Ministry of Transport and Communications of Ukraine

MINISTRY OF TRANSPORT AND COMMUNICATIONS OF UKRAINE STATE DEPARTMENT OD SEA AND RIVER TRANSPORT OF UKRAINE STATE ENTERPRISE “THE KHERSON SEA COMMERCIAL PORT”

THE CODE OF TRADITIONS OF THE STATE ENTERPRISE “THE KHERSON SEA COMMERCIAL PORT”

KHERSON 2007 - 2 -

CONTENTS

1. Article1 General regulations…………………………………………………………р.2 2. Article 2 The port waters and territory …………...………………………………...р.4 3. Article 3 Ice campaign ……...………………………………………………………..р.5 4. Article 4 The pilot assistance in the port……...……………………………………..р.5 5. Article 5 Main types of manufacturing activity, services and proceedings of their rendering……………………………….….……………………………………………р.6 6. Article 6 Regulations on vessels handling in the port……………………………….. р.7 7. Article 7 Regulations on lay hours calculation……….……………………………...р.10 8. Article 8 Payments regulations………………………………………………………..р.12 9. Article 9 Relationships of the sides…………………………………………………. р.13 10. Article 10 Liabilities of vessels…..…………………………………………………… р.14 11. Article 11 Damaging transport vehicles ……………………………………………...р.15 12. Article 12 Control of port waters condition and preventing their pollution…………………………………………………………………………………р.15 13. Article 13 Fire safety…………….……………………………………………………..р.17 14. Norms of cargo handling and transport fleet servicing (appendices 1,2,3) …………………………………………………………………………………….р. 18,19,20

Те rms and abbreviations with explanations: SE “KSCP” – State enterprise “The Kherson sea commercial port”. CNs – cargo handling norms. AS – armed security. SPCI – State port control inspection. PCO– passport control office. SQD – sanitary-quarantine department. SIPQ – State inspection of plants quarantine. SGI– State grain inspection. D – discharging. L – loading.

ARTICLE 1 GENERAL REGULATIONS

The Code of traditions of the state enterprise “The Kherson sea commercial port” 1. 1. is based on: 1.1.1.International experience of sea commercial ports functioning. 1.1.2.international and national maritime law regulations. 1.1.3.legislation of Ukraine. 1.1.4.the Code of merchant shipping of Ukraine. 1.1.5.the port Statute. 1.1.6.compulsory resolutions in the Kherson sea commercial port. - 3 - 1.2.is the main document regulating: 1.2.1.the procedure and conditions of vessels handling and servicing in the port and the port waters. 1.2.2. Conditions and order of vessels entering and departure from the port. 1.2.3. The schedule and conditions of cargo delivering to the port and transferring from the port via water, railway, automobile and other types of transport. 1.2.4. Posibility and conditions of storing the cargo in warehouses and grounds of the port. 1.3. The port is open for vessels under all flags all year round and accepts vessels with the length up to 200 meters and the draught up to 7.6 meters in the fresh water. 1.4. For handling transport vehicles/ vessels, rail cars, motor vehicles the port has corresponding facilities including berths, warehouses, loading mechanisms. Discharging refridgirator cargoes from vessels’ holds as well as loading/discharging dangerous cargoes are performed directly. Dangerous cargoes are handled by the port corresponding to the rules of International organization on loading dangerous cargoes under previous agreement with the port and after the cargo owner has got permission from nature protection institutions. The cargoes are delivered to the port according to contracts, plans, schedules and other documents signed or coordinated by the port with compulsory Declaration of transport cargo characteristics and conditions of their safe transferring via sea transport and the Certificate of cargo corresponding to the Declaration for the moment of the beginning of discharging. The working hours in the port are from 8.00 to 17.00 except days off (including days off which can be announced by the government of Ukraine) and holidays. The lunch break is from 12.45 to 13.30. The port performs loading/discharging operations 24 hours according to the contract conditions in two shifts: The 1st shift is from 20.00 to 08.00 (lunch break is from 00.00 to 00.30 and from 04.00 to 04.30) The 2nd shift is from 08.00 to 20.00 (lunch break is from 12.00 to 12.30 and from 16.00 to 16.30) The holidays are January 1st, January 7th, March 8th, Easter, May 1st and 2nd, Trinity, June 28th, August 24th and other days which can be announced holidays by the government of Ukraine. The juridical port address is: SE “Kherson sea commercial port”, 4, Ushakov av., Kherson, Ukraine 73000. Telefax: port authorities +38 0552 325252, operator’s office +380 0552 481309, the department of foreign economy activity and commercial work – +380 0552 325274. E-mail [email protected] . Web: www.seaport.kherson.ua . The port telex 273032 PORT UX.

