s List, said that the owners Eukor had to “totally remove” the wreck and all its cargo from the seabed. At the time the letter was written the Indonesian authorities said they were still awaiting word on the owner’s plans to remove the wreck. Eukor spokesman Ferdi Stolzenberg said that such letters were part of the normal daily communication between the owners and the Indonesian authorities and dismissed the idea that there were any problems. Mr Stolzenberg said that no contract had been signed as yet and the company was still considering the six proposals it had received from salvors after the UK P&I Club put out a tender in July. Potentially one of the world’s largest salvage jobs on the scale of Tricolor in the English Channel it initially attracted the world’s top salvors including Smit, Switzer Wijsmuller, Kasel Salvage and Titan. The 12,899 dwt Hyundai No105, operated by Eukor, lies in Indonesian waters after it collided with the 303,896 dwt very large crude carrier Kaminesan, owned by Mitsui OSK Lines, in May this year. Lying just two cables (400 m) south of the traffic separation scheme in the Singapore Strait, it has a clearance of 17 m meaning it could still be hit by a large vessel that strayed out of lane. Under Indonesian domestic law the wreck is the responsibility of the owners and should another ship hit the car carrier, Eukor and liability insurers the UK P&I Club would be liable. © 2004 Informa UK Limited.

PTP beli kelengkapan pelabuhan IMPSA bernilai RM147 juta
KUALA LUMPUR 7 Sept. _ IMPSA (Malaysia) Sdn. Bhd. meraih kontrak menjual tiga buah kren Super Post Panamax dan 15 unit Kren Gantri Beroda Getah (RTG) bernilai RM147 juta kepada Pelabuhan Tanjung Pelepas (PTP). Pengerusi Eksekutifnya, Datuk Moehamad Izat Emir berkata, kontrak terbaru itu bakal memberi sumbangan besar kepada jangkaan perolehan IMPSA Malaysia sebanyak RM358 juta tahun ini. Menurutnya, IMPSA Malaysia juga sedang berunding dengan PTP untuk membekalkan tiga buah lagi Kren Super Post Panamax dan 39 RTG sebagai kelengkapan fasa kedua PTP. Dalam aspek ini, IMPSA Malaysia menganggar nilai keseluruhan kontrak tambahan itu bernilai RM250 juta, katanya. Beliau berkata demikian pada majlis pemeteraian perjanjian kontrak penjualan antara IMPSA Malaysia dan PTP di sini, hari ini. Mewakili IMPSA ialah Pengarah Eksekutifnya, Shawaludin Mohd. Din manakala PTP oleh Ketua Pegawai Eksekutifnya, Datuk Mohd. Sidik Shaik Osman. Menyaksikan majlis itu ialah Timbalan Menteri Pengangkutan, Datuk Douglas Unggah Embas. Moehamad Izat berkata, pada tahun 1998 IMPSA Malaysia telah membekalkan 14 buah kren kontena Super Post Panamax dan buah terbaru yang akan dipasang kelak ialah berteknologi yang dipertingkatkan. Sementara itu, Mohd. Sidik berkata, kelengkapan kren terbaru itu meliputi RTG untuk menaik taraf peralatan sedia ada di Fasa 1 manakala tiga kren Super Post Panamax untuk fasa kedua. Kami menjangkakan pemasangan keseluruhan tempahan baru kren ini akan disiap sepenuhnya dalam tempoh 13 bulan,'' ujar beliau. Menurutnya, kelengkapan baru itu akan meningkatkan keupayaan mengendalikan kontena sehingga 4.2 atau 4.5 juta TEU tahun ini, berbanding 3.6 juta tahun lepas. Ditanya mengenai laporan pihak berkuasa pelabuhan Singapura, PSA Corp yang mahu mengambil alih beberapa bahagian dalam ekuiti PTP, beliau enggan mengulas. Beliau turut menafikan ada berbincang dengan Temasek Holdings mengenai perkara tersebut. Pertemuan PTP dengan PSA memang ada. Kerana pelabuhan lain yang terdekat kepada PTP ialah Singapura, maka biasalah kami berunding. Tetapi isu yang kami rundingkan ialah mengenai soal keselamatan kontena, lanun, saluran pelayaran dan yang berkaitan,'' jelas beliau. Terdahulu, Douglas Unggah dalam ucapannya berkata, kerajaan menjangkakan pertumbuhan eksport bagi suku tahunan ketiga akan kekal di atas 20 peratus, trend menaik yang besar sejak bulan Januari lalu. © Utusan Melayu (M) Bhd.

Usaha sama Petronas-Shell temui lagi gas
KUALA LUMPUR 7 Sept. - CS Mutiara Petroleum Sdn. Bhd., sebuah usaha sama 50:50 antara Petronas Carigali Sdn. Bhd. dan Shell Malaysia Exploration & Production, telah menemui lagi gas di Blok PM301, luar pantai Semenanjung Malaysia. Telaga Bunga Zetung-1, yang dimulai pada 9 Julai 2004 adalah penemuan kedua berturut-turut dalam Blok PM301, ekoran kejayaan penemuan gas di Bunga Kamelia dalam bulan November 2003,'' kata CS Mutiara dalam satu kenyataan di sini hari ini. Penemuan empat zon gas dicatatkan ketika penggerudian pada kedalaman 1,876 meter yang dianggarkan mempunyai rizab 0.2 trilion standard cubic feet yang boleh dikeluarkan, bergantung kepada penilaian teknikal selanjutnya. Penemuan baru itu terletak di lokasi 20 kilometer ke tenggara telaga gas Bunga Kamelia,'' kata syarikat itu. © BERNAMA

We didn't approve Tioman Marina, says Pahang MB
KUANTAN Sept 7 - Pahang Menteri Besar Datuk Seri Adnan Yaakob has refuted allegations that the state government approved a marina project on Pulau Tioman, saying the state government had agreed to the project provided it did not harm the environment. "The state government did not disagree with the project because it can promote tourism to the island," he told reporters at his residence. Adnan also clarified that the project is a Federal Government project with the cooperation of the state government."We did not approve the project, we only acted as go-between in the matter of land acquisition and compensation," he said. A front-page report in "The Star" Monday claimed that the state government had approved the RM40-miliion project which, environmental campaigners fear, would destroy the island's world-renowned dive site and corals. The project is expected to include yacht-mooring areas, administrative building, breakwater, and a 30 m-wide, 175 m-long cargo jetty located right in the middle of a marine park. Opponents fear it could threaten the marine life, including some 200 endangered giant clams and 300-year-old corals. Adnan suggested placing environmental enforcement officers on the island to monitor its development and minimise environmental damage. Earlier, Adnan attended a ceremony at Rumah Negeri where Sultan Ahmad Shah presented appointment letters to Mohd Yusof Abdul Ghani and Abdul Rahim Jaafar as Syariah High Court judge and chief prosecutor, respectively. © Utusan Melayu (M) Bhd.

ASEAN countries to form counter-terrorism task force
ASEAN countries have agreed to form a task force to counter the threat of terrorism in the region. The decision was reached at the 5th ASEAN Army Chiefs Multi-lateral Meeting held here Tuesday. "Working groups have been formed to discuss the idea further and set up small units, especially among member countries sharing common borders, on bilateral or multi-lateral basis to face the threat," Indonesian Army Chief General Ryamizard Ryacudu told a press conference after the meeting. The one-day meeting was attended by army chiefs from all 10 members of the regional grouping, which last year adopted an ASEAN Security Community (ASC) concept in an effort to build up a strong defence mechanism in the region. Ryamizard, who chaired the meeting, said the ASEAN armies did not want to face a situation where they were caught unprepared in the event of any calamity caused by terrorist groups. He clarified that although combating terrorism was in the hands of the police of the respective countries, the armed forces would have to take up the fight if the group was to launch large-scale attacks using "war" equipment like rockets and bombs. The ASEAN defence force would have their respective roles to play in such a scenario and the armies wanted to undertake the task cut out for them in a coordinated way, he said. He said that ASEAN armies had a very good working relationship and would continue to enhance their defence capabilities like increasing joint training, information sharing and other activities including sports to establish closer rapport among their troops. Malaysian Army Chief, Datuk Seri Mohd Azumi Mohamed said that the ASEAN army chiefs had agreed to be transparent and keep each other informed of intelligence on terrorism in their respective countries. Joint operations have proven to be one of the best working mechanisms where member nations could work together in the spirit of strong bilateral cooperation to ensure peace and stability and promote socio-economic development along their common borders, he said. More recently, Malaysia, Indonesia and Singapore started year-round joint patrols against terrorism in the Straits of Melaka, he added. "All these are positive deterrent measures just to put the message across to groups who intend to commit violence, that we have a response to their act," he said. © BERNAMA.

Malaysia to send monitoring team to the Philippines on Sept 10
Malaysia will start sending its peace-monitoring force to supervise the enforcement of the peace agreement between the Philippine government and the Moro Islamic Liberation Front in the southern Philippines on Friday. Deputy Prime Minister Datuk Seri Najib Tun Razak said Tuesday the first batch of eight officers, including a police officer, would arrive in Manila on Friday. The whole complement of 60 officers, including several police officers and civil servants, would be in the southern Philippines by Oct 9, he told a news conference after launching the book, "Little Sandhurst-A Military Love Affair", written by Mejar Jeneral (R) Datuk Nordin Yusof, here. Philippine Foreign Secretary Delia Domigo Albert, during a visit to Malaysia in May, told reporters that the Philippines was awaiting a proposal by Malaysia to send a monitoring team to the southern part of the country. Najib, who is also defence minister, said the terms of reference of the team would be finalised in a day or two. He said the Philippine and the MILF welcomed the peace-monitoring force from Malaysia. The Malaysian government would also try to get several other countries to be involved in the international peace-monitoring force, he said, adding that participation in the force need not come from the Organisation of the Islamic Conference (OIC) countries alone. Asked how long the team would be there, he said the duration had not been decided but the Malaysian team would remain there for as long as it was needed. He said the government would review the need for the team after a year. On a front page report in The Star about security agencies in the region uncovering a complicated web of over 100 marriages involving family members of key Jemaah Islamiah leaders, members and operatives, he said he would get information on the story "because we are monitoring developments in the JI". © Utusan Melayu (M) Bhd.

