News Flash ...


September 2007


WEEK 1 (1 - 8 September 2007)

Challenges rise for Marine Police
Johor Baharu - The marine police force celebrated its 60th anniversary today, acknowledging that the challenges it faced in safeguarding the nation's waters have increased tremendously. The criminals seem to know the whereabouts of the marine police every time the patrol units set out to sea, Southern Region Marine Police Chief ACP Kamal Bakri Medan said. He said the criminals had their people everywhere, disguised as fishermen and others, and the marine policemen had to come up with innovative ways to outsmart them. Nevertheless, the 2,714 personnel of the force vowed to do their utmost to protect the country from any threat, he said at the 60th Marine Police Day celebration at the Southern Region Marine Police Base in Tampoi here. Kamal said that last year, the Southern Region Marine Police seized RM3.5 million worth of smuggled goods compared to RM1.9 million in 2005. He also said that the force had been allocated RM212 million under the Ninth Malaysia Plan (2006-2010) to buy new boats and equipment. © 2007 BERNAMA.

China looks to boost control of its maritime resources
The Chinese government is stepping up efforts to secure its maritime resources, boosting its surveillance of the East China Sea and South China Sea and enacting legislation to tighten control over islands within its territorial waters. With maritime resources seen as essential for sustainable economic development, China has been looking to cement its effective control over areas whose sovereignty is disputed. China is at odds with Japan over the development of gas fields in the East China Sea, while it is also involved in a territorial dispute in the South China Sea over the Spratly Islands, a string of oil-rich rocky outcrops that is also claimed by Brunei, Malaysia, Vietnam and other nations. According to reports from the China Ocean News and other media, the China Fishery Law Enforcement Command expanded regular patrols of its warships and aircraft in the East China Sea to include what it considers to be its entire territorial waters in February. The patrols began in July last year. The command, which belongs to the China's State Oceanic Administration, has the task of supervising China's territorial waters, conducting research on maritime resources and keeping an eye on illegal dumping. This summer, the command carried out a joint five-day exercise of its navy and air forces in an area in the South China Sea, running through drills for monitoring and following foreign warships and suspicious vessels. Six 1,000-ton class warships and two aircraft took part in the drill. The command is set to upgrade the level of its drills in the future, according to sources close to the government. The command also plans to add eight more warships and vessels to its fleet as well as three more aircraft in the near future, since quite a few of its 90 existing vessels are small and their equipment obsolete. With a budget of more than 1 billion yuan (132.4 million dollars), the Chinese government plans to introduce large-scale warships and modernize equipment for surveillance and research, according to the sources. Although vessels belonging to China's Fishery Law Enforcement Command are not equipped with weapons in principle, they are expected to provide full support to the Chinese Navy, which is introducing submarines, missiles and other state-of-the-art weapons to ensure its maritime interests, according to the sources. Meanwhile, the Chinese government is also looking to enhance the framework of legislation deemed necessary to secure maritime resources. According to the Aug. 28 issue of the China Ocean News, the State Oceanic Administration recently established a new department in an effort to boost protection and control of islands. The new department will take charge not only of drawing up policies on protection and control of islands, but will also keep records on the use of uninhabited islands and will assess the ecology of islands. China's Legal Daily newspaper reported that eight regulations and laws, including those concerning the development, protection and control of islands are expected to be enacted in the next one to two years. Of 7,000 islands within Chinese territorial waters, more than 6,000 are said to be uninhabited and left almost untouched. Therefore, the Chinese government is believed to be devising legislation to protect and control these islands, and these efforts are likely to be linked to future use of these islands for the country's economic development, according to the sources. China seems to be acting on the belief that such efforts will give the country a legal framework that will help it legitimize its effective control over disputed areas, such as the Spratly Islands. © The Yomiuri Shimbun.

