ISSN 0377-452X
REPORT OF SEMINAR
SEMINAR ON SUBSTANDARD SHIPPING IN THE PACIFIC ISLANDS REGION
SUVA, FIJI ISLANDS (13-17 AUGUST 2007)
Copyright Secretariat of the Pacific Community (SPC) 2008
Original text: English
Secretariat of the Pacific Community Cataloguing-in-publication data
Seminar on substandard shipping in the Pacific Islands region (13–17 August 2007: Suva, Fiji Islands): report of seminar / Secretariat of the Pacific Community
(Report of Meeting (Technical) / Secretariat of the Pacific Community) ISSN: 0377-452X
1. Merchant mariners — Legal status, laws, etc. — Oceania — Congresses. 2. Maritime law — Oceania — Congresses.
I. Title II. Secretariat of the Pacific Community. III. Series.
343.0965 AACR2
ISBN: 978-982-00-0241-8 ISSN: 0377-452X
ii SEMINAR ON SUBSTANDARD SHIPPING IN THE PACIFIC ISLANDS REGION Suva, Fiji, 13 – 17 August, 2007
EXECUTIVE SUMMARY
The Regional Maritime Programme (RMP) of the Secretariat of the Pacific Community (SPC) organised a seminar on Substandard Shipping for relevant Pacific Islands’ stakeholders in Suva, Fiji from 13 to 17 August 2007. There were 31 participants from 14 Pacific Island countries and territories (PICTs) representing Cook Islands, Federated States of Micronesia (FSM), Fiji Islands, Kiribati, Nauru, New Caledonia, Niue, Palau, Papua New Guinea, Pitcairn, Samoa, Tokelau, Tonga and Tuvalu. In addition, there were nine people from the region who were utilised as resources personnel together with RMP staff. The resource people from the region were from shipping companies, ports and maritime training schools and administrations. There was also an observer from the Department of Transport and Regional Services (DOTARS), Australia.
The purpose of the seminar was to discuss and develop mechanisms for dealing with substandard shipping at regional and national levels. The seminar was divided into six themes which were: role of government; legal considerations; role of ports; role of shipowners and shipmasters; training needs; and, introducing change. The themes were featured through presentations by the relevant resource people. Some key areas under the themes included international safety requirements, ship surveys, port, administration and shipowner responsibilities, subsidies, marine insurance, derelict vessels, ship management and crew training.
The seminar was enhanced by country paper presentations which assisted in extracting key points of regional and national significance for minimising substandard shipping in the near future. A roundtable discussion was useful in contemplating a regional shipowners’ association. The shipowners expressed interest in seeking membership to the Pacific Islands Maritime Association (PacMA) rather than forming a separate regional association. Upon PacMA’s acceptance, a regional shipowners’ subcommittee could be formed under PacMA in the near future. The breakout sessions in the seminar led to the further refining of the seminar outcomes.
The resolutions from the seminar included the commitment of shipowners to seek membership of PACMA, and to implement the Safety Management System (SMS) onboard their ships; need for a review of generic legislation by Pacific International Maritime Law Association (PIMLA) to include derelict vessels, wreck removal and marine insurance issues; commitment of maritime administrations to the implement Business Excellence after training by RMP; and RMP and PacMA setting up an award system for the industry. RMP was requested to hold another substandard shipping seminar in two years time to measure the level of implementation of resolutions emanating from the seminar. RMP was also requested to continue to provide further training on various related areas.
There was a need for good maritime governance to curb substandard shipping. A national maritime policy was regarded as one of the first steps in developing an efficient, economic and effective maritime sector. Drivers of change in the maritime sector included increased controls as well as legislation. Failure to comply with international standards could lead to serious repercussions for shipping companies, port authorities and international seaborne trade.
iii TABLE OF CONTENTS
EXECUTIVE SUMMARY ...... iii TABLE OF CONTENTS...... iv PROGRAMME ...... vi SUMMARY OF PROCEEDINGS ...... 1 1.0 OPENING...... 1 2.0 INTRODUCTION ...... 1 3.0 INTERNATIONAL SAFETY REQUIREMENTS ...... 2 4.0 SURVEY STANDARDS AND GUIDELINES...... 2 5.0 RESPONSIBILITY OF GOVERNMENT...... 3 6.0 SHIPPING SUBSIDIES ...... 4 7.0 CORPORATISATION GOVERNMENT SHIPPING SERVICES ...... 7 8.0 SAFETY MANAGEMENT SYSTEMS...... 8 9.0 SUITABLE DOMESTIC LEGISLATION...... 9 10.0 PENALTIES: CASE STUDY OF MV OVALAU...... 10 11.0 ENFORCEMENT OF LEGISLATION...... 12 12.0 A MARINE INSURER’S PERSPECTIVE ...... 13 13.0 DERELICT VESSELS: PORTS PERSPECTIVE...... 15 14.0 DERELICT VESSELS: LEGAL PERSPECTIVE ...... 16 15.0 DERELICT VESSELS: SECURITY PERSPECTIVE...... 18 16.0 PURCHASE OF VESSELS...... 20 17.0 MANAGEMENT OF SHIPPING OPERATIONS – INTERNATIONAL LEVEL ...... 22 18.0 CREW DEVELOPMENT AND IN-HOUSE TRAINING...... 23 19.0 PLANNED MAINTENANCE...... 24 20.0 THE ROLE OF THE SHIPMASTER...... 25 21.0 MARITIME TRAINING: SPC PERSPECTIVE...... 26 22.0 SUBSTANDARD CREW ...... 26 23.0 ROUNDTABLE DISCUSSION ...... 28 24.0 BREAKOUT GROUP SESSIONS ...... 28 25.0 GOOD GOVERNANCE...... 41 26.0 NECESSARY CHANGE IN THE MARITIME SECTOR ...... 41 27.0 ROUNDTABLE DISCUSSIONS...... 42 28.0 CLOSING REMARKS AND END OF SEMINAR ...... 43
iv ANNEXES
ANNEX 1 LIST OF PARTICIPANTS ...... 45 ANNEX 2 OPENING...... 50 ANNEX 3 INTRODUCTION ...... 52 ANNEX 4 INTERNATIONAL SAFETY REQUIREMENTS ...... 54 ANNEX 5 SURVEY STANDARDS AND GUIDELINES...... 56 ANNEX 6 RESPONSIBILITY OF GOVERNMENT...... 61 ANNEX 7 SHIPPING SUBSIDIES ...... 68 ANNEX 8 CORPORATISATION OF GOVERNMENT SHIPPING SERVICES ...... 73 ANNEX 9 SAFETY MANAGEMENT SYSTEMS...... 76 ANNEX 10 SUITABLE DOMESTIC LEGISLATION...... 80 ANNEX 11 PENALTIES: CASE STUDY OF MV OVALAU...... 87 ANNEX 12 ENFORCEMENT OF LEGISLATION...... 93 ANNEX 13 A MARINE INSURER’S PERSPECTIVE ...... 104 ANNEX 14 DERELICT VESSELS: PORTS PERSPECTIVE...... 113 ANNEX 15 DERELICT VESSELS: LEGAL PERSPECTIVE ...... 119 ANNEX 16 DERELICT VESSELS: SECURITY PERSPECTIVE...... 122 ANNEX 17 PURCHASE OF VESSELS...... 126 ANNEX 18 MANAGEMENT OF SHIPPING OPERATIONS – INTERNATIONAL LEVEL ...... 136 ANNEX 19 CREW DEVELOPMENT AND IN-HOUSE TRAINING...... 140 ANNEX 20 PLANNED MAINTENANCE...... 143 ANNEX 21 THE ROLE OF THE SHIPMASTER...... 147 ANNEX 22 MARITIME TRAINING: SPC PERSPECTIVE...... 153 ANNEX 23 SUBSTANDARD CREW ...... 159 ANNEX 24 BREAKOUT GROUP SESSION 1 ...... 166 ANNEX 25 BREAKOUT GROUP SESSION 2 ...... 171 ANNEX 26 GOOD GOVERNANCE...... 177 ANNEX 27 NECESSARY CHANGE IN THE MARITIME SECTOR ...... 179
v PROGRAMME
MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY
13/08/07 14/08/07 15/08/07 16/08/07 17/08/07 0800 Registration 0830 Prayer and Opening Remarks
Setting the scene: substandard 0840 Theme 3 Role of Ports Theme 4 Role of shipowner Theme 6 shipping & shipmaster Introducing Change Theme 1 Role of Government Derelict vessels: ports Breakout group 0900 International safety perspective Purchase of suitable vessels session 1 6.1 Good governance requirements
Derelict vessels: legal Management of shipping 6.2 Necessary change 0920 Survey standards and guidelines perspective operations (international level) in the maritime sector
1000 Morning Tea Derelict vessels: security 1030 Responsibility of Government Round table discussion perspective Crew development & in-house
training 1110 Shipping subsidies Group presentations Resolutions Presentation of country Corporatisation of government papers Closing remarks 1150 Planned maintenance shipping End of Seminar 1230 Lunch
1330 Safety Management Systems Role of the shipmaster
Theme 5: Training needs Breakout group Theme 2 Legal considerations Presentation of country 1400 Maritime training session 2 Suitable domestic legislation papers
Penalties: Case study of MV Substandard crew 1430 Ovalau 1500 Afternoon Tea 1530 Enforcement of legislation Presentation of country Roundtable discussion Group presentations 1600 A marine insurers’ perspective papers 1630 End of Day 1 End of Day 2 End of Day 3 End of Day 4
vi SUMMARY OF PROCEEDINGS
1.0 OPENING
Participants were given a warm welcome to the seminar by Captain John Hogan, Programme Manager of RMP. Mr Leo Smith, Secretary of Fiji Shipowners’ Association, gave an opening speech in which he presented a background on substandard shipping in the Pacific islands region (speech attached as Annex 2).
There was appreciation expressed for the invitation given to the private sector to present their views. The private sector was not privy to factual data about the state of shipping in the region, but from readings it was apparent that there were similar and long standing issues in all PICTs. The current state of shipping would be further elaborated in the presentations by the private sector during the seminar. The importance and significance of the transportation sector was explained, and some constraints were highlighted. The main issues in domestic shipping was related to small populations, long distances, low load factors, seasonal peaks, lack of reliability, high costs, usually high subsidies, limited institutional capacity, high levels of government participation, and deficiencies in domestic policies relating to shipping.
New tonnage were usually ex-Europe or ex-Asian countries but unsuited to its new role. Usually the new tonnage was outdated in terms of usage and maintenance. Airfields in outer islands were maintained at high costs, although feeder shipping routes, jetties and navigation signage was all that was needed to restore transportation links to rural locations and outer islands. Reliable and safe shipping services would allow the local communities to get the needed accessibility.
It was hoped that the seminar would seek practical solutions with the involvement of all key players as well as provide realistic and achievable resolutions.
2.0 INTRODUCTION
Captain John Hogan of RMP set the scene for the seminar with an overview of the role of key agencies in addressing critical issues relating to substandard shipping in the Pacific Islands region at the domestic level (presentation attached as Annex 3). Key players included governments, shipping companies, marine insurers, ports, maritime training institutions, lawyers and advisory bodies. There was high dependence on shipping in the region with some countries like Tokelau and Pitcairn, which have no air services, being fully reliant on shipping services. A series of reports had been produced by various agencies over the last 20 years which presented similar findings on substandard shipping issues. It was anticipated that this seminar would make a real difference in raising the standard of shipping in the region. Two recommended definitions of substandard shipping were presented to the participants. There was general agreement by the participants on the definitions.
Six themes were deemed relevant to the seminar. Theme 1 on the “Role of government” highlighted: international safety requirements; survey standards and guidelines; responsibilities of government; shipping subsidies; and corporatisation of government shipping services. Theme 2 on “Legal considerations” looked at topics such as suitable domestic legislation, enforcement of legislation, penalties, and marine insurance. The issue of derelict vessels from the perspective of ports, legal and security was included in Theme 3, the “Role of ports”. Theme 4, “Role of shipowners and/or shipmasters”, covered the purchase of vessels, management of shipping operations including crew
1 development and in-house training and planned maintenance. They formed a critical subset of stakeholders. Theme 5 on “Training needs” looked at maritime training in the region as well as substandard crew issues. Theme 6, “Introducing change”, was about good governance and future changes needed in the maritime sector.
Breakout sessions and roundtable discussions were also planned for the seminar. There was high recognition of existing regional maritime associations with its growing pool of expertise at national, regional and international levels. Country papers were to be presented to share in-country issues and best practices.
THEME 1 ROLE OF GOVERNMENT
3.0 INTERNATIONAL SAFETY REQUIREMENTS
Captain Hogan presented an overview of Flag State responsibilities in the context of international shipping standards (presentation attached as Annex 4). Flag States were required by international maritime law to effectively exercise jurisdiction and control in administrative, technical and social matters over ships flying its flag.
The International Convention for the Safety of Life at Sea (SOLAS) is generally regarded as most important of all international treaties concerning the safety of merchant ships. The earliest version of this convention was first introduced in response to the Titanic disaster. SOLAS came into force in 1974. It specifies the minimum standards for the construction, equipment and operation of ships compatible with their safety. The International Safety Management (ISM) Code presents guidelines for the safe operations of ships and for pollution prevention.
The International Convention on Standards of Training, Certification and Watchkeeping for Seafarers 1995 (STCW-95) prescribes minimum standards relating to training, certification and watchkeeping for seafarers on an international level. Verification of the implementation of the convention by the International Maritime Organization (IMO) is done through the White List - White List is a list of those countries whose information communication to the IMO had been evaluated and found to be giving full and complete effect to the STCW Convention. The International Convention for the Prevention of Pollution from Ships (MARPOL) 1973/78 sets out the guidelines for ship-generated pollution. International Convention on Loadlines (LOADLINE) 1966 sets the minimum permissible free board, according to the season of the year and the ships trading pattern.
It was usually not until a disaster occurred that the public focused on shipping. The international community then reacted by implementing further conventions and legislation. It was challenged that countries contemplate carefully to see the suitability of such international conventions at the national level. Sometimes too much control on ships resulted in diverting the responsibility of ship safety away from shipmasters. Shipowners found it difficult to understand and cope with the large number of legislation and regulations that existed. The increasing rate of change in international maritime conventions was noteworthy.
4.0 SURVEY STANDARDS AND GUIDELINES
This presentation (attached as Annex 5) by Mr Alobi Bomo, the Maritime Technical Security Officer at RMP, outlined the survey standards and guidelines available for the region covering non-SOLAS vessels.
2 The Flag State responsibilities for non-SOLAS vessels included the requirements for surveys and guidelines. SPC member countries used these standards for enforcement. Considering the range of vessel types in the shipping industry, there was a need for appropriate regulation to cover safety of life and cargo as well as environmental protection. The shipowners’ role was critical in this regard together with the roles of maritime administrations and Classification Societies. Surveyors also needed to have an understanding of the industry and the relevant legislation.
Flag State surveyors were primarily responsible for ensuring safety of ships, passengers, cargo and the environment. Surveyors could also be seen as advisors, auditors, presenters of evidence in court and policemen for the Flag State. Some challenges faced by surveyors, such as bribery, lack of experience and conflict of interest, were highlighted. There was generally a lack of qualified surveyors in many countries, attributed to surveyors moving out of the maritime sector as well as retirement.
Pacific Island surveyors contributed to the industry by ensuring that legislation was fit for the industry. In addition, the surveyors played a vital role in the development of the Regional Surveyors Guidelines which was formulated in line with the Pacific Islands Maritime Legislation and Regulations (PIMLAR). The Guideline was important in maintaining surveys up to a standard and also for harmonisation of survey standards across the region. There was a survey sub-committee under PacMA which provided assistance in this area. The way forward was to have regional collaboration, training and information sharing to point the region in the right direction to address substandard shipping.
Discussion
Taulapapa Captain Maselino Tominiko of the Ministry of Works, Transport and Infrastructure in Samoa enquired on the status of the Regional Survey Standards and Guidelines. The Guidelines were ready for distribution to PICTs as it had already been endorsed by PacMA.
5.0 RESPONSIBILITY OF GOVERNMENT
Captain John Rounds, Director of Fiji Islands Maritime Safety Administration (FIMSA), presented an overview of the responsibility of government (presentation attached as Annex 6). It was explained that the presentation was pitched on the international requirements of what governments should be addressing rather than the status quo.
The government’s responsibilities as a Coastal State, a Flag State and a Port State were highlighted. At the international level, the government interacted with other Port and Costal States as well as IMO, shipping industry, marine insurers and classification societies to name a few. At the regional level there were agencies such as Tokyo MOU and SPC to work together with other Coastal and Port States. At the local level, the government as a Flag State interacted with stakeholders such as shipowners, ship operators, ports and the public.
The Flag State, as defined by the United Nations Convention on the Law of the Sea (UNCLOS), has overall responsibility for the implementation and enforcement of international maritime regulations for all ships granted the right to fly its flag. Flag State responsibility could be categorised into infrastructure, ratification of major international maritime treaties, maritime safety, supervision of surveys, ISM Code, maritime security, seafarers competence standard, employment standards, safe manning and seafarers
3 working hour, casualty investigations, movement of ships between flag, repatriation of seafarer, IMO Member State Audit Scheme, participation at IMO and International Labour Organization (ILO) meetings, consultation with shipowners, use of recognised organisations complying with Res A.73, age of fleet, reporting requirement, attendance at IMO meetings, UN Convention on the Conditions for Registration of Ships and Port State Control.
In terms of its role in maritime safety, governments had to ensure compliance with safety at sea standards by monitoring ship construction, maintenance and seaworthiness, manning, labour conditions and crew training. Governments should ensure that each ship is appropriately surveyed. The Flag State issues the vessel's safety certificates indicating compliance with the main international conventions. These certificates are the key to the port state control inspection system. Overall, an issue for Flag States was the huge range of responsibilities for Flag States to cope with.
There was also some elaboration on the performance of Flag States in terms of a shipping company’s performance. The performance of a Flag State may impinge directly on a shipping company’s performance. An example given was that ships flying a flag that maintained low compliance standards would generally be subjected to special Port State control targeting and thus a greater number of inspections. For the compliant operator this can mean unnecessary delays, plus greater possibility for charterers’ penalties. Port State control inspectors may be more inclined to make an issue of routine non-critical deficiencies caused by genuine ‘wear and tear’ during the preceding voyage. Shipping companies and its charterers may also have general concerns about the implications for its corporate image being associated with poorly performing Flag States. High performing Flag States were less likely to tolerate substandard operators. Substandard ships were perceived to have an unfair commercial advantage over the vast majority of fully compliant operators. Substandard ships also damaged the overall reputation of the industry. In co-operation with national and international shipowners’ associations, shipowners who had concerns about the performance of particular Flag States were strongly encouraged to enter into a dialogue with the relevant administrations to improve their record.
Substandard ships were a result of unseaworthy ships being permitted to continue voyages. There were some unscrupulous flags of convenience registers that took on tonnage which should not have been put to sea. In addition, they issued certificates riding on the back of previous certificates without adequate or at times no inspection. Most registers were too quick to issue conditional reservations against Classification Society and granted extensions to defective vessels, thereby allowing them to go to sea again without repairs.
Discussion:
The possibility of IMO’s voluntary audit scheme becoming mandatory in future was raised. PacMA was seen as an ideal forum to discuss issues raised in the seminar.
6.0 SHIPPING SUBSIDIES
The need for subsidies in the region was elaborated by Mr Malcolm Harrison, former Chairman of the Fiji Shipping Corporation Limited (FSCL) (presentation attached as Annex 7). Everyone had a right to transportation, but in developing states this was often taken for granted. In Fiji there are about 100 inhabited islands but only the main islands enjoy reasonable transportation. The problems associated with outlying islands were
4 outlined: irregular shipping services where ships visited only if there was a commercial load or if there were officials visiting; shortage of basic supplies; low trade and lack of economic activity; low standard of living; declining population due to urban drift - low population base cannot support economic growth; and unrecognised economic potential in tourism, seafood products, agricultural products (including copra) and traditional handicrafts.
It was government’s social obligation to ensure that all outlying islands had reasonable transportation but the mechanism for achieving this was not clear. The Fiji government-operated Government Shipping Services (GSS) fleet was primarily tasked to carry government officials and rural development materials to the islands on an as and when required basis, and not geared to cater for commercial passengers and cargo. While commercial ships catered for commercial passengers and cargo, they would only go to viable ports where they could make a profit. Unviable ports that needed shipping services would not be serviced by commercial ships unless they were subsidised.
In the 1996 Shipping Franchise Scheme, islands were grouped together so that a trip was scheduled for a week only. The scheme was reviewed in 2003, after which FSCL was established under the Companies Act in 2004. FSCL is controlled by an independent Board of Directors, who must be from the private sector, and are appointed by the Minister for Transport on a three-year term basis. The purpose of having an independent body rather than a government operator was to maintain its independence from political and government influence, to avoid conflict of interest of being a service provider and regulator (as was the case with FIMSA), and to run as a commercial organisation. An issue with the organisational structure was the control by Cabinet, whereby the Cabinet could change routes and funding for routes based on external reasons.
Some of the operational policies were outlined. The critical elements included maintenance of two operators per service to encourage competition, giving people choice over the coverage of ports, fixed and publicised schedules, penalty for poor service, and statistical data collection for revenue and costs. The franchise subsidy is based on 42% of the calculated operational cost for each route. The operational costs could be improved as it was completely based on ship’s costs with no consideration of company.
A key component of the shipping franchise scheme was to work with the Trade Development Officer to promote economic activities, identify investment opportunities and identify markets for products, to monitor development projects in consultation with development partners, and to promote the work of the shipping franchise scheme in the islands.
The scheme was working to the extent that a regular service was being provided. However, it does not operate in accordance with FIMSA’s regulations. There has never been an accident in the previous years or lives lost. There were not enough ships available. Good management was needed together with good ships, that is, both were equally necessary. The constraints include the following: • Poor quality of available ships • Poor management of shipping companies • High expectations of islanders but reluctance to pay • Contracted companies rely on the franchise subsidy to keep afloat • Subsidies are based on 42% of operational cost, not on total cost, and this is not sufficient to entice suitable operators.
5 Success of the scheme relied on operators to provide better service, on the government to provide the financial assistance, and on the communities to increase trade and economic activities.
Discussion
Mr Smith raised the importance of revising freight rates to match the increase in operational costs, in particular the hike in fuel prices. The Prices and Income Board’s (PIB) freight rates had been unchanged for over 20 years. Mr Harrison confirmed that government had not allowed any increase in freight rates. The argument from government had always been that the people on the islands would not be able to afford higher freight rates.
Captain Hogan enquired whether the existence of two operators had in practicality encouraged competition. Mr Harrison clarified that there was now only one operator because funding had crashed. Before the decrease in funding the two operators had competed effectively.
Captain Hogan indicated that the issue of poor management of shipping companies was a prominent one. RMP had organised a course on the management of shipping companies, and proposed that they could run the course again in the following year if it was seen to be beneficial. Mr Satini Racule, one of the course participants from the Tokelau Liaison Office, commented that the course gave insight for operating a shipping business effectively.
Mr Harrison indicated that there were three types of shipowners: provincial council owners (generally management was poor); small Fijian-owned companies (well managed); and small Indian businesses (reasonably good management).
Mr John Fallon, Habour Master at Cook Islands Port Authority, mentioned that FSCL did not appear to be getting rid of substandard ships due to its low freight rates and inadequate subsidy structure. Mr Harrison added that another noteworthy point was that there was not enough money in the routes to invest in capital.
Mr Smith highlighted that in previous 15 studies of substandard shipping that were done in the last 30 years, there were recommendations that shipping businesses would replace obsolete vessels if the government instructed banks to lend money to shipowners. The bank interest rates were eight percent - the shipowner and donors could divide the interest 50:50. In this context, it was also emphasised that shipowners would not buy a ship if routes were not secured by government.
Mr Harrison indicated that currently in the FSCL a contract with the shipowner was the only form of security to bank. However, the issue was that there was nothing to say that the routes were exclusive to the contracted shipowner. In the aviation industry, airplanes were subsidised by exclusive routes. A similar strategy could also assist the domestic shipping industry.
Mr William Johnson, Ministry of Marine and Ports in Tonga, indicated that recently the Tongan government ship, Oloveaha, became privatised and was operating on an exclusive run in competition with one other ship, Pulupaki. The government was subsidising fuel costs. However, Oloveaha was substandard, and the government intended to replace it with a new ship with assistance of Japanese Aid.
6 Mr Fallon inquired if FSCL had considered having its own ships, perhaps through aid donors. Mr Harrison indicated that previously a Minister of Transport had been keen for FSCL to have its own ships, but Mr Harrison had disagreed for various reasons. It was highlighted that an important consideration for getting any ship was to get the right kind of ship suited to its purpose. Ships that were ex-Europe and ex-Asia were not suited to the tropics. Custom-built ships were desirable, particularly one that could act as ro-ro ships. Tourists did not travel on the current ships because of their poor standard - a custom-built ship could take that into account. A suggestion was for the government to build ships, and contract it out to be run by independent operators.
7.0 CORPORATISATION OF GOVERNMENT SHIPPING SERVICES
Mr Papalii Willie Nansen, Managing Director of Samoa Shipping Corporation Limited (SSC), presented on corporatisation of government shipping services in Samoa (presentation attached as Annex 8).
Corporatisation of government services was beneficial for increased efficiency and commercial freedom that was not conducive to politics. A corporatised business operated within accounting functions in a totally open environment. The main role of government was distinctly as the owner. Some of the advantages for governments included an ability to make relationships with other operators for balanced services and trade as well as operate freely with financiers in pricing of services to cover the true cost of services delivered. Corporatisation of government services included management flexibility in taking into account the value of customers, decision making, and planning that is free of political mood changes.
SSC’s main activity is to operate a passenger and vehicular ferry service in Samoa and neighbouring islands of the Pacific. SSC was issued its documents of compliance to the ISM Code in 2004. The company was able to pay one million dividends to government in 2005 and 2006. The corporate objectives include profitability, market share, customer loyalty, prioritisation of safety, compliance and employee commitment.
SSC operates four vessels which include two passenger ferries and two landing crafts. The domestic ferry service operates between Samoa and American Samoa. Other types of services include charter, commercial engineering services, mail courier, cargo service, and customs brokering. A day cruise operations was to be launched in the near future.
In terms of the impact of corporatisation on substandard shipping, it was experienced that the owners had a will to comply, and insurers and financial institutions supported efficient and compliant organisations which had a bottom line of achieving quality ships. Quality shipping was advantageous because it attracted customers. Additional perks offered to passengers on SSC passenger ships include wide screen plasma television onboard. Guarantee of service delivery improved income and cash flow as well.
Discussion
Captain Hogan inquired as to whether the insurance costs for SSC had decreased following corporatisation. It was revealed that marine insurance costs had indeed decreased and this was because underwriters, by engaging their own surveyors to survey the vessel, found the vessels seaworthy.
7 Captain Hogan also inquired about the software used to maintain accurate statistics, and the database used. SSC used Business Partner for accounting functions. Other software had been explored but SSC was yet to find suitable advanced software that would be able to accommodate the need for SSC. SSC accounted costs and determine profit for individual vessels, and compared profitability against routes serviced: there were issues in determining this using MYOB.
Mr Harrison inquired about the timeline for privatisation. It was revealed that it would take another 10 years for SSC to become fully private.
Mr Tominiko highlighted that in the 1960-70s shipping was in fact a private sector, but then it went under the government arm. The issue with the government as the shipowner was that it looked at shipping as an obligation to the state. This made it difficult to go back to privatisation.
Captain Hogan requested for an elaboration on the additional activities (such as mail) that SSC carried out apart from core activities. These activities linked to shipping services. Government has a machine shop in Samoa that makes sheet metal and steel metalworks, and which is the only such operation in Samoa. This was a potential business area for SSC for carrying materials. SSC had been set up specifically for commercial and general public transport needs. There were no apparent arrangements in SSC to carry mail.
Mr Tufuga referred to the composition of the board of directors and any political affiliation. It was suggested that there be relevant training through the corporatisation process to ensure that the directors are towing the line of the corporation rather than their own institute. Most directors have undergone training for governance.
8.0 SAFETY MANAGEMENT SYSTEMS
Capt Hogan presented (attached as Annex 9) an outline of the Safety Management System (SMS) which addresses the responsibilities of those who manage and operate ships, and provides a standard for the safe management and operation of ships and for pollution prevention. The application of an SMS should support and encourage the development of a safety culture in shipping and is highly dependent on commitment, values and beliefs.
The ISM Code establishes safety management objectives. It requires a SSM to be established by the company. The company is the shipowner or any person who has assumed responsibility for operating the ship. The company is required to establish and implement a policy for achieving safety management objectives. This includes providing the necessary resources and shore-based support. ISM/SMS standard operating procedures (SOPs) all formed part of the SMS Regulations.
In New Zealand, ISM was in place for SOLAS ships, SSM for domestic ships, and SOPs for boats less than 10 meters.
Administrations should ensure effective enforcement of the ISM Code, including the verification that shipowners’ SMS complied with the requirements as stipulated in the ISM Code and also the verification of compliance with mandatory rules and regulations. Administrations should refer to IMO’s “Guidelines on implementation of the ISM Code by administrations”.
8 The ISM Code required every company to be issued with a Document of Compliance (DOC) to show that it was compliant (company specific). The DOC was issued for a period of five years subject to an annual verification audit, and it was to be carried onboard the ship. The ISM Code also required every ship to be issued with a Safety Management Certificate (SMC) which verifies that the company and its shipboard management operate in accordance with the approved SMS. The DOC and SMC are issued to state ships by the administration or an administration-recognised organisation.
A company must develop, implement and maintain SMS. There must be documentation onboard the ship which outlines procedures and policies. The company must show the administration that the policies and procedures are being implemented in a practical way in order to gain a DOC and SMC. Many shipping companies already had SMS in place. The implementation of the SMS legislation ensured that all companies have SMS in place.
SMS ensures that a company has safety and environmental pollution risks under control. A proper SMS should ensure that: international standards are complied with; assist in preventing accidents occurring; ensure procedures are in place for dealing with shipboard emergencies; ensure adequate communication between ship and shore; ensure that all individuals knew their role and responsibilities, are adequately trained and have the appropriate resources to do their job; and ensure that all activities and operations are planned, controlled and verified.
Benefits of ISM/SMS/SOP compliance included safety of vessels on an every day basis, not just on survey day, less mechanical breakdowns - therefore cost savings, and easier access to insurance.
IMO’s MSC Circ. 890 Interim Guidelines for Port State Control Related to the ISM Code advises that “PSC Officers should not normally scrutinise the contents of any Non Conformity Note resulting from internal audits” - can be adopted by flag state inspection.
Discussion:
Mr Hazelman inquired about the costs of compliance to shipowners. Apart from paperwork, there were no costs, and overall, costs were reduced. Mr Smith indicated that there was a need to understand that increased documentation in the implementation of SOPs was to increase safety in the process. In some cases, employees did not follow procedures by filling out documentation well after the task was completed, showing a lack of understanding of SMS.
THEME 2 LEGAL CONSIDERATIONS
9.0 SUITABLE DOMESTIC LEGISLATION
Mr Joseph Pyawan, a member of the Pacific International Maritime Lawyers Association (PIMLA), described the status of suitable legislation for minimising substandard shipping as experienced by the National Maritime Safety Authority (NMSA) of PNG (attached as Annex 10). It was noted that the definition of substandard ship varied from region to region and a legal definition for substandard shipping was thus useful.
NMSA was self-funded with three sources of revenue. The authority raises its revenue under three levy regulations: Regulatory Functions Levy; Navigational Aids Levy; and
9 Shipping Levy. The Merchant Shipping Act empowered NMSA to detain sub-standard ships from operating in PNG waters. It was also a criminal offence to take an unseaworthy ship to sea under the Criminal Code Act in PNG. PNG had already detained five ships under this provision. The most relevant regulation relating to the elimination of sub-standard vessels being brought into the country to register under the PNG Ships Registry is the Merchant Shipping (Ship Registration Regulation 2007). This regulation listed all pre-registration safety requirements. The shipowner had to produce all necessary certificates issued by a recognised organisation on behalf of the authority before the ship could be registered (if the ship was above 500GRT). If the ship was below 500GRT, it had to be surveyed by a non-exclusive surveyor. A MoU was being sought to survey fishing boats so that they also met standards. Safety certificate was a requirement for fishing in PNG waters. There were 444 ships in the PNG registry, mostly fishing boats.
Discussion:
Mr Tufuga enquired about the effectiveness of penalties acting as a deterrent, noting that the Criminal Code Act had been included in prosecution. It was revealed that the Criminal Code Act had been used in a single incident and it was meant to send a message to community.
Mr Tufuga added that Australia had experienced much concern about vessels infringing the law around the Great Barrier Reef. In a past incident the Master and shipowner were imprisoned under the Criminal Code Act for grounding a vessel on the reef.
Mr Komisi Koria from the Attorney General’s Office in Samoa, inquired if there were any civil sanctions and whether the criminal penalties were a response to civil sanction ineffectiveness. It was clarified that there were civil sanctions, however, in that particular case, the Master had left the passengers on an unseaworthy ship that began drifting and escaped.
Mr Carl Polloi of Palau asked for further elaboration on the status and likelihood of NMSA having a MoU with the Fisheries Authority. Mr Polloi anticipated that there may be a conflict between the Fisheries Authority, as a revenue-generating agency, and NMSA as an enforcement agency. It was stated that the Fisheries Authority and NMSA were currently in the process of communication and the outcome appeared favourable.
It was also discussed that surveyors were usually paid by shipowners for surveying the ships - this presented a potential conflict of interest. In PNG’s case, the exclusive surveyors were paid from levies.
10.0 PENALTIES: CASE STUDY OF MV OVALAU
Justice Davendra Pathik of High Court Fiji, presented the experience of a marine enquiry on a vessel, Ovalau II, which sank off the mainland in Fiji Islands (attached as Annex 11). Justice Pathik had conducted a number of marine enquiries under the Marine Act 1986 (which has subsequently been reviewed). From the findings, recommendations and penalties imposed, the Act had been amended from time to time.
Some findings of the marine enquiry conducted in 1991, in regard to capsize of the vessel, Polynesia Link, were given. The incident had occurred during the final stages of loading. Stevedores had been working on the midnight shift when a crane on the ship
10 lifted a heavy container causing the ship to heel towards port. The vessel capsized, and moorings could not be freed on time. It was found that there was no stability chart available from the owners. There was no monetary fine imposed on the owners, but recommendations for amending the legislation were made.
Reference was also made to the marine enquiry on the loss of a fishing vessel, Wasawasa I, in 1997 during Cyclone Gavin. The vessel and crew had disappeared during the cyclone. The enquiry found that the most logical explanation for the disappearance was that the vessel went down with crew who drowned in the process. The cabin had been located below deck, and the entrance to the cabin was small with a single doorway that was only a small entrance. Several recommendations and legislative changes were proposed pertaining to ship structure. It was concluded that the Wasawasa I had been an unsafe vessel that had been taken to sea and many human lives had been lost - the penalties were insufficient. There were major changes to penalties made in the Maritime Amendment Act 1999 (for example, penalties were doubled). Currently, the penalty is $4000.
The third enquiry involved Ovalau II, located in the inner western edge of Nananuira edge en route to Wellington. A major leak, 125 mm by 20 mm, was found. The hole was enlarged as crew tried to plug it with tapered wood. Mops were used to block water coming in. Captain was not present at the site. The owners should have had contingency plans in place for such a circumstance. This was not an act of God but substandard shipping. At that time the vessel was listing to port. Four outboard vessels were used to evacuate passengers before the vessel sank.
Recommendations included legislative changes, strict compliance by all concerned in enforcement of maritime laws, cancellation of the Masters, and suspension of other officers and engineers. Orders were made against the FIMSA director. Owners were fined $2000 under the provisions of the Act.
Criminal offence can be used in such cases of serious offences. The list of amendments to the legislations and penalties is included in Annex 11. Arising from various recommendations, steps had been taken over a period to amend the Act. As a result of amendments and penalties, other legislature took forward issues as debates in parliament. It took the Ovalau II incident to bring about substantive changes to legislation. There were a lot of lessons learnt from marine enquiries over the years. The legislature has taken care of penalties and made legislative changes for this to occur.
Discussion
Mr Tufuga elaborated that the appeal was more a reflection on the administrator, and had been made on the principal of natural justice (right to fair hearing). Justice Pathik clarified that the appellant had received a good hearing during the marine enquiry, even if the administrator had perhaps not done so.
Captain Hogan inquired about the two cases, Polynesian Link and Ovalau II, which had been highlighted in Justice Pathik’s presentation. It was inquired that, had there been a loss of life from the accidents, would the case be filed under the Marine Act or the Criminal Act. Justice Pathik indicated that damages for loss of life could be claimed under the Marine Act, and fines were imposed under this Act. However, damages could also be claimed separately.
11 Captain Hogan further inquired who the cargo interests (for cargo that was carried on Ovalau II) could claim against, the insurance company or the vessel owners. Justice Pathik explained that actions would have to be brought into court and decisions would be made there.
Mr Vincent Denamur, from the Department of Maritime Affairs in New Caledonia, highlighted that there appeared to be several administrative and technical aspects led from the enquiry of Ovalau II from which there were are lessons to be learnt. There was interest in learning about the composition of the enquiry panel, especially in terms of technical assistance, and also to know whether the recommendations provided by the enquiry were followed later on.
There were two assessors with Justice Pathik, Mr Delai Vakasimili (former Head of Fiji School of Maritime in Fiji Institute of Technology), and Captain Penitiko Ketacau (Deputy Marine Port Master). There was also a counsel, Mr Kiniviliame Keteca, from the legal office. The recommendations had mostly been taken aboard. The Minister was concerned about the cause of the accident and was definitely going to look into it and make necessary amendments. The fines have since been increased, with a few other legislative amendments. A finding was that there was laxity on part of the port. There was fault all along the line including that of the Board, port, administration and owners. The age of the vessel should have raised concerns much earlier on the questionable fitness or seaworthiness of the vessel, especially with the thin steel hull.
Mr Hazelman added that the port authority had tried to introduce spot fines, but Fiji’s legislation discouraged this.
11.0 ENFORCEMENT OF LEGISLATION
Mr Tufuga highlighted the enforcement of maritime legislation (presentation attached as Annex 12). There was an overview of the international, regional and national maritime governance issues. IMO and ILO were instrumental in the international regulatory framework. IMO conventions were an integral part of maritime law. The implementation of the conventions was the responsibility of States that ratified them. SOLAS, STCW-95, MARPOL and the consolidated labour convention were considered the four pillars of international law in achieving safe, secure shipping, cleaner seas and improved social and well being of seafarers.
The status of recommended conventions was highlighted. Regional initiatives that assisted in the implementation of some of the international conventions were also highlighted. Conventions did not create offences or penalties, as this would be reflected in national legislation. Some generic maritime legislation has been available for countries to adopt them. These were currently being reviewed.
In terms of enforcement it was important to refer to the Constitution, consider standard of care (“absolute or strict liability or negligence”), provide equity in penalties, decide on deterrence or compensation events, investigations and/or prosecutions, and ensure that correct procedures were in place. Legislation was the key to successful enforcement.
Challenges in enforcement for PICTs in the maritime sector included lack of political will, corruption, lack of resources, technicality and complexity, lack of publicity, time factor, competition and parliamentary processes. General laxity approach to enforcement was an issue due to complacency, commercial interests versus regulatory regime, lack of training, inadequacy or obsolete of relevant law, and low penalties.
12 Enforcement of relevant maritime legislation required the involvement of classification societies, surveyors, maritime administrators, Port State Control, shipowners, seafarers, law enforcement agencies, maritime lawyers, shippers, insurers and bankers.
It was recommended that there be ongoing training for relevant stakeholders, ongoing review of maritime legislations, sharing of experiences, dedicated personnel, encouragement of decisive dialogue amongst all players, a better balance between government regulators and self-regulation, need for transparency of information in the shipping industry, need to make people responsible for substandard shipping accountable, and the evaluation as well as rationalisation of the regulatory framework.
Discussion
Ms Martha Henry of the Crown Law Office in Cook Islands, requested for further clarification on the idea of enacting legislations before ratification to any particular convention. Mr Tufuga explained that the ideal process was to draft legislation during the process of ratification so that by the time the convention came into place, the legislation would already be enacted. Conventions could be cumbersome, but the nations had to decide on its relevance and subsequent legislation if instruments had to be ratified.
12.0 A MARINE INSURER’S PERSPECTIVE
The importance of marine insurance in terms of substandard shipping was elaborated by Mr Tufuga (presentation attached as Annex 13). There were competing interests in the area of marine insurance, in terms of owners and regulators. Owners looked at ways to minimise costs (to make money). From a regulatory point of view, owners needed to pay money to comply. International Union of Marine Insurance (IUMI) considered looking at harmonising insurance worldwide. It encouraged best practices and made available information which assisted underwriters in their risk selection. Marine insurance had been in existence over 200 years, especially in the United Kingdom. The operation of marine insurance market was complex. The objective of marine insurance was to indemnify the insured against loss incidents in marine the marine environment.
The marine insurance industry was supportive regarding the removal of substandard shipping through its risk-selection decisions. Due to highly competitive global market some insurers could make marginal decisions based on maintaining market share rather than risk quality. Insurers could easily select against a particular owner due to concerns over their operations, and it was relatively easy for that owner to get insurance from other insurers who had different selection criteria. This was a market that was cost- driven instead of quality driven therefore it was getting more difficult to effectively enforce existing and new regulations.
A contract of marine insurance is a contract whereby the insurer undertakes to indemnify the assured, in manner and to the extent thereby agreed, against marine losses, that is to say, the losses incident to marine adventure. The subject matter insured includes the ship, goods and freight. Governing principles also applied. Insurable interest is a person with interest in a marine adventure where he stands relating to the adventure or insurable risk as a result he may benefit by the safety or due arrival of insurable property, or may be prejudiced by its loss, damage, detention or may incur liability. Indemnity is where the assured has no insurable interest in the subject matter insured, and can recover nothing under the policy if no loss was suffered and the insurer is under no duty to indemnify him. Marine insurance contracts could be based upon utmost good faith, that is, disclosure and representation by assured. A variety of different insurance
13 types were also identified. P&I Insurance was a mutual arrangement for the protection of shipowners – release of vessel detention, guarantee given on security of vessel, self- regulating, structure was simple compared to insurance market. In terms of minimising substandard shipping, P&I Group Clubs assisted through its policies on compliance with Flag State and Classification society requirements and Port State regulations. Quality standards used by shipowners underwent thorough risk assessments by insurers. The insurers also needed to obtain audit report of shipping companies’ SMS to assist assessment of bad and good risks. Subsidies were important to encourage shipowners and other parties to work for high standards. Insurers also maintained consultation and collaborative work with other market players including the Government.
There was a need for best practice and availability of information to assist underwriters in risk selection. The main tool for underwriters to counter high risks was to increase premiums. Owners were selective in terms of their pricing. Insurance costs accounted for approximately 10% to 12% of owners’ operating costs, therefore, an increase in insurance costs often drove owners with substandard ships out of operation.
Overall, the marine insurance industry needed to evaluate their own performance with a sense of collective responsibility and self regulation. The marine insurance industry also needed to conduct proper risk assessments: the higher the risks, the higher the premium and the tougher the application of restrictive conditions. Government policies went hand in hand with commercial policies of insurance industry. Port state control still played an effective role in monitoring.
Discussion
Mr Johnson referred to the recent loss of a seaman from Oloveaha. The legislation clearly defined the process to follow afterwards, and as such the family got all of the seaman’s effects and pay till end of the month. The P&I club, however, came in and enforced the payment of four times the normal monthly amount to the seamen’s family. It was clarified that cargo and crew were both covered in indemnity clauses.
Mr Smith explained that shipowners needed to be careful with what was needed by P&I Clubs to qualify for claims. Seaworthiness, in particular, needed to be verified. Litigation usually resulted from ships that were not seaworthy. If the owner had any idea that the ship was unsafe, even if it held a safety certificate, insurance had the right to withdraw. Insurance would always be paid, but in such cases only a little indemnity was returned to the owner.
Mr Toalepai highlighted some precautionary measures that needed to be taken into consideration when making claims. After an accident occurred, it usually took 2-3 years to come to a settlement with the P&I club. There was a separate P&I cover and a hull cover. In terms of oil pollution cover in US territorial waters, the US Coast Guard required shipowners to be responsible. The insurer would have to place that cover before entering US waters.
Captain Hogan clarified that some of the insurers had been approached to attend the seminar, but they were unable to make time available.
Mr Smith summarised that it was the shipowner’s responsibility to ensure that their ships maintained seaworthiness. While the ship was in operation it represented the owner.
14 THEME 3 ROLE OF PORTS
13.0 DERELICT VESSELS: PORTS’ PERSPECTIVE
A ports’ perspective on the issue of derelict vessels was presented by Mr Herbert Hazelman, former CEO, FPCL (presentation attached as Annex 14). The Fiji government’s ventures to attract foreign investments went through the Fiji Trade and Investment Board (FTIB), without proper consultation of the port authority. Through this oversight, substandard ships were brought in by foreign investors. Other bodies that exercised close control of vessel movement within port limits in Fiji included FIMSA and Fiji Islands Inland Revenue & Customs Authority (FIRCA).
The relevant statutory authority needed to be clearly identified. Proliferation of fishing vessels in the region had exacerbated. The owner of the vessel was responsible for removing the vessel from public waters. If the owner refused, he/she could face criminal charges and possible fines.
Derelict vessels were legislated for under the FPCL Regulations, Customs Law (Wreck and Salvage Act Cap 198) and Marine Act. A vessel left on public property in a wrecked, inoperative, or partially dismantled condition was considered abandoned if it had no identifiable owner or had no intrinsic value to the rightful owner. The owner of the vessel was responsible for removing it from public waters. If the owner could not be identified, then the port authority or the relevant government ministry was authorised to remove any abandoned or derelict vessel if the vessel: • obstructed or threatened to obstruct navigation; • in any way constituted a danger to the environment; • was deemed to be a hazard to public safety; or • was considered to be abandoned property;
This only applied to official ports of entry. The fund for removing derelicts was through a levy imposed on every vessel entering the ports of entry (FJD4 per 100GRT for foreign vessels and FJD4 per year for domestic vessels).
