1. SNEC – ACS SEMINAR ON SAFE NAVIGATION & THE ENVIRONMENT 22 March 2013, Seoul IMO Regulatory Development Liang Jing Deputy General Manager China Classification Society

2. 1 Introduction 2 Major international maritime conventions 3 International maritime regulatory regime 4 Conclusions

3. I. Introduction IMO Conventions and Class Society Rules Technology innovation Market segmentation Quality Zero tolerance of Environment pollution Occupational Health and Safety Risk Management Safety Environmental pollution Efficiency Industry demands

4. II. Overview of major international maritime conventions 12345678 123 12345612345 6 123456123456 12345678 123456787897 123456123456

5. 1 234567 GBS and CSR-H Goal-based ship construction standards for bulk carriers and oil tankers. apply to SOLAS building contract on/after 1 July 2016 keel laying on/after 1 July 2017 delivery date on/after 1 July 2020 or For BC & OT of 150 m in length and above. single deck, with top-side tanks and hopper side tanks, excluding ore carriers and combination carriers. or Gaps analysis Fatigue Life, Residual Strength, Structural Redundancy, Human Element, Design Transparency, Structural Accessibility. partial inconformity Recycling inconformity Challenge: conformity with GBS (more robust ships) and EEDI (more efficient ships)

6. 1 234567 GBS and CSR-H 1 July 2012, first draft of CSR-H IACS Industry Presentation on CSR-H in Busan, 3 September 2012, KR Shanghai, 5 September 2012, CCS Tokyo, 7 September 2012, NK July – Dec. 2012, first industry review 31 March, 2013, second draft of CSR-H 1 Apr. – 31 Aug. 2013, second industry review 31 Aug. 2013, third draft of CSR-H 1 Nov. -15 Dec. 2013, approval by TC of IACS 1 Jan. 2014, adoption by IACS 30 June, 2014, submitted to IMO for GBS verification SOLAS

7. 12 34567 Noise Code Code on Noise Levels on Board Ships has been adopted by MSC 91, presumably be effective on or after 1 July 2014. Apply to ships of not less than 1,600 gross tonnage for which the building contract is placed on or after 1 July 2014. SOLAS new buildings cost increased ； noise-control measures ； improve workmanship ； new technology predicting noise levels ； difficulties in Noise level control in some area ； acoustic design for new buildings ； more difficulties in ship delivery Influences

8. 1 234567 Polar Code Main structure of the Polar Code is settled, hopefully completed in 2014 Scope : Safety Structure Stability Fire Protection Life Saving Machinery Water-tight Integrity Environment Protection SOLAS Accommodation Communication Navigation Crew Operation Emergency Control Balance between environment protection and shipping, science research and resource exploitation.

9. 12 234567 E-Navigation Harmonized collection, integration, exchange, presentation and analysis of marine information on board and ashore by electronic means to enhance berth to berth navigation and related services for safety and security at sea and protection of the marine environment. Meeting the present and future needs through harmonization of marine navigation systems and supporting shore services. SOLAS

10. 12 234567 E-Navigation Structure SOLAS

11. 12 234567 Asbestos From 1 January 2011, for all ships, new installation of materials which contain asbestos shall be prohibited. Two key questions ： How to verify? IACS issued UI SC 249 to unify the way of implementation of this SOLAS regulation by ROs, which was approved by MSC 90. Threshold of asbestos 1% or 0.1%,to be decided at MEPC 65. SOLAS

12. 12 234567 Testing watertight boundaries SOLAS requirements (II-1/11) The forepeak, double bottom (including duct keels) and inner skins, and tanks which are intended to hold liquids (which form part of the watertight subdivision of the ship), shall be tested for tightness and structural strength with water to a head corresponding to relevant design pressure. IACS proposal for SOLAS amendment and new guidelines MSC 86/23/13 ((Cook Islands, Marshall Islands, IACS)) DE 56/16 and DE 56/INF.11 (IACS) Supporting papers by China, Japan and Korea (shipyards’ quality systems, e.g. ISO 9001) DE 56 generally agreed with IACS proposal as well as the C/J/K suggestions SOLAS IACS: Refinement of the draft guidelines An industry JWG was established by China, Japan, Korea and IACS, INTERTANKO,INTERCARGO,ICS etc. which developed the draft guidance on verification of the quality management systems on testing tanks and tight boundaries for shipyards AFTER DE56

13. SOLAS BeiDou satellite navigation system Developed by China, first independent Asian satellite navigation system, included in the NAV Sub-Committee work program as a future component of the WWRNS; Trial service since 2011, in stable operation with full operational capability since 2012; Compatible and inter-operatable with other navigation satellite systems, no direct costs imposed on the maritime industry; More choices for shipowners.

