100m gt strong, International Registries and the Republic of the Marshall Islands Registry prove that quality and safety are not mutually exclusive.
When International Registries, Inc. and its affiliates (IRI) and Republic of the Marshall Islands (RMI) Registry recently pushed through 100 million gross tons, the impressive number kept RMI firmly planted in the number three position within the ranks of global open registries. And, yet, that enviable market position obscures so many other metrics which are more important. With a world-leading average bluewater vessel age of just 7.9 years, IRI’s safety and quality numbers – according to ICS, the U.S. Coast Guard and the IMO – are even more impressive. How they achieved those metrics is the real story.
Over time, IRI, who provides administrative and technical support to RMI, has perfected the decentralization of Registry services. According to William Gallagher, IRI President, one of the key competitive advantages of a quality flag state is the ability to provide competent and timely services to clients, anywhere in the world. He adds, “The backbone of the organization is truly the experienced maritime personnel positioned in our network of 25 worldwide offices. Shipowners are able to reach a Registry representative in their own time zone and language, using a 24/7 duty officer system that enables industry stakeholders to reach a representative in emergency situations.” Beyond this, says Gallagher, “Our robust vetting process for ships entering and remaining in the Registry enables us to ensure that only quality owners and operators make up the fleet of the RMI Registry.”
At local RMI offices, technical and marine safety status boards enable RMI personnel to ensure timely responses, even when an event crosses from one time zone to the next. These status boards also enable personnel to see all issues associated with a particular vessel.
Decentralization: The key to Quality and Safety
In most business models, when volume goes up, the quality correspondingly goes down. Not so with RMI. Growing from just 39 vessels and 2 million gross tons in 1990 to 100 million gross tons and more than 2,250 vessels today, fleet quality nevertheless remains at an enviously high level. And, the numbers simply don’t lie.
RMI’s white list status on the Paris and Tokyo Memorandums of Understanding (MoUs) and being included on the United States Coast Guard’s (USCG) Qualship 21 roster for nine consecutive years is unprecedented. Started in 2011 by the U.S. Coast Guard, QUALSHIP 21 recognizes high-quality vessels and their commitment to safety and quality. Bill Gallagher explains the ratings even further. “The scorecard from the port State control (PSC) jurisdictions is really a clear measurement of how a Registry is doing. While the RMI fleet has grown significantly on an annual basis, it has still been able to maintain the same level of quality on a global basis with the various MoUs.”
Separately, the latest ICS “Flag State Performance Table” has the Marshall Islands with no less than 18 out of 18 “positive performance ratings” or Green indicators. Very few other flags can boast the same performance, still fewer in flag fleets as large as the Marshall Islands. The numbers did not come about by accident. That said; IRI is not sitting on its hands.
Improving IRI’s unique, decentralized Registry model is an ongoing process that involves further refinement of internal systems through IT resources to enhance the ability to communicate, monitor and deliver the same quality services around the world, regardless of how big the RMI Registry becomes. As RMI builds up its own quality department, the decentralized model will be a big part of it. The Maritime Services Group (MSG), headed by COO John Radisch, operates out of London. Gallagher adds, “I like the fact that our COO is in London. He can catch up on everybody’s day. He talks with Asia at the end of their day, Europe during his work day and in the afternoon, he’s coordinating with headquarters.”
Quarterly meetings of the MSG are aimed, in part, in improving the RMI duty officer system. In place since 1991 on a 24/7 basis, the program was, at one time, solely U.S. based. Not anymore. With offices in Asia, the Middle East, the U.S. and West Coasts, ship owners and classification societies can call at any time with any problem.
At RMI, business is business, but that doesn’t get in the way of maintaining a quality registry. Gallagher is adamant: “Since we are a privately run maritime registry, I think the biggest challenge we have is in balancing commercial operations and our responsibility as a flag State Administration. The decision to further decentralize the RMI Registry’s maritime operations was with a vision to more efficiently provide services wherever an RMI flagged ship may call and to show shipowners/operators that the RMI Registry does take its responsibilities as a flag State administration seriously. Providing timely registry related services to a growing global fleet from one location would have been impossible; a delayed response from the Registry can mean additional time spent in port which can cost owners money.”
Changing Roles: Increased Responsibilities
As the role of the flag State has changed during the past decade, participation at venues such as the International Maritime Organization (IMO) and the International Labour Organization (ILO) ensure balance in actual practice with regulation has become a critical part of the business. That’s because even as the proliferation of maritime regulations impact the way a registry does business, Flag States themselves ratify important international conventions to ensure that a proactive approach is taken with respect to marine safety, security, environmental protection and social responsibility. Gallagher adds, “Flag States should, in turn, promptly inform shipowners/operators of such ratifications and provide them with a clear explanation in good time, with guidance on how to tackle new regulations so that their ships can continue to trade without delay or disruption. Our participation with the IMO and ILO, and our work with owners in implementing international conventions means that we are allocating more resources to this area.”