ARTICLE 2

THE PORT WATERS AND TERRITORY - 4 - 2.1. The sphere of the SE “KSCP” activity, inspection and control includes the port waters and entering canals on all water surphace while the top water level and consists of: -the road waters the upper border of which crosses the Dnieper river connecting the points of: 46о38I03I I N; 32о38I02I I E; 46о37I54I I N; 32о38I14I I E; farther down the river to backwaters 1,2, the arm of the Koshevaya river to meridian 32о36I00I I E, waters of the rivers: the Dnieper, the Olhovy Dnieper and the Rvach to meridian 32о18I14I I E. - the waters of the entering canal 50 meters in breadth from the Kherson sea canal to the Rybalche quarry and the quarry itself. The borders of the port waters include also of the Dnieper river from the line connecting the cannery backwater and the profilactory berth on the left bank of the Dnieper river and proceeds down the Dnieper to the points of: 46о38I03I I N, 32о38I02I I E; 46о37I54I I N, 32о38I14I I E. 2.2. The SE “KSCP” is located on both banks of the Dnieper river. The border of the port territory lies between the south-western edge of berth 2 along the square of the former sea station to Portovy lane, continues along Portovy lane from October revolution street to Petrenko street, in Petrenko street to Karl Marx street, borders with living quarters separated with a fence including the territory of the port garage, armed security and the Cultural centre (the Seamen’s Club). From Karl Marx street to Ushakov avenue the border of the port territory lies on the separating line along the cannary territory named after March 8 and the printing factory, farther along Ushakov avenue to the north-western edge of berth 6. All border line of the port is marked by the fence. The port territory also includes: а) coastal berth line 19 meters in breadth, 250 meters in lenth, along berths 8 and 9, and 10 meters in breadth, 110 meters in lenth along berth 10 which borders : -on the south-east –with the territory of the local water supplying organization; on the north-west – with the Port-elevator territory; - on the north-east – with the territory of the bread-baking complex; - on the south-west – with the river Dnieper. b) berth 7 territory which borders: -on the south-west – with October revolution square; on the north-west –with a nameless passage; on the north-east - with the territory of the local water supplying organization and the coastal line 100 meters in breadth from the water line. c) the coastal line 50 meters in breadth from the water line in backwaters 1,2 on the left bank of the river Dnieper. The lands are regarded as the port territory according to order 166 dated 96/04/26 adopted by the Ececutive committee of the Local Soviet of people deputates. ARTICLE 3 ICE CAMPAIGN - 5 - 3.1. The beginning and the end of ice campaign are announced by a resolution of Director of State department of sea and river transport of Ukraine. Based on it, the order is adopted in the port and sea enterprises about ice campaign and creating ice headquarters. Independent navigation is allowed to vessels if they have proper ice class. If a vessel lacks the ice class or her ice class is not sufficient, the vessel is included to the convoy (on agent’ or ship owners’ application) on the ship owner’ risk and liabilities with his written statement in case of possible ice damages. The ice dues are charged to the cargo owner for each ton of cargo or each container imported or exported to the port during the actual period of the announced according to the accepted proceedings ice campaign, but not less than 30 days. In cases when the ice campaign is not announced, as there is no ice in the canals and the port waters, the ice dues are charged from February 1st till March 1st. If the ice campaign is announced and prolongs because of weather conditions the ice dues are charged until the ice campaign is over. Ice dues rates are fixed in article 2.4 of “The Book of Tariffs on works and services rendered to cargo owners by sea ports of Ukraine” adopted by order 292 dated 95/10/31 by Ministry of transport of Ukraine (amended and added). Ice fleet services not connected with importing/exporting of cargo to/from the port are paid by the ship owner (agent etc.) according to the local port tariffs. 3.2. During ice campaign if ice convoying is required the vessels arrived for handling at one specialized berth are accepted for convoying and handling according to the dates and time of their arriving at the place of convoy forming (the port of Yuzhny road). The order of priority of accepting vessels arrived for handling at one specialized berth for convoying may be changed according to the cargo consignor’s application. 3.3. Conditions and regulations of necessary convoying vessels to/from the port during the ice campaign are determined by “The rules of navigation and pilot assistance in the north-western part of the Black Sea, in Bugsko-Dnieper-Limansky and Kherson sea canals”. ARTICLE 4 PILOT ASSISTANCE IN THE PORT

4. Pilot assistance while a vessel enters/departs from the port, shifts from berth to berth, from road to berth and vice versa are compulsory for all vessels and are paid according to the rates of the pilot dues. All mooring operations of vessels in the port are carried out only with tug assistance. (for pilot assistance in detail see in “The Compulsory regulations of the KSCP” p. 5.)