Tioman villagers stage protest over marina project by Teoh Teik Hoong & Florence A. Samy
Construction barges have arrived at the shores off Kampung Tekek here to start the controversial RM40mil marina project, sparking off a peaceful protest by local villagers on the beach. Local chalet operator Zainah Abdul Rahim said they had received approval from the Marine Park Department to place moorings for the snorkelling and dive sites as a precautionary measure. “In order to protect the snorkellers and divers, a boat with buoys and ropes has cordoned off the snorkelling and dive sites from the Customs Department building to the construction area. “Locals kept a midnight vigil to check on the barge's movement,” she said yesterday. Zainah said while the barge had been parked outside the marine park, its tugboat had been moored at the Tekek Jetty. “They're trying to find out who is the boat owner. They are also trying to soften us by using a local villager's barge. “But we're not going to back down as we're doing the right thing. We need to protect the marine park and our divers,” she said, adding that they would lodge a police report if the barges tried to ram their boats. She also said they had seen officials from government agencies, police and customs at the construction site, but no one had approached them as yet. Natural Resources and Environment Ministry parliamentary secretary Sazmi Miah told The Star that he was informed of the barge from his officers stationed on the island to monitor the situation. He said the barge was parked next to the existing passenger jetty. “I am still waiting for the full Environment Impact Assessment (EIA) report to personally study it. “There are 44 conditions stipulated in the document,” he said. © 1995-2004 Star Publications (Malaysia) Bhd.

Study impact of project, sultan tells pahang government by Faridah Begum
The Sultan of Pahang has directed the state to undertake an immediate study on the impact of the proposed RM40mil marina project on Pulau Tioman. Mentri Besar Datuk Seri Adnan Yaakob said Sultan Ahmad Shah Sultan Abu Bakar had asked him to check on the situation as soon as possible. “But I will only be able to go there on Thursday,” he told reporters after witnessing the appointment of a Syariah High Court judge and prosecutor at Rumah Negeri here yesterday. Adnan has to chair the state exco meeting and attend a briefing on Umno’s fight against money politics today. In an interview later, Adnan said the Pahang Department of Environment had approved the Environmental Impact Assessment for the marina. “It is a federal project and the state's role is only to facilitate land matters,” he said, adding that the state was not trying to absolve itself of any blame. “We welcome the project as it would make the island more attractive, with better facilities for tourists.” Adnan said the island was facing problems suchas poor water supply and waste management. Adnan said a dialogue was held earlier with the island’s residents when he accompanied Tioman Development Authority advisor Tun Dr Mahathir Mohamad on a visit there. “They had, in principle, agreed to the project although there were recommendations for an alternative site,” he said. “Dr Mahathir and I saw the alternative site but it was unsuitable. “The current site has the least coral reefs compared to the other parts of the sea surrounding the island. “There will be minimal damage to the current site ... with constant monitoring and enforcement.” © 1995-2004 Star Publications (Malaysia) Bhd.

Ringgit for ringgit mitigating measures proposal for Tioman
PETALING JAYA: The developer of the Tioman marina should be made to spend ringgit for ringgit on mitigating measures should the project be allowed to proceed, the Malaysian Sport Diving Association said. Its president Datuk Mukhriz Mahathir, who expressed his concern over the implications and potential loss of the island’s treasured marine heritage, said the developer should be made to match the RM40mil project cost for mitigating measures and also to upgrade the island’s antiquated waste disposal system. He said the developer should have sought local participation to evaluate, propose alternatives and ultimately participate full-heartedly in development projects there. “The association being an interested party was not invited to participate at any stage of the planning or being informed of this impending project. “This is a clear case of neglect by the developer,” he added. Universiti Putra Malaysia professor of marine environment Dr H.M. Ibrahim said allowing the project to proceed would undermine the country’s international commitment to protect the environment. He said it would also spell the end of the centuries-old corals and marine life lying in the waters. “It is a shame that we allow them to threaten our marine environment by twisting the EIA,” he said. Dr Ibrahim, who served in the National Advisory Council on Marine Parks and Marine Reserves for 10 years, said there was hardly any information on who conducted the EIA and what mitigating measures were recommended. He said table corals only grew 2cm annually and as such a 5m table coral was estimated to be at least 1,000 years old. “What is the economic sense of building a marina when there’s so much to lose? “No one benefits from the project and the environment and the people are the ones who will eventually pay the price,” he added. Tioman spans 38km in length and 19km at its widest point. Its waters are home to a splendid array of marine life such as barracudas, Napoleon fish, turtles, stingrays, murray eels, golden striped trevally, bumphead parrotfish and shoals of fusiliers. Its dense coral gardens include colourful gorgonian sea fans, staghorn corals, nudibranch and beautifully-sculptured sea sponges. © 1995-2004 Star Publications (Malaysia) Bhd.

Westport upgrades facilities by T. Selva
WESTPORT in Port Klang is in the midst of several projects to upgrade and expand its facilities to meet growing demands that accompany the double-digit growth that the terminal is currently experiencing. These include building two additional berths to add to its current seven, and a container yard. Work on the 600-metre wharf at CT4 started in July and is expected to be completed in October next year. It will be equipped with sets of twin lift quay cranes. “The additional berth will enable us to offer our customers berth on arrival,” said Westport executive chairman Tan Sri G. Gnanalingam. He said two Central Freight Stations (CFS) were also being set up to cater to the increasing demand to stuff and un-stuff. Other developments include building a marine jetty to act as a base for Westport’s tugboats and pilot boats and work to expand the container terminal’s existing gate to meet current needs. “Also to be widened is the main access road to Westport,” he said, adding that another interesting project to be implemented this year was the use of rubber-tyred gantry cranes for loading and discharging containers for rail wagons. “The most prominent new service that Westport will be offering is the electronic-based billing system which will act as an automated billing system where customers will be billed according to the manifested amount of cargo and containers handled.” said Gnanalingam, in an interview in conjunction with Westport’s 10th anniversary on Friday. He said there were several maiden services that called Westport in the first four months and these new services launched by liners would directly make Westport a transit centre for booming trade between the East and West. Gnanalingam said as the transit point for cargoes plying between the east and the west, Westport was strategically placed on the global shipping map as not only an ultra-modern port, but also as the most productive terminal in the world. Over the past decade, Westport has handled 6,834,075 TEUs. “Within this short period most of the major main line operators (MLOs) have recorded a three-digit TEU growth in Westport. “Among them are Hanjin, Evergreen, Noarasia and CMA. Shipping lines. “Shipping lines, like other companies, seek higher revenue with lower cost. The only way to lower their cost is to achieve higher productivity with faster vessel turnaround time and that’s exactly what Westport offers liners to cater to their needs. “With the additional berth, we assure our customers berth on arrival. To further enhance our services, we will be acquiring additional cranes. “Thus our customers are guaranteed a higher vessel productivity, faster turnaround time with a skilled workforce achieving gross crane productivity of 30 moves per minute (mph), which is above the industry standards of 25 mph. (See graphic) “Thus Westport is on the right track to continue recording double-digit growth,” he said. Asked Westport’s formula for turning a green field into an emerging port in the region, Gnanalingam said Westport’s success could be attributed to several factors such as its highly skilled workforce, its emphasis on productivity, the use of cutting edge and state-of-the-art IT applications and its customer driven concept. “The secret of Westport’s success is in our highly skilled workforce who are given training and development courses as well as motivational and team building sessions. These programmes are conducted to continuously enhance their skills and viability. “With such a well-planned training schedule in practice, Westport is not short of producing top-notch performers to guide it to brighter fortunes in future. “Productivity and turnaround time are vital elements in this industry and Westport believes in spurring its workforce to deliver and to maintain standards that exceed the norm. “Hence with the drive to outdo the industrial expectation of a mere 70 mph, Westport managed to discharge containers at 201 mph on mv Regina Maersk in August 1999 and followed by 264mph on mv Clifford Maersk in December 1999. “In October 2002, the record was further improved to 271mph while working on mv Ville De Virgo. March 2003 marked a new era of record-breaking feats when a new world record was achieved. “This feat was made possible while discharging containers on board a CMA-CGM vessel, mv Peninsula Bay. The world record of 368 mph still stands and has not been breached yet.” As an IT-driven port, Westport has engineered G-Links, an advanced computer network system that controls every aspect of the port’s operations. Gnanalingam said: “A sophisticated system such as COSMOS is employed to facilitate container operations and MAXIMO to monitor crane utilisation and inventory control. “The Smart-Card-Security-Systems (SCSS) and Gate-Control-Security System (GCSS) have been introduced to enhance safety and security of the port,” he said. He added that Westport’s E-billing and E-procure had paved the way for creating an image of a paperless port. As a customer-oriented port, he said Westport continuously strived to foster and maintain a cordial working relationship with its customers. “Committed to being a total logistics port, we lavish our customers with an array of value-added services, a 24-hour dedicated customer service centre and call centre. “Westport is also linked to the World Wide Web to enable our customers to obtain the latest, updated terminal operation information through our Westportlink and Client Access. “In less than a decade, Westport has charted a sterling performance illustrated by its healthy consecutive double-digit growth. “This is all due to its world class terminal facilities, highly skilled workforce, successful collaborations and the partnerships it has forged – with employees, customers and community.” On pricing and productivity, Gnanalingam said given a choice, Malaysian ports would prefer to increase the rates on THC (terminal handling charges), but as we are all aware, this is in the hands of the government. “Westport’s strengths lies in high terminal productivity that is exhibited by its productivity and efficiency. “Since its inception, the terminal operations performance has improved tremendously, productivity has escalated by leaps and bounds and recorded an exponential growth. “In 1999, our gross crane productivity was only 22-24 mph (but considered good by industry standards). “The scenario has changed, as the terminal is leading the industry in moves per hour by recording a crane productivity of 30-32 mph. “Currently, Westport’s operation team is focusing on achieving 35 mph, a target set by the organisation.” He said apart from the above were Westport’s world-class infrastructure, 15–metre depth, fleet of super post panamax cranes, capacity driven-berthing facilities, flexibility in operational management, extensive IT application and “a one-stop” integrated service centre. © 1995-2004 Star Publications (Malaysia) Bhd.