That ‘allocation’ means developing the right personnel. In the last five years alone, RMI has hired personnel specialized in areas such as LNG, and offshore support and production vessels. Only in this way, explains Gallagher, can flag states provide timely support to ensure compliance and avoid unnecessarily port delays. “By learning to grow and change as the industry grows and changes, the RMI Registry is able to work with owners and PSC locally to quickly respond and resolve any issues. This has enabled us to continue to rank high in terms of flag State performance.”
High Class: Partnering with IACS
At RMS, it is no accident that all bluewater tonnage is IACS classed. Bill Gallagher, for good reasons, wouldn’t have it any other way. With more regulations in the pipeline and a corresponding increase in PSC inspections, the importance of working with a reputable ‘class’ society will increase. Cost is of course a major consideration, but ensuring that a ship is safe and compliant will in the long run save owners time and money.
For IRI and RMI, it simply comes down to the standards that IACS class societies maintain and the resources that they have. At RMI, Class does all the ISM and the MLC audits. Gallagher says, “The reason we take that approach is that they have so much experience, resources and training. Interestingly, we’re the only 100 percent compliant group in terms of MLC and ISPS. We debated internally as to whether we could do some of these things internally and we decided that IACS class societies were in a better position to do that.” Gallagher puts his money where his mouth is. “Understand that from a revenue standpoint, that’s revenue we’re leaving on the table. But, it’s not about money; it’s about doing the right thing. We had already been delegating ISM and ISPS to class at that point, and when MLC came along we decided to do the same thing. That doesn’t mean that we don’t get heavily involved – we’ve done MLC seminars around the world for our owners. It works well for us. The proof is in the pudding with the QUALSHIP ratings. If you look at our success, a lot of that has to do with IACS.”
Vetting: A Two Way Street
If an owner/operator does not meet the standards of the RMI Registry, then that vessel may be turned away. At one time, RMI rejected one out of three vessels, but, says Gallagher, that has changed. “Owners/operators no longer apply for registration with the RMI Registry if they know that their vessel will not meet our standards. We politely tell them No.”
IRI maintains that its intent has never been to be the largest Registry in the world, but instead the choice of flag for quality owners and operators. IRI defines a quality shipowner/operator as one that takes marine safety, security, environmental protection and social responsibility seriously. Gallagher insists, “We have owners who will lay up a ship even when there are commercial pressures as they look at those three elements and do the right thing.” In turn, though, he knows that owners are also vetting the Registry with their own criteria. The numbers say that they like what they see.
In a time of razor thin operating margins that translate into leaner and meaner operators with fewer back office staff, today’s owners and operators sometimes can’t keep a lot of in-house expertise. Gallagher says they often look to the flag state for help. “In turn, we have a lot of technical help in house – here and overseas. It’s an issue of resources. It’s a collaborative process between flag state, class and the operator itself. You simply can’t do it alone anymore.”
Accidents will happen. That said, and in its latest accounting report, ICS shows no recent Marshall Islands casualties. When something does occur, though, RMI has a strong, primarily in-house group that investigates casualties. Gallagher adds, “We rely a lot less on contract inspectors then we did just five years ago and we conduct worldwide training seminars for our people that last as long as two weeks. We strive for uniformity in our safety inspectors.”
RMI’s Modern Registry: Evolving, International and in it for the Long Haul
Bill Gallagher ticks off the metrics that epitomize the RMI business model, one by one, without hesitation. “We’ve been around since 1948. We’ve plowed the money back into the business and we’re in this for the long haul. We internationalize – but in one standard. Whatever answer you get in Europe or Asia is the same answer you’ll get in the United States. As you grow, you have to staff up to match the size of the fleet. Sometimes, I can’t believe that we have 170 folks working overseas, but we do. These aren’t contractors. In 2000, we had just five offices overseas and 30 employees.”
Pointing to the 25 RMI offices spanning the globe today, Gallagher summed it up for MarPro: “100 million tons is nice, but we’re not going to rest on our laurels. Because the business can’t be run exclusively from the United States anymore, our expertise is truly international. First and foremost, we’re a flag state administration and we’re not involved in any other ancillary businesses. Along the way, we’ve changed the type of people that you bring in to run a registry. You need banking, finance skills and legal savvy, just as much as you need the operational and technical expertise. We’ll keep innovating. A big job is to recruit people who have the expertise that can replace the current generation of flag state people. We’re doing that.
And, it appears to be working. There IS strength in numbers. Who knew?
