1. Maritime Security in the Straits of Malacca and Singapore – Industry’s views John C. Fawcett-Ellis General Counsel, INTERTANKO MILOPS 2006, 17-19 July - Bangkok

2. Presentation Outline  INTERTANKO  The Round Table of International Shipping Associations  Shipping patterns in SE Asia  Maritime Security in context  JWC – listing of the Straits  The response - i) political; ii) operational, iii) industry’s, iv) a tanker operator’s  ReCAAP  IDSS report  The role of the media  Summary of industry’s views

3. - representing responsible oil and chemical tanker owners worldwide - promoting Safer Ships, Cleaner Seas and Free Competition

4. -strict membership criteria based on quality and performance

5. The Role of INTERTANKO Champion/promote responsible tanker operators Champion/promote responsible tanker operators Participate actively in the IMO to ensure good international regulations for the industry Participate actively in the IMO to ensure good international regulations for the industry Forum for tanker operators to meet to exchange views on current issues Forum for tanker operators to meet to exchange views on current issues Provide first class advice and services to the membership Provide first class advice and services to the membership

6. The strength of INTERTANKO 252 members – operating some 2,500 tankers (80% of the world’s independant tanker fleet) 252 members – operating some 2,500 tankers (80% of the world’s independant tanker fleet) 300 associate members 300 associate members Chairman – Mr Stephen Van Dyck Chairman – Mr Stephen Van Dyck 28 staff lead by MD – Dr Peter Swift 28 staff lead by MD – Dr Peter Swift Offices in Oslo (oslo@intertanko.com), London (london@intertanko.com), Singapore (singapore@intertanko.com) and Washington DC (washington@intertanko.com) Offices in Oslo (oslo@intertanko.com), London (london@intertanko.com), Singapore (singapore@intertanko.com) and Washington DC (washington@intertanko.com)oslo@intertanko.comlondon@intertanko.comsingapore@intertanko.comwashington@intertanko.comoslo@intertanko.comlondon@intertanko.comsingapore@intertanko.comwashington@intertanko.com 14 committees 14 committees 4 regional panels 4 regional panels

7. The Round Table of International Shipping Associations BIMCO BIMCO International Chamber of Shipping International Chamber of Shipping INTERCARGO INTERCARGO INTERTANKO INTERTANKO Vision - “A responsible and respected international shipping industry meeting the expectations of its stakeholders.”

9. Shipping patters in SE Asia

10. Shipping Patterns – through traffic For example: larger tankers and cargo carriers, including container vessels, larger bulk carriers, ro-ro ships, passenger ships and vehicle carriers. For example: larger tankers and cargo carriers, including container vessels, larger bulk carriers, ro-ro ships, passenger ships and vehicle carriers. Ships transiting between the Indian and Pacific Oceans Ships transiting between the Indian and Pacific Oceans

11. Shipping patterns - local traffic: Ships on local voyages Ships on local voyages e.g. between ports in Indonesia, Malaysia, Philippines, Thailand, Vietnam or Singapore. e.g. between ports in Indonesia, Malaysia, Philippines, Thailand, Vietnam or Singapore. For example: smaller product and chemical tankers (under 20,000 GRT), gas carriers, container ships (“feeder” vessels), tugs and barges, and general cargo ships. For example: smaller product and chemical tankers (under 20,000 GRT), gas carriers, container ships (“feeder” vessels), tugs and barges, and general cargo ships.

12. Other traffic: Other vessels using the Straits, including fishing vessels, yachts, oil rig tenders, scientific research ships, dredgers, etc.

14. Maritime Security in context Security/safety in the sense of Navigation Navigation Crews Crews Vessels Vessels Ports and terminals Ports and terminals The environment The environment Without compromising efficiency (i.e. recognising the essential role that shipping plays in world trade)

15. Incidents of piracy / armed robbery / maritime terrorism

16. Which vessel?

17. High Profile Maritime Attacks 1974- Hijacking of a Greek freighter in Karachi (Pakistan) 1974- Hijacking of a Greek freighter in Karachi (Pakistan) 1985- Seizure of the Achille Lauro 1985- Seizure of the Achille Lauro February 2000- Bombing of a Philippine ferry (45 killed) February 2000- Bombing of a Philippine ferry (45 killed) October 2000- Suicide attack against USS Cole (17 Killed) October 2000- Suicide attack against USS Cole (17 Killed) October 2000: LLTE Suicide attack against SL navy October 2000: LLTE Suicide attack against SL navy October 2002- French Tanker Limburg – off Yemen (1 killed) October 2002- French Tanker Limburg – off Yemen (1 killed) February 2004- Superferry 14 February 2004- Superferry 14