Ports to form alliances by T. Selva
Port should establish alliances with major shipping lines to face challenges and changing shipping trends globally, Westport executive chairman Tan Sri G Gnanalingam said. He said ports should provide priority berthing or dedicated berth and offer joint venture projects to stay ahead with the current competition. “Besides this, terminals should strengthen feeder network, improve the operational capacity and efficiency, berth capacity and system used to cater larger vessels,” he said, in an interview when commenting on the scenario of ships getting bigger and bigger, lines merging and calling at fewer ports. “As ships are getting bigger and lines merging, ports should extend in the regional feeder as this happens. “This will allow big ships to discharge boxes here and have it feeder to regional ports mainly Thailand, Indonesia, Vietnam and India Sub continent. “Ports should be supply driven by extending extra wharf length, enhance the operational resources like equipments and processes so the vessel turnaround time will be faster, thus savings to the customers,” he said. On the development of China's fast economic and port developments, Gnanalingam said the growth in China augurs well for Malaysia because with affluence they may be buying more of Malaysian goods. He said ports catered to the inflow and outflow of goods in any country and as such, Chinese ports are not in competition with Malaysian ports. “We are however in competition for container boxes and slots on shipping lines. “If the yield in China is better than Malaysia it terms of freight rates, shipping lines gives priority to Chinese ports.” On the competition and threat constantly posed by Singapore ports, Gnanalingam said Singapore ports were never a threat to Malaysian ports. “They were mainly providing facilities for shipping lines and the same was limited to Malaysian ports. “Today more and more shipping lines are making direct calls to Malaysia especially Port Klang for direct connection to our major trading partners. “The others are transhipping to make connections out of Singapore. As such Singapore only compliments and supplements the limitations in Malaysian ports,” he said. Gnanalingam, who is the president of the Federation of Malaysian Port Operating Companies, said since the formation of FMPOC especially in the last 2 years, they had several meetings and dialogue sessions with the Transport Minister and other government bodies and they have put forward joint proposals. © 1995-2004 Star Publications (Malaysia) Bhd.

Rise in Asian box volumes clogging up world’s hubs
Congestion in the world's main container hubs - a result of surging China exports - is likely to be a nagging problem for a number of years as costly port development struggles to keep up with trade and shipping industry growth, say analysts. China's massive container cargo bonanza, while giving lines perhaps their best year ever, is exposing the serious inadequacies in container facilities around the world. Asian container volumes to the US and Europe may rise about 16% in 2004, over the previous year, compared to global growth forecasts of about 8%, according to recent data from London-based Drewry Shipping Consultants. Analysts say the industry has no choice but to bear with the slow pace of terminal capacity expansion in places like Europe and North America, reported Singapore's Shipping Times. “The capital needs for debottlenecking these things are bigger than any one company,” said DBS Vickers Research associate director Chris Sanda. “Like ships, I think ports are going to have to evolve slowly and congestion issues are going to persist and be nagging issues for industry - not crippling, but a nagging pain.” Like the shipping industry, port development also moves in phases, he said. “But typically it is much slower to react and by the time it does, congestion has already set in.” Led by China and India, Asia is forecast to handle 206.7 million TEUs, including 64 million TEUs in transhipment by 2011. This will require large investments in the range of US$30 billion to create new port facilities, including over 400 new container berths just to meet the level of demand in Asia alone. Indeed, the signs of this were evident from early June when surging westbound cargo flows brought uncharacteristic congestion to Singapore's PSA Corpo-ration terminals and through parts of June, July and sporadically into August. On the US West Coast, congestion set in not only at the key gateways of Los Angeles and Long Beach, but all along the West Coast up to and including Vancouver. While moving rapidly to remedy the situation at its five terminals here from June, PSA was equally quick to point out that surging China volumes were not only overwhelming the ramparts here, but also storming the container fortresses of Europe. Chronic congestion has set in across Europe's main container hubs with delays ranging anywhere from hours to days. Rotterdam, for instance, has experienced delays of up to 24 hours following a 13% jump in cargo volumes in the first half this year over last. © 1995-2004 Star Publications (Malaysia) Bhd.

22 seafarers missing in typhoon
TWENTY-two seafarers are missing after an Indonesian-flagged general cargo ship ran aground this morning in Japan's Inland Sea as a typhoon gusting to 90kt lashed the south of the country. According to the Japan Coast Guard, the 1992-built, 6,315gt Tri Ardhianto, owned and operated by Gurita Lintas of Jakarta, became the first shipping casualty of Typhoon Songda when the ship ran aground off Kudamatsu in Yamaguchi Prefecture. The crew told the coastguard they were abandoning ship. It is not known what happened subsequently, despite the launch of a search and rescue operation. The typhoon has also hit Fukuoka Shipbuilding, Shitanoe at Usuki and other shipyards, with local media reporting minor cases of damage to vessels where moorings had broken. The weather, together with two strong earthquakes on Sunday evening centred on the Western city of Kyoto, has caused considerable disruption to Japanese coastal shipping, with oil importers and refiners temporarily suspending their operations. © Lloyd's Register - Fairplay Ltd 2004.

Gender equality 'good for business'
COMPANIES with a good ratio of male to female staff are more successful than those with a majority of one gender only, said Dutch transport minister Karla Peijs in Rotterdam yesterday. Peijs was giving the opening speech at the 2004 general meeting and conference of the Women’s International Shipping and Trading Association, which is celebrating 30 years of existence this year. “The importance of networks for women of importance has been recently demonstrated by the appointment of one of my predecessors, Neelie Kroes, as EU competition commissioner. Unfortunately, it is still very unusual to be able to address a business meeting with a majority of women in the audience. Women could contribute to the global shortage of officers and crew expected by 2010. Today we are considering the women of tomorrow, the female crewmembers of today are the managers of tomorrow”. © Lloyd's Register - Fairplay Ltd 2004.

Pacific Carriers denies sale of tanker quartet
PACIFIC Carriers has denied market reports that it has sold four product carrier newbuildings."The tankers are not sold, and where all these reports and speculations are coming from is a mystery to me," said Keith Denholm PCL commercial director. Singapore-based PCL was reported to have sold four 73,000 dwt product tankers to a German KG fund for US$180m to US$184m en bloc, equating to a total profit of around US$54m based on an order price of US$32m per ship. One of the ships, Penyu Ayer was delivered in 2003 while the other three are due to be delivered from Samsung Heavy Industries in 2005 and 2006. As to whether the vessels were indeed for sale he said: "I mean there is a price on any asset. If someone comes along with a big fat cheque they want to offer as a price then great. PCL historically has not been so emotionally attached to the hardware not release it when an opportunity presents itself." "But as of today the tankers are not sold," he added. © 2004 Informa UK Limited

Over 100 Port Officers Undergo Expert Training
More than 100 officers from three ports in the country, servicing the 40th Royal Port Regiment, kicked-off their two-week expert training programme in Northport here Monday. The participants of the refresher course are officers from Northport, Johor Port and Port of Tanjung Pelepas. Commanding Officer Squadron One (SKN1) of the 40th Port Expert Regiment, Mohd Haris Abdul Aziz, told reporters here today that the officers would be exposed to various technical, regimental and other training during their stint. The technical training would focus on ship operations, container operations, maintenance and repair work while the regimental training would focus on marching, shooting, sports and leisure activities. Northport, which sent 79 officers, was the biggest contingent at the training programme. Managing Director and Chief Executive Officer of Northport (Malaysia) Bhd, Datuk Basheer Hassan Abdul Kader, who witnessed the programme launching here said that the role of the regiment as important, especially during emergency, to carry out essential services in order to avoid disruption to international trade. "They are ready to face an emergency situation anytime," he added. Northport, he said, had been carefully in evaluating and selecting its officers from all key departments like container, conventional, marine and engineering to join the contingent set up since 1965. The port regiment is one of four units established by the Government in 1963. The other key units that would be deployed during an emergency are Railways, Tenaga Nasional Bhd and water services. © 2004 BERNAMA.

Ports blame Saudi Arabia for 9-11
PORTS of New York and New Jersey have joined a lawsuit against Saudi Arabia, blaming the Saudis for funding the 11 September 2001 attacks on the World Trade Center. The port authority, which owns the land on which the twin towers was built, also lost 84 employees in the attack. Timing of the filing came just as the three-year statute of limitations expired on Friday afternoon. The Port Authority of New York and New Jersey said in a statement yesterday that it had an obligation “to preserve its legal options at this time”. Spokesman Steve Coleman said the bi-state agency was joining a seven-billion-dollar lawsuit filed last week in US District Court in Manhattan by the investment firm Cantor Fitzgerald, which lost more than 650 workers in the attacks. The suit accuses the Saudi government of providing “funding and material support and substantial assistance” to Al Qaeda and Osama bin Laden. “We have a responsibility to the millions of people who live and work in the region as well as to our bondholders to pursue every legal avenue to recover the losses we sustained on 11 September,” the Port Authority statement said. © Lloyd's Register - Fairplay Ltd

FASC chairman blasts conferences
RISING freight rates could have an adverse impact on international trade, John Y Lu, chairman of the Federation of Asean Shippers’ Councils, has warned. Lu, who is also chairman of Singapore National Shippers’ Council, was addressing FASC’s 27th AGM in Singapore today. He noted that transport costs would dictate the pace of expansion of international trade. “Freight rates have been on the increase over the past year, which could have an adverse impact on international trade,” Lu emphasised. He was strongly critical of liner conferences, describing the conference system, which fixes freight rates for different lanes, as the “largest single obstacle to a normal relationship between shipping lines and their customers, the shippers.” Branding shipping as an “upside down industry,” Lu said that in what is the only exception in today’s world, service providers dictate rather than practice the ‘customer first’ approach. In a show of force and unity, 60 delegates from shippers’ organisations in Asia, America and Europe are attending the two-day meeting, which began with the launching of the Asian Shippers’ Council. © Lloyd's Register - Fairplay Ltd

Singapore targets marine insurers
SINGAPORE is actively encouraging the marine insurance sector to set up or transfer operations to the island city. Singapore practices an “open market entry policy”, said transport minister Yeo Cheow Tong, pointing out that a concessionary tax rate of 10% has been introduced to insurers for the underwriting of all types of offshore businesses. Specific schemes for P&I clubs and for hull and liability businesses have also been created. Further measures would be introduced based on feedback from local and international marine insurance players, Yeo said. The minister’s comments came at a welcome reception of the 2004 International Union of Marine Insurance (IUMI) Annual Conference yesterday. The global marine insurance sector is worth $15Bn annually and is currently dominated by Europe, he said. The move to encourage insurance is part of Singapore’s plan to grow into an International Maritime Centre, Yeo explained. © Lloyd's Register - Fairplay Ltd

