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TMTI EDUCATIONAL ISSUES
ABBREVIATIONS
ADB Asian Development Bank AMC Australian Maritime College AusAID Australian Aid for International Development BIMCO Baltic and International Maritime Council EA executing agency EU European Union FMS School of Maritime Studies, Fiji Institute of Technology FSC Flag State Control GMDSS Global Marine Distress Satellite and Safety Systems IMO International Maritime Organization IR Integrated Rating ISF International Shipping Federation ISM International Ship Management NMC National Maritime College, Madang, Papua New Guinea NZODA New Zealand Overseas Development Agency PSC Port State Control RMP Regional Maritime Program (see SPC) SAR Search and Rescue SICHE Solomon Islands College of Higher Education SPC Secretariat of the Pacific Community STCW Convention on Standards of Training, Certification and Watchkeeping TA technical assistance TEC Tuvalu Electricity Corporation TMTI Tuvalu Maritime Training Institute TOR terms of reference TOSU Tuvalu Overseas Seamen’s Union
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A. Tuvalu Maritime Training Institute (TMTI)
1. The institute provides training for young Tuvalu men to enable them to seek employment aboard foreign vessels. It offers three pre-sea programs yearly each taking 20 new entrants, and all of these seafarers are trained for overseas shipping employment. In order that trainees continue to be qualified to work on international ships, the institute must conform to the standards as defined by the International Maritime Organization (IMO) in the requirements stipulated by the International Convention on Standards of Training, Certification and Watchkeeping for Seafarers as amended in 1995 (STCW 95). This requirement also applies to the free refresher and upgrade training offered by TMTI to the 150 working seafarers who annually have attended in order that they will be able to continue their employment after the STCW 95 implementation date of 1 February 2002.
2. It is extremely important that the planned upgrade and infrastructure investment is successful, as Tuvalu seafarers would no longer qualify for overseas employment if the STCW 95 standards are not met, and revenue flows to the islands would subsequently suffer significantly. The corporatization of TMTI in July 2000 was a major step toward professional management of the institute along sound business principles, and provides a basis to ensure the school is placed on an improved operational footing for the future.
3. Continued compliance with the requirements of STCW 95 may ensure that seafarers may continue in employment overseas, but the global outlook for the employment of seafarers is predicted to become increasingly competitive and uncertain, particularly for ratings. In light of these predictions it is critical that the pre-sea training offered at TMTI delivers skills and attributes above the minimum prescribed in order to deliver the best employment outcomes for graduating trainees. B. Compliance with IMO Requirements: A National Perspective
4. STCW underwent a major revision in 1995 (referred to as STCW 95). The new amendments entered into force on 1 February 1997 and stipulate the standards that every country must ensure its training institutions and maritime administration must meet, in order that its nationals may work on foreign-going vessels and that vessels sailing international waters under their flag may continue to operate. The purpose of the Convention is to ensure that all seafarers are educated and trained to at least a minimum standard and have sufficient experience to perform their duties competently, and thus minimize risk to life, property and the marine environment.
5. Tuvalu gained White List status in November 2000 after compilation of a submission that documented the policies and procedures established in order to ensure that required standards as outlined are met. This initial assessment by IMO was largely based on information supplied by Tuvalu itself, and was essentially a desktop audit exercise. However, attaining White List status is just the beginning of the work necessary to ensure the continued employment of Tuvalu seafarers. Those standards and procedures specified in the original White List submission to IMO must be adhered to, and the Marine Department must be able to demonstrate that working systems to ensure compliance are in place. It is essential to understand it is the Marine Department (as the maritime administration of Tuvalu) that is responsible for compliance and is answerable to any outside agency. 3
6. In order to maintain White List status , Tuvalu must undertake an external audit process at intervals of no greater than every five years. This external audit of is intended to identify the actual extent of compliance, determine the effectiveness of quality systems, provide opportunity to improve quality control, and establish an effective and efficient audit system. The performance and quality systems of the Marine Department in roles other than ensuring the quality and conduct of training at TMTI is also subject to this external audit process, including Search and Rescue (SAR), Port State Control (PSC) Inspections, Flag State Control (FSC) Inspections, and the certification of seafarers.
7. The Marine Department is also obliged to establish a history of internal audit of systems and performance against the documented standards originally provided to IMO in the initial submission for inclusion on the White List, with particular regard to (in this instance) the conduct of training at TMTI. Now that personnel from both organizations have attended the appropriate audit training, it is essential that the Marine Department and TMTI each begin an annual audit process of performance of the other organization against the criteria submitted to IMO in order to cement systems and audit history in place.
8. There is also an obligation and duty to establish that those vessels sailing under the flag of Tuvalu on international voyages are fit for purpose and compliant with all international requirements when they do so. The process by which the maritime administration establishes that this is indeed the case is termed a Flag State Control (FSC) Inspection, and all parties to STCW 95 agree to establish mechanisms designed to verify their vessels are safe to proceed on international voyages. The certification allowing the Nivaga II to carry passengers internationally has currently expired, putting Tuvalu in breach of this requirement.
9. As a party to STCW 95 with White List status, the Marine Department is obliged to conduct Ports State Control (PSC) inspections intended to monitor compliance with STCW 95 aboard all commercial foreign vessels entering Tuvaluan ports in order to ensure that trading, manning and other certification is valid and current, and that all watchkeeping personnel have certificates endorsed as compliant with STCW 95. Similarly all vessels sailing under the flag of Tuvalu are subject to these inspections on entering a foreign port in order to verify the necessary trading and manning certificates, and to ensure the vessel is fit for purpose. If any vessel is found to be below standard the maritime administration of the host country may order it detained until the identified problem is rectified. Maritime administrations share exception reporting identified in the course of PSC inspections, and this could lead to employment difficulties for any nationals whose maritime authority is identified as being in consistent breach.
10. By February 2002 individual officers and crew must be able to provide proof that they meet all new requirements for upgrading courses and additional requirements, in order to be issued certificates endorsed as compliant with STCW 95. It is a requirement that the maritime administration keep records of seafarers’ certification and courses attended, along with the relevant dates and details of issue. The Regional Maritime Program (RMP) section of the Secretariat of the Pacific Community (SPC) has developed the Neptune Seafarers’ database and given a copy to all countries of the region. Tuvalu currently maintains hard copy records that are inaccurate and not able to be used to identify those individuals who have yet to upgrade their qualification prior to the deadline, as requested by RMP in Suva.
11. Maintaining the current White List status is essential for the continued employment of Tuvalu seafarers overseas. Success in doing so is dependent on both TMTI and, in particular, the Marine Department being able to demonstrate that policies and procedures are being followed as designed to ensure the standards required by STCW 95. The RMP section of SPC 4 offer the opinion that in most instances the risk to maintaining the White List status of the ten Pacific nations currently so designated lies mostly with their maritime administrations, rather than their maritime training institutions. Tuvalu is no exception to this, and provision must be made to support the maritime administration role, after the shipping aspects currently held under the Marine Department are corporatized, in order to manage the overall risk to continued employment of seafarers.
12. The RMP section of SPC works in two distinct areas among the 14 Pacific island member countries in order to build human resource capacity. Firstly in the provision of support legal advice and a working framework concerning maritime law; maritime administration law; implementation of international conventions; registration of vessels; safety regulations; marine pollution and the carriage of dangerous goods; and the administration of ports. Second, to provide advice and assistance to governments and maritime training institutions in the areas of maritime curriculum development; teaching learning and assessment support; human resource planning; and human resource development.
13. Within recent times SPC has supported Tuvalu and TMTI via RMP in the implementation of various measures aimed to meet the requirements of STCW 95. Such measures have included provision of the complete teaching learning and assessment packages used for all programs at TMTI, and the training of TMTI tutors in Australia to the minimum standard required by IMO. RMP has also provided legislative assistance and legal advice to the Marine Department regarding the corporatization of shipping services, and formal training in the audit process required by STCW 95 for TMTI and Marine Department personnel. RMP also promotes and funds a scheme of tutor exchange between regional maritime training institutions as an exercise in building human resource capacity throughout the region
14. It must be made clear that at the present time that the Marine Department, TMTI, and the Nivaga II would not withstand the scrutiny of the external audit from an agent appointed by IMO. All three areas of operations on which maintaining White List status depend would fail to reach the standard specified, though it should also be pointed out that the defects noted at TMTI are more easily remedied. A broad outline of areas of non-compliance is shown in Table 1. Detail on non-compliance at TMTI is presented later in this document.