ARTICLE 5 MAIN TYPES OF MANUFACTURING ACTIVITY, SERVICES AND PROCEEDINGS OF THEIR RENDERING - 6 - 5.1. Vessels are accepted to the port for handling, staying and other operations only on previous agreement with Chief operator, the Marine safety service of the port and the Harbour master service. 5.2. The port within its territory and waters carries out under cotracts with shipowners, cargo owners and other clients compulsory operations and services including: 5.2.1. Loading/ discharging of vessels (including the operations headed by the port authorities), accumulating and storing of cargoes in the port warehouses, stowing, separating, fastening/ unfastening the cargo as well as dry cleaning of holds after discharging under a vessel’s application. 5.2.2. Transport-forwarding and storing operations with cargoes, transferring the cargo from one type of transport to another. 5.2.3. Arranging complete file of cargo documents on accepting and transporting the cargo. 5.2.4. Cargo handling under concluded contracts with clients according to the current tariffs of “The Book of Tariffs” adopted by order 292 dated 95/10/31 by Ministry of transport of Ukraine (amended and added). Tariffs are to be amended in case the normative base changes. 5.2.5. Water supplying from a floating device at berth or in the port waters, taking bilge and sewage waters (when a vessel stays in the port up to 10 days – not less than 20 tons, up to 30 days – not less than 30 tons), faecal waters, garbage. 5.2.6. Providing with: 5.2.6.1. tugs for mooring operations, caters for delivering to and from the road crew members, passengers, agents, authorities commissions. 5.2.6.2. floating cranes for loading operations at berths, on the road, in the port backwaters, in the Rybalche quarry. 5.2.6.3. barges for cargo storing, the time of the beginning of operations of the tug, cater, floating crane starts at the moment it leaves its place of staying, the time of the end of operations is marked when it returns to its harbour place. 5.2.7. Providing berths for staying of vessels (under the sides’ agreement). 5.2.8. Special fastening and unfastening the cargoes with fastening material of the ship owner or the cargo owner. 5.2.9. Controls the environment condition and takes measures to prevent and liquadate its pollution with dangerous substances in the port waters. 5.2.10. Creats conditions necessary for safe staying and navigating of vessels in the port waters. 5.2.11. Other services under the sides’ agreement. 5.3. In some cases the port carries out with interested persons special conditions of manufacturing some parts of cargo and handling transport vehicles.

