LATIN AMERICAN PANEL LATIN AMERICAN PANEL MARCH 12-13, 2008MARCH 12-13, 2008

OVERVIEW OF OVERVIEW OF INTERTANKO INTERTANKO

ISSUESISSUESJOSEPH ANGELOJOSEPH ANGELO

DEPUTY MANAGING DIRECTORDEPUTY MANAGING DIRECTOR

MEMBERSHIPMEMBERSHIP

FINANCEFINANCE

SECRETARIATSECRETARIAT

PANEL STRUCTUREPANEL STRUCTURE

LAW SUITSLAW SUITS

PILOTSPILOTS

COUNCIL/EXCOMCOUNCIL/EXCOM

CORPORATE COMMUNICATIONSCORPORATE COMMUNICATIONS

MEMBERSHIPMEMBERSHIP

272 MEMBERS272 MEMBERS

2,770+ TANKERS2,770+ TANKERS

230+ MILLION DWT230+ MILLION DWT

MORE THAN 80% OF INDEPENDENT MORE THAN 80% OF INDEPENDENT TANKER FLEETTANKER FLEET

300+ ASSOCIATE MEMBERS300+ ASSOCIATE MEMBERS

MEMBERSHIPMEMBERSHIP

RECENT NEW MEMBERSRECENT NEW MEMBERS

AP MOLLER – MAERSKAP MOLLER – MAERSK

NATIONAL IRANIAN TANKER COMPANYNATIONAL IRANIAN TANKER COMPANY

CHINA SHIPPING COMPANYCHINA SHIPPING COMPANY

OVERSEAS SHIPPING GROUPOVERSEAS SHIPPING GROUP

GRUPO TMM SA – MEXICO!!GRUPO TMM SA – MEXICO!!

FINANCEFINANCE

2006 2007 2008

(BUDGET)

Total Operating

Income 7,113,105 8,068,590 8,854,551

Total Operating

Expenses 6,811,317 7,546,847 8,557,424

Operating Result 301,788 521,743 297,127

Result for the Year 438,469 121,743 297,127

FINANCEFINANCE

2008 MEMBERSHIP FEES APPROVED BY 2008 MEMBERSHIP FEES APPROVED BY COUNCIL IN NOVEMBER 2007COUNCIL IN NOVEMBER 2007

MEMBERS:MEMBERS:• Per deadweight unchangedPer deadweight unchanged• Per ship from $1800 to $2000Per ship from $1800 to $2000• Minimum from $6350 to $7000Minimum from $6350 to $7000• Maximum from $80,000 to $85,000Maximum from $80,000 to $85,000ASSOCIATE MEMBERS:ASSOCIATE MEMBERS:• All categories increased by 10% resulting All categories increased by 10% resulting