15. Gaining the initial place on the White List may well prove to be the easier part of the process for many of the 72 nations currently holding that status. RMP in Suva offer the opinion that of the ten Pacific Island nations currently on the White List, five would be at risk of losing their status in the event of external audit by an IMO approved agent – among them Tuvalu. The common issue appears to be development of the required systems to assure the certification procedures – databases, establishment of audit procedures and audit history, and general documentation of process. Informal comment indicates that a commonality among states at risk is lack of separation of maritime administration function from that of a larger and more diverse government department. In those Pacific Island countries where a separate entity is able to focus clearly on the roles and functions required by STCW 95 (such as Tonga), authorities appear better equipped to meet those obligations imposed.
16. Corporatization of the shipping functions currently under the umbrella of the Marine Department has been elsewhere proposed as an integral part of the planned upgrade of TMTI. It is essential that the role of the Marine Department in regard to overall responsibility for ensuring compliance with STCW 95 is recognized as part of this process. Corporatization is supported on the premise that a Marine Department freed from the day-to-day responsibility for a shipping service would be better placed to fulfill the policy and compliance obligations placed 5 on it by international treaty. It is strongly recommended that full consideration be given to supporting the maritime administration of Tuvalu in meeting international obligations crucial to the continued employment of seafarers and economic benefit to the country. The following is recommended for immediate implementation to begin the moves toward compliance:
• recognition of the risk to continued employment of Tuvalu seafarers posed by continued non-performance in statutory functions by the existing Marine Department;
• that the Marine Department be divested of the distraction of maintaining a shipping service in order to better deliver the maritime administration roles and responsibilities required by STCW 95;
• that such a future maritime administration is allocated the funding, personnel, and equipment necessary to ensure success in meeting international obligations;
• that means of assistance be sought to enable the development of such an authority together with whatever level of continued support is deemed necessary;
• that the Neptune database is brought in to use as soon as possible; and,
• that internal audit of TMTI by the Marine Department is carried out as soon as possible, along with subsequent audit of the Marine Department by TMTI.
Table 1: Compliance Issues With Regard to STCW 95. Issue Responsibility and Possible Redress Fire fighting practical training not delivered TMTI: as required and STCW certification issued. Simulator refurbishment. STCW 95 requirement: demonstration of Provision of equipment (BA apparatus, etc.). practical competency Installation of RSW pump and delivery system Teaching plan updated. Teaching aids replenished (videos). Assessment practices evaluated and refined. Survival training not delivered and STCW TMTI: certification issued. Immediate resumption of practical training STCW 95 requirement: demonstration of Jetty refurbishment and positioning of lifeboat. practical competency Provision of liferaft and related equipment. Teaching plan updated. Teaching aids replenished (videos). Assessment practice evaluated and refined. Medical training identified as not current TMTI: best practice. Teaching plan updated. STCW requirement: offer programs in line Teaching aids replenished (videos and with current industry requirements and equipment). practice Assessment practice evaluated and refined. English language proficiency. TMTI: STCW requirements for Standard Maritime Appointment of specialist volunteer ESOL English? Practical requirement of teacher. communication aboard German vessels. Revisit English learning notes for programs and 6
develop for better comprehension by trainees. Understanding of assessment of TMTI: competency is variable and inconsistent. Resident workshop for tutorial staff on best STCW requirement: appropriate guidance practice and one-to-one assistance and in assessment methods and practice. modeling on assessment of practical competencies. Development of more relevant assessment tools for the theoretical components of learning. Student evaluation of programs and TMTI: delivery at TMTI: Ensure conduct of formal student evaluations STCW requirement: designated in Marine for delivery of all programs and maintain Department quality manuals but not records. apparently carried out. Protective clothing and equipment for TMTI: trainees engaged in workshop practice. Refurbishment program – ensure equipment STCW requirement: designated in TMTI supplied and used when appropriate. and Marine Department quality manuals. Audit of TMTI programs, delivery, quality Marine Department:: systems. Conduct audit and document process and STCW requirement: ensure maintenance outcomes. of standards within national training institutions. Nivaga II Marine Department Qualifications of crew: Flag State Control STCW requirement: Completion of upgrade training, manning requirements, Flag State Control, Port State Control. Nivaga II Marine Department Lapsed certification for passengers and Flag State Control potential lapse from Lloyds classification. STCW requirement: Flag State Control, Port State Control. Issue Responsibility and Possible Redress Nivaga II Marine Department Amount and quality of safety equipment. Flag State Control STCW requirement: Flag State Control, Port State Control. Nivaga II Marine Department Uncertain preparations for introduction of Flag State Control ISM. STCW requirement: Flag State Control, Port State Control. Documentation and audit of Port State Marine Department Control Inspection process. Port State Control Nivaga II Marine Department Provision of protective clothing and safety Flag State Control equipment appropriate for crew and Provision of equipment for trainees via planned trainees engaged in hazardous duties. upgrade and refurbishment of TMTI. STCW requirement: Flag State Control, Port State Control. 7
C. Employment Outlook for Tuvalu Seafarers
17. In the course of this evaluation of the maritime labor market with regard to the employment of Tuvalu seafarers, data on global employment trends was gathered from the Baltic and International Maritime Council / International Shipping Federation (BIMCO/ISF) study 2000 Manpower Update. The Regional Maritime Program of SPC was consulted, and interviews conducted with all of the recruiting agencies based in Tuvalu connected with the employment of nationals as seafarers, given the reliance for employment on a relatively small number of German shipping companies.
18. As of 30 September 2001, 1036 seafarers retained “active” membership with the Tuvalu Overseas Seamen’s Union (TOSU). On that date, 470 individuals were at sea according to the employment records of the recruiting agencies based in Tuvalu (employment data were obtained from all three recruiting agencies in Funafuti). These agencies estimate that the seafarers spend approximately 60% of their working life actually on the vessels, indicating that the current employment pool on that date should be estimated at 783 to allow for those resting between contracts and in transit to join vessels. This leaves a total of 253 absent from theoretical employment status, a figure that approximately corresponds with the total of those seafarers who have been subject to suspension from employment for alcohol or disciplinary reasons. Seafarer employment varies from year to year, reflected in the remittances to Tuvalu (ranging from about $A1.7 million in 1999 to $A4.7 million in 2000).
19. The global market for employment at sea presently favors the employment of deck and engineering officers as opposed to those seafarers with basic qualifications as deck or engine room ratings1 currently graduating from TMTI, and the employment outlook for the years through to 2010 presents no predicted change in outlook within an increasingly competitive market (see Appendix 3). The typical classifications of Tuvaluan seafarers include: able seaman, ordinary seaman, motorman (the latter three comprising the majority), pumpman, bosun, deck fitter, engine fitter, wiper, cook, steward, and messman. All local agents interviewed saw the employment market as stable at best, and at risk of decline to a greater or lesser extent in light of both the global employment data available, and with regard to the current global political situation and it’s uncertain impact on trade in general, and shipping in particular.
20. RMP personnel in Suva estimate the average total life of employment at sea varies between 7 and 12 years after initial qualification, with the higher figure applying to those levels of qualification held by Tuvalu seafarers. If this can be applied to the situation in Tuvalu (and it may be that the average employment period is longer), then an annual graduation of 65 trainees would supply replacements to the pool at current levels of employment. If the lower figure of 7 years career total were used, then a graduate pool of 90 would be necessary to replenish those in active employment. The demographics currently available for Tuvalu also support the view that major increase in numbers available for recruitment from population growth is not likely to eventuate, and therefore the infrastructure refurbishment should best be viewed in the light of retention of current numbers as a best case scenario.
21. It is suggested that strategic planning for TMTI should also encompass a focus on retention of current employment numbers in an increasingly competitive and potentially declining international market. Given that there are predictions of decline in the market currently
1 Rating is essentially a naval term referring to non-commissioned sailors; in general usage it refers to the crew of a vessel, other than officers and NCOs. 8 supplied and the global market overall, then maintaining realistic employment prospects for the current annual output of 60 trainees is possibly the priority aim. The capacity to move to an expansionary mode if opportunity presents might best be viewed as a secondary benefit of the infrastructure investment under consideration.
22. As mentioned previously, the historical employment link for Tuvalu seafarers is with shipping companies whose ownership is based in Germany, and this link has been consistent from the inception of the Tuvalu Maritime School in 1979. The strength, stamina and natural ability of seafarers from Tuvalu have greatly assisted their employment opportunities in the past. In the competitive market that prevails now, less value is placed on these characteristics, and factors such as the ability to conclude amicable collective employment agreements with TOSU are viewed favorably. Those polled all agree that it would be wise to spread the employment of seafarers outside the existing group of German employers, and all admit the practical difficulties of achieving this in a very competitive global market.