Discussion
Mr Hazelman suggested that RMP establish a database of habitual offenders. This could link in to RMP’s vessel movement database.
It was also suggested that ports be given more clout for immediate removal of derelicts. An in-depth look could be given at establishing a regional fund for environmental purposes.
Capt Hogan highlighted that at the shipping ministers’ meeting in April 2007, the issue of derelict vessels was high on the agenda. Ministers considered the problem of derelict within the territorial sea of some PICTs and endorsed the efforts of SPC and PIMLA to draft legislation for the removal of derelict or abandoned vessels.
Mr Hazelman was requested to elaborate on the processes involved in contacting the vessel owners of derelict vessels when the owner could not be found. He clarified that in such a case, a 30-day advertisement was normally sent out.
15 It was an expensive exercise to remove derelict vessels. Mr Pyawan explained also that if the owners did not have the funds to remove derelict vessels, the port could invest its money to remove the derelict, and claim reimbursement afterwards. The reimbursement could include court and claim expenses incurred in removal.
14.0 DERELICT VESSELS: LEGAL PERSPECTIVE
Mr Tufuga provided a legal perspective on derelict vessel removal (presentation attached as Annex 15). There were varying definitions of derelicts. In the Wreck Removal Convention 2007, “wrecks” included the definition of derelict as well as abandoned vessels. It was emphasised that there was a distinct definition for “derelict” and “abandoned” vessels in terms of legal prosecution. An abandoned ship was an immediate category between a ship and a wreck, because it was still capable of floating (like a ship) but, like a wreck it was abandoned by its crew. Usually a ship was abandoned because it was heavily burdened with legal encumbrances and thus no longer of interest to its owner. Abandonment also resulted from the absence of crew aboard or the non-existence of measures of custody or manoeuvring. Most PICT’s shipping or marine legislation had provisions specifically on wreck and salvage. An assumption was that the shipowner could be accessed easily. The dilemma occurred when the owner had absconded or was otherwise nowhere to be found. PIMLAR also contained provisions on wreck and salvage which were currently under review.
Issues with derelicts include potential threat to the marine environment, public nuisance (an eyesore) under tort law, economic aspects due to derelict vessels taking up berthing spaces with unpaid dues, navigation hazards to users of the sea, attracting potential criminals, legislation sometimes inadequate and obsolete, and costs of equipment and expertise in their subsequent removal. Some case studies from Suva, Fiji and Queensland, Australia were highlighted to increase the understanding of legal issues between derelict and abandoned vessels. In one instance criminal law was used to prosecute a vessel owner due to the threat to the marine environment posed by his vessel. This principle of natural justice was used in the Australia case - removal before it cost more to tax payers. In another case study, Ports of Auckland (respondent) gave notice and later sold a vessel pursuant to Harbours Act. Carter (appellant) sought redress from the Court of Appeal on the basis that its vessel had not been abandoned.
Wreck Removal Convention (WRC) 2007
The current status of international law on wreck removal was elaborated. Prior to the adoption of WRC there was uncertainty with relevant international law applicable to the removal of wrecks beyond national jurisdiction. However, port state control and coastal state powers under LOSC 1982 provided jurisdiction to state parties to exercise control over vessels within its territorial waters. WRC at present provided practical guidelines for dealing with wrecks within the “Convention Area”. Although wrecks within territorial waters are excluded, an “opt in” clause was provided as well (Art. 3(2)). That is, same guidelines could be utilised within territorial waters.
Under Article 1 of the Convention, a ‘wreck” was defined as: (a) a sunken or stranded ship; or (b) any part of a sunken or stranded ship, including any object that is or has been on board such a ship; or (c) any object that is lost at sea from a ship and that is stranded, sunken or adrift at sea; or
16 (d) a ship that is about, or may reasonably be expected, to sink or to strand, where effective measures to assist the ship or any property in danger are not already being taken
Under Article 9 of the Convention, the shipowner had to remove a wreck that constituted a hazard. The shipowner could enter into a contract with the salvor but permits affected State to lay down conditions so that proceeds were consistent with safety and environmental considerations. The affected State could remove the wreck immediately and charge the owner - such actions had to be “proportionate to the hazard”. Such measures by affected State were not to go beyond what was reasonably necessary to remove a wreck and not to unnecessarily interfere with the rights and interests of other states and of any parties concerned.
Article 10 of the Convention described the financial obligations. The shipowner was liable for costs of locating, marking and removing wreck compared to the limited cases under CLC and other liability conventions where the owner was not liable (war hostilities). The shipowner had a right to limit liability in relation to LLMC 1976.
“Opt in" clause under Article 3(2) of the Convention stated that once a state party wished to extend application of WRC to territory it had to notify the Secretary General of IMO. The registered owner could contract a salvor to remove the wreck. The affected state could impose conditions to ensure removal was safe and protected the marine environment. This was a useful mechanism given that most derelict vessels were found within the territorial water, for example, the state did not have to notify the ship registry or other affected states on hazards caused by the wreck.
In terms of recommendations, it was highlighted that there was a need to develop good policy direction for the government to address issues. There was also a need for the review and drafting of adequate and robust legislation. Any such legislation had to take due regard of principles, rights and obligations under WRC 2007, especially, if the state was a party to it. If the abandonment element was not met then, the marine administration had to be asked to use its legislation for the removal of wrecks. Contravention of a condemnation order (an offence to discourage irresponsible vessel owners from moving potentially dangerous vessels) could also be considered. This would enable the power to condemn and destroy or dispose of a vessel. It was also recommended that all relevant authorities put together an MOU to deal with derelict vessel issues. Port Authorities could also seek financial undertaking or insurance cover from owners.
Discussion
In considering that temporary abandonment did not constitute derelict vessels, Ms Henry requested some elaboration on the elements of abandonment as pertaining to one of the case studies. Mr Tufuga explained that the vessel owner in the case study had no financial resources to remove the vessel. They were currently paying fines for previous offences (FJD20/week). There was a concern that this man was not in a position to remove the vessel. He was satisfied that the vessel was of no use. The real concern of the authority was marine environment, and therefore suitable changes in legislation were made. Owner was notified to claim the wreck. Mr Hazelman informed that it was legally possible to stop them into coming into port if the port had some indication that the vessel could become a derelict. In such a case a deposit could be demanded upfront.
Mr Hazelman also clarified about potential complaints pertaining to impounded derelicts by owners (after the due was paid) complaining about missing equipment. To handle this
17 issue the port had contracted a private company. Another consideration was the space of time given to owners to pay up dues - it was not desirable to give too much time to the process as the port had to be first concerned about the environment.
15.0 DERELICT VESSELS: SECURITY PERSPECTIVE
Capt Timoci Tamani, Port Security Officer at RMP, presented an elaboration on derelict vessels from a security perspective (presentation attached as Annex 16). It was highlighted that since the events of 9/11 and the introduction of the International Ship and Port Facility Security (ISPS) Code, port authorities had now put in place measures to mitigate factors that could give rise to terrorist acts and activities. The Port Facility Security Assessment (PFSA) and Port Facility Security Plan (PFSP) had put derelict vessels under scrutiny as they did have the potential to be used for illegal activities and terrorism.
It was raised that the threat was real and should not be lowly prioritised. The security system of vessels and of the harbour was continuously reviewed to ensure that they met the requirements of the ISPS Code. Derelict or abandoned vessels and a lack of monitoring would reduce early detection of any intention for use as platform to launch attacks against visiting cruise liners, tankers, warships and other high profile targets. The operating tactics of maritime terrorists against ships alongside and against vessels underway had their specific features. Derelict vessels could be utilised by locals in various ways throughout the region such as criminal activity hideouts, prostitution and transit points for contraband movement.
Port authorities that impounded derelict vessels were known to experience problems relating to criminals having access to these vessels. Local firms were often contracted to implement designed impounding procedures. The security for each impounded vessel was still provided by the shipowners. This contract with the local firm transferred the responsibility of physically monitoring the seized vessels from the port authority to them. Sometimes derelict vessel owners returned to pay the port authority all their dues and requested the vessels to return in its original state. Problem begins when equipment or machinery parts of the vessel were found missing. The owner then commenced legal action which further delayed the removal of the vessel.
Fuel oil, ship stores, portable machinery and other expensive equipment and parts could be incentive for criminals to attempt entry onboard derelict vessels. Customs, Immigration and Quarantine processes maybe bypassed by people engaged in smuggling. Fishing vessels were tied up to derelict vessels in well sheltered locations within the harbour. Fishing vessels that had reported machinery failure and needing machinery parts had later taken to sea again without any machinery parts delivered from shore agencies. If machinery parts could be transferred between vessels without customs knowledge then other products could be landed by similar means.
Discussion
Capt Hogan requested for an elaboration on some issues regarding illicit activities on derelicts that had been raised by the border management working group.
Capt Tamani indicated that one such issue was crew abandonment on derelict ships in lax port entry points. Where the crew and ship were abandoned, the government needed to bear the costs of deporting the crew and carrying out the processes for getting rid of the derelict, including legal processes.
18 Mr Tufuga commented that from a border management perspective there was an element of inclusion of customs. The United Nations Convention on the Law of the Sea (UNCLOS) actually provided protection in contiguous zone to deter potential derelicts coming to utilise contiguous zone.
Collaboration between customs border management agencies to effectively deal with derelicts and the security issues associated with them was identified as an important feature. The monitoring of vessels entering the port in hours of darkness was something that needed to be stepped up. Some vessels appeared overnight without approval of the port owners.
Mr Racule raised a concern about the potential for derelict vessels being used for human trafficking or for transporting refugees. Capt Tamani expressed that it could indeed be an issue. Ports had security plans for vessels to declare their intention when entering ports - there was a need for prior communication.
Mr Johnson used an example to demonstrate a low risk threat. That is, a wreck 500 metres from an oil tanker bunker was a low risk threat. Capt Tamani added that there was much dependence on the risk assessments conducted by in-country experts to determine the levels of threat.
Mr Chris Innes elaborated on immigration issues and derelict vessels. In the Australian experience, people crowded into substandard ships heading to any location in Australia. When the navy pulled into site, the people resorted to destroying the ship, turning it into a wreck. This had led to changes in immigration rules and marine zonation. Another substandard ship, Pong Su, sailed with heroin and dropped it off on a beach in Australia. The Navy captured them, but there was a long legal battle. Finally, the ship was impounded and taken apart.
Taulapapa Tominiko requested whether there was feedback and other support from the Transnational Crime Unit. Capt Tamani explained that with the unit SPC generally discussed security, and the information gathered from the interaction was delivered to port authorities as awareness-raising.
Mr Smith commented generally on port security in regard to illegal activities. Fiji banned clam export several years ago. Reefs were raided nonetheless, and locals were paid FJD7/kg. Clam was moved from the island port to main ports. At one stage, large amounts of clam were being put on fishing boats as bait and exported. Therefore, clams were being harvested and disappeared from the domestic market.
There was further discussion on the importance of sharing information on suspicious vessels, possibly through the vessel movement database.
Mr Smith encouraged port state personnel to collaborate and be aware of the work of government agencies, so that if any activities were observed to be in breach of government agencies regulations, this could be communicated to relevant authorities.
Capt Inoke Ratotodro from FIMSA inquired how the open registries in PICTs maintained a “genuine link” between the Flag State and the shipowners under UNCLOS. Mr Tufuga provided some insight into the negotiations leading to the requirement of the genuine link. States differed in their standing on this which led to no specific definition of genuine link being outlined in UNCLOS. Capt Ratotodro also inquired if there was any obligation for administrations to seek clearance from Flag State administrations in regard to
19 seafarers recruited from overseas. Mr Tufuga highlighted that this was dependent on the national legislation, and genuine link was usually considered a loose issue.
Captain Hogan inquired about the status of Kiribati, FSM and Palau in terms of seeking to become an open registry. Mr Kabure informed the participants that Kiribati had become an open registry from 2007. Mr Hadley Weiner, Department of Transport and Communication in FSM, clarified that FSM was seeking to encourage registration of vessels that started and ended voyages in FSM, and only those that had a valid office in FSM. Mr Carl Polloi of Palau, could not comment on this at the time.
THEME 4 ROLE OF SHIPOWNER AND SHIPMASTER
16.0 PURCHASE OF VESSELS
Mr Justin Smith from Consort Shipping Limited in Fiji, gave an overview of some key considerations in the purchase of ships in Fiji, including disputes and issues (Presentation attached as Annex 17). From the Fiji’s shipowners’ point of view, the process of acquiring ship was not difficult as the internet was a useful source for finding ships, especially ro-ro vessels from Japan. The issue was locating proper vessels.
In an attempt to assist countries in overcoming some of the problems, United Nations Economic and Social Commission for the Asia and the Pacific (ESCAP) undertook a series of projects from 1990 to 1998 aimed at improving shipping and port services in the South Pacific. A study was undertaken within a project, ‘Development of Policy Options for Replacing Ageing Ships in the Pacific Fleet’. The project aimed to: promote the efficient development of inter-island shipping services in the Pacific sub-region; develop optimum service and route structures to determine the number and types of ships required to replace the existing ageing fleet; and develop regional cooperation in the provision of inter-island shipping services thereby improving the viability of the industry. Inter-island shipping played a vital role for the islands, but there were several issues that complicated shipping, such as isolation and small trade volumes. The studies presented a good summary on the issues. The average age of the ships operating back then was stated as being excessive. Not much had changed since then. There were ships currently arriving which were up to 40 years old. Some longline fishing vessels had been converted to passenger vessels. A series of strategies and policy options were raised from the studies:
9 Establishment of an appropriate route licensing system to ensure those operators provided adequate services to all parts of Fiji. In Fiji, all other sectors of transport were full regulated right down to scheduling and routes. Shipping was an anomaly that had never been addressed. 9 Establishment of an appropriate ship financing scheme to encourage private sector operators to replace obsolete vessels. There was currently no loans mechanism through government or government to government arrangements for shipowners. Lenders were not confident about the domestic shipping industry, the vessels were generally in a substandard condition, and the freight game had a destructive nature. In regard to the latter, ships concentrated on routes that appeared lucrative, causing over-tonnage, wastage, irregularity and undercutting. Without fixed route allocation there was no coastal trade licensing to show as security to the bank. 9 Formulation of a suitable inter-island statistical information system for the further development of inter-island shipping.
20 9 Revise the existing freight rates and subsidies to establish an appropriate tariff structure. No freight rate increases had been approved since 1992 despite escalating costs of operating ships and hiking fuel prices. An issue for Prices and Incomes Board (PIB) in allowing for the increase was inadequate documentation and records to demonstrate trade volumes and losses incurred by the companies (business secrets). 9 A phased withdrawal of Government vessels from commercial services. 9 Continuation of the jetty construction programme. 9 Establishment of an appropriate commercial, institutional arrangement for the Government shipyard and related facilities. 9 Upgrading of ports to cope with changing technology, and increasing demand for services and to improve navigational facilities.
It was highlighted that the influence of government and their provincial alignment was a significant factor in the inadequate development of the shipping sector.
There was also some infrastructural issues including navigation and landing structures. There was also a link between the type of landing structure and the type of vessel needed. With beaches used as landing, the ships had to wait on tides which were time consuming for transfer cargo to the islands. It also caused more problems with cargo lost overboard. There was a need to improve port lighting as well.
In terms of training issues, it was explained that some large vessels needed to have captains with at least Master Class 2 to operate in domestic waters. Fiji taught to Master Class 3 level.
There was no real compliance to the ISM Code within the domestic tonnage. Short courses had been attended by ship personnel but they were generally not fully qualified.
Discussion
Capt Hogan clarified that there were ISM and SSM auditors in the PICTs. PacMA and SPC could offer audits if the shipping companies requested it.
Mr Leo Smith observed from the presentation that change of government and ministers highly influenced the direction in which domestic shipping strategies turned. It was recommended that despite the change of government or the ministers, it should be essential for administrators to implement a single comprehensive policy on domestic shipping.
Mr John Fallon, Cook Islands Port Authority confirmed that route licensing was essential due to small markets in outer islands, and a security for four to five years was recommended.
Mr Tufuga inquired about the composition of PIB and its regulators. There was emphasis on training or raising the awareness of decision makers on the issues. It was also important to note that there very few PICTS had shipping or maritime policies at present.
Mr Justin Smith informed that PIB came under the Ministry of Finance. The ongoing problem was that PIB did not know how the initial freight rates set had been calculated. The shipping company was therefore required to approach PIB and prove the revenue and cost figures. The companies on the other hand were not clear on how PIB worked. Different routes and different freight rates presented complexity that was beyond PIB’s current comprehension. Groups of islands as far apart as 155nm had the same freight rate as islands less than 50 nm apart. There was high competition and companies did not want to show documents to PIB. It was generally difficult to get shipping companies to work together.
21 17.0 MANAGEMENT OF SHIPPING OPERATIONS – INTERNATIONAL LEVEL
Mr Peter Marlow, Technical Superintendent at Neptune Shipping Agency Limited, presented an overview of the management of shipping operations from an international perspective (presentation attached as Annex 18). The aim for shipping companies was to make money at sea, cost effectively. Neptune was established in 1997. The Head Office was based in Sydney, the Technical Department in Auckland, and the other branches were located in Fiji, Vanuatu, New Zealand, Vanuatu and Australia. The majority of the crew employed in the Fiji branch were from Pacific Islands of which 80% was from Fiji. The New Zealand office managed the operational side of ships.
Captaine La Perouse was one of the older tonnages and was due for a major survey. The ship traded to Nauru 10 trips a year, and was in the spot market in Pacific. The vessel discharged to buoys. Discharge in Nauru was very much weather dependent and led up to two weeks for discharge to finish.
Captaine Cook was 25 years old, carried general cargo for bulk trade as well as wheat and grain for Flour Mills of Fiji.
Captaine Wallis was a relatively new tonnage that was five years old and traded between Auckland and Fiji.
Captaine Tasman operated in a partnership agreement. It was a new vessel that visited a number of ports in the Pacific.
The vessels were manned by a mixed crew from New Zealand, United Kingdom, Vanuatu, Fiji and Philippines.
ISM/SSM
Under the ISM system, there was a Designated Person Ashore (DPA) who was the direct contact at the highest level of management. Neptune applied ISM/SSM. It involved written procedures and additional paperwork. With ISM the idea was “everything you say you do, you must do”. The ship personnel and management needed to be able to own the SSM in order to fully understand and follow the requirements. Masters and chief engineers needed to be involved and be supportive of the system.
The system also needed to be audited, internally and externally. ISM system/SSM needed to be approved, and the external auditors needed to sight this to revalidate the system.
The potential for PICTS to provide seafarers was large. Companies were considering doing their own training. As a country became more developed, it seemed that the people did not want to go to sea. Companies were looking for future seafarers from the region. It took longer to find good chief engineer than chief master due to accumulation of experience needed for quality chief engineers. Adequate onboard training was needed to make a seasoned seafarer.
As far as ships went, they would have to become environmentally friendly by using fuel that was low in sulphur content, clean air (smoke), treated sewage water and having
22 exhaust scrubbers among other requirements. This would add to the cost of vessels causing low standard ships to becoming redundant quicker.
The Tokyo MoU uses the following indicators for detaining ships: age of vessel, Flag State and the number of deficiencies. When certain points were reached, the ship would be inspected by a Port State Control inspector. Even a few rogue vessels tagged to a small Flag State could count against all other vessels under that Flag State.
Discussion
Captain Hogan inquired if Neptune Shipping could consider increasing the number of cadets on its ships. Mr Marlow indicated that this could become an issue because the ships already carried a high number of ship personnel, including trainee welders and fitters. In older tonnage additional welder and fitters are taken.
Captain Hogan complimented Neptune Shipping for its keenness in training crew.
There was a request for Neptune Shipping to consider employing Samoan seafarers onboard. Mr Marlow indicated that Neptune were supportive of this and encouraged certified seafarers to submit their applications.
Captain Hogan commented that some of the Neptune Shipping tonnage was aging. Considering that there were an increasing number of new requirements with MARPOL and other conventions, it was inquired whether there was any fleet replacement policy.
Neptune was considering having Captaine Cook for another five years. They were also on the lookout in the market for tonnage.
Mr Fallon inquired about the apparent disparity in maintaining old ships compared to new ships.
Neptune had obtained Captaine Wallis brand new. Captaine Cook was bought during its breakdown maintenance. It was found that with the old ships one could never get out of the maintenance period, as there was bound to be something that needed maintenance. It took two years initially to get it fixed. The operations were under-budget. With old tonnage there was a lot of running maintenance and laid up time. Neptune had to rely on Fiji for maintenance and repairs. Older tonnage was therefore also expensive to keep.
18.0 CREW DEVELOPMENT AND IN-HOUSE TRAINING
Papalii Willie Nansen of Samoa Shipping Corporation, gave an overview of crew development and in-house training (presentation attached as Annex 19). Management skills for all officers needed to be improved as their responsibilities increased over time. The Master was held liable for compliance. Ship security as per the ISPS Code needed to be implemented on-board. The Ship Security Officers (SSOs) were perhaps the only people familiar with the ISPS Code requirement, whereas crew also needed to be aware as such. Dry docking skills and officer knowledge also needed to be improved for safety and efficiency. The ability for crew to carry out internal audits, and respond to audits and inspections appropriately should also be considered in training. It was also important to train the shipmaster in overall counselling of crew and also to assist them with their problems. Engineers needed to train specifically for the type of engine the vessel was
23 running on. The areas for onboard familiarisation training were described. An issue was the shortage in skill for refrigeration repair and maintenance. Company policy for crew development and training for SSS was a terms and conditions of employment which specified each employee’s career path by providing minimum requirements for training.
Discussion
Captain Hogan requested Papalii Nansen to elaborate on how individual training needs of SSS identified in the presentation could be improved, and whether there were any thoughts on specialised maritime training providers or schools providing such training.
Papalii Nansen indicated that SSS had attempted to obtain training through donor agencies but this had not materialised. This issue was therefore brought to the attention of this seminar.
In terms of retaining ship personnel trained in-house, Mr Bomo requested if there were mechanisms in place to achieve this. Papalii Nansen informed the participants that it was important to reward ship personnel for the knowledge and skills that they had and this would serve as an incentive. The Terms and Conditions Employment Policy Manual served this purpose.
19.0 PLANNED MAINTENANCE
Mr Alobi Bomo of RMP, presented on the importance of planned maintenance in substandard shipping (presentation attached as Annex 20). Planned maintenance included routine inspections, adjustments and replacement of parts that showed signs of wear. Planned maintenance was useful in keeping the ship in Class.
In the engine room, planned maintenance minimised down-time maintenance due to breakdowns and ensured that equipment and machinery operated in peak condition and problems were fixed before major and expensive breakdowns occurred suddenly. In the long run planned maintenance helped reduce running costs. Overall, this could address the issue of substandard shipping. Planned maintenance had evolved into condition- based maintenance, which used monitors to monitor the parameters of the machine by oil sample, heat, vibration, exhaust temperature, etc. The importance of oil analysis report was also described.
In the deck department, scheduled maintenance of the ship’s deck could avoid hazardous and unsafe conditions of the ship. It was important to write up schedules to carry out planned maintenance. Maintenance checked on navigational equipment and survival equipment needed to occur. It was the shipowners’ responsibility to ensure there was a system in place to accommodate planned maintenance, and to operate a quality shipping service.
It was highlighted that most of the above-water areas of the ship were maintained at sea as these reduced downtime servicing. The ship needed to be slipped for underwater maintenance and repairs periodically.
Discussion
Papalii Nansen inquired about the availability of special software that could assist shipowners carry out planned maintenance to speed up the process. Mr Bomo revealed
24 that RMP was currently working on a directory of shipyard facilities that could assist in speeding up planned maintenance. He indicated that some of the navy personnel had been trained to use special software.
Mr Marlow indicated that class societies currently recognised planned maintenance as an important part of operation, leading to cost reduction in service charges. Surveyors were sent to audit the ship based in the planned maintenance system of ship operations. It was also suggested that ship operators buy planned maintenance systems in the market.
Mr Johnson confirmed cost savings from planned maintenance in oil bunker operations.
20.0 THE ROLE OF THE SHIPMASTER
Captain Tamani elaborated on the role of the shipmaster in substandard shipping (presentation attached as Annex 21). Responsibilities of shipmasters were highlighted. Some of these were safety, care of cargo, seaworthiness, safe, efficient and economical operation of the vessel, protection of the environment and the implementation of the company’s SMS. A Master was also responsible for onboard training and familiarisation. A Master also needed to provide accurate and timely submission of correspondence, records, reports and documents required by the company or by government agencies in the conduct of the ship’s affairs. The Master had the overriding authority to alter or change any procedure or operation in circumstances where he deemed it necessary to ensure the safety of the vessel. The Master had, in conjunction with the Chief Engineer, the responsibility to ensure effective implementation of the planned maintenance programme.
Discussion
Mr Iteraera Ruria, Department of Justice, Nauru asked for examples of practical cases of negligence by Masters. Capt Tamani referred to improper filling out of medical forms, usually paperwork related. Once the safety committee was effective, the negligence level in operation reduced significantly.
Mr Bomo gave an example of the absence of SSM. A crew member, while tidying ropes during rough seas, fell overboard. In five minutes he was left 200 m behind. There was no immediate call for man overboard, and the procedures for man overboard were not followed although there were lifebuoys on the side of the vessel.
Mr Toalepai inquired about the Master’s responsibility in terms of cargo handling and clearance. Capt Tamani explained that this was in terms of giving the best advice and information to ships agents through the manifest on what to expect in terms of customs. Capt Tamani informed the participants that it was the responsibility of the company (not the shipmaster) to ensure that the crew were fit and healthy.
Reflecting on the Ovalau enquiry, Capt Ratotodro mentioned the negligence of the master in that he was missing from judgement during the time the water was being pumped from the engine room into the deck (rather than outside). The vessel overturned due to the spill effect from this activity.
Capt Tamani emphasised the importance of drills and exercises in strengthening system in emergencies, in order to identify and mitigate deficiencies identified.
25 THEME 5 TRAINING NEEDS
21.0 MARITIME TRAINING: SPC PERSPECTIVE
Captain Apenisa Vata of RMP presented an overview of maritime training in the Pacific Islands region, from an SPC perspective (presentation attached as Annex 22). There were 13 maritime training institutions (MTI) in the PICTs: 9 PNG Maritime College 9 FIT’s School of Maritime and Applied Fisheries 9 Solomon Islands Maritime College 9 Vanuatu Maritime College 9 Samoa Maritime College 9 Tonga Maritime Polytechnical Institute 9 Maritime Training College, Kiribati 9 Tuvalu Maritime Training Institute 9 Fisheries and Navigation Training College, RMI 9 Fisheries and Maritime Institute, Yap, FSM 9 Cook Islands Maritime Training School 9 French Territories - 2 Training Colleges
The Vanuatu Maritime College (VMC), located in Santos, Vanuatu, offered training up to Class 4 deck and engine certificates. The school’s main target was producing ratings for cruise liners. There were sufficient facilities for mixed trainees at VMC. The Samoa Maritime College which was part of the National University of Samoa (NUS) located in Apia, Samoa, offered Class 5 deck and engineers. The Tonga Maritime Polytechnic Institute located in Nuku’alofa, Tonga, provided training up to Class 2 deck and engine certificates. This college had just resumed accommodating students at the college. The Maritime Training Centre (MTC) located in Betio, Kiribati, was well established for training for deck and engine certificates and catering. The Tuvalu Maritime Training Institute in Funafuti accommodated trainees and instructors. The Fisheries and Navigation Training College located in Majuro trained deck and engine rating, as well as fisheries ratings. The FSM Fisheries and Maritime Training Centre offered Class 5 deck and engine certificates.
The STCW-95 Convention guided all maritime training in the region. Except for Cook Islands, all the teaching facilities in the region had qualified in terms of acceding to this convention. As far as maintaining standards went, PacMA played a major part in maintaining standards through the MEL subcommittee. SPC introduced training modules when STCW-95 was introduced. They were designed as minimum standards for certificates. Currently the modules were under review. Under stcw-95 compliance, countries tried get into the IIMO ‘White List’. By the closing date nearly all the training institutions had entered the ‘White List’. There was a requirement to carry out five-yearly independent evaluations. The SPC courses relating to substandard shipping were listed. Shipowners were responsible for onboard training such as cadet officer training, refresher/upgrading courses and greater involvement in the training of ship officers.
22.0 SUBSTANDARD CREW
Captain Tevita Robanakadavu, Head of the Fiji School of Maritime and Fisheries Studies, presented an overview of substandard crew in shipping (presentation attached as Annex 23). A maritime training school needed to have a vision, mission, values, goals, operating
26 principles to improve the training and qualification of seafarers. The vision for Fiji School of Maritime and Fisheries Studies was to be a Centre of Excellence in maritime education in the Pacific islands region providing first Deck and Engine Officers, best ship builders and first class Fisheries Officers.
The mission of the School of Maritime Studies was to provide a wide range of quality, cost effective, higher education and training programmes which were consistent with the policies of the Government of Fiji and focused on the individual, national and international needs of the industry, placing emphasis on excellence and equity. The main educational goal of the School of Maritime and Fisheries Studies was to provide learning opportunities of quality and relevance.
Simulators had become a vital part of teaching tools in maritime studies. This was because simulation exercises excluded the risk and cost of working with real live equipment but retained the natural feel and procedural atmosphere generated in a real shipboard situation.
To be successful in the shipping career, apart from the relevant training it was emphasised that students or individual seafarers needed to be able to have adequate knowledge and skills and the right attitude. When enrolling at the school, students needed to come expecting only the skills and the knowledge from the training provider. The students themselves had to have the attitude that was expected from a trainee so that when they were combined together the outcome was successful.
Seafarers needed to be encouraged to come back the maritime school to attend all required short courses every five years so that they could learn new maritime technology to upgrade their knowledge and skills in seafaring.
Discussion
Captain Hogan raised that in the past the school used to have an industry advisory board meeting that considered whether the school met required standards. Some elaboration was sought regarding the existence of such an advisory board. Captain Robanakadavu informed that there was a Fiji Marine Board being used as an advisory committee.
There was further elaboration required on the students’ feedback mechanisms in the school. It was explained that at the end of every semester there were evaluation forms that students filled in which was used to appraise the system. This provided the opportunity to strengthen the delivery of the course, and uplift standards.
One of the issues for the region was known to be the provision of non-seafarer training such as refrigeration, auditing and cargo operations. It was inquired how these would fit in with the current programmes offered by the school. It was explained that the school had stated offering such courses already. For example, refrigeration course was already offered. Offered also was seamanship in addition to deck and engine certification.
The school also offered the riggers course and frontline integrated ratings (which is a combined course of deck, engine, including tanker familiarisation and other relevant subjects).
Mr Denamur inquired about representation of shipowners in the advisory board. It was informed that shipowners supported the programmes offered by the school.
There were 200 students enrolled in deck, engine and fisheries courses. The enrolment for short courses for the first semester in 2007 was 700.
27 Captain Hogan indicated that availability of ships for sea-time required in the period of seafarer certification was significant, and requested for some elaboration on how the school addressed this issue. It was revealed that 60% of the trainees were known to have joined local ships. This included 45 deck apprentices and 38 engineering stage 1 students. The placement of cadets on regional ships was something that could be considered.
Mr Polloi inquired if all students who completed their studies managed to find jobs. All upgrading students returned to their old jobs as they were usually sent by their employers.
Mr Pyawan asked if students from other PICTs also enrolled at the school. It was revealed that students from Vanuatu, Tuvalu and Kiribati were enrolled at FIT.
Mr Ruria inquired about female participation. There were six females in deck apprentice programme.
On the issue of students achieving the required sea-time on domestic ships, it was explained that there were 45 deck apprentices, and 38 engineering stage 1 enrolled, out of which 60% had got their sea-time with local shipping companies.
Capt Hogan suggested that there appeared to be 15 domestic ships in the region, and if each took one cadet the problem of trainee seafarers not getting sea-time would not be too big an issue.
Capt Hogan asked if, as a training provider was it the schools’ responsibility, or companies’, or students’ themselves to find sea-time after the training. Capt Robanakadavu explained that as part of their own responsibility, the school provided a letter for student to take to the shipping companies to obtain sea-time.
23.0 ROUNDTABLE DISCUSSION:
Captain Hogan delved into the benefits of having regional maritime associations in the region and opened the floor to the idea of a Regional Shipowners’ Association in the Pacific Islands region.
Taulapapa Maselino suggested that all countries were members of PacMA already. Shipowners could make a decision in the favour of a Regional Shipowners’ Association.
Tufuga Fagaloa found the presentation useful in terms of making the forum think of the benefits of having a regional forum for shipowners. It was in the hands of the region to make any such forum a success. Other regional maritime associations (such as PacMA, PIMLA) benefited immensely from the pool of experts.
Mr Hazelman emphasised that the participants, as well as the countries, needed to pull resources together, and make a voice loud enough for the governments to hear. An association was the ideal way to do it.
24.0 BREAKOUT GROUP SESSIONS
Coordinator: Captain John Hogan
Grouping: Three thematic groups were formed: (1) Maritime Administrations; (2) Maritime Lawyers; and (3) Shipowners. There were two groups for maritime
28 administrations, and one group each for maritime lawyers and shipowners, respectively.
Activity: Groups were required to break out for 90 minutes per session (two sessions) to discuss issues specific to the group and then report back on findings to all the groups. The topics for deliberation were given.
Session 1 of 2 : (presentations attached as Annex 24)
Maritime Administrations
1. Monitoring of Safety Management Systems (SMS): A Safety Management System (SMS) provides a standard for the safe management and operation of ships and for pollution prevention. It also addressees the responsibilities of the people who manage and operate ships. Identify issues that maritime administrations in the region face in the monitoring of SMS.
2. Interpretation of legislation: Maritime administrations may experience problems in interpreting certain definitions/terms in the domestic shipping legislation such as limitation of vessel size and area of operation for the vessel. Identify the definitions/areas in the domestic shipping legislation that may be confusing for maritime administrations and suggest ways to address it.
3. Regional Survey Standards: A completed version of “Instructions to Surveyors” was endorsed by the PacMA plenary at their 2007 annual general meeting. The main purpose of the regional survey standards was to improve the efficiency and effectiveness of Flag State inspections and to set regional voluntary guidelines for the survey of non-convention vessels. What challenges do maritime administrations in the region face in the implementation of the regional survey standards?
Group 1 Members:
1. Vincent Denamur (New Caledonia) 2. Arnaud Conan (New Caledonia) 3. Deve Talagi (Niue) 4. Joseph Kabui (PNG) 5. John Fallon (Cook Is) 6. James Dunn (Fiji) 7. Makalio Ioane (Tokelau) 8. Christopher Stephen (Nauru) 9. Sokiata Suitupu (Tuvalu) 10. Avnita Goundar (SPC) 11. Apenisa Vata (SPC)
Mr Jessie Dunn of FIMSA presented the group summary.
29 Monitoring SMS:
Status of SMS onboard ships: PNG : 5 ships New Caledonia : 3 ships Fiji: : 5 ships (tourist private) Tuvalu : 2 ships Tokelau : no ships Niue : no ships Nauru : no ships
Issues faced by MAs: 9 Shipowners not being aware of the importance of having SMS on board their ships 9 Evidence of a mechanical approach to SMS implementation – just a routine for some 9 Monitoring of SMS
Recommendations: 9 Encourage members to define the scope of SMS implementation taking into account the risks involved – prioritise implementation on board tankers, passenger ro-ro vessels, etc) 9 The DPA should work full-time on SMS/ISM related work 9 Training on SMS to be provided to cadets as well as ongoing officers by maritime training schools – with strong emphasis on quality approach
Interpretation of legislation
There were two key issues in the interpretation of legislation: 9 Need for legislation to be more user-friendly 9 Translating international convention requirements into national law
Recommendation: 9 Countries need to enact national legislation first before ratifying international conventions
Regional Survey Standards
9 Member countries need time to go through the standards before making any concrete comments
Discussion
Capt Hogan asked for an elaboration on SMS-related training. It was suggested that SMS should be engrained into cadets through MTI curriculum.
Group 2 Members:
1. Inoke Ratotodro (Fiji) – Team Captain 2. William Johnson (Tonga) 3. Weiner Hadley ((FSM) 4. Moote Kabure (Kiribati) 5. Maselino Tominiko (Samoa) 6. Danny Viviani (PNG) 7. Kemp Detenamo (Nauru) 8. Kanae Sakua (Tuvalu) 9. Joytishna Jit (SPC) 10. Megan Streeter (SPC)
30 Mr Kemp Detenamo from Nauru presented Group 2 discussions.
Monitoring of SMS:
Status of SMS on board ships: 9 Samoa o Class society currently monitors SMS 9 Tonga o Class society, except for the domestic ships o For domestic ships the administration monitors this 9 Tuvalu o No state surveyor, Class society Lloyd’s o For domestic ships the administration monitors this (not regulated) 9 Fiji o No Fiji flagged ships are on international voyage o Shipping companies have their own SMS systems; administration monitors this (not regulated) 9 FSM o Class societies for the three government ships that have SMS for dry docking and slipping
Strengths: Samoa conducts intermediate monitoring of ISM/SMS, and has an agreement with Class society for monitoring performance. There is a two yearly verification process. ISM has been regulated and implemented since 1999. The sailing checklist is signed by Safety Officers to give clearance to the vessels. Tonga has a similar system in place. There were monthly Port State Control inspections. The costs were covered by the companies.
Recommendations: 9 Regulation needs to be enacted for SMS 9 Generic legislation needed 9 Training on ISM needed o Maritime administrations o Shipowners o Ship operators, including charters 9 Need for further assistance (training/workshop/seminar) from RMP 9 Charter agreements to reflect SMS
Interpretation of legislation
Marine Pollution 9 Samoa o Marine Pollution Prevention legislation was adequate. 9 FSM o Jurisdictional: States control their 12 nautical mile zone 9 Tonga o Oil coming from land perceived as pollution from ships 9 Tuvalu o Legislation covers port area: current legislation is sufficient There was a need for marine legislation to be customised to tie in directly with MARPOL by limiting to ship-source pollution.
STCW-95 Regulations STCW-95 legislation introduced new terms and definitions that did not complement existing legislations. There was a need to amend existing legislation to standardise terminology. It was proposed that it would be useful for the region to see the amended
31 legislation used in Fiji as that will be the most recent update (after revision of SPC modules by PacMA)
There was a need for new generic legislation (or revision) for: 9 Non-convention vessels 9 Loadline 9 Tonnage 9 Wreck Removal
Certification for fishing vessels: 9 Administration to endorse safety on fishing vessel 9 Safety certification for fishing vessel personnel 9 STCW-F o As best practice, Tonga ensures Class 6 for fishing boats and Basic Safety training (not legislated)
Global Maritime Distress and Safety System (GMDSS) 9 Administrations need to identify issues in implementation by Telecom (check system, certificate)
Long range identification and tracking system (LRIT) 9 Need to amend legislation to reflect smaller ships
Regional Survey Standards
Challenges in implementation: 9 Samoa o No issues – similar to prior practice o Regulations are in place, and there was a harmonised system to follow. This would be the way forward in improving surveys. 9 FSM o Currently in process of harmonising with existing system 9 Fiji o Needs to review its standards, as the regional survey standard is most updated (to suit Fiji’s context) o Eventually tie up with Non-Convention legislation o Surveyors in the subcommittee to continue to update the standards, particularly to reflect any new requirements o Continue training of surveyors by RMP
Additional issues for consideration: 9 Substandard shipping seminar o RMP to hold seminar every two years to monitor status of substandard shipping, assess problems & difficulties, and raise awareness of emerging issues 9 Maritime administration training is needed o Also to consider succession planning 9 Audit training for ISM, ISPS, STCW and Business excellence 9 Access to vessel movement database 9 Check system for substandard ships
Discussion
Capt Hogan elaborated that there was generic legislation available for SMS. It was also useful to note that the Regional Survey Standards tied into non-convention vessels.
32 It was generally accepted that a two yearly seminar on substandard shipping would good, especially for monitoring substandard shipping.
Mr Toalepai inquired about whose responsibility it was to initiate legislative changes, the port authority or transport division. With the port limits it was the port authority’s responsibility. In the sea it was the government’s responsibility. An additional consideration was that for land-based operations, the environment department usually came in.
Capt Hogan summarised from the presentation that RMP was being requested to provide more auditing training, including business excellence training. Taulapapa Tominiko added that it was important to train the administrators on the business excellence framework and related auditing. It was suggested that a week each be allocated for ISM training, and training on IMO mandatory instruments. Then, administrators would need to put this in place in their own countries. The administration could request RMP to audit them. It was important that the administrations have a business excellence framework. There was general agreement on the assistance of RMP in this regard.
Maritime Lawyers
1. Legislation on domestic shipping: The adequacy of legislation governing domestic shipping in the Pacific island countries needs to be assessed. In addition, issues and gaps in enforcement of existing legislation need to be identified and addressed. As legal experts in the region, your input is valued in addressing the following issues:
(i) How adequate is the current legislation governing domestic shipping in the Pacific island countries?
(ii) How can the inadequacies in legislation be addressed appropriately?
(iii) What are some of the issues that impact effective enforcement of domestic legislation in the region? Suggests ways to address the issues.
Group 3 Members:
1. Martha Henry (Cook Is) 2. Ruria Iteraera (Nauru) 3. Jay Eveni (Niue) 4. Carl Polloi (Palau) 5. Joseph Pyawan (PNG) 6. Komisi Koria (Samoa) 7. Tufuga Fagaloa Tufuga (SPC)
Mr Komisi led the presentation of discussions for the group. The key points raised are listed below:
9 There was a general lack of clarity in legislation and regulation 9 The legislation needed to be user friendly 9 There was an issue of outdated legislation
33 The main reasons for inadequacy included a lack of political involvement or will, impractical provisions and lack of consultations with relevant stakeholders. The issues could be resolved by setting a clear maritime or shipping policy. The policy, among other things, needs to:
9 Encourage privatisation 9 Set clear guidelines in legislation/regulations 9 Increase collaboration between government and relevant stakeholders.
Some of the issues for enforcement were listed:
9 Lack of resources 9 Laxity in attitude 9 Lack of government support or backing 9 Conflict of interest 9 Insufficient penalties for non-compliances
Recommendations:
9 Training of the right personnel, acknowledgement and motivation given to maritime sector 9 Increase awareness of issues or problems 9 Update legislation 9 Employ the right people 9 Set realistic goals or benchmarks to monitor progress, and early involvement of relevant bodies or personnel.
Discussion
Capt Hogan highlighted that at the Ministers’ of Transport Meeting, Apia in 2007, there was definite support and backing for the maritime sector. This needed to infiltrate downwards in the chain of responsibility.
Capt Ratotodro added further insight by explaining that ineffective implementation was often due to non-conformity resulting in long legal proceedings before a prosecution. It was emphasised that spot fines were useful in shifting the burden to the accused.
Mr Dunn drew attention to the importance of effective and timely communication between agencies, such as environment and port agencies, particularly regarding the enactment of new legislation which are of interest to both. It was suggested that perhaps employing a lawyer to deal with this would be efficient. Mr Pyawan highlighted that the Attorney General was usually sought for legal advice.
Mr Tufuga illustrated that in an ideal world the Attorney General’s Office would send out a set of procedures for changing the law, involving consultation with other authorities or agencies sharing interest in the law.
Capt Ratotodro raised a potential conflict of interest when surveyors stand for the shipowners’ interests. It was suggested that through RMP’s training, it should be instilled in surveyors that they needed to stand on the part of law. Surveyors were the technical people for upholding the law.
Capt Hogan agreed that the responsibility of ship surveyors was enormous, and where such a conflict of interest exists, the system failed.
34 Shipowners
1. Safety Management Systems: A Safety Management System (SMS) provides a standard for the safe management and operation of ships and for pollution prevention. It also addresses the responsibilities of the people who manage and operate ships.
(i) What are the challenges faced by shipowners in the implementation and operation of SMS onboard their ships?
(ii) What are your views on the introduction of an ISM audit system in the region based on regional auditing standards?
Group 4 Members: 1. Rophino Yarowe (FSM) 2. Itibwinnag Aiaimoa (Kiribati) 3. Peter Tarumuri (PNG) 4. Raymond Taefu (Samoa) 5. Sala Toalepai (Samoa) 6. Satini Racule (Tokelau) 7. Leo Smith (Fiji) 8. Peter Marlow (Neptune Shipping) 9. Alobi Bomo (SPC) 10. Timoci Tamani (SPC)
Capt Tamani gave the presentation on the key points from the discussion of shipowners on the implementation of ISM/SMS. The implementation of ISM/SMS was initially resisted by the industry due to general lack of understanding. Now that there was a better understanding amongst managers, there were some areas of improvement that could be identified. For example, legislation needed to complement ISM/SMS.
Overall, ISM/SMS was believed to assist in increasing efficiency, reducing costs, and better facilitate the monitoring of safety. The group found the safety system to be particularly useful in minimising alcohol problems. This is because SMS had a disciplinary system that the crew understood. Managers needed to take the responsibility of giving maximum support to SMS.
Challenges in the implementation and operation of SMS:
9 Low level of understanding of benefits (crew) 9 Too much paper work 9 Who is going to monitor or police the system once it is implemented?
Introduction of an ISM Auditing System in the Region based on the Regional Auditing standards:
9 Better protection of PIC seafarers 9 More professional operation of local shipping (increase efficiency)
35 9 The audit scope and criteria needs to be specified
Discussion
Capt Hogan supported that there was a need for a commitment from shipowners and administrations to introduce SMS. The benefits of having a SMS was clearly evidenced and understood by the industry.
Taulapapa Tominiko emphasised wider adoption of ISM auditing by companies, ships and administrations. Capt Ratotodro added that even countries, not obliged to have ISM in place, could benefit using it as good marketing strategy to ensure safe carriage of cargo and passengers. There was a financial burden in the initial stages, which paid off in the long run.