"Historic" cooperation reached on Malacca Straits safety
Singapore - Southeast Asian nations have agreed to an "historic" cooperation mechanism to help improve safety in waterways which are vital to world trade, officials said Tuesday. Delegates from Singapore, Indonesia and Malaysia began three days of meetings to launch the new "Cooperative Mechanism" to enhance the safety of navigation and environmental protection in the Straits of Malacca and Singapore. One-third of the world's trade and half of the world's oil supply are carried through the Straits by about 90,000 vessels each year, said a document presented to the meeting. "The importance of this meeting lies in the fact that it launches a new framework for cooperation in the Straits of Malacca and Singapore," said Efthimios Mitropoulos, Secretary General of the International Maritime Organisation, a specialised United Nations agency. "I view the Mechanism as an historic breakthrough of great significance," he said in a speech. He told AFP the Mechanism "is the institutionalisation of the need to do something to ensure safe passage, safe and uninterrupted passage, through the Straits in all circumstances, in view of the tremendous significance, the strategic significance, of the Straits to seaborne trade and the world economy at large." The cooperative framework aims to promote dialogue between the littoral states, users and other stakeholders, as well as coordination in implementing projects to promote safety of navigation and environmental protection. Users of the Straits, the shipping industry, and others would be able to contribute financially or provide other assistance to the projects, the framework said. In his speech, Mitropoulos said that with an increasing volume of shipping, it may not be fair for coastal states alone to bear the cost of providing adequate navigation aids. "The time may, therefore, have come for all parties who benefit from the existence of a safe infrastructure in the Straits to reflect seriously on their collective social responsibilities and to find ways and means, possibly through voluntary contributions, to discharge their relevant social obligations." Mitropoulos said the littoral states have identified six safety projects, two of which already have sponsors. China has undertaken to replace navigation aids damaged by a December, 2004 tsunami which devastated the region, he said, while China and the United States are working on preparednesss for hazardous material spills. Funds will have to be secured for the other four projects, including a top-priority project to remove wrecks which pose a hazard, he said. © 2007 AFP.

Fuel smuggling ring smashed
Kuala Lumpur - Two commercial ships have been detained in Malaysia in what is described as the country’s largest case of diesel-smuggling. Enforcement officers from Malaysia’s Domestic Trade and Consumer Affairs Ministry impounded $500,000 ($140,000) worth of Malaysian-subsidised fuel found on Monday on a Myanmar-registered cargo ship named as the Hai Soon. The fuel had been pumped from a Malaysian-owned tanker named as Victory Star, although the names appear to be false. The ships had been berthed next to each other at Butterworth’s Prai Barter Trade wharf. Enforcement head Guna Seelan told security news service Sea Sentinel that his unit had been monitoring the vessels for a long time. Twelve suspects, including 10 crew, are being held. They face a maximum fine of $71,000 and up to three years in jail. © Lloyd's Register - Fairplay Limited 1999 - 2006.

International users of Malacca Straits urged to help boost safety
Singapore - International assistance is needed to enhance safety and security in the vital Malacca and Singapore Straits, the secretary of the International Maritime Organisation (IMO) said Tuesday. Describing navigational safety and security as "crucial and far reaching," IMO's Efthimios Mitropolous described the launch of a new framework for cooperation in the waterways as an "historic breakthrough." More than 200 high-level participants from 70 countries were attending the Singapore meeting, the culmination of collaboration between Indonesia, Malaysia and Singapore, the littoral states. The three-day gathering formally kicked off deliberations on a "cooperative mechanism" between the three countries, user states and other stakeholders in charting a new framework. The vehicle creates a regular platform for dialogue between the littoral states, user states and other stakeholders, engages the user states in capacity building and provides avenues for voluntary contributions to projects that advance safety and environmental protection. The IMO is recognized for deepening cooperation. Praising China and the United State for their generous help following the December 26, 2004 tsunami, Mitropoulous said he was "disappointed that no voluntary contributions have been announced to remedy wrecks or supply navigational aids." He praised Indonesia, Malaysia and Singapore for the maritime air patrols which have resulted in a sharp drop in piracy and significant improvement in the security situation amid fears of terrorism. The three neighbours have also adopted the latest technological measures to improve navigation of one of the world's busiest and most important waterways. "We realize that many of the world's economies depend on use of the Straits," said Haji Bahari, secretary-general of Malaysia's ministry of transport. Noting that Malaysia plans a large sum of money for navigational aids, he urged users of the Straits "to play a bigger role." "It is a constant challenge to the littoral states to ensure navigational safety, environmental protection and maritime security," said Singapore's Deputy Prime Minister S Jayakumar. Some 90,000 vessels and about a third of the world's trade pass through the Straits annually. "Despite the perennial search for alternative routes, the reliance on the Straits will only increase as the world's energy demand, powered by Asia, continues to grow as projected," Jayakumar said in his keynote address. © 2007 Earthtimes.org.

