» NEWSLETTER 04-2 SECURITY Directive on enhancing Port Security General approach agreed As mentioned in newsletter 01/04 the Commission adopted on 10 February 2004 a draft Directive on enhancing port security. The proposed Directive applies the broad principles of the relevant part of “IMO port facility” to the whole port area such as on: port security assessment, port security plan, port security officer, port security committee, training and control. The Directive is consequently directly linked to the Regulation on ship and port facility security. The main difference is that this proposed legislation is a Directive which contrary to a Regulation leaves the implementation to Member States taking into account the specificities of their national ports. In view of the non controversial character of the proposed Directive, the Presidency decided to accelerate the process and have it on the agenda of the Transport Council meeting of 11 June where a ‘general approach’ was agreed. The Directive will now go through the further procedures of formal approval by the Council and the European Parliament. ISPS – Regulation 725/2004 The industry is closely following the developments on the application of the IMO ISPS and Regulation 725/2004. Problems have arisen in respect of the delivery of the necessary certificates by the relevant authorities, harmonized interpretation and the compliance of certain ports, particularly outside the EU. Intermodal security Consultation meeting 25 May The Commission called a consultation meeting on 25 May allowing stakeholders to explain their submissions to the Commission questionnaire of December 2003 in more detail. The exchange of views at the meeting evidently reflected the submissions to questionnaire. Main comments made: - A security risk assessment is essential before any suggestion on measures is made. - There were different views on whether criminal actions should also be part of proposals on security against terrorism. In general it was felt that the focus should be on terrorism with possible side effects on criminal acts. - Some trade associations were developing voluntary security guidelines. - Infrastructure security measures are in the first instance a task of Government (public good). - It is essential to safeguard the free movement of goods within the EU. Border controls should not be introduced again. - There were no coherent views about the “known shipper” concept. Whereas the principle was supported, practicalities of recognition were considered cumbersome. Suggestion was made that possibly the criteria as used by customs for a “recognised/authorised” status should be used. Duplication to be avoided. The “known shipper” concept should remain a voluntary scheme. - Difference was made between intra EU transport and International Overseas transport. This is valid in particular for advance cargo declaration (24 h prior to loading/arrival for maritime containers) - A EU harmonised approach was preferred to fragmented approaches by different Member States. - To avoid distortion of competition between trading entities security approaches should have a global character. - Some participants were rather sceptical about Commission initiatives and felt some further study and exchange of views is essential. The Commission services are further analyzing the comments received and may propose a general framework through Directive end this year/beginning next year. SAFETY Maritime Package 2004 Positive signs In early May DGTREN produced a working paper for discussion at a first consultation meeting with industry in mid May on a “Maritime Safety Package 2004”. A similar meeting with Member States took place at about the same time. While having detailed comments, ECSA is optimistic that the proposals to emerge around the end of the year will, overall, be pragmatic and make a positive contribution to maritime safety. What is important is consistency with international rules, ratification by Member States of Conventions such as MARPOL and HNS and an emphasis on EU enforcement of existing legislation. Written responses to the paper were invited by June, with further consultation meetings with the Member States and industry envisaged in September. ECSA’s detailed commentary is available on the website www.ecsa.be. A brief summary of the Commission’s consultation paper is set out below, together with a summary of the ECSA response. Marine Casualty Investigations in the EU: Due to perceived problems with current arrangements, tighter controls on technical investigations and closer cooperation between Member States are planned, with a directive setting out common EU standards envisaged. ECSA: While EMSA could provide technical expertise to Member States on request, EU flag states should retain their responsibilities in this area. The EU could usefully promote/fund the training of investigators. Continued cooperation between the different permanent national investigation bodies should be encouraged both within the EU and worldwide, with the mandatory implementation of the IMO Code on