General discussions and outcomes from Session 1:
9 There was a strong commitment for SMS 9 SMS training including auditing, information packages, lectures 9 There was a commitment to hold another substandard shipping seminar in two years time 9 There was a commitment for maritime administration to implement business excellence principles after a few training courses 9 RMP committed to look at generic legislation for SMS, generic procedures for changes in law, and updating of other legislation. 9 It was found that the regional survey standards tie directly to generic non- convention vessels. 9 ISM/SMS implementation in companies is not difficult because procedures are mostly already present. There was a saving of 15% of normal operating costs by having such systems.
Session 2 of 2 (presentations attached as Annex 25):
Maritime Administration
“Marine insurers have expressed concern that shortages of skilled seafarers may lie behind a marked increase in serious accidents. A dozen significant accidents in the first four months of this year have almost doubled the estimated $350m loss total for the whole year. A shift from machinery damage claims to those arising from collisions and groundings reflects growing skills shortages, say some. The fear is that this will worsen due to the failure to match the newbuilding boom with a concurrent investment in training”1.
(i) Assess the adequacy of the current training standards in meeting seafarer skill shortage demands. (ii) Suggest how the standard of cadet training in the region can be improved and the skill shortage issue be addressed.
36 Group 1:
The adequacy of the current training standards in meeting seafarer skill shortage demands: 9 Not enough practical training o Training is difficult to access o High cost of training 9 Reluctance on the part of shipowners to release employees for training 9 Lack of appropriately skilled trainers in MTIs
How can the standard of training be improved?
9 Strengthening practical training 9 Increase in simulator training 9 Assessment should be specific/parallel to the nature of vessel employed on 9 Strengthen teaching skills of trainers in MTIs 9 Increased regularity of audits on MTIs
Discussion
Mr Denamur explained that over the last six or seven years, there had been six training courses for trainers, but the problem was that when the individuals became highly qualified, they moved to other places.
Group 2:
Seafarer Training
Training standards were adequate. However, there was a need to address root causes for the perceived skill shortage. About ten years ago there was a move to put maritime training schools under education department. However, MTIs were best placed under the responsibility of maritime administrations. The maritime administrations must have a monitoring role in training because the training should meet administration’s target of regional and international standards.
Recommendations:
9 MTIs to move back under maritime administrations (to raise this with Pacific Island Forum Leaders) 9 Continued lecturer mentoring/ secondments in the region 9 To revive seafaring as an enticing career option 9 Include sea safety awareness in schools and rural qualities; PacWIMA to expand on sea safety awareness for schools
Skill Shortage: Challenges
9 There is a need to better coordinate and advertise available skills from the region. 9 Seafarers need financial assistance to upgrade course and encourage training o Soft loans o Scholarships o Subsidised learning o Cadetship 9 International Labour Organization’s (ILO) membership and International Transport Workers’ Federation’s (ITF) approval provides high access to skills in the global market o Greater membership by PICTs
37 o RMP to look into ITF matters, consider guilds and association for seafarers o For countries that are already ITF-accredited (Tuvalu) to lead the region on this and share experiences 9 Centralised two-way database needed for seafarer job seekers 9 Neptune is updated by PICTs themselves; success is dependent on PICTs supplying timely data to RMP o Explore linkages to ILO seafarer ID database o Seafarer qualification levels updated on this database o Cadet Training 9 Sea-time on international voyage o Regional agreement - Vessels coming into the region must carry a certain number of PICT cadets. For example, Samoa declared international ships to be used as training ships o Regional ships used for cadets; RMP to coordinate this o 30-50 cadets estimated per country 9 Financial assistance required for cadet training o For example, tax incentives or donors 9 Cadet Training o Social responsibility modules for cadets o Selection criteria for cadets, so that cadetship is renewed upon satisfactory performance upon merit.
Discussion
Capt Hogan informed that RMP was already in discussion with the New Zealand ITF representative. It may be possible to plan a one-day seminar with ITF personnel to discuss issues back to back with annual retreat.
There was a need to plan the criteria for awarding prizes such as “surveyor of the year” or “lecturer of the year”, and arrange company sponsorship for further training. All this could be administered by PacMA. Good deck and engine officers could also be given recognition with awards.
Mr Bomo raised that multicultural training for foreign ships could also be a consideration.
Maritime Lawyers 1. What is the link between substandard shipping and the following: (i) Open registry: (ii) Derelict vessels (iii) Wreck removal (iv) Marine insurance
2. Is the current legislation in the Pacific island countries addressing the above issues adequately? 3. What are the gaps in legislation concerning the issues mentioned in (1) above and how can it be appropriately addressed?
Group 3 :
Linkage to substandard shipping
38 Link between substandard shipping and Open Registry:
9 Possible haven for Illegal, Unreported & Unregulated vessels (IUU);
Cook Islands, Tuvalu, Kiribati, Vanuatu, Marshall Islands and Solomon Islands had legislation in place governing open registry. There appeared to be adequate legislation by experienced ‘old timers’ like Vanuatu and Marshall Islands because there had been no major maritime incidents, but there was some concern for the newer open registries. The lawyers did not know the mechanics of these open registries.
Link between substandard shipping and derelict vessels:
9 A substandard ship increases the chances of it becoming derelict
The issue is inadequate and obsolete legislation for derelicts.
Link between substandard shipping and wreck removal:
9 A substandard ship increases the chances of it becoming a wreck
There is an issue of inadequate legislation.
Link between substandard shipping and marine insurance:
9 High risk for substandard ships 9 High premium 9 Substandard ships are adverse to the insurance industry
There is inadequacy in English common law legislation for marine insurance in the PICTs.
Addressing gaps
9 Identify the gaps in legislation and amend accordingly 9 If no legislation exists, then draft policies and legislation.
Recommendations
9 PIMLAR currently reviewed and update maritime legislations 9 Incorporate the recent IMO conventions (e.g., Wreck Removal Convention 2007)
Discussion
Taulapapa Tominiko supported the idea of harmonising the generic legislation, PIMLAR. Areas, such as open registry, derelicts, wrecks and marine insurance, needed to be addressed within existing parts of PIMLAR.
Mr Tufuga pointed out that PIMLAR had a part on wreck and salvage. With the adoption of the new Wreck Removal Convention, there was a need for further review. Marine insurance was an area on its own, and was sometimes covered through a separate act or otherwise incorporated into Shipping Act. It was suggested that marine insurance be its own Act, in harmony with existing legislation.
In terms of open registries, Mr Tufuga stated that RMP’s view was to advocate that there were huge obligations for small island countries to monitor in terms of creating a genuine
39 link between ship operators and the Flag State. Marshall Islands and Vanuatu had engaged external companies to look after the operations of the open registry, and were possibly doing fine.
Shipowners The Pacific Islands Maritime Association (PacMA), Pacific Women in Maritime Association (PacWIMA), Pacific International Maritime Law Association (PIMLA) and Pacific Countries Ports Association (PCPA) are regional maritime associations in the Pacific islands region whose secretariat and treasury functions are held by SPC’s Regional Maritime Programme in Suva, Fiji. The associations are symbolic of self-help mechanisms in the region whereby expertise from the region are pooled together to provide assistance to the Pacific island countries in various areas, especially in the implementation of international maritime conventions. Further information on the associations can be read in the leaflets provided.
(i) Assess the effectiveness of existing national shipowners’ associations in addressing substandard issues. (ii) What are your views on introducing a regional shipowners’ association in the Pacific islands region?
Group 4:
Effectiveness of existing national shipowners associations in addressing substandard issues:
Current shipowners association was not effective in addressing substandard issues. Shipowners, more on individual interests, try to attract business and in the process, improve their standard of service and operation. From Fiji’s experience, the shipowners’ association had spoken collectively for the quality of seafarers to be improved.
Views on introducing a regional shipowners association:
There needed to be regional shipowners/operators association in the PICTs. The association could be a forum for exchange of information, sharing of lessons learnt and exchanging ideas or experiences for the region’s shipowners to improve safety.
Other key attributes of a regional shipowners’ association were considered to be: 9 Good bulk purchasing capacity on ship’s equipment and spares. 9 Increased powerful positioning to negotiate on behalf of members on tax reduction incentives 9 Tax incentives on purchase of vessel 9 Ability to lobby on shipowners’ perspective at PacMA, Transport Ministers meeting or regional Government regulatory Authorities
Discussion
Capt Hogan inquired if the shipowners wanted to be part of PacMA or a separate association, noting that Fiji Shipowners’ Association and SSS were already members of PacMA. Mr Toalepai raised that being part of PacMA was best, and this was generally accepted by others.
40 THEME 6 INTRODUCING CHANGE
25.0 GOOD GOVERNANCE
Captain Hogan elaborated on good governance in the context of the maritime sector in the Pacific Islands (presentation attached as Annex 26). Some of the maritime issues in terms of good governance were highlighted. SPC relied heavily on donor funding and support, which was tied to good governance – hence, the need to demonstrate good governance. Some of the characteristics of good governance included clear policy, adequate legislation, transparency, clear lines of responsibility and transparent representation on boards.
Regional governance mechanisms discussed included PIMLA, TOKYO MoU, MoU on Recognition of Seafarer Qualifications, IMO-SPC MoU and the ILO-SPC Letter of Agreement.
A national maritime policy was regarded as one of the first steps in developing an efficient, economic and effective maritime sector. Some of the enforcement and implementation was through maritime legislation and regulations, two-tier system of rules as well as administering systems such as regional survey standards, regional standards on examination and assessment, regional audit standards, regional standards on ship registration, trained and qualified surveyors and trained and qualified auditors. The implementation of regional and subregional solutions was through training and capacity building. Coordinated approaches in safety and security had been formed through a Working Group on Integrated Border Management, collaboration between RMP and the Oceania Customs Organisation on a study of pleasure vessels in the Pacific Islands, through PacMA’s working subcommittees and through regional MoUs.
Emerging issues described included seafarer data and regional storage, shipping management for SIS, codes of safe practice for Pacific maritime sector, standards for safe and secure of people and cargo from ship to shore in SIS without ports, collection, collation and dissemination of analytical information on vessels in the Pacific, and maintenance of international compliance measures. Transparency and accountability of operations were essential. Information analysis and exchange was also an integral part of good governance.
26.0 NECESSARY CHANGE IN THE MARITIME SECTOR
Drivers of change in the maritime sector included increased controls and legislation and failure to comply with international standards which could lead to serious repercussions for shipping companies, port authorities and international seaborne trade (presentation attached as Annex 27). In international shipping the PSC regime in place adequately ensured that the international standards were maintained. International shipping was of acceptable frequency with generally high freight rates. In various ports in the Micronesian countries, the regulation of international shipping are governed by a regional shipping agreement monitored by the Micronesian Shipping Commission, which had been successful in implementing a regional cabotage.
At the domestic level there were issues regarding non-compliance to non-convention vessel regulations. The main issues were substandard tonnage and existence of vessel types unsuited to the trade in which it operated. Smallness, geographical isolation, limited population and limited resources created their own difficulties, but these factors alone did not explain the high costs and inefficiencies of transport services.
41 There were several ways to bring about the necessary change in the maritime sector. Cooperative purchasing of stores and spare parts between companies or operators using the equipment, perhaps with the removal of taxes on the purchase of such parts was one way forward. A shift towards greater responsibility being given to ships’ crew was due. Maritime training had to be more attuned to the needs of the industry. The maritime industry needed to take initiatives to make changes, with a focus on increased efficiency. Technology changes in the industry were rapid. Global Positioning System was used to assist in voyage routing and this had to occur effectively. It could be informative to analyse the contrasts in different companies operating on the same route to influence better changes. A suggestion for increasing efficiency was also to fit internet to domestic ships, so that Masters could send ahead passenger lists as well as communicate details of cargo spares and necessary stores to the next port.
Contestable shipping markets needed to be identified and commercial shipping mechanisms needed to be set up. A standard design or series of standard designs based on a 45m, 35m and 20m landing craft with one or two sets of derricks, bow ramps operated with wires or chains (not hydraulics), cargo tanks, and facilities for passengers (toilets, sleeping racks that fold out from hold sides) was relevant. New ships needed to be well constructed with heavy scantlings and heavy-duty surface coatings, robust engine installation. The ships needed to be fitted with good equipment which could be basic such as magnetic compasses (not too much electronics). Engines had to be suited to operate on low-grade fuel. Better shipping company management in terms of port rotation, office management, operations, crewing, storing and bunkering was recommended.
A regional response was recommended for providing more technical assistance to ship owners and higher-level training in ship operations and management. Regional cabotage rules was a challenge but it had the potential to lower domestic transport costs and encourage innovation in PICTs’ domestic shipping markets. Putting in place a coherent maritime policy to guide decision-making was important. For ports, there was a need for significant improvement in port maintenance and productivity.
Discussion
In the past five years, although international maritime law had evolved rapidly, it did not necessarily affect domestic shipping at the same rate. A number if maritime legislation were not relevant to the Pacific Islands such as the construction regulations for passenger ships carrying over 200 passengers. However, changes to core legislation such as ISPS, MARPOL, Loadline and Tonnage are likely to impact PICTs. At RMP, the information from IMO that was not suited to the Pacific was filtered, and PIMLA had been instrumental in this.
27.0 RESOLUTIONS
The participants agreed on the following resolutions drawn from the seminar:
1. Shipowners shall commit to implementing Safety Management System (SMS) on board their ships. 2. SPC RMP shall prepare a training package for shipowners which will include ISM auditing. 3. RMP shall update legislation and generic procedures for changes in law. 4. Seek closer collaboration with International Transport Workers Federation (ITF). 5. Shipowners to seek membership to PacMA (rather than developing a regional shipowners association) for networking and collaboration in maritime activities.
42 6. Review of generic legislation to include derelict vessels, wreck removal and marine insurance issues by PIMLA. 7. Commitment from MAs to implement Business Excellence after RMP training. 8. An award system for the industry – criteria to be set with PacMA and RMP 1. Cadet of the Year 2. Instructor of the Year 3. Shipowner of the Year 4. Recognition of service to the maritime industry 9. RMP to hold another substandard shipping seminar in two years time to measure the level of implementation of resolutions emanating from the seminar.
These could be reported back at the next Maritime Transport Ministers’ Meeting.
28.0 CLOSING REMARKS AND END OF SEMINAR
Taulapapa Tominiko gave special appreciation to RMP, and particularly to Capt Hogan, for having the seminar. The information from the seminar was expected to be very helpful.
43 ANNEX 1 SECRETARIAT OF THE PACIFIC COMMUNITY Substandard shipping seminar Suva, Fiji, 13 - 17 Aug 2007 LIST OF PARTICIPANTS PARTICIPANTS BY COUNTRY Cook Islands Henry, Martha Crown Law Office - CI Tel: +682 29337 Legal Adviser PO Box 494, Avarua Fax: +682 20839 Rarotonga Email: [email protected]
Federated States of Micronesia Aiaimoa, Itibwinnang Kiribati Shipping Services Ltd Tel: +686 26195 General Manager PO Box 495 Fax: +686 26204 Tarawa Email: [email protected]
Hadley, Weiner Department of Transportation, Communication & Tel: +691 320 2865 Assistant Secretary for Marine Infrastructure (FSM) Transportation PO Box PS-2 Fax: +691 320 5853 Palikir Pohnpei Email: [email protected]
James, Paul Department of Transportation, Communication & Tel: +691 320 2865 Manager, Operations Infrastructure (FSM) PO Box PS-2 Fax: +691 320 5853 Palikir Pohnpei 96941 Email: [email protected]
Fiji Dunn, Jessie James Fiji Islands Maritime Safety Administration Tel: +679 331 5266 Deputy Port Master PO Box 326 Fax: +679 330 3251 Suva Email: [email protected]
Ratotodro, Captain Inoke Fiji Islands Maritime Safety Administration Tel: +679 331 5266 Principal Marine Officer - Rules and P.O. Box 326 Fax: +679 330 3251 Regulations Suva Email: [email protected] Kiribati Kabure, Moote Ministry of Communications, Transport & Tourism Tel: +686 26150 / 26003 Marine Surveyor Development - Kiribati Marine Division Fax: +686 26193 Tarawa Email: [email protected]
Nauru Detenamo, Kemp Nauru Port Authority Tel: +674 444 3889 Administration Officer Department of Transport Fax: +674 444 3888 Yaren Email: [email protected] Iteraera, Ruria Department of Justice - Nauru Tel: Legal Officer Government Buildings Fax: Yaren Email: [email protected]
New Caledonia Conan, Arnaud Christophe Department of Maritime Affairs (N Cal) Tel: +687 27 26 26 Marine Surveyor BP 36 Noumea cedex Fax: +687 28 72 86 Noumea 98845 Email: [email protected]
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45 ANNEX 1 SECRETARIAT OF THE PACIFIC COMMUNITY Substandard shipping seminar Suva, Fiji, 13 - 17 Aug 2007 LIST OF PARTICIPANTS Denamur, Vincent Harald Francois Department of Maritime Affairs (N Cal) Tel: +687 27.26.26 Head of Maritime Affairs Office of New PO Box 36 Fax: +687 28.72.86 Caledonia Noumea Email: [email protected]
Niue Eveni, Jay Crown Law Office - Niue Tel: +683 4228 Assistant Crown Counsel PO Box 70 Fax: +683 4208 Alofi Email: [email protected]
Talagi, Deve Public Works Department - Niue Tel: +683 4297 Director Fax: +683 4233 Alofi Email: [email protected]
Viviani, Danny Dennis Public Works Department - Niue Tel: +683 4297 Mechanical Superintendent PO Box 38 Fax: +683 4223 Alofi Email: [email protected]
Palau Polloi, Carl Quay Government of Republic of Palau Tel: +680 488 1951 / 3951 Legal Officer PO Box 100 Fax: +680 488 1767 Koror 96940 Email: [email protected]
Papua New Guinea Kabiu, Joseph Titus Papua New Guinea National Maritime Safety Tel: +675 3211244 Marine Surveyor Authority PO Box 668 Fax: +675 3210873 Port Moresby Email: [email protected]
Pyawan , Joseph Papua New Guinea National Maritime Safety Tel: +675 321 1244 Legal Officer Authority PO Box 668 Fax: +675 321 0873 Port Moresby Email: [email protected]
Tarumuri, Peter Thomas Alotau Stevedoring & Transport Limited Tel: +675 6411090 Managing Director PO Box 28 Fax: +675 6411105 Alotau Email: [email protected]
Pitcairn Silva, Ginny British High Commission (NZ) Tel: +64 4 924 2888 / 2861 Deputy Governor of Pitcairn Islands 44 Hill Street, PO Box 1812 Fax: +64 4 924 2831 Wellington 6410 Email: [email protected]
Samoa Koria, Komisi Office of the Attorney General - Samoa Tel: +685 20 295 Legal Officer PO Box 27 Fax: +685 22 118 Apia Email: [email protected]
Taefu, Raymond Samoa Shipping Corporation Limited Tel: +685 20935 Shipping Officer & Marketing Shipping House Fax: +685 22352 Apia Email: [email protected]
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46 ANNEX 1 SECRETARIAT OF THE PACIFIC COMMUNITY Substandard shipping seminar Suva, Fiji, 13 - 17 Aug 2007 LIST OF PARTICIPANTS Toalepai, Sala Theodore S Samoa Shipping Services Tel: +685 20790 / 20796 General Manager PO Box 1884 Fax: +685 20026 Apia Email: [email protected]
Tominiko, Captain Taulapapa Maselino Ministry of Works, Transport & Infrastructure - Tel: +685 21611 Assistant Chief Executive Officer Samoa Private Bag Fax: +685 28688 Apia Email: [email protected]
Tokelau Ioane, Makalio Tokelau Apia Liaison Office Tel: +685 20822 Deputy Director of Transport Dept of Transport & Support Services Fax: +685 21761 Apia Email: [email protected]
Racule, Captain Satini Tatau Tokelau Apia Liaison Office Tel: +685 20822 Captain of the MV Tokelau Tokelau Transport Fax: +685 21761 Apia Email: [email protected]
Tonga Johnson, Capt William Leslie Simpson Ministry of Marine & Ports - Tonga Tel: +676 22 555 / 26 235 Acting Secretary of Marine & Ports PO Box 397 Fax: +676 26 234 Nuku'alofa Email: [email protected]
Tuvalu Sakua, Kanae Department of Marine and Port Services - Tuvalu Tel: +688 20055 Shipping and Port Officer C/o Ministry of Communications & Transport Fax: +688 20722 Funafuti Email: [email protected]
Suitupu, Sokiata Department of Marine and Port Services - Tuvalu Tel: +688 20055 Assistant Marine Manager Fax: +688 20722 Funafuti Email: [email protected]
RESOURCES Consort Shipping Line Ltd Smith, Justin Consort Shipping Line Ltd Tel: +6793313344/3313266 Managing Director GPO Box 152 Fax: +6793303389 Suva Email: [email protected]
Fiji Institute of Technology Robanakadavu, Capt Tevita Misidali Fiji Institute of Technology Tel: +679 331 5682 Head School of Maritime & Fisheries P O Box 3722 Fax: +679 331 5614 Suva Email: [email protected]
Fiji Ports Corporation Limited Hazelman, Herbert Tel: +679 9326591 former CEO - FPCL Email: [email protected]
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47 ANNEX 1 SECRETARIAT OF THE PACIFIC COMMUNITY Substandard shipping seminar Suva, Fiji, 13 - 17 Aug 2007 LIST OF PARTICIPANTS
Fiji Shipowners Association Smith, Leo Barry Fiji Shipowners Association Tel: +679 331 3344/ 3313266 Secretary GPO Box 152 Fax: +679 330 3389 Suva Email: [email protected]
High Court - Suva Pathik, Devendra High Court - Suva High Court Judge Suva Fax: +679 330 0674 Email: [email protected]
Malcolm Harrison Consultants Harrison, Malcolm Malcolm Harrison Consultants Tel: +679 336 1294 Director P O Box 2129 Fax: +679 336 1294 Suva Email: [email protected]
Neptune Shipping Marlow, Peter Neptune Shipping Tel: +64 9 306 0281 Technical Superintendent Fax: +64 9 302 5361 Auckland Email: [email protected]
Samoa Shipping Corporation Limited Nansen, Papali'i Willie Samoa Shipping Corporation Limited Tel: +685 20935/20936 Managing Director Private Bag Fax: +685 22352 Apia Email: [email protected]
OBSERVERS Department of Transport & Regional Services - Australia Innes, Chris Department of Transport & Regional Services - Tel: +61 2 6274 7324 / 413 273 Australia Pacific Maritime Security Liaison Officer GPO Box 594 Fax: +61 2 6257 6341 Canberra ACT New South Wales 2601 Email: [email protected]
ORGANISERS Secretariat of the Pacific Community - Noumea Benyon, Roy Secretariat of the Pacific Community - Noumea Tel: +687 262 000 Interpreter B.P. D5 Fax: +687 263 818 Noumea Email: [email protected]
Delhaye, Patrick Secretariat of the Pacific Community - Noumea Tel: +687 262 000 Interpreter B.P. D5 Fax: +687 263 818 Noumea Email: [email protected]
Hamaide, Aurelie Secretariat of the Pacific Community - Noumea Tel: +687 262 000 Interpreter B.P. D5 Fax: +687 263 818 Noumea Email: [email protected]
Secretariat of the Pacific Community - Suva Goundar, Avnita K. Secretariat of the Pacific Community - Suva Tel: +679 337 9281 Maritime Information Assistant Regional Maritime Programme Fax: +679 337 0146 Suva Email: [email protected]
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48 ANNEX 1 SECRETARIAT OF THE PACIFIC COMMUNITY Substandard shipping seminar Suva, Fiji, 13 - 17 Aug 2007 LIST OF PARTICIPANTS Hogan, Captain John Patrick Secretariat of the Pacific Community - Suva Tel: +679 337 0733 ext 257/ 337 Programme Manager Regional Maritime Programme Fax: +679 337 0146 Suva Email: [email protected]
Jit, Joytishna Secretariat of the Pacific Community - Suva Tel: +679 337 9276 Maritime Research Assistant Regional Maritime Programme Fax: +679 337 0146 Suva Email: [email protected]
Madhavan, Shelesh Secretariat of the Pacific Community - Suva Tel: +679 337 0733 ICT Technician PMB, Luke Street Fax: +679 337 0021 Suva Email: [email protected]
Rabukawaqa, Inise L.R. Secretariat of the Pacific Community - Suva Tel: +679 337 0952/337 9255/337 Maritime Programme Administrator Regional Maritime Programme Fax: +679 337 0146 Suva Email: [email protected]
Rigam, Alobi Bomo Secretariat of the Pacific Community - Suva Tel: +679 337 9248/ 337 0733 ext Maritime Technical Security Officer Regional Maritime Programme Fax: +679 3370 146 Suva Email: [email protected]
Streeter, Megan A. Secretariat of the Pacific Community - Suva Tel: +679 337 0733 ext 278 / 337 Maritime Adviser Systems Development Regional Maritime Programme Fax: +679 337 0146 Suva Email: [email protected]
Tamani, Captain Timoci N. Secretariat of the Pacific Community - Suva Tel: +679 337 9296 Maritime Port Security Officer Regional Maritime Programme Fax: +679 337 0146 Suva Email: [email protected]
Tufuga, Tufuga Fagaloa Secretariat of the Pacific Community - Suva Tel: +679 337 9232/337 0733 ext Regional Maritime Legal Adviser Regional Maritime Programme Fax: +679 337 0146 Suva Email: [email protected]
Tuitubou, Fipe Secretariat of the Pacific Community - Suva Tel: +679 337 9276/337 0733 ext Maritime Administration Assistant Private Mail Bag Fax: +679 337 0146 Suva Email: [email protected]
Vata, Captain Apenisa K. Secretariat of the Pacific Community - Suva Tel: +679 337 0733 ext 221 / 337 Maritime Training Adviser Regional Maritime Programme Fax: +679 337 0146 Suva Email: [email protected]
Vuruya, Vive Secretariat of the Pacific Community - Suva Tel: +679 337 0733 ext 276 Maritime Data Entry Assistant Private Mail Bag Fax: +679 337 0146 Suva Email: [email protected]
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49 ANNEX 2
Seminar on Substandard Shipping in the Pacific Islands region Suva, Fiji, 13 – 17 August 2007
Opening Address
By Mr Leo Barry Smith, Director of Consort Shipping Limited, Suva, Fiji
Regional delegates, Programme Manager and staff of the Regional Maritime Programme of the Secretariat of the Pacific Community and
Adequate transport services are critical to growth and development in the Pacific Islands region. They provide access for trade and tourism and vital links between island countries and islanders living abroad. Yet the transport sector in the region has been a source of recurring problems that have been inadequately addressed. The key issues and constraints are well known. They relate to small populations, long distances, low load factors, seasonal peaks, lack of reliability, high costs, often large (hidden) subsidies to sustain essential but non-economic services, limited institutional capacity, high levels of government participation and good governance.
Amongst all these lies the issue of substandard shipping that has been an ongoing challenge for the Pacific islands region for a long time. Ever-increasing freight rates, passenger fares, high cost of spare parts or machinery maintenance and lubricating oils together with old worn out tonnage all contribute to shipowners’ problems in the purchase of new or second-hand tonnage as well as in ensuring an effective ongoing maintenance regime. In addition to this, shipowners have to keep abreast of the new legal requirements relating to maritime safety, security and pollution. Non-compliance with these new international standards could result in loss of trade and employment which would have a devastating impact on economic development in the Pacific Islands region.
Other factors that influence shipowners are issuing of coastal licenses subsidized by government services, unequal distribution of profitable and non-profitable route licenses and government duty on imported spare parts, safety equipment, fuel and oil for domestic ships. Shipowners strive to maintain their existing tonnage while crew are expected to “make do” when it comes to maintenance and when critical equipment requires expert attention, usually foreign experts are quite expensive to afford. For on-going maintenance, there is also little knowledge of the importance of regular maintenance, structural steel coatings and renewal of expired safety equipment.
New tonnage coming into the region is usually worn-out and bought because it is cheap, has become redundant as it doesn’t comply with the new international conventions or it is too expensive to update existing equipment to meet port state control requirements (eg. new MARPOL requirements). New tonnage coming in is usually ex-Europe or Asia and in most cases unsuited to its new role, for example, fishing vessel used as cargo vessel (usually these new tonnage are old and outdated in terms of safety construction, equipment and cost effectiveness) and in some cases these vessels are not insured.
50 ANNEX 2
(Leo, here…you can add the seminars and meetings that you have attended over the years, the outcomes but no implementation). This seminar, as I understand, is an attempt to seek practical solutions at a regional level with the involvement of all key players in the shipping sector. The recommendations or resolutions emanating from this seminar, I hope, will be realistic and achievable.
Thank you.
51 ANNEX 3
Seminar on Substandard Shipping in the Pacific Islands region Purpose of seminar 13 – 17 August 2007, Suva, Fiji Islands The seminar will focus on the role of key agencies in addressing critical issues relating to substandard shipping Setting the scene… in the Pacific Islands region at the domestic level
Government Shipmaster Shipping company
Advisory bodies Marine insurers
Maritime lawyers Ports By Capt John Hogan Maritime Programme Manager Maritime training institutes Regional Maritime Programme, SPC Suva,REGIONAL Fiji MARITIME Islands PROGRAMME – Substandard shipping seminar, Suva, 13 -17 August, 2007 REGIONAL MARITIME PROGRAMME – Substandard shipping seminar, Suva, 13 -17 August, 2007
SPC Regional Maritime Programme SPC Regional Maritime Programme
Content Content Role of Government Role of shipowner and shipmaster International safety requirements Purchase of vessels Presentation of country Survey standards and guidelines Management of shipping operations – papers Responsibility of government international Shipping subsidies Management of shipping operations – domestic Role of government shipping services Roundtable discussion: Crew development and in-house Corporatisation of government training shipping services Benefits of having regional Planned maintenance The role of shipmaster maritime associations Legal considerations Suitable domestic legislation Training A regional shipowners’ Enforcement of legislation Maritime training: SPC perspective Penalties: case study of MV Ovalau association in the Pacific Substandard crew A marine insurer’s perspective islands region? Introducing change Role of ports Good governance Breakout group sessions Derelict vessels: ports perspective Necessary change in the maritime Derelict vessels: legal perspective sector Roundtable discussion: Derelict vessels: security perspective way forward…
REGIONAL MARITIME PROGRAMME – Substandard shipping seminar, Suva, 13 -17 August, 2007 REGIONAL MARITIME PROGRAMME – Substandard shipping seminar, Suva, 13 -17 August, 2007
SPC Regional Maritime Programme SPC Regional Maritime Programme
A ‘Substandard Ship’ Definition 1: Substandard shipping… “A ship that does not meet the minimum standards What does it mean to you? laid down in the international conventions” (The Nautical Institute) Can it be eliminated or reduced? Definition 2 : What part do you play? “A vessel that, through its physical condition, its operation or the activities of its crew, fails to meet basic standards of seaworthiness and thereby poses a threat to life and/or the environment” (Organisation for Economic Co-operation and Development)
REGIONAL MARITIME PROGRAMME – Substandard shipping seminar, Suva, 13 -17 August, 2007 REGIONAL MARITIME PROGRAMME – Substandard shipping seminar, Suva, 13 -17 August, 2007
SPC Regional Maritime Programme SPC Regional Maritime Programme
52 ANNEX 4
International Safety Flag State Responsibility Requirements Flag states are required by international law to effectively exercise jurisdiction and control in administrative, technical and social matters over ships flying its flag. This includes: Construction Equipment Seaworthiness Manning Labour conditions Capt John Hogan Training of crew Programme Manager Use of signal Regional Maritime Programme Maintenance of communications Secretariat of the Pacific Community Prevention of collisions Substandard Shipping Seminar Substandard Shipping Seminar
SPC Regional Maritime Programme SPC Regional Maritime Programme
SOLAS SOLAS SAFETY To specify minimum standards for the construction, equipment and operation of ships, compatible with SOLAS is the Convention on the their safety. Safety of Life at Sea, 1974 Flag States are responsible for ensuring that ships Generally regarded as the most under their flag comply with its requirements, and a important of all international number of certificates are prescribed in the treaties concerning the safety of Convention as proof that this has been done. merchant ships Control provisions also allow Port States to inspect The first version was adopted in Source: ships of Flag States if there are clear grounds for 1914, in response to the Titanic www.news.bbc.co.uk/1/hi/uk/192 believing that the ship and its equipment do not disaster, the since versions were 7996.stm substantially comply with the requirements of the developed until 1960, entering Convention - this procedure is known as Port State into force in 1974. Control.
Substandard Shipping Seminar Substandard Shipping Seminar
SPC Regional Maritime Programme SPC Regional Maritime Programme
ISM Code STCW-95 Safety International Management Code for the Safe Prescribes minimum standards related to training, Operation of Ships and for Pollution Prevention certification and watchkeeping for seafarers on an Under this code, companies commit to international level. Issue a Safety & Environmental Protection Policy Important feature: applies to ships of non-party Have procedures to support the policy states when visiting ports of states which are party. Maintain records, conduct periodic audits Places emphasis on competency Have senior management review the ship’s Safety Stipulates in detail the required competency levels for tasks Management System Hands-on training (simulators, lab training equipment, etc) Have the system approve and a certificate issued by the Flag State Verification of implementation process done by IMO – issuance of “white list” Substandard Shipping Seminar Substandard Shipping Seminar
SPC Regional Maritime Programme SPC Regional Maritime Programme
53 ANNEX 4
STCW-95 MARPOL White List Pollution Is a list of those countries whose WHITEWHITE MARPOL is the International Convention for the information communication to the IMO has Prevention of Pollution from Ships 1973/78 been evaluated and found to be giving full LIST and complete effect to the STCW LIST Torrey Canyon Disaster of 1967 Solomon Is Convention. Solomon Is first of the big supertankers To maintain White List status, the Flag KiribatiKiribati State must commission an external audit TuvaluTuvalu 31 million gallons of oil was spilled, and spread along the within five years of obtaining that status. TongaTonga reef and sea between England and France It is in the Flag State’s commercial FSMFSM killed most of the marine life it touched along the whole of interests to have the external audit, as PNG the south coast of Britain and the Normandy shores of independently-verified recognition of its PNG compliance gives its internal systems FijiFiji IsIs France, with effects lasting many years thereafter greater credibility among the international SamoaSamoa maritime community. VanuatuVanuatu Substandard Shipping Seminar MarshallMarshall IsIs Substandard Shipping Seminar
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MARPOL
Entered into force on 2nd October, 1983 (Annex I & II). Deals with the sources of ship-generated pollution accidental and operational oil pollution prevention of pollution from oil, bulk chemicals, dangerous goods, sewage, TORREY garbage and atmospheric pollution, and includes provisions such as those which require certain oil tankers to have double hulls CANYON There are six annexes currently in force that outline specific regulations: Mandatory DISASTER Annex I - Prevention of pollution by oil Annex II – Control of pollution by noxious liquid substances in bulk Voluntary Annex III – Prevention of pollution from harmful substances carried by sea in packaged form Annex IV – Prevention of pollution from sewage IN 1967 Annex VI – Prevention of pollution by garbage form ships Source: Annex VII – prevention of air pollution from ships http://www.lboro.ac.uk/departments /hu/ergsinhu/aboutergs/torrey.htmlSubstandard Shipping Seminar Substandard Shipping Seminar
SPC Regional Maritime Programme SPC Regional Maritime Programme
LOADLINE TONNAGE Tonnage measurement convention, 1969 International Convention on Loadlines, Tonnage can mean: LOADLINE, 1966 Light displacement (weight of ship), or Limitations on the draught to which a ship may be Loaded displacement (ship + cargo), or loaded make a significant contribution to its Deadweight (maximum weight it can carry), or safety. Gross tonnage (capacity/space inside ship), or Net tonnage (space reserved for cargo) LOADLINE sets the minimum permissible free board, according to the season of the year and Provides for uniform measurement of a vessel’s capacity tonnage the ships trading pattern. Is an equitable basis for establishing fees and dues All assigned load lines must be marked amidship Tonnage is useful for ship registration (identifier), and on each side of the ship, together with the deck stability calculations. line. Substandard Shipping Seminar Substandard Shipping Seminar
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Status of Recommended IMO Conventions in July, 2005 COLREG (Source: www.imo.org) V Convention on the International Regulations for Preventing Collisions at Sea, COLREG, 1972 Lays down the basic “rules
of the road”, such as rights IMO Convention 48 IMO amendments 91 IMO amendments 93 SOLAS Convention74 78 Protocol SOLAS 88 Protocol SOLAS LOAD LINES Convention66 88 Protocol LINES LOAD TONNAGE Convention 69 COLREG Convention 72 STCW Convention 78 I/II) (Annex 73/78 MARPOL III) (Annex 73/78 MARPOL MARPOL 73/78 (Annex IV) MARPOL 73/78 (Annex V) ProtocolMARPOL (Annex 97 IMO of Member AustraliaYYxYYYYYYYYYYYY Y of way and actions to avoid NZ YYxYYYYYYYYYY Y Y collisions. Cook Is x x Y Y Y * Light and sound signals, Fiji Yx YYxYxYYY Y Kiriba ti x x Y Y radar, separation schemes Marshall IsYYxYYYYYYYYYYYYxY FSM) Y Nauru Palau Substandard Shipping Seminar Substandard Shipping Seminar PNGx xx x xxYxxxx Y SamoaYx YYxYxxYYYYYYxY Solomon Is x x x Y Y TongaYYxYxYYYYYYYYYY Y Tuvalu xxxxxxxYxxxx Y SPC Regional Maritime Programme VanuatuYYxYYYYYYYYYYYYxSPC Regional Maritime Programme Y
Conclusions Unfortunately, it is not until a disaster occurs that the public focus on shipping. A knee jerk reaction from international organisations usually results in further conventions and legislations. International law requires Flag States to exercise jurisdiction and control effectively in administrative, technical and social matters over ships flying its flag.
Substandard Shipping Seminar
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Seminar on Substandard Shipping in the Pacific Islands region 13 – 17 August 2007, Suva, Fiji Islands Substandard Shipping Survey standards and guidelines IMO definition for Substandard Shipping: A ship whose hull, machinery, equipment or operational safety is substantially below the standards required by the relevant convention By Alobi Bomo or whose crew is not in Maritime Technical Security Officer conformance with safe Regional Maritime Programme manning document. Secretariat of the Pacific Community Suva, Fiji Islands SPC’s REGIONAL MARITIME PROGRAMME SPC’s REGIONAL MARITIME PROGRAMME
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Substandard Shipping Flag State Responsibility IMO conventions which Article 94 of UNCLOS states the duties of the Flag State address substandard Flag State’s responsibility is to ensure that it has measures in place for: shipping include: SOLAS vessels (IMO convention) SOLAS Convention Non - SOLAS vessels Loadline Convention Non – SOLAS vessels regulation and survey guidelines MARPOL Convention are now out to member countries. Member countries would be using these standards and STCW Convention guidelines to enforce their Flag State responsibilities Tonnage Convention These survey standards and guidelines should assist COLREG Convention the flag state to ensure that each ship before registration and thereafter at appropriate intervals be surveyed by a qualified surveyor
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Flag State Regulations Quality Shipping
The ultimate responsibility of safe and civilised operation of With the shipping Industry a ship lies with the owner and its aided by the Flag having more players with Administration and or Classification Society . different types of vessels (fishing vessels, fast craft, Good owners must be helped by the elimination of the bad pleasure vessels, landing Good owners must play a large part in their own battle craft, passenger vessel, passenger & cargo vessel and general cargo vessels), there is a need for the shipping industry to have standards in place for regulations to cover safety of life, safe carriage of cargo and environment protection.
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1 ANNEX 5
Flag State Surveyors Flag State Surveyors
Surveyors enforce compliance Role of the Surveyor is similar to a policeman measures: In order to ensure compliance with relevant conventions, legislation or regulations, it is necessary to use surveyors to carry out regular surveys The surveyor has to know and have an understanding of the structure of the industry and its legislative frame work A Surveyor acts on behalf of the Maritime Administration The two aspects for every survey: or Flag State. - Who is it for ? (Flag State) A Surveyor is there to ensure that the players keep the - What is it for ? (Fit for service as per regulation) rules as there are those who do no always keep the rules. SPC’s REGIONAL MARITIME PROGRAMME SPC’s REGIONAL MARITIME PROGRAMME
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Flag State Surveyors Flag State Surveyors
Role of the Surveyor Surveyors can be involved The responsibility of the in activities other than surveyor is dedicated to surveying: ensure safety of ships and Fact finders the protection of life, property and the marine Advisors environment Maritime auditors Surveyors ensure ships comply with applicable Witness in court hearings national regulations and Policemen for Flag State international conventions
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Flag State Surveyors Importance of Surveyors Experience
Challenges faced by surveyors: Surveyors Contribution to Bribery Lack of experience Shipping Industry: Conflict of interest Knowledgeable and experienced Lack of highly trained surveyors working for the Flag Administration surveyors should help the industry Not all ship owners like surveyors to ensure legislation developed is fit for purpose The Regional Survey Guidelines was drawn up by the region’s experienced surveyors and maritime administrators in line with PIMLAR
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2 ANNEX 5
Survey-Sub Committee Survey Standards & Guidelines The Survey Sub-Committee, using the region’s experts, developed the Survey Guidelines Regional Survey Guidelines Well trained and experienced surveyors remain a great asset have been drawn up to assist to combating sub-standard shipping surveyors perform their Flag The best people to make changes to the existing regulations State duties to address are the trained and experienced surveyors, they know the substandard shipping practice, strengths and the weaknesses of the system especially for Non-SOLAS vessels Having the same survey standard across the region will ensure surveyors have a uniform standard applied across the region
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Survey Standards & Guidelines Survey Standards & Guidelines Training for Surveyors Surveyors from member countries have been trained on the Regional Regional Survey Guidelines Survey Guidelines The training of surveyors must be on going The survey guidelines has two There will be sub-regional training for surveyors this year Volumes For Port State Control, arrangements are made with MNZ and AMSA for PSC attachment Volume 1 – has 4 sections:
1. Hull & Construction 1 & 2
2. Assignment of Load Lines
3. Surveys and Certificates
4. Survey Check Lists
SPC’s REGIONAL MARITIME PROGRAMME SPC’s REGIONAL MARITIME PROGRAMME
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Survey Standards & Guidelines Survey Standards and Guidelines Regional Survey Guidelines has two Volumes Regional Volume 2 – has 10 sections: Collaboration, 1. Going about a Survey 2. General Information training and 3. Construction and Stability Information sharing 4. Bilge Pumping Systems should help to point 5. Machinery Installations 6. Electrical Installations us in the right 7. Life Saving Appliances direction to combat 8. Safety and Navigation substandard Equipment shipping 9. Fire Protection, Detection and Safety Measures 10. Radio Communication SPC’s REGIONAL MARITIME PROGRAMME SPC’s REGIONAL MARITIME PROGRAMME
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3 ANNEX 5
Secretariat of the Pacific Community SEMINAR ON SUBSTANDARD SHIPPING IN THE PACIFIC ISLANDS REGION Suva, Fiji, 13 – 17 August, 2007
SURVEY GUIDELINES: ADDRESSING SUBSTANDARD SHIPPING
Paper by Alobi Bomo, Maritime Technical Security Officer, Regional Maritime Programme, SPC, Suva, Fiji
A substandard ship The International Maritime Organisation (IMO) defines a substandard ship as “a ship whose hull, machinery, equipment, or operational safety is substantially below the standard required by the relevant convention or whose crew are not in conformance with the safe manning document”1. Some of the IMO conventions which address substandard shipping issues include: International Convention for the Safety of Life at Sea (SOLAS), 1974; International Convention on Load Lines (LL), 1966; International Convention for the Prevention of Pollution from Ships, 73/78 (MARPOL); International Convention on Standards of Training, Certification and Watchkeeping for Seafarers (STCW), 1978; Convention on the Tonnage Measurement of Ships (Tonnage) and; Convention on the International Regulations for Preventing Collisions at Sea (COLREGs).
Flag State Responsibility The duties of the Flag State are spelled out in Article 94 of the United Nations Convention on the Law of the Sea (UNCLOS). Flag State vessels which fall in the category of SOLAS vessels need to abide by IMO’s SOLAS Convention but for the Flag State vessels which do not fall under the SOLAS Convention, the Flag State has to take responsibility. To assist in the Flag State’s responsibilities for the Non-SOLAS vessels, the Pacific Island Countries and Territories (PICT) member countries have been given the Survey Standards and Guidelines to use. The Survey Standards and Guidelines should assist the Flag State in ensuring that each of its ships is surveyed by a qualified surveyor before registration and thereafter at appropriate intervals. With the Flag State having a number of vessels and different types of vessels such as fishing vessels, fast craft, pleasure vessels, landing craft, passenger vessels or combined passenger and cargo vessels, there is a need for the shipping industry to be regulated accordingly. Flag States need to ensure that ships flying its flag comply with the relevant regulations for safety of life, safe carriage of cargo, safe navigation and environmental pollution prevention.
Quality Shipping The ultimate responsibility of a safe and efficient operation of a ship lies with the shipowner and it is aided by the Flag Administration and Classification Society. Profit-driven shipowners often compromise quantity for quality. Quality shipping does not only mean the ship providing regular services to customers with state of the art facilities on board. Quality shipping means ensuring that the ship complies with the requirements of relevant international and national instruments – a responsible shipowner will take this aspect of shipping very seriously and set precedence for others in the industry who may have a lax attitude towards quality shipping.
Flag State Surveyors The Flag State’s responsibilities relating to surveying are carried out by its surveyors. In order to ensure compliance with the relevant conventions, legislation and regulations, the Flag State surveyors carry out regular surveys. Every survey that is undertaken should answer the following two important questions: (i) who is it for?; and (ii) what is it for? It is vital for a surveyor to
1 Spremulli, J. (2004). Classification and statutory surveys handbook 2004. Lloyd’s Register-Fairplay Ltd. United Kingdom.
