TANKER SAFETY ISSUES. Mr Paul Markides Director OCIMF

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1 TANKER SAFETY ISSUES Mr Paul Markides Director OCIMF ITOPF/INTERTANKO/OCIMF International Seminar on Tanker Safety, Pollution Prevention and Spill Preparedness Shanghai, People s Republic of China 8 December 2005

2 A Voice For Safety Good morning. It is, indeed, a pleasure to be here in the beautiful city of Shanghai and to have this opportunity to share with you the views of the Oil Companies International Marine Forum (OCIMF) on the very important topic of safe transportation systems. The key points I plan to cover in this presentation are: 1. A brief overview of OCIMF 2. Tanker quality 3. Enforcement of existing legislation 4. Double hulls 5. Structural integrity 6. Port and terminal safety 7. Maritime safety a holistic approach For those who may not be familiar with OCIMF, I would like to take a moment to describe our organisation and it s purpose. The Oil Companies International Marine Forum was established in 1970 in response to increasing public awareness of marine pollution by oil in the wake of, what was then, the world s worst oil spill the grounding of the Torrey Canyon in OCIMF currently has 55 Members including virtually every major oil company in the world. The principal thrust of our activities is the same now as it was in 1970 and that is the provision to our members, and all those involved in the business of oil transportation by sea, of high quality technical advice on all aspects of the safe and environmentally responsible operation of oil tankers and terminals. OCIMF discharges its safety and environmental responsibilities through participation at all IMO and IOPC Fund meetings, where OCIMF has consultative status and is recognized as an authority on marine matters. Through the publication of our own internationally recognised guidelines and information papers prepared by technical experts from member companies OCIMF has established itself as an industry leader in safety and environmental protection. Many of these guides have become in themselves benchmarks for the oil industry. Let us now move on for a brief discussion on tanker quality.

3 Tanker Quality Let me start by saying the majority of the world fleet of tankers is of good quality. However a concern is that a significant minority is not. As well as being a risk to the environment the operators of these sub-standard vessels also gain economic advantage over good quality shipowners by cutting corners to reduce costs. Whilst the application of vetting by oil companies, complemented by the development of the OCIMF Ship Inspection and Reporting Programme, SIRE, has been instrumental in improving the standard of a significant part of the world fleet, it does not provide the solution for sub-standard tankers which find employment in trades where there is no professional vetting. OCIMF therefore fully supports initiatives to reinforce the implementation of the many already adequate international conventions and regulations which address all tankers. Major oil companies have systems for ship quality assurance to aid the selection of quality ships for the transportation of oil. One of the key inputs is information from ship inspection reports. OCIMF members carry out over 10,000 inspections per year, with individual vessels typically being inspected twice per year. The inspectors are experienced marine professionals who are specially trained and accredited by OCIMF as well as undergoing routine audits of their performance. The inspection reports contain factual observations, not opinions or judgments and are entered into a Ship Inspection Report database maintained by OCIMF. They are available to all OCIMF members for a nominal fee and are also available, free of charge, to government authorities, thus potentially providing a tool for more effective targeting of Port State Control inspections. The take-up by authorities worldwide is growing, but is still disappointingly low. Ship-owners generally recognise that, to be considered for charter by major oil companies, their ships need to have a valid SIRE inspection, the maximum period of validity being twelve months. We ll now move on to look at the enforcement of existing legislation. Enforcement of existing maritime regulations There are sufficient maritime standards and rules existing in the international, regional and national arena, which, if effectively implemented and enforced, would measurably improve safety and security at sea and thereby help prevent oil tanker pollution. Examples of these are SOLAS, MARPOL, the ISM Code and ISPS. Improved targeting of poor quality ships for inspection and increased frequency of inspection is necessary to provide a disincentive to sub-standard shipping and it is in this area that Port States have a key role in effectively enforcing existing legislation. We welcome actions by members of the Paris Memorandum of Understanding to increase the number of ships inspected. As stated above, we believe that use of the SIRE system by authorities would be beneficial to target Port State Control inspections at those tankers that pose the highest threat. In addition, Flag States have an equally important role of ensuring that the ships they allow on their registers comply with all relevant international regulations. The IMO model audit scheme for Flag States will provide the mechanism for achieving integrated enforcement among

4 Flag States and we would welcome national legislation that further enforces this key element of the drive to rid the seas of sub-standard ships. OCIMF also works with the Maritime Transport Committee of the Organisation for Economic Co-operation and Development (OECD), which is currently looking at methods of discouraging sub-standard operators. So, what about double hulls and structural integrity? Double hulls Double hulls provide additional protection in the event of low energy grounding or collision. In 2003, OCIMF provided input to the work of the International Maritime Organization which culminated in the agreement to advance the phase-out of single hull vessels, including restrictions in the meantime on the carriage of heavy oils. However, double hulls are not a substitute for proper management, manning and maintenance. It is important therefore that the subject of double hulls should not divert attention from the imperative of achieving effective implementation of the whole range of maritime safety regulations and while on the subject of maintenance of ships structures, what about structural integrity Structural Integrity Classification Societies set standards for construction of ships and assess the structural condition throughout the life of the vessel. OCIMF believes that in the light of recent incidents that call into question certain aspects of the structure of vessels, in particular bulk carriers and oil tankers, it is appropriate to continue to look for enhancements to the regime basis for design standards. We therefore welcome initiatives at the IMO to develop, in conjunction with Classification Societies and the industry, goal based standards for ship construction. Due to operational constraints it is not usually safe or practicable for SIRE inspectors or Port State Control inspectors to enter the tanks of a tanker and therefore the inspection of internal structure in these areas is left to the remit of Classification Societies during routine surveys and inspections. It is therefore vital that the surveys carried out by Class are also thoroughly performed and to uniform standards. Particular issues of importance include: Uniformity of minimum standards for construction Survey procedures, training and application Transfer of Class to stop the practice by some unscrupulous owners of transferring Class to avoid carrying out repairs required by its previous Classification Society OCIMF welcomes the initiatives being taken by some Classification Societies to address these issues. We urge fast progress on a global basis.

5 Port and Terminal Safety But of course, maritime safety is not just about ships. Port and Terminal standards and practices are also an important component. The International Safety Guide for Oil Tankers and Terminals (produced by the International Chamber of Shipping, OCIMF and the International Association of Ports and Harbours) provides a standard reference for this. OCIMF has also recently issued the Marine Terminal Baseline Criteria and Assessment Questionnaire giving terminals a practical tool to assess themselves against industry benchmarks with a view to continuous improvement. We commend these documents as providing a basis on which port authorities and terminal operators can assess their facilities and operations against world-class standards. Maritime Safety - a holistic approach Finally, we would highlight the following elements that we believe will improve maritime safety and thereby reduce the risk of harm to people and the environment: A robust international framework under the aegis of IMO, with active enforcement of existing international, national and regional legislation. Flag States to participate in the IMO model audit scheme. Governments to strengthen Port State Control measures, using all available information including SIRE where applicable as tools to target higher risk, potentially sub-standard tankers. Classification Societies to adhere to uniform standards both globally and across Societies. Port Authorities and Terminal Operators to have robust processes for assuring the standard of their facilities and operations. Conclusion In conclusion, the key to improved maritime safety is the active enforcement of existing laws, and the integration of a number of developments on an international basis. Working together we can hopefully stop these unfortunate incidents and keep our oceans and coasts clean. Thank you for you time

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