THE PRESTIGE FACTOR . . . and the industry initiatives California Land Commission Prevention First 2004 Dragos Rauta INTERTANKO

The International Association of Independent Tanker Owners INTERTANKO 230 (+/-) Members from 40 countries 2,200 (+/-) tankers 165 million dwt Average age: 11.8 years 280 (+/-) Associate Members 25 Staff / 8 Consultants Oslo London Singapore Washington

M/T ERIKA 12/12/1999 M/T IEVOLI SUN 10/31/2000 M/T PRESTIGE 11/XX/2002

Tanker phase out - m dwt Notes

As by existing fleet on June 1, 2004

Fleet by hull percentage Notes 1. Naturally understands the concerns associated with and threats posed by oil transportation, with the reminder that the accidental pollution and incident records have shown very considerable and sustained improvements for more than 10 years. 2. Stresses the imperative that all involved maintain strict adherence to international (maritime) law and review processes. 3. Advocates the conducting and completion of an impartial, comprehensive accident investigation. Stresses the necessity, before any new measures are proposed or introduced, for rigorous analysis and understanding of the risks and consequences involved based on sound technical grounds, and where appropriate encourages a full impact analysis of each such measure. 4. As a matter of principle, rejects unilateral and/or regional, ill-considered, (and frequently expeditious/opportunistic and reactionary) measures. 5. Reminds that shipowners receive only a very small proportion of the economic benefit from oil supply and distribution, and that the principal beneficiaries in this value chain are oil companies and traders. * Including DB and DS tankers

Tanker deliveries, demolition, phase out m dwt Notes

TANKER DESIGN common rules for tanker construction more sophisticated design common rules for tanker construction North Sea wave spectrum higher strength criteria designed for at least 25 years

Ship Construction - quality of construction - monitoring - scheme for construction survey Suezmax tanker during construction Source: Thenamaris Ship Management

Maintenance different routines all good but . . common threads between them guideliens to set: the standard procedures frequency to be applied

INSPECTION Height to climb 7 miles Area to survey 3.2m sq. ft Length of weld 750 miles Length longitudinals 36 miles Bottom area 115,000 sq. ft 1 % pitting = 85,000 pits

the distances and surface which ship surveyors had to cover for inspection are enormous People INSPECTION

ACCESS Horizontal passageways in place of vertical ladders on transverse webs VIEW OF TYPICAL UNDER DECK WALKWAY LOCATED 2 METERS BELOW MAIN DECK COMPRISING OF EXTENDED LONGITUDINAL

VLCC cargo tank walkway Oversized longitudinals HERE WE SEE A DOUBLE HULL VLCC MIDSHIP SECTION CENTRE TANK. NOTICE THE OVERSIZED LONGITUDINALS AND THE PLATFORMS AROUND THE WEB FRAMES TO GIVE RELATIVELY EASY ACCESS FOR INSPECTION OF STRUCTURES. Notice oversized longitudinals as access walkway for inspection and the walk way platforms around the web frames

UNDER DECK LONGITUDINAL BALCONY (WALKWAY) IN CARGO & SIDE BALLAST TANKS ADDITIONAL STRINGERS MINIMIZING HEIGHT AND GIVING EXTRA STRENGTH LONGITUDINAL STINGER ON CL BHD AT 5.8m BELOW DECK FOR TYPICAL SUEZMAX

Walkway in ballast tank using oversized longitudinal fitted with railing Source: Thenamaris Ship Management

MANNING AND OPERATION There is no higher investment than on the people who take care of the ships to ensure proper operation and proper maintenance

Unfortunately, we see that more and more Governments treat tanker officers as criminals

Publications – Industry Guides Guide to bunkering of ships for the purposes of Annex VI to MARPOL A Guide for correct entries in the Oil Record Book A Guide to Crude Oil Washing and Cargo Heating Criteria Tanker Specification Awareness Guide A Guide to the Vetting Process, 5th. Edition A Guide to Tanker Charters (2001) Tanker Bills of Lading - A Practical Guide Awareness Guide to Incident Management and Media Response

Membership Criteria : All tank vessels classed with IACS society Owner with reputable P&I club Effective ISM Code Good Port State Control record All INTERTANKO members’ tankers shall have a audited Emergency Response Service in place for the determination of stability and strength in a damaged condition.(1 January 2004)

Port State Control – detentions by year of build

Tanker incidents1978-03 Number Source: LMIS, Informa, press, INTERTANKO

US oil spills from tankers – extremely reduced

Port State Control – detentions

Tanker industry PERCEPTION Manipulated photo, bird placed on clean Seashell

Tanker industry REALITY The marine transportation of crude oil, oil and chemical products is essential to our everyday lives Shipping is environmentally friendly Shipping is efficient and reliable The tanker industry does have a good record – is responsible and is committed to continuous improvement

US CIF oil price* - USD cost consumer can barely perceive on top of price at the pump *Costs of oil transported from the Persian Gulf to LOOP

Places of Refuge A Solution Waiting to be Implemented Erika II Package – December 2000 Requires Each Member State to Draw up Emergency Plans for Hosting Ships in Distress in Places of Refuge

LIABILITY and CRIMINALISATION Increasing liabilities of shipowners & others Extended criminalisation Penal Sanctions led by politicians or by the public ?

ACCIDENT INVESTIGATION the value of learning from failures and accidents cannot be over-emphasised rigorous and comprehensive accident investigations in-service experience of structural, mechanical and human failures, and near-miss reporting in ship operations, should be the norm . . . . . without the assignment of blame, and in as free and open a manner as is possible

We know but not mind been watched . .

. . although we would wish the perception be closer to the reality of all conditions of trade . .

. . and the terrible dangers to which ships and seafareres are exposed. M/T LIMBURG Ships must be built, maintained and manned for hurricanes that leave shore sites in ruins!

. . . . pollution . . . . but from unseen sources. The U.S. Environmental Protection Agency (EPA) estimates that American households generate 193 million gallons of used oil annually, some of which is improperly disposed. The EPA estimates that households improperly dump the equivalent of 17 Exxon Valdez oil spills, every year! The California Office of Spill Prevention and Response Press Release, June 2003 http://www.dfg.ca.gov/ospr/organizational/admin/news/2003news/june26-2003.pdf

Responsible parties working together...... SHIPOWNER CLASS SOCIETIES CHARTERER PARTNERSHIP: Working closely with regulators and legislators SHIPYARDS CARGO OWNER INSURERS PORTS & TERMINALS BANKS & INVESTORS FLAG STATES

Thank you ! www.intertanko.com Safe Transport, Clean Seas and Free Competition Europe is more concnered with the effect of shipping rather than being shipping nations. Europe is acting more like ports states than shipping nations Thank you !