1 59 ANNEX 5 demonstrate a good understanding of the industry and related legislative framework. The role of the surveyor is similar to a policeman – he has to ensure that the key players keep the rules as there are those who do not always keep rules. The responsibility of the surveyor is dedicated to ensure safety of ships and the protection of life, property and the marine environment. Surveyors ensure ships comply with applicable national regulations and international conventions. Some of the roles that surveyors are called upon to be involved in are: fact finding, providing advice, maritime auditing and providing witness in an inquiry. Some of the challenges faced by surveyors include: Bribery Lack of experience Conflict of interest Not enough properly trained surveyors working for the Flag State administration Not all shipowners like surveyors
Importance of Surveyors’ Experience Experienced and qualified surveyors can contribute a lot to the industry. With the wealth of knowledge and experience, they can help the industry to ensure that the legislation and regulations developed are fit for purpose. The current regional Survey Guidelines and Instructions was developed on this basis. The Pacific Islands Maritime Association’s (PacMA) Survey Subcommittee, who developed the survey guidelines, comprises of surveyors from the region. Well trained and experienced surveyors remain a great asset to combating substandard shipping.
Training of Surveyors Regional survey guidelines have been developed to assist surveyors perform their Flag State duties to address substandard shipping practises. The guidelines have been developed using the principles embodied in the SOLAS convention (though the guidelines were targeted at non-SOLAS vessels trading mostly within the flag states territorial waters). It was ideal for the region to adopt a uniform approach to providing guidance to the surveyors in the region. With some form of uniformity, each Flag State could improve or adjust their standards to address the specific needs of the shipping industry. The survey guidelines have been used to train surveyors from the region. The training of surveyors must be ongoing to: equip the surveyors with better practices; promote sharing of knowledge and experience; ensure they keep abreast with the latest conventions; replace those retiring from their active duties; and those moving on with other employment opportunities. For the surveyors performing Port State Control duties, Pacific-Rim member countries have been assisting with the training of surveyors from the region by way of secondments and Port State Control attachments.
Regional Survey Standards and Guidelines The Survey Standards and Guidelines has two volumes containing the following sections: x Volume 1 has 4 sections: 3. Construction and Stability 1. Hull and Construction 4. Bilge Pumping Systems 2. Assignment of Loadlines 5. Machinery Installations 3. Surveys and Certificates 6. Electrical Installations 4. Survey Checklist 7. Life Saving Appliances 8. Safety and Navigation Equipment x Volume 2 has 10 sections: 9. Fire Protection, Detection and Safety 1. Going about a survey Measures 2. General Information 10. Radio Communication
Conclusion A regional approach to combat substandard shipping is required which would work with regional collaboration, training of the regions surveyors in the standards and guidelines for surveying and information sharing. A combined effort is the way forward to address the issue of substandard shipping practices.
2 60 ANNEX 6
Responsibility of Government PRESENTATION OUTLINE SEMINAR ON SUBSTANDARD SHIPPING Responsibility of Government Major Flag State Responsibilities IN THE PACIFIC ISLANDS REGION 1 Infrastructure (Suva, Fiji, 13 – 17 August, 2007) The Coastal State 2 Ratification of major international maritime treaties Port State 3 Maritime Safety Flag State 4 Supervision of surveys 5 International Safety Management Code Flag State - Overall responsibility 6 Maritime security Implementation and enforcement 7 Seafarers’ competence standards Flag State Responsibilities 8 Employment standards Why flag state performance is important 9 Safe manning and Seafarers’ working hours 10 Casualty investigations Flag & Port State Control 11 Movement of ships between flags Sub-standard Ships 12 Repatriation of seafarers Substandard = Unseaworthy (Ships) 13 IMO Member State Audit Scheme 14 Participation at IMO and ILO meetings Flag State responsibility & Fishing Vessels 15 Consultation with shipowners National Maritime Legislation 16 Use of Recognized Organizations complying with Res A.739 Enforcement of regulations - (local context) 17 Age of fleet Reporting systems and statistics 18 Reporting requirements Responsibility of Government 19 Attendance at IMO meetings (byȱCapt.ȱJohnȱRounds,ȱFIMSA) 20 UN Convention on the Conditions for Registration of Ships 21 Port State Control
Substandard Shipping - Solution Through Partnership Responsibility of Government Responsibility of Government
• International Level – (Port or Coastal) States • Flag state responsibility – IMO, Shipping Industry, Insurers & other organisations • Flag state responsibility (ICS, P&I Cubs, etc) • National maritime legislation • Enforcement of regulations • Regional Level – (Port or Coastal) States, Shipping Industry & (local context) – Organisations (Tokyo MOU, APEC, SPC) • Reporting systems and statistics • Local Level – Government – (Flag) State, Port State Control. – Shipping Industry, Owners, Public, etc.
The Coastal State Port State
A state having a coastline is entitled under international law to take certain limited steps to protect its own interests. Port State refers to that authority under which UNCLOS recognises four main zones of varying a country exercises regulatory control over the jurisdiction: internal waters, territorial waters, a contiguous zone and the exclusive economic zone. commercial vessel which is registered under another country’s flag. A state's powers range from full sovereign powers within internal waters, to rights limited to the exploitation of natural resources on and above the EEZ. But there are limitations on This authority only exists while those vessels are the seemingly wide power of the coastal state: operating within that country’s territorial waters.
All states have the right of free passage of their ships Generally territorial waters extend out to 12 through the high seas, the continental shelf zone and miles (22.2 km). the EEZ.
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Flag State - Overall Flag State responsibility The flag state, as defined by the United Nations Convention on the Law of the Sea (UNCLOS), has overall responsibility for the implementation and enforcement of international In international customary maritime regulations for all ships granted the right to fly its maritime law, it is incumbent flag. upon any state which allows the registration of vessels under its However, the flag state may conduct the larger part of its activities flag to effectively exercise its through entities located in other countries. jurisdiction and control in Most national maritime administrations have other roles, in their capacity administrative, technical and as port and coastal states, which may involve the enforcement of social matters over ships flying regulations with regard to visiting foreign ships.
its flag [UNCLOS Art 94]. However, in the context of the regulation of shipping, it is a nation’s role as a flag state that is the first line of defence against potentially unsafe or environmentally damaging ship operations.
Flag State - Overall Implementation and enforcement responsibility (2) The main focus: As a minimum, it is reasonable to expect flag states to have implemented the detailed requirements of the international The enforcement of IMO rules that apply to the operation of maritime treaties listed above, and to have established effective ships, is in the first instance, dependent on IMO member mechanisms for their enforcement. governments in their capacity as flag states. For example, SOLAS, amongst other conventions, provides for regular ship surveys and the issue of certificates of compliance by Flag states also have responsibility for the implementation the flag state, while STCW requires certification of crew and enforcement of rules adopted by other intergovernmental competence. bodies, including the International Labour Organization (ILO) and the International Oil Pollution Compensation (IOPC) Fund. A simple means of assessing the extent to which international and the International Oil Pollution Compensation (IOPC) Fund. regulations are being properly enforced is through an examination of externally published data concerning the performance of ships ILO governs standards of seafarers’ employment, and registered with particular flags, not least port state control data.
The IOPC Fund ensures that victims of any major maritime oil pollution incident receive adequate compensation without undue delay.
Flag State Responsibilities FSR – 2 Ratification of major international maritime treaties FSR - 1 Infrastructure Ratification of international maritime conventions does not necessarily confirm whether the provisions of these global instruments are being properly enforced.
• A flag state should clearly have sufficient infrastructure, in However, a flag state should be able to provide good reason for not having terms of qualified and competent staff, offices and equipment, ratified any of the instruments. The criteria for the conventions listed in the to meet its obligations under international treaties. table are as follows:
• International Convention for the Safety of Life at Sea, 1974 as amended (SOLAS 74) - includes the 1988 • Different flags have different approaches, e.g. staffing may Protocol. depend on the extent to which flags delegate certain • International Convention for the Prevention of Pollution from Ships, 1973 as modified by the Protocol of 1978 (MARPOL 73/78) - the table includes one column for the ratification of MARPOL and its functions to bodies such as classification societies. mandatory Annexes I (oil) and II (bulk chemicals); and a second column for the remaining Annexes III (dangerous packaged goods), IV (sewage), V (garbage) and VI (atmospheric pollution). • International Convention on Load Lines, 1966 (LL 66) - includes the 1988 Protocol. • But if a flag state does not appear to have separate • International Convention on Standards of Training, Certification and Watchkeeping for Seafarers, 1978 inspection or crewing departments, for example, it is possible as amended (STCW 78) - includes the 1995 amendments. • International Labour Organization Merchant Shipping (Minimum Standards) Convention, 1976 (ILO 147) that the flag’s only effective function may be the collection of - excludes the 1996 Protocol. registration fees. • International Convention on Civil Liability for Oil Pollution Damage, 1992, and the International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage, 1992 (CLC/Fund 92) - includes the 1992 Protocols.
62 ANNEX 6
FSR – 3 Maritime Safety FSR – 4 Supervision of surveys • In accordance with IMO Resolution A.739, flag states should establish appropriate controls over organisations, such as classification societies, nominated to conduct To ensure safety at sea with its Ships in regard to (inter alia): statutory surveys of ships on their behalf. construction, maintenance and seaworthiness, – Such controls should include determining that the organisation has adequate resources for the tasks assigned, and entering into a formal written agreement covering the issues manning, specified in A.739. labour conditions and crew training, prevention of collisions. • Flag states should specify instructions detailing actions to be followed in the event that a ship is not found fit to proceed to sea, and provide information concerning To ensure that each ship is appropriately surveyed as to condition, national regulations that give effect to international maritime conventions. equipment and manning. the flag state issues the vessel's safety certificates indicating compliance with – A verification and monitoring system should also be established to ensure the adequacy the main international conventions of work performed by organisations acting on a flag state’s behalf.
These certificates are the key to the port state control inspection system. • The delegation of statutory survey work should be restricted to ‘Recognized Organizations’ that comply with IMO Resolution A.739.
– In practice this will usually mean internationally recognised bodies, such as members of the International Association of Classification Societies (IACS).
FSR – 5 International Safety Management Code FSR – 6 Maritime security
• Flag states should have implemented the requirements of the ISM Code concerning the auditing of safety management systems • Flag states should have implemented the relevant (SMS), both on ships flying their flag and the shore based requirements of the SOLAS Convention and the companies responsible for their safe operation. International Ship and Port Facility Security (ISPS) Code concerning the approval of Ship Security Plans, the issue • Flag states should also have established procedures for the issue of International Ship Security Certificates and the provision and withdrawal of ships’ Safety Management Certificates (SMCs) to ships of Continuous Synopsis Records. and companies’ Documents of Compliance (DOCs). • Flag states delegating approval of plans and/or the issue of • Flag states should also adhere to the Guidance contained in IMO security certificates to other bodies should only delegate to Resolution A.788 concerning the implementation of the ISM Code. organisations that comply with the requirements for Recognized Security Organizations as specified by the • Flag states delegating ISM Code auditing and certification to ISPS Code. other bodies should only delegate to organisations that comply with IMO Resolution A.739. • Flag states are also encouraged to ratify and implement the ILO Seafarers’ Identity Documents Convention, 2003 (ILO 185).
FSR – 7 Seafarers’ competence standards FSR – 8 Employment standards • Flag states should be placed on the IMO STCW ‘white list’ of governments that have demonstrated compliance with the administrative measures needed to implement the 1995 amendments to the STCW Convention concerning the Flag states should implement the requirements of competence and certification of internationally qualified seafarers. the ILO Maritime Labour Convention, 2006, • As required by STCW, flag states should submit quality standards reports to IMO at five year intervals, outlining any deficiencies in their training and 9 certification including, but not limited to the inspection and systems and measures taken to rectify them, in order to maintain a place on the updated STCW ‘white lists’ periodically issued by the IMO Maritime Safety enforcement of ILO standards covering: Committee. • conditions of employment, • Flag states should issue STCW recognition endorsements to foreign officers serving on ships flying their flag, even when they have been issued with • food and catering, certificates of competence by another country. • medical care and accommodation; • The flag state should have procedures in place to ensure that the foreign certificate issuing country complies with STCW training and certification standards. • the approval of ships’ Declarations of Maritime Labour Compliance; and • Flag states should maintain databases of the certificates they have issued to national seafarers and of STCW endorsements issued to foreign officers, and • the issue of Maritime Labour Certificates. respond immediately to requests from companies seeking confirmation of the validity of any certificate or flag state recognition endorsement issued by the flag state.
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FSR – 9 Safe manning and Seafarers’ working hours FSR – 10 Casualty investigations 1. Flag states should approve safe manning levels for ships flying their flag and issue safe • In accordance with IMO Resolution A.849, and taking manning documents, in accordance with the into account the provisions of SOLAS and MARPOL, a provisions of IMO Resolution A.890 flag state should carry out investigations of any ‘serious’ and ‘very serious’ casualty occurring to its ships, as soon as practicable after the casualty. 2. Flag states should strictly enforce minimum seafarers’ rest hours that comply with the ILO • Flag states should also co-operate with other nations Maritime Labour Convention (MLC 2006)in investigating casualties in which ships flying its flag may addition to the IMO STCW Convention. be involved. The relevant findings of such investigations should be forwarded promptly to IMO, and should be 3. Flag states should require work/rest hours to made available to the industry and other interested be recorded in accordance with joint IMO/ILO parties. Guidance
FSR – 11 Movement of ships between flags FSR – 12 Repatriation of seafarers •A flag state accepting a ship transferring from the flag of another state should only • In normal circumstances the employer is accept such a ship when it is satisfied that responsible for the repatriation of seafarers. it is in compliance with international • Nevertheless, as required by the ILO Maritime requirements, and has survey reports Labour Convention, a responsible flag state confirming that the ship is in class. should institute arrangements to ensure that in the rare event of normal procedures failing (e.g. due to bankruptcy of a shipping company) the • Flag states whose ships transfer to other seafarers working on board any ships flying its registers have an obligation to provide all flag, including those that are nationals of other states, are repatriated to their country of necessary information to the new flag residence. state in which the ship is registered.
FSR – 13 IMO Member State Audit Scheme FSR – 14 Participation at IMO and ILO meetings
In order to keep appraised of the latest international maritime regulatory • Flag states should participate in the IMO developments (and contribute to the decisions made by IMO), flag states Member State Audit Scheme in order to identify should be expected to attend all meetings of the following IMO committees: areas for possible improvement with regard to • Maritime Safety Committee (MSC) • Marine Environment Protection Committee (MEPC) the implementation of IMO instruments, and • Legal Committee (LEG) which may benefit from IMO technical • Biennial meetings of the IMO Assembly. assistance programmes. If possible, flag states should also participate in IMO Diplomatic Conferences and relevant technical sub-committees of IMO, including • In the interests of transparency and continuous the Sub-Committee on Flag State Implementation, as well as major maritime meetings of the International Labour Organization. improvement, the industry organisations believe that flag states should publish the results of the All flag states, particularly those from developing countries which might IMO audits for the benefit of the industry as a benefit from technical assistance programmes, should also be encouraged to attend meetings of the IMO Technical Co-operation whole. Committee.
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FSR – 16 Use of Recognized Organizations FSR – 15 Consultation with shipowners complying with Res A.739
There are no published data for determining whether each of the various Flag states should have some form of Recognized Organizations (RO) conducting survey work on behalf of flag states complies with IMO Resolution A.739. consultative process to enable ship operators to Nevertheless, there are several other organisations that are not members of engage in discussions about maritime regulatory IACS that meet the standards required by IMO, and the fact that a flag administration may recognise a non-IACS member does not therefore mean developments and other issues relevant to the that the flag is deficient. safe operation of ships flying their flag. However, if a flag state recognises large numbers of organisations that are not IACS members, there may be reason to doubt whether all of the bodies e.g. through the mechanism of a national conducting surveys on behalf of the flag state actually comply with IMO shipowners’ association. requirements. There are a number of organisations that are not members of IACS which are recognised by different flag states.
FSR – 17 Age of fleet FSR – 18 Reporting requirements • To encourage implementation of international instruments, • It must be emphasised that the age of a ship is not an there are various reporting requirements, both mandatory indicator of quality and the condition of a ship is and recommendatory, concerning the submission of ultimately determined by the standard of its maintenance. information by flag states to bodies such as IMO and ILO.
• That said, a flag which has a concentration of older • Information covering the extent to which flags have tonnage is likely to attract poorer quality vessels, and a complied with certain reporting requirements is not always flag state that has a very high age profile may prompt available in the public domain. further analysis. • However, flags must submit adequate reports of • The above fact can be seen in that the list of PSC independent evaluations to IMO confirming continuing detained ships shows that 25% of flags whose ships compliance with the STCW Convention, in order to have the highest average age amongst those listed, in maintain a place on the most recent STCW ‘white list’. terms of both numbers of ships and tonnage. •Flag states must also submit compliance and practice reports required by ILO.
FSR – 20 UN Convention on the FSR - 19 Attendance at IMO meetings FSR – 20 UN Convention on the Conditions for Registration of Ships
• A flag state should have a competent and adequate national maritime Although in itself not an indicator of their safety and environmental administration; record, flag states that do not attend the major IMO meetings (Maritime • Flag states to ensure that ships flying the flag of such State comply with its Safety Committee, Marine Environment Protection Committee, Legal laws and regulations concerning: Committee and Assembly) may be thought unlikely to be seriously – registration of ships; and – applicable international rules and standards concerning the safety of ships and persons on committed to the implementation and enforcement of IMO rules. board and the prevention of pollution of the marine environment.
Attendance at these meetings is also important to keep abreast of • Such ships are to be periodically surveyed by its authorised surveyors in order regulatory developments. to ensure compliance with applicable international rules and standards. [Art 5.3]. – but flag states generally contract their surveying out to local classification or non-exclusive Flag states should be represented at all meetings of these three major marine surveyors. IMO committees or the biennial meeting of the IMO Assembly during the previous two years. • The convention requires identifiability and accountability from shipowners and managers. – The hard reality is that there is little identifiability and almost no accountability where it is needed most - in relation to the owners of sub-standard ships.
(Some flag states are not universally doing their duty to regulate and police their own tonnage)
65 ANNEX 6
FSR – 21 Port State Control Why flag state performance is important - 1 • It is in the concept of port state control that the maritime community worldwide has seen a possible solution to the problem of the substandard 1. The performance of a flag may impinge directly on that company’s ship. performance. – Not the solution, but rather one of the more positive steps which can be taken and necessary because the prime obligation of the shipowner and his register have been too often neglected. 2. Ships flying a flag with low compliance standard are generally subject to special port state control targeting and thus greater numbers of inspections. • UNCLOS Art 25 empowered states whose ports were used by vessels to take necessary steps to prevent any breach of the conditions to which the call at its ports by such vessels may be subject. 3. For the compliant operator this can mean unnecessary delays, plus – Arts 216 and 218 enable a port state to enforce international anti-dumping and greater potential for charterers’ penalties. anti-pollution measures. – Art 219 requires a state to take administrative measures to prevent errant vessels from sailing. 4. Ships using flags with a poorer record, PSC inspectors may be more – The only limitation is that the steps taken be reasonable, public, and not inclined to make an issue of routine non-critical deficiencies caused by discriminatory. genuine ‘wear and tear’ during the preceding voyage.
• Most maritime authorities now have more modern, effective and direct powers of port state control inspection: 5. Shipping company and its charterers, may also have general concerns powers of port state control inspection: about the implications for its corporate reputation of being associated – SOLAS, MARPOL, the Loadline Convention, the Registration of Ships and the STCW Convention all give powers (and duties) of inspection to ensure with a poorly performing flag. compliance; and – Most states give themselves extensive powers in relation to prevention of oil pollution. 6. High performing flag states are less likely to tolerate sub-standard operators.
Why flag state performance is important - 2 Flag & Port State Control 7. This small minority of shipping companies enjoys an unfair commercial advantage over the vast majority of fully compliant operators, and damages the overall reputation of the industry. • Increased self-regulation should be its own reward for the shipping industry. 8. A shipping company whose ships comply fully with international standards may still have legitimate reasons for using a flag that has a below average record. • But its main attraction for administrations stems from the perhaps belated realisation that effective control of maritime 9. The state may be the country in which the company is located, there operations today is impossible without industry co-operation. may be implications for the employment of certain nationalities of seafarers, or else the use of particular flags could be determined by the terms of a ship’s charter (e.g. government contracts). • Port state control may be the industry's police force but the role of the police is to catch criminals, not to stop innocent 10. If there is reason to believe, perhaps from analysis of data, that a flag passers-by. has a poor performance, then shipowners may wish to consider carefully whether using such a flag is in the interests of either the company or the industry at large. • If port state control has become a growth industry, it is principally because the historical supervisory role of the flag 11. In co-operation, with national and international shipowners’ associations, state as invigilator of the performance of its fleet can no longer shipowners who have concerns about the performance of particular flags be entirely relied upon. are strongly encouraged to enter into a dialogue with such administrations, and to urge an improvement in their record.
Substandard = Unseaworthy (Ships) Sub-standard Ships The more unscrupulous convenience registers Industry continues to hide its head in the sand take on tonnage which should not put to sea; about ships long past the end of their safe natural working lives. they issue certificates riding on the back of
The shipping industry must get real and face the facts: it previous certificates without adequate or at times too often sacrifices safety to serve economics. any inspection.
Ships are not bottles of wine where they get better with age. But some still say old is not necessarily substandard more seriously, most registers are too quick to issue conditional reservations against class with extensions to manifestly defective vessels, thereby allowing them to put to sea again without repairs.
66 ANNEX 6
Flag State responsibility & Fishing Vessels National Maritime Flag State responsibility and the contribution of recently concluded international instruments in preventing, deterring Legislation (Fiji) and eliminating illegal, unreported and unregulated (IUU) fishing Vessels. • Parliament – Act Marine Act 1986 The only restrictions to the freedom of fishing beyond the then so-called territorial sea were those which flag States negotiated • Minister – Regulations with coastal States or among themselves. Marine Regulations 1990
Under the prevailing jurisdiction of the flag State on the high • Fiji Marine Board - Code seas, only the flag State of the fishing vessel could impose regulations. Surveyor’s Code of Ethics, Examiner’s Guidelines, This meant in many instances no compliance even with regard to agreed restrictions and no effective enforcement. Pilot Examination Guidelines
Enforcement of regulations Reporting systems and (local context) statistics
• Port State Control Reports & Statistics to send to: • Flag State Control • IMO • Ship Surveys • ILO • Audit of Training Providers • Tokyo MOU • Maritime Law Enforcement – • Government – Annual Report Marine Checkers check local ships on arrival and departure • Setting of Maritime Standards
Conclusion The End
Substandard Shipping Thank you for your time – Solution Through Partnership
Responsibility of Government
67 Fiji Shipping Corporation Limited 2/11/2008
ANNEX 7
1. INTRODUCTION (1)
THE RIGHT TO TRANSPORTATION • In the modern world everyone has the right to a SHIPPING SUBSIDY in FIJI reasonable standard of transportation. The Shipping Franchise Scheme • In developed countries, this right is taken for granted – Trucks, Taxis, Buses, Trains, Domestic & International airlines. By Malcolm Harrison, – Transportation is highly developed and cheap because of the Former Chairman of Fiji Shipping Corporation Limited frequency and high volume of traffic. Suva, Fiji. – Highly competitive and self-regulating. • Eg. Cheaper to fly to certain parts of UK than to go by train.
2. INTRODUCTION (2) 3. INTRODUCTION (3)
• In Fiji, out of the 100 inhabited islands, only the main Problems Associated with Outlying Islands islands enjoy reasonable transportation. • Irregular shipping services. – Road transport – Ships only go when there is a commercial load. – Domestic air services – Govt ships only go when taking officials – Shipping & Ferry Services • Shortage of basic supplies. • Low trade and lack of economic activity. • Low standard of living • The small outlying islands are • Population decline as people move to towns – urban drift isolated by ocean and distance • Low population base cannot support economic growth. – The main form of transportation • Unrealised economic potential in: Nayau Island from a distance is by ship. • Tourism • Seafood products – Some have airstrips but infrequent flights subsidised by Govt. • Agricultural products (including copra) – The larger islands have roads but these are not well maintained. • Traditional handicrafts
4. GOVERNMENT’S SOCIAL OBLIGATION 5. GOVERNMENT SHIPPING SERVICES
• It is Government’s social obligation to ensure that all • Govt. has its own shipping fleet • Its primary role is to carry govt. officials to the islands outlying islands have reasonable transportation but : - - Teachers, PWD, Health, Police, Judiciary, Agriculture, Co-op Officers, on an as and when required basis. • How Do You Do IT? • They also carry rural development materials and equipment. • Their Annual Budget is set to cover only official trips. • They are not geared to cater for commercial passengers & cargo • Which Way Do You Do It?
• How Do You Achieve It?
Government ships berthed at Marine Wharf
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7. SHIPPING FRANCHISE SCHEME 6. SHIPPING SUBSIDY – historical background (1) • The concept of a Shipping Franchise Scheme was introduced through the Fiji • It is obvious that if Govt. cannot provide the shipping National Transport Sector Plan in 1994. service, then it must allow commercial shipping to do so. • The NTSP considered several options: 1. Outer Island route licensing 2. Government operation of unprofitable routes • However, commercial ships will only go to viable ports 3. The establishment of outer island feeder services where they can make a profit. 4. Exemption from taxation or the subsidisation of ship operating costs 5. Establishment of co-operative enterprises, and 6. Service franchising • Outlying islands that are not viable will not be serviced by • A thorough study was carried out in 1996 by WD Scott Consultants Pty Ltd funded by ADB under the Transport Sector Institutional Strengthening commercial ships unless they are SUBSIDISED. Project. (ADB TA No 232-Fij) • The shipping franchising scheme was adopted by a Cabinet Resolution in 1996.
8. SHIPPING FRANCHISE SCHEME 9. SHIPPING FRANCHISE SCHEME - historical background (2) - historical background (3) • The SFS was implemented in 1997 with three franchised routes: • A review was done by Meyrick and Associates in 2003 which 1. Rotuma confirmed TPU’s findings and recommended the following: 2. Northern Lau 3. Southern Lau 1. Separation of the administration of the SFS from FIMSA to a And three more were included in 1999 1. Lomaiviti private company (owned by government). 2. Kadavu 3. Yasawa 2. Setting up of a Non-Vessel Operating Shipping Company (Yasayasa Moala was not included as its was deemed viable at that time) (NVOSC) to administer the SFS, under the line contact with • These routes were determined after a survey of all the outer islands by government through the Ministry of Transport the TPU Task Force. (TPU = Transport Planning Unit) 3. Rationalisation of franchise routes - breaking up the Lau Group • Islands of close proximity were grouped together in terms of distance into three for ease of service and inclusion of NE Vanualevu. from Suva with the view of keeping the return round-trip time to less than week. 4. Franchise rates to be based on the size of the ship and matching • Only selected ports with good anchorage and central to surrounding the size of the ship with the volume and trade offered by the villages are chosen as ‘franchise ports.’ route. • The SFS was initially administered by FIMSA (Fiji Islands Maritime Safety Authority)
10. FIJI SHIPPING CORPORATION LIMITED (1) 11. FIJI SHIPPING CORPORATION LIMITED (2) • FSCL was established under the Companies Act on 10th March 2004, after the review of the Shipping Franchise The Objectives of FSCL are: Scheme by Meyrick & Associates. 1. To provide regular and safe shipping services to uneconomical ports in the Maritime Provinces. • FSCL is controlled by an independent Board of Directors, who must be from the private sector, and are 2. To improve the quality and standards of ships that appointed by the Minister for Transport for three year service the outlying islands. terms. – To maintain its independence from political and government 3. To develop and encourage trade and economic influence. activities in the islands. – To avoid conflict of interest of being a service provider and regulator (as was the case with FIMSA) 4. To improve viability of the shipping services to such – To run as a commercial organisation. an extent that the subsidy would be unnecessary in the long term,
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12 FIJI SHIPPING CORPORATION LIMITED (3) 13. Operational Policies – Franchise Service - Organization Structure
• Two Operators per Route – two services per month – to encourage competition and Cabinet – give the people choice. – To provide different types of ships to cover all ports.
Minister for Tourism & Transport • Schedules to be Fixed and Publicised – Ships schedules to be two weeks apart – The operators to publicise the schedule. Board of Directors • Penalty for Poor Service – Failure to meet contract conditions will result in reduced payments. Chief Executive Officer – Failure to sail on two consecutive scheduled services will result in termination.
Accounts Officer/ Trade Development • Statistical Data Collection Company Secretary Officer – Voyage reports must provide statistics on revenue and costs as specified in the contract. Receptionist/ Accounts Clerk
14. Operational Policies – Franchise Rates 15. Trade Development Officer A key component of the SFS strategy is the work of the • Franchise Subsidy is based on 42% of the calculated Operational Trade Development Officer (TDO) as follows: Cost for each route. • To promote economic activities in the islands • The Operational Costs are determined by the following: 1. Distance traveled and number of days for the round trip • To identify investment opportunities in the islands and 2. Fuel consumption at full steam and idling at ports investigate markets for products 3. Manning and maintenance costs 4. Port charges and Statutory fees • To monitor development projects in the islands in 5. Food and Ration costs consultation with other development stakeholders; 6. Marine Services charges Agriculture, Agro Marketing, Copra Millers, Provincial Councils • All revenue collected is kept by the franchise operator. • To promote the work of the SFS in the islands.
16. FRANCHISE OPERATORS (1) 17. FRANCHISE OPERATORS (2)
Local Ships The only ships available are below the standards required.
MV Sandy of Seaview Shipping The ill-fated MV Bulouniceva was built in China for 23 yrs old ex-Korean long line fishing boat Kadavu Shipping in 1993. It is now aground in Oinafa, Rotuma. MV Cagimaiba of Western Shipping MV Tunatuki of Salia Basaga Shipping 22 yrs old Japanese-built ro-ro ferry. 34 yrs old ex-Japanese long line fishing boat
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19. Franchise Routes & Operators in 2006 18. FRANCHISE OPERATORS (3)
– Many local shipping companies are poorly managed FRANCHISE ROUTES OPERATORS NAME OF SHIP NATURE OF CONTRACT – Some do not have audited accounts Northern Lau Western Shipping MV Cagi mai Ba Contracted Salia Basaga MV Tunatuki Contracted – We were unable attract any new operators Upper Southern Lau Western Shipping MV Cagi mai Ba Contracted Salia Basaga MV Tunatuki Contracted Lower Southern Lau Seaview Shipping MV Sandy Contracted Seaview Shipping MV Sandy Temporary (Discontinued in 2007) Yasayasa Moala Western Shipping MV Cagi mai Ba Temporary (Discontinued in 2007) Salia Basaga MV Tunatuki Temporary Kadavu - Babaceva Seaview Shipping MV Sandy Contracted Kadavu Shipping MV Bulou ni Ceva Contracted (Terminated, Aug. 2006) Lomaiviti (Gau/Nairai/Batiki) Patterson Brothers MV Island Navigator Contracted Seaview Shipping MV Sandy Temporary (Discontinued in 2007) Rotuma Western Shipping MV Cagi mai Ba Contracted Kadavu Shipping MV Bulou ni Ceva Contracted (Terminated, Aug. 2006) Some small ships, too small to be used Yasawa / Malolo Western Shipping MLC Bawaqa Contracted in the Shipping Franchise Scheme. Make-shift shipping offices at Narain Wharf, Suva.
Note: Temporary contracts were discontinued in 2007 due to reduction in Govt. funding.
20. Franchise Statistics – Passengers & Cargo 21. Franchise Statistics – Passengers & Cargo January – December 2006 January – June 2007
FRANCHISE ROUTE Passengers Cargo (Rev Tonnes) FRANCHISE ROUTE PASSENGERS CARGO (Rev. Tonnes) Out In Total Out In Total Out In Total Out In Total Northern Lau 1,552 1,125 2,677 894 830 1,724 Northern Lau 712 403 1,115 718 937 1,655 Upper Southern Lau 1,243 1,008 2,251 627 779 1,406 Lower Southern Lau 715 597 1,312 643 381 1,024 Upper Southern Lau 393 261 654 294 316 610 Yasayasa Moala* 865 430 1,295 279 219 498 Lower Southern Lau 226 118 344 243 103 346
Kadavu - Babaceva 694 251 945 640 232 872 Yasayasa Moala* 399 324 724 172 232 404
Lomaiviti 1,215 938 2,153 611 269 880 Kadavu - Babaceva 67 47 114 182 72 254 Rotuma** 1,308 675 1,983 819 653 1,472 Lomaiviti 422 499 921 121 46 167 Yasawa Malolo** 1,200 493 1,693 682 84 766 Rotuma** 491 377 868 689 475 1,165 TOTAL 8,792 5,517 14,309 5,195 3,447 8,642 Yasawa Malolo** 419 73 492 430 14 444 Note: * Yasayasa Moala franchise started in July 2006 TOTAL 3,129 2,848 5,232 2,102 2,195 4,297 ** Only one trip per month to Rotuma and Yasawa - Malolo
22. Progress of the Shipping Franchise Scheme 23. Conclusion Is the Scheme working? • Provision of shipping services to remote communities is part of Government’s social obligation. • The Scheme is working to the extent that regular shipping services are being provided to most of the franchise routes. i.e. one or two trips per • Subsidies are provided NOT to reduce prices (fares/freight) but to month, depending on govt. funding. make uneconomical routes commercially viable so ships are enticed • On the other hand, it does not comply completely with Government policy to service these routes. Commercial shipping operators would not due to the following reasons: otherwise service these routes.
There are not enough ships available • Improved services means increased costs. Government should Poor quality of available ships assist ship owners to invest in new and better ships Poor management of shipping companies
High expectations of islanders/reluctance to pay • Success of the Scheme relies on operators to provide better service, on government to provide the financial assistance, and on the Contracted companies rely on the franchise subsidy to keep afloat communities to increase trade and economic activities. Subsidies are based on 42% of operational cost, not on total cost, and this is not sufficient to entice suitable operators. • The long term aim of the SFS is to eventually phase out as the shipping routes become viable to support private shipping services.
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ANNEX 7
VINAKA VAKALEVU
THANK YOU
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5 ANNEX 8
Why is it appropriate to Corporatise CORPORATISATION Government Shipping Services?
What are the common issues affecting OF GOVERNMENT the Shipping Industry which we feel SHIPPING Corporatisation is the best option?
SERVICES What will be the advantages and by Papalii M Willie Nansen disadvantages of Corporatisation of MANAGING DIRECTOR/CEO Samoa Shipping Corporation Limited Government Shipping Services?
Why is it appropriate to Corporatise Common issues in corporatised Government Shipping Services shipping organisations
Primary aims must be for efficiency and Ability to make relationships with other commercial freedom operators for balanced services
Not conducive to governance by political Ability to trade & operate freely without appointees encumbrance Should operate accounting functions in Ability to work freely with financiers totally open environment Ability in pricing of services to cover the Main role of Government as ‘owner’ is to true cost of service delivery underwrite the operations
Advantages & Disadvantages Case Study: of Corporatisation Samoa Shipping Corporation Limited
For – management flexibility – speedy decision making –planning free of political Mandate mood changes – working to a true bottom Profile line – technical innovation Corporate Objectives
Against – lack of understanding by Organisational Structure appointed directors – pressure for providing Vessels in our fleet political (loss-making) routes – unaffordable charges due to cost recovery Services we provide and vessel replacement –possible reduction in ability to attract Aid injections
73 ANNEX 8
Case Study: Case Study: Samoa Shipping Corporation Limited Samoa Shipping Corporation Limited
Profile – Highlights Mandate
The purchasing of 50% shareholding of Samoa Shipping Services SSC is a State-Owned Entity established by the Limited in 1995 until the Company restructures in 2006. Government of Samoa under the Companies Act The purchasing of 100% shareholding of Bruggers Industries 1955 (New Zealand) and in accordance with the (Samoa) Ltd in 2000 to set up a new venture in Engineering provisions of the Samoa Ordinance 1935. SSC Services for commercial purposes for the general public. adopted and comply with the Public Finance The Document of Compliance Certificate issued by Lloyds Register of Shipping in 1998 renewed in 2004 certifying the Corporation’s Management Act 2001 and the Public Bodies compliance with the requirements of the International Safety (Performance & Accountability) Act 2001. SSC’s main Management (ISM) Code recognizes the true indication of the Corporation’s commitment to comply with all the mandatory activity is to operate a passenger and vehicular ferry requirements nationally and internationally. service in Samoa and neighboring islands of the The payment of $1m total dividend to Government in 2005 & 2006 pacific. in compliance with the provisions of the Public Bodies Act
Case Study: Case Study: Samoa Shipping Corporation Limited Samoa Shipping Corporation Limited Organisational Structure Our Corporate Objectives BOARD OF DIRECTORS
MANAGING Profitability DIRECTOR/ CEO Market Share ACEO ACEO ACEO ACEO CORPORATE OPERATIONS MARITIME ENGINEERING Customer Loyalty SERVICES
Safety PRINCIPAL PRICIPAL PRINCIPAL PRINCIPAL FINANCE & ADMIN OPERATIONS MARITIME ENGINEERING OFFICER OFFICER OFFICER OFFICER Compliance
HEAD TERMINALS VESSELS & WORKSHOPS Employee Commitment OFFICE SHORE MARITIME ENGINEERING STAFF STAFF STAFF STAFF
Case Study: Samoa Shipping Corporation Limited Case Study: Samoa Shipping Corporation Limited Vessels in our fleet VESSEL NAME MV Lady Samoa II MV Lady Naomi MV Samoa Express MV Fotu-O-Samoa II Services we offer TYPE Passenger Vehicular Passenger Cargo Barge Bow Cargo Barge Bow Ramp Ferry Vehicular Ferry Ramp LCU LCU CLASSIFICATION Lloyds Register Lloyds Register Lloyds Register Lloyds Register Domestic Ferry Services
BUILT Japan 1988 Japan 1998 Malaysia 1995 Malaysia 1998 Inter-Island Ferry Services
LOA 39 m 42 m 38 m 36 m Charter Services 11.5 m 11.4 m 9.8 m 10 m BEAM Commercial Engineering Services DRAUGHT 3.9 m 3.8 m 2.7 m 3.2 m Mail Courier Services TONNAGE 993 GT/ 261 NT 998 GT / 298 NT 340 GT / 130 NT 299 GT / 124 NT Cargo Service MANNING Captain +13 Crew Captain +15 Crew Captain +11 Crew Captain +11 Crew Customs Brokering Services SPEED 11 knots 12 knots 9 knots 9 knots PASSENGERS 480 persons 220 persons 110 persons 60 persons Day Cruise Operations (soon to be launch)
74 ANNEX 8
What is the Impact of Corporatisation on Substandard Shipping What is a substandard ship?
What is a substandard ship? “a substandard ship” is regarded as a vessel that, through its physical condition, its operation or What are the costs associated with substandard shipping? the activities of its crew, fails to meet basic standards of seaworthiness and thereby poses a What is the impact of corporatisation on threat to life and/or the environment. This would substandard shipping? be evidence by the failure of the vessel to meet Will corporatisation improve the quality regulations contained in international maritime and standard of ships as well as the conventions to the extent that it would be service delivery? considered unfit to sail by a reasonable flag state or port state inspection.”
Impact of Corporatisation on sub-standard shipping Recommendation
Perception from classification societies, Corporatisation is the way forward, how can we port state and flag state anticipates that accomplish this? owner has a will to comply Flag State to identify and deal with substandard ships; Insurers and Financial Institution will support efficient and compliant Port State should be effective in identifying organisations who have a bottom line to substandard ships; Classification Societies should ensure that their own achieve standards are maintained effectively and with great Quality standards of ships and reliability diligence. will improve and attract more customers Government as regulator to stipulate and monitor the fair cost of transportation. Guarantees of service delivery matched with practice of same achieves improved income and cash flow
End of Presentation
QUESTIONS ????
75 ANNEX 9
What is a Safety Management System Safety Management Systems
A Safety Management System – Addresses the responsibilities of the people Captain John Hogan who manage and operate ships Regional Maritime Programme Manager – Provides a standard for the safe management Secretariat of the Pacific Community and operation of ships and for pollution prevention Suva, Fiji
What is a Safety Management What is the ISM Code? System? Application of an SMS should support and The ISM Code establishes safety management objectives encourage the development of a safety It requires a Safety Management System (SMS) to be established by “the Company” culture in shipping “The Company” is the ship-owner or any person who has Success factors for development of a safety assumed responsibility for operating the ship culture include: The Company is required to establish and implement a policy for achieving safety management objectives – Commitment This includes providing the necessary resources and shore-based support – Values ISM/SSM/SOP all form part of the Safe Ship Management – Beliefs Regulations
What must a SOLAS party do to What must a ship-owner do to comply? comply? Administrations should ensure effective The ISM Code requires every company to be issued with a enforcement of the ISM Code, including: Document of Compliance (DOC) to show that it is compliant (company specific) – verification that ship-owners’ SMS comply with the requirements as stipulated in the ISM Code The DOC is issued for a period of five years subject to an annual verification audit – as verification of compliance with mandatory rules and regulations The DOC must be carried on board the ship. The ISM Code also requires every ship to be issued with a Administrations should refer to IMO Assembly Safety Management Certificate (SMC) (ship specific) resolution A.788(19) The SMC verifies that the company and its shipboard “Guidelines on implementation of the ISM Code management operate in accordance with the approved by Administrations” SMS
76 ANNEX 9
What do I have to do to get these How do I get a DOC and SMC certificates? The document of compliance is issued by: The Company must develop, implement and maintain a SMS which includes: – the Administration (Flag State) – a safety and environmental protection policy – an organisation recognised by the – instructions and procedures to ensure safe operation of ships and protection of the environment in compliance with international and Administration Flag State legislation – or by another Contracting Government to – defined levels of authority and lines of communication between shore and shipboard personnel SOLAS at the request of the Administration – procedures for reporting accidents and non-conformities with the The SMC is issued to every ship by the provisions of the Safe Ship Management legislation Administration or a recognised organisation – procedures to prepare for and respond to emergency situations – procedures for internal audits and management reviews
What do I have to do to get these How long does it take to get certificates? ISM/SSM/SOP certification? There must be documentation on board the ship Administrations should be approached now which outlines the procedures and policies The company must show the Administration that Companies who already have an the policies and procedures are being established safety management procedure implemented in a practical way in order to gain a DOC and SMC should not have too much difficulty Many ship companies already have SMS in place But plenty of time should be allowed to The implementation of the Safe Ship Management complete paperwork legislation ensures that ALL companies have SMS in place
What are the benefits of What are the benefits of ISM/SSM/SOP compliance? ISM/SSM/SOP compliance? Ensures that a company has safety and environmental pollution risks under control Vessel is safe on an every day basis, not A proper SMS should: – ensure that international standards are complied with just on survey day – help prevent accidents occurring – ensure procedures are in place for dealing with shipboard emergencies Less mechanical breakdowns – cost savings – ensure adequate communication between ship and shore – ensure all individuals: know their role and responsibilities Easier access to insurance are adequately trained have the appropriate resources to do their job – ensure that all activities and operations are: planned controlled verified
77 ANNEX 9
Flag State Inspection Example of a flag state inspection report
MSC Circ890 Interim Guidelines for Port ISM certification on board? State Control Related to the ISM code Is Safety Management documentation (e.g. manual) readily available on board? Advises that “PSC Officers should not normally scrutinize the contents of any Non Conformity Note resulting from Is relevant documentation on the SMS in a working internal audits” – can be adopted by flag state inspection language or language understood by the ship’s personnel? Inspect selected items in respect of ISM Implementation Can senior officers identify the Company responsible for the operation of the ship and does this correspond with the entity of the ISM certificates?
Example of a flag state inspection report ISM : at the sharp end cont. General
Can senior officers identify the “designated person”? All non-statutory ( and shipboard produced) notices and schematic diagrams signed and dated by the master or chief engineer. Are procedures in place for establishing and maintaining Are procedures in place for establishing and maintaining All documentation, fire plans, ship’s plans etc. showed the correct contact with shore management in an emergency? ship’s name. (This is particularly important if the ship has been purchased from previous owners). Are programmes for drills and exercises to prepare for emergency actions available on board? All safety management system documentation is current. All old editions have been removed from the system. Does the ship have a maintenance routine and are records Ensure safety committee meetings are up to date and objective available? evidence that any outstanding points are being actioned by shore management. Check that the various log book, deck and engine entries required by the system are being completed.
ISM : at the sharp end ISM : at the sharp end General cont. Captain Check that the records for the maintenance and service by ship’s personnel of the fire fighting and life saving appliances are Describe the company’s drug and alcohol policy. completed and available. All officers and ratings’ certificates checked. Ensure that, as per clause 5.1.5. of the Code, the master is reviewing the system and reporting any deficiencies to the What training is undertaken? company What is the company’s policy towards training? Ensure a random selection of crew members including ordinary seamen and second cooks are aware of their emergency stations, What training is given to new joiners? the emergency and drill signals and the company’s safety policy. What is the frequency of company safety audits ? Ensure that the master copy of the safety management system, What is the frequency of company safety audits ? statutory instruments, merchant shipping notices and flag state Show me the last audit reports. notices have been read and the signature page duly signed by all incumbent officers.
78 ANNEX 9
ISM : at the sharp end ISM : at the sharp end Chief Engineer Chief Officer How do you calibrate your gas monitor and where do you Planned maintenance system of the ship. MSS sheets, keep record of this calibration? planned maintenance codes, manuals; hourly, weekly, monthly checks ,office printout of due items for the What is the deck maintenance and greasing schedule? attention of the chief engineers. How do you carry out ballasting/de ballasting operations C/E’s night order book; standing instructions to e/r staff, and where do you keep records? signature of all engineering officers signing the book. What procedures do you follow before entering any tank C/E’s handover/takeover form system in use, and included for inspection? in the form. How often do you inspect DB/TST and EW tanks? Bunker checklist and bunkering procedures. How do you check your vessel is watertight before Amendments on any notices to be signed by chief proceeding to sea and where so you keep a record? engineer. Before heavy weather, what checks do you do?
ISM : at the sharp end Cook
What do you do with used spoiled oil from the deep fryer? What chemical do you use in the gallery for cleaning? How do you clean galley filters? What do you do with all the plastic? How many fire blankets do you have? Who checks them? How many times does he check? As soon as the ship sails, do you throw waste food or cardboard boxes overboard?