in $3050, $5500 and $6350in $3050, $5500 and $6350

SECRETARIATSECRETARIAT

TOTAL SECRETARIATTOTAL SECRETARIAT – 24 EMPLOYEES – 24 EMPLOYEES

12 - OSLO 12 - OSLO 10 - LONDON10 - LONDON

1 - SINGAPORE1 - SINGAPORE 1 - USA 1 - USA

NEW STAFF MEMBERSNEW STAFF MEMBERS

- MICHELE WHITE – GENERAL COUNSEL- MICHELE WHITE – GENERAL COUNSEL

- AJAY GOUR – CHEMICAL MANAGER- AJAY GOUR – CHEMICAL MANAGER

- CHRIS FOX – ACCOUNTING/IT MGR- CHRIS FOX – ACCOUNTING/IT MGR

DEPARTING STAFF MEMBERSDEPARTING STAFF MEMBERS

- MINERVA ALFONSO – MARINE SAFETY- MINERVA ALFONSO – MARINE SAFETY

PANEL STRUCTUREPANEL STRUCTURE

CURRENT PANEL STRUCTURECURRENT PANEL STRUCTURE

• LATIN AMERICAN PANELLATIN AMERICAN PANEL

• NORTH AMERICAN PANELNORTH AMERICAN PANEL

• ASIAN PANELASIAN PANEL

• HELLENIC PANELHELLENIC PANEL

• EUROPEAN REFERENCE GROUPEUROPEAN REFERENCE GROUP

PANEL STRUCTUREPANEL STRUCTURE

PROPOSED PANEL STRUCTUREPROPOSED PANEL STRUCTURE

• LATIN AMERICAN PANELLATIN AMERICAN PANEL

• NORTH AMERICAN PANELNORTH AMERICAN PANEL

• ASIAN PANELASIAN PANEL

• NORTHERN EUROPEAN PANELNORTHERN EUROPEAN PANEL

• HELENIC/MEDITERRANEAN PANELHELENIC/MEDITERRANEAN PANEL

PANEL STRUCTUREPANEL STRUCTURE

IN ADDITION,IN ADDITION,

• ASIAN PANEL TO INCLUDE MEMBERS ASIAN PANEL TO INCLUDE MEMBERS IN THE INDIAN SUB-CONTINENTIN THE INDIAN SUB-CONTINENT

• MEMBERS IN THE MIDDLE EAST TO BE MEMBERS IN THE MIDDLE EAST TO BE INVITED TO EITHER ASIAN OR INVITED TO EITHER ASIAN OR MEDITERRANEAN/HELENIC PANELSMEDITERRANEAN/HELENIC PANELS

• NO CHANGE TO LATIN AMERICAN OR NO CHANGE TO LATIN AMERICAN OR NORTH AMERICAN PANELSNORTH AMERICAN PANELS

• INVITE PANEL CHAIRMEN TO EXCOM, INVITE PANEL CHAIRMEN TO EXCOM, AS APPROPRIATEAS APPROPRIATE

LAWSUITSLAWSUITS

• MASSACHUSETTS LAWSUITMASSACHUSETTS LAWSUIT

• BALLAST WATER LAWSUITBALLAST WATER LAWSUIT

• EUROPEAN SHIP SOURCE EUROPEAN SHIP SOURCE POLLUTION DIRECTIVEPOLLUTION DIRECTIVE

• CARB AIR EMISSION REGSCARB AIR EMISSION REGS

MASS LAWSUITMASS LAWSUIT

INTERTANKO CONCERNSINTERTANKO CONCERNS

• FEDERAL COURT DECISION FEDERAL COURT DECISION UPHOLDS COAST GUARD UPHOLDS COAST GUARD AUTHORITYAUTHORITY OVER VESSEL OVER VESSEL OPERATIONS IN US WATERSOPERATIONS IN US WATERS

• REINFORCES UNANIMOUS REINFORCES UNANIMOUS US US SUPREME COURT DECISIONSUPREME COURT DECISION IN 2000 IN 2000 WHEN INTERTANKO TOOK STATE OF WHEN INTERTANKO TOOK STATE OF WASHINGTON TO COURTWASHINGTON TO COURT

BALLAST WATER LAWSUITBALLAST WATER LAWSUIT

INTERTANKO CONCERNSINTERTANKO CONCERNS

• FEDERAL COURT ORDERS EPA TO FEDERAL COURT ORDERS EPA TO DEVELOP REGS FOR DEVELOP REGS FOR ALL SHIP ALL SHIP DISCHARGESDISCHARGES, INCLUDING BALLAST , INCLUDING BALLAST WATER, UNDER NPDES PERMITWATER, UNDER NPDES PERMIT

• JUDGE ACKNOWLEDGES THAT USCG JUDGE ACKNOWLEDGES THAT USCG HAS AUTHORITY UNDER CERTAIN HAS AUTHORITY UNDER CERTAIN LAWS, BUT LAWS, BUT BELIEVES CONGRESS ALSO BELIEVES CONGRESS ALSO GAVE AUTHORITY TO EPAGAVE AUTHORITY TO EPA UNDER THE UNDER THE CLEAN WATER ACTCLEAN WATER ACT

EU DIRECTIVEEU DIRECTIVE

INTERTANKO CONCERNSINTERTANKO CONCERNS

• EU “SHIP SOURCE POLLUTION” EU “SHIP SOURCE POLLUTION” DIRECTIVE (2005/35/EC) HAS TWO DIRECTIVE (2005/35/EC) HAS TWO MAJOR PROBLEMS:MAJOR PROBLEMS:- CONTRADICTS MEMBER STATES’- CONTRADICTS MEMBER STATES’ TREATY OBLIGATIONS TREATY OBLIGATIONS- LIABILITY TEST FOR “SERIOUS - LIABILITY TEST FOR “SERIOUS NEGLIGENCE” LACKS LEGAL NEGLIGENCE” LACKS LEGAL CERTAINTY CERTAINTY

• IN EFFECT, IT CRIMINALIZES IN EFFECT, IT CRIMINALIZES ACCIDENTAL POLLUTIONACCIDENTAL POLLUTION

AIR EMISSIONS - CARBAIR EMISSIONS - CARB

INTERTANKO CONCERNSINTERTANKO CONCERNS

• LAWSUIT ADDRESSES LAWSUIT ADDRESSES LIMITED ISSUESLIMITED ISSUES

- 24 MILE JURISDICTION- 24 MILE JURISDICTION

- FAILURE TO REQUEST EPA APPROVAL- FAILURE TO REQUEST EPA APPROVAL

• CARB REGS ARE CARB REGS ARE NOT “IN USE” REGSNOT “IN USE” REGS, , THEY ARE “EMISSION STANDARDS” THEY ARE “EMISSION STANDARDS” UNDER CLEAN AIR ACT UNDER CLEAN AIR ACT