Malacca 6-point maritime pact
Singapore - The three Malacca Straits littoral states – Indonesia, Malaysia and Singapore – have launched a new framework for co-operation to tackle navigational safety and environmental protection in the Malacca and Singapore Straits. The initiative, named the Co-operative Mechanism, was formally launched today by Professor S Jaya Kumar, Singapore’s deputy PM, law minister and co-ordinating minister for national security. Kumar hailed it as a “landmark development … that takes into account the legitimate interests of the international community”. Delegates at the inaugural forum identified six projects for immediate attention. These cover wreck removal, hazardous and noxious substances, Class-B AIS transponders on small ships, tide, current and wind measurement systems and replacement of navigational aids. The initiative will be administered by a new maritime fund, with donations drawn principally from stakeholders and states that use the narrow but intensively used straits. © Lloyd's Register - Fairplay Limited 1999 - 2006.

Malaysia, Indonesia and Singapore set up co-operative mechanism by S Ramesh
Singapore - Malaysia, Indonesia and Singapore have come up with a Co-operative Mechanism to ensure navigational safety and environmental protection in the Straits of Malacca and Singapore. This was decided at a meeting in Singapore attended by participants from the three countries. Singapore's Deputy Prime Minister S Jayakumar said the Mechanism needs to provide a transparent and inclusive platform for dialogue with all interested stakeholders. About a third of global trade and half of the world's oil flows through the Straits of Malacca and Singapore, visibly one of the world's busiest sea lanes. Transport Minister Raymond Lim said: "Where shipping is concerned, we cannot over emphasise the importance of international co-operation. The littoral states, user states, international and industry organisations all have a part to play in the Straits of Malacca and Singapore. "Our common interest lies in ensuring that the Straits remain safe, open and secure for shipping." According to an international study, in about 13 years' time, nearly 20 million barrels of oil are expected to pass through the Straits of Malacca. Given the sheer volume and traffic, Professor Jayakumar said it is a constant challenge to the littoral states to ensure the navigational safety, environmental protection and maritime security for shipping in the Malacca Straits. "Congestion and accidents in the Straits can cause major delays, with significant negative repercussions to the whole supply chain and the coastal and marine environment of the three littoral states. The threat does not come from navigational risks alone. These Straits have traditionally had a high incidence of armed robberies at sea," said Prof Jayakumar. The piracy situation, which worsened after the Asian Financial crisis in 1997, has since improved. Indonesia's Transportation Minister Jusman Syafil Djamal, said: "Piracy is going down compared to the year before. The co-operation between Singapore and Indonesia, and Indonesia and Malaysia should be maintained to reduce piracy. We hope we can maintain that by having good co-operation with our security forces." Adding more teeth to the security of the Straits will be the new Co-operative Mechanism developed by the three littoral states of Indonesia, Malaysia and Singapore. It will allow users of the Straits to exchange views, jointly undertake projects or even make direct monetary contributions to the Aids to Navigation Fund. Six projects have so far been identified, among them the removal of wrecks in the Straits, co-operation in capacity building to deal with accidents involving hazardous and noxious substances, and replacing aids to navigation along the Sumatran coastal areas, which were destroyed as a result of the tsunami. Participation of user states and stakeholders in this mechanism is voluntary. Prof Jayakumar said: "Japan has made regular and significant contributions through the Malacca Straits Council, which is supported by the Japanese Government and the Japanese maritime community. They have contributed generously over the past 35 years, having expended nearly US$130 million on improving navigational safety in the Straits. They also helped to set up the Revolving Fund in 1981 to deal with oil pollution in the Straits. "However, we now have a much broader range of stakeholders with different interests, concerns, expertise and capabilities. The Co-operative Mechanism is therefore necessary to provide a transparent, open and inclusive platform for dialogue with all interested stakeholders. "Through its Co-operation Forum, littoral states could spell out their needs and interests. On their part, user states and other stakeholders can consider areas where they can lend support, provide capacity building and functional co-operation through the projects, or contribute monetarily to the Aids to Navigation Fund, all on a voluntary basis. The key is to build on the areas of convergences on which we can develop mutually beneficial outcomes." Secretary-General of International Maritime Organisation (IMO), Efthimios Mitropoulos, said: "The time has now come for the IMO to act as a liaison with stakeholders who may, through voluntary contributions, assist in the implementation of the identified projects." Countries like the United States, Japan and China are already taking part in some joint projects and the Singapore meeting hopes to get more users to play their part in making the Straits safer and more secure. © 2007 MCN International Pte Ltd.