14. 123 MARPOL 34 Design and construction requirements for new building-ships ) Operation and management requirements for classed-ships Financial lever control requirements for all ships in future

15. 123 4 MARPOL NO X emission regulationSO X emission regulation

16. 2 4 13 MARPOL Original ECA—SOx  Baltic Sea  North sea Added ECA —NOx 、 SOx  North America

17. 123 4 MARPOL ScrubberExhaust Gas Recycle (EGR)Selective Catalytic Reduction

18. Manila Amendments to the STCW Convention, adopted at Manila Diplomatic Conference 21-25 June 2010, entered into force on 1st January 2012. Strengthened requirements for issuance and registration of certificates; hours of rest/medicine and alcohol control in line with MLC; training; responsibilities of shipping company, etc E-Navigation strategy STCW Convention

19. 1 Adopted in 2009 Entering into force subject to the following: Ratifications by no less than 15 States ； The combined merchant fleets of these States constitute not less than 40% of the gross tonnage of the world’s merchant fleet ； Combined maximum annual ship recycling volume of the States mentioned above during the preceding 10 years constitutes not less than 3% of the gross tonnage of the combined merchange shipping ； Enter into force: twenty-four months after meeting the above- mentioned requirements (expected: around 2016). Hong Kong Convention 23

20. 123 Shipyards: Improve the management and control on supply chain to deal with the potential legal and economic risks. To prevent risks such as claim and ship abandonment caused by installation of unqualified products onboard. Existing ships and ships in service: IHM shall be developed by ship owner and updated throughout the service of the ship. Ships to be recycled: Hazardous Materials shall be appropriately recycled and environmentally soundly dealt with by the authorized recycling facilities as per the requirements of the Convention and IHM. Hong Kong Convention

21. 123 ACS activities ACS Working Group on Recycling (ACS WG/Recycling) are dealing with issues of Hong Kong Convention. In order to assist the industry to develop the IHM smoothly, ACS members developed their own software individually, i.e Green Chain, SeaTrust-IHM and PrimeShip-GREEN/SRM. ACS common electronic data format (i.e. MD and SDoC) for exchange through different software will be finalized soon. ACS WG/Recycling participates in the ASEF’s works in terms of IHM CG Common Manual and provides valuable comments, with a view to assisting shipyards, ship owners to implement Hong Kong Convention effectively. Hong Kong Convention

22. 123 Regional requirements ：  Paris MOU has released guidance for asbestos inspection in 2011 and included asbestos containing material into its deficiency codes;  Draft EU Regulation on Ship Recycling, expected to enter into force in the end of 2014: IHM shall be established and kept available on board for all new ships calling at EU ports and anchorages irrespective of the flag; similar requirements are applied to all existing ships within the specified timetable

23. 123 Hong Kong Convention Regional requirements  Draft EU Regulation on Ship Recycling: SRP should be mandatory for all ships older than 20 years; The ship owner would have to pay the extra costs if the content of hazardous materials is significantly higher than indicated in the IHM; When inspection reveals that the condition of the ship or its equipment does not correspond substantially to IHM certificate or IHM, a more detailed inspection shall be carried out…

24. 1 The condition for entry-into-force of BWM ： 30 States; 35% of the gross tonnage of the world’s merchant shipping; Effective twelve months after the condition is met. Status as of 31 January 2013 ： 36 States ， 29.07% of the gross tonnage of the world’s merchant shipping. The condition for entry-into-force is about to be met with a few major flag States signing in. BWM 23

25. 123 Major problems: Very small percentage of world fleet has installed the BWMS onboard; No transition period for ships of certain category; The uncertainty of the sampling and analysis method on BWMS used during port State inspection discourages ship owners from early installation before the entry into force of BWM Convention; Whilst the uncertainty of entry into force of the BWM Convention still remains, an early installation of BWMS will mean additional cost and relatively lower function; Alternative methods of ballast water treatment are also under development. BWM

26. 123  According to the retroactive requirements stipulated in BWM Convention, Ballast Water Management Certificates should be issued after its entry into force for applicable ships. Ship owners are suggested to consider installation of BWMS and application for survey and certification.  US 33 CFR part 151 - "Standards for Living Organisms in Ships' Ballast Water Discharged in U.S. Waters": The effective date was June 21, 2012, it applied to non- recreational international ships (including U.S. and foreign flag) equipped with ballast tanks and operating in U.S. waters.

27. Load Line Convention, etc No major amendments to the LLC recently 2nd generation intact stability criteria SLF is developing the 2nd generation intact stability criteria. There are new stability failure modes i.e. pure loss of stability, parametric roll, surf- riding/Broaching, excessive acceleration and dead ship. Mandatory fitting of stability instrument on all oil tanker IMO is developing new requirements which enter in force on 1 July 2016 under MARPOL 、 IBC 、 BCH 、 EGC 、 GC and IGC.

28. III. International maritime regulatory regime

29. Shipping Shipbuilding Class Society/ROs Flag State, Class Society/ROs PSC, EU, USCG, P&I, Vetting System Administration, Class Society/ROs Quality, Safety, SCF, Bank Flag State Flag State, QACE, ACB, Ro Code, PSC IMO, ILO, III Code, PSC

30. Technology is the driving force. Production process optimization. Process management, high-quality ships. Pursuit of excellence Research and development, Innovation of science and technology. New generation ship type development, meeting the market. The highest practical standard. Balance approach between regulation and overregulation. Regulation and self-regulation Compliance based culture and safety culture Technology IV. Conclusions Quality Safety Sustainability

31. Stronger Asian voice and influence on the development of international maritime conventions and rules Sustainable development of world shipping and shipbuilding industry

32. Thank you.