MPP-EAS/Info/99/195 Marine Pollution Management in the Malacca/Singapore Straits: Lessons Learned March 1998 MARINE POLLUTION MANAGEMENT IN THE MALACCA/SINGAPORE STRAITS: LESSONS LEARNED March 1998 Published by the GEF/UNDP/IMO Regional Programme for the Prevention and Management of Marine Pollution in the East Asian Seas Printed in Quezon City, Philippines A GEF Project Implemented by UNDP MPP-EAS/Info/99/195 The contents of this publication do not imply, on the part of the Global Environment Facility, the United Nations Development Programme, the International Maritime Organization and its Programme Development and Management Office for Marine Pollution Prevention and Management in the East Asian Seas, or other participating organizations, the expression of any position or opinion on the legal status of any country or territory, or its authority, or concerning the delimitation of its boundaries. Contents LIST OF TABLES ................................................................................................................................ vii LIST OF FIGURES .............................................................................................................................. viii LIST OF BOXES .................................................................................................................................. ix ACKNOWLEDGMENTS .......................................................................................................................... xi EXECUTIVE SUMMARY ...................................................................................................................... xiii INTRODUCTION ......................................................................................................................... 1 SCOPE OF THE STUDY .................................................................................................................... 1 GENERAL SETTING ........................................................................................................................ 3 STRAIT USES AND USERS ............................................................................................................... 4 Shipping .............................................................................................................................. 4 Fisheries ........................................................................................................................... 17 Mining .............................................................................................................................. 19 CONSTRAINTS TO COOPERATION .................................................................................................... 19 INSTITUTIONAL ARRANGEMENTS .................................................................................... 23 A BRIEF HISTORY ....................................................................................................................... 23 THE STRAITS STATES PERSPECTIVES ............................................................................................. 26 NATIONAL POLICIES AND MANAGEMENT PRACTICES ....................................................................... 27 Indonesia .......................................................................................................................... 27 Malaysia ........................................................................................................................... 37 Singapore .......................................................................................................................... 48 REGIONAL COOPERATION .............................................................................................................. 52 Development of An Oil Spill Response Capability ........................................................... 52 ASEAN Committees .......................................................................................................... 57 Lessons Learned ............................................................................................................... 57 ASEAN Strategic Plan of Action on the Environment (1994-98) ..................................... 58 ASEAN Cooperation Plan on Transboundary Pollution of 1995 ..................................... 59 Tripartite Technical Experts Group and the Traffic Separation Scheme ......................... 59 The South China Sea Informal Working Group ................................................................ 60 iii INTERNATIONAL COOPERATION ...................................................................................................... 60 The International Maritime Organization........................................................................ 61 Ships’ Routing ................................................................................................................... 64 Ship Reporting Systems .................................................................................................... 65 Vessel Traffic Services ...................................................................................................... 66 Liability and Compensation for Damage in Connection with Carriage of Hazardous and Noxious Substances by Sea Convention ....................................... 66 IMO’s Activities in the Malacca Straits Area ................................................................... 66 Asia-Pacific Economic Cooperation ................................................................................ 68 Basis for Cooperation Regarding Marine Reserves......................................................... 70 LEGISLATION AND AGREEMENTS ..................................................................................... 75 THE UNITED NATIONS CONVENTION ON THE LAW OF THE SEA ......................................................... 75 Compulsory Pilotage ........................................................................................................ 78 Mandatory Ship Reporting ............................................................................................... 78 Relevance to the Straits of Malacca and Singapore ......................................................... 79 Port State Control ............................................................................................................. 81 SHIPMENT OF HAZARDOUS WASTE ................................................................................................ 84 THE BASEL CONVENTION ............................................................................................................. 86 BOUNDARY RESOLUTION .............................................................................................................. 87 HARMONIZATION OF LEGAL REGIMES ............................................................................................ 89 National vs. International Priorities and Standards ........................................................ 89 Legal Issues Which May Arise ......................................................................................... 91 DESIGNATION OF THE MALACCA STRAITS AS “SPECIAL A REA” ......................................................... 98 COSTS AND COMPENSATION ............................................................................................ 103 TRANSIT VALUE OF THE STRAITS ................................................................................................ 103 SERVICE COSTS ......................................................................................................................... 104 POLLUTION COSTS ..................................................................................................................... 107 COSTS TO TOURISM ................................................................................................................... 107 COMPENSATION SCHEMES ........................................................................................................... 108 CRITERIA FOR COMPENSATION .....................................................................................................111 Preventive Measures....................................................................................................... 112 Property Damage ........................................................................................................... 114 iv Economic Loss ................................................................................................................ 114 Environmental Damage .................................................................................................. 115 How to Present a Claim for Compensation .................................................................... 117 Compensation Models .................................................................................................... 118 Who Should Pay? ........................................................................................................... 120 A Special Regime for the Straits? ................................................................................... 121 JAPAN’S CONTRIBUTION TO SAFETY OF NAVIGATION IN THE MALACCA/SINGAPORE STRAITS ............. 121 Malacca Straits Council ................................................................................................. 121 Oil Spill Response Action Plan ...................................................................................... 122 Petroleum Association