INTERTANKO Asian Panel Meeting

2nd March, Tokyo

1. Welcome and introductory remarks

2. INTERTANKO Update
3. Consideration of INTERTANKOs Key Issues
3.1 Tanker market
3.2 Facilitation payments
3.5 US issues
4. Regional Issues
3.6 Marine Issues
3.3 Piracy
3.4 GHGs
3.7 Environmental Issues
5. Date and place of next meeting
6. Any other business
 Anti-Trust/Competition Law
Compliance Statement
INTERTANKOs policy is to be firmly committed to maintaining a fair and
competitive environment in the world tanker trade, and to adhering to all
applicable laws which regulate INTERTANKOs and its members activities in
these markets. These laws include the anti-trust/competition laws which the
United States, the European Union and many nations of the world have
adopted to preserve the free enterprise system, promote competition and
protect the public from monopolistic and other restrictive trade practices.
INTERTANKOs activities will be conducted in compliance with its Anti-
trust/Competition Law Guidelines.
Asian Panel and Member Seminars

2009
November
Singapore Members Seminar
Hong Kong Asian Panel Meeting
December
Shanghai Members Seminar

2010
March
Tokyo Asian Panel Meeting
Seoul Members Seminar
Dalian Member In-house Seminar
Shanghai Member In-house Seminar
 INTERTANKO Asian Panel Meeting
2nd March, Tokyo

1. Welcome and introductory remarks

2. INTERTANKO Update
3. Consideration of INTERTANKOs Key Issues
3.1 Tanker market
3.2 Facilitation payments
3.5 US issues
4. Regional Issues
3.6 Marine Issues
3.3 Piracy
3.4 GHGs
3.7 Environmental Issues
5. Date and place of next meeting
6. Any other business
 3.6 Marine Issues
Oil Company Relations
 3.6 Marine Issues
Oil Company Relations: key areas of cooperation

Generic Items
Involvement in development of tanker best practice: ISGOTT, the Mooring
Equipment Guidelines and the Tanker Management & Self Assessment
(TMSA)
Cooperation on common new building standards
Participation and cooperation on development of best practice for standard
maintenance with the oil companies
Closer cooperation between ISTEC and OCIMF Technical sub-committee

SIRE
Seeking increased transparency as to who are the recipients of the SIRE
reports (this is currently not available, only the submitters are known)
INTERTANKO would like to see:
an increased number of accredited SIRE inspectors,
an ease of complying with 4-6 month validity requirements of SIRE reports, and:
a reduction in the cost of the vetting process.
 3.6 Marine Issues
Oil Company Relations: key areas of cooperation

Technical Co-operation
Requesting an improvement in efforts to notify owners of any change in the
vessels vetting status within an Oil Company, at the time of change.
(Currently owners are only made aware of a change in status when the
vessel is offered for business)

Freight and Demurrage

INTERTANKO members continue to experience problems with demurrage
claims and requests that these be paid as soon as they are incurred

Terminals
INTERTANKO looks to OCIMF for support and cooperation for safe access
to vessels at terminals for the safe management and maintenance of vessels
together with supporting crew welfare
 3.6 Marine Issues
Oil Company Relations: key areas of cooperation

Inspections
Welcome more cooperation regarding the problems associated with the
multiplicity of acceptability in the vetting and screening process
Seeking cooperation with OCIMF in establishing TOTS as an industry
standard
Advocate the use by charterers of the SIRE system to increase the
uniformity of inspections
Common guidance on inspections at the New Building stage would
overcome the current difficulties experienced by owners when seeking an
inspection
Age discrimination still exists within certain oil companies, contrary to recent
regulatory developments. This reduces the owners incentive to maintain
vessels after a certain age.
 3.6 Marine Issues
Tanker Officer Training Standards
 3.6 Marine Issues
Tanker Officer Training Standards

The need for TOTS...

Increasing Incidents
Officer Training Requirements
Matrix requirements
Continuous Improvement
TMSA 2

Human Element Factors

Shortage of Experienced Officers
 3.6 Marine Issues
Tanker Officer Training Standards

TOTS objectives
Ensure compliance with
todays rules & regulations.

