Justification

Efforts in recent years to improve maritime safety and marine environment protection have mainly concentrated on regulating vessel management, vessel operations, vessel safety and improving the training and qualification requirements for seafarers. This has been achieved through the implementation of the International Safety Management Code(ISM Code) which entered into force on 1 July 1998 and the revised International Convention on Standards of Training, Certification and Watchkeeping(STCW 95)which entered into force on 1 January 1998.

Little attention has been given to how effectively governmental agencies fulfil their flag or port State responsibilities particularly in relation to how effective their administrative arrangements are and the means by which they introduce international treaties into domestic law.

This project will examine the various organizational structures, administrative arrangements and methods of work used by APEC Economies as well as their means of implementing international treaties into domestic law. The second phase of the project will provide a range of options which APEC Economies may wish to consider in more depth to assess their suitability for improving the effectiveness of their maritime safety administrative and organizational arrangements.

04. Eligibility for APEC Projects

APEC Leaders

This project will promote close cooperation between the APEC member economies by sharing the information on the maritime safety administrative system of each member economy and by identifying an optimum administrative system for maritime safety. This approach reflects the discussion in the Summit Meeting in Canada on November 25, 1997, confirming the objective of continuous economic growth of the countries in Asia-Pacific region, through trade and investment liberalization, facilitation, economic and technical cooperation. Also the need for common efforts to cope with a maritime accident had been emphasized. It also means the Osaka Action Agenda of November 19, 1995, which sought a cooperative program in various fields of the industry in Asia-Pacific region is reflected in the project proposal.

Moreover, the contribution to the protection and improvement of maritime safety and marine environments through this project could be regarded as the direct implementation of the agreement adopted at the Summit Meeting in the Philippines on November 25, 1996 to develop a continuous program for protecting marine environments in the Asia-Pacific region.

APEC Transportation Ministers

This project is consistent with the second APEC Transportation Ministers meeting held in June 1997 which emphasized that high priority of the Transportation Working Group should be given to the transportation safety in APEC region and that environmentally sustainable transportation is important to improve the quality of life for people in the region, and also with the principles enshrined in the Declaration of the First Joint Ministerial Conference of the Paris and Tokyo Memoranda of Understanding on Port State Control held on March 24~25 1998.

APEC Transportation Working Group

The study on the effectiveness of maritime safety administrative systems is essential to the economic development of Asia-Pacific region and is important in promoting the efficiency of transportation system of the region. In the maritime transportation field, this study reflects the ministerial direction to the Transportation Working Group in 1997, which emphasized the need to create a competitive and safe maritime transportation environment.

Transportation Ministers directed the TPT WG to "establish an Experts Group on Maritime Safety to address maritime safety concerning in the Region" and urged "economies to work closely with international organizations having competence in the field, such as the IMO, to develop programs and mechanisms to promote the implementation of and compliance with existing international rules and standards adopted by these organizations."

06. Linkages-Organizations to be benefited

The output of this project can be utilized as a reference guide by member economies in their decision making regarding choosing an optimum administrative/organizational structure for maritime safety by comparing the administrative systems for maritime safety with those of other member economies.

Also the implementation of this project will contribute to the continuous development of APEC member economies and the establishment of mutual information exchange and technical cooperation among the member economies, which is consistent with APEC's goal.

Meanwhile the business/private sector and non-governmental institutions such as the shipowner, shipper, underwriter etc. will benefit from the following points :

?/font> government of member economy : through the introduction of an efficient and effective administrative organization for maritime safety and effective restructuring of the organizations the policy and planning functions and effective national implementation of international conventions. Also the investigation of operational procedures for maritime safety and incident investigation system of other member economies will provide essential information to assist member economies to investigate maritime accidents ;

?/font> shipowner : to prevent unnecessary expenses to the shipowner caused by delay or a lack of maritime safety information provided by the port State. Also to reduce non-economic burden through the creation of equitable and competitive environment for maritime transportation between the member economies by reducing "sub-standard shipping" through more effective safety management systems and better meeting of flag state responsibilities.

?/font> shipper: as the shipper will be able to have full understandings of the maritime administrative information of relevant member economies at the time of import and export, the reliability on the sea transportation service could be increased, which results in the facilitation of trade between member economies;

?/font> underwriter: through the establishment of more effective and efficient maritime safety management and administrative systems, marine casualties will be decreased and the extent of damage will be also reduced which in turn will reduce the cost burden of the underwriter which should flow on to the shipowner and eventually the consumer;

?/font> Community: will benefit from improved marine environmental protection and reduced pollution.