Page 28: of Marine News Magazine (November 2019)
COLUMN SAFETY MANAGEMENT SYSTEMS third-party registration and oversight, typically provided and implementing the SMS can be quite modest, or as by IACS classi? cation societies and registering bodies. This much as $50,000 or more. requires annual of? ce audits and vessel audits. Based on Unless you are in the safety business, safety doesn’t gener- the size of the operation and navigating areas, this type of ate revenue. Safety cultures and management systems prevent system may be a requirement. loss, and in many cases, signi? cant ? nancial loss. Hence, the
Other domestically regulated management systems in- properly implemented SMS, which addresses and mitigates clude Subchapter M Towing Safety Management System risk, is a constantly evolving return on investment.
(TSMS) which applies to the tugboat and towing vessel In actual practice, the most signi? cant variable to the sector. This also requires Third-Party Organization (TPO) success of the operation, outside of equipment CAPEX, oversight. There are currently ten USCG approved TPOs. will always be the employees operating the equipment.
Other voluntary safety management systems are sup- Safety Management Systems place great emphasis on em- ported by industry associations such as Passenger Ves- ployee training and resources designed to minimize inju- sel Association’s (PVA) Flagship Management System or ries in the workplace. Eliminating those injuries can all
American Waterway Operators’ Responsible Carrier Pro- add up to a much more successful business. As an example, gram (RCP). Importantly, Safety Management Systems consider the following scenarios: can be designed for any size operation or industry. • A general crew claim with a minor injury and the
Safety Management Systems that require third-party crewmember goes to a reputable doctor can be resolved oversight will be more expensive due to the registration for $10,000 to $20,000.
process and ongoing audits throughout certi? cation. • A general crew claim with a minor injury and the
The costs will be relevant to the size of the operation and crewmember goes to a doctor that leverages the ? eet. A small, one boat operation might spend s much as injury can cost upwards of $100,000.
$15,000 annually, whereas that cost for a larger operation • A ‘no liability’ passenger claim that involves an could increase exponentially. outside attorney can cost the vessel operator from $200,000 to $500,000 in investigation and defense costs.
YSTEM EVELOPMENT ECOUPING THOSE OSTS
S D : R C • A ‘no liability’ passenger claim that involves simple
The development and implementation of a SMS will out of pocket medical expenses is usually resolved for vary by the type of SMS the operator selects. The greater no more than $10,000.
the oversight, the greater detail and time needed for the • A Hull & Machinery claim can reach $300,000, system to be implemented. Most certi? cation audits will not counting off hire time and loss of operating require 90 days of record at a minimum to sit for a registra- revenues on charter, etc.
tion audit. The development phase of the SMS, including risk assessment, program and procedure development, and L DEGAL EFENSE training can take anywhere from a few weeks to months to It doesn’t matter if the organization transports oil, con- complete. The additional costs associated with developing tainers, dry bulk, or even passengers; waterborne com-
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