Sea Views: Indian shipping sector urges tonnage tax

The Indian shipping industry is vigorously urging the government to introduce tonnage-based taxation in the 2003-04 budget.

Several different areas of the administration including the Shipping Ministry are known to be in favour of the move and the Indian National Shipowners' Association (INSA) has made out a strong case before the finance ministry, to ensure that the proposal is included in the budget.

Recently, P.K. Srivastava, INSA president and chairman-cum-managing director of the Shipping Corp of India (SCI); Bharat Sheth, managing director, Great Eastern Shipping Co, and Yudhishthir Khatau, chief of Varun Shipping Co, along with senior shipping ministry officials, met the revenue secretary, C.S. Rao, and claimed that had the tonnage tax been in place, Indian shipping companies would have acquired 31 new vessels in the past five years. This would have led to a 63 per cent increase in freight revenue and an equal increase in tax collections. Furthermore, the tonnage tax would further give a fillip to the shipbuilding, repairing and finance sectors.

Corporate transparency policy: The 40 million GT, North of England P&I Club is continuing its policy of corporate transparency today having, last week, published details of its corporate governance arrangements.

In the first issue of its new corporate newsletter North News, the club identifies which of its 28 member directors serve on which governing committees – ranging from audit, executive and investment to FD and D and war risks – and when and where they are scheduled to meet. A report of the recent annual general meeting is also included. According to finance director Alan Wilson, "First-class corporate governance has been at the heart of the North of England's success in recent years. It involves significant and regular commitments from the club's member directors from around the world - a process we think needs to be more publicly acknowledged."

A summary is provided of the current financial position, showing in particular how the club compares with other members of the International Group. This includes the background to this month's announcement of the need for a 25 per cent general increase and an update on investment performance and reinsurance arrangements.

The North of England now insures 2,500 ships entered by over 400 members worldwide. It was the only club in Standard and Poor's 2002 report to get an upgrade in its rating, from A- stable to A- positive, ranking it the third highest interactively rated P&I insurer in the world.

New NLS Sopep requirements from January 1: The Intern-ational Maritime Organisation (IMO) has adopted a new regulation 16 of Marpol 73/78 Annex II, and amended Regulation 26 of Marpol 73/78 Annex I. It is a requirement of Regulation 16 of Annex II that any new and existing ship of 150 GT or over, which is certified to carry noxious liquid substances (NLS), must have onboard, by January 1 2003, an approved 'Shipboard Marine Pollution Emergency Plan (Sopep) for Noxious Liquid Substances'.

To assist owners and operators in this matter, 'Guidelines for the Development of Shipboard Marine Pollution Emergency Plans For Oil and/or Noxious Liquid Substances', are published by the IMO as MEPC 85(44). For such ships with current approved Shipboard Oil Pollution Emergency Plans, no action will be immediately required and the existing Sopep will not need amending or re-approval. However, it should be noted that when amending the Sopep for any reason after January 1, the revised requirements of MEPC.54 (32) as amended by MEPC.86 (44) must also be addressed.

Lloyd's Register announces record results: Lloyd's Register, (LR) has announced record full year results for the year ended June 30, 2002. Highlights include:

Record operating profit for the 12 months of £28.8 million (2001 £24.6 million)
Record income up by £32.4 million to £391.1 million (2001 £358.7 million)
All business streams achieved growth, and the balance sheet strengthened with net cash up by £33.4 million to £100.1 million.

Shipping organisations condemn flouters of maritime law: Following the Prestige incident, the 'Round Table' of international shipping industry organisations (Bimco, the Inter-national Chamber of Shipping (ICS), Intertanko and Intercargo) has condemned the continuing contravention of the Law of the Sea Convention by some coastal states.

A joint statement from the four said that despite the inevitable political and public feelings after such a major pollution incident, and the natural concern for those in the affected coastal areas that were experiencing great difficulties there was, nevertheless, no justification for the blatantly illegal action taken by the governments of Spain and France in ordering a number of foreign ships out of their 200-mile Exclusive Economic Zone.

The statement went on to say, "Merchant ships are entitled to freedom of navigation through the EEZ, and such flouting of international obligations by two important maritime nations sets an inexcusable and damaging precedent which should be strongly opposed by other nations worldwide.

"We have urged the two states so far directly affected, Malta and Bahamas, to take this matter up with the International Tribunal for the Law of the Sea in Hamburg as a matter of urgency."

Single-hull tanker ban by Germany: According to Fairplay, Germany is to ban from its ports all single-hull tankers carrying heavy oil and other dangerous goods. The measures were announced last week by the German transport minister, Manfred Stolpe.