Collision captain was drunk
CAPT Piotr Lozinski, of the Cyprus-flagged bulker Ual Rodach, has pleaded guilty in US federal court to operating a vessel while under the influence of alcohol. The court in Houston, Texas sentenced Lozinski on 9 September to a one-year probation and a $4,000 fine. The Polish national is also banned from operating a vessel in US waters as a master during his probation, Coast Guard Lt Christopher Ogle told Fairplay. The incident occurred on 30 August 2003 when Lozinski’s ship struck the moored LPB barge Kirby 15803 in the Houston Ship Channel. Lozinski was attempting to moor his vessel at the Manchester Terminal when the collision occurred, leaving a 1.7m² gash on the Rodach’s stern and a fracture in the barge’s starboard gunwale. Marine investigators Lt Matt Orendorff and Senior CPO John Brown went aboard the Rodach that evening to investigate and immediately suspected alcohol use by the master and ordered a blood test. It was found that Lozinzki was over five times the commercial limit of 0.04. The Rodach is owned by Hartmann Schiffahrts and operated by Universal Africa Lines. © Lloyd's Register - Fairplay Ltd

London Club claims at 20-year low
THE London P&I Club’s level of claims are at a 20-year low following a 14% fall in claims for 2003-04 compared with the previous year. Chairman John Lyras said he believes the achievement “is a reflection of the selectivity of our underwriting". He adds that such selectivity results in part from tactical decisions “based on the Club's ship inspection programme and other means of assessing members.” The Club annually inspects about half of the 30Mgt entered with the club, which Paul Hinton, chief executive of A Bilbrough & Co - the managers of the London Club, believes “to be by far the highest in the industry." He said regular inspections not only help to ensure that the entered tonnage meets an acceptable standard, but monitors compliance with the ISM Code. "Clearly, strict compliance assists when it comes to reducing the number of accidents resulting in P&I claims." The London Club is one of the members of the International Group of P&I Clubs. © Lloyd's Register - Fairplay Ltd

Asian shippers join forces to battle box rates monopoly
SINGAPORE – The search for regulatory protection by shippers in Asia against “monopolistic practices” by liner conferences in setting freight rates has resulted in the formation of the Asian Shippers’ Council. The ASC was founded yesterday in Singapore and comprises, the Federation of Asean Shippers’ Councils, the India subcontinent, Oceania, greater China and North Asia. Japanese shippers will not be joining the new group, as they enjoy a different environment to shippers in the rest of Asia and have a much stronger voice. FASC chairman John Lu, a driving force behind the new Asian Shippers’ Council, said that it would give the region’s shippers a unified voice. “Now in Asia you have all the national shippers’ council but you don’t have a kind of all Asia shippers council that brings everybody together. So the view of Asian shippers are very loosely organised,” he said. One of the key aims of the ASC will be to seek regulatory protection for Asian shippers. While the power of liner conferences has been tempered in Europe with the EU Competition Law and the in the US with the Ocean Shipping Reform Act, shippers in Asia have no such protection, except in Japan. “Asian shippers are subject to the onslaught of monopolistic practices in liner conferences,” Mr Lu said in a speech to the opening of the FASC annual general meeting at which the new Asian Shippers’ Council was launched. “Asian shippers are desperately seeking regulatory protection. Failing which, they will be forced to joint their efforts for the abolition of anti-trust immunity for liner conferences,” he said. A European shipping line executive felt that European style competition regulations would not work in Asia as it lacks the economic and political unity that European nations have taken decades to build. The intra-Asia trades were also seen as too diverse for such regulations. © Informa Asia Publishing Limited.

Global hull discounts cost $1bn
SINGAPORE - Massive price-cutting by super-cheap insurers is costing the global marine hull industry around $1bn, it has been revealed. Underwriters, mainly outside the traditionally dominating markets, are taking shares of hull risks at substantial discounts on business that ought to be boosting the total global premium, which is languishing at just under $4bn. Although the “claims lead” underwriters in London and other resolute markets set what they see as viable prices, brokers are placing parts of the risk where they can get much easier prices. On average, shipowners end up paying only 78% of the claims lead price, and in some cases the discount is as much as 26%. Senior underwriters are shying away from identifying in public what they see as the offending markets, but delegates to the annual conference of the International Union of Marine Insurance quizzed outside the hall cited examples from Russia, South Korea and even Norway. They said the undercutting had been going on for a decade, but was becoming more acute because of the dire state of their sector. Simon Beale, chairman of IUMI ocean hull committee, declined to be drawn into naming the markets that were to blame, but supported the sentiments of another top London underwriter, Clive Washbourn, who accused reinsurers of dragging the market down by backing potentially insecure capacity. Mr Beale gave the example of a fleet where the insurance had been discounted by as much as $900,000. He said premium rates for hulls were averaging $4.70 per dwt, compared with $8.30 in 1994, yet insurers were carrying significantly more exposure on their books, whether measured by size, number or value of vessels. © Informa Asia Publishing Limited.

Lim lashes delays and discounts
SINGAPORE - A call for urgent action to tackle shipping bottlenecks in the world’s ports has been issued by David Lim, group president and chief executive of Neptune Orient Lines. He also warned ship operators against offering hamburger fast food-style discounts to their customers, advising them instead to choose technology-backed solutions that sliced clients’ business costs. In a keynote speech on the opening day of the 2004 conference of the International Union of Marine Insurance, the container shipping chief admitted: “Almost every major port around the world is experiencing delays and congestion — and this is before the flood of new vessels comes on stream. “In America and elsewhere, rail services that clear cargo from the ports were downsized in recent years and now find themselves stretched beyond capacity to cope with double-digit demand growth.” Mr Lim said that, until recently, the problem of congestion had been given insufficient attention. Now there must be urgent action to increase the capacity of infrastructure, through more construction and high productivity. Governments and local communities had a big role to play. Around the world, local objections were slowing the development of much-needed infrastructure, based on fears of environmental stress, such as air pollution, impact on wildlife or increased noise levels and traffic congestion. “We can understand why such objections arise, and we might object too if we lived in such neighbourhoods. But roads and ports are the arteries and vital organs that keep an economy healthy. “Shortages will arise if we frequently delay cargoes. Then either prices will rise, hurting consumers immediately and directly; or inventories and stockpiles will have to increase, raising costs and wastage across the entire economy. “Eventually this puts even more stress on the local and global environment.” © Informa Asia Publishing Limited.

Sime Darby stake
MALAYSIA - Sime Darby is looking to capitalise on growth in the offshore oil and gas exploration market with a S$223m (US$133.8m) buy of a 30% stake in Jaya Holdings. Five major shareholders in the Singapore offshore supply boat operator and boat builder have sold 223m shares or a 29.9% stake in the company to Sime Darby at S$1.00 per share. “The transactions present an opportunity for the Sime Darby Group to capitalise on the growth in the offshore oil and gas exploration and production industry and extend its service offerings in the oil and gas support value chain,” Sime Darby said. Jaya Holdings operates a fleet of Anchor Handling Tug Supply vessels with an average of five to six years and also builds such vessels at its yards in Singapore and Batam. The company is also investing in a shipyard in China to build small tankers. © Informa Asia Publishing Limited.

European builders 'are not dying'
THE head of the major European shipyard association has called for builders to plan a strategy that will ensure profitability in the future. Reinhard Lüken, General Secretary at the Community of European Shipyard Associations, acknowledged moves towards consolidation but warned that there is no master plan and “no one knows what the future will be like”. He said he hoped the restructuring of Izar in Spain would lead to the development of a Europe-wide strategy, but “for the time being it is not happening”. Lüken didn’t hold out much hope of the Spanish government finding buyers for some of the yards in the Izar group, although he applauded Madrid for tackling a problem that has been ignored for the past decade. He accepted that failure to find buyers would be “disastrous” for shipyard workers in Spain, but he could not understand why they were opposing the separation of military from merchant building “if this saves Izar from bankruptcy”. Lüken is adamant that European shipbuilding is not dying, and points out that yards won more orders in the first quarter than in the whole of 2003. “In the global shipbuilding market you need technology … we have that. You need capital … most of the world’s ships are financed by European capital. What we do not have,” he said, “is global rules, a level playing field in order to compete.” © Lloyd's Register - Fairplay Ltd

Asian Shippers' Council launched
THE Asian Shippers’ Council (ASC), a new organisation representing the interests of cargo owners and exporters, was launched in Singapore yesterday. The chairman of Singapore National Shippers’ Council John Lu was elected as the inaugural chairman of ASC today. “ASC will serve as a forum for Asian shippers to discuss issues of interest to present and advocate an Asian view to the international community,” a statement explained. The Singapore government has awarded a grant to enable an ASC secretariat to be set up in the city-state, Lu said. Meanwhile, the Federation of ASEAN Shippers’ Councils (FASC) members agreed at the AGM to continue to lobby governments to remove anti-trust immunity for shipping which is “a privilege enjoyed by no other industry". Calling for substantial changes to the system of liner conferences, FASC stressed the need for reforms that would create “true economic partnerships” between shippers and carriers that results in market driven environment. © Lloyd's Register - Fairplay Ltd

2006 start for accident commission
A permanent Norwegian Commission of Inquiry that will investigate accidents at sea will start work early in 2006, says Trond Eilertsen, shipping partner in the law firm Wikborg & Rein. The new system is designed to rectify known problems in the present maritime inquiries system, whereby courts, comprising of a judge and two maritime experts, investigate incidents. “There has been concern that several accidents have not been properly investigated,” Eilertsen told Fairplay. This is mainly due to the lack of adequate expertise of judges in maritime aspects, he added. Legislation to allow the creation of the permanent Commission has been passed, based on recommendations of a working group presented in 1999, but Eilertsen confirmed it would not come into force until the first half of 2006. The new system will allow the accumulation of experience as the same members will investigate a number of incidents, in line with the existing aviation practices. The exact composition of the commission has not yet been decided. Additionally, the new system will widen the master’s and/or owner’s responsibility to report an accident whenever life has been lost or there has been serious injury. © Lloyd's Register - Fairplay Ltd

Klang makes a noise
MALAYSIA - Container throughput at Port Klang, Malaysia’s largest port, is forecast to hit 5.2m teu this year. Transport minister Datuk Seri Chan Kong Choy said that throughput at the port should rise 8% this year over the 4.8m teu recorded last year, having grown at 16% in the first half of the year compared with the same period a year earlier. “We are confident of achieving the target based on the performance so far,” he said. “The government will continue to upgrade the port facilities and market them to liners.” © Informa Asia Publishing Limited.