Ease compliance with

Officer Matrix Requirements

Ensure that the team

onboard will operate the
tanker environmentally
aware and safe
 3.6 Marine Issues
Tanker Officer Training Standards

INTERTANKO has issued Authorisations to all IACS Members:

American Bureau of Shipping (ABS)

Bureau Veritas (BV)
China Classification Society (CSS)
Det Norske Veritas (DNV)
Gemanischer Lloyd (GL)
Korean Register (KR)
Lloyds Register (LR)
Nippon Kaiji Kyokai (ClassNK)
Registro Italiano Navale (RINA)
Russian Maritime Register of Shipping (RS)
 3.6 Marine Issues
Tanker Officer Training Standards

TOTS to be available fully electronically: E-TOTS

Arrangement with Seagull to produce E-TOTS
Unless logo is present, it is not officially licensed by
INTERTANKO
Numerous companies working on full implementation

Winner of Seatrade Award 2009

Investment in People
 3.6 Marine Issues
Terminal Vetting Database
 3.6 Marine Issues
Terminal Vetting Database (TVD)

INTERTANKO's Terminal Vetting Database

broadens its access
Published: 05 February 2010

Access to INTERTANKO's Terminal Vetting Database (TVD) is now

available to those who are tanker owners/operators, terminal
owners/operators, PSC authorities and others with a legitimate interest in
improving safety, but who are not Members or Associate Members of the
Association.

Access to the TVD continues to remain free of charge, although access

still requires agreement and compliance with the TVD's terms and
conditions of use. We believe that such broadened access to the TVD will
be to the benefit of all with an active interest in improving the safety of the
vessel at the ship shore interface.
 3.6 Marine Issues
Terminal Vetting Database (TVD)

Quick recap...
What
Terminal Vetting
Tankers are vetted but are sometimes asked to make fast to poor quality
berths
The vetting process works for ships, so why not for terminals?
Why
enhance safety at the terminals
improve member efficiency by influencing terminals to fix problems
maintain industry safety record
Who
Access to the system is controlled by INTERTANKO and was strictly limited to
INTERTANKO Members and Associate Members
As of 2010, access granted to all interested parties
The Terminal Vetting Database is hosted by www.Q88.com in partnership with
INTERTANKO
Access is usually set up within one business day
3.6 Marine Issues
Terminal Vetting Database (TVD)
 3.6 Marine Issues
Terminal Vetting Database (TVD)

A recent upgrade in the format makes its operating style similar to the
SIRE and CDI systems, so that if a ship reports a poor rating (a score
of 2 or less out of 5) for any of the 12 scored items:

1. the terminal is automatically notified and asked to directly address that

item and to provide "Terminal Comments" within 30 days for entry into
the TVD
2. a "Low Score Alert" is sent to INTERTANKO and to the Chairman of
the TVD Working Group.
3. INTERTANKO's Vetting Committee regularly discusses selected
Terminal Vetting Reports (TVRs) as part of its bi-annual meetings.

The source of information will continue to be kept confidential. Although

the vessel name, IMO number, and Master's name are included as
questions in the report form, that information is only for the use of
the individual companies and INTERTANKO, and is not accessible on
the web site.
3.6 Marine Issues
Terminal Vetting Database (TVD)
 3.6 Marine Issues
Terminal Vetting Database (TVD)

For more information regarding the TVD and to

request access to the TVD please contact

support@Q88.com or TVD@intertanko.com

or register at

www.q88.com/tvd.aspx
 3.7 Environmental Issues
GHGs and the SEEMP / TEEMP
 3.7 Environmental Issues
GHGs and the SEEMP

Ship Energy Efficiency Management Plan

Developed as a ship-specific plan by the ship owner
Part 1 What the Plan should look like in four parts
1. Planning: Package of measures identified & Goal setting
2. Implementation: Implementation system
3. Monitoring: Monitoring system (tools and record keeping)
4. Self-evaluation & Improvement: Voluntary reporting

Part 2 List of possible options for improving energy

efficiency (enter INTERTANKOs Guide)
 3.7 Environmental Issues
GHGs and the SEEMP

INTERTANKOs Guide for a Tanker Efficiency and Emission

Management Plan
1. Introduction *
2. Establishing the Company and Ship Management
Plans
3. Voyage Optimisation Programme
4. Propulsion Resistance Management Programme
5. Machinery Optimisation Programme
6. Cargo Handling Optimisation
7. Energy Conservation Awareness Plan

* Also introduces elements associated with the over-lap between

SEEMP and OCIMF TMSA Fuel Management Appendix
 3.7 Environmental Issues
Ballast Water Management
 3.7 Environmental Issues
Ballast Water Treatment

IMO BWM Convention

The BWM Convention will enter into
force 12 months after ratification by 30
States, representing 35 per cent of world
merchant shipping tonnage.
As at 2 March 2010: 21 countries
representing 22.63% of world merchant
shipping tonnage
Implementation dates still important...
 3.7 Environmental Issues
Ballast Water Treatment

