Page 43: of Maritime Reporter Magazine (February 2004)

Ship Repair & Conversion

Ship repair yards around the world are debat- ing the means and methods to best implement the ISPS code by the July 2004 deadline.

Pictured are Bro Seima (81,351 dwt) and Gas

Al-Gurain (49,874 dwt) in for repairs at ASRY.

The cost of complying could be high - but not as high as not complying

John Riding, director of Marico

Marine, speaking at Ship Repair &

Conversion in London, presents a rosy picture for the future of ship repair by pointing out that freight rates have not been so high for years and some owners, such as bulk carrier operators are enjoy- ing a rare opportunity to seriously invest in maintenance. The busy state of build- ing yards means that "keeping an older vessel in service longer has great com- mercial attraction." said Riding. He believes that some repair yards have the potential to make a return for the first time in a long time.

However, there is a fly in the ointment in the form of the ISPS Code.

The code as has implementation date of July 2004 and applies to all passenger ships, including HSC. cargo ships 500 grt and upwards and mobile offshore drilling units.

It also applies to all port facilities serv - ing ships engaged in international voy- ages. Riding explains that "port facilities are nice IMO words used to describe ter- minals." While a government can decide the application to terminals used mainly by domestic trading vessels, terminals serving internationally trading vessels cannot be excluded, which means repair yards are implicat- ed as port facilities.

Under the code, vessels trading i n t e r n a t i o nail y must keep a formal record of security arrangements at the last ten terminals and. it is a SOLAS requirement that this is open to inspec- tion on arrival at the next terminal.

This is vital if an owner's next port of call is the U.S. or Australia as both have declared a serious stance on introduction from July 2004.

Riding says; "owners of high profile ships, such as passenger or gas. have a potential commercial need to be selec- tive about which terminals they visit." which may well include limiting selec- tion of repair yards to those able to maintain the security interface to meet the needs of owners.

Riding explains that this is not the end of it as under the ISPS Code the ship also has a right to request a 'Declaration of Security' from the port facility, which "We know that the requirements of the ISPS

Code will effect our operations," — Malcolm

McLaren, president of

Allied Shipbuilders is used when the terminal is operat- ing under a lower state of security than the vessel. To sign up for the dec- laration a yard needs the core com- ponents of the code in place from a commercial per- spective. "We don't think ship repair terminals can do with- out the code but in the UK at least, there is as yet no driving force from the regu- lator to get things moving." says Riding.

To get the ISPS Code in place the yard must have a Trained Facility Security

Officer and a vulnerability assessment needs to be completed by a Recognized

Security Organization. Once the vulner- ability assessment is complete, a securi- ty plan needs to be created and approved. This plan covers a number of set areas, including ongoing audit and testing and allows movement through three levels of security - the level of security being applicable to either ship type or the ongoing level or threat assessment. Riding warns, "the plan must have procedures to achieve this."

Riding said that ensuring the identity of flexible contract workers will present a challenge for ship repair yards as will the management of spares and inventory on its way to a vessel from a third party.

He also points out that "improving secu- rity to know what is happening in way of underwater inlets and other ports of a higher risk vessel could be expensive."

Reactions around the world to the

ISPS Code and its effects are mixed.

Some, such as Metalock Brasil, do not believe that it will have a great impact, as it is not a shipyard. Sean Jansen, marketing representative for Dorbyl yard in South Africa has a pretty relaxed attitude saying, "the code will be imple- mented and it certainly has its pros and cons. The security level will reach a new level and the movement of people will be restricted."

However, most yards are taking the implementation of the code very seri- ously. even if they think it will not have a dramatic impact on their businesses. "Yes. we know that the requirements of the ISPS Code will effect our opera- tions," says Malcolm McLaren, presi- dent of Allied Shipbuilders in Canada. 38 Maritime Reporter & Engineering News