(As published in the 1Q 2014 edition of Maritime Professional - www.maritimeprofessional.com)
Peter R. Gallagher has been appointed director of marketing for Rutland Maritime Management Corporation, 15 East 26th Street, New York, N.Y. 10010, a through transportation consulting and project company which has been involved in solving transportation programs in Latin America, Nigeria, Turkey
Ship repair activity in New York is reviving and this has led to the formation of the New York and New Jersey Dry Dock Association, an organization that represents eight drydock operators and has some 50 associated members who are subcontractors or marine equipment suppliers. According to Michael
Leveraging 27 worldwide offices, the RMI Registry has been gaining market share year-on-year. Surging tonnage and a solid record for safety has pushed the registry to the head of the class. When the Marshall Islands Registry announced that it had become the world’s second largest – at a whopping 223,262
., since 1983, has been named vice president for operations with responsibility for all phases of new ship construction, it was recently announced by William T. Gallagher, executive vice president. In his new post, which is effective immediately, Mr. Vought will be responsible for managing the yard's larges
Eleven business and military men who are U.S. Merchant Marine Academy graduates were honored f o r their professional achievements by the Kings Point Alumni Association at a dinner on October 6, at the Academy's Officers' Club. Six other alumni were cited for their service to the Alumni Association.
commerce can fall well short of what is considered to be satisfactory performance. The Marshall Islands Registry is an excellent case in point. William Gallagher, President of International Registries Inc., and providers of administrative and technical support to the Republic of the Marshall Islands (RMI)
A new emergency oil spill control organization for the Port of New York has been formed at Perth Amboy, N.J. The company, Clean Venture, Inc., will provide quick-strike coverage of the entire harbor from bases in New York and New Jersey for oil spills of any size. This first-of-a-kind effort represents
Alfred C. Bruggemann, outgoing president of the New York and New Jersey Dry Dock Association, has announced the election of Robert L. Massa as president for the new term. Mr. Massa was born and educated on Staten Island, N.Y., and attended Wagner College and Rutgers University. After serving his
Energy. We start 2014 with great energy and optimism for a robust and prosperous year in this, the most international of all businesses. That enthusiasm, however, should be tempered with the knowledge of what is in store for maritime stakeholders in terms of regulatory, financial and operational pressures;
available. Luncheon speakers will feature Ron Kiss, Director of Shipbuilding, Office of the Assistant Secretary of the Navy (RD&A), and Rear Adm. William J. Flanagan Jr., Chief of Legislative Affairs. The Thursday evening banquet speaker will be Vice Adm. John W. Nyquist, Assistant Chief of Naval
Daniel H. Conway and Adam R. Poh. 3:15 p.m.— " T e c h n i c a l Documentation Management in the Era of the Paperless Ship," by John Chickering and Williams B. Quails 4 p . m . — " T h e Surface Ship Maintenance Challenge," by Kenneth S. Jacobs and Bert r am D. Smith Jr. Blue Room—Session 2C Moderators:
Puritis, was appointed Vice President al Institute presented its Connie Award as SVP of Business Development and of Academics. Chief Engineer Ray to William J. “Bill” Shea, CEO of Di- Innovations Learning Practice Lead Blanchet serves as the Vice President of rect ChassisLink. J. Christopher Lytle, and
.com Email email@example.com 4 Editor 5 Joseph Keefe firstname.lastname@example.org +1 704 661 8475 6 Contributing Writers 7 William P. Doyle Rick Eyerdam 8 Patricia Keefe Barry Parker 9 William Stoichevski 10 Publisher John C. O’Malley email@example.com Associate Publisher/Editori
and number of research undertakings are mostly targeted for industrial and national clients, but the results speak of wide-ranging societal impact. By William Stoichevski Credit: Screenshot of SINTEF video October 2019 MTR 28 MTR #8 (18-33).indd 28 10/8/2019 10:04:57 A
as much plastic into the basin as they were berates through the marine food web. before World War II. The research team included Scripps paleobiologist William The postwar period also showed a greater diversity of plas- Jones and biological oceanographer Mark Ohman. The sedi- tics including fragments of
on Offshore Wind could be Claudio Paschoa, Brazil instructive and interesting, if for no other reason, my own edi? cation. I posed the challenge William Stoichevski, Oslo to Tom Ewing, a veteran government reporter who contributes regularly on the maritime side of our ledger, as Tom is quite adept
on the Rise At Norway’s premier research body SINTEF the breadth and number of research undertakings speak of wide- 34 ranging societal impact. By William Stoichevski Ocean Observation 34 OceanOBS ‘19 Held once per decade, OceanObs’19 focused on Innovation Expanding Ocean Observations By Justin