23. All individuals and organisations interviewed identified two main factors as presenting risk to the continuation of current employment figures, and as barriers to any possibility of employment growth. Firstly, a growing propensity for incidents of alcohol abuse and consequent violence leading to the employment termination of increasing numbers of seafarers from Tuvalu. Secondly, a marked drop in the standard of oral and written English is noted anecdotally in TMTI graduates by employers, agents and TMTI staff. Problems with English and alcohol will pose a significant barrier to widening the pool of potential employers, in particular the operators of passenger cruise vessels identified by several of those interviewed as having future employment potential.
24. Some of those canvassed mention Kiribati as the immediate main source of competition for seafarer employment, but while the standard of English is perhaps not such an issue with Kiribati seafarers, problems with alcohol and the resulting violence aboard ships reportedly are. Likely competition in the medium to long term may not be on the basis of direct employment cost, geographic isolation, or even gradations in the relative skill level and abilities of graduates. Rather, it may be from nationals of countries such as Myanmar, Bangladesh, or Indonesia if English of sufficient standard can be delivered by their education and training systems, given the likelihood that alcohol and its inevitable consequences are not perceived to be such a behavioral risk with the nationals of those countries by ship owners.
25. One of the German employers has already taken the step of declaring their vessels free of alcohol in an effort to address the problem, and in the short term the perception of behavioral problems may well put the employment of Tuvalu seafarers on a continued downward trend in an increasingly competitive global market. In the medium term, the possibility exists that one or more of the German shipping companies may decide to switch to the employment of other nationals as a matter of policy in order to avoid problems that present operational cost or perceived risk to the company. The possibility exists of large-scale termination of seafarer’s employment and their subsequent repatriation to Tuvalu as their contracts ceased to be effective.
26. All interviewed on the matter noted a positive change in recent times with regard to the attitudes and abilities of TMTI graduates, but both of the above issues should be of major concern as the solution of the risk presented cannot practically be left to TMTI to address alone. Both issues present a potent risk to future employment of Tuvalu seafarers in the medium to long term, and both should not be left to TMTI to address in isolation. While practical measures may be identified to assist TMTI in addressing the problems in the short term, the necessity of a 9 broader-based approach needs to be accepted and led by the wider community to find medium and long-term solutions. At present there is no specialist English language teacher on staff at TMTI and the role in the organisational table is provided by deck or engineering tutors on an ad hoc basis, with much effort and variable results.
27. The issue is of sufficient importance that it is recommended a specialist volunteer teacher be sought to pursue a remedial approach with trainees once the issue of housing on Amutuku is resolved. Given that all the student learning material is in English, and that much of it is still in the form written by the Australian Maritime College on behalf of the RMP, lack of facility with English may well be a major barrier to successful student learning, let alone employment.
28. The suggested approach for TMTI is to manage the risks to current employment levels with a dual approach. Firstly by ensuring compliance with STCW 95 standards in the current training provided (particularly safety training), and continuing to make every effort to address the social issues of alcohol and behavior through their training programs with assistance from the wider government and input as pertinent by means of the draft TA. Secondly, short and medium-term employment opportunities have been identified by the agencies and regional bodies in the fields of engineering, technical specialist and catering.
29. There is a perception among the current employers that engineering and catering skills of graduating trainees are not as relevant as would be desirable, and ship owners have been looking to other nationals in some cases. Those jobs are available to Tuvalu seafarers in the normal course of events, and the opportunities need to be regained through the proposed investment in infrastructure and the enhancement of curriculum and training activities. The following points are recommended to assure and enhance employment opportunities for graduates of TMTI:
• ensure compliance with STCW 95 in all aspects of training and certification;
• recruit a specialist voluntary teacher of English to TMTI as soon as feasible;
• work with the recruitment agencies and RMP to deliver focused and effective programs with regard to the issues and consequences of alcohol and drug abuse as a matter of priority;
• seek the assistance and involvement of the wider community to attack the issues of alcohol and English proficiency in order to find long-term solutions; and,
• make use of the proposed TA and infrastructure investment to strengthen first the facilities, equipment, programs and teaching skills necessary to improve employment opportunities for trainees. D. Organization and Structure of TMTI
30. The Tuvalu Maritime School was corporatized as a separate entity within the Ministry of Education in July 2000 by means of the Tuvalu Maritime Training Institute Act 2000 (Act 3 of 2000). This Act established a Board of Directors as the governing body of TMTI (see Figure 1) with responsibility for policy, control and strategic direction and direction to act in the national interest of Tuvalu. A separate Explanatory Memorandum appended to (but separate from) this Act directs that TMTI be managed on prudent commercial and business principles and provides 10 further directives on the composition and representative intent of the Board, as well as those outlined in Part III, Section 7 of the Act.
31. The Act specifically defines that 4 of 5 designated Board members be representatives of stakeholders as defined under subsection (2: Interpretation) but with cognisance of the skills, knowledge and experience they could offer to their position. Four of the 5 current members of the Board (including the Chair) were interviewed and offered the consistent view that TMTI would be better served if the Board membership was constituted to best provide management and business advice and direction to the CEO of TMTI.
32. Comparable maritime training institutions in the Pacific are generally part of larger formal education and training organizations such as a TAFE (Australia), or Polytechnic or Institute of Technology (New Zealand and Fiji), usually in some form associated with the Ministry of Education of the relevant country. In those instances, the CEO is advised in matters of commerce, management and accountability by a Board of Governors (or Directors) offering relevant commercial and management experience, together with staff and stakeholder representation. In the process of defining the initial membership of the TMTI Board it was inevitable that there be some confusion between the stakeholder groups with a direct interest in the training outputs of TMTI, and the mix of skills necessary to promulgate the financial viability and survival of a newly corporatized TMTI. Both types of input are integral to the health and success of a revitalized TMTI, but consideration should be given to the most appropriate means for the organization to channel the input and advice in the most effective way. 11
Figure 1. Present Organizational Structure of TMTI
Minister of Education, Sports and Culture
Secretary of Education and Culture
TMTI Board of Directors: Chief Executive Officer 2 x Employer Representatives Tuvalu Overseas Seamen’s Union Public Service representative
Chief Executive Officer
Deck: English Engineering: Catering: Office: Chief Officer Teacher Chief Engineer Instructor Clerk Marine Officer (vacant) Second & Stores Marine Instructor Engineer Assistant Asst. Marine Third Engineer Instructors x 2 Medical (vacant) (vacant) Assistant Launch Driver
33. The amount and term of the loan intended to refresh the infrastructure of TMTI requires a commensurate investment of time and energy in supporting and enhancing the management structures and operations of the school and Board in order that the investment be prudently managed and repayment ensured. The amount of loan finance in itself will not guarantee success as envisaged, without investment in strengthening the management structure of TMTI and its Board. There was broad acknowledgement among those consulted that the composition of the TMTI Board should be revisited. Essentially there was confusion between previous roles as contributors to an informal advisory group and the governance role required after the corporatization of TMTI. 12
34. There was consistent acknowledgement that the proposed investment in infrastructure required that specialist business and management input is available to assist TMTI. Those Board members consulted broadly supported the need to revisit the establishing Act in terms of the skills, numbers, and membership of the Board as this was seen in the best interests of long term viability. It may not be necessary to significantly change the recently established legislative framework in order sustain the successful management of the investment in infrastructure.
35. It is recommended that the functions of stakeholder and management advice be separated. Similar institutions have formal and vocal stakeholder groups to provide direction on the relevance, success, and quality of the training programs offered, and it is a requisite of IMO that an effective avenue is provided for such input. These forums may (and do) have considerable influence on the employment prospects of graduates at any level, but little influence on the financial viability an institution.
36. On this basis a formal stakeholder group should be established, and meet at quarterly intervals or as agreed appropriate. As many of the stakeholders have a financial or legislative interest in the training of seafarers, attendance should not need to be financially supported. Membership of such an advisory group should be drawn from (but not limited to) TOSU; the three recruitment agencies; the management and/or master of the Nivaga II; staff of TMTI; and leaders of the island communities. All meetings should be attended by as full a range of TMTI staff as possible, and chaired by a person not associated with TMTI or any government agency. Minutes and administrative facilities should be provided by TMTI. Given the potential conflict of interest between the role of the legally responsible regulatory body for the quality of national maritime training, and present role as Director of TMTI, it may be best that the Marine Department is confined to a capacity as part of the proposed Advisory Group.