casualty investigations being a way of ensuring consistent standards. Amendment of the Directive on a Vessel Traffic Monitoring and Information System: The following elements, regarded as technical in nature, are proposed: update to include 2003 amendments to SOLAS re AIS timetable and guidelines on places of refuge; SafeSeaNet, with a possible obligation on Member States to use the system, and with an extension of its application; clarifying requirements regarding plans for places of refuge; minimum requirements for ‘black boxes’ for all vessels visiting EU waters; satellite tracking system of dangerous cargoes and ships deemed to be sub standard; technical requirements aimed to ease identification of oil spill origins. ECSA: The proposals are broadly welcomed, with consistency with IMO standards/developments in relation to VDRs and long-range tracking of ships being particularly important. Implementation of the SafeSeaNet project, a computer network linking ports and maritime authorities, offers possibilities for a reduced number and frequency of reports by ships and should be encouraged; however, confidentiality vis a vis possible commercial implications need to be taken into account. While proposals to clarify requirements for places of refuge are supported, making provision of access to such places subject to financial/administrative requirements should be resisted. The Flag State Initiative: Through EU legislation, the initiative aims at ensuring compliance of all EU Member States with the main flag state obligations laid down in the relevant IMO Conventions. Account will be taken of the IMO initiatives in this area; it is moreover stated that EU shipowners who register under EU flags should not be placed at a disadvantage compared to their competitors. The questions for industry relate to the process of delegating authority to classification societies, unscheduled flag state inspections and flag monitoring of their fleet. ECSA: The new emphasis on flag state control is welcomed, to be closely based on/harmonised with IMO initiatives. The Community should play its full part in the IMO discussions in that context. In relation to individual ships, unscheduled flag state inspections could replace PSC in the future. Transparency and auditing should ensure that in reality there is no conflict for Classification societies to issue statutory certificates and class certificates for the same ship. Moves to replace or undermine the role of flag states by a greater role for EMSA in relation to flag state control should be resisted. Port State Control: A re-casting of the PSC directive 95/21 is envisaged. In addition to integrating the different amendments into one document, the following additional goals are envisaged; incorporating the changes proposed in the Council Conclusions and Commission Conclusions of December 2002. These relate to strengthening the reporting mechanism by pilots in relation to ship deficiencies, measures to achieve sufficient inspection rates at all ports to prevent ‘ports of convenience’ and more frequent inspections of ‘high risk ships’; additional possible measures include greater use of blacklists, relaxation of PSC for EU flag ships, tightening of rules on refusal of access, improved data collection and full control of maritime labour standards. ECSA: A greater role for pilots in ships in transit in reporting information would be acceptable if strictly related to their normal course of work. A greater emphasis on targeting of substandard ships is supported and the discussions in the Paris MOU to review the 25% inspection rule could prove useful. Harmonisation/simplification of the criteria for refusal of access in case of multiple detentions is supported, as could an extension to general cargo ships. The concept of a ‘code of good conduct’ for port state control inspectors is also welcomed. Ships with a proven good PSC record should be rewarded with fewer inspections. ENVIRONMENT Air Emissions – Sulphur Directive As expected, political agreement was reached at the Environment Council meeting on 28th June on the proposed directive introducing sulphur limits in marine fuel. The agreement has the following key elements; - 1.5% sulphur limit in the SOx emission control area in line with IMO - for the Baltic 19thMay 2006 or, if later, 12 months after entry into force of the Directive – for the North Sea and other areas 12 months after designation in IMO. - 1.5% sulphur limit for passenger ships operating on regular services to or from any Community port as from 19th May 2006. - 0.1% sulphur limit for ships at berth and inland waterway vessels as from 1January 2010. ‘Sufficient time’ will be allowed to complete any switch of fuel and there is a derogation for ships at berth for less than 2 hours. A 1January 2012 date has been agreed for 16 unifuel ships operating exclusively in Greek waters. - Trials for emission abatement technologies are to be allowed, with a mechanism whereby Member States may allow ships to use such technology as an alternative means of meeting the requirements. - The