Malaysian minister says terrorism, piracy still threaten Malacca Strait
Kuala Lumpur - Malaysia's deputy prime minister has urged neighboring countries to share intelligence to prevent terrorist attacks and piracy in the Malacca Strait, the Bernama news agency reported Sunday. More than 30 percent of world trade and half the world's oil shipments pass through the Malacca Strait, which is shared by Malaysia, Indonesia and Singapore. Najib Razak said the number of pirate attacks in the waterway has fallen. But he warned that a terrorist attack, which could devastate regional economies, remain a threat. 'For us to combat piracy and to prevent any possible acts of terrorism along the Straits of Malacca, one of the prerequisites is for us to share quality and timely intelligence,' Najib told Bernama. 'Terrorism is a phenomenon that does not confine itself to any single country. Terrorism is fluid, it moves from one country to another, it has regional and even global networking.' Najib, who is also defense minister, called for the armed forces in the region to share information to stamp out 'any form of terrorism.' 'We are in possession of quality intelligence, but at the same time we don't lull ourselves into a false sense of confidence that we know and have everything,' he said. Malaysia's top police official warned in June that a terror attack on ships, the hijacking of ships carrying dangerous materials or the use of vessels to attack ports or land facilities could cripple regional economies. (AFP). © AFX News Limited 2007.

Marine Police Day: 60 years on and very much stronger by Fay Angela D’cruz
KUALA LUMPUR: It is like a cat and mouse game for the marine police trying to keep the baddies out of our waters. They have managed to keep our waters and borders safe for six decades. The marine police turned 60 yesterday and their fleet and manpower have grown 10-fold, from 19 boats and 90 men to 200 boats and 2,178 men. Federal head of training (marine police), deputy Superintendent R. Tharamadurai, said the marine police constantly faced challenges. "Pirates and smugglers are always coming up with new tactics to outsmart us but we also undergo a lot of training to ensure that we have everything under control." Some of the major challenges faced by the marine police include beefing up security in the Straits of Malacca to fight terrorism. The Malacca Straits, a narrow waterway between Sumatra and peninsula, is one of the world’s busiest shipping lanes. Over 50,000 vessels pass through it in a year. A hunting ground for pirates since ancient times, the straits carries a third of global trade and more than 10 billion barrels per day of oil to countries in the Pacific Rim. "We are on top of things. Nothing untoward has threatened," he said. Tharamadurai said piracy and the trafficking of humans and drugs were an ongoing problem but with the new laws, it had been reduced tremendously. "We share information with our neighbouring countries and work together to combat any sort of crime. "We have our diving team which helps in search and rescue mission operations, and helps fisherman when their nets get entangled." He said the marine police also had frequent exercises with the United States, Japan and South Korea. Tharamadurai said the government had set up the Malaysian Maritime Enforcement Agency as an additional security measure in dealing with various threats against merchant ships. The marine police have a commando unit which looks into the security of ships plying the Straits of Malacca and off the coast of Sabah. There is also a tactical unit which deals with piracy and kidnappings. © 2007 NST Online.

New ID scheme for Indonesian crew
Jakarta - Indonesia has approved nine centres for verification of Seafarers’ Identity Documents, ready for its imminent ratification of the ILO Seafarers’ Identity Documents Convention (2003). Seafarer organisations are hoping for an early ratification that would pave the way for Indonesian seafarers to be allowed into US ports. Chairman of Indonesian Seafarers’ Union Hanafi Rustandi told Fairplay that ratification would help remove Indonesia – a predominantly Islamic country – from the US blacklist. The US has given Indonesia $400,000 to set up centres to process seafarers’ ID, though the cost is likely to exceed $1M. The centres will be established at the ports of Tanjung Priok, Belawan, Tanjung Emas, Tanjung Perak, Balikpapan, Makassar, Bitung and Sorong. Indonesia’s ratification will pave the way for nearly 15,000 Indonesian seafarers to man merchant ships bound for the US, Rustandi said. © Lloyd's Register - Fairplay Limited 1999 - 2006.