37. It is recommended that the membership of the Board of TMTI be revisited, both in light of the membership of the proposed Advisory Group, and the skills needed to sustain and repay the proposed infrastructure investment in the long term. The recommendation is made that membership of the Board be maintained at 5 as originally specified in the Act, but the representation be specified as follows:
(i) A member of the Public Service (preferably Ministry of Education)
(ii) A representative of the duly constituted Advisory Group for TMTI; and, (iii) Three members with business and management experience be appointed as “those whose skills and knowledge would be of benefit to the Institute2”, one of whom should provide the Chair. Every effort should be made to recruit from the private sector for this purpose.
2 TMTI Act 2000 13
Figure 2. Proposed Organizational Structure of TMTI.
Minister of Education, Sports and Culture
Secretary of Education and Culture
TMTI Board of Directors:
Advisory Group for Chief Executive Officer
programs: Advisory Group representative
Funafuti Community Leader 3 x Business / management
All Employer Public Service representative
Representatives
Tuvalu Overseas Seamen’s
Union
Chief Executive Officer
Deck: English Engineering: Catering: Office: Chief Officer Teacher Chief Engineer Instructor Clerk Marine Officer Second & Accountant Marine Instructor Engineer Assistant Medical Asst. Marine Electrical Assistant Instructors x 2 Technician (vacant) Launch Driver (vacant)
38. With a new Board structure in place (Figure 2), it is advisable that the final move towards financial independence for TMTI is taken. An annual budget should be negotiated between the 14 new Board and the government, and the CEO report progress against this budget at every Board meeting. Financial accountability against negotiated annual budget should be the responsibility of the Board and CEO, and the present difficulties experienced by TMTI with finances could be avoided by moving towards a system of annual operational grant to the Board. The government would maintain oversight through the year via Board representation and the presentation of accounts, without the burden of daily administrative responsibility.
39. The move to self-sufficiency of management and administration for TMTI should be mirrored by similar independence in terms of infrastructure in light of proposed investments. The physical isolation of Amatuku leads logically to the prospect of management of central services such as water and electricity being formally devolved to TMTI. Electrical supply was lost on 50% of the days team members were present at TMTI and security of supply must be remedied before an investment of the magnitude proposed is seriously contemplated. Only two of the three generators installed under a French bi-lateral aid program in November 2000 are currently in working order, with the third apparently already cannibalized for spare parts.
40. Responsibility for maintenance currently lies with Tuvalu Electricity Corporation with subsequent problems in rectifying supply problems with no personnel based on Amatuku. Assuming that the installation can be brought back to standard while still under warranty, devolution of responsibility for the installation to TMTI should be investigated. Currently the staff position of 2nd engineer is vacant at TMTI, and the appointment of a marine electrical fitter to the role could then be actioned to both assist maintenance and give technical expertise in one of the fields of employment opportunity identified. This appointment is the only staffing addition recommended in the short term, and the Board could investigate possibilities of proceeding and maintaining total staff numbers as they are at present. TMTI has a relatively low ratio of students to staff when compared with similar institutions, and salaries as a percentage of expenditure are towards the top end of the usual range of 28% - 40% of operational budget. In summary, it is recommended the following proposals be evaluated:
• that stakeholder and management functions within the current Board be separated;
• that a separate advisory body be formed as a forum for providing advice and feedback on training programs and quality issues, with the intention of working with TMTI to ensure the training is as effective as possible in terms of relevance and employment outcomes;
• that the structure and purpose of the Board be re-examined as outlined and directors with experience in business and management be appointed;
• that TMTI move to a financial system enabling full operational independence and accountability as soon as possible and continue to report to the Ministry of Education as the responsible government agency
• that the provision electricity and other services to TMTI facilities be examined in light of the proposed investment in infrastructure as soon as possible; and,
• that the attached TA be used to make available advice and input to the Board (governance) and CEO (operational management), in order to strengthen the performance of TMTI during the next 4 years.
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E. Potential for Officer Training Programs at TMTI
41. The possibility of TMTI extending the refurbishment of infrastructure to a level where the training of engineering and deck officers could be undertaken has been examined as part of the scan of the labor market and maritime training. Currently all Tuvalu officers (whether deck or engineering) receive their off-job training outside of Tuvalu. Such training has been supported by scholarship grants from the Tuvalu government, overseas aid funding, and/or private means. In order to provide the training for officers, sophisticated simulation in the areas of navigation, engineering, and Global Marine Distress Satellite and Safety Systems (GMDSS) would need to be installed, and the infrastructure investment supported by a commensurate investment of time, money and resources in the Marine Department that would need to be a quantum step up from that already proposed.
42. The cost of a basic navigation simulator to IMO requirements is approximately $450,000 and a GMDSS simulator of modest capabilities would be a further $220,000. Engine room simulation to a further minimum cost of $700,000 would also be required and a commensurate investment in human and training resources would be required. These investments at best would enable delivery of programs for deck and engineering officers to Class 3 level. The level of technical support required to sustain and maintain the necessary installations and computer- based simulations would not be readily available within Tuvalu, and it may be necessary to contract expatriate skills initially to fill such a role. Similarly, the use of such equipment as a training and assessment tool is an area that would require a great deal of initial assistance, and on-going support.
43. Within the wider region of the South Pacific there are maritime training institutions delivering training for engineering and deck officers of Class 3 or above situated at the Australian Maritime College (AMC) in Tasmania; the National Maritime College (NMC) in Papua New Guinea; the New Zealand Maritime School (NZMS) in Auckland; and the Fiji School of Maritime Studies (FMS) in Suva. The EU is currently making funding available for a facility with similar potential based at the Solomon Island College of Higher Education (SICHE) in Honiara. All these institutions (with the exception of SICHE) can and do provide training for Tuvalu nationals wishing to pursue employment as deck or engineering officers, most usually on the basis of a scholarship funding agency supporting attendance at a particular institution.
44. At a policy level, the RMP office of SPC supports the establishment of a regional training facility for Pacific Island officers at FMS in Suva, which they deem the institution best situated to meet the forecast training needs of the Pacific community in those areas. All the indicators would presently discourage direction of the infrastructure upgrade away from investment in the training of officers, regardless of a very positive outlook for employment opportunities, on the basis of establishment and continuing cost, the geographic isolation of Tuvalu as a factor in the recruitment of students from outside the country, and the prospect of nil financial return on investment.
45. While examination of employment data indicates the potential employment opportunities for officers is positive, the scale of investment in infrastructure, organization and skills that is required could not justify any likely rate of return. The immediate geographic region is perhaps over-supplied with institutions with the capacity to deliver the type of training. It is recommended that infrastructure investment and resources are instead focused on ensuring and improving the relevance, quality and compliance of existing programs delivered at TMTI.
16
F. Present Training Programs at TMTI
46. The programs currently offered by TMTI are centered about the pre-sea training offered to 3 intakes of 20 trainees annually. At any given time during the year 40 trainees will be resident on Amatuku and a further 20 trainees will be aboard the Nivaga II. On completion of the 12 months trainees graduate with OS II/4 (Deck) or OS III/4 (Engine)3 certificates, depending on their actual duties aboard the Nivaga II and their completed studies when they returned to TMTI. Six months of time at sea undertaking either engine or deck duties is required for the issue of either certificate, and 3 months of this is waived in recognition of the trainees participation in a “structured training program”, while the remainder is gained during their 4 months aboard the Nivaga II. During their time at TMTI these trainees will undergo specific training required by STCW 95 in order to obtain certification in Medical First Aid; Personal Survival Techniques; Fire Prevention and Fire Fighting; and Personal Safety and Social Responsibility. Programs currently offered at TMTI are noted in Table 2.
Table 2. Summary of Training Offered at TMTI. Pre-sea Training: Total duration: 12 months in 3 modules of equal duration. Qualification: Class II Rating (Deck) or Class II Rating (Engine)
Module 1: Induction and Safety Training (the following are distinct STCW programs) Personal Survival Techniques Elementary First Aid for Seafarers Personal Safety and Social Responsibilities Prevention and Control of Shipboard Fires Module 2: Practical training and assessment aboard the Nivaga II in specialist area Module 3: Advanced specialist training Tanker familiarization (STCW short program) Induction for joining a first ship Shorter Training Programs: Class I Rating (Deck): Able Seaman Class I Rating (Engine): Motorman Qualified Steward STCW 95 Short Training Programs: Personal Survival Techniques Elementary First Aid for Seafarers Personal Safety and Social Responsibilities Prevention and Control of Shipboard Fires Proficiency in Survival Craft Chemical Tanker Familiarization LPG Tanker Familiarization Oil Tanker Familiarization Source: TMTI Quality Control Manual
47. When trainees have gained employment and accrued a total of 24 months sea time, TMTI offers a 3-week program leading to qualification as Class I AB seaman or motorman. Upgrades of all safety certification have been offered in the lead-in to the implementation date of February 2002 for STCW 95, which has been a major achievement for TMTI that allows Tuvalu
3 Ordinary Seaman Class 2 (Deck) and Ordinary Seaman Class 2 (Engine) 17 seafarers to continue in their employment after that date. Refresher training on safety and other issues to meet the ongoing requirements of STCW 95 will continue to be offered in the future, along with specialist courses at times covering tanker familiarization; chemical tankers; and passenger safety and crowd control.