Malaysians set sights on entry to Iraq bunker trade
MALAYSIA - Malaysian Merchant Marine is entering the bunker supply market in Iraq through a joint venture with Iraqi Oil Tankers Co as a platform for expanding into the large tanker business. The Malaysian shipowner is confident about the 50-50 joint venture, which will start operations in Basra despite the continuing security threat. MMM said that the venture with IOTC, an arm of the Iraqi Ministry of Oil, would operate as a bunker trading supplier in Umm Qasr, Basra and all the oil terminals and ports in Iraqi territorial waters as well as the Arabian Gulf. Operations will start with the Malaysian company providing two tankers, which will be chartered to the joint venture. MMM will be in charge of the joint venture’s commercial and operational management. “MMM is expected to increase its revenue as a result of income derived from both sale of bunker oil and charter proceeds from the two tankers,” the Malaysian company said. Although starting out in the bunker supply industry, MMM clearly has much wider ambitions for the joint venture on the basis of soaring oil prices and strong demand globally. “By virtue of this joint venture MMM is also looking into the possibility of transporting crude oil and other oil products in the near future,” the company said. “MMM is optimistic that this joint venture will afford immense international business opportunities and also will serve as a platform for MMM’s entry in the tanker business consisting of VLCCs, suezmaxes, aframax and panamax tankers.” The company at present operates a fleet of five small oil and chemical tankers and also has four bulkers and four car carriers. © Informa Asia Publishing Limited.

Temasek takes control of NOL
SINGAPORE government investment arm Temasek Holdings has achieved its immediate objective of gaining majority control of booming liner and logistics giant Neptune Orient Lines. As its mandatory conditional offer deadline for shares it did not already own ended at 1530 local time (0830 GMT) today, Temasek, through its subsidiary Lentor Investments, owned 50.99%. The offer has thus become unconditional. When the offer was made on 3 August Temasek – which also owns port operator PSA – held just over 30% of NOL stock. Though acceptances amounted to fewer than six per cent of the total equity, Temasek had mopped up a sizeable number of shares through a series of open market purchases at the offer price of S$2.80 ($1.66) to take its stake to nearly 47% yesterday. “Lentor has no intention of extending the offer and options proposals beyond the final closing date,” Goldman Sachs said today on behalf of Lentor. According to the Singapore takeover code, the final closing date is 29 September, 2004. © Lloyd's Register - Fairplay Ltd.

IMO raps Manila's knuckles on ISPS
BRENDA Pimentel, the IMO’s regional co-ordinator for Asia, has criticised the Philippine government’s lack of clear responsibility in the adoption and implementation of the ISPS Code. Speaking today before the annual general membership meeting of Filipino Association for Mariners’ Employment (FAME), Pimentel asked whether “everybody (in the industry) knows why the Office for Transport Security (OTS) exist and its role in the implementation of the ISPS Code.” She was apparently referring to the duplication of security functions by the Philippine Coast Guard (PCG) and Maritime Industry Authority (Marina) when the OTS was formed in May. The PCG has noted that the Philippines is the only country that has not designated its Coast Guard as the lead agency in enforcement of the ISPS Code. The lack of clear responsibility, Pimentel said, provides one of the reasons why the IMO comes in to provide “technical co-operation and external assistance” to developing countries such as the Philippines. © Lloyd's Register - Fairplay Ltd.

Singapore eyes LNG hub status by Marcus Hand
SINGAPORE has ambitions to be a gas trading hub in the future as it studies building an LNG terminal. "We are also studying the possibility of constructing a LNG terminal and developing a market for gas trading," Vivian Balakrishnan, Senior Minister of State for Trade & Industry told the 20th annual Asia-Pacific Petroleum Conference in Singapore. In August the Republic opened a tender for a feasibility study as to whether it should build a LNG terminal. A LNG terminal is expected to cost S$1bn and take six or seven years to build. "Over time, we believe that like oil, gas will develop into a more widely traded commodity that will play a pivotal role in the energy market,"Dr Balakrishnan said. "Riding on Singapore's experience in building an oil hub will give us a firm foundation to develop into a hub for gas." The world's third largest oil trading hub Singapore registered over US$104bn in physical trade and US$101bn in derivative trade last year. © 2004 Informa UK Limited.

Have your say!
THE Philippines, as the main supplier of seafarers, has been worried that its position was under threat from China, Russia and the Ukraine. But figures from the Seafarers International Research Centre shows the south-east Asian country has begun to regain the confidence of ship owners and managers. This is underlined by the number of local offices being set up. Managers cite the Filipinos’ communications skills, quality performance and hard work. However, the totals show another concern. While 21,000 of the 40,000 Ukrainians employed last year were officers, together with 23,000 of Russia’s 40,000 and 13,500 of China’s 30,000, seafarers from the Philippines are predominantly ratings: 90,000 out of 131,000. What’s your experience of Filipino seafarers? Do they have the potential to solve the continuing shortage of officers or will the answer lie elsewhere? Where will tomorrow’s officers come from? Write to letters@fairplay.co.uk. © Lloyd's Register - Fairplay Ltd 2004.

East Timor ferry
INDONESIA - The largest shipyard, state-run PT PAL, has won a deal to build a ro-ro passenger and car ferry for the East Timorese government. No details of the cost of the ship have been released. The vessel, which will have the capacity to carry 300 passengers together with vehicles, cargo and cattle, is being funded by the German government through the Kreditanstalt fur Wiederaufbau (KfW) credit agency. The ship will operate from the East Timor capital of Dili to Oecussi and Atauro island, providing a cheaper alternative to road transport. © 2004 Informa UK Limited.

Evergreen by numbers
TAIWAN - Ship spotters around the world will be delighted to know that Taiwan’s largest maritime company has gone out of its way to make its vessels easier to distinguish. The Taipei-headquartered firm has confirmed that all newbuildings henceforth will be colour coded to match their specific division. Subsequently, Taiwan’s Evergreen Marine Corp and Panama’s Evergreen International will be painted dark green, those operated by Italy’s Lloyd Triestino dark blue and those operated by Hatsu Marine of Britain black. This is a further effort by chairman Chang Yung-fa, pictured above, to make his divisions stand out as much as possible as distinct entities. The chairman has put in place a plan to order 50 ships before the end of the decade so shipbuilders better stock up on their coloured coatings fast. © 2004 Informa UK Limited.

Hutchison wins Laem Chabang
HUTCHISON Port Holdings has won the concession to build, operate and transfer six container terminals at Laem Chabang in Thailand. The 30-year concession was won by a combined bid from Hutchison and Lexton (Thailand). Hutchison/Lexton were one of two groups to pass the technical requirement, the other being PSA Singapore/Singa-Thai/Bangkok Success/Meechai Planner. Regional Container Lines/Dubai Ports International’s bid was dropped due to a technical failure. Only three of the 11 groups who paid $12,500 for bid documents actually presented a bid. The chairman of the selection committee, Samart Yollapak, said Hutchison/Lexton will pay $1.3Bn and an additional $250M depending on whether targets are achieved. Yollapak said the committee will now submit its findings to the government for approval. The six terminals are expected to cost $400M and it is hoped that they will increase Laem Chabang’s throughput to 3.5M TEU. © Lloyd's Register - Fairplay Ltd 2004.

CONTAINER: de Trenck labels situation as "lethargic"
Citigroup shipping equity analyst Charles de Trenck sees a tepid time for the container trades where others see strength in the trade. "Despite good volume data, pricing data just released surprisingly shows weaker than expected rates on most major corridors. Transatlantic rates to the US actually declined in second quarter over first quarter," said the analyst, called the Containerisation International reference data as lethargic. The West Coast ports congestion has been talked up to keep pressure on rates. IN addition to talk of West Coast delays, there is talk that Wal-Mart is rushing cargo. The tie ups have started at the Los Angeles and Long Beach gateways started in early June and have escalated doubling turnaround time. The shipping team at Deutsche Bank sees the congestion as a short-term positive for container lines. The congestion is an indicator of both strong demand and a good excuse to impose talk rates higher. That pitch had better be persuasive because containership orders have flowed again, said Alphaliner, revealing that "Orders for 60 cellular ships totalling 210,000 teu have been declared in August alone, pushing the 2004 order tally to 345 ships and 1.25m teu." By their count, the total orderbook has now passed the 3.5m teu mark, representing just over 50% of the existing fleet. © TFInforma.com.

DRY BULK: Asia Freight-Rates seen firm on Chinese demand, new-crop eyed.
Chinese mills will dance with new-crop North American grains to spice up the panamax market. "Compared with earlier this month, business is getting more active," said an official at a Japanese shipping company. "I don't see any factor to push down the market at the moment." Modern panamax rates for the benchmark U.S. Gulf to Japan route are ticking along at $53 to $54 a tonne on a spot basis, steady from a week earlier. Looking forward the rates are creeping upward with October at $54 to $55 a tonne, and rates for November shipment indicated at $56 to $57. "Rates are rising inch by inch," a Seoul broker said. "Chinese demand seems to be recovering. In particular, steel mills that had financial problems are starting to operate normally and their stocks seem to be falling." Chinese firms have recently been importing iron ore at a rate of about 18 million tonnes a month, up around 80 percent from a year ago, an official at another Japanese shipping firm said. Imports slowed to about 13 million tonnes a month after China took steps to rein in its overheating economy in April. But Chinese buying has regained power after a few months of adjustment, he added. "If the current pace is maintained, Chinese imports of iron ore are expected to surpass 200 million tonnes this year, almost double of Japanese imports," the official said. Another addition to tonne mileage demand is strong European demand for Indonesian and Australian coal, obviously a more distant source for Europe compared with South America and Africa. Daeyang fixed the 1998-built, 74,000-dwt D'Amato relet Alabanda with Oct. 8-12 delivery in the U.S. Gulf for a trip to the Far East at a firm $36,000 daily plus a $640,000 ballast bonus. It was a disappointing week for the Capesize market with easier rates reported from both the Atlantic and Pacific basins, but the market won't stay down for long, sources said. Seyang was said to have taken the 1982-built, 138,90-dwt Good News with Sept. 22-24 delivery Shekou for a trip via east Australia redelivery South Korea at $40,100 daily. Remarkably the handymax sector is snapping at the heels of the panamaxes. Star Shipping took the 2002-built, 50,296-dwt Nord Monaco for three to five months trading with end-September/early October delivery China at a good $31,500 daily. © TFInforma.com.

