Page 10: of Marine News Magazine (May 2013)

Amelia Island, Florida: At the second annual Workboat Exchange , held in April at the Ritz Carlton Hotel on beau- tiful Amelia Island, Florida, about 160 marine buyers and sellers alike got a full taste of the best food, weather and accommodations that the Sunshine state has to offer. At the same time, they also got a full dose of reality when it comes to the eventual implications of the subchapter M rules. Maritime attorney and consultant Gary English led the attendees through a comprehensive primer on who will be impacted, why, and what it is likely to cost inland ma- rine operators to comply. In short, the long term, down- stream impact on the industry was laid bare to the bone. In advance of the (now) annual two+ day event that brings marine buyers (ß eet operators) and suppliers (equipment ven- dors) together in a unique setting that guarantees both parties personal and up close business meetings and introductions, the keynote speech given by English gave them plenty of rea- son to do so. He started out by explaining that Subchapter M ultimately affects US Flagged vessels pushing, pulling or hauling alongside, towing vessels moving commercial barges Ð especially those towing oil & other dangerous and com- bustible cargos, and vessels providing harbor assist services to large commercial ships. ThatÕs because the preponderance of casualties reviewed by the Coast Guard involved these ves- sels. And, also according to English, the greatest potential for casualties that cause permanent injury or death to humans, economic impact to the maritime transportation sector, and/ or environmental damage is greatest due to the nature of the service. Bottom line: it is going to be expensive. Subchapter M and You The Coast Guard and Maritime Transportation Act of 2004 (Aug. 9, 2004), established new authorities for towing vessels. This act authorized the Coast Guard to draft a regu- latory scheme requiring towing vessels to become inspected vessels and obtain a CertiÞ cate of Inspection (COI). There- after, the Coast Guard drafted proposed Subchapter M for title 46, U.S.C., which covers CertiÞ cation, Vessel Compli- ance, Towing Safety Management System (TSMS), Third- Party Organizations, Operations, Life-Saving, Fire Protec- tion, Machinery and Electrical Systems and Equipment, and Construction and Management of towing vessels. Distilling the ultimate cost of compliance isnÕt easy, but English does it as well as anyone. And, while he conceded that his numbers might be a matter of some debate, he also insisted that the Þ gures are certainly well within Subchapter MÕs vast Þ nancial ballpark. For Workboat Exchange partici- pants, the numbers gave plenty of impetus to sharpen the pencils and negotiate favorable terms for economy of scale and volume discounts. The Ritz Carlton at Amelia Island was arguably the perfect venue. What?s Covered & When: Equipment, Regulations, and You ? The proposed new rules Ð already in draft form that Eng- lish says will probably not change very much Ð cover Cer- tiÞ cation, Vessel Compliance, Towing Safety Management System (TSMS), Third-Party Organizations, Operations, Life-Saving Fire Protection Machinery and Electrical Sys- tems, Equipment Construction, and Management. According to English, one size will not Þ t all. Each entity must calculate the cost in dollars and time for any particular vessel or entity to come into compliance with Subchapter M. When will Subchapter M be implemented? ThatÕs anyoneÕs guess. For now, English insists that it is un- likely that it will be Þ nalized any time soon. Certainly; not this year. Beyond this, English had more dire predictions. Some of the 1,059 companies and 5,208 towing vessels, he said, will probably Ògo the way of the dinosaur.Ó Some estimates, he added, have the rate of attrition Ð whether that entails consoli- dation, failure or outright exit from the industry Ð at as much as 20 to 33 percent. And, the cost of compliance will be passed MaritimeProfessional.com Subchapter M Looms Operators and Suppliers RespondMay 201310 MNMN May2013 Layout 1-17.indd 10MN May2013 Layout 1-17.indd 105/3/2013 12:40:04 PM5/3/2013 12:40:04 PM