ARTICLE 6 REGULATIONS ON VESSELS HANDLING IN THE PORT

6.1. Vessels are handled in the port on contract terms according to the applications - 7 - of cargo owners or their forwarders taking into account the capabilities of the port facities. The cargo owners or their forwarders according to the contracts must inform the port about the arrival of vessels at least before 6 days of the planned month. The application- information consists of : -the vessel’s name and her dimentions; -the date of arrival at the port; -the number and numeration of holds for handling; - the cargo list with cargo names and weight according to the nomenclature, presence of heavy weights, long-sized and over-sized cargoes. 6.2. The port accepts vessels for handling according to article 76 p.1 of “The Code of merchant law of Ukraine”, determines the dates of beginning and supposed ending of a vessel’s handling. 6.3. Under the staying hours of a vessel one should understand all the time while the vessel stays in the port from the moment she arrives at the port Kherson (the end berthing or anchoring in the road in the port waters according to the port directions to the moment of her departure from the port Kherson /beginning of unberthing or taking off the anchor). 6.4. Under the lay hours of a vessel one should understand the time which is given to the port according to the cargo norms (CNs) for completing all operations on handling the cargo. To the lay hours the time for completing the operations on fleet servicing not -mentioned in CNs is added. 6.5. CNs fix normative intensity of loading operations and additional operations including: 6.5.1. Cleaning of cargo holds after discharging. 6.5.2. Additional operations connected with cargo. 6.5.3. Closing/opening holds. 6.5.4. Maneuvers connected with the vessel’s handling. CN are fixed in tons for good-weather days according to enlarged nomenclature of cargoes for vessels arriving at the port in terms announced by the cargo owner (ship owner, agent) and confirmed by the port. CN may be fixed at the sides’ agreement and are stated in the contract. Cargo handling and vessel servicing norms are pointed in appendices 1,2,3. 6.6. Specialization of simultaneously working berths in the Kherson sea port: berth 2 – general cargoes (loading/discharging) berth 3 – general cargoes (loading/discharging) berth 4 – general cargoes (loading/discharging) berth 5 – fertilizers, ammonia sulphate in bulk (loading) berth 6 – grain cargoes in bulk via special complex (loading) berths 8,9,10 – grain cargoes (loading) berths 9,10 – liquid cargoes (loading) berths of backwaters 1,2 - fertilizers, coal, cokes, mineral-building materials (loading) the Rybalche quarry – quarrying, loading of sand. Each berth provides the handling of one vessel at one time. 6.7. A vessel is considered to arrive in time if she arrived at the port Kherson (the end of mooring or anchorage in the port waters) and gave notice of readiness on the date of her planned arrival was marked in the cargo owner’s (ship owner’s, agent’s) application or if she arrived one day later than it was planned. - 8 - 6.8. A vessel is considered to be late if she arrived at the port Kherson (the end of mooring or anchorage in the port waters) and gave notice of readiness later than the date of her planned arrival was marked in the cargo owner’s (ship owner’s, agent’s) application. The vessels arrived at the port later than it has been planned lose their order of priority of handling. The port has the right to arrange another order of priority of accepting the vessel which is late, not violating the rights of other vessels, and informs in writing the agent and the cargo owner about this fact. 6.9. The master or the agent of a vessel must inform the port about any delays on the way which can result in the vessel’s being late against the planned time. In other case and if the master gives false information or not in time, 24 hours are added to the lay hours if it is not considered otherwise in the agreement. 6.10. Unver the charter vessel one should understand a vessel (substitute) working on the charter registered in the State department of sea and river transport of Ukraine according to the schedule coordinated by the port and the ship owner (the cargo owner) for three months not later than the 20th day of the month preceding the three months. The schedule may be corrected according to the sides’ agreement in the case of the force majeur circumstances. In case a vessel is late against the fixed time she is accepted for handling on general regulations. 6.11. The vessel announced by the cargo owner (the ship owner) but arrived at the port for other cargoes (with other cargoes) is accepted for handling according to the sides’ agreement and the order of priority of handling. 6.12. If the cargo owner (the ship owner) does not agree with the terms of handling the vessel he can direct her to another port informing about it not later than 5 days before the planned date of her arrival. 6.13. Vessel’s masters (ship owners, agents, cargo owners) must inform the port in written application about the approaching 10 days before the planned date of arrival and specify the time of the vessel’s arrival at the port in 72,48 and 12 hours (local time of the port of arrival) and in case of a shorter period of voyage not later than 2 hours after the departure from another port. Radio notice of readiness given by the captain is considered the vessel’s information about her approaching the port. The port informs a vessel about the place of berthing, beginning and the way of performing operations not later than 2 hours before her arrival at the port. The port informs a vessel in writing about forthcoming shifting, dragging, beginning of additional operations in 2 hours if these operations will take place during day time (from 08.00 to 17.00) and before 15.00 if they are to be performed in the evening or at night (from 17.00 to 08.00 of the next day). The cargo owner’s , master’s (ship owner’s, agent’s) information must include: the vessel’s name, length and breadth, planned date of arrival at the port, data on the cargoes which are to be loaded/discharged, the size of hatches in case of loading fertilizers directly from special rail-cars, cargo list in enlarged nomenclature with specification of cargo amount in each item (in the turn of discharging from the holds from top to the bottom) and special physic-chemical characteristics of the cargoes according to the Quality Certificate, data on heavy weight, long-sized and over-sized cargoes, data on the vessel’s readiness for performing all operations on the vessel’s handling specifying the required amount of bunkering and water. Additional information on arrival is given in “The Compulsory regulations in the KSCP”. - 9 - 6.14. After the vessel’s arrival at the port as well as after completing discharging opertions in case the vessel arrives at the port for loading the master /the agent gives the notice of readiness to commence operations and handling of all or several holds during working hours officially fixed in the port. if needed the readiness of holds for loading/discharging must be confirmed by a special inspection/commission summoned under the vessel’s application at the cargo owner’s/ship owners’ expenses. 6.15. In case a vessel is inspected by PC, customs, SQD, SIPQ, SGI surveying companies the port accepts the notice of readiness after the obtaining of the Certificate of Pratique. 6.15.1. A vessel is considered not ready for cargo operations in the following cases: - if fumigation/degasation while discharging is required. -if the vessel is given to the port for loading with holds which are not cleaned or not meet the terms of corresponding inspections. -partial or total lacking of cargo documents for discharging. -not meeting the terms of fire inspections and the rules of labour safety in sea ports. -Register documents of the vessel expired. -lacking the Certificate for transporting dangerous cargoes by sea. -technical conditions of the vessel do not meet the terms of the regulations of transporting the given cargo or navigation safety. 6.16. By the time specified in the notice of readiness the master must provide the readiness of the vessel for berthing, all holds and the deck for discharging/loading according to the cargo plan, cargo mechanisms and hatches including their opening, lighting the places for performing cargo operations (in holds, on the deck, near the vessel’s side) according to the terms of fire inspection and the rules of labour safety in sea ports. Cargo lifting capacity of the vessel’s cranes (winches) must be confirmed by the documents of the Classifying Committee. 6.17. The ship owner (cargo owner) has the right to send to the port a substitute vessel instead of the one applied earlier. The substitute must correspond to the substituted vessel in loading and the characteristics of the vessel. The ship owner (cargo owner) must inform the port about the substitute not later than 3 days before the schedule date of the arrival at the port. 6.18. The ship owner (cargo owner) has the right to change the order of priority of handling the vessels belonging to him not violating the interests of other ship owners (cargo owners) and the port. 6.19. The ship owners must send vessels to the port with proper stowing of cargo in the holds, condition state of cargoes, complete file of cargo documents (discharging) and proper for performing cargo operations (loading). 6.20. If import cargoes are brought to the port in non-transportable packing, unsorted with obscure marking or without marking, which is confirmed by a statement the carrier in short terms coordinates with the cargo owner the conditions of loading such cargoes off the port. 6.21. The cargo owners are responsible before the port if the discussed amount of cargo lacks in quantity adopted for transferring in month plans of import, export and transit cargoes of the Ministry of transport and communications of Ukraine according to the Arbitrary and Civil laws of Ukraine and the contracts concluded.

