1. INTERTANKO Maritime Security – The Tanker Industry’s Concerns Presented by John C. Fawcett-Ellis Legal Counsel & Regional Manager Asia-Pacific Kuala Lumpur, 30 June 2004

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

3. -strict membership criteria based on quality and performance

4. The International Association of Independent Tanker Owners INTERTANKO today 240 Members 240 Members 2,200 tankers 2,200 tankers 160 million dwt 160 million dwt Average age: 13.5 years Average age: 13.5 years 270 Associate Members 270 Associate Members 27 Staff / 6 Consultants 27 Staff / 6 Consultants OsloLondonSingaporeWashington

5. INTERTANKO in Asia - Pacific Membership - Australia – Botany Bay Shipping Group - China – Hebei Ocean Shipping Co, Cosco Dalian (Ass. Member), China Shipping, Nanjing Tanker Corporation & Sinochem Shipping - Hong Kong – Anglo-Eastern, Associated Maritime, Eurasia, Fairmont, HK Ming Wah, Parakou, TCC, Unique, Wah Kwong & Wallem - Japan – Daiichi Chuo, Daitoh Trading, Iino Lines, Kawasaki Line, Kyoei Tanker, Meiji Shipping, Mitsui OSK, Tokyo Marine, NYK, Nissho, Shinwa, Taiheiyo, Yuyo - Malaysia – MISC, Aurora, Sutrajaya, Barber Shipmanagement - Singapore – NAS, Petroships, PCL, Thome, TESMA, World Tankers, - South Korea – SK Shipping, Hanjin (Ass Member)

6. The Tanker Industry’s Concerns: Safety/Security of our crews Safety/Security of our crews Safety/Security of our vessels Safety/Security of our vessels The ability to provide an efficient transportation solution to our customers The ability to provide an efficient transportation solution to our customers

7. The Regulator’s Concerns: Crew on board are a potential security threat Crew on board are a potential security threat The vessel is a potential security threat The vessel is a potential security threat The cargo is dangerous The cargo is dangerous

8. The Reality: NO attacks from any crew to date NO attacks from any crew to date NO attacks from any commercial vessel NO attacks from any commercial vessel 1 major attack against a tanker 1 major attack against a tanker Numerous attacks by pirates or robbers against our crews and vessels Numerous attacks by pirates or robbers against our crews and vessels Our crews are not welcome ashore Our crews are not welcome ashore World wide terrorism is on the increase – ”expect the unexpected” World wide terrorism is on the increase – ”expect the unexpected” Questionable whether tankers are the vessel type which presents the greatest security risk – query whether the Limburg attack achieved its objectives Questionable whether tankers are the vessel type which presents the greatest security risk – query whether the Limburg attack achieved its objectives

9. ISPS The responsible tanker operating community has risen to the challenge to comply, but some are let down by flag state administrations The responsible tanker operating community has risen to the challenge to comply, but some are let down by flag state administrations The majority of port facilities will fail to meet the 1 July deadline The majority of port facilities will fail to meet the 1 July deadline Are our crews and vessels any safer as a result? Are our crews and vessels any safer as a result?

10. Security in the Straits: Petty theft from vessels at anchor on the increase Petty theft from vessels at anchor on the increase Highjackings of vessels on the increase Highjackings of vessels on the increase 61 attacks against vessels whilst under passage in SE Asia (9 in the Malacca Straits) 61 attacks against vessels whilst under passage in SE Asia (9 in the Malacca Straits) Will vessels be the next modus operandi of the terrorists? Will vessels be the next modus operandi of the terrorists?

11. Where are we today? Is a cross boarder pursuit possible – NO Is a cross boarder pursuit possible – NO Joint excercises – YES Joint excercises – YES Joint patrols – Yes Joint patrols – Yes Shared intelligence – YES Shared intelligence – YES Inreased patrols – NO Inreased patrols – NO Any focus on the route cause of the problem, viz. disabling pirates ashore? - No Any focus on the route cause of the problem, viz. disabling pirates ashore? - No

12. The Political Agenda – Good News Over the last 6 months – shift from anti-piracy to securing safe navigation of the Straits and safeguarding the integrity of the region Over the last 6 months – shift from anti-piracy to securing safe navigation of the Straits and safeguarding the integrity of the region This issue is moving up the political agenda This issue is moving up the political agenda Indonesia, Malaysia & Singapore agree to joint patrols Indonesia, Malaysia & Singapore agree to joint patrols

13. The Key Distinction Between: 1. Attacks on vessels underway which are totally unacceptable and are the most alarming; and 2. Attacks on vessels at anchor or within a port

19. What should be done? Action not just talk Action not just talk More patrols More patrols Make cross boarder pursuit a reality Make cross boarder pursuit a reality Increased cooperation Increased cooperation The industry is willing to engage The industry is willing to engage If regional resources are not sufficient then seek to cooperate with others If regional resources are not sufficient then seek to cooperate with others

20. What else? Need to reduce the number of small craft that are not enaged in legitimate activities Need to reduce the number of small craft that are not enaged in legitimate activities Transponders mandatory on all small craft Transponders mandatory on all small craft Police need to weed out the rogues ashore Police need to weed out the rogues ashore Need to regain the initiative – show of force/strength Need to regain the initiative – show of force/strength Strong cooperation between security forces Strong cooperation between security forces Perhaps the use of helicopters to pursue/deter Perhaps the use of helicopters to pursue/deter

21. Conclusion / Action Points: 1. SUA Convention and Draft Protocol – need for focussed discussion on this important convention 2. Focussed dialogue between the littoral states and industry to tackle the route causes of the piracy ashore 3. Concerned effort / crack down to stamp out the boarding of vessels transiting the Straits

22. THANK YOU www.intertanko.com