1. ISPS CODE UPDATE INTERTANKO North American Panel Meeting Stamford, CT March 22, 2004 Brad L. Berman, President Liberian International Ship and Corporate Registry

2. BY 1 JULY 2004 THE ISPS CODE REQURIES THAT: Company Security Officers be designated. Company Security Officers be designated. Company Security Officers be trained. Company Security Officers be trained. Ship vulnerability assessments to be completed. Ship vulnerability assessments to be completed. Approved Security plan for each vessel. Approved Security plan for each vessel. Ship Security Officers selected and trained. Ship Security Officers selected and trained. The crew to be trained in their duties. The crew to be trained in their duties. Ship’s Approved Security plan to be implemented. Ship’s Approved Security plan to be implemented. Ships successfully complete ISPS Verification Audit and receive ISPS Certificate. Ships successfully complete ISPS Verification Audit and receive ISPS Certificate. Continuous Synopsis record be on board and maintained. Continuous Synopsis record be on board and maintained.

3. New Duties for Flag States: Develop National requirements for ISPS compliance. Develop National requirements for ISPS compliance. Approve Security Plans. Approve Security Plans. Audit Security Plan implementation and Certification. Audit Security Plan implementation and Certification. Oversight of RSOs. Oversight of RSOs. Setting and communicating security levels to ships. Setting and communicating security levels to ships.

4. ISPS Code Implementation by Liberia As Of 15 March 2004 Security Plans Received: 1034/1483 = 68% Security Plans Received: 1034/1483 = 68% Security Plans Approved: 650/1483 = 44% Security Plans Approved: 650/1483 = 44% Audits completed by Liberia: 63/702 = 9% Audits completed by Liberia: 63/702 = 9% Audits completed by RSOs: 1 GL & 1 ABS Audits completed by RSOs: 1 GL & 1 ABS =0.3% –Designated RSOs: ABS, BV, CCS, DNV, GL, LRS & NKK

5. ISPS Code Current Issues Continuous Synopsis Records Continuous Synopsis Records –Marine Notice ISP-002 describes requirements Flag State - Port State Issues Flag State - Port State Issues –Liberia-Germany Mutual Acceptance –Liberia - USA PSI Agreement –Setting Alert Levels Current Experiences Current Experiences –SSP Implementation –Security Alert Systems

6. TOP 5 DEFICENCIES ON SECURITY PLANS Retention of security records not specified. Retention of security records not specified. Lack of specificity concerning security searches during elevated security levels (example: 1 out of 10 people searched at security level 1, and 1 out of 5 at security level 2). Lack of specificity concerning security searches during elevated security levels (example: 1 out of 10 people searched at security level 1, and 1 out of 5 at security level 2). Ship Security Officer not clearly identified. Ship Security Officer not clearly identified. Vessel access points, lighting, and restricted areas not identified on General Arrangement Plan Vessel access points, lighting, and restricted areas not identified on General Arrangement Plan Assessor qualifications missing from the Ship Security Assessment. Assessor qualifications missing from the Ship Security Assessment.

7. TOP 5 DEFICENCIES AT SECURITY VERIFICATIONS TOP 5 DEFICENCIES AT SECURITY VERIFICATIONS Restricted areas - Not properly marked or restricted areas not properly secured. Restricted areas - Not properly marked or restricted areas not properly secured. Training - Lack of record keeping regarding the frequency of drills and training by SSO. Training - Lack of record keeping regarding the frequency of drills and training by SSO. Records - Failure to keep an accurate security log. Records - Failure to keep an accurate security log. Access control – Inadequate identification control at respective security levels. Access control – Inadequate identification control at respective security levels. Security equipment – Insufficient inventory or maintenance of security equipment. Security equipment – Insufficient inventory or maintenance of security equipment.