IMO BWM Convention

Summary of implementation dates:
Ship constructed before 2009
BW capacity 1500-5000m3 have treatment system from first intermediate or renewal survey after
anniversary date in 2014
BW capacity less than 1500m3 and greater than 5000m3 have to have treatment system from
first intermediate or renewal survey after anniversary date in 2016

Ship constructed in or after 2009

BW capacity less than 5000m3 shall have a treatment system installed at its second annual survey
and no later than 31/12/2011

Ship constructed after 2009 but before 2012

and with a BW capacity greater than 5000m3 shall have a treatment system from first intermediate
or renewal survey after anniversary date in 2016

Ship constructed in or after 2012

with a BW capacity of greater than 5000m3 shall be constructed with a BW treatment system
 3.7 Environmental Issues
Ballast Water Treatment
Concern expressed over treatment systems to meet 2012 deadline
INTERTANKO Environmental Committee need to find solutions to
assist members and seek evidence that systems will work in
practice
Treatment
Generation of chemicals
Approval
Capital Cost ($USD)
Power Consumption
Other Costs: consumables, spares, maintenance
Operating costs10-year
Cost (Capex + Opex)
Size (m3)
Weight (kg)
Pressure Drop
# installations/contracts
Largest installation
 3.7 Environmental Issues
Ballast Water Treatment

IMO BWM Convention

States continue to implement IMO Convention, e.g. Norway
Other States seek to go beyond IMO Convention, e.g. USA
Implementation issues arising: Ballast Water Record Book
format
IMO list of Guidelines continues to be important but overlooked
by operators:
Guidelines for Ballast Water Sampling

Guidelines for Ballast Water Management and Development of

Ballast Water Management Plans
Guidelines for Ballast Water Exchange

Guidelines for Ballast Water Exchange Design and Construction

Standards
Guidelines for Sediment Control on Ships
4. Regional Issues
 4. Regional Issues
China Oil Pollution Regulations

Regulations on the Prevention and Control of Ship-Induced

Pollution of the Marine Environment
1st March 2010
Any ship-induced pollution accident or any ship-related operation that causes or may
cause pollution damage to the internal waters, territorial seas, and the contiguous zones,
exclusive economic zones and continental shelves of the PRC and all other sea areas
under the jurisdiction of the PRC
Need for ship emergency response plans
All ships, except those of less than 1,000gt and not carrying oil cargoes, must carry
insurance to cover claims for pollution
The limit of liability is that in the PRC Maritime Code (LLMC 76).
The insurance must be provided by an entity approved by the China MSA
The operators of any ships carrying bulk hazardous and pollutant liquid cargo shall
contract with an MSA approved local clean-up contractor
It would seem that there this no limit of liability PRC Maritime Code (LLMC 76)
Receivers of persistent oil cargoes are required to contribute to the PRC Fund, which
would compensate for ship-induced pollution claims that are in excess of CLC limits.
Provisions for discharge and receipt of waste (port reception facilities)
 4. Regional Issues
China Oil Pollution Regulations

Regulations on the Prevention and Control of Ship-Induced

Pollution of the Marine Environment

INTERTANKO Observations and Queries

1. Not certain whether CLC 92 for persistent oil or Bunker Convention 2001 for ships
over 1,000gt would suffice in terms of insurance
2. Entities approved by the China MSA to provide insurance cover P&I?
3. Require a list of approved clean-up contractors asap so companies can begin
establishing contracts by the 1st March deadline
4. Although China is not a party to the Fund, contributions to a PRC Fund would seem to
be a local variation on the CLC Fund principle
5. Assumed that SOPEP and SMPEP would suffice as the ship emergency plans
6. Not clear whether standardised advance notification forms and waste delivery receipts
for port waste reception facilities will be used
7. Await an official english translation and further guidance
8. IG P&I clubs state delay for 3 months no official proof/evidence received
 4. Regional Issues
Pilotage in the Straits of Malacca and Singapore

Singapore Seminar and Hong Kong Asian Panel Meeting:

Consideration of voluntary pilotage for laden VLCCs through-out Malacca
and Singapore Strait transits

Considerations:
Availability of qualified pilots (marine advisors) PSA Class A1 only?
Charterers support : Chevron, Exxon and Total already suggest/request
Possibility for littoral states to make mandatory and increase pilotage dues
above has implications for other parts of the world
Why limited to only laden VLCCs? What of smaller tankers or other ship types?

Developments:
Indonesia leading littoral states in new pilotage requirements (voluntary)
Littoral states studying pilotage needs as well as carrying capacity in Straits
5. Any other business

6. Date and place of next meeting

- Proposal: Singapore, October in conjunction with INTERTANKO Council
meeting
 thank you

For more information please visit

www.intertanko.com

tim.wilkins@intertanko.com