INTERTANKO Transparency Working Group status report Dimitris N Lyras Director, Lyras Shipping © Lyras Shipping 2002 Maritime London 2002

The INTERTANKO working group Aims and objectives Finding a solution to the transparency discussion Suggesting a common policy Initial discussions suggest a voluntary policy on transparency for members Set an environment for healthy competition Mitigate the effects of isolated information, e.g. Class recommendations Lead to integrity and recognition © Lyras Shipping 2002 Maritime London 2002

The INTERTANKO working group Suggested voluntary policy: Voluntary increase in management standards Progressively more measurable internal transparency This is no doubt the main purpose of the ISM code © Lyras Shipping 2002 Maritime London 2002

The competent tanker operator Internal assessment should set the standard Should be far more sophisticated than external inspection Keeping records of differences between external and internal audits is an indicator of the operator’s diligence Comparison demonstrates operator’s attitude Create a defence against rulings of negligence in major incidents © Lyras Shipping 2002 Maritime London 2002

The drive towards higher standards Oil majors will drive ISM implementation Through risk of reputation related liability May be timely to rekindle self-motivated industry drive towards higher management standards Improving standards a means to gain competitive advantage This is a preliminary report Many questions as yet unanswered E.g. How does increased internal transparency adversely influence commercial disputes and accident investigations? How can we solve these problems? © Lyras Shipping 2002 Maritime London 2002

Obstacles to internal transparency Three major obstacles Internal communication mechanisms are inefficient Obstacles to a collaborative culture Additional legal liabilities arising from increased record keeping First being rapidly addressed by modern technology Second a managerial matter Already addressed in many industries and no doubt will be embraced by shipping Third a huge issue © Lyras Shipping 2002 Maritime London 2002

Protecting the owner Need a means to protect owners Contractual terms with respect to privity of information to the manager may need to be modified. From accusations of gross negligence where there is historic evidence of diligent operation The expertise to find a solution no doubt exists within this assembly! © Lyras Shipping 2002 Maritime London 2002

In conclusion If transparency is to improve quality in vessel operations, it must be scrutinised and judged by experts. If transparency is to proliferate quickly and practically it must offer clear benefit to the practitioner, and an advantage over a competitor who does not embrace transparency. © Lyras Shipping 2002 Maritime London 2002

Thank you for your attention Dimitris N Lyras Director, Lyras Shipping © Lyras Shipping 2002 Maritime London 2002