ARTICLE 7 - 10 -

REGULATIONS ON LAY HOURS CALCULATION

7.1. While calculating lay hours, Saturdays, Sundays and the days of official holidays as well as the time after 16.00 on Friday and the day preceding holidays to 08.00 of Monday and days following official holidays are excluded from the lay hours no matter the vessel was handled or not. 7.2. The lay hours of the vessel arrived in time are calculated by distraction of the cargo weight to the corresponding CNs and if there is no order of priority begin from 16.00 of good-weather day if the notice of readiness to commence loading operations is given by the master before 12.00, and from 08.00 of the following working day if the notice is given after 12.00 according to p.6.14, 6.15. For a vessel which arrived before the date agreed with the port, the calculation of lay hours begins from the date confirmed by the port considering holidays and days off. 7.3. In case the berth is occupied the lay hours of the vessel requiring the berth of the same specialization commence from the first shift of a good-weather day after the completing of handling the previous vessel no matter to which berth the new vessel is moored. 7.4. If cargoes of two and more nominations with different CNs are to be loaded/discharged from a vessel, her lay hours are calculated as the sum of time determined for transferring each cargo according to the fixed CNs. With additional loading/discharging CNs are charged with 0.75 coefficient. If a vessel sent provides for loading/discharging operations incomplete number of holds according to the cargo plan, the CNs are reduced proportionally to the number of the provided holds to the total number of holds. 7.5. In case of special or additional fastening of the cargo on a vessel’s demand, performing especially labour –consuming preparing operations connected with its condition (explosion, picking, pseudo-loosening, full or partial re-packing ), while loading poisonous and flammable cargoes with gas-masks etc., additional time is added to the lay hours fixed according to the sides’ agreement. Special fastening is fastening requiring performing operations to reinforce the deck, keel-blocks constructing, special pavements or welding operations. 7.6. Extra expenses connected with discharging of non-conditioned cargoes and cargoes in defected packing as well as discharging from lockers, deep-tanks and other rooms not equipped for normal work of people and mechanisms are charged to the vessel and the actually spent time is added to the lay hours. 7.7. The lay hours of a charter vessel are fixed according to the schedule coordinated by the port and the ship owner. 7.8. The lay hours break if: 7.8.1. In case of unfavourable weather conditions (hurricane, storm, strong rain, rain, flood, snowfall, ice covering, fog), no matter the operations were performed by the port or not. If under unfavourable weather conditions cargo operations and the vessel handling are performed the port takes measures to prevent the cargo damage, violation of the rules of labour safety in sea ports and navigation safety. 7.8.2. In case of natural calamity (earth-quake, fire, shifting of ground). 7.8.3. In case the rail cars are not delivered for the cargoes transferred only by direct variant, according to the application made by the port in full. 7.8.4. The cargo owner is responsible for: - 11 - 7.8.4.1. Arranging cargo documents. 7.8.4.2. Absence of orders. If no orders for the vessel arrived in time agreed with the port, the beginning of lay hours is shifted for 48 hours. If there are no orders during 48 hours, the lay hours commence when orders are given with the first working shift of a good- weather day. 7.8. 4.3. Absence of cargo. 7.8.4.4. Fumigation after discharging is required etc. 7.8.5. The ship owner is responsible for: 7.8. 5.1. Waiting the ship owners’orders. 7.8.5.2. Ship repairs (except repairing damages made by the port during cargo operations). 7.8.5.3. Waiting of fuel bunkering . 7.8.5.4. Taking in/off ballast not compatible with cargo operations. 7.8.5.5. General ship operations (change of crew, ship learnings). 7.8.5.6. If the holds are not ready for cargo operations. 7.8.6. On the responsibility of other organizations. 7.8.7. In case of force majeur circumstances (strike, lock-out, announced or not announced war, threaten of war, terror act, blockade, revolution, revolt, mass anarchy, public demonstrations, illegal actions of third persons, fire, destroys made by explosives, radiation or chemical pollution). 7.9. In order to fix the stay hours actually spent by a vessel in the port, the (agent) together with the port registers a " Statement of Facts ". 7.9.1. A "Statement of Facts" is made in Ukrainian as well as in English by the vessel/agent. 7.9.2. If a vessel is discharged in the port and then loaded, separate "Statements of Facts " are made for discharging and loading. 7.9.3. The "Statement of Facts" is signed by the master, agent, cargo consignor (forwarder) and the port. The agent must sign a "Statement of Facts" in the port operator’s office. In case the signature of the port is absent no claims concerning the lay hours are accepted. 7.9.4. Records in the "Statement of Facts" cannot be amended and none of the sides can refuse its signing. If one of the sides does not agree, it makes corresponding notes in "Statement of Facts". 7.9.5. Signing the "Statement of Facts" must not delay the vessel’s departure.

ARTICLE 8 PAYMENTS REGULATIONS

8.1. Payments for using lay hours (paying dispatch/demmurage) of vessels are made with cargo owners (ship owners) under concluded contracts. 8.2. The dispatch rate makes 50 per cent from demmurage rate. 8.3. The dispatch/demmurage rates are fixed in contracts concluded with cargo owners/ship owners for each gross-registered ton per day or proportionally for the part of day spared or overtime lay hours. - 12 - Calculation of demurrage: Demurrage rate х gross-registered tonnage of vessel : 24 hours х overtime of lay hours. 8.4. While handling the same cargo of two and more cargo owners the dispatch/demurrage is calculated proportionally to the amount of cargo of each cargo owner. 8.5. On the cargo owner’s (ship owner’s) request of intense handling of a certain vessel the port regarding the facilities capability makes additions to the contract about cargo handling with specifying a certain sum of compensation for intensive handling of the given vessel. 8.6. The spared lay hours for which dispatch is calculated cannot exceed lay hours of the vessel. 8.7. In case there are no specifications in the contract between the ship owner and the port that dispatch/demurrage calculations are not produced, further claims of possible losses of the port or the consignor of the cargo (the cargo owner) as to the overtime of lay hours are not accepted. 8.8. The port in 10-days term after signing up the "Statement of Facts" sends to the cargo owner (ship owner) or other firms and organizations with which it concluded contracts all necessary documents fixing fulfilling liabilities of the port as to handling and servicing the vessel with specifying the sum of dispatch/demurrage if it is not noted otherwise in the contract. 8.9. While conducting payments with cargo owners (forwarders) the port is guided by “The Book of tariffs of operations and services rendered to cargo owners by sea ports of Ukraine” adopted by order 392 dated 31st October 1995 of Ministry of transport of Ukraine (amended and added). 8.10. While calculating the fees of the port dues and services rendered to a vessel by the SE “KSCP”, the port is guided by Regulation 1544 dated 2000/10/12 of Cabinet of Ministers of Ukraine (amended and added) and order of Ministry of transport of Ukraine “On amendments and additions to dues and fees for services rendered to vessels in sea ports of Ukraine” #711 dated 2000/12/15 (amended and added).