79 ANNEX 10
1
SEMINAR ON SUBSTANDARD SHIPPING IN THE PACIFIC ISLAND COUNTRIES: A CASE STUDY ON PAPUA NEW GUINEA BY NMSA.
TOPIC:SUITABLE DOMESTIC REGULATIONS
PRESENTED BY MR. JOSEPH PYAWAN
LEGAL OFFICER
NATIONAL MARITIME SAFETY AUTHORITY: PNG
Introduction
The expression “substandard ship” raises several questions. What exactly are minimum standards? How can a ship that fails to meet these requirements be identified? Is there is a topology of substandard ships? Can the scale of the phenomenon worldwide be assessed? What can individual Pacific Island countries do in their own maritime safety administrations to minimise substandard shipping and improve the standard of shipping.
This paper will concentrate on what the National Maritime Safety Authority of Papua New Guinea is doing to minimise substandard shipping in Papua New Guinea.
Creation of the National Maritime Safety Authority.
Under the colonial administration and after independence, maritime safety administration in Papua New Guinea came under the Department of Transport and Civil Aviation, Maritime Division. The Department was so huge, looking after air, land and sea transport. As a result, the maritime division was not given much priority by successive governments resulting in deterioration of the standards of shipping and nearly all of the marine navigational aids being out of service. The government of Papua New Guinea upon seeing the deteriorating conditions and the standard of shipping in the country set up the National Maritime Safety Authority under the National Maritime Safety Authority Act 2003. Under the Act, all the maritime safety functions formally administered by the Department of Transport, Maritime Division has been transferred to the authority. The authority is a not-for-profit, self – funding organisation. The authority raises its revenue under three levy regulations. The following are the said levy regulations;
1. National Maritime Safety (Regulatory Functions Levy) Regulation 2007. 2. Merchant Shipping (Navigational Aids Levy) Regulation 2007. 3. Protection of the Sea (Shipping Levy) Regulation.
The first two Regulations are in force and the authority is imposing the levies on ships registered under the PNG Registry and foreign flagged vessels coming into PNG on per call basis. The levies collected will be used to maintain navigational aids installations, contain oil spills, conduct search and rescue and to do flag state and port state control
80 ANNEX 10
2 inspections. When the third regulation comes into force, the authority will have enough money to carry out its statutory functions. The authority will also have enough money to send delegates to nearly all international maritime workshops/conferences so that its staff are fully aware of the changing circumstances of the world maritime industry. The funds can also be better utilised for the funding for training of further training for its staff.
Merchant Shipping Act and the Criminal Code Act
The Merchant Shipping Act is the law that regulates the shipping industry in PNG. There are also various subsequent regulations made from this main law. The Merchant Shipping Law is the law that implements the IMO Conventions. Section 94,95 and 96 empowers the National Maritime Safety Authority to detain sub-standard ships from operating in PNG waters. It is also a criminal offence to take an unseaworthy ship to sea under the Criminal Code Act in PNG. In the past, the Department of Transport has never enforced this provision of the Code. The National Maritime Safety Authority is starting to do this. The first vessel (MV.Hard Yakka’s) captain and the shipping manager were arrested under this provision for taking an unseaworthy ship to sea. Both are behind bar. It was an eye opener to the shipping community in PNG.Under Section 96 of the Merchant Shipping Act; the authority has the power to detain substandard ships from operating in the country. So far NMSA has detained the following ships under this provision: MV.Sankamap, MV. Manus, MV. Triton, MV. Well Rich and MV.Orion.
New Legislations and amendments of existing Legislations undertaken by the Authority.
The Asian Development Bank is funding the Maritime Legislation Review Project. Under the project, the marine consultants engaged by the authority were instructed to draft new regulations under the Merchant Shipping Act, incorporating all the amendments and the new IMO and ILO conventions. Under Phase I of the project, a total of 24 new regulations were drafted including amendments to existing regulations. Already 12 out of the 24 regulations are in force now in the country as law. The other 12 will be pushed through the system after the formation of the next government. All these 24 regulations are safety regulations. In Phase II, we will be drafting two new bills (Marine Pollution Prevention Bill and Marine Pollution Liability and Compensation Bill) and 18 subsequent regulations. After the completion of the said phase we will move on to Phase III. Under this phase, we will be looking at amending some provisions of the Merchant Shipping Act. After all the new regulations, bills and the amendments are in force, Papua New Guinea will have one of the most modern and internationally recognised maritime legislation in the world incorporating all the new ILO and IMO conventions and amendments to existing ILO and IMO conventions. PNG will par with well established maritime safety administrations in the world.
The following are the safety regulations which are now in force in the country:-
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a) Merchant Shipping (Ship Registration) Regulation 2007. b) Merchant Shipping (Pilotage) Regulation 2007. c) Merchant Shipping (Prevention of Collisions) Regulation 2007. d) Merchant Shipping (Dangerous Goods) Regulation 2007. e) Merchant Shipping (Safe Containers) Regulation 2007. f) Merchant Shipping (Deck Cargoes) Regulation 2007. g) Merchant Shipping (Tonnage Measurement) Regulation 2007. h) Merchant Shipping (Load Lines) Regulation 2007.
The most relevant regulation relating to eliminating sub-standard vessels being brought into the country to register under the PNG Ships Registry is the Merchant Shipping ( Ship Registration Regulation 2007). Before a ship is registered, the regulation provides for all safety requirements. The shipowner must produce all necessary certificates issued by a Recognised Organisation on behalf of the authority before the ship is registered if the ship is above 500GRT. If the ship is below, 500GRT, it must be surveyed by an non- exclusive surveyor.
Gazettal of non-exclusive and exclusive surveyors by the National Maritime Safety Authority.
1. Recognised Organisations
To minimise substandard vessels of over 500GRT from being brought into the country, the authority has gazetted and recognised the functions of the following organisations who are members of IACS. As we are aware, the decision as to what organizations should be appointed as recognised organisations to undertake statutory surveys for vessels coming under the SOLAS and MARPOL Conventions must be based on the Guidelines laid down by the IMO in Assembly Resolution A 739 (19).Shipowners/agents with vessels below 500GRT have the choice of using the gazetted and recognised IACS members or they can use the services of non-exclusive surveyors Following are the ROs who are members of the IACS appointed and gazetted by the authority in accordance with the said IMO Resolution:-
a) American Bureau of Shipping (ABS) b) Bureau Veritas (BV) c) China Classification Society (CCS) d) Det Norske Veritas (DNV) e) Germanischer Lloyd (GL) f) Korean Register of Shipping (KR) g) Lloyd’s Register of Shipping (LR) h) Nippon Kaiji Kyokai ( NKK) i) Russian Maritime Register of Shipping (RMRS).
2. Following persons or persons in the organisations were appointed and gazetted by the Authority to be non-exclusive surveyors for flag vessels less than 500 GRT:-
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a) PNG Maritime College i) Aziz Adebayo ii) Delaik Vakasilimi
b) Shear Force Marine Len Michaels
c) Manton Group Gabriel Mayagari
d) Ocean Register of Shipping, Cebu Philippines Optaciano S. Boo
e) Henderson International, Manila Philippines Paul C. Thomas
f) Pacifica Marine John Bennett
g) Island Marine Services Kolowan Daniel
h) Russ Larkins Associates Ltd, Cairns Australia Russ Larkins
i) Arthur William Muir
j) Capt. Graham Proud
The Authority employs six full time ship surveyors (3 engineers and 3 nautical), who are responsible for the conducting of Flag State and Port State Control Inspections. Other surveyors are appointed and gazetted to survey wooden vessels and vessels below 24 meters. The Authority has also appointed and gazetted ships’ radio surveyors with the Papua New Guinea Telecommunication Authority (PANGTEL) to conduct radio surveys on behalf of the Authority. All these appointments and gazettal are done to minimise substandard shipping and improve the standard of shipping in the country. Only those recognised individual ship surveyors and organisations will do statutory survey inspections of ships on behalf of the Authority. The Authority will review their appointments annually to see whether or not they are performing to the standards required by the Authority. In this way, the Authority will have control over their conducts.
Fishing Vessels
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In PNG, the National Fisheries Authority is the authority that regulates the fishing industry in the country. It issues licences to the fishing boats to fish in the country. The National Quarantine Authority is concerned about the fish itself and other food stuff. They have no jurisdiction over the standard of the ship itself. In the past, it has been a big problem where most of the fishing boats operating in the country were sub-standard vessels. Since the establishment of the National Maritime Safety Authority is slowing moving into to ascertain the standard of the fishing boat. NMSA is in the process of prosecuting some fishing boat owners for operating sub-standard vessels. NMSA and the National Fisheries Authority have agreed that, before the later issue that fishing licence, the boat must produce a safety certificate issued by the authority. This will be a perquisite to issuing a fishing licence in the country. By doing so, the standard of the fishing boats will be lifted to a higher standard. Other Pacific Island Countries should also follow the PNG direction.
Records of accidents and incidents in the past three years in Papua New Guinea
MV. Hiri
This is a 22 meter wooden boat. It was purchased in the Philippines. It was brought into the country without the knowledge of the Authority. The vessel had numerous defects. The owners took the vessel to another province (Milne Bay Province) and were operating it. The authority took a restraining order from the Court and stopped its operations. The owners rectified some of the defects and the Authority issued them the certificate to carry cargo only. After a month of operation, the vessel sunk in June 2007.There was no casualties. Reports have reached the Authority that the vessel at the time of the incident was carrying cargo and passengers, which was a breach of the court order. At the moment the Authority is preparing court documents to prosecute the owners for Contempt of Court.
MV. Sealack
This vessel is a passenger vessel. It caught fire at the yard while undergoing repairs in March 2006. It is said that the fire was ignited by a welding machine being used at the time. The vessel was allowed to be sunk at the busy Lae International Wharf. An investigation was being conducted and a report was submitted to the Minister for Transport. Nothing as yet come out of the investigation.. Some of the workmen board the vessel sustained serious injuries.
MV.Amus
It vessel is also a wooden vessel. It is a 22 meter vessel and has the same feature of MV. Hiri.The owners escaped from the Authority like the MV.Hiri and were operating in the
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Milne Bay Province. On its first voyage the vessel sank off the coast of Alotau on the 14th of December 2005. No investigation was conducted.
MV. Morima Trader
This vessel is believed to have headed for Rabaul from Lae after loading cargo at the Lae wharf in 2001. When the vessel was somewhere around Fishafffan in the Morobe Province, it started listing and it could not correct it. As a result the vessel overturned. A preliminary investigation was conducted, nothing eventuated after that. No was no casualty.
Prior to the establishment of the National Maritime Safety Authority, the Department of Transport has been administering the maritime transport sector. They were doing more service functions by conducting surveys. They had no sufficient funds to do marine accidents and incidents investigations and prosecutions. The regulatory functions were overlooked. Therefore, the maritime regulations were never being implemented. The National Maritime Safety Authority, since its establishment decided to out source the service (survey of ships) functions performed by the Department of Transport to non- exclusive surveyors and Recognised Organisations. It is now focused on its regulatory functions through Port State Control and Flag State Control Inspections. In this way, substandard shipping in the country will be gradually minimised. Furthermore, as a signatory to the Tokyo MOU, Papua New Guinea is discouraged from taking in vessels which are 30 years old. PNG has taken necessary steeps to stop vessels which are 30 years old from being brought into the country. In order to bring any ship into the country, the ship has to be classed by one of the Recognised Organisations. As a policy, all vessels over 500GRT must be classed.
Ships registered under the PNG Ship Registry.
There a total of 444 ships now being registered under the PNG Ships Registry. Most of these ships are fishing boats. The list is attached to the back to this paper.
The role of the Pacific Island countries as flag State.
Any Pacific Island country that signs or ratifies an IMO or ILO convention should apply it to and enforce it on all the ships it has under its Registry. To ensure that ships meet and then subsequently maintain convention and other statutory standards, a flag State needs to have in place arrangements to initially verify the conditions of ships to check that they can be safely certificated, and means to periodically re-inspect and re-certify those ships. This responsibility applies regardless of whether a flag State carries out its surveys and inspections using its own people or authorises a Recognised Organisation (RO) to undertake work and issue statutory certificates on its behalf, such as PNG as done. A flag State should investigate casualties and detentions and monitor the work of any RO that acts on its behalf. A flag State has the right to de-register any ship that fails to meet and maintain convention and domestic regulation standards.
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A Pacific Island State may enact its own domestic laws and impose additional national rules and regulations on foreign ships entering its waters. For example, the United States has enacted the Oil Pollution Act 1990 ( OPA 90) and European Union (EU) Directive 95/12EC places a legal requirement on all EU member States to carry out port State control inspections. Ships may therefore have to comply with additional domestic law.
Tokyo Memorandum of Understanding (Tokyo MOU)
The main objective of the above MOU is to establish an effective Port State Control regime in the Asia – Pacific region through co-operation of its members and harmonisation of their activities, to eliminate substandard shipping so as to promote maritime safety, to protect the marine environment and to safeguard working and living conditions on board ships. Currently the MOU has 18 members, in which only Papua New Guinea, Fiji and Vanuatu are full time members and Solomon Islands has an observer’s status among the Pacific Island countries. It would be very important for all Pacific Island countries to be either permanent members or have observers’ status and attend to its Port State Control meetings. By doing so, the PIC will have vital information on the ships that are operating in the region, whether they are fishing boats or general cargo ships. Teaming up with advanced maritime administrations in the region would, in the long run gradually minimise substandard shipping in the region.
Conclusion
The National Maritime Safety Authority came into existence on the 5th of December 2005. Within the sort period of time NMSA has done so much to minimise substandard shipping in the country. After 5 – 10 years time the authority will eliminate substandard shipping in the country.
All PIC should learn from PNG and start adopting IMO Conventions into domestic legislations and start implementing them to minimise substandard shipping in the region.
The respective governments in the region should by now set up separate maritime authorities and give priority to the industry because roughly 97% of the volume of trade in the region is done through shipping.
Those regulations should have penalty provisions to penalise people who are operating substandard ships in the region. There should be qualified ship surveyors and maritime lawyers to fully implement those regulations to minimise and finally eliminate substandard shipping in the region.
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Paper presented by Hon. Mr. Justice Devendra Pathik OF CSM JP BA LL.B at the Seminar on Substandard Shipping in the Pacific Islands Region at Tradewinds Hotel, Suva Fiji, 13 - 17 August 2007
The Regional Maritime Programme Manager - Captain John Patrick Hogan The Participants
A very good afternoon to you all.
First of all I would like to thank Captain John Patrick Hogan, the Maritime Programme Manager and Mr. Tufuga Fagaloa Tufuga, Regional Maritime Legal Adviser both of the Secretariat of the Pacific Community for the invitation extended to me to present a paper at this Seminar on Substandard Shipping in the Pacific Islands Region.
The subject of my Paper as given to me is “Penalties: Case Study of MV Ovalau II.”
Why I have been chosen to speak to you may be because as a High Court Judge over the years it had fallen on me to conduct a number of important Marine Inquiries since 1991 under the Marine Act 1986 (hereafter referred to as the ‘Act’).
Marine Inquiries
I shall now deal with the subject of my Paper which is confined to ‘Penalties: Case Study of M V Ovalau II’.
From my own experience of the few major inquiries I conducted with assessors, you will get a clear picture of the ‘Findings’, ‘Recommendations’ made and ‘Penalties’ imposed under the provisions of the Act and Regulations made thereunder as amended from time to time.
As a background I shall briefly outline the salient features of the three Marine Inquiries which I conducted. They are as hereunder:
(a) Marine Inquiry into the sinking of the ‘MV Polynesian Link’ at Kings Wharf, Suva on 12 October 1991
The casualty occurred whilst the vessel MV Polynesian Link was at its final stages of loading alongside Central Kings Wharf in Suva on the night of 12 October 1991.
The vessel arrived in Suva at 2000 hours on Friday 11 October 1991 from Lautoka and Stevedore labour was ordered for the midnight shift to commence discharge.
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At approximately 2115 hours while lifting the third last container by the ship’s own crane No. 2, the vessel suddenly heeled over to port. The vessel was tied up port side to King’s Wharf. It continued to list further until she capsized at approximately 2202 hours.
The Master’s and Chief Officer’s attempt to free the vessel’s moorings was too late.
No member or the crew was injured.
The proximate cause of the capsize was the attempted lift of a heavy container from the wharf, at a time when the vessel had little or no residual stability.
I visited the scene at the wharf during the course of the Inquiry and found ‘containers’ and ‘tins of fish’ floating. This was a ‘container’ vessel.
I commented on the Certificate of Competency of the Master, and also commented on negligence on the part of Chief Officer on his most casual approach to the calculation of the ‘vessel’s stability’. He was severely censured by the Inquiry.
In Appendix ‘A’ (attached) is the ‘Marine Inquiry’s Order as to Certificate of Competency’ and ‘Recommendation’. There was no monetary fine but suggestions were made for legislative amendment.
(b) Marine Inquiry into a casualty, namely the Loss of “F.V. Wasawasa I” on or about 7 March 1997.
The “FV Wasawasa I” was a fishing vessel. When the vessel set sail the weather was not adverse for fishing purposes. Subsequently, she came in the path of Cyclone Gavin after which she then disappeared along with her whole crew of ten.
The disappearance of the vessel and its crew is indeed a complete mystery and I am unable to say whether it will ever be solved unless of course in time to come in the unlikely event some crew member may have got on to a land mass and is surviving somehow and living to tell the story of this tragedy.
It has come as the most logical conclusion therefore that the crew went down with the vessel to the bottom of the sea and died due to drowning.
The “circumstances surrounding the casualty”, “Recommendations” and “Penalties” imposed are contained in Appendix ‘B” (attached).
An important recommendation was that consideration be given to the inadequacy of the pecuniary penalty provisions contained in the Act. For example, I said that the fine incurred as a result of taking an unsafe vessel to sea pursuant to section 84(2) of the Act is $2000.00. Then I said that where human life is endangered, and as in this instance where lives lost, the penalty appears not to be sufficient for the offence committed. There is need
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3 for legislative amendments imposing more severe penalties for offences committed under the Act.
By Maritime (Amendment) Act 18 of 1999 (of 8 March 1999) there were major amendment to Penalties. See Appendix ‘C’ (attached) regarding amended penalties.
(c) Marine Inquiry into a casualty, namely, the sinking of “MV Ovalau II” at the Inner Western Edge off Nananu-i-Ra Passage on 23 August 2003
The vessel MV Ovalau II sank at the Inner Western Edge Off Nananu-i-Ra Passage on 23 August 2003.
I state below the circumstances surrounding the casualty.
According to the Report and the evidence a major breach (hole) which was a ‘half moon shaped’ hole approximately 125 mm v 20 mm on the starboard side of the engine room, half a metre from the centreline occurred. This was a crucial breach of the hull and that was the main source for the inflow of water into the vessel’s engine room. The evidence reveals that this hole was enlarged when the crew tried ceaselessly without success to plug it with tapered pieces of timber.
The inflow of water could not be contained due to the awkward shape of the breach as well as the “access restriction over the hole due to 3’ longitudinal ballast pipes layed 8’ above the hole.”
It was when the wooden plug used by the crew failed to restrict water inflow into the engine room they used 2 mop heads stamped by their feet over the hole. This did not succeed and the water levels in the engine room continued to rise.
As I see it, the use of mops, which could not in these circumstances have plugged the hole and prevent the inflow of water, was like a drowning man clutching at a straw. The owners should have made provision for precautionary measures when contingencies of this nature arise. This was not an Act of God.
The vessel was towed. At approximately 1637 hours the “Princess Ashika” took up tow of the “Ovalau II” in an attempt to tow her back to the refuge of Ellington Jetty. While manoeuvering the vessel as she was facing the opposite direction for the return journey to Ellington, the “Ovalau II” developed a substantive list to port as well as snapping her starboard bridle tow line. However, towing continued until they entered Nananu-i-ra passage at 1810 hours when the towline was severed by the “Princess Ashika” crew members due to the heavy load being exerted by the sinking “Ovalau”.
Immediately after entering the passage, the Master of the “Ovalau II” ordered port anchor dropped with 4 shackles out, holding the vessel on an easterly heading.
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At approximately 1515 hours on the 23rd of August, Mr. Emosi Waqa of Safari Lodge, Nananu-i-ra arrived on board with 2 pumps to assist the stricken vessel. On his return to mainland the first eleven of the passengers were evacuated on his boat.
After the “Ovalau II” was safely anchored, the Master ordered the evacuation of the remaining 23 passengers onto the 4 outboard motor vessels that came to assist. At 1835 hours the Master and his crew abandoned the sinking vessel.
At 1850 hours, the “Ovalau II” being heavily listing to port by now, tipped over her port side and sank at the position latitude 17° 15.1' south longitude 178° 12.0' east or relatively 1.5 nautical miles almost due North of Nananu-i-ra Island western point.
In Appendix ‘D’ (attached) are my ‘Observations’ and ‘Recommendations for Amendments to the Act’.
There I said that for the benefit of the maritime public and for the safety of passengers and safe carriage of cargo, we need to seriously take heed and learn from the MV Ovalau II tragedy and to immediately make amendments to the Act and Regulations made thereunder and for their enforcements by the Officers responsible. The most important matter thereafter shall be strict compliance by all concerned in the application and enforcement of Maritime Laws.
I made a large number of Recommendations as there were many shortcomings in the implementation of the provisions of the Act.
I also made certain orders such as the cancellation of the Captain’s Class 4 Master’s Certificate of Competency, the suspension for one year of the Chief Officer’s Grade 3 Certificate of Competency and the suspension for 12 months of Chief Engineer’s Class 3 Certificate of Competency and thereafter demoted to act as Second Engineer only in any vessel.
Orders were made against the Director of FIMSA and the owners of MV Ovalau II.
The only fine was against the owners of the vessel in the sum of $2000.00 under the provisions of sections 84 of the Act.
PENALTIES
I shall now deal with the matter of ‘penalties’ specified under the Act and some of the Regulations made thereunder.
General Principles imposing Penalty
In my view the general principles in relation to the imposition of fines in a criminal offence, will also apply in maritime matters.
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As Archbold 2006 states: “a rigid formula should not be adopted to a single offence, let alone to a series where the result is a total fine out of all proportion to the ability of the individual to pay.”
Archbold goes on to say that “it is wrong in principle to impose a fine on the assumption that it will be paid by some other person, such as the instigator of the offence who has not been apprehended (R v Curtis, 6 Cr. App. R (S) 250 CA).
Provisions as to penalty under the Marine Act No. 35 of 1986
There are numerous provisions under the various sections of the Marine Act. A complete list is to be found in Appendix ‘E’ (attached) of this Paper.
You can read for yourself what is the amount of penalty for the offences or breaches committed.
It is my understanding that as a result of Recommendations made arising out of Marine Inquiries of the type referred to hereabove by me, a large number of amendments to the Act and Regulations were made since the principal Act of 1986.
One will find in the Marine (Amendment) Act No. 18 of 1999 the principal Act is amended in each of the sections listed in the first columns of the Schedule to this Amendment by deleting the fine alongside that section appearing in column 2 and substituting fine in column 3. The list of the sections affected is to be found in Appendix C referred to hereabove.
It will be noticed that the penalties were amended by increasing maximum financial penalties by 100%. That was the object of Marine (Amendment) Bill 1998 which became Marine (Amendment) Act No. 18 of 1999 and came into force on 16 April 1999.
To complete the picture on ‘penalties’ there are provisions for fine in Marine (Fiji Small Craft Code) Regulations 1990.
There is also a penalty section in Regulation 19 of Marine (Maritime Security) Regulations 2004 (Legal Notice No. 53 of 2004).
Regulation 19 provides for “Penalties – (a) for individuals: $2000 or 6 months imprisonment or both; (b) for companies $20,000.00”.
Also in the Ports Authority of Fiji (Amendment) Act 1999, penalties (monetary) set out in section 44C in relation to ‘dangerous goods’ where fine of $10,000.00 can be imposed on conviction if an offence is committed, there is a fine of $5000 for a person sending or carrying etc in a vessel dangerous goods under a false description. Further a fine of $4000 can be imposed on conviction for not complying with the direction given by the Port Master prohibiting the loading into the vessel, carriage, removal and stowage etc.
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SUMMARY
In conclusion I sum up the points I wish to make and these are as follows:-
1. Arising out of the various Recommendations and Observations made in the Marine Inquiries; steps had been taken by the Legislature to amend the principal Act, viz. the Marine Act 1986 and Regulations.
2. As a result of these amendments penalties other than monetary have been taken care of by the Legislature through debates in Parliament.
As can be seen fines (monetary) for offences on conviction have been doubled from previous provisions.
It is as a result of outcome of Marine Inquiries such as the Ovalau that Legislature had taken steps to do the amendments by, in most cases increasing the fines by 100%. This is not to say that ample fines were not in the Act and Regulations before the Inquiry in the Ovalau disaster.
3. I have drawn attention to some of the provisions in the Act and Regulations in regard to Penalties in the nature of fines. There may be others in other Regulations and I would ask you to look those up yourself should it be necessary as mine may not be a complete list of penalties/fines.
4. There are two Acts, namely, Sea Ports Management Act 2005 (Act No. 8 of 2005) and Marine (Amendment) Act 2005 (Act No. 9 of 2005) which could be the result of Marine Inquiries.
Most amendments have been as a consequence of marine casualties such as the Ovalau II.
Finally, a lot of lessons are learnt from incidents, disasters and casualties at sea arising out of the marine inquiries which have been conducted over the years.
It is therefore incumbent on the relevant Government Ministry to take heed of the Recommendations, Observations and suggestions for legislative amendments so that, inter alia, adequate penalties are provided by amendments. Fortunately, I think in our case in Fiji this has been done.
I hope the material contained in my Paper including the Appendixes have provided you with enough material for your purposes on the topic of ‘Penalties’.
I thank you for listening.
Justice Devendra Pathik
92 ANNEX 12
SEMINAR ON SUBSTANDARD SHIPPING IN Outline of Presentation THE PACIFIC ISLANDS REGION IMO/ILO – the rule making institutions in international maritime legislation International Maritime Regulatory Regime Table of IMO Conventions Regional Initiatives IMO / SPC/RMP MOU ILO / SPC/RMP MOU Enforcement of Maritime Legislation Pacific Islands Maritime Legislation & Regulation (PIMLAR) National maritime legislations Scheme of Maritime Legislation (Shipping / Maritime Act) Enforcement Why is it important? Challenges Who is involved? Tufuga Fagaloa Tufuga Issue – general laxity attitude Regional Maritime Legal Adviser Way forward SPC/RMP Conclusion REGIONAL MARITIME PROGRAMME - 1s t Regional Meeting of CEOs for Maritime Transport REGIONAL MARITIME PROGRAMME - 1s t Regional Meeting of CEOs for Maritime Transport
SPC Regional Maritime Programme SPC Regional Maritime Programme
IMO and ILO IMO Conventions integral part of Maritime law IMO is the United Nations specialised agency Safety of shipping is governed principally by responsible for improving maritime safety, security international rules and standards and pollution prevention from ships. SOLAS, MARPOL, LOADLINE and COLREGS have “universal organisation” 164 member countries been successful in fostering uniformity in Cook Islands application pending international maritime law and practice Its purpose is to provide machinery for the cooperation Article 2 – IMO Convention: amongst governments in the field of government regulation and practices affecting shipping engaged in international trade. b) “provide for the drafting of conventions, agreements, or The IMO conventions can be considered under four main other suitable instruments, and recommend these to headings: Legal, Environmental protection, Safety and Trade. governments and to intergovernmental organisations, and Main source of international maritime law especially on the convene such conferences as may be necessary.” regulatory aspect of shipping ILO is the specialised United Nations agency for improving Implementation of international convention is the labour and work conditions responsibility of States that ratify them Maritime Labour Convention 2006 Seafarers Identification Documents 2003 Principle of pacta sunt servanda
REGIONAL MARITIME PROGRAMME - 1s t Regional Meeting of CEOs for Maritime Transport REGIONAL MARITIME PROGRAMME - 1s t Regional Meeting of CEOs for Maritime Transport
SPC Regional Maritime Programme SPC Regional Maritime Programme x 6 o 6 ) ) ) 6 ) II / N 01 Anne (
International Maritime Legal Mechanisms O on 7 on i 6 9 6 onvention onvention 6 onvention onvention 6 6 C Annex I Annex IIIAnnex IVAnnex V Annex ( ( ( ( on 7 C 6 6 0 onvention 6 onvention 7 i on 7 on N ProtocolN 73 90 0 i NVENTI O C 7 onvent N
0 Protocol88 l l The four pillars 78 78 78 78 O O onvention 69 onvention 89 / / / / onvention 72 C OA 2 O S S
C C CO IM C f onvention 72 onvention Protoc
S onvention 74 onvention E onvention 78 E onvention 90 S C C AT amendmentsAT 94 amendmentsAT 98 N C onvent L 73 L 73 L 73 L 73 L Protocol 97 onvention 71 C 78 Protocol 88 Protocol G G C onvent G S S
H onvention 72 onvention C 88 onvention 9 onvention onvention 69 C onvention 74 rotoco rotoco onvention 48 onvention O O O O O /
S S S 9 Protocol C C C C C C P P
Safer, Secure Shipping, Cleaner Seas & C C C amendments 93 C W ILITATI Protocol 7 Protocol 92 amendments 91 amendments 93 LA LA LA LRE R AD LINE AD LINE NNA S C C C C C O O O PR P T L L L UA ProtocolUA 88 ALVA Improved Social and Economic Well-being of O O O T HN L INMAR FA London IM FUND IM SO SO SO L CO CSC CSC S SAR INMARSAT INMARSAT INMAR MARP MARP MARP MARP MARP London INTERVENTI C C C FUND Protocol 92 PAL PAL PAL LLMC LLM S S S O BUNKER INTERVENTI Member o IM FUND Protocol 7 May-07 O Seafarers Australia YYxYYYYYYYYYYYYYxYYYYYY YYYYdxYdxY YxYYxY x Y NZ YYxYYYYYYYY YYYx YYYY Y YYY d Yd Y Y YYxY Y Consol. Labor Consol. Labor Cook Is x x Y Y Y * Convention Convention
MARPOL Fiji Yx YYxYxYY Y x x d xd x Y MARPOL SOLAS SOLAS Kiriba ti x x Y x Y STCW STCW Marshall Is YYxYYYYYYYYYY YY YYYYYYx YYdxYdxYxx Y YYxY Y FSM) Y x Nauru x Palau xx PNG xxxxxxYx xxxxxxdxdx Y Samoa Yx YYxYxxY Yx xYYYYx Y Y xxx xx xY Solomon Is x x x Y x x Y Tonga YYxYxYYYYYxxYxxxxxxYYYY YxYxd Yd YxxxxxYYxYx xY Tuvalu xxxxxxx Y xxxx xxxx x Y International Maritime Regulatory Regime Vanuatu YYxYYYYYYYYYYY YYYYYxYYYYdxYdxYxx Y YYxY x Y
REGIONAL MARITIME PROGRAMME - 1s t Regional Meeting of CEOs for Maritime Transport REGIONAL MARITIME PROGRAMME - 1s t Regional Meeting of CEOs for Maritime Transport
SPC Regional Maritime Programme SPC Regional Maritime Programme
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1 ANNEX 12
Maritime Legislation and Regulations Regional Initiatives Uniformity through Regional Approach Pacific Islands Maritime Legislation and TOKYO MoU: establishes an effective Port State Control regime in Regulations (PIMLAR): the Asia–Pacific region to eliminate sub-standard shipping generic shipping legislation that PICs can adopt into their national legislative frameworks MoU on Recognition of Seafarer Qualifications: MoU between National Maritime Policy: PICs, providing for the mutual recognition of certificates of first step in developing an efficient, economic competency under the STCW-1995. The MoU has been signed by all and effective maritime sector 14 PICs in 2005, and will remain in force for the next five years Some PICs have policies but work in progress by RMP and PIMLA IMO-SPC MoU: MoU concerning support, Maritime Legislation and Regulations: exchange of information, and management Legislation: Exist in PICs, being regularly of assistance programmes. The IMO updated with assistance from PIMLA and RMP delivers their Technical Cooperation Regulations: generic regulations available for Programme through the RMP. PICs to adopt it into their national laws ILO-SPC Letter of Agreement: To Two-tier System of Rules develop and strengthen cooperation of ILO RMP is working through PIMLA on developing a and SPC with respect to matters mechanism where Cabinet/Parliament is bypassed and the CEOs can be given power to concerning the maritime sector, particularly promulgate and sign off in those rules in the promotion of international Will address the issue of delays in the conventions, training, dissemination of enactment of appropriate legislations information andREGIONAL advocacy MARITIME PROGRAMME - 1s t Regional Meeting of CEOs for Maritime Transport REGIONAL MARITIME PROGRAMME - 1s t Regional Meeting of CEOs for Maritime Transport
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Scheme of Maritime Legislation National Maritime Legislation Administration of Maritime Affairs; Registration and Licensing of Vessels; Conventions written in “Treaty Language” Proprietary Interests in Ships; Manning of Ships and Certification of Seafarers; Conventions often require “Action” Engagement and Welfare of Seamen ; Ship’s Log Book; Conventions do not create offences or establish Prevention of Collisions and Safety of Navigation; penalties for violations Safety of Life at Sea; Load Lines; Need for Parliamentary approval Carriage of Bulk Cargoes and Dangerous Goods; Seaworthiness of Ships; Need for Translation Wreck and Salvage; Towage; Need for debate and Promulgation Passenger Ships; Maritime Claims and Arrest of Ships; Limitation and Division of Liability; Inquiries and Investigations into Marine Casualties; Marine Insurance and General Average; Marine Pollution
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Enforcement (1) Enforcement – (2) Check with Constitution Why is it important ? Create offences Compliance with the rule of law Standard of care – “absolute or strict liability or Legislation is the key to success negligence” Ensure safety, security of ships and people work on Equity in penalties them Deterrence or compensation Facilitate maritime transportation and trade Heavy penalties especially for Marine Pollution incidents To deter or eliminate poor performers and encourage Investigations and / or prosecutions good practitioners Ensure correct procedure in place To eliminate substandard shipping Principles of natural justice must be adhere to It is a form of unfair competition that is catastrophic in Seek assistance of maritime lawyer at AG’s Office the long run
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Enforcement – (3) Enforcement – (4) Challenges: Who is involved? Political will Classification Societies Corruption Surveyors Lack of resources Maritime Administrators Port State Control Technicality and Complexity Shipowners Lack of Publicity Seafarers Time factor Law enforcement agencies Competition Maritime lawyers Parliamentary process Shippers Insurers Bankers REGIONAL MARITIME PROGRAMME - 1s t Regional Meeting of CEOs for Maritime Transport REGIONAL MARITIME PROGRAMME - 1s t Regional Meeting of CEOs for Maritime Transport
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Enforcement - (5) Enforcement – (6) General laxity approach to enforcement – an What is the way forward? issue Ongoing training for relevant stakeholders Ongoing review of maritime legislations Complacency Sharing experiences and using existing resources Commercial interests versus regulatory regime Raise the profile Lack of training A dedicated personnel Inadequacy or obsolete of relevant law A decisive dialogue amongst all players Low penalties Better balance between Govt regulators and self - regulation Case Study: Need for transparency of information in shipping industry and make people responsible for substandard shipping accountable Fiji – MV Ovalau incident (2003) http://www.paclii.org Regulatory Framework to be evaluated and rationalised Eg. Maritime Safety Queensland – Investigations Unit
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Conclusion Any questions? Relevant IMO/ILO Conventions to adhere with especially those four pillars conventions as amended from time to time Regional initiatives are implementing international law and best practices National maritime legislations is comprehensive and must harmonise throughout the Pacific Islands region Enforcement is critical as witness on lessons learnt from cases such as MV Ovalau Collaborative effort from all players involved More trainings of relevant personnel on requirements of Conventions Maritime Safety Queensland - establishment of Investigations Unit put relevant maritime personnel on their toes. REGIONAL MARITIME PROGRAMME - 1s t Regional Meeting of CEOs for Maritime Transport REGIONAL MARITIME PROGRAMME - 1s t Regional Meeting of CEOs for Maritime Transport
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3 ANNEX 12 Secretariat of the Pacific Community SEMINAR ON SUBSTANDARD SHIPPING IN THE PACIFIC ISLANDS REGION Suva, Fiji, 13 – 17 August, 2007
ENFORCEMENT OF LEGISLATION
Paper by Tufuga Fagaloa Tufuga, Maritime Legal Officer, Regional Maritime Programme, SPC, Suva, Fiji
ABSTRACT
The ever increasing regulatory conventions under the International Maritime Organisation and International Labour Organisation will mean more national maritime legislations to be developed and adopted by the Pacific Island Countries and Territories (PICTs) which are parties to such conventions. It is widely accepted that good and robust maritime legislations go a long way in ensuring safe and secure maritime transport. However, a country can have the best of laws but if they are not enforced effectively by relevant government officials, the laws hold little value. Enforcement may take many forms such as inspections, surveys, monitoring, boarding, detention, arrest, complex information and data requirements, as well as various intra-industry commercial enforcement methods designed to ensure compliance. These are prescribed in relevant international maritime conventions. With limited resources and expertise in most PICTs, it is important for all relevant players to cooperate, collaborate and be committed in carrying out their respective tasks under the legislation. This paper will discuss what generally entails in the enforcement of maritime legislation and the possible way forward in terms of enforcing maritime legislations effectively and efficiently in the Pacific islands region.
INTRODUCTION
Maritime law will not meet its objectives if there is no adequate enforcement. The principles governing enforcement jurisdictions are provided under the United Nations Convention on the Law of the Sea (UNCLOS) and relevant IMO/ILO conventions.
Public law can be enforced through different instruments. The classical instrument is formed by penal law. Thus, criminal sanctions are placed on non-observance of the substantive provisions. Penal law provides for the nature of the sanctions (fines, imprisonment etc) as well as enforcement procedures (investigation of misdemeanours and crimes, provisional measures, rights of the accused and court proceedings).
It may be useful to have a penal law (Code) for the maritime sector, since common penal law may not provide for the type of sanctions particularly appropriate in the maritime sector. This is also important in light of maritime security-related offences under Convention for the Suppression of Unlawful Acts against the safety of maritime navigation (SUA), 1988, and its subsequent amendments. It is ideal to put all maritime-related offences under a single legislation.
In order to enforce penal sanctions, it may be necessary to detain the ship. Since this may lead to financial consequences far beyond the actual fine, the posting of bonds is often provided for by the legislation. Posting a bond secures payment of fines after conviction and allows the ship to sail before the legal proceedings start.1
1 Article 226 of UNCLOS provides for this principle 1 96 ANNEX 12
This principle is also applicable to maritime law. For instance, legislation on navigation matters (traffic rules, compulsory pilotage) is enforced through penal sanctions. In special circumstances the ship may be detained to ensure the prosecution of the violator.
On the other hand, maritime law presents specific features which have resulted in the development of other enforcement instruments besides penal sanctions. In this connection, it is useful to focus first on the implementation of the legislation, since it provides the conditions for meaningful enforcement.
Implementation of the law is giving effect to the legislation by the government, usually through administrative procedures. Important areas of maritime law are thus implemented through surveys, inspections and subsequent certification of ships. Such is the case with safety legislation (the SOLAS, Tonnage Measurement and Load Lines Conventions) and legislation on pollution prevention (MARPOL). Similarly, manning legislation (STCW Convention) is implemented through examination and certification of seafarers.
It is essential that an adequate procedure be set up to secure the implementation of this part of maritime law. In some countries a special branch of government or shipping inspectorate is entrusted with inspection and certification of ships and the relevant law will define the purpose, duties and powers of that body. Other countries rely on classification societies for the performance of inspections and the issue of certificates to ships. Which method is chosen depends very much on the specific situation in the country. It is, of course, essential that inspection and certification be performed by reliable institutions. If such institutions are not at hand, recourse may be handed to the foreign classification societies. In order to establish the reliability of the foreign classification society2, Pacific island countries may provide for their recognition. Inspection and certification, especially if carried out by foreign classification societies, may be combined with a legislative provision which holds the owner liable for unseaworthiness of his ships. By imposing a refutable presumption of liability on the owner, the legislation may provide a strong inducement for the procuration of safety inspections and certificates.
Based on these procedures, enforcement instruments have been developed. Most of the IMO/ILO conventions provide for unscheduled inspection by the competent authority of foreign ships in ports.3
The next step may be to inspect the ship physically. Such a physical inspection may also be undertaken in respect of national ships and foreign ships which are not covered by a convention. If deficiencies are detected, there may be given an order to remedy deficiencies either immediately or at a subsequent port of call.4
If deficiencies detected are serious and/or the ship is not seaworthy, then detention will be the appropriate measure in this case. Certificates may be revoked wherever orders to remedy deficiencies had not been followed. Revoking a certificate will for all practical purposes make it impossible for a ship to sail.
Enforcement is usually carried out by government officials of the maritime administration, who may be assisted by officials of other government branches (e.g. the police). Where a special branch of the government is entrusted with the implementation of the rules, they are usually also in charge of the enforcement. For small island states, it is not unusual that multiple agencies are used for
2 This is discussed further below 3 These inspections under port state control is discussed below. 4 Regional MOUs for Port State Control are discussed below. 2 97 ANNEX 12 enforcement with one taking the lead/coordinating role. This is because of lack of or little resources and expertise to enforce requirements under the law. It is to be noted that in most IMO conventions the use of enforcement powers is subject to the duty to avoid undue detention and delay of ships. This is expressly provided in Article 226 of UNCLOS.
Implementation and enforcement of rules relating to manning take place in a similar manner. Usually, supervision of the examination and the subsequent certification of seafarers is entrusted to the maritime administration and maritime training school. Enforcement take the form of inspection of the crew’s certificates to verify that the ship has the required number and level of trained seafarers on board and that a particular crew member holds the certificate required for his position on board of the ship. If this is not in order, the ship may be detained until the crew has been supplemented so as to meet the manning requirements. When enforcing the rules, the officials must avoid that ships are unduly detained or delayed.
Enforcement of substantive provisions of economic regulation cannot be effective if relevant information is not available. It is therefore important that provisions be enacted which enable the maritime authority to gather information as and when necessary from companies and individuals engaged in national shipping.
In the final resort, enforcement of maritime law takes place through courts. In most countries, the jurisdiction of courts in public maritime law is laid down in the penal code, a separate code of penalties or a special code for economic and maritime offences.
THE ISSUE – GENERAL LAXITY IN ENFORCEMENT
It is probably fair to say that there is an issue of lack or no enforcement of maritime laws within most PICTs. As discussed below there are many factors, both international and on a national scale, that contribute to the enforcement problems. We have had maritime incident cases in the region whereby maritime officials have been performing their duties below the required standard which resulted in some fatal maritime incidents for example, MV Wasawasa (1997) and MV Ovalau (2003) in Fiji waters. The latter is a case where a fully loaded vessel capsized and sank in August 2003 on the Northern Viti Levu coast. The facts of the marine inquiry5 revealed that both the ship owner and the regulator were lax in safety and that there was mediocre law enforcement by the Maritime Administration. Such an incident could have easily happened in any other island in the region.
The marine inquiry indicated that such maritime incidents could have been easily prevented if the maritime authorities, captain and crew had performed their duties in accordance with Marine Act 1986 and best international practices. It is the same maritime authorities that have the duties to ensure international vessels calling into ports in the Pacific have met international standards under Conventions such as SOLAS Convention 1974 as amended, Load Lines Convention 1966 as amended, STCW Convention 95 as amended, etcetera. This is enforcement under port state control mechanism which basically compliments flag state responsibilities.
Despite the mass of legislation which IMO/ILO has produced over the years, legislation has its limitations. A possible solution, perhaps one may argue, is not to adopt more conventions but to make sure that the existing ones are properly implemented. In many cases lack of financial resources and expertise is the main problem. In some countries enforcement of an IMO/ILO Convention is not on the government’s list of priorities. The PICTs are encouraged to implement and enforce maritime laws as we are maritime people who depend heavily on shipping and other ocean activities. IMO/ILO for instance is helping to overcome these difficulties in many ways. It has developed a technical assistance to governments which lack experience and resources. Further,
5 See PacLII website: http://www.paclii.org 3 98 ANNEX 12 both IMO/ILO have also entered into memorandum of understanding with regional entities such as SPC/RMP to provide and assist PICTs with trainings and implementation of appropriate maritime legislations.
It is sometimes said that IMO should have some sort of authority to enforce its regulations. Should IMO take more sovereignty out of the hands of States? Or how would IMO have some sort of police function? The only way seems to be to create a team of inspectors and officials who would have the right to board a ship which they think is contravening with IMO regulations. Such practice would be financially impossible when one thinks about the international nature of shipping and politically most Governments would never agree to allow ships flying their flag to be boarded in international waters. It would also be unacceptable to introduce a system of penalties and punishments. Literally IMO does not have the authority to enforce its legislations but in practice IMO continually encourages observance of international standards by exercising a degree of institutional supervision. However, it is noted that authority was given to IMO over governments, for the first time, under the changes made to the 1978 STCW Convention. This was one of the most important changes made in the 1995 amendments to the Convention which entered into force on 1 February 1997. The changes were not only the recognition of the importance of enforcing standards internationally but also IMO’s own ability to ensure that this is done. Basically, the IMO is playing a watchdog role under this STCW Convention 1995. According to these regulations governments will have to provide relevant information to IMO’s Maritime Safety Committee which will judge whether or not the country concerned meet the requirements of the Convention.
IMO’s Sub-Committee on Flag State Implementation (FSI) was established in 1992 to assist Governments in implementing conventions and other instruments which they have ratified. It also aims to consider the difficulties faced by developing countries. Since its first meeting in 1993 the FSI Sub-Committee has examined the port state control issues and it became possible both for flag and port states to meet and discuss issues relating the implementation of IMO instruments.
If the flag states do not take full responsibilities required from them under international law should the port states take that responsibility? Is it possible to replace flag state control with port state control?