No moles here, says Johor Marine Police by Teh Eng Hock
Johor Baru - Southern region marine police chief Asst Comm Kamal Bakri Medan assures the public that the force is clean and there are "no moles within the marine police". He said that smugglers and illegal foreigners have been constantly reinventing new "tricks" to avoid detection by the Marine Police. "Some have faster boats, while others seem to know where we are or will be. They have their ‘kakis’ (sources)," he said. However, ACP Kamal Bakri assured the public that the force is clean and there are "no moles within the marine police". "Johor waters are crowded with people. As soon as you start your engine, everyone knows about it,” he said. Among the tactics used to deceive the authorities is the "decoy method," where a diversion is created to distract the authorities. "We chase a speedboat and find that it is empty. The consignment is in the slow boat which comes along later. But we have wised up to this sort of tactic," he said. To counter such challenges, ACP Kamal Bakri said the marine police have been using unmarked boats to keep tabs on illegal activities. "We have also asked for new and faster boats, and, under the Ninth Malaysia Plan, we will soon be getting five units," he said. The Marine Police force celebrated its 60th anniversary Saturday, and ACP Kamal Bakri said the force had come a long way since its inception. "We started with 19 boats and 90 personnel. Now we have 215 boats and 2,714 people," he said. He added that the Southern Region marine police seized RM3.5mil worth of goods last year, as compared with RM1.9mil in 2005. © 1995-2005 Star Publications (Malaysia) Bhd.

Philippines wants fishing agreement in South China Sea
Manila - The Philippines wants an agreement to allow free fishing in disputed waters of the South China Sea, the head of Manila's lower house of Congress said on Tuesday. Speaker Jose de Venecia said Manila had proposed setting up a 'fisheries corridor' in the South China Sea to avoid potential conflicts that could affect peace and stability. 'A fisheries corridor would be a great step to prevent undue arrests of fishermen from ASEAN (Association of Southeast Asian Nations) and China that have created irritants and hindered regional harmony,' de Venecia said in a statement on Tuesday. The fishing zone in the South China Sea ranks fourth among the world's 19 fishing zones in terms of total annual maritime production, according to the Oslo-based International Peace Research Institute. The Philippines, Vietnam, Taiwan, China, Malaysia andBrunei have competing claims on waters in the area. De Venecia said he had mooted the fishing agreementproposal during a meeting with Chinese Defence Minister CaoGangchuan at the House of Representatives on Monday and that Cao was receptive to his idea. De Venecia said the fishing agreement would protect 5million Filipinos relying on the seas for their livelihood aswell as help transform the Spratlys islands in the South ChinaSea from a zone of conflict to peace and cooperation. The Philippines, Vietnam, Taiwan, China, Malaysia and Brunei have competing claims on waters in the area. De Venecia said he had mooted the fishing agreementproposal during a meeting with Chinese Defence Minister CaoGangchuan at the House of Representatives on Monday and thatCao was receptive to his idea. De Venecia said the fishing agreement would protect 5 million Filipinos relying on the seas for their livelihood as well as help transform the Spratlys islands in the South China Sea from a zone of conflict to peace and cooperation. (REUTERS) © 2007 Union-Tribune Publishing Co.

Ship owners fear ISPS 'blacklist'
Jakarta - The Indonesian Shipowners Association has urged Jakarta to respond quickly to US Coast Guard criticism of security standards at local ports, fearing potential loss of trade. Association president Ontoro Surya told Sea Sentinel yesterday: "The government must act immediately on this issue, or else Indonesian ports will be blacklisted. We don’t want our ports or Indonesian flag carriers to be blackmailed by foreign countries, as has happened with our airlines, which were banned from flying in European skies.” Indonesian carriers are still banned from European airspace for safety and security reasons after a series of aircraft accidents earlier this year. In the maritime arena, the Indonesian Department of Transportation reprimanded the management of seven port facilities last week after a US Coast Guard evaluation said they failed to meet ISPS Code requirements (see Sea Sentinel 03 September). Surya said that if Jakarta does not respond quickly, the IMO might compel foreign carriers to avoid Indonesian ports. “If it really happens, I am afraid all export and import activities will be taken over by Malaysia, Singapore or South Korea, and Indonesia will forever remain a feeder.” As it clarified to Sea Sentinel today, the IMO in fact has no such powers – but the US Coast Guard does maintain its own blacklist of ports worldwide whose security it considers sub-standard. Ships that call at those ports may suffer undue delay if subsequently calling in the US. The IMB Piracy Reporting Centre continues to list a number of specific Indonesian ports and sea areas as high-risk. In a separate context, UK-based intelligence provider Exclusive Analysis confirmed to Sea Sentinel last month that small-scale armed robberies still take place regularly in four of these ports due to the lack of effective patrolling. © Lloyd's Register - Fairplay Limited 1999 - 2006.