ARTICLE 9 RELATIONSHIPS OF THE SIDES

9.1. The sides (cargo owners, ship owners and the port) are responsible for not fulfilling their liabilities specified in the contract. 9.2. Separating, fastening and bedding materials required for performing cargo operations are provided by the cargo owner/ship owner at his expense. The operations on separating and fastening the cargo performed on a vessel are charged to the cargo owner/ship owner. Special equipment (steel, ropes, lanyards, shackles, steel cables, stripes, equipment for their using and other devices necessary for fastening the cargo) must be provided by the - 13 - cargo owner/ship owner and have certificates of resistance from plants-manufacturers and meet technical requirements of corresponding normative documents. The responsibility for observing the rules of separation, fastening and stowing lies on the vessel. Making supports for accepting the cargo to the deck and fastening the deck cargo are charged to the cargo owner/ship owner and under the master’s responsibility no matter these operations are performed by the crew or by the forces and facilities of the port under the master’s application. Charter and specialized vessels working according to the schedule coordinated by the port must have fastening materials to be re-used. 9.3. The distribution of the cargo in the vessel is performed according to the cargo plan adopted by the master and coordinated by the port. The master of a vessel is responsible for correct distribution, piling and fastening the cargo in the vessel’s holds and deck. The ship owner is responsible for separation of cargo parts specified in the bill of lading and the separation quality. If these conditions are not observed all expenses connected with the cargo sorting while discharging/loading are charged to the ship owner. Loading the cargo to the deck is performed with the agreement of the cargo owner and at his own risk. 9.4. In case a vessel delays in the port after completing by the port all operations (staying-off ) and if the operations are not completed in time but can be performed at another berth, the port must provide the vessel with a vacant berth or anchorage place in the road. Fees for using the berth or anchorage place are charged according to p.8.10 of “The Code of traditions of the SE ‘KSCP’ ”. The master of a vessel on the port’s demand must leave the berth to prevent the delay of handling other vessels. In case a vessel leaves the berth not in time, the master (ship owner) is responsible before the port for staying the next vessel idle in the sum of the cost of her staying while waiting the berth as well as pays the port dues, enforced idleness of rail-cars, man power, mechanisms. 9.5. Shifting of a vessel in the port during loading operations can be made once during loading/discharging the cargo and if the vessel’s shifting is required in the case of the composite loading of the vessel because the berth specialization, one more shifting can be performed and is charged to the ship owner. All other shiftings connected with the cargo are paid by the cargo owner under his application. The time required for shifting a vessel from the berth of discharging to the berth of loading is specified in the "Statement of Facts" and fees for tugs, moorers, delivering pilots are charged to the ship owner /cargo owner correspondingly. All additional shiftings performed at the port’s demand are made at the port’s expenses. Expenses on shifting and dragging a vessel caused by incorrect information are charged to the responsible side. In ice conditions the time spent by vessels for maneuvers is counted according to the actually spent time. 9.6. According to the Law regulations on the enterprise the port concludes contracts/agreements with cargo owners/ ship owners and other clients for handling and servicing vessels, tranferring the cargo. A contract /agreement is concluded for any term up to 1 year or for handling a certain vessel. 9.7. The port has the right to correct articles of the “Code of traditions of SE - 14 - ‘KSCP’ regulations in the case of changes in the law or other normative acts influencing normal functioning of the port. The port informs interested sides about all changes in the articles in the 30-days term.

ARTICLE 10 LIABILITIES OF VESSELS

10.1. On the port’s demand a vessel must load/discharge the cargo 24 hours round as well as on days off and holidays providing for free electricity, winches, cranes, slings, lighting and other equipment necessary to perform loading or discharging a vessel. Cargoes are loaded/discharged at the vessel’s side with compulsory tally receipts for each lifting signed by both sides. A vessel must provide the cargo discharging according to bills of lading. In case a vessel does not provide with their tallies, the port tallies’ counting is accepted. 10.2. During breaks in loading or discharging any cargo and in the case of bad weather conditions the port performs the closing and opening of holds. If the portal or floating cranes of the port are used the fees are charged to a vessel’s side. 10.3. The cost of enforced idliness of technical and labour resources caused by a vessel (disrepair of loading mechanisms of a vessel, absence of lighting, stoppage of loading operations on a vessel’s administration’s requiest or responsibility etc) is paid by a vessel according to the rates current in the port for the day of idleness and the time lost because of these reason is excluded from lay hours. 10.4. A vessel (the ship owner) is responsible before the port for damaging berths, the port constructions, mechanisms if it is her/his fault according to the port’s bill. All breakdown damages caused by a vessel are investigated by Harbour Master.