48. The student learning and assessment resources in use for the major programs were developed at AMC and have been provided to TMTI through the offices of the RMP of SPC. Exactly the same learning resources have been provided to all maritime training institutions throughout the region in an effort to ensure that all the regional institutions would be prepared for the introduction of STCW 95. Thus compliance with initial IMO requirements in this area is not currently an issue. The next stage of development is to adapt the uniform resource provided by SPC for effective use with trainees at TMTI, and it is very encouraging to see that the resource for Class I AB Seaman has already been greatly modified for local use.
49. The process of moving from a position of base compliance toward delivery that is as relevant to current practice and the workplace as is possible is one of the prime goals of STCW 95 with regard to training. The unmodified student learning notes provided by AMC are written in a relatively formal and technical manner that is said to present a barrier to their effective use at TMTI. The proposed TA will need to support a planned approach to the adaptation of the entire package to best suit the training and trainees at TMTI on a program-by-program basis. Replenishment and modernization of the stock of video teaching and learning resources will also support a future approach to delivery with less reliance on written materials.
50. The assessment models and materials provided as part of the AMC package have also been identified by TMTI staff as needing to be adapted or revised for practical use with trainees and seafarers. Assistance, guidance and support in achieving this goal must also be included as part of the TA. Independent confirmation of TMTI staff qualifications to teach and assess being in compliance with IMO requirements has been provided by SPC. However, interviews with staff revealed a prevalent belief that further targeted assistance and guidance in the area of assessment, and assessment of competency in particular, would be of great practical benefit to their professional development as teachers and the effectiveness of the training delivered.
51. The present lack of adequate equipment infrastructure and workshop facilities at TMTI has not only led to the training on offer not complying with STCW 95 requirements for practical training and competency, but also reduces the relevance of the pre-sea training to the workplace. Effective use of the loan facility will deal with many of the issues, but it has been identified that a refurbished facility needs to be supported by staff fully conversant with use of the equipment with regard to current industry practice. Training on-site for engineering staff in arc and gas welding has been identified as a necessity, along with the need to appoint a suitably qualified electrical technician to the engineering tutor position that is presently vacant. Increased proficiency in the welding of aluminum has also been identified as a priority skill area for staff and trainees
52. Other institutions in the Pacific engaged in maritime training are operating on a much larger scale across a range of programs, or are part of a larger enterprise engaged in training and education for an array of different disciplines. In many cases such organizations have the benefit of in-house training for tutors to lead their professional development, and/or specialist resource centers assisting with the production of teaching and learning material. The isolation of TMTI means that the development of skills and materials for teaching must be approached and achieved in a different fashion. It is strongly recommended that TMTI continue to take full advantage of the generic teaching and learning material and advice available through the RMP 18 of SPC, and that TMTI engages fully in the schemes promoted through RMP for the exchange of tutors between maritime institutions and the development of long term institutional partnerships.
53. The recommended approach to the issues of developing professional capacity in teaching and assessment is to maintain the minimum formal qualifications needed to meet IMO requirements and focus time and expenditure on what will have the greatest practical effect on training outcomes. Such an approach at TMTI would see any training outside of Tuvalu for any staff being kept to an absolute minimum and subject to rigorous cost/benefit analysis. A candidate having sufficient formal qualifications for teaching to meet STCW 95 requirements must be a major a factor when looking to recruit staff at TMTI in future. Short courses focusing on the practicalities of competency-based assessment and on-job training delivered in-house at TMTI are more what is required, and such delivery should be backed by one-to-one work with individual staff in live classroom or learning situations with students, in order to ensure effective implementation.
54. A similar approach should be taken to the planned development of program content and resources, where any assistance promoted through the TA should be implemented on-site when possible, and in conjunction with the small group of staff responsible in order to encourage ownership. In summary then, the following approach is recommended:
• that the refurbishment of facilities and provision of the equipment necessary for the delivery of fire and survival training to required standards be a priority of the loan process;
• that the proposed Advisory Group structure is used by TMTI to identify relevant content for the pre-sea program;
• that the learning materials provided through RMP for all present programs are adapted for local use, beginning with the pre-sea program and progressing through the Class I programs to finish with the short safety courses offered;
• that the present stock of video resources be replenished, or replaced with more recent material where available;
• that formal professional qualifications for staff be limited to that training for tutors through RMP and provision made for providing distance learning for professional development in the TA, once communications upgrades at TMTI are completed;
• that TMTI fully explores the availability of tutor exchange between maritime training institutions and the development of long term institutional partnerships through the offices of RMP;
• that the provision of specialist welding and engineering training on site at TMTI (as determined in association with the proposed Advisory Group) be included in the TA;
• that assistance with developing staff capacity for the delivery of specialist tanker familiarization programs be included in the TA; 19
• that the specialist assistance in workplace training and competency-based assessment be provided in the TA, and TMTI staff capacity in these areas is developed over the term of the TA as a matter of priority;
• that the specialist assistance provided to lead the development of program materials and resources include a formal process of work planning and review involving the proposed Advisory Group; and,
• that the assistance specified in items (ix) and (x) above continue through after any formal seminar or workshop to include relevant focus work with individual (or small groups of) tutors to improve learning and program outcomes. G. Compliance of Present Training Programs with STCW 95
55. The requirements of STCW 95 in regard to training place a greater emphasis on practical aspects than previously, along with assessment practice based on the demonstration of competencies. TMTI is currently in breach of the standards required of the training offered, mainly with regard to practical aspects of safety training and some issues with inconsistent assessment practice (Table1). Some of the underlying causes of this non-compliance can, and will, be addressed through the refurbishment of infrastructure and the introduction of planned maintenance and replacement programs regarding facilities, classroom and workshop equipment. There is also an obligation to foster a culture of safe work practices among the trainees in preparation for the workplace and meet occupational safety and health requirements in regard to training conditions.
56. Other occurrences are of the type that would normally have been notified as a consequence of the annual audit process required by STCW 95, and arise from failing to follow procedures or processes detailed in the quality manuals of TMTI and the Marine Department. These issues will be addressed through the TOR of the appended TA, and a sustained approach to organisational and management support of TMTI in the medium term. This aspect of the TA should address, examine and support the program portfolio of TMTI on an annual basis, along with the development of curricula and teaching materials. It must be made clear that at the present time that the Marine Department, TMTI, and the Nivaga II would not withstand the scrutiny of the external audit from an agent appointed by IMO. All three areas on which maintaining White List status depend would fail to reach the standard specified, though it should also be pointed out that the defects noted at TMTI are more easily remedied.
57. At the present time much of the safety training offered at TMTI is not compliant with STCW 95, in particular survival and fire fighting training. Live fire practice is not always included when required, and the actual use of extinguishers, hoses and breathing apparatus does not appear to be consistently carried out. In terms of survival training, the lifeboat is presently not available for use and it was not possible to determine whether practical use of the liferaft in training was carried out. Both issues are mandatory in terms of STCW 95.