Singapore will build LNG terminal
Singapore - Singapore will build an LNG terminal in the south western part of Jurong Island, to wean itself off a dependence from Malaysia and Indonesia. The announcement by the Minister of State for Trade and Industry, S Iswaran, follows a call last year by his boss, Minister of Trade and Industry Lim Hng Kiang, for the city-state to diversify its energy sources and meet rising energy demands. The proposed terminal will occupy 30-hectares, with the first shipment expected in 2012. It will be operated and owned by Power Gas; a subsidiary of Singapore Power. In April, deputy-director of the Republic’s Energy Market Authority, Ear Chow Foo, told Fairplay that the new terminal will have a jetty to handle Q-flex vessels of 260,000m³ and two storage tanks. Along with an onshore terminal, Ear did not rule out an off-shore facility. Singapore imports about 5M tonnes of LNG a year. © Lloyd's Register - Fairplay Limited 1999 - 2006.

Week 2 - 4 (9 - 30 September 2007)

Aus to help on Indonesia safety
Jakarta - Australia’s Department of Transport will spend A$23.9M ($17M) over three years on the Indonesian Transport Safety Assistance Package and train its priorities on passenger ferries and coastal Ro-ros. The ferry route between Kupang and Rote island in West Timor will be used as a “model project”. The Australian Maritime Safety Authority’s general manager of maritime operations, Mick Kinley, told Fairplay assistance would be given in capacity building, training, safety management systems and developing standards for coastal ferries and ro-ros. Terming the project as ‘quick wins’, he said, it was still ‘in its design phase at the moment’. Co-operation will also be forged with Indonesia’s Directorate of Sea Transportation and search and rescue agency Basarnas to improve SAR operations. Another project initiative is the identification of possible high-risk routes, caused in no part from the sinking of a ferry in January last year. If the ‘Kupang experiment’ works, similar safety initiatives will also be extended to other routes. One Kupang-Rote ferry is operated by the Department of Transportation, while an express ferry is operated by PT Pelayaran Sakti Inti Makmur. © Lloyd's Register - Fairplay Limited 1999 - 2006.

'Fair' payments for spill fighters
Singapore - Singapore is set to ink a landmark agreement with tanker owners that would ensure smooth and timely payments for agencies fighting oil spills. An MOU between the Maritime and Port Authority and International Tanker Owners Pollution Federation provides for a pre-agreed schedule of rates for oil spill response resources provided by MPA and its “supporting” spill response agencies and resource owners. “With the framework of pre-agreed rates in place, spill response agencies and resource owners can look forward to fair and timely compensation,” Singapore’s minister of state for finance and transport Lim Hwee Hua said today. In her opening address to the International Chemical and Oil Pollution conference and exhibition, organised by MPA, Lim pointed out that P&I Clubs rely on ITOPF to assess claims. Singapore is well equipped to respond effectively to oil and chemical spills and other marine incidents, the minister affirmed. The MOU will be signed during the conference, which concludes tomorrow. © Lloyd's Register - Fairplay Limited 1999 - 2006.

Japan, China not welcome in strait
The Indonesian government has yet again declared that it will not accept direct participation in Malacca Straits security from countries other than Malaysia, Singapore and Indonesia. Defence minister Juwono Sudarsono told the press this week that Indonesia could not accept the offers of Japan and China to provide a physical presence to maintain Strait security. “Their assistance is limited to technical matters,” Sudarsono told reporters. This means Indonesia will not sanction any Chinese or Japanese navy or other military forces being deployed on the waterway. The minister’s statement clarified the request made in June at a security summit in Singapore that Japan, China and South Korea assist in safeguarding the Malacca Strait. He said that Indonesia’s lack of financial resources had been a barrier and therefore asked for external assistance, a decision that sparked controversy at home. Jakarta allocates $3.2Bn to security and defence annually, but only a tiny proportion goes on security in the strait. © Lloyd's Register - Fairplay Limited 1999 - 2006.

