Sea Views: Security funding gap poses risks

A former chairperson of the US Federal Maritime Commission believes the global effort to combat the threat of terrorists using maritime transport to deliver weapons of mass destruction is increasingly compromised by the imposition of under-funded security initiatives on ports and shipping interests.

Helen Bentley told an international seminar in Greece that the International Ship and Port Facility Security (ISPS) Code was being implemented across the IMO nations with an inadequate level of funding.

She has been conducting a campaign to redress the global maritime community's post 9/11 double problem – that of heightened risk of attack and of the high costs of implementing under-funded security measures. She stressed the importance of proper financial provision due to international shipping's voluminous and far-flung cargo traffic that "would seem to provide aspiring terrorists with the most inviting window of opportunity".

UK P&I sets 17.5 per cent increase in premium

While recognising that such a step will be unwelcome among members, the UK P&I Club Board has agreed a general increase in premium rating of 17.5 per cent, plus the relevant contribution to the cost of the International Group's 2004 re-insurance programme.

The Club directors took the decision at their Board meeting in Bermuda on October 20 when they reviewed the development of the Club's funds and claims. There has been a strong investment performance, with a return of eight per cent recorded for the seven months from February to September. Furthermore, the Club's reserve strength, combined with the protection of the Swiss re-reinsurance contract, means that the supplementary premium estimates for all the open policy years (2001, 2002 and 2003) will be maintained at nil.

This notwithstanding, clear evidence of an increasing trend in claims was a significant factor in the decision and, while the claims projections for the policy years up to and including 2001 have shown an overall improvement, there is confirmation of a significant increase in the cost of claims falling on the 2002 year.

Looking ahead, the Club said it anticipated that favourable market conditions for the shipping industry, with resulting higher levels of ship utilisation, will produce an increased level of claims. It was against this changing claims environment that the Board decided to order a general increase of 17.5 per cent in members' premium ratings for the 2004 policy year, plus any relevant increase in the cost of the International Group's reinsurance arrangements for 2004.

Design study begins for Khor Fakkan expansion

Halcrow International has commenced detailed design studies for the expansion of Khor Fakkan container terminal that will increase annual capacity to 3.4 million TEU from the current 1.7 million TEU. According to the Middle East Economic Digest (MEED), consultants have been invited to bid for a site investigation contract for the expansion work, scheduled to start next January to be completed within two years, and will include the addition of two deep water berths equipped with four super-post-Panamax gantry cranes.

– Frank Kennedy is a marine consultant based in Dubai