FOR IMMEDIATE RELEASE

(September 11, 2003)

TOP EXPERTS BRIEF SHIPOWNERS ON ISPS CODE IMPLEMENTATION AT MARSHALL ISLANDS SEMINARS

A panel of top experts has provided shipowners in Europe with specific information on how the Marshall Islands, United States and the European Union will implement the requirements of the International Ship and Port Facility Security (ISPS) Code, as well as highlighted the steps the shipping industry will have to take to ensure the new maritime security regime is in place by the July 1, 2004 deadline.

The experts provided their insights at three one-day seminars - in London on September 3, Hamburg, September 5 and Piraeus, September 9 -coordinated by the Marshall Islands Maritime Administration. Additional briefings are being scheduled for the Far East, South America and the United States.

The panel was chaired by Rear Admiral Robert North, US Coast Guard (Retd.), and included Dan Sheehan, former Director of Information and Technology for the US Coast Guard, and Captain Thomas F. Heinan, Senior Vice President Maritime Operations Department for the Marshall Islands Administration. Captain Frank Sturm, Commanding Officer US Coast Guard Activities, Europe and Alan Cubbin, Chairman of the Paris Memorandum of Understanding’s (MOU’s) Port State Control Committee, joined the panel in London. Alan Cubbin was also present in Hamburg, while Frank Wall, Head of Shipping Policy for the UK Department of Transport, joined the team in Piraeus.

Bill Gallagher, President of International Registries, Inc., the maritime and corporate administrator of the Marshall Islands flag, and John Ramage, Managing Director of International Registries (UK) Ltd., also travelled with the panel and participated in the proceedings.

"Implementation of the wide range of maritime security requirements laid down in the ISPS Code and Chapter XI-2 of the Safety of Life at Sea (SOLAS) Convention represents a complex and challenging issue for the global shipping industry,” Rear Admiral North told seminar delegates.

“In these seminars we have highlighted our step-by-step reviews of what needs to be done to ensure compliance with the principal requirements. Input and cooperation from all stakeholders are essential in order to make the implementation process as efficient and as problem-free as possible. In addition, with less than 300 days left to the deadline, these stakeholders need to start making their commitment now. Most importantly, the measures introduced to satisfy the new maritime security requirements must not compromise efficient global maritime commerce.”

Captain Frank Sturm told seminar delegates that the US Coast Guard would begin a pre-enforcement campaign on January 1, 2004, in which all vessels arriving at US ports would be checked for compliance with Parts A and B of the ISPS Code. The initiative will enable the Coast Guard to test its enforcement program, gauge requirements and revise the program, as appropriate. It will also help shipowners to prepare for the mandatory application of the regime. The performance of Ship Security Plans (SSPs) will be assessed and warning letters will be issued to ships on which deficiencies are found. However, the Coast Guard will not levy any penalties during the six-month “trial” period that will last until July 1, 2004.

Reporting on Paris MOU implementation plans, Alan Cubbin informed delegates that the issue is more complex than for the US Coast Guard because the port State control group comprises 15 European Union member states and six non-EU countries. Like the US Coast Guard, the European Commission has drawn up draft legislation on enhancing ship and port facility security. This rulemaking takes the form of a Regulation, which means that it will enter into force in the 15 EU member countries on July 1, 2004 without the need for each individual member state to draw up its own implementing legislation.

Paris MOU states are adopting a two-tier approach to implementation of the ISPS Code Part A and the mandatory provisions of Part B. If a Paris MOU inspector discovers infringements of the Code during a ship inspection, the matter will be passed on to a third party security inspector for appropriate follow-up action.

“It has been decided that, for the moment, Paris MOU will not specifically incorporate ship security measures in its ship inspection targeting matrix, but that position could change in future,” stated Alan Cubbin. “In addition, like the US Coast Guard, Paris MOU states will begin voluntary implementation of the Code on January 1, 2004, issuing letters of warning following ship inspections, if deemed necessary, to highlight areas where shipowners are falling short of the new maritime security requirements.”

Capt. Tom Heinan highlighted the steps the Marshall Islands has taken in order to meet its maritime security obligations as a signatory of SOLAS. “Earlier this month the Marshall Islands issued Marine Notice No. 2-011-16 to advise and provide guidelines to, owners, operators and masters of Marshall Islands flagged ships, of the Administration’s requirements for compliance with the ISPS Code and relevant SOLAS amendments,” reported Capt. Heinan. “Some of the finer points of the maritime security regime are still to be finalised, and as this work is done, we will issue further Marine Notices.”