PORT STATE CONTROL
Port state control is not a new concept. It was stated in many international conventions. However, the international conventions do not explicitly impose on contracting governments the obligation of port state control, but leave this to the discretion of contracting governments. By participating in the relevant port state control agreements the member states commit themselves to specified enforcement efforts regarding port state control. Under port state control the primary responsibility for compliance with the provisions of the relevant instruments lies with the shipowner/operator. The responsibility for ensuring that such compliance remains with the flag state. In other words, the primary responsibility for ensuring that a ship maintains a standard at least equivalent to that specified in international conventions rests with the flag State. The intention of the port state control is not to enforce on foreign merchant shipping any requirement which goes beyond convention requirements
It is interesting to note that at present there are about eight regional Port State Control agreements are in operation and the one of more relevance to our region is Tokyo MOU in which PNG, Vanuatu, Solomon Islands and Fiji are members. The list is Port State Control MOUs is as follows:
x the Paris Memorandum of Understanding on Port State Control (Paris MOU), adopted in Paris (France) on 1 July 1982;
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x the Acuerdo de Vina del Mar (Vina del Mar or Latin America Agreement), signed in Vina del Mar (Chile) on 5 November 1992; x the Memorandum of Understanding on Port State Control in the Asia-Pacific Region (Tokyo MOU), signed in Tokyo (Japan) on 2 December 19936; x the Memorandum of Understanding on Port State Control in the Caribbean Region (Caribbean MOU), signed in Christchurch (Barbados) on 9 February 1996; x the Memorandum of Understanding on Port State Control in the Mediterranean Region (Mediterranean MOU), signed in Valletta (Malta) on 11 July 1997; x the Indian Ocean Memorandum of Understanding on Port State Control (Indian Ocean MOU), signed in Pretoria (South Africa) on 5 June 1998; x the Memorandum of Understanding for the West and Central African Region (Abuja MOU), signed in Abuja (Nigeria) on 22 October 1999; and x the Memorandum of Understanding on Port State Control in the Black Sea Region (the Black Sea MOU), signed in Istanbul (Turkey) on April 7 2000.
The recitals of these agreements emphasise that the main responsibility for the effective enforcement of international conventions lies with the owner and the flag states but recognise the need for effective action of Port States in order to prevent the operation of deficient ships. The port states can not prevent the accidents on the flag state vessels as the latter fails to enforce the standards. If a vessel is registered in a country which implements all the international and national regulations fully the owner of the vessel pays for flag state administration and the survey regime which it establishes. The owner is also required to pay the necessary taxes to maintain the flag state administration. And practically the port state can not have control over the standards of design, construction and equipment as by the time the ship arrives in a port state, it is already built and crewed and the standards of training and qualification of the crew have already been determined by the flag state. Obviously it is not possible to deny the benefits of the port control system either. With its monitoring function it imposes international standards on the vessels which do not follow them voluntarily. However, in order to use this function Port State Control needs to become a statutory function of the relevant government body. The authority exercising port state control is the national law based on relevant conventions. If a vessel is in a dangerously unseaworthy condition, the port state control should be in a legal position to demand repairs before departure. The port state should prevent the vessel from trading in a dangerously unseaworthy condition. The vessel should not be allowed to slip through the international safety net. Consequently, flag state control cannot be readily replaced by port state control it only adds to the efforts of flag states to improve maritime safety and to prevent maritime pollution. Today port state control gains more importance, the revised STCW Convention and the ISM Code7 which provides an international standard for the safe management and operation of ships and for pollution prevention give port states real powers to infringe the sovereignty of the flags as if they do not comply with the necessary legislations.
CLASSIFICATION SOCIETIES:
Classification societies have a fundamental role to play in preventing accidents at sea, through their dual role in the classification and certification of ships. They play a role in enforcing regulatory requirements under domestic legislations that is, the IMO Conventions incorporated into domestic law. Several PICs have used services of such institutions8 to cope with the complexities of inspecting ships by delegating appropriate survey powers. To be classified, vessels were equipped under the strictly enforced supervision of classified-society surveyors. Only materials approved and
6 This MOU is more relevant for PICs to consider joining as members. Only Fiji, PNG and Vanuatu are members to date and Solomon Islands has observer status. 7 The Report of the International Commission on Shipping (2001) by Moritaka Hayashi indicated that full implementation of the Code will see improvement of ship safety and the more ready detention of substandard ships. 8 For example, Samoa Shipping Corporation has engaged the services of Lloyds Register Shipping 5 100 ANNEX 12 tested by the society could be used and, in order to maintain its class, a vessel had to be periodically surveyed to ensure that its hull and machinery remained in an acceptable condition.9 The same principles are followed today. However, classification societies have increasingly come under scrutiny for the standard of their inspections. There have been claims for compensation for the deemed negligence of their surveyors in granting certificates of seaworthiness to ships that have subsequently evidenced mechanical or structural failures. Many States, especially those operating “open registers”10, delegate many of their Flag State responsibilities to classification societies.11 In some cases, classification societies actually issue documentation on behalf of Flag States. This raises some questions of responsibility and accountability, as well as potential conflicts of interest issues, since on matters of “class” the classification societies conduct their surveys for the owner, not the Flag administration. Also, there is a conflict of interest at times in acting for both ship- owner and regulatory authorities, and that they succumb to commercial pressures to compromise safety standards.
However, it is important to note that there have been some problems with the proliferation of such societies of varying size from a small network to big ones spreading over five continents12. This is to do with inconsistencies in the minimum standards use which ultimately brought discredit on the profession. As the result, the International Association of Classification Societies (IACS)13 was set up to regulate work of classification. The aims of IACS differ very little from those of IMO. Both are trying to promote the highest possible safety standards at sea and prevent marine pollution; both cooperate with competent international maritime organisations, and both maintain close cooperation with maritime industries worldwide.
SHIPPING LEGISLATIONS IN THE REGION:
Typically within the generic Shipping legislation used in the region under PIMLAR14 one would find the following enforcement provisions that relevant personnel would need to comply:
(a) designation of authority entrusted with enforcement of the Act, e.g. the shipping inspection; (b) appointment of other persons for enforcement, e.g. surveyors from classification societies; (c) the carrying out of random inspections; (d) rights and powers of surveyors and inspectors; (e) duty of the master to produce certificates to inspector on demand; (f) duty of the owner and the master to cooperate with inspections; (g) power to detain a ship, inter alia if i. the ship does not carry all the required valid certificates; ii. the condition of the ship does not correspond substantially with the particulars of the certificates; iii. the ship is loaded in excess of the freeboard assigned; iv. the ship is carrying more passengers than it is allowed; v. an inspector is obstructed when carrying out a survey or inspection;
9 See Gold E., Gard Handbook on Protection of the Marine Environment, 3rd Edition, 2006, Norway, pp. 518 -520. 10 In the region we have open registry in Vanuatu, Marshall Islands, Tuvalu, Cook Islands. Although changes have been made into relevant legislations in both Kiribati and Solomon Islands to allow for open register. Meanwhile Tonga’s Open Registry which ran into problems few years back is keeping a low profile if not closed. 11 A “Recognised Organisation” means an organisation that meets the relevant conditions set for in IMO Resolution A739(18) and has been delegated by the Flag State Administration to provide the necessary statutory services and certification to ships entitled to fly its flag. 12 The rise of Classification Societies began in the 1950s 13 IACS was created in September 1969 when seven classification societies met in London and was granted consultative status at IMCO in October 1969. IACS currently has ten members. 14 SPC/RMP’s generic maritime legislation (loose-leaf) – Pacific Islands Maritime Laws and Regulations (PIMLAR) 6 101 ANNEX 12 (h) duty of the master to put and keep the detained ship at a location indicated by the competent authority; (i) procedure of detention; (j) release of detention; (k) power to order the deficiency to be rectified; (l) duties of the master if the ship is detained abroad.
As one can note, these are quite comprehensive requirements for maritime personnel to understand and more importantly to enforce. If they are enforced effectively one would expect to see much safer shipping sector both domestic and international.
CONCLUSION:
The enforcement of obligations and responsibilities under international conventions is difficult especially for small island states with its own limitations. It is also important to recognise the fact that there are many players involve in international shipping and if one does not play its role it will certainly affect or have an impact on others role in the chain such as that of the port state control. It is very difficult to break the chain. Flag states which do not implement the legislation, officers who are financially desperate, classification societies that aim to attract more tonnage are on one side and the international organizations like IMO and port state control on the other side. Is there a chance for success? Governments in the Pacific have a vital role to play in implementation of international maritime conventions. Rather than assisting, IMO should have more power to vet the implementation of the Conventions in member states and SPC/RMP has and continues to play that role in terms of assisting PICTs to incorporate relevant IMO Conventions into domestic laws under PIMLAR. Indeed, one of the positive developments is that the ISM Code lays down a set of general principles, of widespread application to all types of ship and owner. The responsibility of management defined more closely than before in order to make sure that safety is a priority when decisions are made.
The port state control needs to become more effective in order to make it more difficult for sub- standard ships to find some where to hide, to prevent them from plying its waters. The flag state control and port state control are bound with each other. There is a need for increased flag state and tighter port state control.
The responsibility is not just on one party; flag states, port states, ship owners, classification societies, international organizations and whoever is taking part in shipping industry need to act together. They all need to comply with international rules and regulations. The enforcement standards of the conventions should be re-examined and penalties for infringements should be applied.
As has been discussed above, PICTs have its own limitations (finance, lack of expertise etc) which arguably contributed to its mediocre level of enforcement of maritime safety requirements spelt out in legislations. It is understandable that these requirements are the minimum as adopted by IMO and there is no level playing field. The same standards are applicable in developed countries as is with small island states. What is required is that some PICTs must have the political will and good governance to commit and enforce laws in order to eliminate maritime casualties or incidents such as discussed above.
Furthermore, more training as undertaken by SPC/RMP and other institutes regionally will need to continue as means of capacity building and also as a means of giving a degree of ownership by PICTs who needs to buy in to the importance of having a safer and secure maritime transport both
7 102 ANNEX 12 domestically and regionally. Once maritime personnel apply and enforce the law effectively it will certainly give a strong message or deterrence note to relevant actors within the sector.
Lastly, it is also important for PICTs to consider joining Tokyo MOU in order to enhance port state control and general enforcement of maritime safety, security, prevention of marine pollution as spelt out in domestic legislations.
LIST OF REFERENCES:
1. Boisson P., Safety at Sea – Policies, Regulations and International Law, Bureau Veritas, Paris, 1999 2. Economic & Social Commission for Asia and the Pacific (ESCAP), Guidelines for Maritime Legislation, Volume 1, United Nations, 1991 3. Hayashi M., “Toward the Elimination of Substandard Shipping: The Report of the International Commission on Shipping”, The International Journal of Marine and Coastal Law, Vol 16, No 3, Kluwer Law International, 2001 4. Kavanagh J., “Enforcement of Maritime Legislation in Queensland: A New Focus”, 19 MLAANZ Journal, 2005, pp.96 – 114 5. Marine Enquiry The Sinking of the MV OVALAU II [2005] FJHC 369 (5 January 2005) at http://www.paclii.org 6. Mukherjee P.K., Maritime Legislation, WMU Publications, Sweden, 2002 7. Rajadurai A., “Regulation of Shipping: The Vital Role of Port State Control”, 18 MLAANZ Journal, 2004, pp. 83 – 106 8. Secretariat of the Pacific Community, Port State Control, 2002, Fiji Islands 9. Secretariat of the Pacific Community, Flag State Responsibility, 2002, Fiji Islands.
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Outline of Presentation SEMINAR ON SUBSTANDARD SHIPPING IN THE PACIFIC ISLANDS REGION Introduction A player within chain of market players What is Marine Insurance? Why is it important in relation to substandard Marine Insurance role in Shipping shipping? Marine Insurers one of the many players in complex web of relationships on substandard Tufuga Fagaloa Tufuga shipping Regional Maritime Legal Adviser SPC/RMP
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Prevailing circumstances Introduction Marine Insurance Industry supportive: Marine Insurance has been around for a long time Generally, insurers are supportive to remove substandard “Of the origin of marine insurance, all that can be said with certainty is that it is veiled in antiquity and lost in obscurity” (Dover) shipping from doing business through its risk-selection decisions. Shipowners mutually pay sums into fund, that fund being used to meet losses But because of highly competitive global market some insurers incurred by any of them. may make marginal decisions based on maintaining market share Marine Insurance Act 1745 Sought to put an end on to the practice of wagering rather than risk quality Marine Insurance Act 1906 (UK) Variation in selection criteria: Codification of some 200 years of judicial decisions Insurer can easily select against a particular owner due to The Market concerns over their operations, it is relatively easy for that owner Operation of marine insurance market is complex to get insurance from other insurers who have different selection The classic (London) insurance market division of insurance Marine insurance: object is to indemnify the insured against losses incident to criteria marine adventure Non-marine insurance: A market which is cost-driven instead of quality driven Insurance of persons: deals with the life, physical integrity or health of the insured and is divided into individual and group insurance Therefore its getting more difficult to effectively enforce existing Damage insurance: property insurance and liability insurance and new regulations Terminology of marine insurance in a nutshell: the insured (assured, policyholder), the insurer (underwriter, assurer, insurance company), etc
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Major players in the maritime industry Nature of Marine Insurance UN ILO IMO OECD Consumers Human Rights Bodies A Contract of Indemnity Flag State Regulators Customers A contract of marine insurance is a contract whereby the insurer undertakes to Port State indemnify the assured, in manner and to the extent thereby agreed, against marine losses, that is to say, the losses incident to marine adventure Coastal State Cargo Interests Charterers - see Marine Insurance Act 1906 (UK)
Crew Supply State Subject matter insured A ship Goods
REGISTERED Freight etc OWNER Nominee Governing principles Nominee Shareholders Directors Insurable interest i.e. person with interest in a marine adventure where he stands relating to the adventure or insurable risk,as a result he may benefit by the safety or due arrival of insurable property, or may be prejudiced by its loss,damage,detention or may MANAGEMENT SHIPOWNER MANAGEMENT incur liability.. e.g. Shipowner, Mortgagor and Mortgagee, Master and Crew, Agent, Carrier, Insurer etc Bareboat Charterer Indemnity Where assured has no insurable interest in the subject matter insured, he can recover nothing under policy for he suffered no loss and insurer is under no duty to Insurers (Hull indemnify him Underwriters Associations and P&I Clubs) CREW Good faith MEMBERS Marine insurance contract based upon utmost good faith (e.g. disclosure and Classification Media representation by assured) Societies
Banks and Trade Unions Civil Suppliers Other Lenders SPC Regional Maritime ProgrammeSociety SPC Regional Maritime Programme Source: Fitzpatrick & Manning Agent Anderson, 2005: 34
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Types of Marine Insurance Marine Insurers Cargo insurance What can they offer against substandard shipping? Institute Cargo Clauses P&I Group Clubs – policies on compliance with Flag State and Classification society requirements. Likewise with Port State Institute War Clauses (Cargo) regulations Institute Strike Clauses (Cargo) Thorough risk assessments by insurers of quality standards used by shipowners Hull insurance Need to obtain audit report of shipping companies’ Ship Covers shipowner – where ship is damaged or lost Management System (SMS) to assist assessment of bad and P&I Insurance good risks Subsidies to encourage shipowners and other parties to work for What is P&I Insurance high standards Protecting and indemnity Consult and collaborative work with other market players 3rd party liability insurance including the Government
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Recommendations Conclusions Main tool to underwriters outside declining the There must be long term strategy will prove to be essential Governments as well as maritime industry must take their risk is to increase premiums but again owners responsibilities are selective in terms of their pricing Marine insurance industry should evaluate their own performance: a sense of collective responsibility and self regulation must be Note that insurance costs account only for internalised approximately an average of 10% to 12% of owners marine insurance industry to conduct proper risk assessments: the operating costs so therefore increase in cost for higher the risks, the higher the premium and the tougher the insurance is not decisive in penalising owners with application of restrictive conditions Government policies go hand in hand with commercial policies of substandard ships out of operation insurance industry Best practice and availability of information to Port state control still plays effective role E.g. shippers find it difficult to ship goods, charterers will turn to safe assist underwriters in risk selection vessels and shipowners will be forced to modernise or scrap Transparency of disclosure of information amongst substandard vessels. insurers
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Marine Insurance Perspective on Substandard Shipping
Dr Michael Underdown, Clayton Utz, Perth, Australia
Paper for the SPC Seminar on Substandard Shipping in the Pacific Islands Region Suva, Fiji, 13-17 August 2007
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Marine Insurance Perspective on Substandard Shipping
Dr Michael Underdown
Introduction
In this paper I adopt the definition of a “substandard ship” used by the OECD Maritime Transport Committee, namely “a vessel that, through its physical condition, its operation or the activities of its crew, fails to meet the basic standards of seaworthiness and thereby poses a threat to life and/or the environment,” 1 because it is important to realise that we should not be concerned just with single hull or old vessels.
In recent years there have been a number of high-profile incidents, which have caused enormous environmental damage to coastal states. The Erika, and similar earlier catastrophes, have rightly focussed attention on the issues of marine pollution and substandard shipping, but we have so far failed to really come to grips with the problem. This is not to denigrate the speed with which the IMO responded to the Erika incident. The phasing out of single hull tankers was accelerated, and the Legal Committee amended the 1992 Protocol of the International Convention on Civil Liability for Oil Pollution Damage (CLC) (raising the limits payable by shipowners to about $115 million for a vessel over 140,000 GT) and the 1992 Protocol of the International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage (increasing the limits payable by oil importers by about 50 %).
However, hardly had the IMO dealt with the effect of the Erika than there were new problems of hazardous substance pollution (sinking of the Ievoli Sun) and ports of refuge (Castor). Going to sea is a hazardous business and all those parties who can do something about substandard shipping need to work together.
The fact that responsibility lies with many parties does not help. However, in my view, the failure to accord sufficient recognition to the human element in most maritime incidents is also a significant factor in our inability to overcome the problem of substandard shipping. Issues such as the level or lack of crew qualifications (training, competency), poor operational practices and inadequate fatigue management require urgent examination. Fatigue is a particularly significant factor in many incidents involving fishing vessels, such as collisions and groundings, when there is probably only one person in the wheelhouse, but is also found on the bridges of many larger vessels. 2
Dr Underdown is a solicitor in the Transport and Logistics Team, Clayton Utz, Perth, Australia specialising in maritime law and port law. 1 OECD Maritime Transport Committee, “Policy Statement on Substandard Shipping by the Maritime Transport Committee of the OECD” [nd]. 2 The Centre for Sleep Research, University of South Australia, is prominent in research in this field.
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Every year, some 148 ships over 500 GT are lost at sea, and many more collide, run aground and have other mishaps. The number of vessels lost is not decreasing, but fortunately the tonnages are. This is no doubt because the safety focus has been on tankers and other large bulk carriers. All this has a cost, and that cost has to be paid. However, the understandable focus of the shipping industry on costs has also contributed to the failure to properly deal with substandard shipping.
Unfortunately, even if we could list every substandard vessel right now, and even if we could then ban them all, there would be other undesirable consequences – lack of capacity, increased costs, unemployed crew, rusting hulks – no doubt felt especially keenly in the South Pacific.
Responsibilities
Responsibility for the problem of substandard shipping has to be shouldered by many parties: flag states, port states, classification societies, marine surveyors, ship builders and repairers, ship charters, shippers (cargo owners), and marine insurers and P&I clubs. Government agencies responsible for certifying maritime training and issuing maritime certificates also have a major role to play.
I shall discuss the role of marine insurers below, but first of all I want to look at some of the other parties whose involvement is crucial if we are to solve the problem.
Flag States
A number of registers, fortunately not from the Pacific, have notorious loss (by tonnage) and port state detention records over a long period of time. Such flag states are well known to marine insurers and to such underwriting bodies as the International Underwriting Association, but at the present time, there is no effective monitoring of the performance of flag states, and even less ability to control their performance. A flag state cannot simply be struck off. The growth in these registers has come about not just because shipowners have been looking for cheaper flags, but also because the more unscrupulous amongst them have actively sought out less stringent registers.
Flag states play a crucial role because, if they refuse to register any vessel that does not meet the standards mandated by international conventions, those substandard vessels will eventually find it harder and harder to be flagged. There is no money to be made by a shipowner whose vessel is effectively unable to work. Of course, as I indicated at the outset, this only addresses one side of the equation. Ship registers are not responsible for the human element.
Nevertheless, if it was not possible to shop around for a “flag of convenience, but instead a vessel had to be registered where its owner (or perhaps mortgagor) was located – as in the case of motor vehicles – it would be much easier to ensure Flag State Implementation and to “name and shame” those who abuse the system. Flag States are, in fact, obliged under UNCLOS Articles 94 and 217 to exercise effective control of vessels on their ship
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registers and to enforce compliance with the various international conventions and other safety legislation.
Port States
Port States already play a vital role in detecting, inspecting and detaining substandard ships, but of course more can be done.
The Australian Maritime Safety Authority (AMSA) provides the best example in our region of the monitoring of substandard shipping and operations safety, as well as of marine environmental protection. AMSA participates in both the Tokyo Memorandum of Understanding (MOU) and the Indian Ocean MOU on Port State Control, both of which are concerning with achieving consistency in ship inspection standards and in the exchange of data derived from ship inspections. 3 It is obvious that, unless a great deal of consistency in ship inspection standards can be achieved, there will just be another level of “forum shopping” as already exists with ship registration and surveys, with rogue shipowners looking around for – and eventually finding – authorities who will turn a blind eye to their faults. The exchange of information gleaned from ship inspections is another element in ensuring uniformity and also serves to keep non-complying vessels at bay, in much the same way as human movement is monitored already. AMSA provides information on the ship inspections it conducts through the Asia Pacific Computerized Information System (APCIS) and Equasis, which links the European Commission, United Kingdom, French, Spanish, Singaporean and Japanese maritime administration and the United States Coast Guard.
In addition, AMSA:
x Inspects ships to ensure that they and their equipment comply with the relevant standards x Inspects ships to ensure that their cargo complies with requirements of the International Convention for Safety of Life at Sea (SOLAS) and that certain cargoes have been correctly handled and loaded (such as grain and coal) x Inspects ships to ensure that they comply with operational and occupational health and safety requirements x Checks compliance by Australian flagged ships with the International Safety Management Code (ISM)
Inspections under the Port State Control programme are in addition to AMSA’s statutory obligations under the Occupational Health and Safety (Maritime Industry) Act 1993 and for maintaining crew standards in conformity with the International Convention on Standards of Training, Certification and Watchkeeping for Seafarers (STCW).
AMSA employs a number of strategies in monitoring compliance. High risk ships are profiled prior to arrival in Australian waters, and while more than 96% of such vessels
3 The 1982 Paris MOU covers Europe and the North Atlantic.
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are inspected, the detention rate has been decreasing. This is probably due to a combination of some high risk vessels having been forced out of the industry and, more likely, high risk vessels simply shifting to where the rules are lax. All single-hull tankers have been inspected since the sinking of the Prestige in November 2002. Another strategy is the conduct of Focused Inspection Campaigns (for example, installation of AIS, lifeboats) and Concentrated Inspection Campaigns (for example, compliance with ISPS).
Of course, there are other maritime authorities, that are equally as strenuous as AMSA in inspecting and detaining substandard vessels, but even the best systems fail sometimes as the Erika showed. The US Coast Guard had identified problems with corrosion in 1994 and she was subsequently detained twice in European ports for similar defects, yet she was able to continue sailing. One of the problems – and this applies to Flag States even more so – is that many Port States have far too few qualified marine surveyors. Worldwide there are too few marine surveyors with the requisite experience, and even AMSA has not been able to inspect every vessel it would have liked to inspect, although in the case of Australia there are also limitations imposed by distance. I have talked and written elsewhere about the particular problems associated with marine surveying within the Safe Ship Management scheme administered by Maritime New Zealand. 4 Suffice it to say that I believe the Australian approach of requiring certification by reputable classification societies is a better model.
Classification Societies
Classification societies are also prone to mistakes – again, as the Erika illustrated – and some have succumbed to the commercial opportunities provided by the increase in ship registers (including in land-locked countries). They are, however, operating in an intensely competitive environment and, despite the best efforts of the International Association of Classification Societies to achieve some degree of common quality standards, there is always the danger that classification societies which are not members may succumb to outside pressures, for example from shipbuilders and owners, to lower standards and hence costs. The best classification societies, like Det Norske Veritas (DNV), have invested considerable resources in money and “flying squads” of surveyors to try to eliminate substandard shipping. DNV targets vessels that “have bad class reports, port state control detentions, records of poor maintenance, blacklisted flag, are old and have steel thickness close to the limits, have questionable manager performance”. 5
Shipowners
Shipowners, of course, are ultimately responsible for the standard of the vessels they own, but the situation is more complex than it first appears. Frequently, a large number of other parties are involved in complex web of relationships, including ship financiers,
4 See “Surveys and negligence” (2004) 18 Maritime Law Association of Australia and New Zealand Journal 24-29. 5 Stuart Brewer, “Finding the holes in shipping,” (2005) 2 Classification News.
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banks, shippers, charterers, crewing agents, and so on. Greater transparency of vessel ownership, which is often deliberately concealed, might go some way to indicate who really is responsible for the substandard nature of individual vessels. Naturally, the banks and financiers need to be repaid, while the shippers and charterers are looking to save costs. In the past, it was not uncommon for the true nature of hazardous cargo to be mis- declared to obtain lower insurance premiums and reduce shipping rates. Nowadays, many charters and shippers are taking a greater interest in the standard of vessel they use. Further, as shipowners sometimes point out, there are shipbuilders whose warranty is shorter than that on most household appliances.
Marine Insurers
It is not in the interests of a marine insurer or its underwriters to cover totally unacceptable risks. At some point, the premiums simply cannot be set high enough to compensate for assumption of the risk and it is obviously commercially impossible to expect those assured who do not operate substandard vessels to accept this burden completely. This is especially the case with P&I insurance, which operates on a mutual basis. Having said this, P&I Clubs operate in precisely those areas, which are not attractive to commercial insurers.
What can marine insurers contribute to the fight against substandard shipping? Already the P&I Group Clubs have common rules about compliance with Flag State and classification society requirements. Their policies of insurance also require compliance with Port State regulations concerning survey, manning, safety equipment and seafarer qualifications. They should, of course, be feeding data into the APCIS and Equasis databases. Underwriters should be likewise accessing those databases to assess risk. Risk assessment is one area where more could be done, especially as it has probably been neglected in recent times because the insurance market is cost driven and there is a lot of competition in it.
It is too simplistic to call for marine insurers to refuse to insure substandard shipping as the OECD Maritime Transport Committee initially did. 6 The insurance industry insures against risk, and these are the very vessels that pose the greatest risk. If marine insurers refuse to cover the risks, someone else is going to have to pay for all the consequences of catastrophes, and not just environmental damage, but also loss of life, personal injury, cargo loss and cargo damage.
Until we have a global compulsory insurance regime and the ability to take those vessels that cannot obtain cover off the water – as happens with motor vehicles – vessel owners who have insurance cover removed will simply find another insurer who is prepared to provide cover or continue to operate without insurance.
6 The MTC has now decided to collaborate with P&I Clubs and the International Union of Marine Insurers (IUMI) in investigating the possibility of removing cover from substandard vessels while still covering the risks of the rest of the shipping industry.
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Under further consideration now is the possibility of subsidies to encourage shipowners and other parties to work for high standards, although the OECD Maritime Transport Committee is aware that these may distort competition – and the issue of subsidies has been a hot topic in European competition law for a long time.
The European Commission approach to require Certificates of Financial Responsibility, providing third parties with a right of action against a vessel’s P&I Club, presents its own problems. For example, a marine insurer would be liable until the end of the period of notice if it discovered ISM or survey deficiencies in a vessel it insured and gave the owner notice that it intended to terminate cover. This is hardly an incentive for the owner of a substandard vessel to correct deficiencies, knowing that he will not be liable.
Conclusion
The answer really does appear to lie in efforts from several different quarters and in achieving what is feasible first, although I think Port States actually have the most effective role to play.
It is possible to ban individual black-listed vessels, or particular categories of vessels (such as tankers more than 15 years old), from entering ports and some countries do so already. If enough Port States take such a stance, it will become impossible for shippers to ship their goods to those countries, charterers will turn to safe vessels and shipowners will be forced to either modernise or scrap their substandard vessels. A vessel which has nowhere to go is a commercial liability, regardless of whether it has a Flag State or not or whether it has marine insurance or not.
Perhaps the South Pacific nations present at this Seminar can provide a lead and ban all substandard vessels from entering ports in any member country.
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Overview Derelict and Beginning of time and Noahs Ark • Washington Legislature on Derelict vessels Abandoned • $2 for annual boat registration • $5 for foreign boat identification Vessels • Definition of derelict vessel by dept of Natural Resources •Prior to legislation on derelict vessels • World War 2 and Japanese invasion • Proliferation of fishing vessels in pacific region
Herbert Hazelman Former Chief Executive Officer Fiji Port Corporation Ltd Seminar on Substandard Shipping in the Pacific Island Region 13tht – 17th August 2007 – Suva, Fiji.
Overview (cont’d) What constitutes an abandoned vessel?
• Government efforts to attract foreign investments A vessel left on public property in a wrecked, • FTIB without proper consultation inoperative, or partially dismantled condition is • Substandard ships used by foreign investors considered abandoned if it has no identifiable • Polynesian Link owner or has no intrinsic value to the rightful • Inter-island trading and Fishing Vessel returns owner. • Exercise close control of vessel movement within port limits. • Fiji Trade & Investment Board • Fiji Islands Maritime Safety Administration • Fiji Islands Inland Revenue & Customs Association • Assessment of investors with ships as assets
Who is responsible What is a derelict vessel? for removing derelict vessels?
If any vessel in a wrecked, junked, or substantially The owner of the vessel is responsible for removing it dismantled condition is left upon any public from public waters. If the owner refuses, he/she waters or at any port or docked at private property may face criminal charges and possible fines. without the property owner’s consent, it may be declared a derelict vessel. Vessels entirely on land are not considered derelict.
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What if the owner cannot be identified What is the Port Authority’s process for or cannot remove the vessel from public waters? removal of a derelict vessel?
If the owner cannot be identified, the port authority Locate vessel Determine status of vessel or the relevant government ministry is authorized to remove any abandoned or derelict vessel when Report to FIMSA or DOE Is it a threat to navigation or environment? the vessel: • obstructs or threatens to obstruct navigation Does pollution threat exist? Port Authority notifies last owner • in any way constitutes a danger to the •30 days notice environment Owner responds •Proof of ownership • is deemed to be a hazard to public safety • is considered to be abandoned property. Arrange for maintenance and up-keep of vessel Owner does not respond
Vessel is classed as derelict
Port Authority calls for tenders for removal of vessel
How long does the process take? How is the removal of derelict vessels funded?
• The length of the process varies for each vessel. The Port Company levies a charge of $4.00 per 100/ • Some vessels may be removed after a few GRT for every foreign vessels that enters the days. However, due to legal proceedings and/or a lack ports of entry and $4.00 per GRT per annum for of funding, some derelict vessels may remain in all local registered vessel. public waters for years before they are removed.
What are the laws regarding abandoned and derelict vessels? CONCLUSIONS
• RMP of SPC to operate a data base of habitual offenders i.e. company name, address etc. • Legal Requirements – standardize and to have more clout for immediate removal (wrecks deteriorate over time). • Fiji Port Corporation Ltd • All PIC’s to have a derelict removal fund (Fiji- regulations Environmental Levy) so funds are readily • Customs Law(Wreck & available for removal purposes. Salvage Act Cap198.) • An in-depth look at a regional fund for •Marine Act. environmental purposes could be discussed.
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Derelict and Abandoned vessels
Thank You
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DERELICT AND ABANDONED VESSELS
Paper by Herbert Hazelman1
From the beginning of time, when the first ever notable vessel was built, we have had the problems of derelict and abandoned vessels. We read in the Holy Bible the scuttling of the Ark by Noah on mount Arrarat, after the big storm event.
In America, in 2001 and 2002, the Washington State Legislature passed two bills regarding derelict vessels. One provided the Department of Natural Resources with statutory authority to remove and dispose of derelict vessels; the other created a fund to finance those actions. Boat owners must now pay an additional $2 for annual boat registration and an additional $5 for foreign vessel identification. The Department of Natural Resources defines a derelict vessel as any vessel illegally left in state-owned waters for seven consecutive days that is threatening life or property, in danger of sinking or already sunk.
In Pacific Island Countries (PICs) we might have to resort to such measures to ensure the availability of funds for disposal purposes.
Prior to the legislation, no state body had statutory authority to address derelict vessels. The United States Coast Guard and the Army Corps of Engineers have federal authority to deal with vessels only when they pose a significant threat to the environment or navigable waterways. The Department of Natural Resources was forced to rely on owners or trespass and nuisance laws to initiate vessel removal, which often meant boats were left to degrade and damage the environment.
World War II, and the invasion of some PIC’s by the Japanese, with the subsequent counter action by Allied Forces, left some countries littered with rotting steel vessels of various sizes and full of toxic materials that is now starting to make its presence known by slowly polluting the environment in which it is located.
For PIC’s the proliferation of fishing vessels in our part of the world, due to over fishing elsewhere, has exacerbated the problem which although existed previously, did not degrade the environment to any great degree, due to the bio-degradable materials that were used by our fore-fathers.
In Fiji, Fiji Ports Corporation Limited has always had to deal with derelict and abandoned vessels which were to a large part the result of the relocation to the Pacific of large foreign fishing companies as stocks of migratory tuna dried up in the Mediterranean and the Atlantic.
Government in its efforts to attract foreign investments forged ahead through its investment arm, Fiji Trade & Investment Board, without proper consultations and with
1 Former CEO of Fiji Ports Corporation Limited, Suva, Fiji 1
116 ANNEX 14 little thought given to the results of failed investments, either through dwindling fish stocks or poor management control and high operating costs (to many licences and high fuel costs). In most cases sub-standard and older vessels were introduced by the foreign owners, which were later discarded due to the low resale values and the high relocation costs back to their originating countries.
In our first efforts at cleaning up the problem we were assisted greatly by the salvage operation of the Polynesian Link which overturned at Suva wharf whilst working containers, and in its recovery process the salvage equipment that was imported from Singapore, was, for a very inexpensive quote approved, to remove all the wrecks that existed up until then in the port, and disposed of in deeper waters.
This cleaned the port of Suva for a while until the next lot of abandoned vessels came about. My reading of the Fiji situation was, that the two business ventures that in the majority contribute to our derelict and abandoned vessel problem, Inter-Island trading and Fishing, the returns are not sufficient, to enable the investors to acquire brand new tonnages therefore they have to make do with very old and in most cases sub-standard vessels which is flogged and used until it has no value and then discarded wherever it is left, if it does not sink first.
I think, that for Fiji to tackle this ever present problem, we need to exercise close control within the four major agencies that are involved: Fiji Trade and Investment Board, the Fiji Island Maritime & Safety Authority, Fiji Ports Corporation Limited and Fiji Island Revenue & Customs Authority. Any investment that has ships as part of its assets should be dealt with by a task force of these agencies and in their deliberations they should systematically ask themselves the following questions:
What constitutes an abandoned vessel?
A vessel left on public property in a wrecked, inoperative, or partially dismantled condition is considered abandoned if it has no identifiable owner or has no intrinsic value to the rightful owner.
What is a derelict vessel?
If any vessel in a wrecked, junked, or substantially dismantled condition is left upon any public waters or at any port or docked at private property without the property owner’s consent, it may be declared a derelict vessel. Vessels entirely on land are not considered derelict.
Who is responsible for removing derelict vessels?
The owner of the vessel is responsible for removing it from public waters. If the owner refuses, he/she may face criminal charges and possible fines.
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What if the owner cannot be identified or cannot remove the vessel from public waters?
If the owner cannot be identified, the port authority or the relevant government ministry is authorized to remove any abandoned or derelict vessel when the vessel obstructs or threatens to obstruct navigation or in any way constitutes a danger to the environment or if it is deemed to be a hazard to public safety or is considered to be abandoned property.
What is the Port Authority’s process for removing a derelict vessel?
Once an abandoned vessel has been located, the port authority must determine if the vessel is a recovered stolen boat, lost property, or a derelict vessel. If the reported vessel constitutes a hazard to navigation within the port, then the port authority should be advised. Anywhere else other than a port should be reported to the Marine Department or The Department of Environment. If a pollution threat exists, the port authority mails a certified letter to the last known owner of an abandoned vessel and directs the owner to remove the vessel from public waters of the state within 30 days of receipt of the letter or provide proof of the legal transfer of the vessel’s ownership. If the owner complies with the request, the matter shall be closed. If these efforts fail, the facts are reviewed to determine if criminal charges are warranted.
If all efforts have been expended to have the vessel removed from public waters by its owner, the port authority designates the vessel as a derelict vessel.
Once the port authority has declared a vessel derelict and no proof of ownership exists, the port authority calls for tenders for its removal and funds are secured from the environmental levy for this purpose.
How long does the process take?
The length of the process varies for each vessel. Some vessels may be removed after a few days. However, due to legal proceedings and/or a lack of funding, some derelict vessels may remain in public waters for years before they are removed.
How is the removal of derelict vessels funded?
The Port Company levies a charge of $2.00 per GRT for every foreign vessels that enters the ports of entry and $ per GRT per annum for every local registered vessel.
What are the laws regarding the removal of abandoned, lost and derelict vessels?
• Customs Law, Fiji Port Corporation Ltd regulations • Customs Law • Marine Act.
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SEMINAR ON SUBSTANDARD SHIPPING IN THE PACIFIC ISLANDS REGION Outline of Presentation Some definitions Status of PICs legislations Why is it a problem? Case studies Suva Harbour Derelict vessels : legal perspective MV Karma case, 2003, Queensland, Australia Carter v Port of Auckland Ltd, 2005 (CA) Wreck Removal Convention 2007 The current status of international law Does not deal with WWII wrecks Tufuga Fagaloa Tufuga Derelict vessels – a global issue Regional Maritime Legal Adviser SPC/RMP Recommendations Conclusions REGIONAL MARITIME PROGRAMME - 1s t Regional Meeting of CEOs for Maritime Transport REGIONAL MARITIME PROGRAMME - 1s t Regional Meeting of CEOs for Maritime Transport
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Definitions Definitions continue - Derelict Wreck In a very poor condition as a result of disuse and neglect. Includes jetsam,flotsam,lagan,and derelict found in or on the shores or Originated from Latin derelinquere “to abandon" (Oxford Dict) bottom of the sea or any tidal water Vessel or cargo which is abandoned at sea by those in charge of - Shipping Act, PIMLAR it without hope on their part of recovering it or without an Wrecked vessel intention of returning to it: The Aquila (1798) 1 Ch Rob 37 at 40 Means any vessel that is wrecked,stranded,sunk or abandoned or which is lying on the seabed within the limits of the jurisdiction of Pasifika A vessel which is left only temporarily by her master and crew - Shipping Act, PIMLAR with the intention of returning to her is not a “derelict”, even Abandoned ship though her management may have passed into the hands of An abandoned ship is an immediate category between a ship and a salvors: Cossman v British America Assurance Co (1887) 13 wreck, because it is still capable of floating (like a ship) but, like a wreck App Cas 160 it has been abandoned by its crew. Usually a ship is abandoned because it heavily burdened with legal encumbrances and thus no longer of But a vessel, which is deserted by her master and crew with the interest to its owner…or the abandonment results from the absence of intention of abandoning her, does not cease to be a “derelict” crew aboard or the non-existence of measures of custody or because they subsequently change their intention and try to manoeuvring… recover her: The Sarah Bell (1845) 4 Notes of Cases 144 at 146. See Tetley W.,Maritime Liens and Claims (2nd ed) at 107 See E.R.Hardy Ivamy, Dictionary of Shipping Law, London, But is the abandoned factor effective and practical? Butterworths, 1984 MV Karma case
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Status of some PICs Legislations Why is it a problem? Vanuatu’s Derelict Vessels (Disposal) Act 1988 To provide for the disposal of derelict vessels found within the waters of Vanuatu. Potential threat to the marine environment Other PICs have similar provisions although obsolete Fiji’s Seaport Management Act 2005 Public nuisance (an eyesore) under tort law CEO is given power to order the removal of derelict and dangerous vessels upon approval of the Board of Directors. Notice provisions are to be followed as well. Economic aspect – derelict vessels taking up berthing spaces with unpaid dues Most PICs Shipping or Marine legislations have provisions specifically on “Wreck and Salvage” Some instances – navigation hazards to users of A Receiver of the wreck is appointed, outlined duties to preserve the wreck, notice provisions for removing or selling wreck the sea (especially if no navigation aids used) Assumption – shipowner can be accessed easily, but what happen if owner has absconded / nowhere to be found Attracting potential criminals eg. Drug trafficking, PIMLAR – provisions on Wreck and Salvage Similar provisions to above thieves PIMLA currently reviewing PIMLAR Legislations sometimes inadequate and obsolete Costs of equipment and expertise REGIONAL MARITIME PROGRAMME - 1s t Regional Meeting of CEOs for Maritime Transport REGIONAL MARITIME PROGRAMME - 1s t Regional Meeting of CEOs for Maritime Transport
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Wreck Removal Convention (WRC) 2007 Some Case Studies Current status of International law on wreck removal: Prior to adoption of WRC there was uncertainty with relevant Suva Harbour and others international law applicable to removal of wrecks beyond national Section 27 Seaports Management Act 2005 is unchallenged in light of abandonment issue as highlighted in the NZ Court of Appeal decision below jurisdiction Some cases where owner paid overdue accounts to claim derelict vessel back but parts went Right to intervene under international law missing. However, port state control and coastal state powers under LOSC 1982 – provides jurisdiction to state parties to exercise control over vessels MV Karma case, 2003 – Queensland, Australia within its territorial waters Marine incident – expose inadequate laws Changes to legislation WRC now provides practical guidelines in dealing with wrecks within Damage to marine environment and urgent swift action outweighs need to notify owner. “Convention Area”. Although wrecks within territorial waters are excluded Therefore, powers given to Authorities to notify owner of seized property and he can claim an “opt in” clause is provided as well (Art.3(2)). That is, same within 28 days guidelines can be utilised within territorial waters if state party decides to Decision of Authorities is subject to appeal however Amendments to legislation still in accordance to principles of natural justice “Wreck” is defined under Article 1 as following upon a maritime casualty, means: (a) a sunken or stranded ship; or Carter v Ports of Auckland Limited, (CA)2005 (b) any part of a sunken or stranded ship, including any object that Ports of Auckland (Respondents) gave notice and later sold vessel pursuant to Harbours Act is or has been on board such a ship; or Carter (Appellants) seeked redress from Court of Appeal that its vessel (Nivaga) was not abandoned at the Port (c ) any object that is lost at sea from a ship and that is stranded, State of abandonment must exist before power to remove derelict vessel, otherwise it is sunken or adrift at sea; or conversion (d) a ship that is about, or may reasonably be expected, to sink or to strand, where effective measures to assist the ship or any
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WRC 2007 - continue WRC 2007 - continue WWII wrecks not covered Wrecks of warships and state owned non-commercial vessels are placed outside terms of the Convention Rights and Obligations cont – Sensitive issue as sunken military ships are considered final resting place of crew Financial obligations – (Art.10) Convention for the Protection of the Underwater Cultural Heritage, 2001 – to treat such wrecks as underwater cultural heritage but not necessarily to remove the Shipowner is liable for costs of locating, marking and same removing wreck compare to limited cases under CLC and Rights and Obligations Warning mariners of location of wreck (Art.7(1)) other liability conventions where owner is not liable (war Determination whether wreck is a “hazard” (Art.6) hostilities) If yes, then mark and publish particulars of the wreck (Art.8) Shipowner has right to limit liability in relation to LLMC 1976 Wreck removal – (Art.9) Affected state to inform ship registry and other states affected by the wreck Art.12 – Shipowner has the obligation to “maintain insurance Shipowner - ..”shall remove a wreck determined to constitute a hazard” or other financial security…to cover liability under WRC (very Shipowner may enter into a contract with salvor but permits Affected State to lay down conditions so that proceeds are consistent with safety and environmental similar obligation as under CLC, the HNS Convention) considerations Affected State may remove wreck immediately and charge owner, such actions Art 12(11) – claimants allowed against insurer directly but must be “proportionate to the hazard” insurer in defence may say wreck was caused “by the wilful Such measures by Affected State shall not go beyond what is reasonably necessary to remove a wreck and shall not unnecessarily interfere with rights and misconduct of the owner himself” interests of other states and of any persons concerned
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“Opt in" clause – Art.3(2) Derelict vessels – global issue Useful mechanism given most derelict vessels In Queensland – the issue was that the only are found within territorial water: means available to State Government to deal Once state party wish to extend application of WRC to with abandoned, wrecked or derelict vessels is territory it must do following: when they can properly categorised as Shall notify Secretary General,IMO Certain provisions of WRC not applicable (Art.4(4)) “abandoned” property Eg.does not have to notify ship registry, other affected MV Karma case states on hazards caused by the wreck The registered owner may contract salvor to remove USA – Wreck Removal Programme wreck. And Affected state may impose conditions to Maritime Ministerial Communiqué, Apia, April ensure removal is safe and protection of marine environment 2007 Notification withdrawal to Secretary General,IMO Priority action within the region (Art.3(5))
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Conclusions Some Recommendations Prior taking action against derelicts or wrecks it is critical Need to develop good policy direction for Government to to go through due process of notification address issue Principles of natural justice Review and draft adequate and robust legislation Ports may claim against the vessel (actions in rem) under Any such legislation must take due regard of principles, rights and obligations under WRC 2007 especially if party to it admiralty jurisdiction for unpaid services Carter v Ports of Auckland Ltd (POAL) led to changes to the law After removal notices then relevant authorities can If abandonment element is not met then ask Marine Administration to use its legislation for removal of wrecks remove vessel with costs to be recovered from owners Seek injunction against owners What about if owners are bankrupt or absconded? Perhaps to consider making contravention of a All relevant authorities to put together an MOU to deal condemnation order an offence to discourage with such issues and more to prevent from happening irresponsible vessel owners from moving potentially dangerous vessels. This will enable the power to Port Authorities may also seek financial undertaking or condemn and destroy or dispose of a vessel insurance cover from owners Wreck removal programme – eg. USA
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Questions
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Derelict Vessels Derelict Vessels Security Perspective Security Perspective Pacific Islands countries port authorities are currently responding. Existing ordinances are under scrutiny to avoid overlapping Unnecessary tussles continues accumulating dues Vessel may sink and become a hazard to navigation. Likelihood of damage to the environment. By Captain Timoci Tamani Costly exercise of salvaging a sunk derelict vessel. Maritime Port Security Officer Regional Maritime Programme Loss of revenue from this public nuisance taking up Secretariat of the Pacific Community prime anchorage space is also becoming prevalent Suva, Fiji Islands
SPC Regional Maritime Programme SPC Regional Maritime Programme
Derelict Vessels Derelict Vessels Security Perspective Security Perspective Since the events of 9/11 and introduction of the International Ship and Port Facility Security (ISPS) Security system of vessels and security system of Code, port authorities have now put in place the harbour are continuously reviewed to stay measures to mitigate factors that could give rise to relevant to varying terrorist tactics. terrorist acts and activities. Derelict or abandoned vessels and their lack of The Port Security Assessment & Plan has put derelict monitoring will reduce early detection of any vessels under scrutiny as they do have the potential to be used for illegal activities and terrorism. intention for use as platform to launch attacks against visiting cruise liners, tankers, warships This threat is real and should not be lowly prioritised. and other high profile targets. Measures needed to be in place to mitigate identified risks.
