Approach to regulation in the oil tanker sector

1
Approach to regulation in the oil tanker sector

• Athens Tanker Event
• 10-13 April 2005

2
EU Maritime Safety Policy

• Part I The recent past
• Part II The agenda of the new Commission
• Part III Improving the industrys image

3
Overarching Tenets

• Safe, secure and efficient shipping on clean
  oceans full support to IMO efforts
• Effective implementation and enforcement of
  existing rules by all concerned parties
• Preference for international regulation wherever
  possible
• Use of EC Law instruments to ensure effective
  compliance with basic safety standards
• Promotion of EU re-flagging positive approach
  to incentives for the EU shipping sector (State
  aid guidelines)

4
The recent past

• Maritime safety has dominated the agenda of the
  EU priorities over the recent years
• The losses of the Erika (Brittany, 2000) and the
  Prestige (Galicia, 2002) created wide social
  alarm and affected negatively the image of the
  shipping sector
• The state of affairs in the shipping sector was
  considered as serious as to require discussion at
  the level of the EU Heads of State and Government
  themselves.

5
The recent past cont.

• The European Parliament set up a temporary
  committee for examining the perceived
  shortcomings in the regulatory framework of the
  shipping sector.
• As a result, in the course of a few years time,
  the European Commission proposed, and the
  European Parliament and Council approved, a great
  deal legislation.

6
The recent past cont.

• Inter alia
• Stricter port state control measures
• VTMIS places of refuge
• European Maritime Safety Agency
• Banning of single hull tankers carrying HGO in EU
  ports
• Accelerated phase-in of double hull tankers
• Subsequent proposal to amend Annex I of MARPOL
• Sanctions for ship-source pollution

7
Prevention of illegal ship source pollution

• Objective to provide an effective dissuasive
  system - for any actor in the shipping chain.
• MARPOL illegal discharges resulting from intent
  or recklessly or with serious negligence to be
  subject to Court proceedings
• Courts may impose  proportionate and dissuasive
  sanctions, which may include criminal or
  administrative sanctions 
• Beyond territorial sea a discharge shall not be
  regarded as an infringement for the owner, the
  master or the crew if it satisfies the conditions
  set out in MARPOL

8
Prevention of illegal ship source pollution

• Member States shall apply the provisions of this
  Directive
• without any discrimination in form or in fact
  among foreign ships and in accordance with
  applicable international law, including Section 7
  of Part XII of the 1982 United Nations Convention
  on the Law of the Sea.
• The future EU regime will be adopted probably in
  June 2005

9
The agenda of the new Commission (2004-2009)

• Efforts to be concentrated on implementation of
  what it has been legislated
• Proposal of a new legislative package in 2005 to
  address still missing safety instruments
• Enlarged tasks and means for the European
  Maritime Safety Agency
• Measures to make the EU industry including the
  shipping sector - more competitive (Lisbon
  agenda)
• Wide-consultation ( Green book ) in 2006 for an
  EU holistic approach to maritime and ocean affairs

10
New legislative package now in preparation

• The European Commission launched a consultation
  exercise in May 2004, which is still on going.
• The Administrations of all the EEA Member States
  and all the relevant industry associations have
  been associated.
• Some of the proposals are of particular interest
  for the oil tanker sector
• complete the existing image of the shipping
  sector
• Heads of State and Government themselves.

11
New legislative package now in preparation

• (mesures still under consideration)
• A new Regulation on flag state compliance
• This proposal aims to ensure that all the Member
  States fulfil their obligations as flag States in
  accordance with the IMO Conventions
• It establishes also harmonised interpretations of
  issues left to the discretion of the
  Administrations in the IMO Conventions.

12

• An amendment of the Port State Control Directive
• Aimed to improve practical implementation of
  existing PS rules in EU ports
• Better targeting of ships
• More effective refusal of access or banning of
  ships with multiple detentions
• Better monitoring of flag state performance

13

• An amendment of the Traffic Monitoring Directive
• Secure practical outcomes on places of refuge and
  PSSAs in accordance with international law of the
  sea
• Increased requirements for places of refuge
• Carriage requirements of certain equipments -
  Satellite Position Fixing Systems, AIS, etc
  (SOLAS Chapter V)
• Proposals on harmonised ice standards

14

• A new Directive on marine casualty investigations
• Systematic investigation of all serious
  casualties, as required by the IMO Code
• Investigations not aimed to determine
  responsibility or blame - Conducted by impartial,
  competent investigators
• Facilitate effective cooperation between coastal
  and flag states
• Efficient feed-back instrument for promoting new
  or revising existing regulations

15

• An amendment of the Directive on Classification
  Societies
• Clearer separation of responsibilities between
  Flag States and Recognised Organisations
  (statutory work)
• Better ex-ante control of Class performance
• System of sanctions for preventing poor
  performance of ROs
• Possibility for limited recognition

16

• A proposal on oil pollution liability
• Current situation not satisfactory
• International conventions and protocols already
  agreed are not implemented
• LLMC Protocol of 1996
• HNS Convention
• Bunkers Convention
• Oil Pollution Compensation Supplementary Fund
• There is a clear case for improvement of the CLC
  and IOPCF regime

17
Oil Pollution Liability

• The Member States are encouraged to participate
  in the planned IMO workshop on this subject,
  currently anticipated for late June this year
• Significant progress should be achieved - keeping
  track of the current status of Conventions and
  setting dates for ratification of the instruments
  agreed is essential
• Ship entering EU ports should have effective
  compulsory insurance covering third party
  liability

18

• A proposal on the liability of carriers of
  passengers by sea in the event of accidents
• Athens Convention
• Easier access to compensation for victims
• a uniform approach to maritime liability and
  compensation throughout the EU
• significantly higher limitation amounts for
  maritime claims not specifically covered by
  liability regimes.

19
Improving the Industrys Image

• The oil tanker sector is of vital importance for
  the EU 90 of the EU oil trade is seaborne
• It is a cost-efficient, high productivity sector
  (tons-miles performed per dwt)
• Constant progress in preventing accidents and
  reducing operational pollution
• Huge investments over the recent years in
  maintenance and renewal of the fleet
• Increasing corporate social responsibility in all
  major players

20
Improving the Industrys Image - cont

• There are strategic implications about the
  control of the tanker fleet
• Industry effort is crucial to ensure a
  predictable, global, regulatory environment
• adapted to the requirements of the oil seaborne
  transport of the 21st century ( sustainable
  growth )
• contributing to the stability of the sector
• guaranteeing the oil supply capacity required by
  the world economy
• Efficient  self-regulation  is key for
  achieving a sound regulatory environment

21

• Thanks to Intertanko for the constructive
  dialogue with the European Commission and for its
  continued efforts to improve oil tanker safety at
  world-wide level.