PILOTSPILOTS

• JAN 2008, CHAIRMAN INTERTANKO JAN 2008, CHAIRMAN INTERTANKO PILOTAGE WG, F. LARSSON (LONDON) PILOTAGE WG, F. LARSSON (LONDON) AND J. ANGELO MEET WITH MIKE AND J. ANGELO MEET WITH MIKE WATSON, PRESIDENT IMPA, NICK WATSON, PRESIDENT IMPA, NICK CUTMORE, SECRETARY GENERAL IMPACUTMORE, SECRETARY GENERAL IMPA

• FORMATION OF DISCUSSION GROUP IS FORMATION OF DISCUSSION GROUP IS FIRST STEP TOWARD NORMALIZING FIRST STEP TOWARD NORMALIZING RELATIONSRELATIONS BETWEEN TWO BETWEEN TWO ORGANIZATIONSORGANIZATIONS

PILOTSPILOTS

DISCUSSION GROUP FOCUSED ON – DISCUSSION GROUP FOCUSED ON –

• BRIDGE RESOURCE MANAGEMENTBRIDGE RESOURCE MANAGEMENT

• PILOT AND MASTER/BRIDGE CREW PILOT AND MASTER/BRIDGE CREW INTERACTIONINTERACTION

• IMO RESOLUTION A.960IMO RESOLUTION A.960

• SAFE BOARDING ARRANGEMENTS FOR SAFE BOARDING ARRANGEMENTS FOR PILOTSPILOTS

• E-NAVIGATIONE-NAVIGATION

PILOTS PILOTS

DISCUSSION GROUP – DISCUSSION GROUP –

• AGREED THAT INITIAL MEETING WAS AGREED THAT INITIAL MEETING WAS SUCCESSFULSUCCESSFUL

• IDENTIFIED AREAS WHERE THERE IDENTIFIED AREAS WHERE THERE WERE GROUNDS FOR FURTHER WERE GROUNDS FOR FURTHER DISCUSSIONSDISCUSSIONS

• AGREED TO MEET AGAIN LATER THIS AGREED TO MEET AGAIN LATER THIS YEAR TO CONTINUE THE DISCUSSIONSYEAR TO CONTINUE THE DISCUSSIONS

COUNCIL/EXCOMCOUNCIL/EXCOM

COUNCIL ISSUES –COUNCIL ISSUES –• TERMINATION FOR NON-ATTENDANCE??TERMINATION FOR NON-ATTENDANCE??• ALLOW ALL MEMBERS TO ATTEND??ALLOW ALL MEMBERS TO ATTEND??DISCUSSION POINTS – DISCUSSION POINTS – • COUNCIL DOMINATED BY EUROPEANSCOUNCIL DOMINATED BY EUROPEANS• OTHER REGIONS DO NOT ATTENDOTHER REGIONS DO NOT ATTEND• COUNTRIES WITH MANY SEATS ARE NOT COUNTRIES WITH MANY SEATS ARE NOT

FULLY UTILIZED FULLY UTILIZED CONCLUSIONSCONCLUSIONS• RETAIN CURRENT STRUCTURERETAIN CURRENT STRUCTURE• ENCOURAGE BETTER PARTICIPATIONENCOURAGE BETTER PARTICIPATION

COMMUNICATIONCOMMUNICATION

• ESTABLISHMENT OF LONG TERM ESTABLISHMENT OF LONG TERM STRATEGIC COMMUNICATIONS AND STRATEGIC COMMUNICATIONS AND PUBLIC RELATIONS PLANPUBLIC RELATIONS PLAN

• SETTING UP OF COMMUNICATIONS AND SETTING UP OF COMMUNICATIONS AND PUBLIC RELATIONS ADVISORY GROUPPUBLIC RELATIONS ADVISORY GROUP

• ADVISORY GROUP WOULD DEVELOP ADVISORY GROUP WOULD DEVELOP WAYS TO COMMUNICATE DECISIONS OF WAYS TO COMMUNICATE DECISIONS OF EXCOM AND COUNCIL, EXCOM AND COUNCIL, NOT FORMULATE NOT FORMULATE ITS OWN POSITIONSITS OWN POSITIONS ON KEY ISSUES ON KEY ISSUES

THANKTHANK

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