18. Table 1 - Piracy in Southeast Asia – Actual and Attempted Attacks 1999-2005 Location1999200020012002200320042005Total SE ASIA Cambodia/Viet nam 268121541057 Indonesia115119911031219479722 Malacca Straits 2751718283812190 Malaysia1821191459389 Philippines69810124049 Singapore Straits 1457528748 Thailand588524133 South China Sea 394028632 TOTAL1652521621671871691181220

19. Location of Attacks 2000-2005

20. Analysis of Attacks Mainly in and around ports and anchorages.Mainly in and around ports and anchorages. Mainly on ships on local voyages.Mainly on ships on local voyages. Mainly on smaller shipsMainly on smaller ships –Fishing vessels –Tugs and barges –Smaller cargo vessels e.g. product tankers Hijacking and kidnapping for ransom Hijacking and kidnapping for ransom

21. Typical Vessels Attacked 640 GRT product tanker Cherry 201 attacked off Belawan in Feb 2004 – crew members kidnapped for ransom and 4 murdered. 640 GRT product tanker Cherry 201 attacked off Belawan in Feb 2004 – crew members kidnapped for ransom and 4 murdered. Small Japanese tug Idaten boarded by pirates in March 2005. 3 crew members taken hostage but later released. Small Japanese tug Idaten boarded by pirates in March 2005. 3 crew members taken hostage but later released.

22. Maritime security in the Straits Distinguish between the different types of threats: Pure terrorist activity? Pure terrorist activity? Piratical attacks / armed robbery on vessels in transit Piratical attacks / armed robbery on vessels in transit Piractical attacks / armed robbery on vessels at anchor or in port Piractical attacks / armed robbery on vessels at anchor or in port

23. June 2005 - Joint War Committee of the London market reacts - Straits of Malacca and Singapore listed as area of ”perceived enhanced risk” upon recomendation of the consultants Aegis Defence Services - Listing reviewed quarterly + current situation monitored Why? Reaction or persuasion?

24. Industry’s reaction to the JWC Call for better dialogue with stakeholders Call for better dialogue with stakeholders Consultation with local interests Consultation with local interests Decision should be based on threat assessment rather than vulnerability assessment Decision should be based on threat assessment rather than vulnerability assessment

25. The Political Response Shangri-La Dialogue Shangri-La Dialogue Batam Joint Statement of the Tripartite Ministerial Meeting – Aug 05 Batam Joint Statement of the Tripartite Ministerial Meeting – Aug 05 Jakarta Statement on Safety, Security & Environmental Protection in Malacca & Singapore Straits – Sept 05 Jakarta Statement on Safety, Security & Environmental Protection in Malacca & Singapore Straits – Sept 05 Regional Cooperation Agreement on Anti-Piracy (ReCAAP) Regional Cooperation Agreement on Anti-Piracy (ReCAAP)

26. The Role of the IMO – a welcome facilitator Joint IMO & Indonesian Government meeting in Jakarta in Sept 05 Joint IMO & Indonesian Government meeting in Jakarta in Sept 05 Joint IMO & Malaysian Government meeting in KL in Sept 06 Joint IMO & Malaysian Government meeting in KL in Sept 06

27. The Operational Response Trilateral Coordinated Patrols Trilateral Coordinated Patrols “Eyes in the Sky” “Eyes in the Sky” Joint exercises Joint exercises Malaysian maritime enforcement agency is set up Malaysian maritime enforcement agency is set up Singapore mandates transponders on all small craft Singapore mandates transponders on all small craft

28. The private sector also steps in – is this desireable?

29. ReCAAP (due to enter into force 4 Sept 2006)– the positives Now ratified by 11 out of the 16 States - Cambodia, Japan, Laos, Singapore, Thailand, the Philippines, Myanmar, South Korea, Vietnam, India and Sri Lanka have all ratified the agreement, while Brunei is in the process of ratification. Now ratified by 11 out of the 16 States - Cambodia, Japan, Laos, Singapore, Thailand, the Philippines, Myanmar, South Korea, Vietnam, India and Sri Lanka have all ratified the agreement, while Brunei is in the process of ratification. Good example of further cooperation amongst states in the region Good example of further cooperation amongst states in the region Information Sharing Centre – aims to ”manage and maintain the expeditious flow of information relating to incidents of piracy and armed robbery against ships among the contracting parties.” Information Sharing Centre – aims to ”manage and maintain the expeditious flow of information relating to incidents of piracy and armed robbery against ships among the contracting parties.”