58. Access to, and use of, a designated rescue craft is necessary in the context of delivery of the STCW 95 short course Proficiency in Survival Craft. The only vessel available that meets the requirement is on the Nivaga II and thus infrequently available. The assumption could therefore be made that the program is delivered without use of a designated and equipped rescue craft. This certificate is a prerequisite for the Class I Rating qualifications. These issues surrounding the completion of designated practical exercises within STCW 95 programs must be resolved and rectified. Issue of certificates in the event that practical requirements have not 20 been completed is a flagrant breach of IMO requirements and must cease if this is indeed the case as it also calls into question the role of the Marine Department if the continuation of this practice comes to the attention of IMO . It is essential that TMTI resumes delivery of practical training activities in the safety programs as soon as possible, at the highest capacity possible, and produces a formal plan and timeline for full compliance in order to ensure this happens. The following recommendations are made to ensure future compliance with STCW 95 over and above any made previously:
• that the proposed TA support the development of planned approach to the maintenance of the refurbished plant and equipment incorporating the need for replacements in due course;
• that the audit process of TMTI by the marine Department proceed as soon as possible, and any exceptions to stated process or requirements are both notified and rectified;
• that the TA provide support and assistance in establishing the processes and culture necessary for STCW 95 compliance within TMTI;
• that student evaluation of teaching practices and program content are carried out as required by the Marine Department; and,
• that the breaches of IMO requirements for practical content in the safety programs currently offered be addressed immediately to the greatest extent possible within existing resources. H. Training Opportunities and the Nivaga II
59. The availability of a training vessel is crucial to the continuation of pre-sea training at TMTI and the consequent employment at sea and remittance of wages home to Tuvalu. Without access to work experience aboard a vessel the likelihood of employment for graduating trainees with German shipping companies would reduce to virtually zero. It is essential to the continued employment of Tuvalu seafarers that access to a training vessel is maintained. With the Nivaga II included in the suggested corporatization of shipping in Tuvalu, and the introduction of another vessel into service in Tuvalu in 2002, there are possibilities and opportunities to explore with regard to continuing and improving training at sea.
60. If the training opportunities available are to be maximised in the most cost effective manner, then the availability of the Nivaga II should be made use of to the full potential. Currently the purpose, quality and direction of training aboard the vessel is subject to a debate that is on occasion acrimonious, and which is of benefit to neither TMTI, the Marine Department, the master and crew of the vessel, nor the trainees. Access to the vessel and the type of training experience that it offers should be seen as one of the most positive aspects of the training on offer at TMTI, and is must be viewed as an opportunity to make training as effective as possible rather than the problem it has appeared to be on occasion in the past.
61. Currently there are issues surrounding the use of trainees as stevedore labor aboard the vessel, and the desirability or otherwise of that situation. Practically it is very difficult to envisage operation of the vessel without continued input from the trainees in that role. Stevedoring work can readily be validated as part of the training offered by the vessel, but should be supported by the provision of the requisite safety equipment by TMTI to support the trainees and instructor 21 aboard. There are also difficulties in trainees obtaining sufficient steering duties as a consequence of the nature of the schedule and work of the vessel. It has also been identified that fire and lifeboat drills are either infrequent or incomplete. There have also been complaints that the vessel’s officers are required to sign off validations of trainee competency, and often complete this task in a cursory manner. It is recommended that as much of this administrative burden as possible be transferred to the supervising TMTI instructors.
62. A training instructor from TMTI accompanies trainees on every voyage, and provides and supervises training activities and discussion as circumstances and the planned work of the trainees and vessel permit. Officers of the vessel were also observed to contribute and lead informal sessions. The fact that the training activities are nominally under the control of TMTI via the instructor, and that the work activities are of course at the direction of the master and other officers, gives rise to a situation which is ripe for confusion and misunderstanding. The TMTI trainees are an integral part of the operations of the vessel and the Nivaga II could not operate within its current cost structure without the contribution of their labor. It must also be seen that TMTI could not continue without access to a training vessel.
63. With a new trading vessel due to join early in 2002 it is envisaged that the Nivaga II will have more time available in port for training purposes. The lack of opportunity for mandatory steering time at the wheel and the opportunity for maintenance duties aboard have been identified as potential bottlenecks in the planned training regime, but are in the main a direct result of the realities of the vessel’s current schedule. The arrival of the new vessel in 2002 will allow the opportunity to schedule specific maintenance and formal training days at Funafuti and allow resolution of issues all parties have struggled with at times. The potentially dangerous nature of the stevedore work carried out by trainees must also be acknowledged and it is recommended it be ensured that the TMTI instructors aboard are suitably experienced, and able to supervise trainees in these duties as required.
64. As the corporatization of the inter-island shipping aspects of the Marine Department is currently being examined, it is suggested that at this juncture both the cost and benefits that accrue to the inclusion of TMTI trainees in the crew of Nivaga II are clearly identified. This is not to suggest that any eventual decision on who should bear the cost (if any) be transferred to or borne by either TMTI or an identified aspect of the existing Marine Department, rather to state that it may be in the best interest of the government of Tuvalu to identify any and all costs associated with training, and allocate those costs within the annual budget wherever is decided as a matter of policy. Preliminary work by the consultants indicates that there presently benefit accrues to the vessel, and this could be enhanced if more maintenance work was allocated to trainees.
65. It is recommended that part of the envisaged corporatization process for shipping should be clarification and formalisation of the role of the Nivaga II in the training of Tuvalu seafarers. The aim of improving the training outcomes and the administrative aspects of training aboard the Nivaga II is suggested as an essential target of the draft TA attached. Once agreement and acknowledgement is reached between all parties concerning the importance of training aboard the vessel, then making the most of the unique opportunities presented can be supported on an on-going basis. It is recommended that TMTI and the new shipping organization come together in a formal review process of training and any other issues arising aboard the vessel, coinciding with the end of each 4-week rotation aboard of the TMTI instructor. Both organizations should contribute two senior people to the process, and written summaries of discussion and outcomes should be kept. The stated aim of such a process would be to both improve training opportunities and outcomes and improve efficient operation of the vessel. 22
66. It will be necessary for TMTI to physically resource training aboard through the provision of some minor items of equipment, as well as the articles of safety equipment for trainees mentioned previously such as overalls; helmets; safety boots; and other items that might be expected to be provided on joining a vessel. Items such as compressed air chipping hammers could be used aboard during planned maintenance days in port, and all such equipment belonging to TMTI would remain the responsibility of the training instructors. It is believed that the lack of planned maintenance on the vessel has been identified as an issue of concern, and a mutually agreed way of addressing this issue would of benefit to both parties. The following recommendations for consideration are made:
• that the costs and benefits incurred by either party in the process of training and work experience aboard the Nivaga II are identified as clearly as possible for the consideration of all parties concerned;
• that TMTI provide the requisite safety equipment for trainees in the normal course of their work aboard the vessel, with such equipment to remain in the care of TMTI and to be sourced from the proposed loan;
• that dedicated maintenance and training days be arranged in Funafuti as soon as the final configuration of the shipping service in Tuvalu allows;
• that TMTI relieve ship’s officers of the administrative burden of recording trainee competencies by allowing the responsibilities to be shared by TMTI instructors;
• that TMTI and management of the vessel acknowledge the dangerous nature of the stevedore work undertaken at times by trainees and ensure that this is conducted under the supervision of a suitably experienced TMTI staff member or officer; and,
• that the importance of effective training aboard the vessel is supported by both parties through the creation of a regular review process as outlined. I. Possible Development of an Integrated Rating Program
67. Some employment opportunities have been identified by recruitment agencies and others in the areas of basic engineering; technical specialist (engine room and electrical fitters); and catering. There is a perception among current employers and the recruiting agencies that the engineering and catering skills of graduating trainees are not as relevant as would be desirable, and in some cases they have been looking to employ other nationals. Those jobs would normally be available to Tuvalu seafarers, and the opportunities can be regained through the proposed investments in infrastructure and the enhancement of program and training activities. This focus is intended to enable uptake on the employment opportunities existing within a predicted diminishing market overall.
68. The recruiting agencies believe that multi-skilled graduates (any combination of deck, catering, engine room) will likely have the best employment opportunities in future. This type of graduate is variously referred to as General Purpose, Dual Purpose, or Integrated Rating (IR). What is intended by the description is that they have basic deck and engine room qualifications on graduation, and/or the additional ability to work as in the hospitality field if required. The facility upgrade at TMTI will improve the capacity to deliver relevant training of this type, but this needs to be matched by support as outlined in the draft TA attached addressing institutional, staff and program development. 23
69. TMTI has endeavored to meet that need by attempting to gain basic deck and engine room qualifications for the current intermediate intake completing their sea time aboard the Nivaga II. However, the attempt to fulfil the dual sea time requirements within the 4 months available may be flawed in that requirements of the Tuvalu Shipping and Seamen’s Act (1987) indicate a minimum of 3 months sea time in each department, as opposed to the 2 months (at best) available. Assuming the need for a total of 6 months time aboard vessels, the length of an IR program would be an absolute minimum of 14 months (more likely 16 months) if development is based on simply adding the requirement of extra sea time to the pre-sea program presently offered. This would represent a decrease in graduate numbers of 18% per annum over time, if the current program structure and recruitment were unchanged.
