1. If it’s not safe, don’t do it that way Engagement of Marine Surveyors Meeting with Vessel Agents

2. If it’s not safe, don’t do it that way 2 Context  PWCS has had several recent occurrences of vessels being overloaded or near over loadings.  As an interim measure PWCS has engaged Marine Surveyors since June 2008 to attend vessels at the interim draught survey stage to reduce the risk of the vessel being overloaded.  In addition some vessel owners/charterers also engage a Marine Surveyor to attend the vessel from interim draught survey stage to completion of loading the vessel. This means at time two Marine Surveyors have attended the vessel.  PWCS has been considering and consulting with coal exporters and the industry regarding a long term solution since. Three options have been considered: PWCS engaging the Marine Surveyors, coal exporters engaging the Marine Surveyors, or requiring the vessels to engage the Marine Surveyors.

3. If it’s not safe, don’t do it that way 3 Solution  The longer term solution is to require vessels, at their cost, to engage a Marine Surveyor to attend the loading of each vessel. The Marine Surveyor will be required to attend from the commencement of the loading pass performed immediately prior to the interim draught survey through to the completion of loading of the vessel.  The key benefits are: 1) Risk mitigation against overloading (or under loading). 2) Marine Surveyor is independent of PWCS. 3) Shorter and more reliable interim survey delays and trimming times and therefore completion times. 4) Potential for more tonnes to be loaded = $$$.

4. If it’s not safe, don’t do it that way 4 Solution  This requirement will be included in the Coal Terminals Information Handbook (CTIH) and enforced via vessel suitability provisions in the Coal Handling Services Agreement (CHSA).  Whilst the onus will be on the vessel to engage the Marine Surveyor, PWCS will enforce this requirement via the CHSA with the Customer.  PWCS’ Coal Loading Plan will include a mandatory section for notification of the Marine Surveyor to carry out the interim draught survey. PWCS will confirm the appointment of the Marine Surveyor before granting permission for the vessel to berth.  Failure to appoint a Marine Surveyor will affect the vessels suitability to load at the Terminals and PWCS has the ability to change the order of loading of the vessel for the failure to submit a valid Coal Loading Plan.

5. If it’s not safe, don’t do it that way 5 Proposed Amendments to CTIH The proposed wording is as follows:

6. If it’s not safe, don’t do it that way 6 Proposed Amendments to CTIH