SPC/ 2017 Energy & Transport Ministers Meeting Agenda Item T5 Original: English PACIFIC COMMUNITY THIRD PACIFIC REGIONAL ENERGY AND TRANSPORT MINISTERS’ MEETING (Nuku’alofa, Tonga, 24-28 April 2017) Theme: Affordable, reliable and sustainable energy and transport services for all AGENDA ITEM T5 – CAPACITY DEVELOPMENT IN THE MARITIME TRANSPORT SECTOR (Submitted by Tuvalu) Purpose 1. The purpose of this paper is to seek Transport Officials’ endorsement of a proposal to develop a long-term approach to capacity development in the Pacific Islands region to better govern the Maritime Transport sector. Background 2. A multilateral Memorandum of Understanding (MOU)1 on the recognition of training and certification of seafarers for service on board vessels registered in Pacific island countries and territories (PICTs) has been in place since 2005. It addresses the mutual recognition of training and certification for seafarers serving on vessels that are entitled to fly the flags of member States in the Pacific region. It also supplements applicable obligations for parties under the Convention on Standards of Training, Certification and Watch keeping for Seafarers (STCW) 1978 as amended. 3. At present, there are fourteen2 national Maritime Training Institutions (MTIs) that provide differing levels of seafarer training in the Pacific Islands region. The majority of MTIs provide training at ratings level for deck and engine room, catering and hospitality, and for fishing fleets. While some MTIs limit their qualifications to seafarers on domestic coastal and inter-island trade, others train towards achieving qualifications accepted by the international shipping industry. MTIs within the Pacific Islands region rarely offer training for maritime administration and port roles and local seafarers are often unwilling to take lower paid positions in shore-based administrations. This results in a shortage of skilled human personnel for the administrative roles that are essential for effective regulatory oversight of the maritime industry. 4. In November 2015, Transport Officials of PICTs agreed to support a multi-country maritime training assessment by sharing data and information, which will ultimately inform the development of a Maritime Training Context Analysis Paper. The objective was to provide guidance for maritime administrations/authorities and MTIs to develop strategies that give effect to maritime training priorities in PICTs. Current Status 5. In Kiribati and Tuvalu, remittances mainly come from seafarers employed in merchant shipping. In Kiribati remittances form approximately 25% of Gross Domestic Product (GDP)3, while in Tuvalu, the figure used to be 30%, but has dramatically declined by almost 89% due to the recession in 2008 that caused some German shipping companies to sell their ships, leading to unemployment of Tuvaluan seafarers who previously served on them. As many as 20 family 1 Parties to the MoU: Cook Islands, Federation State of Micronesia, Fiji, Kiribati, Marshall Islands, Nauru, Niue, Palau, Papua New Guinea, Samoa, Solomon Islands, Tonga, Tuvalu and Vanuatu. 2 These maritime training institutes are in Federated States of Micronesia, Fiji, French Polynesia, Kiribati, Marshall Islands, New Caledonia, Papua New Guinea, Samoa, Solomon Islands, Tonga, Tuvalu, Vanuatu, plus fisheries training colleges in Papua New Guinea and Kiribati. 3 SPC (2011), Sectoral Notes Maritime Transport, (page 5), Secretariat of the Pacific Community, Suva. 1 SPC/ 2017 Energy & Transport Ministers Meeting Agenda Item T5 Original: English members are known to be dependent on the salary of single seafarer. Therefore, the demand for this profession and maritime training is higher in these countries than other PICTs. 6. The table in Annex 1 shows current output from MTIs producing, mainly, at the rating level (except for Papua New Guinea and Fiji). With the global over-supply of ratings by five4 countries, namely, China, Philippines, Indonesia, Russia Federation and Ukraine, the large numbers of seafarers in these five countries has made employment of Pacific seafarers increasingly difficult. However, with the global shortage supply of officer-level qualifications required by some domestic and foreign-going vessels of PICTs, there is opportunity for MTIs to offer officer-level training. 7. In the Pacific region, domestic shipping mainly involves the use of small or “non-convention” vessels that service main governmental or commercial centres and other islands within a country. In some countries, convention-sized vessels service such domestic routes and even neighbouring countries or territories5. A lot of domestic vessels are sailing on domestic routes that are similar to international routes (in terms of distance and time at sea) so that the level of safety requirements and seafarer training is equivalent to international convention. 