70. If it is agreed to move toward multi-purpose training in order to meet employment demand and opportunity, the entire program at TMTI will need to be examined in terms of duration and direction at Amatuku and, most importantly, best use of the time and facilities aboard the Nivaga II and any other vessel that may be available in order to achieve the desired training outcomes. It should be noted that the mix of skills and enhanced qualification would not be reflected in higher wages for a trainee taken into employment, rather it should return an increase in the opportunities for employment. It must also be pointed out that the relevance of trainee engineering skills for the employment market has been identified as needing to be improved. The proven capacity to deliver technical training at the required level should be guaranteed before a move to an IR program is seriously contemplated.
71. Because availability of the necessary sea time for such a program is at the core of an assessment of the practicalities of delivery, the present uncertainty surrounding the configuration of vessels within the shipping services needs to be resolved before any full appraisal or decision is made on the matter. The options are to extend the length of the current program by simply incorporating the extra time at sea that is required, or to reduce the time at Amatuku in training to maintain program length at 12 months and thus maintain the current numbers of annual graduates. If vessel capacity allowed for up to 30 trainees to be at sea at any given time, and the proposed refurbishment and TA deliver a higher standard of engineering training as planned, then the delivery of an IR program at TMTI capable of producing a minimum of 60 trainees per annum could proceed. On that basis it is recommended that a detailed appraisal of the suitability of such a program and the means by which it may be delivered be carried out as part of the TA after the final vessel configuration of the shipping service is confirmed in 2002.
72. The recommended approach for TMTI in the interim is to manage the risk to current employment levels by ensuring compliance with STCW 95 standards in the training offered, (particularly safety training), and continue to make every effort to address the social issues of alcohol and behavior through their training programs with assistance from the wider community and government. This is intended to address the immediate risks to employment presently identified. Targeting of engineering and catering skills, equipment and facilities within the context of the infrastructure upgrade and the supporting TA appears the most effective means of enhancing the employment prospects of graduating trainees. It is recommended that:
• the refurbishment and equipment of the engineering and seamanship workshops to enable more effective training for employment be a priority for action within the loan proposal; and,
• that the practicalities of training multi-skilled ratings with the facilities and vessel available be the subject of detailed appraisal within context of the proposed TA. 24
J. Financial Performance of TMTI and Cost Recovery
73. It has proved difficult to express exact comparisons of activities between TMTI and maritime training institutions in other countries, but some broad figures may be given for comparison in an indicative sense (see Appendix 4). There are some basic generalities that may be drawn between maritime training institutions situated in different countries. Firstly, administration and management structures are complicated by the need for dual reporting to national and international agencies with regard to the quality and effectiveness of the training delivered. Secondly, maritime training is generally more expensive when compared with general education because of comparatively low tutor: student ratios and high class contact hours with those smaller groups of students, combined with the physical infrastructure required for compliance with international regulations.
74. Common tutor student ratios in maritime training would be 1:12 across a range of institutions, compared with a ratio of 1:20 or greater being viewed as both desirable and efficient in other forms of post-secondary training and education. The more training that can be delivered in a classroom, and the less that is delivered in a workshop or workplace, then the lower cost of staffing as a proportion of expenditure, and the greater the efficiency. Within the Australian and New Zealand technical training systems (the context where maritime training is generally conducted in those countries), as much as 40% of expenditure on staffing is possible. Within these countries, maritime training attracts higher levels of government funding for training activity to a greater or lesser extent in acknowledgement of the extra costs involved. These countries place some public benefit value on the training, and the level of subsidy or support also tends to reflect that, and they have also structured their funding of maritime training to acknowledge that there is an amount of private benefit that accrues to the individual seafarer as well. The present level of aid funding used to support some salaries at TMTI cannot be guaranteed to continue, and if this support was factored into the general salary band of the TMTI budget, the percentage of expenditure allocated to staff salaries would be unusually high.
75. Pay rates in the maritime industries reflect the level of qualification required by statute to hold the position in which an individual is employed providing a direct link between qualification and rate of pay. Induction training in the countries examined tended to attract the greatest level of government support, but on average in Australia and New Zealand, seafarers contribute approximately 50% of the cost toward their own training in recognition of the real benefits it will bring to them. If they are already employed at sea, in some instances their employer may well support some or all of this cost, in which case they would usually enter a legal agreement outlining a period of bonded employment on the terms stipulated by the employer. In most instances seafarers fund their 50% contribution and expenses while undergoing training through savings, government or private loan, or a combination of both, in the expectation that they will immediately benefit financially on successful completion of the training.
76. In the instance of Tuvalu there are known and measurable benefits to the community in regard to the training and subsequent employment of seafarers. In recent times TMTI has conducted the upgrade training required by the implementation of STCW 95 for all active seafarers free of any charge to the individual or employer, and in the absence of any specific funding from the government. This has enabled those seafarers to legally continue to work at sea after the implementation deadline of February 2002. STCW 95 requires that safety and other designated training be formally refreshed periodically in order for the individual to legally remain in employment as a seafarer, and part of the envisaged refurbishment of infrastructure is designed to enable delivery of that training to the required standard on an on-going basis. 25
77. The government of Tuvalu currently provides the annual budget of TMTI to finance the training with the assistance of aid funding and employer support when available, on the assumption that the benefits of training are uniform to each of the individuals involved. The reality is that those seafarers already in employment benefit most from the training involved because it enables them to remain available for paid employment, while pre-sea training has a greater element of investment for the longer term for those involved. Given the levels of financial commitment and scrutiny necessitated by the loan process, it would be pertinent to examine the entire basis for the funding of TMTI. The proposed investment in infrastructure will require increased levels of annual expenditure on maintenance and asset replacement in the future, with consequent demand for an increase in annual funding for TMTI.
78. Cost recovery for training on a fair and equitable basis should be visited as part of the process of examination of the loan proposal. If training activities by area at TMTI are expressed as percentages, then the so-called “upgrade training” would measure 15% or more of training activity over the last 18 months, and this level of activity is likely to continue at roughly the same level in the foreseeable future. This dimension of TMTI activity is neither transparently funded through budget or SDE allocation at present, nor by aid or employer allocation, yet is absolutely essential in maintaining the employment status of seafarers and maintaining the flow of remittances from those seafarers.
79. At the same time, the infrastructure investment required to validate safety training to STCW 95 standard appears to most directly benefit those currently in employment and their dependants. In reviewing activity over the previous 18 months it would appear that TMTI has been under-funded on activity at a level that now bears examination as part of the loan process. It is recommended that cost recovery measures be introduced in the interests of equity and the financial viability of TMTI.
26
APPENDIXES
Number Title Page
1 Current Global Supply/Demand Position for Seafarers 31
2 TMTI Training Activity Analysis 34
27
Appendix 1
CURRENT GLOBAL SUPPLY/DEMAND POSITION FOR SEAFARERS
1. The Baltic and International Maritime Council, in conjunction with the International Shipping Federation, conduct a comprehensive study of the global supply and demand of seafarers at interval of 5 years. An updated estimate of the global supply of seafarers was produced in 2000 by amalgamating the most recent national statistics provided by authorities in almost all of the principal labor supply countries. As a result of this exercise, the worldwide supply of seafarers in 2000 was estimated to be 404,000 officers and 823,000 ratings. The OECD countries (North America, Western Europe, Japan etc.) remain the most important source for officers, but the Far East has increased its share and is also the largest source for ratings.
Figure A1.1. Supply by Area of Domicile 20004.
2. Global demand estimates were produced using a computer model developed for similar studies in 1990 and 1995. This takes full account of detailed changes to the number, size and type of ships in the world fleet, as well as revised estimates of the manning levels and back-up ratios (seafarers on leave etc.) that currently apply to different national fleets. This "raw" estimate was then been calibrated using comprehensive data supplied by almost 200 companies, weighted to reflect a representative sample of the world fleet. This process included data concerning levels of recruitment, the nationality and age structure of seafarers employed, and estimates of the number of employees that have taken jobs ashore between 1995 and 2000.Following analysis of this data, the current estimate of the worldwide demand for seafarers is 420,000 officers and 599,000 ratings.
3. Meanwhile, the number of ships in the world fleet grew by only 1.0 per cent per annum between 1995-2000. This, together with the phasing-out of older ships which had required
4 Catering and hotel staff have been excluded from these and the following data. Source: BIMCO/ISF Manpower 2000 Update 28 higher manning levels, meant that additional demand for officers and ratings was not quite so great as anticipated in the 1995 Update. As a consequence, the overall supply/demand imbalance for seafarers is very similar in 2000 to the situation in 1995. The data in the following table shows that this translates into a modest theoretical shortfall of officers required to man the world fleet of 16,000 or 4% of the total workforce. For ratings there continues to be a significant overall surplus, although there are doubts expressed in the report about the extent to which large numbers of these ratings are actually qualified for international service.
