1. VANCOUVER, CANADA SEPTEMBER 23, 2010 INTERTANKO and TANKER SAFETY JOSEPH ANGELO DEPUTY MANAGING DIRECTOR

2. OVERVIEW INTERTANKO International regime for tanker safety Tanker statistics Risk management

3. INTERTANKO INTERNATIONAL ASSOCIATION OF INDEPENDENT TANKER OWNERS Non-profit organization Established in 1970 Voice of the independent tanker owners

4. INTERTANKO MISSION Provide Leadership to the Tanker Industry in serving the World with the SAFE, ENVIRONMENTALLY SOUND AND EFFICIENT seaborne transportation of oil, gas and chemical products

5. INTERTANKO PRIMARY GOAL Lead the CONTINUOUS IMPROVEMENT of the Tanker Industry’s Performance in striving to achieve the Goals of: Zero Fatalities Zero Pollution Zero Detentions

6. MEMBERSHIP MEMBERSHIP is open to independent tanker owners and operators of oil and chemical tankers (i.e. non-oil companies and non-state controlled tanker owners) who meet the membership criteria. ASSOCIATE MEMBERSHIP is available to any entity with an interest in the shipping of oil and chemicals.

7. MEMBERSHIP 250+ Members 3,000+ Tankers 260+ Million DWT Members in 40+ countries MORE THAN 75 % OF THE INDEPENDENT TANKER FLEET 320+ Associate Members

8. MEMBERSHIP Members/million dwtNo. of tankers

9. SECRETARIAT 24 STAFF MEMBERS IN 4 OFFICES Oslo (12), London (10), Singapore (1) USA (1) + Brussels, Manila (consultant) STAFF INCLUDES - Managing Director - Technical Director - Director, Regulatory Affairs - Marine and Chemical Director - General Counsel

10. Q-Quest Sub- Committee Management Committee Shipowner Issues Sub-Committee Governance Structure 15 Committees 5 Regional Panels

11. MAIN ENVIRONMENTAL ISSUES Air emissions - Green House Gases - Exhaust Gas emissions (Annex VI & its revisions) - VOC emissions Spill Prevention and Response Planning Ballast Water management Biofouling Antifouling systems Ship Recycling Port Reception Facilities (adequacy & affordability) Waste management (onboard and ashore) Radiated Noise pollution Cetacean strikes

12. INTERNATIONAL REGIME International shipping is regulated by the International Maritime Organization (IMO), a specialized agency of the United Nations IMO’s main objective is to facilitate cooperation among governments on technical and legal matters affecting international shipping to achieve the highest level of international standards for maritime safety, maritime security and protection of the marine environment This is accomplished through the development of international conventions, codes, and recommendations.

13. INTERNATIONAL REGIME Safety of Life at Sea (SOLAS) Prevention of Pollution (MARPOL) Standards for Training and Watchkeeping (STCW) Preventing Collisions at Sea (COLREGs) Loadlines Oil Pollution Response (OPRC) Ballast Water Management Recycling of Ships

14. SOLAS CONVENTION Design and construction Subdivision and stability Machinery and electrical Fire detection and prevention Lifesaving Radiocommunications Safety of navigation Safety Management Security

15. MARPOL CONVENTION Six mandatory Annexes - Oil - Chemicals - Packaged goods - Sewage - Garbage - Air emissions

16. MARPOL CONVENTION Annex 1 - Tanker requirements Double hulls Damage stability Tank size limitations Limitations on operational discharges - From cargo tank area - From machinery spaces Monitoring equipment Emergency response planning

17. Investment in New Tonnage - Move to Double Hulls More than USD 500 billion invested since 2000 with the result that ~95% of tanker fleet* double hulled by end 2010 * over 10,000 dwt

18. Average age tanker fleet above 10,000 dwt Based on LRFairplay Years

19. Tanker Incidents and accidental pollution Number incidents Source: INTERTANKO, based on data from LMIU, ITOPF and others ‘0000 ts pollution

20. Tanker incidents 2009 Rate is number incidents divided by number tankers in the segment Worst incident 2009 may be collision/fire Formosa Brick collision in the Straits of Singapore Aug 2009 9 fatalities and Elli that broke in to two at the entrance Suez Canal.

21. Tanker hull & machinery incidents Number incidents Based on data from LMIU, ITOPF + others

22. Tanker hull & machinery incidents Number incidents Based on data from LMIU, ITOPF + others Year<10 years10-24 years>25 yearsTotal Average age 200243152217.5 20033381418.4 20042271118.0 200595203417.6 2006123173214.3 2007203254813.2 20082510245915.6 2009813225316.7 2010*6351417.5 Total894514328715.6 2010 figures are for 110 days

23. Accidental oil pollution into the sea spills per tonne-miles 1970-2009 Source: INTERTANKO/ITOPF 1000 ts spilt per bn tonne miles Record low 2008 and gain - record low 2009

24. Accidental oil pollution into the sea and tanker trade Source: INTERTANKO/ITOPF/Fearnleys 1000 ts spilt bntonne-miles Record low accidental pollution from tanker in 2008 and in 2009

25. Incidents attended by ITOPF over the past 5 years Most oil spills come from bunkers and other shiptypes than tankers Number of incidents Source: International Tankers Owners Pollution Fund (ITOPF)

26. Estimated total average annual U.S. Oil Spillage Based on data from USCG bbls Storage and consumption include: Non-Tank Vessels (Cargo Ships) (2%), Other vessels (5%), Gas stations and Truck stops, Residential, Aircraft, Inland EPA-Regulated facilities (77%), Coastal facilities (Non-Refining), Inland unknown, Motor vehicles, Others Transport includes: Inland pipelines (80%), Tanker trucks (10%), Railroads (2%), Tank ships (4%), Tank barges (percentages are percentages for the period 1998-2007 for the particular segment. (Percentages in graph is the tank ships percentage of total spillage for he period). Pollution from tankers in the US have been strongly reduced both in absolute terms and as a percentage of total spillage in each period

27. “WALK THE TALK” Proactive approach Distillate fuels – proposed that IMO require all ships to switch from residual fuels to distillate fuels TOTS – developed Tanker Officer Training System to augment existing mandatory requirements Targets for GHG emissions – first to propose the IMO set Greenhouse Gas emission targets for shipping

28. Risk Management Involves: Identifying and understanding risks Mitigating or eliminating risks, where possible Avoiding unacceptable risks Balancing risk & reward to arrive at the best decision for all involved Goals: To protect people, the environment and property To avoid a catastrophic incident To prevent disruptions to commerce and trade To improve quality of available tonnage

29. Risk Management IMO provides robust requirements for tanker design, construction, equipment, machinery, tank size, damage stability, operational requirements and crew training Opportunities exist for certain navigational matters

30. IMO Ships Routing IMO Ships’ Routing Publication Traffic separation schemes Deepwater routes Areas to be avoided Other routing measures –Two way routes (Strait of Juan de Fuca) –Directions of traffic flow –Navigation around the coast Mandatory ship reporting Mandatory routing systems Mandatory no anchoring areas

31. Concluding Remarks INTERTANKO is a highly respected, responsible association with tanker safety as its highest priority IMO comprehensively regulates tanker safety through mandatory requirements Statistics clearly show a distinct improvement in tanker safety Risk Management analysis is the best way forward to address local/regional issues or concerns

32. THANKYOU!