SPC Regional Maritime Programme SPC Regional Maritime Programme
Derelict Vessels Derelict Vessels Security Perspective Security Perspective
The operating tactics of maritime terrorists against Importance and value of target – dependent on the ships alongside and against vessels underway effect to be achieved by terrorists, whether it be have their specific features. catastrophic loss of life or ecological disaster or just to Motivation and operational experience –the attack make a statement. on the US Cole and French flagged tanker Limburg Security systems of vessel and port –can be demonstrated that the number is growing. infiltrated using readily accessible modern technology. Class and type of ship – increased tourism has seen Equipment easily acquired on the commercial market the increase in cruise liners calling into the regions helps to increase the effectiveness of the terrorist tourist ports. Cruise liner passengers are mainly operations. from countries heavily committed to the campaign against terrorism.
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Derelict Vessels Derelict Vessels Security Perspective Security Perspective
1. Derelict vessels can be quickly utilised by locals in 1. Local firm contracted to implement designed various ways throughout the region - criminal activity impounding procedures. hideouts, prostitution and transit points for contraband 2. Security for each impounded vessel are still provided movement. by the ship-owner/operator. This contract with the 2. Port authorities that have impounded derelict vessels local firm transfers the responsibility of physical have experienced problems related to criminals monitoring/security of the seized vessels from the having access to these vessels. port authority.
SPC Regional Maritime Programme SPC Regional Maritime Programme
Derelict Vessels Derelict Vessels Security Perspective Security Perspective
Some derelict vessel owners have returned to pay the Customs, Immigration and Quarantine processes port authority all their dues and requested the vessels maybe bypassed by people engaged in smuggling. return in its original state. Problem begins when Fishing vessels tie up to derelict vessels in well equipment or machinery parts of the vessel are found sheltered locations within the harbour. Fishing missing. The owner then commences legal action vessels that have reported machinery failure and in which further delays the removal of the vessel. need of machinery parts have later taken to sea again Fuel oil, ship stores, portable machinery and other without any machinery parts delivered from shore expensive equipment and parts can be incentive for agencies. criminals to attempt entry onboard derelict vessels. If machinery parts can be transferred between vessels without customs knowledge then other products could be landed as well, using the same means.
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Derelict Vessels Security Perspective
Thank You
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Secretariat of the Pacific Community
SEMINAR ON SUBSTANDARD SHIPPING IN THE PACIFIC ISLANDS REGION
Suva, Fiji, 13 – 17 August, 2007
DERELICT VESSELS – SECURITY PERSPECTIVE
Paper by Captain Timoci Tamani, Maritime Port Security Officer, Regional Maritime Programme, SPC, Suva, Fiji
Overview Various Pacific island countries’ port authorities are currently responding to widely expressed sentiments from local environmental-conscious and concerned citizens on the increasing number of derelict vessels that lie within their harbour boundaries.
Existing ordinances are under scrutiny as overlapping legislation tend to easily develop into unnecessary tussles as to who has jurisdiction over the vessel, and whilst that goes on, the vessel in question continues accumulating dues or it may simply sink and become a hazard to navigation within the port area with the likelihood of damage to the environment. The cost of salvaging a sunken derelict vessel is an extremely expensive exercise. Loss of revenue from this public nuisance taking up prime anchorage space is also becoming prevalent.
Since the events of 9/11 and introduction of the International Ship and Port Facility Security (ISPS) Code, port authorities have now put in place measures to mitigate factors that could give rise to terrorist acts and activities. The Port Security Assessment & Plan, a requirement of the ISPS code, has put derelict vessels under scrutiny as they do have the potential to be used for illegal activities and terrorism. This threat is real and should not be lowly prioritised. Measures need to be put in place to mitigate identified risks.
Security Perspective The security systems of vessels as well as the harbour are continuously reviewed to stay relevant to varying terrorist tactics. Derelict or abandoned vessels and their lack of monitoring are a possible platform to launch attacks against visiting cruise liners, tankers, warships and other high profile targets.
The operating tactics of terrorists against ships (alongside and against vessels underway) have some specific features. The use of particular tactics depends on many factors: Motivation and operational experience – the attack on the US Cole and French flagged tanker Limburg demonstrated that the number is growing. Class and type of ship – increased tourism has seen the increase in cruise liners calling into the region’s tourist ports. Cruise liner passengers are mainly from countries heavily committed to the campaign against terrorism. Importance and value of target – dependent on the effect to be achieved by terrorists, be it catastrophic loss of life or ecological disaster or just to make a statement. Security systems of vessel and port – can be infiltrated using readily accessible modern technology. Equipment being easily acquired on the commercial market helps to increase the effectiveness of the terrorist operations.
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Criminal Activities Derelict vessels are quickly utilised by locals in various ways throughout the region. Common cases have been criminal activity hideouts, prostitution and transit points for contraband movement.
Port authorities that have impounded derelict vessels have experienced problems related to criminals having access to these vessels. Local companies with expertise in towing, sinking and scraping operation have recently been contracted by port authorities to take impound derelict vessels and berth them at a designated area. Security guards for each impounded vessel are still provided by the ship- owner to stop unauthorised access. This contract with the towage/salvage company transfers the responsibility of physical security of the seized vessels from the port authority.
Some derelict vessel owners have returned to pay the port authority all their dues and requested for the return of the vessel in its original state. Problem begins when equipment or machinery parts of the vessel are found missing. The owner then commences legal action which further delays the removal of the vessel.
Fuel oil, ship stores, portable machinery and other expensive equipment and parts can be incentive for criminals to attempt entry onboard derelict vessels.
Border Management issues Customs, Immigration and Quarantine processes maybe bypassed by people engaged in smuggling. These authorities are the main facilitators and enforcers of border entry procedures. Fishing vessels continue to tie up to derelict vessels anchored in well sheltered locations within the harbour. Fishing vessels that have reported machinery failure and in need of machinery parts have suddenly taken to sea again without any machinery parts delivered from the shore agencies. If machinery parts can be transferred between vessels without the Customs knowledge then other products could be landed as well, using the same channel.
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SEMINAR ON SUBSTANDARD SHIPPING IN THE PACIFIC ISLANDS REGION
A PAPER ON THE CONSIDERATIONS FOR SHIPOWNERS IN THE PURCHASE OF SUITABLE VESSELS FOR THE DOMESTIC SEA TRADE IN FIJI.
PRESENTED BY JUSTIN SMITH MANAGING DIRECTOR CONSORT SHIPPING GROUP OF COMPANIES
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Regional delegates and participants,
As in any business and investment environment, the key factors influencing the level of confidence for investment in a product or market is factored against the key indices of outlay, risk, security and potential return on investment. Finding a suitable conduit, in this case a vessel, is only a part of the overall tool kit required.
The procurement of suitable vessels for trade in the domestic sector be it a landing craft, ro ro or conventional vessel, is not a technically difficult exercise. Thankfully today with the advent of the internet and associated web based businesses, the world is definitely a smaller place with brokers and independent sellers basically a click away.
Hence it is a relatively simple process to find suitable candidates for purchase or charter to undertake the varied shipping roles. However the underlying problems faced by the domestic shipping fraternity in Fiji comes from the limitations, both physical and political, that hamper the full establishment of a successful, vibrant and progressive shipping industry to the islands of Fiji as a whole. These limitations, which have been long identified, are the sole reason for the state of a poor and fragile shipping industry.
In assessing the suitability of vessels for domestic trade, Fiji like the majority of South Pacific Island nations, suffers the problem of broadly spaced, small populations with limited resources or trading commodities. A 1997 UN Economic and Social Commission for Asia and Pacific Study clearly identified this common problem stating:
“ Inter-island Shipping services play a crucial role in providing the fundamental means of transportation in the South Pacific, however the services are handicapped by long distances between sparsely populated islands and the seasonal demand for movement of small quantities of cargo and continuous demand for passengers transport reaching peak levels at certain times. The limited revenues available to shipowner places them in a financially difficult situation in which they are often unable to replace obsolete and sometimes unsafe vessels. As a result, the average age of the fleet in the Pacific is excessive and even those brought into service are often of an age and condition which are far from ideal.”
In an attempt to assist countries in overcoming some of the problems, ESCAP, with funding from the Japanese Government, undertook a series of projects from 1990 through to 1998 aimed at improving shipping and port services in the South Pacific.
As one of the series of projects aiming at the improvement of shipping services in the South Pacific, a study was undertaken within a project entitled ‘Development of Policy Options for Replacing Ageing Ships in the Pacific Fleet’. The projects aims were to:
a) Promote the efficient development of inter-island shipping services in the Pacific sub-region.
b) Develop optimum service and route structures to determine the number and types of ships required to replace the existing ageing fleet;
c) Develop regional cooperation in the provision of inter-island shipping services thereby improving the viability of the industry.
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To collect data and information, ESCAP missions were undertaken in the Cook Islands, Fiji, Papua New Guinea, Samoa, Solomon Islands, Tonga and Vanuatu with the purpose to study the current situation at that time surrounding the domestic shipping industry, volumes, routes and viability. Desk research and studies of available materials on shipping in other South Pacific countries was also undertaken.
The ESCAP report highlighted the fact that given the importance of shipping services and the scale of the problems to be addressed, the South Pacific countries themselves would need to take action to facilitate the healthy development of domestic fleets if the island economies were to be sustained.
The 1997 ESCAP proposals put forward for the consideration of the South Pacific Governments and ship operators were summarised briefly as follows:
1. A strategy for the replacement of the oldest ships in the domestic fleet (vessels aged greater than 20 years) by means of a five-year construction / purchase programme to extend through the period 1998 – 2002.
2. A feasibility study on the possible establishment of a regional ship financing institution or similar mechanism to provide funding for the programme through a system of co-ownership by the financing institution and borrowers (ship operators).
3. Linked to this proposed programme, proposals to upgrade domestic shipping services by:
- Elimination of over-tonnage through enforcement of trade licensing controls, introduction of a franchise scheme and encouragement of “scrap and build” policy by national governments.
- Improvement of safety standards throughout domestic fleets.
- Assistance in upgrading of maritime training to meet current international requirements.
This study and report, as well as many others produced over the past 20 – 30 years on the plight of domestic shipping in Fiji, lay dormant on Ministry shelves gathering dust.
Whilst the guiding framework for the revitalisation of the Inter Island shipping industry has always been well stated by past administrations and Governments on the back of these consultant reports, the various strategies of successive Governments have generally not been implemented and have been nothing more than ink on paper, much to the demise of the industry as a whole.
As far back as 1981 the concerns of the industry were already prevalent and clearly identified in a UNDP Inter Island Shipping Services study. This study identified at that time that:
- The private sector fleet is rapidly aging (average age of 22 yrs) while operating costs, particularly for repairs, cargo handling and fuel continue to escalate.
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- The general freight market environment is characterised by destructive competition (too many ships for too little cargo) and by inadequate services to some outer islands. - Off setting revenue increases (freight rates) are limited by the Prices & Incomes Board policy, and the net result is a profit squeeze on ship operators. - The short term effect of the above is to discourage shipping investments, while the long term effect will lead to increasing reliance on public sector shipping services. - The current system used by Prices & Incomes board (PIB) for evaluating requests for freight rate increases is unsatisfactory because no uniform method is used to submit accounting data, nor comparative efficiency yardsticks employed.
Amazingly these concerns still ring true today some 26 years after this report was published. Furthermore these key elements together with the balance of 143 pages of data, recommendations and policy options were published 5 years before the enactment of our 1986 Fiji Marine Bill.
Further specific Government strategies were mooted between 1986-1990 to implement the findings and hence improve and revitalise the Industry and were published in the Fiji Government Development Plan for that period. The key strategies and policies identified included:
1. Establishment of an appropriate route licensing system to ensure those operators provide adequate services to all Parts of Fiji.
2. Establishment of an appropriate ship Financing scheme to encourage private sector operators to replace obsolete vessels.
3. Formulation of a suitable Inter Island statistical information system for the further development of Inter Island shipping.
4. Revise the existing freight rates and subsidies to establish an appropriate tariff structure.
5. A phased withdrawal of Government vessels from commercial services.
6. Continuation of the jetty construction programme.
7. Establishment of an appropriate commercial, institutional arrangement for the Government Shipyard and related facilities.
8. Upgrading of Ports to cope with changing technology, and increasing demand for services and to improve navigational facilities.
To date there has been little emphasis towards the full implementation of the strategies endorsed by Government some 20 years ago.
Amazingly, although we have been able as a nation to clearly identify the root of our shipping problems as well as potential solutions to these problems for the past quarter of a century, it seems that we as a country and successive Governments have not had the political will or resolve to take up the numerous and repeated
A PAPER ON THE CONSIDERATIONS FOR SHIPOWNERS IN THE PURCHASE OF SUITABLE 4 VESSELS FOR THE DOMESTIC SEA TRADE IN FIJI. 129 ANNEX 17 recommendations to pave a course for the establishment of a successful shipping industry in what is an essential service for our Island bound populations.
Instead, through a lack of vision, dedication and political will, the industry was left to its own devices and floundered to a state where services to non trunk routes are whimsical to say the least. In this environment successive Governments have opted to send the fate of the industry back to another paid consultant to conduct the same interviews, review the same reports and regurgitate a slight variant of the same findings being dished out to us over the last 25 to 30 years, whilst collecting their handsome fees for this exercise in regurgitation.
Establishment of a route licensing scheme:
Route licensing has yet to be implemented in Fiji although the Minister has had the powers under section 158 of the Fiji Marine Act since1986 as part of the Coasting Trade License. Numerous consultant reports and studies have consistently encouraged the implementation of route licensing so as to allow for the rationalisation of the industry and to allow operators minimal security in the industry to continue to invest and improve their service.
It is interesting to note that all other sectors of the domestic transport industry in Fiji are controlled by route licensing policy including bus operations, domestic airlines and taxis. Domestic shipping is the only transport sector not controlled by proper route licensing regulation with this being a major contributing factor to the disparity and lack of regular service received by many of our maritime Islands.
Currently Government has no control over levels of service, or routes and schedules offered by shipping companies. The current system of issuing Coasting Trade licenses is open and totally unplanned or regulated in sharp contrast to all other transport sectors which have specific licenses and controls in place for specific and predetermined routes and schedules.
The problem of the broader maritime sector is the lack of shipping services to small island groups. New operators are able under the current open license system to enter the market and target trunk and established routes in the hope of ‘hijacking’ a developed route for profit motive. New entrants to the industry ignore marginal or unserviced ports which are in the most dire need of service whilst saturating trunk routes making these established trunks less and less viable to operate on given the over tonnage problem that develops. The overall effect is the diluting of viable routes to a nonviable level developing to a point where only 1 operator survives, reverting the service back to a monopoly situation.
Route licensing I believe would be able to control and regulate effective route distribution and scheduling, increasing the ports that gain service, level and quality of service and allow proper planning and distribution of services, rather than the destructive competition that occurs currently on trunk routes, damaging the industry and further long term investment potential of operators.
Failure by Government to offer some minimal levels of investment or route security will lead to lower levels of confidence and hence investment by ship owners into the industry. Lack of confidence will lead to the diminishing condition of vessels and safety concerns given the lack of security and returns on investment and ultimately a substandard level of service.
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Government must be weary that investors will only continue to invest and improve their service and quality of service if the returns and security are there. The current scenario does not encourage investment or improvement of services which may have critical implication for the future of the industry unless addressed.
The ESCAP study referred to earlier in this paper, also reported that “A Route Licensing System was proposed in a study carried out in 1980’s but has not been adopted. We believe that a further review of the ‘Outer Island Service Franchising Scheme’ is in process, being the 3rd such review in the 10 year history of this program without improvement or achievement of the goals set under this scheme.”
In comparison the report highlighted this on our neighbours Papua New Guinea; “The country contains almost 50 per cent of the South Pacific region’s total fleet. All domestic services are now provided by private companies, the Government Fleet having been disposed of in the late 1980s. Inter- main port cargo services are provided by a comparatively modern fleet, including several small container carriers. However, passengers in the New Britain/New Ireland area are mainly carried in aged roll on – roll off passenger ferries. Some small craft, many owned by small operators, providing ancillary and feeder services throughout the islands. All vessels operate under a licensing system introduced by the government in the 1970’s. Freight rates and passenger fares are controlled by the government.”
It is clear from my mind that a well thought out Route Licensing system for domestic shipping in Fiji is the right step to take to enhance the level of service, standard, reliability and safety of our domestic sea transport system.
Shipping Franchise Scheme.
Whilst this policy was seen as having the potential to be the saviour of the industry for remote island groups, the way in which the program was manipulated between 1996 to 2004 has made this debacle worthy of a senate enquiry. Since inception in 1996 tens of millions of taxpayer dollars were injected into this program with out one key performance indicator being achieved on any of the routes serviced under the scheme. The political football was used as a quick way to gain political favour via provincial companies gaining access to business ventures and bypassing the rigorous scrutiny or experience required by private sector applicants via this system. Tenders were manipulated and awards made, on occasions to companies that did not exist or own vessels or in one instance to a company that did not submit a tender by the official closing date. At least $12 million dollars of tax payer’s money was spent without any performance, cargo and passenger flow information or improvements to service being made over this period. In the political scramble just before each election, dramatic speeches and promises were made to provinces, where the rules of the franchise program became secondary to provincial alignment and political posturing which dictated the award rather than best business practice and meeting the terms of the tender system.
This was a common theme during this period with politicians playing between the emotive power of provincialism and self determination through the banner of the ‘blue print’ policy. The concept whilst commendable was far from realistic, resulting in millions of lost tax payers funds and the ultimate failure and retro grade of service back to non existent. The fall out being compounded by these provincial businesses suffering massive losses as well as reverting to a state of receiving no shipping service at all.
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On an upside the franchise system has been reviewed and resurrected over the past 2 – 3 years under the watchful eye of the current GGC Chairman, although I am sure that he would agree with me that the political experiment for which the franchise was used from 1996 – 2004 deprived the nation and island populations of a critical and crucial resource which could have resolved the shipping dilemma if properly awarded and administered from the start of the franchise program.
PIB Freight Tariff All freight rates in the Inter Island shipping industry are controlled by the Prices and Incomes Board. The last increase was awarded in 1992 with no formal increases approved since that date. The dramatic collapse of many private companies could be partly contributed to the uneconomical levels of freight set by PIB, as well as the continued inflation of costs borne by shipping companies weighed against a stagnant income level. It is ironic that each of the reports which I have related to since 1981 have all identified the PIB template and the lack of regular review and flexibility of these tariffs as being one of the major contributing factors in the demise and restriction of the industry, however no Government since 1992 has addressed this glaring anomaly.
I am aware that domestic operators have been trying for at least the past 10 years to have the Counter Inflation Act (Chapter 73) , Counter Inflation (Price Control) (Ship Freight Rates) (No. 14) Order 1992, reviewed as operators have not been able to effect an increase in domestic shipping freight rates for the past 14 years. The transport Industry has been hard hit over this period suffering devaluation, massive fuel cost increases, increase in Insurance covers, competition from Government vessels, inflation, effects of a weakening currency against our trading neighbours for parts and specialised services as well as the business effects from political instability.
It is unreasonable and irresponsible for Government’s to control and freezer service rates given that they obligingly allow the fuel companies regular cost adjustments which directly affect the shipping fraternity as a major part of our operating cost. This locking of rates and the flawed nature of the shipping template model as a whole is directly responsible for the collapse of services to the outer islands where the viability of gaining revenue in freight to cover basic operating costs disappeared in the mid 1990’s without being addressed by the Government and PIB at that time.
Understanding the industry as a whole and the fundamentals of basic supply and demand can easily rat out the problems for all to see in plain daylight. Simple mathematics dictates that X + Y = Z although the PIB and Government have hobbled shipping companies with a maximum freight tariff rate system that has remained unchanged since 1992. The fact of the matter is that the cost of shipping goods from point A to point B has remained unchanged for the past 14 years, unbelievable but true. That would clearly relate to why there were numerous successful shipping companies operating prior to 1992 with basically all ports in Fiji being adequately served, compared to only a handful of shipping companies in existence today, the majority of which are near bankruptcy with many islands without adequate service.
Infrastructure and Training
Navigation aids are required to assist ships navigate around the islands many treacherous reefs and passages although for many years there has been a steady decline in the number and quality of navigational aids for domestic operators. It is noted that Government has been attempting over the past 3 years to remedy this although there is still a lot of work to be undertaken. Many domestic companies have A PAPER ON THE CONSIDERATIONS FOR SHIPOWNERS IN THE PURCHASE OF SUITABLE 7 VESSELS FOR THE DOMESTIC SEA TRADE IN FIJI. 132 ANNEX 17 had to limit their operations to only daylight hours at some ports due to the lack of operational Navigational aids, affecting them financially. It is noted that all registered ships pay an annual fee of Light Dues, these dues are supposed to be used for the improvement and maintenance of all navigation aids in Fiji although it is clear that these funds had not, for some time, been put to the use for which they were collected. Some local ship owners have gone to the extent of putting in their own markers so as to assist with navigation on their regular routes.
Another mater of grave concern is the need to urgently improve the competency and professionalism of the Seafarers graduating from the Fiji Maritime School. These seafarers are valuable to the shipping industry in Fiji with our industry fully dependant on the quality and standard of the education received by the graduates. This area of our National training is in desperate need of an overhaul with compliance to internationally accepted training methods, syllabus content and examination practices. It is well known that the Maritime school is in need of assistance in this area which we hope will be urgently addressed as the graduates from this institution are responsible through their training for the safety and preservation of life of passengers whilst at sea.
The lack of effective planning and effective maintenance by the Public Works Department over the past 20 years in building new jetties or maintaining existing ones is of ongoing concern. Many outer island jetties are in a very poor state of disrepair with slab sections damaged, cracked or missing altogether. Many have no bollards to secure vessels to and pose a serious risk to vessels and the public at large. The majority of recently constructed jetties cannot be used by vessels trading to the outer islands due to poor site selection and lack of consultation during the design phase with ship operators. The industry has for a long time requested the improvement and standardisation of local jetties so that loading and discharging passengers and cargo could be made easier and safer.
The establishment of jetties allows operators greater cost effectiveness and faster turn around in voyages instead of waiting on tidal operations with cargo boats. The marriage of jetties and roading infrastructure planning is critical for the success of the industry and the Islands as a whole.
Ship Financing Scheme
Government’s failure to seriously adopt the strategies set some 15 - 20 years ago has led to the poor state of the Industry with Government funds being used to upgrade the Marine Departments fleet which on average is 10 years younger than the private domestic fleet. We strongly believe that serious attention should be placed on the upgrading of the private fleet operating throughout Fiji for the betterment of the people of Fiji whom Government has a responsibility for.
The implementation of suitable funding and ship building programmes should not only be restricted to the Government Fleet but should also extend to cover and entice the private sector to upgrade their services. This would in turn lead to a more reliable, efficient and economical service for the long-term, which better serve the Island population, which is in line with Governments overall strategy.
Numerous reports and Government strategies have related to the establishment of an integrated ship financing and replacement strategy with a ship building and outfitting industry in Fiji although again this is an area where there has been no progress along such a facility being established over the past 20 years. This failure to implement such a program has also had a dramatic effect on Governments ship A PAPER ON THE CONSIDERATIONS FOR SHIPOWNERS IN THE PURCHASE OF SUITABLE 8 VESSELS FOR THE DOMESTIC SEA TRADE IN FIJI. 133 ANNEX 17 repair, building yard and heavy industries sector which has been on the verge of collapse for numerous years due to the lack of business stimulation or establishment of a financial climate for domestic ship building activities to exist.
Summary
The demise of the domestic shipping industry for the smaller island groups is almost inevitable given decades of neglect from successive Governments and lack of strategic importance by the specific Ministries and authorities assigned the duty of ensuring viable and effective long term structure and development of the industry.
For the past two and a half decades the inter island fleet of operators have been passed around like a hot potato between Government departments and Ministries, each of which would blame the other for the slow but constant deterioration of this essential transport service.
‘Ignorance is bliss’ seems to have been the unspoken motto for these telling years. That is until now. Domestic shipping services to the remote groups are on the edge of total collapse and bureaucracy is now trying to understand and comprehend the phenomenon which has seen domestic shipping ignored for so long.
Like a forgotten language, Government is now trying to come to grips with an industry which it has regulated and controlled with out dated and under utilised laws and legislation that seems to have failed everyone. Lawyers, Government and authorities all seem to have differing views and understandings of what is meant and who is responsible but all agree that it is a mess.
Many unresolved issues have remained, regardless of the untiring reminders launched by the industry to the Governments over the years. Very little seems to be achieved and the importance of the industry quelled every year after a National Transport Summit or Transport Conference. These communal gatherings of heads seem to discuss and acknowledge problems but not resolve and rationalize remedies. The constant battle between provincialism, political influence and responsible business rationale collide at the expense of the tax payer, the community and the country as a whole as nothing changes for the better with words and business cards being all that is exchanged.
The industry is literally dying of neglect and old age. The paradigm of providing improved services for our outer island inhabitants for a penny or shilling just doesn’t add up and hasn’t for a long time. In a world of skyrocketing costs and inflation the inter island shipping Industry has stood stagnant for 20 years in it quagmire of governing regulation and frozen freight rates.
Urbanisation and the series of political upheavals have depleted the outer islands and small townships of populations and thus critical freight movements. Government wants competition on routes but does not understand that the cake is relatively small and operators cannot continually receive thinner and thinner slices and expect to survive or even grow.
Successive Governments have not been able to comprehend or were too concerned about the impact upon potential voters and address the fact that in 1992, the PIB formula may have been adequate, but this same equation definitely is not the case some 14 years later with the dramatic increases in costs. This basic failure in addressing business inflation over 14 years is an integral part to the demise of the
A PAPER ON THE CONSIDERATIONS FOR SHIPOWNERS IN THE PURCHASE OF SUITABLE 9 VESSELS FOR THE DOMESTIC SEA TRADE IN FIJI. 134 ANNEX 17 industry, the non viability of island service and the major contributor to all of the problems within the industry.
It has always been said that the Private sector is the engine room of the country, driving investment and innovation. This is only the case if the private sector is allowed to develop within a positive political and regulatory framework allowing industry to develop and grow their ideas and businesses in a partnership arrangement with Government.
We look forward to a positive change and the ability of working together with the responsible Ministries and authorities in turning this Industry around. The need to utilize the wealth of experience and knowledge domestic operators have in the field of inter island shipping is crucial in the success of this venture.
Future Governments need to seriously address the long term failures of previous administrations and actively address the issues raised in this paper and those which have been endorsed by numerous studies and recommendations over the past 26 years in order to avert the continual decline of a most essential service to our Island nation.
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ROLE OF SHIPOWNER & SHIPMASTER INTRODUCTION CREW Before going into the depth of training and CREW development of crews, it is imperative for DEVELOPMENT Management to evaluate and assess the level of competence of each crew members (Officers & to Ordinary Seaman) in order to identify training needs for Management to develop and IN-HOUSE administer the prescribed proper training TRAINING programs required and ensure the training given conforms to the internationally by Papalii M Willie Nansen MANAGING DIRECTOR/CEO recognized standards. Samoa Shipping Corporation Limited
TYPES OF CREW DEVELOPMENT & TYPES OF CREW DEVELOPMENT & IN-HOUSE TRAINING IN PRACTICE IN-HOUSE TRAINING IN PRACTICE
Management skills for all Officers Level, Passenger Vessels Crews should improve their both on Deck/Engine room to be skills on Public Relations (PR), Hospitality, Tour improved; Guide similar to those in the Hotel Industry
the responsibilities of Captains and other Officers onboard the With the growing number of tourist utilizing our Ferry Service, it vessels no longer limit to sailing the vessel from point A to point is important for the crew to expose to these service delivery B anymore. They are now required to carry out other skills to add more value to the service they’re offering. Recently administrative duties in filling out forms, checklists as well as we have employed female seafarers to look after Women and compiling reports. Basically it is the Captains responsibility to children who needs assistance when traveling as well as looking ensure the vessel complies to every port on entry’s requirements after the facilities used by females onboard the vessel to ensure as he is now held liable for non-compliance of the crew even the they are clean and tidy at all times during voyages. Their vessel breaching any flag state or Port state laws. understanding of potential tourist sites will also an advantage to give first hand information for tourists when required.
TYPES OF CREW DEVELOPMENT & TYPES OF CREW DEVELOPMENT & IN-HOUSE TRAINING IN PRACTICE IN-HOUSE TRAINING IN PRACTICE
Ship Security under the ISPS Code should Dry-docking Skills and knowledge for Officers be enforced onboard for all levels and Crew for all levels to be improved
Crews compliance to the ISPS Code and its requirements must It is important the crew are aware and understand about their re-enforced onboard to ensure all the crews are well aware and responsibilities when the vessel goes for dry-dock. The planning of understand about the code and its function instead of limiting it such work is very tight so that it must finishes on-time. Therefore to the Ship Security Officer (SSP). Familiarizing the new recruits coordination is very important when preparing and planning the and refreashing the old ones must be done on a monthly basis dry-docking, the safety of the crew is foremost at all times and to ensure they are updated and comply at all times. their skills in caring out maintenance work required on deck or in the engine room during the docking must comply not only to the high standards but importantly the set time allocated for the docking.
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TYPES OF CREW DEVELOPMENT & TYPES OF CREW DEVELOPMENT & IN-HOUSE TRAINING IN PRACTICE IN-HOUSE TRAINING IN PRACTICE
Ability for Officers and Crews to respond Ship Master counseling methods and carry out Internal Audits and It is important to train the ship master who is generally the Inspections Manager of the vessel overall in counseling his crews and be able to help and assist them with their problems. The Ship’s Having an ISM in place, Officers and Crews on all levels must Captain by far is probably the closest person to the crew who continue to familiarize themselves with the ISM Code. They must knows and understands a lot about their behavioral habits and be able to respond to auditors and surveyors caring out audits their weaknesses and with the Captain having these qualities it is and inspections when testing their knowledge and understanding an advantage on his part to motivate and encourage his crew to about the ISM at all times. They are trained on how to conduct ensure they enjoy their job as well as the surrounding internal audits and to report to ourselves the Management the environment they’re at. true outcome of the audit in order for us to improve and correct what have we done wrong as well as discipline the crew (s) member who have failed to perform their duties.
TYPES OF CREW DEVELOPMENT & PROVIDING FOR ON-BOARD IN-HOUSE TRAINING IN PRACTICE FAMILIARISATION TRAINING
These are the areas we need to provide for on- Engineers to train specifically for the type board familiarisation training (model) of engines the vessel is running on ENGINEERS
It is important that your engineers are given the opportunity to I. TURBO CHARGER TRAINING trained specially on the engines your vessels are running on. For Example; in our fleet three of our vessels have Yanmar Engines II. GEAR BOX and one running on Caterpillar. We sent four engineers to Japan III. REFRIGERATION to Yanmar for six months to undergo special training specifically for Yanmar Engines while we brought over an Expert from the IV. BOILER Institute of Caterpillar to carry out trainings on Caterpillar V. AIR POLLUTION (protection to be engines. Exposing your engineers to these trainings will assist a implemented and enforced, awareness, lot in minimizing breakdowns as well as down time for repairing control and regulation)
PROVIDING FOR ON-BOARD PROVISION IN COMPANY POLICY FOR FAMILIARISATION TRAINING CREW DEVELOPMENT & TRAINING
DECK OFFICERS We have a Terms and Conditions of
I. COMPASS ERROR ADJUSTMENT Employment Policy Manual which includes
II. RADIO TECHNICIAN TECHNIC provisions for crew development and
III. STEERING CONTROL training
IV. COMMUNICATION & COMPUTER SKILLS Samoa Shipping Corporation Policy Manual specifies for each employee’s (seafarer or administration) career path by providing the minimum requirements for training as well as the rewards and the benefits that comes with it when you successfully completed each training. This term and condition of employment policy manual was thoroughly research and put together by a Sub-Committee which the Board of Directors endorse and approved.
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FA’AFETAI TELE MA IA MANUIA TELE LE ASO!
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Planned Maintenance Planned Maintenance Planned maintenance includes routine inspections, adjustments and includes replacement of parts that show signs of wear
Ships Planned Maintenance
W hat P is lann Ma ed inten ance
By Alobi Bomo Maritime Technical Security Officer Regional Maritime Programme Secretariat of the Pacific Community Suva, Fiji Islands SPC’s REGIONAL MARITIME PROGRAMME SPC’s REGIONAL MARITIME PROGRAMME
SPC Regional Maritime Programme SPC Regional Maritime Programme
Planned Maintenance Planned Maintenance Purpose for Planned Maintenance Engine room department Planned Maintenance keeps the ship in Class In the long run Planned Maintenance helps reduces the ships’ running cost Is there a schedule Plan Maintenance minimises down-time maintenance due to breakdowns maintenance plan to follow for all the Addresses the issue of substandard shipping, it ensures equipment machinery in the Propulsion Machinery operates in peak condition Engine room Dept? Stern Gear Steering Gear Pollution control equipment Electrical system Emergency equipment Fuel system Lubrication Domestic system
SPC’s REGIONAL MARITIME PROGRAMME SPC’s REGIONAL MARITIME PROGRAMME
SPC Regional Maritime Programme SPC Regional Maritime Programme
Planned Maintenance Plan-Condition based maintenance Planned maintenance to condition-based maintenance The Importance of the Engine room department
When off shore the ship is totally reliant on its main engines and its generators to run the vessel
Planned maintenance plays a very important role in the reliability of the ships’ machinery – remember no tow truck to tow the ship back to a safe port Planned Maintenance has evolved into condition-based maintenance It must be appreciated that preventive maintenance prior to failure is thousands of dollars cheaper than maintenance after This uses monitors to monitor the parameters of the machine by failure oil sample, heat, vibration, exhaust temperature and etc SPC’s REGIONAL MARITIME PROGRAMME SPC’s REGIONAL MARITIME PROGRAMME
SPC Regional Maritime Programme SPC Regional Maritime Programme
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Plan-Condition based maintenance Plan-Condition based maintenance Interpreting Oil analysis report Importance of good quality fuel- storage and use Alternative fuel for cost savings – Copra or palm oil
Avoiding the financial impact of equipment failure is one of the benefits of oil analysis by giving advance warning. Oil analysis report gives the condition of the engine which gives the value of your engine’s working life. It is an essential part of a reliability programme that is fine tunned for
business success SPC’s REGIONAL MARITIME PROGRAMME SPC’s REGIONAL MARITIME PROGRAMME
SPC Regional Maritime Programme SPC Regional Maritime Programme
Planned Maintenance Planned Maintenance Deck Department – schedule maintenance of the ship’s deck Deck Department can avoid hazardous and unsafe conditions of the ship
Is there a schedule maintenance plan to follow for all the machinery in the Deck Department? Navigation Equipment Navigation Charts Cargo Operation machinery Emergency Procedures & equipment Pollution Control procedures & equipment Electrical system Ships paint work Crew Accommodation
SPC’s REGIONAL MARITIME PROGRAMME SPC’s REGIONAL MARITIME PROGRAMME
SPC Regional Maritime Programme SPC Regional Maritime Programme
Planned Maintenance Planned Maintenance Write up schedules to carry out Planned Maintenance Maintenance checks on navigational equipment Deck Machinery equipment & machinery Maintenance checks on survival equipment Engine room Equipment & Machinery Emergency Equipment & Machinery
SPC’s REGIONAL MARITIME PROGRAMME SPC’s REGIONAL MARITIME PROGRAMME
SPC Regional Maritime Programme SPC Regional Maritime Programme
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Secretariat of the Pacific Community SEMINAR ON SUBSTANDARD SHIPPING IN THE PACIFIC ISLANDS REGION Suva, Fiji, 13 – 17 August, 2007
PLANNED MAINTENANCE: ADDRESSING SUBSTANDARD SHIPPING
Paper by Alobi Bomo, Maritime Technical Security Officer, Regional Maritime Programme, SPC, Suva, Fiji
What do you understand by Planned Maintenance? Planned maintenance simply means planning effectively on addressing the wear and tear of a ship in order to ensure that the ship operates efficiently. Planned maintenance must have a routine or schedule for inspections, adjustments and should also include replacement of parts that show signs of wear. The ship and its machinery require constant routine attention to ensure that the equipment operates in peak condition to perform its designed functions.
Purpose of planned maintenance Planned maintenance plays an important role in: keeping the ship and its machinery in class. helping to reduce the ship’s running cost in the long run by giving its machinery longer working life. minimising costs by avoiding downtime on breakdowns - time is money. addressing the issue of substandard shipping by ensuring that the ship and its machinery operate in peak condition thus avoiding substandard practices.
Planned maintenance for the engine room The engine room is usually the most expensive part of the ship which houses the machinery for power generation, propulsion of the ship, steering equipment, pollution control equipment, fuel storage and system, oil storage and system, pumping equipment, emergency systems and control systems for the ship’s domestic systems. When the ship steams off from the shore, it is totally reliant on its own machinery to run everything. Planned maintenance plays a very important role in the reliability of the ship’s machinery, because it must be remembered that there are no tow trucks to tow the ship back to port and using tugs for towing may prove to be expensive. Also, it must be appreciated that preventive maintenance prior to failure is thousands of dollars cheaper than maintenance after failure.
Planned maintenance to condition-based maintenance for the engine room Planned maintenance has been further enhanced with condition-based maintenance. This is due the increasing demand on the use of engines for economical reasons and the need to effectively monitor the condition of engines, gearboxes and the quality of oil and fuel. Condition-based maintenance uses indicators to monitor the parameters of the machinery using oil samples, heat, vibration, exhaust temperature, etc. The machinery which requires priority attention on condition-based maintenance are the engines, gearboxes and some oil lubricated stern tubes. These are best monitored for wear and tear by the use of oil sample analysis. Oil samples are taken from the machines identified point on planned schedules. These samples are usually sent off to the laboratory for analysis. The analysis report should identify the presence of materials (usually in parts per million) as well as indicate the normal allowable and dangerous levels of material concentration per the sample sent. Studying trends over time will indicate which areas or sections of the machinery require attention due to the condition monitoring. An example of this could be the fuel concentration increasing in the oil sample which indicates that there is a problem with the fuel system. In this case the most probable thing to suspect is the fuel injector therefore attention has to be paid to it. The injectors have to be removed for testing to see if they atomise correctly at the required pressures and
1145 ANNEX 20 display the correct pattern. Oil analysis gives advance warning thereby helping to avoid the financial impact of equipment failure. Condition-based maintenance or monitoring also gives an indication of the wear and tear or general condition of the machinery - this may also indicate the value of the machinery. Condition-based maintenance is an essential part of a reliability programme for business. In addition to condition-based monitoring of the engines lubricating oil, the fuels condition-based monitoring is also important. With the constant increase in fuel cost, some shipping companies have taken measures to add additives into their fuel storage tanks. These additives are added to the fuel in the storage tanks to discourage rust, corrosion and microbial growth due to the presence of water in the fuel which contaminates the fuel. Contamination is usually attributed to careless filling, defective or aged fuel tanks, weather conditions and temperature changes which allow condensation to form in the fuel tanks. Also, the additives discourage gums, vanish and sludge from forming in the fuel due to long period of storage. The best way to know if the fuel in the tank is infected is by taking a sample of the fuel and sending it to the shore petroleum dealer who will do a laboratory analysis and report on the findings. Usually most of these petroleum agents advise on the type of additives to use.
Some shipping companies in the Pacific islands region are now venturing into the use of alternative fuels such as coconut fuel or oil palm oil, mainly to cut running costs due to increasing fuel prices. Though bio-fuel is easily available from the local market (Pacific), it is still being researched on. One major downside of copra oil is its waxing problem when the temperature drops to around 20oC to 25oC in the storage tanks. Fuel additives may seem expensive but if water enters the engine’s fuel pumps or injection equipment, serious and expensive repairs may result. Also, in addition to the repairs and replacement of expensive machinery parts, there are financial implications of downtime. In some extreme circumstances, environmental problems and loss of life may result from what may have been a very small issue to deal with in the first instance.
Planned maintenance for the deck department The deck department on the ship also has important areas that need to be addressed for planned maintenance. These areas include the ship’s navigation equipment, cargo operation equipment, emergency procedures and equipment, the crew accommodation, survival equipment and the general condition of the ship. Apart from these critical areas, the ship’s overall maintenance also helps to minimise the hazardous and unsafe working conditions.
Shipowner’s responsibility to address substandard shipping The shipowner has to ensure that the shipping company enforces a Safety Management System (SMS) effectively. This system should ensure that all maintenance carried out on the ship is kept up to date. In addition, records should reflect critical areas that need to be budgeted for. Quality ships and quality management provide quality shipping service and in return quality ships attract good business – means more profits for the company.
Underwater maintenance Apart from ongoing planned maintenance of the ship during its sea going service, maintenance on the underwater section of the ship is usually left until it is due for slipping or docking. Downtime during slipping or while waiting to be slipped is not economically healthy for the shipowner, therefore, measures have to be in place to ensure that any maintenance above water for the ship should be carried out prior to slipping or docking. Things like zinc anodes on the ships hull can be replaced if they are bolted on the ship’s hull therefore improving their corrosion protection ability. Underwater maintenance and repair remains an important part of a ship’s planned maintenance programme. Cleaning and painting of the ship’s underwater section helps to reduce the ship’s drag in water thus reducing the ship’s running fuel cost.
Conclusion In conclusion, planned maintenance plays a big role in addressing substandard shipping issues. It helps to keep a ship and its machinery operating at its peak performance. An important asset that can assist to improve substandard shipping is the attitude of the shipowner and his/her trained crew.
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Seminar on Substandard Shipping in the Pacific Islands region 13 – 17 August 2007, Suva, Fiji Islands Master's Responsibility
Safety of all personnel, cargo and equipment on a vessel. Substandard shipping Care of cargo during loading, and the role of the transportation and discharge. shipmaster Seaworthiness, safe, efficient and economical operation of the vessel
By Captain Timoci Tamani Protection of the environment Maritime Port Security Officer For implementation of the Regional Maritime Programme Secretariat of the Pacific Community company’s Safety Suva, Fiji Islands Management System (SMS)
SPC Regional Maritime Programme SPC Regional Maritime Programme
Master’s Responsibility Master’s Responsibility
The master’s job description will include: Cont. On board training and familiarisation & observation of Vessel is operated in accordance with the requirements the company SMS. of relevant laws & regulations of the Flag State, relevant Port State regulations, the company SMS, other Administration, supervision and economical operation company instructions and good seamanship practices. of the ship’s catering services. Monthly review of the company SMS & reporting its accurate and timely submission of correspondence, deficiencies to head office. records, reports and documents required by the company or by Government agencies in the conduct Safe navigation and operation of the vessel at all times. of the ship’s affairs. Safe and proper conduct of cargo, ballast handling and Safe and efficient interaction at oil company terminals. tank cleaning operations. The Master has overriding authority to alter or change Business Management of the ship and Charter Party any procedure or operation in circumstances where he compliance. deems it necessary to ensure the safety of the vessel. cont.
SPC Regional Maritime Programme SPC Regional Maritime Programme
Master’s Responsibility Master’s Responsibility
Master’s authority: Masters duties will include: Full authority to act on Owners’ behalf as and when required. Revision of company Safety Management System and reporting its deficiencies. Master - joining a new vessel Maintenance of vessels Survey and Class status. Immediate checks: Supervision of Voyage Planning in accordance with Complete ships induction sheet. company/International procedures. Sometimes induction pamphlet is available to Master before arrival on board vessel. Business Management of the vessel, including portage bill Proposed voyage plan and immediate port preparation and victualling requirements. and sea passage plan is safe with all Owners’ representative on board. navigational equipment in good working Overview of all cargo operations. condition. Bunkers, water, food, stores and crew are In conjunction with the Chief Engineer, ensuring effective ready for the voyage. implementation of the planned maintenance program. Seaworthiness of vessel is intact and Bridge watch keeping where only two mates are carried cargo has been properly loaded, stowed and secured for sea.
SPC Regional Maritime Programme SPC Regional Maritime Programme
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Ships Safety Policies Incidents and Defects
Safety policies on board a vessel is component of the company SMS “Safety Safety, Quality and Environment protection is commonly An “Incident Report” form is completed as soon as possible the three main divisions of a company’s SMS. after the incident. Policies are generally guiding principles that can be implemented by The completed form will start: following the company’s management and operational procedures. Identification of the factors that contributed to the incident. The management and operational procedures are documented The issue of an NCR or PIN which requires onboard guidelines describing: investigation into the causes of the incident. A copy is sent Competency of person to carry out the task to the Designated Person Ashore who has direct access to Frequency of task execution the General Manager of the company. Equipment required to carry out the task Corrective action is taken once the cause has been Records and Retention period identified. It is important to identify the cause as the What is documented should be implemented and what is corrective action is designed to reduce the chances of implemented should be what is documented. recurrence of the incident/accident.