T TECH FILES New Online Marine Insurance Program 360 Coverage Pros poised to modernize the professional liability insurance buying experience for mariners. 360 Coverage Pros launched a new Marine Li- operators, either directly or through their insurance cense Insurance Program for mariners that offers
- Brazil Peter Pospiech - Germany 80th Anniversary, which falls in tandem with this, our Marine Design Annual, I opening an of? ce in Houston to serve William Stoichevski - Scandinavia opted to take a different approach and discuss “what will be.” the Americas. As the headline states, Production In overstating
headquartered in Seattle, Wash. publications, print and electronic. Goldberg Stoichevski Murray Goldberg is CEO of Marine Learning Systems, maker of William Stoichevski is MR’s correspondent in Norway. MarineLMS. van Hemmen Grasso Rik van Hemmen is the President of Martin & Ottaway, a marine Jeanne
in the tug and barge cal engineering from Auburn Univer- Permanent CEO sity and an MBA from the College of ? eet and later serving as a senior port William and Mary. Separately, Premo captain. He has a bachelor’s degree in The Massachusetts Port Authority marine transportation from the Mari- (Massport)
. In other words, the one were to venture west toward the historic Stokes Land- perfect venue for workboat newbuilding and repairs. ing made memorable by William Bartram in his 18th Cen- The customers of SJSB are about 70 percent American tury explorations, at the end of the road, he or she would owned. That’s
was entirely free of copper, which was a common biocide For added durability in the high-wear areas of the Mil- alternative to TBT. As a result, Sherwin-Williams developed linocket’s four waterjet tunnels, MSC selected Nova-Plate SeaVoyage Copper Free in 2008 as a solvent-based, copper- UHS Epoxy, an ultra-high-
COATINGS Copper-Free Antifouling Coating Copper-Free Antifouling Coating Credit: The Sherwin-Williams Company Keeps MSC Moving Full Speed Ahead USNS Millinocket Application Validates Effective Use on High-Speed Vessels By Michael Manetta and Mark Schultz nsuring that vessels maintain operational ef?
micro-seg- differentiator if cybersecurity is baked-in, part of the de- mentation and granular perimeter enforcement based on sign. Forbes contributor William Saito said it well when users, their locations and other data to determine whether he compared cybersecurity to the brakes of the very swift to
Director – Rail, Marine and ing Ltd provides strategic and Volume 30 Number 10 Power Generation for Sherwin- tactical support, including analyt- Williams Protective & Marine Coat- ics and communications, to busi- ings. He has 15 years of experi- nesses across the maritime spec- ence in the coatings
University. enced in Marine Engineering and Na- Texas, and he received a BS in Naval val Architecture. Architecture and Marine Engineering Sherwin-Williams’ Schultz from the University of New Orleans. Wins Award of Merit PVA Announces New Emerging Leaders Committee Coast Guard Foundation Hires
Service Award for her of South Carolina and was awarded a de Jordán is taking on expanded re- continual championing of ports and master’s degree from William Paterson sponsibility for all of Crowley’s sup- inland waterways. She was presented University in Communications. ply chain services throughout
to begin integration in 2015. make its way into the ? eet and is produc- same time,” said Dr. Erick Iezzi, senior thus far. Recently, Sherwin-Williams The pigment combinations underwent ing early, positive results. research chemist in the Center for Cor- won the Society for Protective Coat- testing
Brazil Peter Pospiech - Germany is special because for the ? rst time in my tenure, we have a father/son duo authoring one of which grace this month’s William Stoichevski - Scandinavia 2 articles, better known as DiRenzo . cover, is a compelling story, the real Production I have known the elder DiRenzo
, Hampshire, UK Broussard, Louisiana Fall River, Massachusetts President/CEO: William M. Brown No. of Employees: 50,000 www.l3harris.com L3Harris L3Harris Unmanned Maritime Systems division is helping to mission of over 14 hours in
such as surveying highly Solutions dense areas (bridges, buildings, etc) Hayle, U.K. or where only a single antenna can be President/CEO: James Williams used. This technology allows robust and No. of Employees: 4 consistent performance even in low dy- www.unmannedsurveysolutions.com namics survey
movement of phil- Tom Mulligan, Ireland anthropic oceanic investment. Philanthropy in this space is certainly now new, but Wendy Claudio Paschoa, Brazil William Stoichevski, Oslo and her husband Eric Schmidt have kicked this to a new plateau, led by Schmidt Ocean Institute’s mobile research platform Falkor
Elaine Maslin, Aberdeen Tom Mulligan, Ireland Minehunting UUV for Shallow Water Covert Littoral Expeditions (MUSCLE) experimen- Claudio Paschoa, Brazil William Stoichevski, Oslo tal platform. This story is followed by a one-on-one interview with Dr. Catherin Warner, Director of the NATO Center for Maritime
.MaritimeLogisticsProfessional.com 3 Email firstname.lastname@example.org Editor Joseph Keefe email@example.com +1 704 661 8475 4 Contributing Writers 5 William P. Doyle Rick Eyerdam 6 Patricia Keefe Barry Parker William Stoichevski 7 Publisher John C. O’Malley 1 Tom Ewing is a freelance writer specializing