Law of the Sea on the move in U.S. Senate
The Senate Foreign Relations Committee this week digs into the major treaty governing international waters: the U.N. Convention on the Law of the Sea. The panel will meet Thursday to hear testimony from senior diplomatic and military officials in support of the treaty, which is one of the few issues now in play on Capitol Hill on which Democrats and the Bush administration are in agreement. Described by many as a "constitution for the oceans," the Law of the Sea provides for a comprehensive framework for navigating and managing the world's oceans. It delineates offshore jurisdictions, including a 200-mile exclusive economic zone that countries can manage at their discretion, and outlines a comprehensive marine protection program with requirements for marine environmental assessments and enforcement of species protection measures. It would allow countries to apply to extract natural resources outside the 200-mile limit. More than 150 nations, along with the European Commission, have ratified the Law of the Sea, which took effect in 1994. In the United States , mining interests, the oil and gas industry, the Navy, and the Defense and State departments have thrown their support to the treaty. Ratification requires approval by the Foreign Relations Committee, a floor vote and the signature of the president. Still, conservative opposition to the treaty lingers, with critics arguing that the Law of the Sea would leave U.S. military operations vulnerable to oversight by an international tribunal created by the treaty -- despite statements to the contrary by senior Bush administration officials who have said the treaty would ensure U.S. ships are free to navigate in international waters, including warships and military support ships (Greenwire, July 18). "As the world's pre-eminent maritime power, leader in the war on terrorism, and nation with the largest exclusive economic zone, the United States should accede to the Law of the Sea Convention during this session of Congress," outgoing Joint Chiefs of Staff Chairman Peter Pace and Vice Chairman E.P. Giambastiani wrote in a June letter to the chairman of the Foreign Relations panel, Sen. Joe Biden (D-Del.). "No country has a greater interest in public order for the world's oceans. Becoming a party to the convention will ensure our leadership role in the continuing development of oceans law and policy." The latest push to ratify the Law of the Sea came in May when President Bush issued a strongly worded statement that asked the Senate to move expeditiously to approve the treaty, leading the Foreign Relations Committee to announce Thursday's hearing and a planned follow-up early in October. On the second hearing, lawmakers will hear from non-governmental organizations and representatives of oceans industries. Officials with groups that follow oceans issues, including the Joint Oceans Commission Initiative and the Pew Charitable Trusts, have been optimistic in recent months about the treaty's chances for passage. "There is no reason we can't get the Law of the Sea enacted in this Congress," JOCI co-chairman Leon Panetta told a Capitol Hill panel in June, reiterating the often-heard contention that the Law of the Sea would pass "95-5" if it could get to a floor vote in the Senate (Greenwire, June 6). That does not mean there are not potential stumbling blocks as the treaty moves to the Senate floor, among them a handful of conservative senators who many believe were key in preventing the Law of the Sea from reaching a floor vote during the last push for ratification, in the 108th Congress. Chief among them is Sen. James Inhofe (R-Okla.), who has already announced his intention to use "whatever means it takes" to prevent a floor vote on the Law of the Sea in this Congress. "I would be opposed just as much now as I was in the past," Inhofe said in May, shortly after the president issued his statement calling for Senate action. "Nothing has changed." Still, treaty advocates will likely be helped by recent diplomatic developments. As polar ice has receded to record lows in recent months, Arctic countries have moved quickly to stake claims on potential new shipping routes -- including the long-sought Northwest Passage linking Europe and Asia -- and seabed areas that may contain significant mineral deposits. Tensions reached a high point in August, when Russian explorers planted a Russian flag on the seabed 2.5 miles below the ice of the North Pole in an effort to stake a claim to the resource-rich area. In response, the Canadian military announced plans to build its first Arctic deep-sea port in the Northwest Passage, the United States launched a scientific mission to map the Arctic sea floor, and Denmark sent an icebreaker to the area. Schedule: The hearing is scheduled for Thursday, Sept. 27, at 2:30 p.m. in 419 Dirksen. Witnesses: Deputy Secretary of State John Negroponte, Deputy Secretary of Defense Gordon England and Vice Chief of Naval Operations Patrick Walsh. © 2007 E & E Daily.