SPC Regional Maritime Programme SPC Regional Maritime Programme
Defects Planned Maintenance Programme The department heads, Chief Engineer and Chief Officer A well-maintained ship is the key to safe, will have a defects recording system that can be in economical and quality management. the form of: The main objective of any Planned Defects book that is Maintenance programme is to provide continuously updated as a strict maintenance schedule with minimal administrative effort, ensuring defects are reported. efficient operation of all machinery Defects form – duplicate and seaworthiness integrity of vessel. book. Completed copy is A Planned Maintenance programme placed in the Engine Room helps the vessels personnel to or Deck defects tray in the effectively plan and schedule future work assignments, thereby achieving ships office or specific better time-management and higher location accessible by all productivity. officers
SPC Regional Maritime Programme SPC Regional Maritime Programme
Planned Maintenance Avoidance of negligence Programme Safety Drills on board must be: Maintenance personnel are completely informed about well thought out and conducted with as much realism possible priority tasks, expected time of completion, the resources without jeopardizing the safety of ships personnel. required to carry out the job and reports to support the job contents of the SOPEP (Shipboard Oil Pollution and Environment done. This helps ships personnel to plan the work in the Protection) Manual and Contingency Plan would provide the most efficient way and allows the re-scheduling of jobs in a basic scenarios for the drills and exercises. structured manner. From the shipping companies Shipboard Management Committee perspective this programme 1. Makes decisions on all management issues on board a vessel. is an essential tool, which The committee decides on implementation of new or amended provides reports on the status shipboard work procedures. of onboard maintenance, intervals for periodical Ship Safety Committee inspections and servicing, 1. Makes decisions on all safety issues on board a vessel and can surveys, certificates, be very effective in creating a safety culture. purchasing and budgets etc.
SPC Regional Maritime Programme SPC Regional Maritime Programme
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The Master’s Role
Thank You
SPC Regional Maritime Programme
149 ANNEX 21
Secretariat of the Pacific Community SEMINAR ON SUBSTANDARD SHIPPING IN THE PACIFIC ISLANDS REGION Suva, Fiji, 13 – 17 August, 2007
SUBSTANDARD SHIPPING AND THE ROLE OF THE SHIPMASTER
Paper by Captain Timoci Tamani, Maritime Port Security Officer, Regional Maritime Programme, SPC, Suva, Fiji
1. A shipmaster’s responsibility
A shipmaster has responsibility for: Safety of all personnel, cargo and equipment on a vessel. Care of cargo during loading, transportation and discharge. Seaworthiness, safe, efficient and economical operation of the vessel. Protection of the environment. For implementation of the company’s Safety Management System (SMS).
The master’s job description will include: Ensuring that the vessel is operated in accordance with the requirements of relevant laws and regulations of the Flag State, relevant Port State regulations, the company SMS, other company instructions and good seamanship practices. Monthly review of the company’s SMS & reporting its deficiencies to head office. Safe navigation and operation of the vessel at all times. Safe and proper conduct of cargo, ballast handling and tank cleaning operations. Business Management of the ship and Charter Party compliance. On-board training and familiarisation of new personnel and motivating the crew in observation of the company’s SMS. Administration, supervision and economical operation of the ship’s catering services. The accurate and timely submission of correspondence, records, reports and documents required by the company or by government agencies in the conduct of the ship’s affairs. Safe and efficient interaction at oil company terminals. The Master has overriding authority to alter or change any procedure or operation in circumstances where he deems it necessary to ensure the safety of the vessel.
Masters duties will include: 1. Revision of company SMS and reporting its deficiencies. 2. Maintenance of vessel’s Survey and Class status. 3. Supervision of voyage planning in accordance with company/international procedures. 4. Business Management of the vessel, including portage bill preparation and victualling requirements. 5. Owner’s representative on board.
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6. Overview of all cargo operations. 7. In conjunction with the Chief Engineer, ensuring effective implementation of the Planned Maintenance program. 8. Bridge watchkeeping where only two mates are carried
Masters authority: A master has full authority to act on the owner’s behalf as and when required.
Master - joining a new vessel: Immediate checks: 1. Complete ship’s induction sheet. Sometimes an induction pamphlet is available to the Master before arrival on board the vessel. 2. Proposed voyage plan and immediate port and sea passage plan is safe with all navigational equipment in good working condition. 3. Bunkers, water, food, stores and crew are ready for the voyage. 4. Seaworthiness of vessel is intact and cargo has been properly loaded, stowed and secured for sea.
2. Implementation of safety policies on board
Safety policies on board a vessel is in fact a component of the company’s SMS. Safety, Quality and Environment protection is usually the three main divisions of a company’s SMS. Policies are generally guiding principles that can be implemented by following the company’s management and operational procedures. The management and operational procedures are documented guidelines on: Who is qualified to carry out the task? How often should the task be carried out? What equipment should be used to carry out the task? What records should be kept as history of the task being carried out? The retention period of the completed records.
What is documented should be implemented and what is implemented should be what is documented. These procedures are verified using ships’ policies, national regulations, flag state regulations, international conventions and day-to-day implementation.
3. Accurate reporting of incidents and defects
Incidents An “Incident Report” form is completed as soon as possible after an incident. It is sometimes referred to as a “Near Miss”. The incident form has a list of question boxes that grades the seriousness of the incident. The answers will result in: Immediate rectification of the factors that contributed to the incident. The issue of a Non-Conformity Report (NCR) or Performance Improvement Notice (PIN) which requires formal investigation into the cause of the incident. A copy is sent to the Designated Person Ashore who has direct access to the General Manager of the company.
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Corrective action is taken once the cause(s) have been identified. It is important to identify the cause as the corrective action is designed to reduce the chances of the incident/accident from recurring.
Defects The department heads, Chief Engineer and Chief Officer will have a defects recording system that can be in the form of: A Defects book that is continuously updated as defects are reported; or A Defects form – duplicate book. A completed copy is placed in the Engine Room or Deck defects tray in the ship’s office or a specific location accessible to all officers.
Planned Maintenance Programme Good ship operators have always been conscious of the fact that a well-maintained ship is the key to safe, economical and quality management. The main objective of any Planned Maintenance programme is to provide a strict maintenance schedule, which helps to manage the complexity of a ship with minimal administrative effort, ensuring efficient operation of all machinery and seaworthiness integrity of vessel. A Planned Maintenance programme helps the vessel’s personnel to effectively plan and schedule future work assignments, thereby achieving better time-management and higher productivity. Maintenance personnel, in turn, are completely informed about priority tasks, expected time of completion, the people and spares required to carry out the job and reports to support the job done. This helps ship’s personnel to plan the work in the most efficient way and also allows the re-scheduling of jobs in a structured manner. From the shipping companies’ perspective this programme is an essential tool, which provides reports on the status of onboard maintenance, intervals for periodical inspections and servicing, surveys, certificates, purchasing and budgets etc.
4. Avoidance of negligence
Safety drills on board must be well thought out and conducted with as much realism as possible without jeopardizing the safety of ships’ personnel. The contents of the Shipboard Oil Pollution and Environment Protection (SOPEP) Manual and Contingency Plan would provide the basic scenarios for the drills and exercises.
Shipboard Management Committee The Committee makes decisions on all management issues on board a vessel. The Committee decides on implementation of new or amended shipboard work procedures.
Ship Safety Committee The Committee makes decisions on all safety issues on board a vessel and can be very effective in creating a safety culture.
Benefits of Enhanced Safety Lectures: Keeps ships’ personnel familiar with the operation of all safety equipment on board. Know your ship well Reliable forum for updating crew on new technology or best practices available, particularly those that have been introduced or soon to be introduced on board.
Onboard Training Programmes: International Safety Management (ISM) – SMS self test programmes. Safety Videos
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Seminar on Substandard Shipping in the Pacific Islands region Maritime training standards in the 13 – 17 August 2007, Suva, Fiji Islands Pacific islands region Maritime Training Institutions (MTIs) Maritime training: SPC perspective PNG Maritime College Fiji School of Maritime Solomon Islands Maritime College Vanuatu Maritime College Samoa Maritime College Tonga Maritime Polytechnical Institute Maritime Training College, Kiribati Tuvalu Maritime Training Institute Fisheries and Navigation Training College, RMI By Capt Apenisa Vata Fisheries and Maritime Institute, Yap, FSM Regional Maritime Training Advisor Cook Islands Maritime Training School Regional Maritime Programme, SPC French Territories - 2 Training Colleges Suva, Fiji Islands
REGIONAL MARITIME PROGRAMME – Substandard shipping seminar, Suva, 13 -17 August, 2007 REGIONAL MARITIME PROGRAMME – Substandard shipping seminar, Suva, 13 -17 August, 2007
SPC Regional Maritime Programme SPC Regional Maritime Programme
Maritime training standards in the Pacific islands region STCW 95 Compliance
International Convention on Standards for Training, Certification and Watchkeeping for Seafarers IMO “White List” (STCW),1978 (or as amended in 95 and 97) Maritime Training Institutions Pacific Islands Maritime Maritime Administration Association (PacMA) 5 yearly independent evaluation Moderators, Examiners and SPC-RMP/PacMA Audit Teams Maritime Lecturers Subcommittee SPC Training Modules Minimum Standard Review
REGIONAL MARITIME PROGRAMME – Substandard shipping seminar, Suva, 13 -17 August, 2007 REGIONAL MARITIME PROGRAMME – Substandard shipping seminar, Suva, 13 -17 August, 2007
SPC Regional Maritime Programme SPC Regional Maritime Programme
SPC courses relating to SPC courses relating to substandard shipping substandard shipping
STCW 95 Upgrade Maritime Administration Overseas PSC Inspectors Secondment Portable Bridge Simulator ISM/SSM Training Courses Regional Ship Surveyors Training In-country Admin Mentoring Programme Maritime Administrators Training SPC Training Modules Legal Attachment Programme Watchkeeper/ Class 3 Deck Pollution Prevention & Engineer down to Managing Vessel Condition Watchkeeper Rating Deck & Engineer Flag State Implementation Safety Certificate (Short Accident Investigation Courses) Maritime Auditing
REGIONAL MARITIME PROGRAMME – Substandard shipping seminar, Suva, 13 -17 August, 2007 REGIONAL MARITIME PROGRAMME – Substandard shipping seminar, Suva, 13 -17 August, 2007
SPC Regional Maritime Programme SPC Regional Maritime Programme
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SPC courses relating to Responsibility of Shipowners for substandard ship Onboard Training
Maritime Training Institutions Cadet Officer Training Heads of School Mentoring Refresher/Upgrading Courses Train the Trainers in Work Place Greater Involvement in the Training of Ships Officers Assessment ISM/SSM Implementation Advance Fire Fighting Advance First Aid – Train the Trainers Ship Masters Medical Compass Adjusters Tutor Training Course Tanker and Ro-ro Familiarisation
REGIONAL MARITIME PROGRAMME – Substandard shipping seminar, Suva, 13 -17 August, 2007 REGIONAL MARITIME PROGRAMME – Substandard shipping seminar, Suva, 13 -17 August, 2007
SPC Regional Maritime Programme SPC Regional Maritime Programme
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Secretariat of the Pacific Community SEMINAR ON SUBSTANDARD SHIPPING IN THE PACIFIC ISLANDS REGION Suva, Fiji, 13 – 17 August, 2007
MARITIME TRAINING: SPC PERSPECTIVE
Paper by Captain Apenisa Vata, Maritime Training Adviser, Regional Maritime Programme, SPC, Suva, Fiji
1. Maritime Training Institutions in the Pacific
There are 11 Maritime Training Institutions (MTIs) in the Pacific islands region (excluding the two MTIs in the French territories as data on them was not made available to the Regional Maritime Programme). The 11 MTIs are:
Papua New Guinea Maritime College: is located near the port of Madang on the Northern coast of PNG. The College trains up to Class 1 Deck and Engineers. It has a well established campus with boarding facilities for students.
Fiji School of Maritime and Fisheries: is part of the Fiji Institute of Technology (FIT) and is located in Laucala Bay close to The University of the South Pacific’s Faculty of Islands and Oceans. The School trains up to Class 3 Deck and Engineers and are currently proposing to run Class 2 Deck and Engineer classes. There is limited accommodation at the FIT boarding facilities - for singles only.
Solomon Island Maritime College: Well established and trains up to Class 4 Deck and Engineers. The College is about ten minutes drive outside of Honiara towards the International Airport. Accommodation is limited to ratings.
Vanuatu Maritime College: the college is located in Luganville town on the island of Santos and trains up to Class 4 Deck and Engineers. Its main target group is catering ratings for cruise liners. Accommodation is limited to mixed ratings.
Samoa Maritime College: is now part of the National University of Samoa, located in Apia. The College trains up to Class 5 Deck and Engine.
Tonga Maritime Polytechnic Institute: is located in Nuku’alofa and trains students up to Class 4 Deck and Engines. Accommodation is limited.
Maritime Training College – Kiribati: this is a well established training facility for Deck, Engine and catering Ratings with fully segregated boarding facility. It is located on Betio Island in Tarawa, Kiribati.
Tuvalu Maritime Training Institute: is located on the island of Amatuku which is part of the Funafuti Atoll in Tuvalu. The Institute trains deck and engine room ratings with full accommodation including staff members on Amatuku.
Fisheries and Navigation Training College in the Republic of the Marshall Islands: the college is located on Majuro Atoll in the Marshall Islands. It trains Deck and Engine Room Ratings as well as fisheries Ratings.
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Fisheries and Maritime Institute: is located on the island of Yap in Federated State of Micronesia. It has accommodation for deck, engine room and fisheries ratings whilst under training. The College trains up to Class 5 Deck and Engineer officers.
Cook Islands Maritime School: this is the newest maritime training school that caters for the need of Ratings in the Cooks.
2. Implementation of the International Convention on Standards of Training, Certification and Watchkeeping for Seafarers (STCW), 1978
All MTIs that conduct training and assessment for an STCW certificate must complied with the International Maritime Organisation’s (IMO’s) requirements under the STCW-95 Convention. All MAs that conduct examinations/assessment for the issue of STCW certificate must abide with the stipulation of the IMO requirements. The Contracting Governments or countries to which the MTI and the MA belong also have certain obligations to the convention before they are entered into the IMO “White List”.
Pacific Islands Maritime Association (PacMA) The Pacific Islands Maritime Association’s membership extends to MTIs and MAs in the PICs as well as to Australia and New Zealand. Associate members include the Pacific International Maritime Law Association (PIMLA), Pacific Countries Ports Association (PCPA) and the Pacific Women in Maritime Association (PacWIMA). The Secretariat of the Pacific Community’s (SPC) Regional Maritime Programme (RMP) acts as the Secretariat to these associations. There are subcommittees in PacMA which are responsible for monitoring important areas of maritime activities in the Pacific islands region and ensure that these activities are carried out within the set standards. For example, the subcommittee that monitors and reviews maritime training and certification standards is the Moderators, Examiners and Lecturers (MEL) Subcommittee and its membership includes very senior members of MTIs and MAs.
SPC Training Module SPC being mindful of the standard of training that is required under the STCW Code, helped to develop training modules for certificates below the STCW level particularly for domestic certificates. The modules were designed as a minimum standard for each certificate such that the build up between consecutive marine qualifications was gradual, thus, allowing one from a domestic trade to continue on to international trade if he or she wanted to.
STCW 95 Compliance: IMO “White List” The 1995 amendment to the STCW 78 Convention made specific requirements on the MTI and MA to strengthen national regulations covering safety of life and property at sea as well as the protection of the marine environment. Those requirements had to be fulfilled by the date stipulated from IMO. All countries in the region entered into the “White List” by the extended date - thanks to the hard work put in by the Maritime Training Institutions and the Maritime Administrations.
Five- Yearly Independent Evaluations Maintaining position on the “White List” demands certain obligations from the maritime trainers and administrators. These are spelt out in the Regulation Section of the STCW Convention and certain sections of the STCW Code. One of the main requirements is the need to have an independent evaluation carried out on the MTI and MA. The evaluation report needs to be communicated to the Secretary-General of IMO for the country to retain its white listing.
SPC-RMP/PacMA Audits There are approximately 50 SPC-trained maritime auditors in the Pacific islands region to date and most of them are qualified to conduct audits under a lead auditor. The SPC-RMP/PacMA audits have been carried out within the bounds of the SPC Auditing Standard which is based on the International
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Auditing Standard ISO 19011: 2002. These audits are presently provided for under SPC-RMP sponsorship.
3. SPC courses relating to substandard shipping
STCW 95 Upgrades SPC RMP was at the forefront of getting all STCW certificate holders upgraded so that those with foreign employment contracts did not lose their jobs. For Classes 1 and 2 certificate holder this meant attending upgrading classes in either the Australian Maritime College in Tasmania or New Zealand Maritime School in Auckland at an average cost of AU$14,000 per person for the four-week course. Close to 400 participants in the region had their certificates upgraded during this period.
Portable Bridge Simulator (PBS) This state of the art training tool was purchased by the RMP at the end of 2001 to help reduce the cost of upgrading by taking the training to where the participants lived. The PBS consists of a network of seven laptops, a bridge control consol and a multimedia projector. The simulation works in real time and speed. Currently the PBS has six ports or exercise areas including the ports of Auckland, Gibraltar and Pusan.
Other simulation training exercises include three different kinds of fishing activities and GMDSS training. A train-the-trainer course was carried out in late 2002 enabling the MTIs to borrow the PBS to train and assess their Classes 4 and 5 Deck students in ship handling, radar plotting and Bridge Resource Management. The PBS has been extensively used for regional as well as in-country training.
SPC Training Modules As alluded to in the previous section these training modules include Safety Courses, Watchkeeper Ratings Courses and all the courses from Class 6 combined boat master/engineer to Class 3 Deck and Engineer Watchkeeper. Again these modules were set at a minimum level for each certificate allowing training providers to pitch their training at a higher level.
For Maritime Administration Port State Control Inspectors Secondment – Country nominations were seconded to maritime administrations either in Australia (Australian Maritime Safety Authority) or New Zealand (Maritime New Zealand) for a month to understudy PSC inspectors in those ports. International Safety Management/Safe Ship Management Training Courses – In-country courses as well as regional training were conducted. Ship Surveyors’ Training – Several regional training conducted. Survey subcommittee of PacMA developed Regional Survey Standard, sponsored by IMO. Administration Mentoring Programme – Attachments with AMSA Maritime Administrators’ Course – This training has been organised every year for the four years Legal Attachment – Senior officers who deal with day to day regulatory functions spent 2 weeks at RMP with Legal Adviser. Pollution Prevention – Regional training was conducted as countries were looking at drafting their own Pollution Legislation Managing Vessel Condition – This has been a regular training provided annually at regional level and it deals with areas such as: determining, evaluating and responding to vessel structure and condition; planning and implementing vessel maintenance programmes; and preparing for as well as managing dry docking and repair activity. Flag State Implementation – Regional training has been conducted.
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Accident Investigation training course – This training emphasises the importance of conducting proper investigation and not just a ‘whodoneit’ report. It’s about getting at the root cause and finding solutions to minimise the chances of recurrence. Maritime Auditors course – Systems auditing is a management tool that is being used more and more to find ways of improving performance in planned activities.
For Maritime Training Institutions Heads of School Mentoring – Heads of smaller MTIs spend time in bigger institutions where they can pick up best practices. Train-the-Trainer in Workplace Assessment – Training is provided to MTI instructors and MA examiners/assessors in evaluating students work and performance properly. ISM/SSM Implementation – Regional training of MTI instructors Advance Fire Fighting - This is one of the short courses for STCW certificated officers have to do as part of the safety training. Advance First Aid – This was a Train-the-Trainers training course for instructors from the region. Shimasters Medical – Training for ships officers in how to medically care for ships’ personnel Compass Adjusters Tutor Training – 16 instructors from the MTIs in the region spent two weeks in Auckland for this training. Tanker Ro-ro Familiarisation – This training course was run with a greater emphasis on the stability calculations. Roll on roll off ferries are quite common now in the region (some new ones in Samoa, and some Japanese second hand ones in Fiji, Tonga and Solomon Islands).
Has the maritime training provided in the region met the expectation of the MTIs, MAs and the shipping industry? Have the participants, who received the training and/or attended seminars and workshops through SPC, been able to share what they have learned with the industry?
4. Responsibility of shipowners for onboard training
Cadet Officer Training The world of shipping is experiencing a big shortage in properly trained and experienced watchkeeping and senior officers. Some experts say that in well developed countries, salaries offered ashore have caught up with what was being paid for seagoing jobs (which was a major attraction in bygone days). In the Pacific there are hundreds of young people who want a sea-going career but find it difficult to get sea-time. Ships won’t take extra hands as shipowners and operators are bent trimming operating costs. Where is the future of shipping without appropriately trained people to fill positions on board?
Refresher /Upgrading Courses Technology in the shipping industry is changing fast. Are the shipowners willing to sponsor their officers/employees to attend these courses or will they wait for someone who has been trained by others then grab them? Just last week I was told of a tanker company sending two of their officers to Manila to upgrade their knowledge in Electronic Charts and some other things, so some companies are doing it whereas others wait for ‘ready made’…
Greater Involvement in the Training of Ships Officers It is quite evident that the proper training of ships’ officers is a must for we know that “Good ship officers don’t grow overnight”. All stakeholders in the shipping industry are responsible for the moulding of character, instilling discipline and confidence as well as proper training of cadet officers.
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SUBSTANDARD CREW
ENHANCED TRAINING AND QUALIFICATION OF SEAFARERS In this crew development I feel that the followings stakeholders also contribute in the improvement of training and qualification of seafarers, they are the shipping company that sponsors the student, the training provider and the students themselves. But this afternoon I will be speaking from the Training providers side.
FROM THE TRAINING PROVIDER POINT OF VIEW.
I believe that from the training provider’s point of view, the Institute should have a vision, mission, values,goals, operating principles to improve the training and qualification of seafarers.
1.2 VISION To be a Centre of Excellence in Maritime Education in the Pacific Region providing first Deck and Engine Officers, best ship builders and first class Fisheries Officers.
1.3 Mission Statement
The mission of the School of Maritime Studies is to provide a wide rang3e of quality, cost effective, higher education and training programmes which are consistent with the policies of the Government of Fiji and focuses on the individual, national and international needs of the industry, placing emphasis on excellence and equity.
1.3.1 Values
The School of Maritime and Fisheries Values -
i. Quality and relevance in all its education and training programmes. ii. A quality learning environment which effectively meets the needs of staff and students and the industry. iii. Creativity, innovation, scholarship, research and excellence in teaching. iv. People and their needs as individuals and members of unique cultural groups. v. Equity. vi. Effectiveness, efficiency and accountability. vii. The importance of reducing the educational gap between indigenous Fijians and people of other ethnic groups.
The following values will form the basics of achieving this Mission x People working together. x Personal commitment to high professional standards.
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x Cost effective, responsible decision-making. 1.
1.3.2 Educational Goals
The main educational goal of the School of Maritime Studies is to provide learning opportunities of quality and relevance by:
Developing, monitoring and reviewing its educational programmes according to criteria and processes which will ensure that programmes meet the needs of industry and produce suitably skilled graduates.
Employing suitably trained, qualified and experienced staff, providing them with opportunities to maintain their professional skills, to develop and maintain a high standard of teaching, research and scholarship.
1.4 Quality Objectives
i. The School of Maritime Studies is committed to providing a level of service to all clients that consistently meets or exceeds their expectations.
ii. Our clients are the focus of everything we do; our work must be done with the needs of the learners and employers in mind.
iii. We will employ only appropriately trained and qualified personnel for the development, presentation, examination and review of our training programmes.
iv. We aim to be the market leader in the provision of our service as perceived and judged by the local and international maritime industry.
v. The learner involvement in our activities is our way of life; we are a team and we must trust, respect, and support each other.
vi. Employers and sponsors are our partners, we must maintain mutual beneficial relationships with employers, sponsors and other training institutions.
vii. We will constantly review service performance with a view to maintaining consistent quality improvement.
viii. We will always clearly define the scope and level of services to be provided to our clients.
2.
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1.5 Operating Principles
In achieving these objectives the School of Maritime Studies will operate in accordance with the following principles:
a) We will assist all students to fulfil their maximum potential so that they are able to attain the qualifications that are appropriate to their personal and work needs.
b) The needs of current clients will take precedence over any prospective new clients.
c) Our staff will always seek to present an image of total professionalism in all contacts with clients or potential clients.
d) Our staff will operate at all times with integrity, and in all the best interests of assisting each client to improve his learning and achieve qualification objectives.
e) We will provide services to the students and staff so that their physical, mental, social and spiritual needs are met and the opportunities are provided for them to develop their potential in these areas.
f) We will provide the opportunities for all staff to conduct applied research.
g) We will strive to provide opportunities for our students to reach their maximum potential.
h) We will provide an environment for openness through effective communication at all levels, and avenues for participative decision making.
i) We will only offer programmes if they can be competently and professionally carried out with the resources available to us.
j) We recognize that the effective management of quality and safety is vital to our ability to maintain competitiveness and recognition locally and beyond.
k) We will be cost-effective in our management, education and training. We aim to be financially strong and contribute to our own financial well being by having a range of educationally relevant and self-financing activities.
3.
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FROM THE TRAINEE POINT OF VIEW
TRAINING
To be successful in your career after going through a proper training I believe that students or the individual seafarers should be able to have the following :
x Knowledge x Skills x Atitude
When enrolling at the school they should come expecting only the skills and the knowledge from the training provider. The students themselves should have the attitude that expected from a trainee so that when they are combined together the outcome should be SUCCESS.
By experience only the Military Training Group provided all before an assessment is carried out.
We feel that all seafarers should come back to attend all required short courses every five years so that they can learn new Maritime technology to upgrade their knowledge and skills in seafaring.
Thank you and GOD BLESS
Prepared by Capt Tevita Robanakadavu
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SUBSTANDARD CREW
ENHANCED TRAINING AND QUALIFICATION OF SEAFARERS
1. VISION
To be a Centre of Excellence in Maritime Education in the Pacific Region providing first Deck and Engine Officers, best ship builders and first class Fisheries Officers.
2. Mission Statement
Provide wide range of quality:
Cost effective
Higher education
Training programmes
3. Values
Quality and relevance
Quality learning environment
Creativity innovation, scholarship, research, excellence
People and their needs
Equity
Effectiveness, efficiency and accountability
Reducing Educational gaps
4. Educational Goals
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Developing, monitoring and reviewing
Employing suitable trained, qualified and experience staff 1. Quality Objectives
Providing a level of service to all clients
Focus on the needs of the learner and employers
Employ appropriately trained and qualified personnel
Market Leader
Trust , respect and support each other
Maintain mutual beneficial relationship with employer, sponsors and other training institution.
Review service performance
Define the scope and level of service
Operating Principle
Assist all students to fulfill maximum potential
The needs of current clients will take precedence over any prospective new clients,
Our staff will always seek to present an image of total professionalism in all contacts with clients
Operate with integrity 2. Provide service to students and staff
Provide opportunities to staff
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Provide effective communication
Offer programmes with available resources 2. Recognise effective management of quality and safety.
FROM THE STUDENTS POINT OF VIEW
• Knowledge
• Skills
• Attitude
The importance of simulator training
• Technology
• Maritime Training Provider
• Achieving the Objectives.
Prepared by Capt Tevita Robanakadavu Head of School of Maritime and Fisheries Fiji Institute of Technology Suva, Fiji
165 ANNEX 24
SEMINAR ON SUBSTANDARD SHIPPING IN 1. Monitoring of SMS THE PACIFIC ISLANDS REGION Status of SMS on board ships: PNG : 5 ships Breakout group session 1 PNG : 5 ships New Cal : 3 ships Fiji: : 5 ships (tourist private) Group: Maritime Administration 1 Tuvalu : 2 ships Tokelau : no ships Niue : no ships Nauru : no ships
Monitoring of SMS Monitoring of SMS Recommendations: Issues faced by MAs: 1. Encourage members to define the scope 1. Shipowners not being aware of the of SMS implementation taking into account the risks involved – prioritize importance of having SMS on board implementation on board tankers, their ships passenger ro-ro vessels, etc) 2. The DPA should work full-time on 2. Evidence of a mechanical approach The DPA should work full-time on SMS/ISM related work to SMS implementation – just a 3. Training on SMS to be provided to cadets routine for some as well as ongoing officers in maritime training school – with strong emphasis on quality approach
2. Interpretation of legislation 3. Regional Survey Standards
Need for legislation to be more user- Member countries need time to go friendly - in structural terms through the Standards before Transcribing international conventions making any concrete comments requirements into national law making any concrete comments
Recommendation: Countries need to enact national legislation first before ratifying international conventions
166 ANNEX 24
Monitoring of SMS: Status Quo z Samoa z Class society currently monitors SMS z Tonga Administration Group 2 z Class society, except for the domestic ships z For domestic ships the administration monitors this z Tuvalu & Kiribati Inoke Ratotodro (Fiji) – Team Captain z Tuvalu does not have State surveyors William Johnson (Tonga) z Foreign going ships - Class society Lloyd’s Weiner Hadley ((FSM) z For domestic ships the administration monitors this (not regulated) Moote Kabure (Kiribati) Maselino Tominiko (Samoa) z Fiji Danny Viviani (PNG) z No Fiji flagged ships are on international voyage Kemp Detenamo (Nauru) z Shipping companies have their own SMS systems; administration monitors this (not regulated) Kanae Sakua (Tuvalu) Joytishna Jit (SPC) z FSM Megan Streeter (SPC) z Class societies for the 3 government ship that have SMS
Strengths Gaps
z Samoa conducts intermediate monitoring; z Regulation needs to be enacted for SMS agreement with Class society for monitoring z Generic legislation performance z Every 2 year verification z Training on ISM z Regulated and implemented since 1999 z Maritime administrations z Sailing checklist is signed by Safety Officers to give clearance z Shipowners z Tonga is similar z Ship operators, including charters z Monthly PSC inspections z Assistance from RMP z The companies cover costs z Charter agreements to reflect SMS
Legislation STCW-95 Regulations Marine Pollution z Fiji z Samoa z Marine Pollution Prevention legislation z STCW-95 legislation introduced new terms z Need to be customised to tie in directly with MARPOL by and definitions that did not complement limiting to ship-source pollution existing legislations. z FSM z Amending existing legislation to standardise z Jurisdiction: States control their 12 mile zone terminology z Tonga z Oil coming from land perceived as pollution from z Useful for the region to see the amended ships legislation used in Fiji as that will be the most z Tuvalu recent update (after revision of SPC modules z Legislation covers port area: current legislation is by PacMA) sufficient
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Generic legislation status for: Certification for fishing vessels
z Administration to endorse safety on z Non-convention vessels fishing vessel z Loadline z Safety certification for fishing vessel z Tonnage personnel z STCW-F z Wreck Removal z Tonga z As best practice, ensures Class 6 for fishing boats and Basic Safety training (not legislated)
GMDSS LRIT
z Samoa z Need to amend legislation to reflect z Telecom smaller ships z Tonga z Telecom and PM Office z Conflicting interest issues? z Fiji z Telecom z Administrations need to identify issues in implementation by Telecom (check system, certificate)
Regional Survey Standards Additional issues for consideration: Challenges in implementation z Samoa z No issues – similar to prior practice z Substandard shipping seminar z Regulations are in place z RMP to hold seminar every two years to monitor z Harmonised system to follow: way forward in improving surveys status of substandard shipping, assess problems & difficulties, and raise awareness of emerging z FSM issues z Currently in process of harmonizing with existing system z Maritime administration training is needed z Fiji z Also consider succession planning z Needs to review its standards, as the regional survey standard is most updated (to suit Fiji’s context) z Audit training for ISM, ISPS, STCW and z Eventually tie up with Non-Convention legislation Business excellence z Surveyors in the subcommittee to continue to update the z Access to vessel movement database standards, particularly to reflect any new requirements z Check system for substandard ships z Continue training of surveyors by RMP
168 ANNEX 24
THE END
169 ANNEX 24
Seminar on Substandard Shipping in ISM SYSTEM the Pacific islands region 1)What are the challenges faced by shipowners in the implementation and operation of SMS Breakout Group Session 1 onboard their ships?
1.Low level of understanding of benefits (crew)
Shipowner/operator/master 2.Too much paper work
3.Who is going to monitor or police the system once it is implemented?
ISM SYSTEM
2)What are your views on the introduction of an ISM Auditing System in the Region based on the Regional Auditing standards?
1.Better protection of PIC seafarers
2. More professional operation of local shipping (increase efficiency)
3. The audit scope and criteria needs to be specified
170 ANNEX 25
SEMINAR ON SUBSTANDARD SHIPPING IN Setting the Scene THE PACIFIC ISLANDS REGION
Seafaring is no longer an attractive Breakout group session 2 profession for the new generation Training is not the only attributing factor to accidents Group: Maritime Administration 1 • Long work hours, work pressure, fatigue, crew lifestyle…are other contributing factors
The adequacy of the current training standards How can the standard of training be improved? in meeting seafarer skill shortage demands
Strengthening practical training Not enough practical training – Increase in simulator training Training is difficult to access due to – assessment should be specific/parallel • High cost of training • High cost of training to the nature of vessel employed on • Reluctance on the part of shipowners Strengthening teaching skills of to release employees for training trainers in MTIs Lack of appropriately skilled trainers in MTIs Increase in audits on MTIs
171 ANNEX 25
Seafarer Training
z Training standards are adequate Seafarer Skill Shortage? z However, there is a need to address root causes for the perceived skill shortage:
William Johnson (Tonga) z 10 years ago there was a move to put maritime Weiner Hadley ((FSM) Inoke Ratotodro (Fiji) training schools under education department – Moote Kabure (Kiribati) However, the MTI is best to remain under maritime Maselino Tominiko (Samoa) administration. Danny Viviani (PNG) z MA must have a monitoring role in training because Kemp Detenamo (Nauru) the training should meet administration’s target of Kanae Sakua (Tuvalu) regional and international standards. Joytishna Jit (SPC) Megan Streeter (SPC)
Seafarer Training: Seafarer Training Recommendations
z E.g. Samoa z MTIs to move back under MAs (to raise z Relocation of school to NUS away from sea this with Pacific Island Forum Leaders) (lack of understanding) z Continued lecturer mentoring/ z Another relocation due to move the school secondments in the region back near the sea z To revive seafaring as an enticing career z E.g. Fiji option: Include sea safety awareness in schools and rural qualities z Assistance to maritime goes to FIT’s maritime school with some trickling to MA. z PacWIMA to expand on sea safety awareness into training modules for schools There is a need to address this issue.
Skill Shortage: Challenges Challenges: Skill shortage
z Need to better coordinate and advertise ILO membership and ITF approval provides high access to skills in the global market available skills from the region z Greater membership by PICTs z RMP to look into ITF matters, consider guilds and association z Seafarers need financial assistance to for seafarers upgrade course and encourage training z For countries that are already ITF-accredited (Tuvalu) to lead the region on this and share experiences z Soft loans z Centralised 2-way database needed for seafarer job z Scholarships seekers z Neptune is updated by PICTs themselves; Success is z Subsidised learning dependent on PICTs supplying timely data to RMP z Linkages to ILO seafarer ID database z Cadetship z Seafarer qualification levels updated on this database
172 ANNEX 25
Cadet Training Cadet Training
z Seatime on international voyage z Social responsibility modules for cadets z Regional ships used for cadets z Selection criteria for cadets, so that z RMP to coordinate this cadetship is renewed upon satisfactory z Eg Samoa’s MA declared international ships performance upon merit. to be used as training ships also z Financial assistance required for cadet z Regional agreement - Vessels coming training into the region must carry a certain z For example, tax incentives or donors number of PICT cadets z Estimate 30-50 cadets per country
Additional Issues
z Surveyors must understand that surveys are done for administration and not shipowner interests – impacts on on insurance claim validity
173 ANNEX 25
1. What is the link between substandard shipping and the following:
Open Registry Breakout Group Session 2 – Possible haven for Illegal, Unreported & Unregulated vessels (IUU); Maritime Lawyers – Historically, most marine accidents related to substandard shipping have been linked to open registry.
E.g., MV Prestige (Maltese Flag)
1. What is the link between substandard 1. What is the link between substandard shipping and the following: shipping and the following:
Derelict Vessels Marine Insurance
– A substandard ship increases the chances of it – High risk for substandard ships becoming derelict – High premium – Substandard ships are adverse to the insurance Wreck Removal industry
– A substandard ship increases the chances of it becoming a wreck
3. What are the gaps in legislation concerning the 2. Is the current legislation in PICs addressing 3. What are the gaps in legislation concerning the issues in (1) above & how can it be appropriately the above issues adequately? addressed? These countries have legislation in place governing open registry: – Cook Islands – Tuvalu – Kiribati Gaps – Vanuatu – Marshall Islands – PIMLAR currently reviewed and update maritime – Solomon Islands legislations Open Registry – Incorporate the recent IMO conventions (e.g., Wreck
– There appears to be adequate legislation by experienced ‘old timers’ like Vanuatu and Marshall Removal Convention 2007) Islands because there have been no major maritime incidents;
– But there is some concern for the new kids on the block (e.g., Cook Islands); How can it be addressed? – The lawyers don’t know the mechanics of these open registries (e.g., Vanuatu). – Identify the gaps in legislation and amend accordingly; Derelict Vessels & Wreck Removal – Inadequate / obsolete legislation – If no legislation then draft policies and legislation. Marine Insurance – Adequate / English common law legislations in PICs
174 ANNEX 25
Thank you from the Legal Eagles
175 ANNEX 25
Breakout Group Session 2 Breakout Group Session 2 For Ship Owners For Ship Owners 1. Access the effectiveness of existing national shipowners 1. Access the effectiveness of existing national shipowners associations in addressing substandard issues associations in addressing standard issues
Countries that were present at the discussion Current shipowners association is not effective in FSM addressing substandard issues PNG Shipowners, more on individual interest, try to attract business and in the process, improve their standard of TOKELAU service and operation. SAMOA From Fiji’s experience, the shipowners associations has KIRIBATI KIRIBATI spoken collectively for the quality of seafarers to be improved
Breakout Group Session 2 Breakout Group Session 2 For Ship Owners For Ship Owners 2. What are your views on introducing a regional shipowners 2. What are your views on introducing a regional shipowners association in the Pacific Islands Region? association in the Pacific Islands Region?
There should be shipowners/operators association in the More powerful position to negotiate on behalf of members PIC’s on tax reduction incentives Exchange of information, lessons to be learnt, ideas or To be able to lobby on shipowners perspective at PacMA, experiences for the regions shipowners to learn from each Transport Ministers meeting or regional Government other ie, to improve safety regulatory Authorities Good Bulk purchasing capacity on ship’s equipment and spares
176 ANNEX 26
Seminar on Substandard Shipping in the Pacific Islands region Principles of good governance 13 – 17 August 2007, Suva, Fiji Islands Regional Governance Pacific Islands Maritime Legislation and Regulations (PIMLAR): Good governance generic shipping legislation that PICs can adopt into their national legislative frameworks TOKYO MoU: establishes an effective Port State Control regime in the Asia–Pacific region to eliminate sub-standard shipping MoU on Recognition of Seafarer Qualifications: MoU between PICs, providing for the mutual recognition of certificates of competency under the STCW-1995. The MoU has been signed by all 14 PICs in 2005, and will remain in force for the next five years IMO-SPC MoU: MoU concerning support, exchange of information, and management of assistance programmes. The IMO delivers their Technical Cooperation Programme through the RMP. By Capt John Hogan ILO-SPC Letter of Agreement: To develop and strengthen Maritime Programme Manager cooperation of ILO and SPC with respect to matters concerning the Regional Maritime Programme, SPC maritime sector, particularly in the promotion of international conventions, training, dissemination of information and advocacy Suva, Fiji Islands
SPC Regional Maritime Programme SPC Regional Maritime Programme
Principles of good governance Administering Regulatory Systems National Governance National Maritime Policy: Enforcement of regulatory first step in developing an efficient, economic systems and effective maritime sector Some PICs have policies but work in progress Regional survey standards by RMP and PIMLA Regional standards on Maritime Legislation and Regulations: Legislation: Exist in PICs, being regularly examination and assessment updated with assistance from PIMLA and RMP Regulations: generic regulations available for Regional audit standards PICs to adopt it into their national laws Regional standards on ship Two-tier System of Rules RMP is working on developing a mechanism registration where Cabinet/Parliament is bypassed and the CEOs can be given power to promulgate and Trained and qualified surveyors sign off in those rules Will address the issue of delays in the Trained and qualified auditors enactment of appropriate legislations
SPC Regional Maritime Programme SPC Regional Maritime Programme
Implementing regional and sub- regional solutions Emerging Issues
2. Training and capacity building seafarer data and regional storage Regional training courses on various areas shipping management for SIS such as maritime security, maritime auditing, search and rescue, port operations codes of safe practice for Pacific and management, maritime administration, surveying, maritime law, etc. maritime sector Secondments in port state control, maritime law and maritime administration standards for safe and secure of 3. Coordinated approaches in safety and people and cargo from ship to security shore in SIS without ports RMP and the Working Group on Integrated Border Management collect, collate and disseminate RMP and OCO: pleasure vessel security Ship-to-shore PacMA working subcommittees analytical information vessels in the Maritime Examiners and Lecturers sub-committee transfer in Tokelau Audit sub-committee Pacific Survey sub-committee Maintenance of international Regional MOUs in place (as mentioned earlier) compliance measures
SPC Regional Maritime Programme SPC Regional Maritime Programme
177 ANNEX 26
Any questions?
SPC Regional Maritime Programme
178 ANNEX 27
Seminar on Substandard Shipping in the Pacific Islands region 13 – 17 August 2007, Suva, Fiji Islands Drivers of change The change that is happening in the shipping industry is Necessary Change in the Pacific happening at a faster rate than ever before. Islands Maritime Sector IMO is introducing new standards, conventions and rules faster than ever Increasingly controls and legislation are seen across all levels of society as more and more freedoms are being regulated Failure to comply with international standards could lead to serious repercussions for shipping By Capt John Hogan companies, port authorities and Maritime Programme Manager international seaborne trade. Regional Maritime Programme, SPC Suva, Fiji Islands REGIONAL MARITIME PROGRAMME – Substandard shipping seminar, Suva, 13 -17 August, 2007 REGIONAL MARITIME PROGRAMME – Substandard shipping seminar, Suva, 13 -17 August, 2007
SPC Regional Maritime Programme SPC Regional Maritime Programme
International Shipping Domestic shipping
International shipping in the region is well regulated and Domestic shipping in the offers little in the way of problems to Pacific island countries. region is to a large extent: Port State Control regime in place Old tonnage adequately ensures international poorly maintained standards are maintained. non-compliant with International shipping services to domestic shipping or non- the region are generally adequate and efficient: convention vessel regulations Frequency is acceptable and vessels adhere to published schedules. In some cases unsuited to Freight rates appear high, but costs are correspondingly high, the trade in which it resulting from an imbalance in trade, fragmentation of services and low productivity. operates
REGIONAL MARITIME PROGRAMME – Substandard shipping seminar, Suva, 13 -17 August, 2007 REGIONAL MARITIME PROGRAMME – Substandard shipping seminar, Suva, 13 -17 August, 2007
SPC Regional Maritime Programme SPC Regional Maritime Programme
Impediments to efficiency and Necessary change effectiveness 1. Cooperative purchasing of stores and spare parts While smallness, geographical isolation, limited between companies or operators using the equipment population and limited resources create their own 2. Greater responsibility given to ships’ crew difficulties, these factors alone do not explain the high 3. Maritime training to be more attuned to the needs of the costs and inefficiencies of transport services. industry Other factors include: 4. Are you a “dinosaur”, how much change have you put into place recently? Government involvement Infrastructure 5. Use of GPS to assist in voyage routing Pricing 6. Contrast of different companies operating on the same route, why are some always late and others on time… Monopolies Inadequate capitalisation 7. Preferential treatment of one operator over another by authorities Financial expertise
REGIONAL MARITIME PROGRAMME – Substandard shipping seminar, Suva, 13 -17 August, 2007 REGIONAL MARITIME PROGRAMME – Substandard shipping seminar, Suva, 13 -17 August, 2007
SPC Regional Maritime Programme SPC Regional Maritime Programme
179 ANNEX 27
Necessary change Necessary change
8. Fit internet to domestic ships, masters can send ahead pax, cargo Better shipping company management in terms of port spares, stores information to next port. rotation, office management , operations, crewing, 9. Contestable shipping markets: Where routes are viable, storing and bunkering commercialisation could be expected to lead to a more efficient and vibrant shipping sector. Allow for regional response to provide more technical 10. A standard design or series of standard designs based on a 45m, assistance to ship owners and higher-level training in 35m and 20m landing craft with one or two sets of derricks, bow ship operations and management. ramps operated with wires or chains (not hydraulics), cargo tanks, and facilities for passengers (toilets, sleeping racks that fold out Allowing regional cabotage rules also has the potential from hold sides). to lower domestic transport costs and encourage 11. New ships to be well constructed with heavy scantlings and innovation in PICs’ domestic shipping markets. heavy-duty surface coatings, robust engine installation Putting in place a coherent maritime policy to guide 12. Good equipment but basic, eg. magnetic compasses, not too decision-making much electronics. Derricks, plant, and, other systems suitable for low maintenance environment. Engines suited to operation on low- Significant improvements are needed in port grade fuel. maintenance and productivity
REGIONAL MARITIME PROGRAMME – Substandard shipping seminar, Suva, 13 -17 August, 2007 REGIONAL MARITIME PROGRAMME – Substandard shipping seminar, Suva, 13 -17 August, 2007
SPC Regional Maritime Programme SPC Regional Maritime Programme
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REGIONAL MARITIME PROGRAMME – Substandard shipping seminar, Suva, 13 -17 August, 2007
SPC Regional Maritime Programme
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