FOR IMMEDIATE RELEASE

Singapore (October 03, 2003)

IRI PRESIDENT CALLS FOR URGENT INDUSTRY RESPONSE TO MARITIME SECURITY CODE.

New, tougher international maritime security conventions and regulations driven by US anti-terrorism initiatives will be introduced in less than 12 months. The zero tolerance regime will mean improved security and safety measures at sea, but how many flag states will be able to comply with the International Ship and Port Facility Security (ISPS) Code and how much will it cost the industry?

Bill Gallagher, President of International Registries, Inc. (IRI), the Maritime Administrator of the Marshall Islands Ship Registry, addressed these issues at a seminar organized by IRI in Singapore today.

“There is a need from the industry to react quickly as there will not be any watering down of the ISPS process for vessels trading to North America and Europe."

“There are also direct financial costs for ISPS compliance which could amount to some US$30,000 per vessel, if this is multiplied by the 50,000 vessels in the global fleet, this will cost the industry a sum of US$1.5 billion dollars,” said Mr. Gallagher.

The ISPS Code has been specifically introduced to bolster maritime security in the wake of the September 11th, 2001 attacks on the US by terrorists. Further attacks on US naval vessels, the Limburg and Cole have spurred on the introduction of ISPS Code compliance by July 1st, 2004.

Flag states will be responsible for approving Ship Security Plans, compliance with SOLAS and ISPS Code through verification audit, issuing an International Ship Security Certificate (ISSC) and continuous monitoring of ownership, classification and operator information.

Quality ship registries such as the Marshall Islands already ensure compliance through annual vessel inspections which help verify the maintenance of the vessel in seaworthy condition but also serves as a check and balance on the classification societies.

“Flag states that do not routinely inspect their vessels are in dereliction of their sovereign duty as far as I am concerned,” said Mr. Gallagher.

Flag state administrators are intimately involved with the asset or vessel on their respective registers and the security interest of the lender is recorded with the public mortgage registry of the flag state.

“Responsible flag states with the appropriate reputation and resources will help you better weather the storms of our increasingly regulated industry,” concluded Mr. Gallagher.

IRI has been hosting seminars on the ISPS Code worldwide including panelists from port state and flag state organisations as well as the International Maritime Organisation (IMO).