Commission has to produce a report by 2008 on inter alia trends in air quality, fuel costs and modal shift. - The Commission has to produce a report by end 2005 on possible economic instruments, including emission trading and offsetting. While some helpful provisions have been introduced during the discussions in Council, ECSA regrets that in relation to the ‘ships at berth’ provisions and to regular passenger ships outside the SOx emission control area, the provisions are effectively regional rules going beyond those agreed internationally. Now that MARPOL Annex VI has received the required number of ratifications to bring it into force it is quite feasible for discussions to take place in IMO within a short timeframe to address any environmental concerns of EU Member States via a revision of MARPOL, using the considerable political influence of the enlarged EU in that context. The industry continues to believe that international and not regional solutions are essential for the global maritime sector. It is notable and disappointing that only a handful EU Member States have ratified MARPOL Annex VI. The political agreement reached will now go to the European Parliament for the 2nd Reading stage of the legislative procedure. Clean Marine Award It can be reported that 11 shipping companies submitted proposals to the Commission with the winner (Reederei Rord Braren from Germany) receiving the award from the Environment Commissioner at a ceremony on 1st June during the Brussels “Green Week”. ECSA is associated with this DG Environment initiative to give publicity to “environmentally responsible shipping, specifically low emission shipping, and to disseminate best practice”. Reception Facilities Problems are being reported by ECSA members in relation to the operation of the Reception Facilities Directive in terms of both costs and availability. It has been agreed within ECSA that in cooperation with ICS and INTERTANKO input should be made to EMSA who will soon be starting a review of the Directive. SOCIAL Maritime Labour Standards In the context of the DGTREN “Maritime safety package 2004” referred to above, the Commission is proposing that the consolidated ILO Labour Standards Convention, scheduled to be adopted in 2005, should be transposed into EU legislation. In the absence of agreement in ILO, the Commission has raised the possibility of transposing existing ILO Conventions into EU law. In the consultation meeting on 18th May, ECSA emphasised its full support for the ILO process and the Commission’s involvement in encouraging a successful outcome. ECSA could support transposition of the Convention, once agreed, into EU law. However, considerable caution should be exercised in relation to transposing ILO Conventions into EU law in the absence of agreement on the consolidated version in that many are unsuitable for the shipping industry of today. Recruitment and Training of Seafarers In June the Commission agreed to fund an EU Career Mapping project to demonstrate possible career paths for seafarers against the background of the need to make shipping a more attractive career option for young people. Developed within the ECSA/ETF sectoral dialogue structure, the project will start in July and take a year to complete. In the same context reference should be made to a very recent initiative by DGTREN of producing, in consultation with the social partners, a video to promote seafaring as a career. To be used by schools throughout Europe and promoted as part of a website, it is a valuable contribution. LEGAL ISSUES Draft Directive on criminal sanctions for ship-source pollutions On 10/11 June the Transport Council reached political agreement on the draft Directive on (criminal) sanctions for ship-source pollution. The compromise text includes the following: - All ship-source discharges of polluting substances are considered as infringements if they are committed with intent, recklessly or by serious negligence. For such discharges Member States are allowed to impose effective, proportionate and dissuasive sanctions, which may include criminal or administrative sanctions. - Accidental discharges occurring within the internal waters or territorial sea of a Member State will be an infringement for all persons if committed with intent, recklessly or by serious negligence. - However, accidental discharges occurring outside the internal waters and territorial seas will not be an infringement for the owner, the master and the crew when acting under the master’s responsibility if they fulfil the conditions as set out in MARPOL. - Member States shall institute proceedings, including detention of the ship, if there is a clear objective evidence that a ship committed a discharge causing major damage. The agreement reached is controversial. Malta and Greece voted against. ECSA regrets that the political agreement will create legal uncertainty. Some provisions of the draft Directive are in conflict with MARPOL and UNCLOS particularly accidental discharges being subject to liability and Member States being obliged