INTERTANKO HELLENIC FORUM

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INTERTANKO HELLENIC FORUM

• Report on U.S. Issues and Activities
• Jonathan Benner
• Troutman Sanders, LLP
• Washington, D.C.
• Athens, 08 October 2002

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Operational AdvantageIn A Difficult Environment
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ISSUES

• SECURITY
• Vessel and crew access
• Cost of security programmes
• Pollution impacts of world events
• Insurance
• New Coast Guard Role
• REGULATORY
• Air emissions from diesel engines
• Ballast water control and management
• Only Water Separators
• Tank Pressure/Level Monitoring Devices
• Salvage capabilities

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POST - 11 SEPTEMBER CONCERNS

• Port Security
• Coast Guard Role
• Department of Homeland Security
• Impact on Safety Mission
• Advance Notice Reporting
• Inspections and Escorts

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WHATS SO SENSTIVEABOUT PORTS?

• 2001 5,400 Ships Make 60,000 Port Calls
• 6,000,000 Containers Annually, Limited Direct
  Inspection
• 95 Per Cent Foreign Trade Is Maritime
• Ports Tend to be in or Near Najor Metropolitan
  Centers

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WHAT IS U.S. DOING?

• Detailed Vulnerability Assessments of 55 U.S.
  Ports
• IMO Initiatives by Coast Guard

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PROBLEMS

• Divided Authority
• USG controls navigable waters
• States, localities control terminals and inland
• Florida, others?

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U.S. TREATMENT OF VESSEL PERSONNEL

• Whos in Charge?
• Immigration and Naturalization Service
• U. S. Consular Service, Department of State
• Coast Guard
• U.S. Customs Service

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U.S. TREATMENT OF VESSEL PERSONNEL (continued)

• Is There A Policy?
• Intertanko receives variety of reports
• Variations from port-to-port
• Visa holders
• Persons without visas
• Common threads
• Crew list visas disfavored
• Individual visas required
• Certain nations disfavored
• Little discretion at local level

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U.S. WATCH LISTS

• Approximately 30 Nations on List
• Even visa-ed personnel may encounter difficulties
  if from these nations
• List is Classified, includes
• Pakistan
• Indonesia
• Malaysia
• Nations of reported al-Quaeda presence
• Evidence suggests additional problem
  nationalities

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U.S. WATCH LISTS(continued)

• Evidence Suggests Additional Problem
  Nationalities
• Ukraine?
• Burma?
• Philippines?
• Turkey
• Russia?

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INTERTANKO OBJECTIVES

• Uniformity and Predictability
• Awareness by U.S. authorities
• Internal Coordination among U.S. Authorities of
  Industry Requirements
• Workable, Practical Visa Process
• Application process, duration, cost, must reflect
  realities of seafarers lives.
• Quality of Life Aboard Vessel
• Maintenance of Ability of Owners to Put Qualified
  Personnel Aboard Ships

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INTERTANKO OBJECTIVES (continued)

• Quick and Measurable Reduction of Number of
  Negative Incidents Aboard Vessels.
• Open Communication with Authorities

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ACTIONS TO DATE

• Technical Meetings with Coast Guard, INS,
  Consular Service
• Top-level Meeting at INS on 3 October (joint
  meeting with WSC)

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PROGNOSIS

• No Thunderclap Solution
• Fairly Rigid Measures for Foreseeable Future
• Decline in Incidents as USG and Owners Adjust to
  New Realities

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OTHER SECURITY ISSUES

• AIS Requirements
• Installation on vessels delivered after
• 1 January 2003, all ships delivered after
• 31 December 2004
• Vessel Security Plans
• Quaere relation to ISM, OPA 90
• Customs Requirements
• Terminal Practices
• Restrictions on Crew Access

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KEEP IN MIND

• U.S. Has Suffered Serious Attack
• Credentialing of Seafarers is Primitive
• Many Documented Cases of Ship-Jumping
• Improved Credentialing Will Have Side Benefits
  for Top Companies
• Crew Costs Likely Affected
• U.S. Ultimately Must Find Methods That It can
  Accept if Applied Against It.

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LEGISLATION

• Port Security Legislation
• Funding is difficult issue
• Homeland Security Legislation
• Terrorist/Insurance Legislation
• Appropriations Bills Stalled

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LEGISLATION (continued)

• Congress stalled internally
• Close margins between parties
• Partisan disagreement between President and
  Congress
• November Elections
• Possibility of Lame Duck Session

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LEGISLATION (continued)

• Environmental Terrorism
• OPAs Responsible Party Faces Serious Problems
  in case of Terrorist Attack
• Coverage
• Who pays
• Liability Limits
• Intertanko and Industry Seek Terrorist Exclusion
  and Access to Pollution Funds

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REGULATORY ISSUES
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AIR EMISSIONS

• Intertanko Participates in Proposed Rule
• U.S. to Adopt Annex VI MARPOL
• EPA Appears to Have Ambitions Re Non-U.S. Vessels
• Enviros Controlling Through Court Case

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BALLAST WATER

• Awaiting Coast Guard Final Rules
• Legislation Pending
• Technology Trials
• State/Local Governments Are Problem

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TANK LEVEL MONITORING DEVICES

• Devices Required by Section 4110 OPA
• Sensitive to loss of one per cent cargo
• Installed single hull tank vessels by
• 17 October 2007
• Coast Guard Issues Final Rule
• Intertanko Evaluating Options, Assessing Impacts

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OILY WATER SEPARATORS

• Strict Inspection in U.S.
• Criminal Penalties
• Record Keeping Critical
• ISTEC Action Item

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SALVAGE/FIREFIGHTING

• Coast Guard Proposed Rule Requires Contractual
  Arrangements With Salvors, Firefighters
• Shipowner Must Ensure Qualifications of
  Contractor
• Intertanko Opposes
• CG Proposes to Build Industry on Back of Tanker
  Sector

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RECAP

• Security Issues Have Created, and Will Continue
  to Create, Problems for Owners
• Legislative Picture Unclear
• Department of Homeland Security (where is Coast
  Guard)
• Port Security Act
• Coast Guard Rules Have Large Potential for
  Economies of Ship Operations

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