VLCCs: Rates rise of OPEC promise.
VLCC rates have ticked back a touch to W107 after a climb that came OPEC's move to open the taps. West African rates to China/Taiwan are also softer at WS94. Freight prices surged essentially 40% for the United States and Europe to W105 by the close on Friday, from around W76 last week a mark up of 38 percent. VLCC voyages on the bellwether Gulf to Singapore route also shot higher to the W107.50-W110 area from W87.50 last week. "Owners are now looking to obtain higher levels for the next round of fixtures. There were a total of 37 fixtures reported and we currently expect no more than 29 modern VLCC capable of loading within the next 30 days, which would certainly indicate scope for further gains in the near future," E.A. Gibson shipbrokers said in a trading report. Surging prices were helped higher by Saudi Aramco's chartering arm Vela International Marine, which booked up at least five VLCCs to the United States for loading in October, for arrival in November ahead of the peak northern hemisphere winter. The tone of the market has also been made more expensive by the news that Saudi oil interests have booked two VLCCs at $100m each. People paying top dollar for tanker tonnage will certainly not dampen the market. © TFInforma.com.

Hutchison Thai bid wins
THAILAND ¨C Hutchison Port Holdings is reported to have been selected to more than double capacity at Thailand's main port of Laem Chabang. But questions are being asked over the way the bidding process was structured. ¡°We are happy with the Hutchison offer because it is not easy to have someone who is willing to invest Baht17bn ($410m) for us,¡± senior Thai transport ministry official Samart Yolpak told Reuters. A Hutchison spokesman said it did not comment on future port development. Hutchison beat off bids from a consortium led by PSA International and a partnership between the Port of Dubai and Regional Container Lines. Hutchison is to spend the money developing the six terminals at Laem Chabang. The Port Authority of Thailand has already spent Baht8bn reclaiming land for the terminals. The decision to award the contract to Hutchison is likely to prove controversial. As early as April industry sources were claiming that Hutchison would win the contract even though the tender was yet to be issued. On Friday The Nation newspaper in Thailand ran a lead story saying that the tender had been weighted in favour of technical management and business plan rather than the amount of revenues the port operator would generate for the government. © 2004 Informa UK Limited.

NYK and Singapore's MPA in security exercise
SINGAPORE - A joint anti-terrorism training exercise has been mounted by Nippon Yusen Kaisha and the Maritime and Port Authority of Singapore. The exercise, staged last week, assumed that MPA had intelligence of terrorist plans for an unidentified ship to attack LNG Jamal, the 112,069 gt NYK liquefied natural gas carrier, which was anchored off the coast of Singapore. The session included a simulated emergency situation where patrol boats blocked and chased a suspicious ship approaching the LNG Jamal at high speed. NYK said that the initiative had been taken in response to continuing instability in Russia and Iraq, with a view to ensuring the safety of ships in the straits of Malacca and Singapore. The company said that it had raised the level of security for operations on approximately 500 carriers, including chartered ships. © 2004 Informa UK Limited.

Indian policy caution
INDIA - The Indian National Shipowners¡¯ Association has cautioned the Ministry of Shipping against showing any cargo preference to vessels acquired through the bareboat charter cum demise route. While welcoming the BBCD route for tonnage acquisition in the draft maritime policy, the Shipping Corporation of India chairman and managing director Prabhat Kumar Srivastava said: ¡°Cargo preference to BBCD vessels must conform to guidelines of the World Trade Organisation. The importance of the Indian flag should not be diluted. Under WTO guidelines, there cannot be a preferential cargo scheme for a foreign flag vessel against one¡¯s own flag.¡± Vessels acquired by the BBCD route do not fly the Indian flag, and are often registered under a flag of convenience. However, they do come under the Indian flag at the end of the contract. The association is open to granting a second right of refusal to BBCD vessels, but the first right of refusal for Indian cargo movement must be given to Indian flag vessels. © 2004 Informa UK Limited.

Indonesia on lookout for bombers
INDONESIA has stepped up security at its sea ports as the hunt is on for two Malaysian bomb experts, named as Azahari bin Husin and Noordin Mohd. The security alert follows last week’s bomb blast at the Australian embassy in Jakarta, which killed 10 Indonesians and injured many others. Azahari and Noordin are said to have trained recruits for the embassy attacks, and also plotted the Bali bombing in October 2002 and the attack on the Marriott Hotel in Jakarta in August 2003. More police officers are to be deployed at the country’s 141 ports to guard against possible attacks and to keep track of movements of terrorists. “We will prevent bombers [who attacked the Australian embassy] from leaving via sea ports,” said Hari Sabarno, Co-ordinating Minister for Political and Security Affairs. Sabarno has taken over from Susilo Bambang Yudhoyono, who is expected to win the presidential elections this month. Vigilance will also be maintained to prevent the smuggling of illegal explosives, Sabarno added. © Lloyd's Register - Fairplay Ltd 2004.

Limburg attackers ‘had inside knowledge’
SINGAPORE - Terrorists must have gained inside shipping knowledge for their speedboat attack on the very large crude carrier Limburg off Yemen in October 2002, a shipmanager who dealt with the aftermath has suggested. Almost two years after the assault, which brought to the fore the terrorism threat to global shipping, the incident, which cost one life and caused $45m worth of damage, is still yielding fresh lessons to the industry. Dirk Olyslager, marine risk management manager at Antwerp-based Belgibo, highlighted the security riddle in a detailed history of the incident,during a presentation to the International Union of Marine Insurance meeting in Singapore. Mr Olyslager pointed out that the ship was holed in the one tank that was laden with oil: “Is this coincidence? I doubt it,” he said. “We still do not know where the information came from.” Between loading in Ras Tanura and arriving at the terminal, the ship would have exchanged papers between terminals and between agents, and loading plans must have been transmitted, “so somewhere some intelligence must have leaked. It would be pure luck to hit the one laden tank out of five.” Mr Olyslager said it was fortunate for the ship that the explosives-laden assault craft struck a frame, rather than piercing the hull between two frames. The damage and resulting fire would have been much more severe. Five supporters of al-Qa’eda are currently appealing against jail sentences imposed by a Yemeni court for their alleged part in the attack. © 2004 Informa UK Limited.

Halim Mazmin deal
MALAYSIA - Shipowner Halim Mazmin is in talks with Mediterranean Shipping Co over a buy and lease-back deal for two containerships. “We are looking at dealing directly with Mediterranean Shipping Co on a buy and lease-back arrangement,” Halim Mazmin chairman Tan Sri Halim Mohammad told reporters after the annual general meeting in Kuala Lumpur. The two ships are expected to cost $70m. No details on the size of ships were given. “We have the candidates but the asking prices are very high. So, we will wait until the prices stabilise,” he said. The company is also in talks on a joint venture in Jeddah Port, focusing on leasing tankers and “other land based business”, he said. © 2004 Informa UK Limited.

Pertamina may have violated laws
INDONESIA’S competition watchdog, Business Competition Supervisory Commission (KPPU), has found a “strong indication” of violations of existing competition laws by state-owned oil and gas giant Pertamina. The commission is probing Pertamina’s controversial sale of two VLCCs to John Fredriksen’s Frontline. If these indications turn out to be true, the sale could be annulled and any party found guilty in the tendering process could be fined up to Rp25Bn ($2.6M). The guilty could also face an ‘unlimited charge’ for damages. The 30-day hearing has provided indications that the bidding process to determine the sale was not fair, KPPU executive Sutrisno Iwantono said. The commission heard evidence from newly installed Pertamina president Widya Purnama, former president Ariffi Nawawi, and state minister of state-owned enterprises Laksamana Sukardi. Views were also sought from Frontline and India’s Essar Shipping, which had reportedly offered a higher price. © Lloyd's Register - Fairplay Ltd 2004.

Collisions in Singapore waters
A DOUBLE collision in Singapore waters involving the containership Merkur Bridge occurred in the early hours yesterday, although no injuries or pollution have been reported. The 9,597gt, Liberian-registered vessel was overtaking a Singapore naval vessel, RSS Persistence, when it altered course to avoid the product tanker High Endurance. In during so the Merkur bridge initially hit the RSS Persistence then collided with the High Endurance. A fire (which was extinguished by crew members) was started in the engine room of the High Endurance and a small hole was sustained in its port quarter above the water line. A bunker tank, which contained 46 tonnes of gas oil, was also damaged. The extent of damage to Merkur Bridge has yet to be determined, but Singapore’s Maritime and Port Authority (MPA) said the vessel is in a stable condition. The naval vessel sustained 'minor scratches'. The ships are now anchored outside the Traffic Separation Scheme with salvage tugs are standing by. Navigational warnings have been issued and MPA said it is investigating the incident. Traffic along the Singapore Strait is unaffected. © Lloyd's Register - Fairplay Ltd 2004.

Liner exemptions 'must be revoked'
AUSTRALIAN Shipping lines' blanket exemptions from certain anti-competitive prohibitions should be revoked, the Australian Competition and Consumer Commission (ACCC) said yesterday. The commission was commenting on its submission to the Australian government's Productivity Commission review of Part X of the Trade Practices Act 1974. "In its current form, Part X places a great deal of faith in anti-competitive arrangements between shipping lines being, on balance, a positive for Australia," said ACCC chairman Graeme Samuel. He added, "The potential for poor outcomes for Australian exporters and importers using the services provided by the liner agreements - lower quality, reduced services and higher prices - is apparent. What is not so clear is whether the collusive liner agreements provide benefits which outweigh those detriments. Essentially, what the ACCC is proposing is that the net public benefit of particular agreements between shipping lines be established prior to them being exempted from Australia's competition law.” According to the ACCC, developments in Europe and the US have shown that "the tide is turning" against shipping lines being granted automatic exemptions from competition law irrespective of the impact on competition. © Lloyd's Register - Fairplay Ltd 2004.

Pirate raiders thwarted by quick-thinking tanker crews.
INDONESIA - Two oil tankers were able to frustrate attempted pirate attacks in separate incidents in Indonesian waters last week, the latest piracy round-up from the International Maritime Bureau reports. But, according to details published by the IMB yesterday, these were just two of the six piracy outrages against merchant shipping worldwide in the last week. In the first case, three armed pirates boarded an unnamed vessel at Dumai at 0335 LT on Monday, and threatened some of the crew with knives. Crew members rallied to their defence, causing the assailants to flee empty-handed. The second case occurred last Saturday, when pirates driving two speedboats attempt to board a product tanker. According to the IMB, the incident occurred in the Gelasa Straits at around 1030 LT. The ship's duty officer raised the alarm and took evasive manoeuvres, causing the pirates to abort their plans. On the same day in Malaysia, a bulk carrier at anchorage off Manis in Sarawak was boarded at around 0330 LT by a single robber armed with a knife, who seems too have climbed up the anchor chain. Once again the duty officer raised the alarm and the robber escaped empty handed in a waiting boat. Two piracy incidents were also recorded in Jamaica. At 0300 LT on Friday last week, six robbers armed with guns, knives and crowbars boarded a vessel at Port Esquivel inner anchorage. The team managed to break into the forward lockers and steal some of the ship's stores. When the crew were mustered the pirates made of in a motor boat. In a separate attack five pirates armed with guns boarded a boxship in Kingston last Wednesday. © TFInforma.com.