ARTICLE 11 DAMAGING TRANSPORT VEHICLES

11.1. The port is responsible before the ship owner or other owner of transport vehicles for damaging a vessel, rail cars or automobiles caused by the port confirmed by a statement produced in the presence of the port representative during the shift when the damage was made. In case the master or the owner of transport vehicles has not launched claims about the damages in the fixed terms the port is not responsible for the damages. - 15 -

ARTICLE 12 CONTROL OF THE PORT WATERS CONDITION AND PREVENTING THEIR POLLUTION 12.1. All vessels entering the port waters must be equipped, have ship documentation according to the terms of the International convention of MARPOL 73/78 and the national law of nature protection. All vessels, organizations and persons being in the port waters and territory must meet the terms of the law of Ukraine on the environment protection. Constructing, exploitation of objects and performing operations which may influence the environment in a negative way are allowed if there are positive resolutions of the state ecology expertise. 12.2. It is forbidden to all vessels, other floating devices while they are in the port waters: 12.2.1. To pollute the atmosphere by casting dangerous substances concentration of which exceeds permissible norms. 12.2.2. To take out and throw garbage, all kinds of manufacturing and domestic wastes to the port territory on their own; to use the ship incinerator for burning wastes. 12.2.3. To use dispersants for purifying the port waters. 12.2.4. To enter the port with open plumbing system. 12.2.5. To throw into water substances dangerous for people’s health and living resources of the water environment, namely: - petroleum, petroleum products, petroleum remnants, mixed petroleum products which have it in any concentrations including purified on the ship equipment; - remnants of any cargo, separation materials used during transportation or loading/discharging operations; - domestic and sewage waters including those purified in purifying equipment; - any other sewage if water changes colour, smell, transparence or the sewage results in the appearance of visible floating particles; - garbage and wastes; - any ballast without the permission of the State ecological inspection and institutions of the State sanitary epidemiological inspection which pass resolutions as to the corresponding of water quality to permissible concentrations of substances based on water analyses. 12.3. To prevent the port waters pollution the vessel’s administration is obliged: 12.3.1. Before entering the port waters: 12.3.1.1. To close vents and other devices from which the emission of polluting substances and the water containing them is possible; 12.3.1.2. To switch the sewage, drainage system and the system of domestic waters to accumulation (into special tanks). 12.3.1.3. To register all operations with dangerous substances as well as actions to prevent pollution in the ship documents (the book of petroleum operations, the book of garbage operations, the log-book). 12.3.2. While mooring and staying in the port: 12.3.2.1. To seal all locking devices of the vessel, together with the State port control inspection inspector to specify the list of locking devices which are to be sealed. The sealing is performed by the inspector of the SPCI. After the sealing of the devices by the inspector of the SPCI the statement of sealing of the vessel locking devices according to the - 16 - fixed sample with the record in the log-book is made. The responsible persons while sealing are: Harbour master of the port (organization of sealing in the port), the inspector of the SPCI (performing of proper sealing) and the master of the vessel (responsibility for damaging and/or removing the seals). 12.3.2.2. The waters containing petroleum, sewage, domestic waters, petroleum remnants, garbage, food staffs wastes etc. are to be given to the collecting boat or to the coastal collecting equipments. Their collection and exportation is performed under masters’ applications. 12.3.2.3. Ship operations and repairs (painting free-board, cleaning decks, holds etc) which can cause casting of dangerous substances into the port waters are forbidden. A permission to perform such operations, as an exception, can be adopted by the representative of the SPCI and the State ecological inspection on condition that all measures to prevent the environment pollution will be observed by all means. 12.4. During cargo handling operations with petroleum products booms around the vessel and obtaining the permission from the representative of the State ecological inspection on the North-western part of the Black Sea environment protection are compulsory.

12.5. In case any dangerous substances are cast as well as in case of the threat of their emission, the vessel administration is obliged in the quickest possible way (radio, telephone, courier) to inform the port control representative on duty (PORT CONTROL – VHF CANNEL 16,14), the port operator on duty (VHF CANNEL 9), the ship agent; to take measures to minimize or liquidate pollution and its consequences as well as it is necessary to inform about all noticed pollutions of the waters specifying the exact time, place, character and direction of moving. 12.6. In the case of breakdown petroleum pollution, the vessel dislocated in the petroleum field must not start moving without a special permission of the coordinator of liquidation operations. 12.7. Vessels and all floating devices are forbidden to cross the polluted waters if it is not connected with the navigation safety. While passing near the region where petroleum is collected it is required to move at minimal slow speed. 12.8. Persons responsible for violation and not-meeting the terms of normative acts on nature protection are brought to trial according to the current law of Ukraine and compensate all port expenses to liquidate the pollution and its consequences as well as the port expenses to hire the equipment, floating devices and personnel of other enterprises involved in the liquidation of the pollution consequences. ARTICLE 13 FIRE SAFETY

13.1. Fire safety in the port is secured by the strict observing of the terms of Appendix 5 to “The Compulsory regulations of the KSCP”. 13.2. All terms of current norms, rules and other normative acts concerning fire safety are obligatory for organizations, vessels as well as juridical, physical persons and foreign citizens present on the port territory (waters) who in their turn are responsible for securing fire safety. Official, physical persons and foreign citizens responsible for violation of current - 17 - norms and rules of fire safety are brought to administrative, legal and other proceedings according to the current law. 13.3. The control of observing the fixed norms and rules of fire safety lies on the Fire safety department of the port.