MMC inks deal with Dubai World
Kuala Lumpur - THE owner of PTP and Johor Port has signed an MOU with Dubai World to develop its ports and a maritime centre. Malaysia Merchant Marine (MMC), the owner of the port of Tanjung Pelepas (PTP) and Johor Port, yesterday signed a memorandum of understanding with Dubai World. A statement from the Malaysian bourse, Bursa, says the MOU will seek to explore the opportunities for a maritime centre master plan to comprise oil terminal activities, dry docks, a shipyard, conventional cargo handling facilities and logistics parks. It will also unlock the potential of the reclaimed land of Tanjung Bin, where plans for a bunkering facility were unveiled by Prime Minister Abdullah Badawi in July. The MOU will seek to develop the South Johor hinterland where both ports are located. The partners will spend RM$9Bn ($2.6Bn) on developing a petroleum and maritime industrial zone and $2Bn on the ports, logistics dry docks and a shipyard. Work will start before the end of this year and should be finished by the second half of 2010. © Lloyd's Register - Fairplay Limited 1999 - 2006.

Malaysia needs new trade tack
Kuala Lumpur - A Malaysian ministry call for use of domestic, rather than foreign, shipping lines by offering them incentives is an old refrain, says a retired port official. Ng Lip Yong, Malaysia’s Deputy Trade and Industry Minister and chairman of the Federation of ASEAN Shippers Council, hopes to stem an outflow of foreign exchange earnings by offering local shipping lines incentives to do more business. The proposal follows disclosure that the country paid RM$35Bn ($10Bn) to foreign carriers in 2006, while simultaneously recording a $5.7Bn deficit in its transport trade services sector. However, the port industry observer told Fairplay, shipping lines have received many soft loans and billions of over the years, and there is nothing to show for it. “We discussed the same topic with higher authorities 30 years ago”, he commented. A Malaysian Marine Department official has highlighted Malaysian exporters’ increasing tendency to use foreign rather than local ships, coupled with the low ‘load factors’ from East Malaysia where manufacturing industries are sparse. These elements, together with the new figures, have prompted a review of the foreign carrier component in Malaysia’s trade statistics. Foreign carriers, Ng complained, carried 90% of the country’s goods, causing a “huge chunk” of foreign exchange earnings to leave the country. © Lloyd's Register - Fairplay Limited 1999 - 2006.

Malaysian ministry bans shark's fin soup
KUala Lumpur - Malaysia's Natural Resources and Environment Ministry has struck off shark's fin soup from the menus at official functions, to help conserve the species, a report said Saturday. Minister Azmi Khalid told the official Bernama news agency that the ministry had made the commitment to the Malaysian Nature Society. "By refraining from the consumption of shark's fin soup, it is hoped that the ministry would contribute in one way or another towards the current conservation efforts for sharks species," he said. "Their demise would start off a domino effect, which at each stage could result in the depletion or overpopulation of other fish and marine species leading to an imbalance in the marine ecosystem," he said. Malaysia's population is dominated by Muslim Malays, but there are also large ethnic Chinese and Indian communities. © 2007 AFP.

Strong ringgit hurts bunkerers
Kuala Lumpur - The rise of the Malaysian ringgit in recent months is unlikely to encourage shipping lines to reduce their freight charges. A highly placed source from the Malaysian Shipowners’ Association told Fairplay that an immediate benefit of the ringgit’s rise against the dollar is its use in offsetting bunker rates. “We have imposed a bunker surcharge and now with fuel at $82 per tonne, a rising ringgit may have an impact,” he stressed. He said with the approach of Christmas, the last quarter of the year is usually a season of peak activity for Malaysian shipping lines. This is especially so for shipments of halal (food conforming to the Islamic dietary code) products to the Middle East and also in view of the close of the Muslim fasting month of Ramadan, which is only three weeks away. The ringgit close at 3.4465 to the dollar yesterday – its strongest level since July. ©Lloyd's Register - Fairplay Limited 1999 - 2006.

[News compiled are extracted from various news sources and updated by MIMA Resource Centre. The copyright of the news remain with the copyright owner of the news reports. The information compiled are distributed with good intention and we do not in any way accept responsibility for any error or misfortune resulted from the news. The information does not in any way represent any opinion or comment from the Maritime Institute of Malaysia (MIMA)]

 

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Updated 26092007
© 2007 Maritime Institute of Malaysia