Bush makes maritime a priority
INVIGORATING the US maritime industry will be a priority for a re-elected President George W Bush, according to a position paper issued this week by the Bush-Cheney re-election campaign. "To compete in the global economy of the 21st century … the US needs a maritime policy tailored to 21st century needs," the paper stated, and if re-elected, Bush plans to help provide conditions under which the US maritime industry can compete on the world market and grow. The paper cites shipbuilding, ship repair and the training of merchant seafarers as priorities under the plan. The plan says the Jones Act should be continued and programmes such as the Maritime Security Program should be maintained. In the document, Bush pledged to "vigorously pursue negotiations aimed at ending international practices that disadvantage the industry," although he was not specific on what practices he was targeting. Domestically, the paper focused on developing and improving port and intermodal infrastructures and increasing jobs within the maritime industry. © Lloyd's Register - Fairplay Ltd 2004

Baltic to launch new Asian tanker route by Marcus Hand
THE Baltic Exchange is to launch a new trial tanker route of assessment covering Indonesia to Japan in response to requests from members in Singapore. The new trial tanker route is for 80,000 tonnes heated crude from the port of Dumai, Indonesia to Chiba in Japan with laydays and cancelling days 14 and 21 days in advance respectively. Maximum age of tankers in the assessment is 15 years. The new route comes in response to calls from Singapore based members of the Baltic Exchange for more regionally specific trades within Asia.It has been under development for sometime with the Baltic Exchange chief executive, Jeremy Penn, stressing earlier this year that they had to be routes with real life trade and volatility. The Baltic Exchange estimates that up to 15 spot fixtures a month take place on the new route carrying up to 1.2m tonnes of crude oil. Reporting will start on October 4 with it contributing to the Baltic Dirty Tanker Index after a short trial period. The announcement is being made in conjunction with the Baltic's Tanker Freight Derivatives Forum in Singapore on September 23 as it tries to buildup its presence in the region. "These latest enhancements to Baltic freight market assessments underline our commitment to the tanker market and Asia in particular. We also plan to add further Asian routes to our portfolio in the near future," Mr Penn said. In addition to the new route five new Singapore-based shipbrokers, or branch offices of international brokers will be added to the Baltic's tanker reporting panel. Joining the panel are Singapore based tanker shipbrokers Odin Marine (Singapore) and Island Shipbrokers, along with Clarksons (Asia), Simpson & Spence Young (Singapore) and McQuilling Brokerage Partners (Singapore) whose UK and US based offices already make assessments to a number of Baltic tanker routes. The companies will team up with Eastport Chartering in making daily assessments to the Baltic's Asian tanker routes. A total of 15 companies based in the USA, Europe and Asia now make daily tanker market assessments. "The Baltic understands the need for assessments during the Asian working day and will work towards this goal. Freight derivatives are traded in many different time zones and it is vital that the Baltic thinks globally to help this market," Mr Penn said. It is a complaint of some Asian based member that indices are not published till 16-00hrs UK time which is midnight in most East Asian countries. © 2004 Informa UK Limited

Baltic launches Indonesia to Japan trial tanker route
UK - The Baltic Exchange is to launch a new trial tanker route of assessment covering Indonesia to Japan, in response to requests from members in Singapore. The new trial tanker route is for 80,000 tonnes of heated crude from the port of Dumai, Indonesia to Chiba in Japan, with laydays and cancelling days 14 and 21 days in advance respectively. The maximum age of tankers in the assessment is 15 years. The new route comes in response to calls from Singapore-based members of the Baltic Exchange for more regionally specific trades within Asia. It has been under development for some time, with Baltic Exchange chief executive, Jeremy Penn, stressing earlier this year that they had to be routes with real-life trade and volatility. The Baltic Exchange estimates that up to 15 spot fixtures a month take place on the new route carrying up to 1.2m tonnes of crude oil. Reporting will start on October 4 with it contributing to the Baltic Dirty Tanker Index after a short trial period. The announcement is being made in conjunction with the Baltic’s Tanker Freight Derivatives Forum in Singapore today as it tries to build up its presence in the region. © informa asia publishing ltd.

Singapore unveils phase-out single-hulled bunker tankers blueprint
SINGAPORE - Singapore has announced details of its phase-out of single-hulled bunker tankers and plans to revise its CP60 bunkering standard. The Maritime & Port Authority of Singapore, which regulates the world's largest bunkering port, is to introduce what it calls a 'gate system' for the licensing of bunker tankers from 1 January 2005, effecting a phase-out of single-hulled tonnage. Singapore's transport minister Yeo Cheow Tong told delegates at the Singapore International Bunkering Conference: "Under the gate system MPA will only issue new harbour craft licences to tankers of 600 dwt and above, that are double-hulled. For tankers below 600 dwt, new licences will only be issued to those less than five years old." From 1 April 2006 single-hulled tankers over 25 years old will only be allowed to carry heavy grade oil in the port for a maximum of two years. Trading will only be allowed with the provision that owners show plans to scrap the old tankers and build new ones. MPA director Khong Sheng Ping said the two-year grace period would allow bunker suppliers to source new tankers, given industry concerns over shortage of shipyard space. The new measures will affect about 12% to 15% of the fleet of 120 bunker tankers operating in Singapore. "This gate system strikes a balance between meeting our international obligations on maritime safety, and ensuring sufficient bunker tanker capacity to serve the industry," Minister Yeo said. Singapore-registered single-hulled tankers, meanwhile, will be allowed to operate up to 25 years or until 2015, whichever is earlier, in line with International Maritime Organization requirements. © tfinforma.com

Criminalisation turns recruits away
EDGAR Gold, the newly-appointed chairman of a Comité Maritime International (CMI) working group investigating the treatment of shipping personnel, has hit out at the "criminalisation of seafarers". Gold, who is Adjunct Professor at the University of Queensland's Centre for Maritime Law and World Maritime University, told a Brisbane seminar today that the increasing incidence of seafarers being arrested or detained was "actively discouraging people from going to sea". "At any time there are 30-40 officers and masters [detained] somewhere in the world," he said. Gold traced the trend back to the Exxon Valdez in 1989 and cited a number of other cases, including the Prestige, Erika and Tampa. In one recent incident which he declined to name, Gold said a ship's master had been arrested and jailed for two months without charge after four Pakistani crew members had deserted in Italy. On the high seas jurisdiction is reserved solely for the flag state or the country of nationality of the seafarer concerned. However, Gold claimed flag states often take no action and coastal states either ignore UNCLOS provisions or bypass international maritime law by bringing charges under their own legislation. Ancillary service providers such as pilots and salvors are now being targeted, Gold said. The issue is on the agenda of the IMO's legal committee in October, although fuller discussion is likely to occur in early 2005. Gold was speaking at a seminar in Brisbane to mark next week's World Maritime Day. © Lloyd's Register - Fairplay Ltd 2004

Filipinos call for new department
FILIPINO seafarers have criticised the government for failing to support the overseas crewing sector despite its huge contribution to the Philippine economy. Holding its first summit in Manila today, the United Filipino Seafarers (UFS) vowed to support the passing of a bill that calls for the creation of the Department of Maritime Affairs (DMA) as part of a solution to the bureaucratic maze that seafarers face in processing their employment requirements. In his remarks during the forum, UFS president Nelson Ramirez said the DMA would end the Filipino seafarers’ problem of proceeding to several government offices in the processing of employment requirements while applying for jobs. The proposed department consolidates the more than 10 state agencies that handle seafarers’ concerns. “They bring in more than $2Bn to the country’s coffers each year but the government has given them minimal support, especially now that competition is very stiff,” Ramirez said. He stressed that the four-day summit would open doors of opportunities to seafarers and their families and help them improve their standard of living as various sponsoring companies set up booths aiming to attract the seafarers’ families to go on alternative business dealing with franchising, networking, livestock and other livelihood projects. © Lloyd's Register - Fairplay Ltd 2004

IMO must take lead in creating global training standards
THE future development of seafarer training could be assisted if the International Maritime Organization-sponsored specific training packages aimed at creating internationally acceptable standards of competency, says Keith Read, director-general of the Institute of Marine Engineering, Science and Technology. This, he says, would prevent different interpretations of the standards. He also believes there would be an increase in emphasis on competence-based and dual-ticket training. Imarest has recently accredited Britain’s Maritime and Coast Guard Agency Certificate of Competency for Chief Engineer for Associate Member Imarest and Incorporated Engineer and the MCA Certificate of Competency for Second Engineer for Associated Member Imarest and Engineering technician. Mr Read says Imarest accreditation of training and academic courses taught at maritime colleges ensure high standards are maintained in these colleges and a level of international standardisation is achieved. “Imarest has recently developed standards of professional competence for the seagoing marine engineer and the marine technologist, which includes the sea-going deck officer,” he says. “The institute also publishes books that have become standard texts in marine colleges around the world such as Design of Propulsion and Electric Power Generation Systems (Hans Klein Woud and Douwe Stapersma).” Imarest has recently made the training provided within the Royal Navy more attractive to commercial ship operators by streamlining the process whereby RN engineers can achieve chartered engineer, incorporated engineer and engineering technician registration. It is also actively involved in developing links with the large number of maritime colleges in China and the Indian subcontinent. Mr Read also believes the link between sea appointments and shore-based jobs needs to be made more obvious. “There will have to be a greater emphasis on the development of leadership, management and commercial skills including knowledge of maritime law, commerce and business at an earlier stage in an individual’s career,” he says. “The training of cadets will have to become more structured to accommodate this and there will probably be a greater number of dual-ticketed officers. Shipping companies need to make a seafaring career more appealing to the younger generation by making all these points apparent.” Imarest believes that the IMO recommendations for training of seafarers is appropriate, although it emphasises the importance of quality of sea-time and training while on board ship. Mr Read also believes there will be an increase in the use of electronic provision, including simulation equipment, e-learning and distance learning. “The delivery of the training periods at sea needs to be more rigorously enforced with the minimum of academic tuition provided as part of a fully integrated package of learning,” he says. Whether existing training practices are meeting the requirements to produce highly qualified seafarers is difficult to say. Mr Read finds some practices are very good and meet the needs of the industry and the seafarer while others leave much to be desired. He says: “In order to avoid not meeting the requirements to produce highly qualified seafarers, training providers must maintain a continuous dialogue with shipping companies. New technologies and techniques, in particular, should be included in courses taught at training colleges at the appropriate time. “IMO, in particular, should ensure confidence in the external audit of the maritime administrations in different countries.” On the question of investment in seafarer training Mr Read believes this must come from the shipping companies, adding: “If companies are to maintain high standards in their workforce and avoid corporate liability they must take more responsibility for the competence, and therefore inherently the training, of their seafarers.” © 2004 Informa UK Limited