30. ReCAAP (cont) Alerts – ”To provide an appropriate alert whenever possible to contracting parties if there is reasonable ground to believe that a threat of incidents... is imminent” Alerts – ”To provide an appropriate alert whenever possible to contracting parties if there is reasonable ground to believe that a threat of incidents... is imminent” Request for cooperation – ”a contracting party may request any other contracting party, through the centre or directly, to cooperate in detecting... pirates, persons who have committed armed robbery against ships, ships...used for committing piracy or armed robbery...” Request for cooperation – ”a contracting party may request any other contracting party, through the centre or directly, to cooperate in detecting... pirates, persons who have committed armed robbery against ships, ships...used for committing piracy or armed robbery...”

31. ReCAAP (cont) Extradition – contracting parties shall endeavour to extradite pirates or persons who have committeed armed robbery against ships to the party who has jurisdiction over them Extradition – contracting parties shall endeavour to extradite pirates or persons who have committeed armed robbery against ships to the party who has jurisdiction over them Capacity building assistance Capacity building assistance Joint exercises Joint exercises Encourage ship operators to take protective measures taking into account relevant international standards Encourage ship operators to take protective measures taking into account relevant international standards

32. May 2006 - Singapore’s Institute for Defence and Stategic Studies publishes report – ”Safety and Security in the Straits of Malacca and Singapore”

33. IDSS recommendations in the areas of: Institutional Arrangements and Capacity Building Institutional Arrangements and Capacity Building Risk Assessment and Reduction Risk Assessment and Reduction Regime Building Regime Building Operational Cooperation Operational Cooperation

34. Basic Recommendations: 1. Adopt a comprehensive approach to maritime security, safety and environmental protection in the Malacca and Singapore Straits. 2. Establish an inclusive approach to maritime security, safety and environmental protection in the Malacca and Singapore Straits that recognises the interests of all stakeholders. 3. Strengthen the IMO-sponsored meeting process to provide a regular forum for dialogue between stakeholders on security, safety and environmental protection arrangements in the Straits.

35. Industry’s response ISPS Code compliance ISPS Code compliance ICS anti-piracy guidelines followed ICS anti-piracy guidelines followed Support for littorals states to increase cooperation and coordination of security efforts Support for littorals states to increase cooperation and coordination of security efforts Support for amendment to SOLAS re Long Range Identification and Tracking (LRIT) Support for amendment to SOLAS re Long Range Identification and Tracking (LRIT) Support for Marine Electronic Highway (MEH) project Support for Marine Electronic Highway (MEH) project

36. An INTERTANKO member’s response: 1. Vsl are advised to comply with the security level as per the flag state in accordance with the ISPS Code (currently level 1). 2. Briefing of crew/officers to discuss watch rotation. 3. Additional watches/patrols on deck, fire hoses rigged/poop deck lights on. 2. All accommodation doors latched from inside. Only access is from bridge wing doors. 3. All crew on watches are equipped with “walkie talkies” and regularly report to bridge. 4. Anti-piracy radar if fitted is used. 5. All stores are locked. 6. Engine room to be manned as required. Plus – regular training of crew for anti-piracy measures, scenarios including dealing with boardings

37. Media frenzy – ”a good story” Lloyd’s List front page 5 July 06

38. BBC – 6 July 2006 - Forget Johnny Depp and cutlasses. Pirates today carry AK-47s and use speed boats to plunder gas tankers and aid ships - with six attacks this week alone.

39. And back in March 2004:

40. Summary of Industry’s views 1. Initiatives and practical measures to ensure safety and security in the Straits must continue 2. Littoral States should be encouraged to continue with their cooperation 3. Encourage remaining 5 states to ratify ReCAAP 4. Support the recommendations in the IDSS report 5. Ship operators must remain vigilant 6. Ports should increase their vigilance 7. Get the message accross that attacks on vessels in transit are not to be tolerated 8. Prosecute those responsible 9. Support the fitting of transponders to small craft to ensure positive identification 10. Encourage the media to react proportionately to incidents

41. Thank you www.intertanko.com www.shippingfacts.com