8. The demand for suitably trained and qualified non-seafarers in surveying and inspection, freight forwarding, marine pilotage, stevedoring and harbour masters is not being met in some Pacific Island countries6. Training of Flag State Inspectors and Port State Control Officers is in high demand for PICTs maritime administrations. With retirement and surveyors moving on, there has to be continuous capacity building of surveyors and inspectors to fulfil Flag and Port State responsibilities. Maritime lawyers are also in high demand to provide specialised advisory, drafting and litigation services required by public maritime agencies and private maritime interests. 9. To supplement the role of the MTIs in the Pacific region, there is a wide range of capacity development initiatives provided in the region. These include universities that offer under- and post-graduate courses or programmes on Maritime Transport, Maritime Law, Ports, etc.; international and regional partners and private training institutions that offer courses on various aspects of maritime transport; and South-South cooperation. South-South cooperation is increasingly recognized as an effective tool for development, and currently amounts to close to 10% of Official Developmental Assistance (ODA)7. This approach has the benefit of promoting self-reliance among developing countries, through the exchange of experience, the pooling and sharing of resources, and the search for solutions to their own development problems in keeping with their values and cultural context. Issues 10. In many PICs, narrow industrial bases, weak private sectors, and small domestic markets limit employment opportunities. These limitations fuel a growing problem in the Pacific; emigration, which results in increased remittances but also declining human resources (brain–drain). But in 4 BIMCO, Manpower Report 2015, the global supply and demand for seafarers in 2015. 5 SPC database contains 2345 domestic vessels registered in 12 countries (Cook Islands, Federated State of Micronesia, French Polynesia, Kiribati, Marshall Islands, New Caledonia, Palau, Papua New Guinea, Samoa, Solomon Islands, Tonga and Vanuatu) – 1176 vessels have a length of 15 m or above or a gross tonnage of 50 or above; 950 less than 15 m or 50 in gross tonnage; 219 vessels are recorded with no information on length and gross tonnage. 620 vessels are declared as carrying passengers including 18 500-gross tonnage or more vessels carrying more than 12 passengers (5 vessels carry more than 400 passengers) - 247 vessels are declared as carrying passengers but no information on number of passengers. 6 The number of calls of vessels engaged on international voyages in the port of 13 PICTs is approximatively 7000 per year (Source: SPC 2014); around 50% calling in Papua New Guinea ports, 35% calling in Fiji, French Polynesia and New Caledonia, 15% in the rest of PICTs (Nauru, Marshall Islands, Samoa, Tuvalu, Kiribati, Tonga, Vanuatu, Solomon Islands, Wallis and Futuna) – the smallest ports are visited by less than 10 distinct vessels each year. 7 The Reality of Aid Management Committee. South-South Development Cooperation: A challenge to the aid system?, Realityofaid.org, 2013 accessed 25/6/2015 at http://www.realityofaid.org/wp-content/uploads/2013/02/ROA-SSDC-Special-Report1.pdf 2 SPC/ 2017 Energy & Transport Ministers Meeting Agenda Item T5 Original: English view of limited employment opportunities in the home country, for most Pacific economies, emigration for work remains an important part of their future. This means that education and training has to cater for the increasing levels of migration as well as for improving investment opportunities at home. 11. Implementing the South-South cooperation approach in the Pacific region requires Triangular Cooperation that involve a third party (often a donor country or an organisation). Several PICTs including Papua New Guinea, Fiji and New Caledonia have reiterated their willingness to participate as hosting country but it is essential to have development partners involved in this approach in the long-term to ensure its sustainability and impact. 12. Many MTIs in PICTs do not have adequate resources and infrastructure; including bridge simulator and engine rooms, machining, fabrication workshops, advanced firefighting and survival training facilities, computer laboratories, adequate library facilities and dedicated navigational room with either electronic or navigational charts to offer officer-level training. The MTIs in Fiji and PNG are the only ones that offer senior level training. With lack of training facilities and equipment, some MTIs can only offer courses to