1. Council meeting in London September 2003

2. A few reflections on the future… Lars Carlsson, Chairman of Intertanko

3. Safe Transport Cleaner Seas Free Competition INTERTANKO International Association of Independent Tanker Owners Working for

4. Tanker Safety – a Success Story Tanker Incidents 0 100 200 300 400 500 600 700 800 197819801982198419861988199019921994199619982000 Miscellanous Fire, explosion Contact Wrecked/stranded Collision Hull, machinery Source: LMIS

5. Age Profile of Tanker Fleet

6. Double-Hull Transition Smooth Through 2009

7. VLCC Spot Earnings, AG/East

8. Zero Tolerance for pollution and accidents The world community

9. Preference for quality and performance! How about payment?

10. Marketing of superior ships If you build, manage and maintain a superior ship operation – how do you get paid for the extra investment?

11. Marketing Quality Ships What are the targets for Oil Co. departments? Chartering dept- lowest freight costs Vetting dept- Basic safety PR dept- Nice values Oil trading- Lowest CIF price Top management- Long term growth - Shareholder value - Image of Oil Co. - Bonus - social status

12. Potential ADDITIONAL earnings from: Basic earning capacity16.000/d Oil Co. Departments: Chartering/Trading (cargo) 5.000/d Vetting 0 PR 0 Top management 3.000/d Potential earnings/day24.000/d Additional earnings/yearMUSD 12 Earnings improvement50%!!!

13. Is 50% higher earnings per year worth fighting for??? YES!!!!!!

14. Efficient marketing towards: Chartering Dept Trading Dept PR Dept Vetting Dept But don’t forget the top boys in the oil companies for they have the most to loose in accidents!!!

15. March 29 2001 - Collision Baltic Carrier & Tern ”New ship – No guarantee”

16. Addressing the value of safety What accidents occur? What are the most common categories and causes? What can be done to control risk? How effective are the measures? What can be attributed to twin skeg? What is the cost of accidents? What is the potential benefit?

17. Selection and training of competent crews

18. Crews who can handle tough days!!!

19. Tanker casualties … 1993-2002 Total 3,360 incidents 49% 13% 10% 25% Source: LMIS Database

20. … and how these could be prevented or mitigated Integrated bridge control system Improved manoeuvrability Bridge Resource Management training High coating standard Preventive maintenance Redundant and separate critical systems Effective Fire extinguishing systems Redundant and separate propulsion and steering systems 1993-2002 Total 3,360 incidents Source: LMIS Database

21. ”Oil should always travel First Class…” …leaving only footprints of redundancy