Table A1.2. Supply and Demand in 2000.
Supply Demand Balance
Officers 404,000 420,000 -16,000
Ratings 823,000 599,000 +224,000
4. The report presents a number of scenarios that might characterize the global balance between supply and demand in the future, before selecting what it believes to be a realistic "benchmark" scenario based on an analysis of developments over the last 5-10 years and taking into account the views of senior shipping executives. This allows for a modest expected increase in the number of ships in the world fleet of around 1 per cent per annum (the observed historical growth rate over the past decade). It also assumes the maintenance of recruitment and wastage levels experienced during the past five years, based on data collected as part of this study.
Table A1.3. Supply and Demand Balances. 2000 2010 Numbers % Numbers %
Officers -16,000 -4% -46% -12%
Ratings +224,00 +27% +255,000 +30%
5. Even using these somewhat conservative assumptions, the clear message is that the current moderate shortage for officers is expected to worsen, while the oversupply of ratings is also expected to continue. However, the forecast is quite sensitive to a variety of factors, which are explored in some detail in the main report. During the past decade, the number of ships in the commercial trading fleet has increased by an average of some 1 % per annum. Although this might suggest that demand for seafarers should have increased by a similar amount, this has not proved to be the case. Overall levels of demand for both officers and ratings have remained largely static, and may even have declined marginally, principally as a result of lower manning scales on more modern vessels. However, the Update suggests that this situation is likely to reverse in the future. There is little scope for further manning reductions if account is taken of the impact of international regulations such as working time legislation, and because back-up requirements may well need to increase to accommodate additional training or 29 increased leave. Therefore, even a modest future increase in the number of ships in the world fleet will result in additional demand for seafarers that can only be accommodated if recruitment and training are increased (unless wastage is reduced) Unfortunately, this scenario as outlined applies mostly to the employment conditions and prospects of officers, which is the main focus of the report.
6. Within the global context the main focus of employment investigations has been concerned with a predicted shortfall in deck and engineering officers, with most sources in seeming agreement about a perceived oversupply of ratings. The employment data for ratings is scanty in comparison as a consequence. However there are more detailed employment outlooks for ratings available from some countries5.
Table A1.4. Projected Employment Growth - US Ratings.
1998 Actual 2008 Projected Change 1998-2008
Number %
22,749 23,914 1,165 5.1%
Note: Employment figures are for all categories of employment including coastal and inland waterways.
7. The new competence standards required by STCW 95 will not fully take effect until 2002, and in practice their full impact may not be apparent until the middle of the current decade. Publication by IMO of the White List of countries which are considered, in principle, to meet the standards has only recently been implemented. Fears that seafarers holding certificates issued by countries that failed to gain a place on the White List would become unemployable have not therefore been tested, and the consequences will not be known until after February 2002. There is evidence that many countries have upgraded training standards, and most of the senior shipping executives questioned in the survey expressed confidence that standards of competence would show an overall improvement. However, the measures in STCW 95 which might have the effect of reducing the number of qualified seafarers, such as the White List; additional flag state requirements; and stricter certificate revalidation procedures, will not take full effect for some time. The nations most likely to fail to gain, or retain White List status are not currently in direct competition with Tuvalu seafarers, thus any benefit is uncertain. The overall outlook is for the market for ratings to remain static at best. There is broad agreement that an oversupply of ratings presently exists, and is predicted to continue throughout the decade. The consensus appears to be that implementation of STCW and competition based on skills relevant to the new generation of shipping will be the deciding factors in employment opportunities for ratings.
5 US Department of Labor 2001. Occupational Outlook Handbook (On-line). Available: http://stats.bls.gov/emppub01.htm 30
Appendix 2
TMTI TRAINING ACTIVITY ANALYSIS Table A2.1. Comparative Activity Table.
Item NZ Public NZ Private Fiji Public TMTI
Organizational Governing Shareholders; Governing Governing Structure Council; Board of Council; Board; CEO Directors; CEO CEO General Manager
Budget 2001 $1,763,000 $620,000 $528,000 $623,000 Includes board
EFTS 2001 by national 185 88 150 73 measure
EFTS basis 34 weeks 34 weeks 36 weeks 48 weeks
Weighted 185 88 158 103 EFTS
$ per EFT $9,529 $7,045 $3,342 $6,049
Govt. $6,000 $3,758 $2,542 $6,049 contribution
Fees $3,529 $3,287 $800 N/a contribution
Student board $4,600 $1,968 $1,945 In budget
Total student $8,129 $5,255 $2,745 N/a cost
Total cost $14,129 $9,013 $5,287 $6,049
FTE tutorial 12 5 10 9
Tutor : student 1: 14 1: 17.6 1: 15.8 1: 11.6 EFTS = Equivalent Full Time Student as an indicator of training activity, FTE = Full Time Equivalent as applied to the employment of tutorial staff, Weighted EFTS = Activity adjusted to benchmark of 34-week training year.
Note: 1. Training activity is measured in the context of a 34-week training year. 2. TMTI budget contains lines for the accommodation and victualling of trainees and staff. Comparative figures for accommodation and board from other institutions are listed separately. 3. NZ Public refers to relevant averages obtained for two separate institutions
Source: TMTI budget and staff interviews with participating institutions 31
1. An analysis of training activity at TMTI reveals that approximately 85% of activity is taken up by the delivery and supervision of pre-employment training. Another 15% of activity is concerned with delivery of higher qualifications for ratings; STCW 95 upgrade training; and mandatory safety training for seafarers in existing employment, as below.
TABLE A2.2. TRAINING ACTIVITY AT TMTI.
Program Duration EFTS Weighted Percentage EFTS
Pre-sea intake 1 48 weeks 20.0 28.2 27%
Pre-sea intake 2 32 weeks 14.0 19.7 19%
Pre-sea intake 3 16 weeks 7.0 9.9 10%
2000 intake 2 16 weeks 7.0 9.9 10%
2000 intake 3 32 weeks 14.0 19.7 19%
AB/Motorman 3 weeks 4.5 6.3 6%
Upgrade/Safety 2 weeks 6.5 9.2 9%
Source: TMTI staff
2. There are very few training institutions with information publicly available that conduct similar activities in a similar fashion, and are therefore suitable comparative analysis. The table following conducts the exercise against the performance of a private sector training establishment in New Zealand delivering pre-employment training for the fisheries sector in that country.
Table A 2.3. Comparative analysis of pre-employment training.
Activity TMTI Pre-sea training NZ Private Fisheries training
Duration 48 weeks 20 weeks
Trainees per intake 20-22 25-30
Time at sea 16 weeks 7 weeks
International qualification Yes No
Weighted EFTS activity 87 88
32 Activity TMTI Pre-sea training NZ Private Fisheries training
Annual budget $632,000 $812,000
Government funding $537,000 $433,000
Student contribution $379,000
Govt. funding per EFT $6172 $4920
FTE tutorial staff 9 5
Tutor: student ratio 1:9.6 1:17.6 Source: TMTI budget 2001 and staff; ADB staff. Weighted EFTS activity based on a 34-week student year. Student contribution also includes contribution and sponsorship from employers in the fisheries sector
3. The School of Maritime Studies is part of the Fiji Institute of Technology (FIT) based in Suva, Fiji. The school was selected for this benchmarking exercise on the basis that it was the closest Pacific Institution offering training for the higher deck and engine room rating qualifications. Students do not have a separate hostel but are live at the main FIT hostel some distance from the campus and commute daily by bus. For both the AB seaman and motorman qualifications it is necessary to also complete separate safety qualifications in First Aid and Proficiency in Survival Craft. Table A2. 4. Costs of Gaining Equivalent Qualifications at FIT.
Item TMTI FIT NZ Safety certificate short courses: First Aid - $77 $115 Fire Prevention and Control - $77 $615 Personal Survival - $77 $115 Personal Safety and Social Responsibility - $77 $115 Total student fee - $308 $960 Govt. funding (average) - $102 $600 Total return to institution $410 $1,560
Advanced Ratings Modules: Technical content - $286 $400 Safety Content - $190 $688 Total student fee - $476 $1,088 Govt. funding (average) $632 $158 $600 Total return to institution $632 $634 $1,688
Source: TMTI; FIT; ADB staff. The government funding and return to institution for TMTI are estimated on the basis of 6% of TMTI cost incurred by training of this type annually, shared between a predicted 60 recipients. Insufficient data was available to make a broad estimate of similar figures for TMTI in regard to the safety certificate short courses.