to institute proceedings in case of infringement, with no discretion being given. The Directive will now go through the procedures of formal adoption by the Council and the European Parliament in 2nd Reading. The shipping industry will once again insist to stick International agreements (MARPOL/UNCLOS) as agreed by the European Parliament in the first Reading. Passenger liability – Athens Protocol The 2004 maritime safety package referred to above also raised the Commission’s intention to publish a proposal for a Regulation implementing the provisions of the Athens Protocol within Community law. The main content of such a Regulation would be as follows: · A strict liability regime to apply in the event of shipping incidents (shipwreck, grounding, collision, etc) with a ceiling of SDR 250.000. · A system of negligence based liability for other types of incidents (e.g. passenger behaviour) with a ceiling of SDR 400.000. · A compulsory insurance requirement to apply to all carriers, whatever the flag or registration of the ship, providing a passenger service to and from a EU port. · The Regulation would apply to both domestic and intra-Community voyages. In the ECSA submission it is strongly recommended that the insurance problems be solved before the Protocol is ratified. It is up to now not clear whether the P&I System will be able to cover the very high levels of liability that are established under the new Protocol. A further point is the unclear situation whether and to what extent the liability of a new protocol includes a liability for terrorists’ acts, which are not insurable. The problems are under discussions in an informal IMO correspondence group. It is, therefore, evident that the industry recommends that the Commission takes part in those discussions and insists on solving the insurance problems before a Regulation is envisaged. LIBERALISATION OF PORT SERVICES Following the rejection of the Directive on market access to port services by the European Parliament in November 2003 little action has been taken; the Commission services have reportedly been looking at some clear-cut infractions in port services versus existing EU legislation and may possibly take action in this respect. However, it can be reported that Vice President Loyola de Palacio announced on 17th June that she would be coming forward with a proposal for a new port services directive, perhaps as soon as end June. It is evident that ECSA is “demandeur” for a full liberalization of ports services in order to further improve the efficiency and competitive position of maritime services in the supply chain. APPLICATION OF COMPETITION RULES ON MARITIME TRANSPORT Consortia The Commission issued end of May a consultation paper on the extension of Regulation 823/2000 giving a Group Exemption to Consortia. The ECSA reaction to the consultation paper has been drawn up in close cooperation with ELAA. The shipping industry has advocated an extension of Regulation 823/2000 and made suggestions for some improvements on the practical application of the Regulation. MARITIME EXTERNAL RELATIONS WTO Positive political statements from all sides and reported tangible progress in all sectors at the June Trade Negotiation Committee meeting promises progress in the stalled Doha Round negations. First, however, a compromise solution is still to be found on the key hurdle of agriculture, in particular access to markets, export subsidies and national subsidies. Rather surprising and bold proposals in May by the European Commission, offering to put on the table all export subsidies, subject to a balanced overall package and commitment by the US, received mixed reactions. On the services side the number and quality of in total only 44 offers by the in all 148 WTO members is considered insufficient. Meanwhile, the deadline of end July to reach a compromise on the details of a framework agreement is coming closer. It is clear that the deadline for the DDA Round set for end 2004 will not be met. The complicated EU bilateral negotiations with Russia for accession to the WTO were rounded off at the EU-Russia Summit of 21 May. The maritime elements are quite satisfactory and some supplementary concessions previously agreed under the EU-Russia Partnership and Cooperation Agreement are to be safeguarded under a MFN exemption by Russia. Other service sectors like Financials are less content. EU - MERCOSUR The EU - MERCOSUR (Argentina, Brazil, Paraguay, Uruguay) negotiations on a Free Trade Agreement show very slow progress, although a conclusion by October should still be feasible. The EU side blames MERCOSUR not tabling interesting offers. The difficulties mainly come forth from different perceptions of ambition, the method of approaching the negotiations, as well as the fact that MERCOSUR has not achieved the same level of integration as the EU, including the lack of open markets between the MERCOSUR member states. The Commission remains firm on necessary liberalizing commitments on maritime transport. CHINA China continues to perform as the main generator of