DIRECTOR GENERAL OF THE STATE ANDREY YU. YEGOROV ENTERPRISE “THE KHERSON SEA COMMERCIAL PORT”

Appendix 1 to the Code of traditions of the SE ‘KSCP’-2007 NORMS OF CARGO HANDLING AND DRY-CARGO FLEET SERVICING IN THE SE “THE KHERSON SEA COMMERCIAL PORT”

NO CARGO TRAFFIC NAME TONS PER VESSEL ON A GOOD- WEATHER DAY 1 2 3 - 18 - 1 REF. CARGOES (D) 400 2 METAL GOODS (D, L): (reinforcement, metal rolls, 2500 steel pigs, slabs, metal in packs) 3500 3 SCRAP METAL (L) 500 4 WIRE ROD (D, L) 1000 5 PIPES (D, L) 1000 6 GEN. IMPORT (D) 1 place of 50 kg and over weight 500 1 place of up to 50 kg weight 300 7 GENERAL EXPORT (L) IN BOXES 750 8 CARGO IN BAGS (L) 1000 CARGO IN BAGS VIA PACKING DEVICE (L) 750 9 CARGOES IN BIG BAGS, PALLETS, PACKAGES (L/D) 1500 10 SULPHUR (L) 2000 11 FERTILIZERS IN BULK SIDE TO SIDE (L) 2500 12 FERTILIZERS IN BULK RAIL-CAR –VESSEL WITH A 100 CRANE (L) 2500 13 AMMONIA SULPHATE IN BULK (L) 5000 AMMONIA SULPHATE IN BULK FROM OPEN RAIL CARS (DIRECT VARIANT) (L) 2000 14 PHOSPHORITES SIDE TO SIDE 2000 15 FERRO-ALLOYS IN BULK (L) 2000 16 COKES IN BULK (L) 3000 17 COAL IN BULK (L) 5000 18 TIMBER ROUND (PLANK TIMBER) (L) 600 TIMBER TECHNOLOGICAL (L) 500 19 MINERAL-BUILDING MATERIALS IN BULK (L) 5000 20 QUARTZITES (L) 5000 21 CLAY, KAOLIN IN BULK (L) 2000 22 OIL LIQUID (L) 3000

DIRECTOR GENERAL OF THE STATE ANDREY YU. YEGOROV ENTERPRISE “THE KHERSON SEA COMMERCIAL PORT” Appendix 2 to the Code of traditions of the SE ‘KSCP’-2007 NORMS OF GRAIN CARGO HANDLING IN THE SE “THE KHERSON SEA COMMERCIAL PORT”

NO CARGO NAME VARIANT OF HANDLING LOADING FROM DIRECT WAREHOUSES VARIANT VIA LOADING AUTOMOBILE TRANSPORT GRAIN CARGO IN BULK: TONS PER VESSEL ON A GOOD- WEATHER DAY

1 GRAIN LIGHT: 800 Side to side – sunflower, sesame, anise, flax 850 seeds, oats, bran, press-cake, oil- rail- car-vessel cake, granulated press-meal, rape, with a 100-tons barley crane - 1500 2 GRAIN HEAVY: 2000 Side to side 2000

wheat, corn, rye, pea, barley Side to side from a barge of the “Dunayka” type 1500 rail- car-vessel with a 100-tons crane - 3000

NO CARGO NAME VARIANT OF HANDLING LOADING VIA GRAIN COMPLEX:

GRAIN CARGO IN BULK: TONS PER VESSEL ON A GOOD- WEATHER DAY

1 GRAIN LIGHT: 2000 sunflower, sesame, anise, flax seeds, oats, bran, press-cake, oil- cake, granulated press-meal, rape, 2 GRAINbarley HEAVY: 3000 wheat, corn, rye, pea, barley - 20 - DIRECTOR GENERAL OF THE STATE ANDREY YU. YEGOROV ENTERPRISE “THE KHERSON SEA COMMERCIAL PORT”

Appendix 3 to the Code of traditions of the SE ‘KSCP’-2007 NORMS OF GRAIN CARGO HANDLING IN THE SE “THE KHERSON SEA COMMERCIAL PORT”

NO CARGO NAME VARIANT OF HANDLING LOADING VIA ELEVATOR:

GRAIN CARGO IN BULK: TONS PER VESSEL ON A GOOD- WEATHER DAY

1 GRAIN LIGHT: 3000 sunflower, sesame, anise, flax seeds, oats, bran, press-cake, oil- cake, granulated press-meal, rape, 2 GRAINbarley HEAVY: 4000 wheat, corn, rye, pea, barley

DIRECTOR GENERAL OF THE STATE ANDREY YU. YEGOROV ENTERPRISE “THE KHERSON SEA COMMERCIAL PORT”