Singapore alert to Tanjung Pelepas bunker threat
SINGAPORE authorities say they are taking seriously the threat of competition to its US$8bn a year bunker industry from neighbouring Tanjung Pelepas where a US$400m storage facility is to be built. KIC Oil and Gas has announced plans to build a 1.2m cu m storage facility and blending facility at the southern Malaysia port next door to Singapore. The US$400m investment is expected to be completed by 2007. "The threat is inevitable and we are monitoring developments very closely. We take the competition very seriously," said Michael Tang, assistant director of the Maritime & Port Authority's Marine Services Department. The facility would cater to Maersk Sealand and Evergreen Marine who use Pelepas as their regional transhipment hub. The decision by Maersk to move to Pelepas in 2000 and Evergreen to follow in 2002 sent shockwaves through Singapore's port industry. At present with no storage facilities in Pelepas bunkers at the port normally come from suppliers in Singapore, business that could be lost once the Malaysian port has its own storage. © 2004 Informa UK Limited

Marina will protect marine life by Teoh Teik Hoong & Celeste Fong
PUTRAJAYA: The RM40mil marina project on Pulau Tioman is being built to control and manage yachting activities that might otherwise cause more damage to the environment, said Transport Minister Datuk Seri Chan Kong Choy. He said the marina, which is one of 11 being planned under the 8th Malaysia Plan, would allow the Government to control such activities in a more structured manner. “This is the practice of all the beautiful islands in the world. Even in the Great Barrier Reef in Australia, they have a marina there to regulate yachting activities and it has not destroyed the marine life there. “The Government has set aside RM372.4mil to build 11 marinas to woo more yachts to the country,” he told The Star. Chan said more yachts were expected to come to Malaysia, especially to Tioman which is one of the most beautiful islands in the world. “Everywhere else in the world, there are typhoons and hurricanes which make it unsafe for yachts. We are disaster free, which makes the country the destination for international yachts,” he added. Without proper berthing facilities, the expected increase in the number of yachts would result in improper anchoring of such vessels all over the island, destroying more corals and polluting the environment. Chan said the marina project had received all the necessary approvals from the relevant authorities – Tioman Development Authority, Pahang Department of Environment, Rompin Land Office and the Marine Parks Department. “We have adhered to all the conditions laid out by the authorities. When the project starts, we will be very strict in ensuring that the contractor complies with all the conditions set,” he added. Chan said his ministry was concerned about the environment, especially the corals and other marine life off Tioman. According to him, 46 yachts of various sizes had moored in Tioman last year. For the first seven months of this year, 44 yachts had moored in Tioman. Chan said there were eight existing private marinas – two located in Langkawi (2), Perak (2), Port Klang (1), Port Dickson (1), Johor (1) and Sabah (1). Two marinas – in Kuala Kedah, Kedah and Batu Uban in Penang were completed last year. Another three are expected to be completed next year. They include Tioman, Muar (Johor) and Georgetown (Penang). Another six are being planned and will be located in Mentangor (Pulau Pangkor), Pulau Indah (Selangor), Tanjung Pengelih (Johor), Tanjung Gemuk (Pahang), Kuala Terengganu (Terengganu) and Malacca. Chan said the Government had passed the Langkawi International Yacht Registry 2003 and was in the midst of finalising the Langkawi Overseas Yacht Owners Companies Act to further regulate and offer more incentives for local and international yacht owners and companies. “When these two Bills are in force, more yacht owners will be encouraged to head for our waters,” he added. The Tioman marina project off Kampung Tekek sparked an outcry among locals, visitors and environmental groups, who feared the project would destroy more than 200 endangered giant clams, 300-year-old corals and other marine life. The project, covering 12.7ha, would have yacht-docking facilities for 36 yachts, a waste oil reception facility, an administration building, shop lots and a public cargo jetty jutting 175m into the sea.© 1995-2004 Star Publications (Malaysia) Bhd.

NGOs set up online campaigns
PETALING JAYA: Several signature campaigns and petitions have been initiated by conservation groups voicing their concern and dismay over the approval of the controversial RM40mil marina project in Pulau Tioman. Two non-governmental organisations – the Malaysian Nature Society (MNS) and WWF-Malaysia – have each set up online campaigns on their websites www.mns.org.my and www.wwfmalaysia.org urging the public to voice their opinion on the project. “We are dismayed and disappointed over the recent marina yacht project off Kampung Tekek, which will potentially affect and destroy a highly sensitive and biologically diverse coral reef area,” the MNS petition stated. WWF-Malaysia’s Panda Passport campaign has garnered over 7,000 responses from all over the world more than a week after it was set up. “The marina project would not only defy Tioman’s status as a nationally protected marine park but would also be taken as a sign that marine park protection in Malaysia is not to be taken seriously,” the WWF-Malaysia campaign said. Meanwhile, 54 divers and volunteers from all over the world worked together to clean up nine different dive sites off Pulau Tioman on Sept 19, in conjunction with the International Clean-up Day. The divers came from Singapore, China, Japan, Germany, Switzerland, England, Brazil, Ireland, Holland, Paraguay, France, Zimbabwe and Kenya. They removed 298 Crown of Thorns, 136kg of rubbish from the beach and fishing lines.© 1995-2004 Star Publications (Malaysia) Bhd.

Syed Mokhtar tightens grip on PTP
MALAYSIAN tycoon Syed Mokhtar has tightened his grip on the Port of Tanjung Pelepas (PTP) through his listed vehicle MMC Corp (formerly known as Malaysia Mining Corp). In a statement to the Kuala Lumpur stock exchange on Friday, MMC said that it is buying out the 19.9% stake owned by Seaport Terminals. Seaport is also controlled by Mokhtar, but is privately held. The purchase of 39.7M shares, which is valued at M$756M ($199M), will be made through the issue of 395.9M new MMC shares. The transaction, which is subject to approvals, is expected to be completed by the second quarter of 2005. The move will give Mokhtar a 70% stake in PTP as MMC already owns 50.1% of the stock. It will also give him majority control of MMC, paving way for raising capital to fund PTP’s second phase expansion. “PTP is expected to grow in tandem with the increase in world containerisation and trade,” MMC said. PTP, which is competing with neighbour Singapore for transhipment cargo, is 30% owned by AP Møller-Maersk. © Lloyd's Register - Fairplay Ltd.

US pledges to ensure fair ISPS boardings
by Rajesh Joshi. COMPLAINTS about haphazard ship boardings under the International Ship and Port Facility Security Code, including flagrant misuse of authority by officials in some cases, have prompted US authorities to standardise requirements for all federal enforcement personnel boarding ships at national ports. Asa Hutchinson, undersecretary for border and transportation security, has ordered these guidelines in a memorandum to Robert Bonner, commissioner for customs and border protection, and other immigration and transportation security officials. The guidelines, formulated by a working group that included CBP as well as coast guard officials, appear to be directly influenced by a policy advisory promulgated by the coast guard in June for its own officials. Nonetheless, Captain Michael Karr, chief of the US Coast Guard's office of compliance, admitted at a Washington conference last week that the agency is "embarrassed" by reports of boarding officials behaving unprofessionally, and that "word is going out" to stamp out such cases. Most complaints are strictly anecdotal. They include officials' refusal to show identification to the crew, and in some cases, display of "fake" identification documents said to carry pictures of animals and space aliens. There have been cases of alleged arrogance, with boarding officials showing a lack of respect for the crew and refusing to heed the latter's insistence that the code be followed. The consensus, according to ship's agents, is that coast guard officials are usually the more professional of the lot. The real problem is seen to be Customs and Border Protection officials, whose remit includes immigration. © 2004 Informa UK Limited.

Temasek offer for NOL closes
by Marcus Hand. TEMASEK Holdings US$1.6bn offer for Neptune Orient Lines closed today as the Singapore government investment did not extend its offer Temasek spokeswoman Rachel Lin confirmed that the S$2.80 per share offer had closed at 15-30hrs (Singapore time) and that there was no further extension. The final level of Temasek shareholding in NOL is expected to be known later today. Temasek controlled 64.04% of NOL after the close of the trading day on September 28. It would need to gain control of 90% of NOL's share capital to delist the company from the Singapore Exchange, a level observers did not expect it to reach. © 2004 Informa UK Limited

US to rule on cruise access
THE US Supreme Court announced yesterday that it will rule on whether foreign-flag cruise ships must comply with US disability access laws. The case – Douglas Spector v NCL – could have considerable financial ramifications for cruise operators calling in the US. It could potentially require the refit of older vessels that have not been built for handicap accessibility. The International Council of Cruise Lines (ICCL) executive VP Ted Thompson told Fairplay that the group is pleased by the Supreme Court's announcement, noting that a definitive decision will give the industry better guidance on hardware requirements and would end the lawsuits constantly filed against operators. The downside, he added, is the possibility that the US Supreme Court could impose legal requirements on foreign shipbuilding of passenger vessels. In a prepared statement, NCL said "inconsistent court decisions around the country are confusing to both cruise lines and their guests", that it was glad the Supreme Court had taken the case, and that it was confident the high court will affirm that NCL has acted properly. © Lloyd's Register - Fairplay Ltd.

Shipowner - allow refugees ashore
COASTAL states should take responsibility for disembarking people rescued at sea and stowaways without delay and the ISPS Code should not be allowed to make disembarkation more difficult, a shipowner said today. Speaking at the SMM exhibition in Hamburg, Dr Matthias Reith, a joint owner of Germany's Orion shipping company, said IMO guidelines on the treatment of people rescued at sea do not go far enough. He said that the IMO's Guidance on the Treatment of Persons Rescued at Sea, adopted by the Maritime Safety Committee in May and due to enter force in 2006, should have "put an even firmer commitment on coastal states to accept people ashore once they have been rescued." Nonetheless, he said, the guidelines were a very welcome initiative. Reith cited P&I Club statistics from 2001 estimating that as many as 1,000 people each year die in the Gibraltar Straits alone, and said that it was impossible to know the global figure. He has issued detailed instructions to his company's master