international trade, also much stimulating inter Asia trade. The necessary port capacity in China continues to expand, including foreign investment and participation in terminal management. The EU – China maritime relations are excellent and apart from the coverage of the EU enlargement, explicit inclusion of two additional concessions in the EU-China maritime agreement, geographic establishment rights (of branches) without limitation and rights to handle own vessel agency business - as meanwhile made by China to the US – are expected to be confirmed during the second EU-China implementation meeting scheduled for this autumn in Hamburg. INDIA India equally shows an outstanding growth in external trade. Regrettably this also results in congestion at the main container port of Nhava Sheva (close to Mumbai), where the two current terminals are used to maximum capacity and inland (rail) transport cannot meet demand. The BOT concession for a third terminal was recently signed after (too) much delay, only coming into operation late 2006, and a fourth terminal is still under study. The situation is becoming critical. Bilateral talks for coming to a EU-India maritime agreement have been repeatedly postponed for different reasons – hopefully these will now take place in September, well before the EU-India Summit on 14 October in The Hague. SHORT SEA SHIPPING Continued growth The Commission issued on 2 July its third progress report on short sea shipping. In this Communication the Commission confirms that short sea shipping has, over the last five years, showed a growth trend comparable to that of road transport. The Communication reports that this success is due to ongoing action taken on different fronts such as: - The progress made on eliminating obstacles that hindered the development of short sea shipping. - Ongoing work on Customs procedures particularly enhancing the use of the “simplified customs procedure”. - Commission initiatives such as the Marco Polo Programme and TEN-T. - The work of the national focal points on short sea shipping and the short sea shipping promotion centres. The progress report was discussed at the informal Transport Council held in Amsterdam on 9/10 July. Transport Ministers appreciated the success in the promotion of this transport mode and encouraged the ongoing efforts aiming at further improving its attractive position. Particular attention was drawn to the simplification of documentary procedures, particularly on customs, to the important role of the promotion centres and to the quality requirements of short sea shipping. Having been actively involved in the promotion of short sea shipping during the last decennium, ECSA appreciates the political support given by the European Institutions to the development of this environment friendly transport mode. ECSA hopes that this new political impetus will result in further progress on issues such as customs procedures and the liberalisation of port services. Quality of short sea shipping services is evident, however, no bureaucratic instruments should be introduced to confirm this. The cooperation with and between the short sea promotion centres should be further enhanced. Indeed the fieldwork done by them is a key factor to further success. DUTCH PRESIDENCY The Netherlands took over the Presidency of the EU from Ireland as from 1 July until end 2004.Taking into account the points left by the Irish Presidency following issues on Maritime transport will be dealt with: · Short Sea Shipping · Proposed Regulations on the ISM Code · Proposed Directive on Port Security · Presentation of the Maritime Safety Package 2004 · Proposal for a Directive on ship-source pollution and on the introduction of sanctions, including criminal sanctions for pollution offences. Council meetings are planned as follows: Formal Council meetings on 7/8 October and 9/10 December and Informal Council meetings on 9/10 July in Amsterdam and on 19/20 November in Rotterdam. NEW EUROPEAN PARLIAMENT/NEW COMMISSION Following the elections for the European Parliament in June, a new Parliament is being composed. The division of the 732 seats in the new Parliament is as follows: •EPP-ED – Group of the European Peoples Party (Christian Democrats) and European Democrats – 278 seats. •PES – Group of the Party of European Socialists – 199 seats. •ELDR – Group of the European Liberal Democrat and Reform Party – 67 seats. •GREENS/EFA – Group of the Greens/European Free Alliance – 41 seats. •EUL/NGL – Confederal Group of the European United Left/Nordic Green Left – 39 seats. •UEN – Union for a Europe of Nations Group – 27 seats. •EDD – Group for a Europe of Democracies and Diversities- 15 seats. •NI – Non-attached and others– 66 seats. During July the new Parliament will mainly deal with institutional issues such as the appointment of the EP President and the establishment of the different Committees including the appointment of the Chairmen. The Parliament will also have to approve the nomination of the new President of the Commission, Mr José Manuel Durâo Barroso. July 2004