This is an application for funding under the [] Operational Account
                                                          [    ] TILF Special Account

1. Name of Project: International Symposium on Safer Shipping in the APEC Region

2. Group Responsible: Transportation Working Group is taking responsibility for the project and the dissemination of its results.

OBJECTIVES

Objectives

The objective of this project is to bring together representatives of all players in the international maritime industry in the APEC Region to develop dialogue and exchange views and information on factors affecting the development of a safer shipping culture within the region. It is expected that the final outcome would be a comprehensive series of options arising from the discussions that had taken place in various workshops and seminars, which could be adopted by member economies to improve maritime safety within the region.

Justification

Safer shipping results from the effective involvement of all parties involved in providing, regulating and using shipping and related services. A number of projects are being undertaken or proposed under the auspices of the APEC TPT-WG which are examining various factors affecting safer shipping in the region. These include Phase I of the Safer Shipping in the Asia Pacific Region (Australia) and the Optimum Maritime Administrative Structures and Legal Frameworks for Safer Shipping in the APEC Region (Korea). The Experts Group on Maritime Safety (within the Transportation Working Group) has developed a High Priority Safety and Proposed Initiatives List. It is expected that the Symposium would build on the outcomes of each of these activities as well as examine the recent activities of other relevant international forums. The Symposium will contribute significantly to improved liaison and exchange of knowledge and information between members across a broad range of safety related subjects, and between members and other maritime forums. It is suggested that the kind of exchange which will occur at the Symposium would not occur in other safety fora such as Tokyo MOU meetings, Heads of Safety Agencies, IMO and OECD MTC meeting.

4. How this project responds to the priorities set by APEC Leaders and Ministers, as evidenced by parts of the APEC Action Agenda including Action Program, work plan, vision statement, and policy statement that relate to this project.

APEC Leaders

This project is responsive to the sustainable development and economic and technical cooperation priorities set by APEC Leaders which was reaffirmed at their meeting in Malaysia in November 1998. The project is consistent with the objectives of the APEC Framework for Strengthening Economic Cooperation and Development which is intended to reduce economic disparity among APEC economies, to improve the economic and social well being of people and to achieve sustainable growth. In November 1997 APEC Ministers reviewed progress achieved within the Framework and recognised that "an efficient, safe and integrated regional transportation system is critical to support growth."

The project is also consistent with the APEC Leaders summit held in November 1996 which resulted in a direction to Ministers to develop specific initiatives to implement a work program for sustainable development in APEC, including sustainability of the marine environment.

APEC Transportation Ministers

At their meeting in June 1997 in Victoria, Canada, APEC Transportation Ministers affirmed "that transportation safety and security in the region must remain one of the highest priorities of the Transportation Working Group and also recognised the importance of environmentally sustainable transportation to improving the quality of life for APEC citizens".

Transportation Ministers directed the TPT WG to "establish an Experts Group on Maritime Safety to address maritime safety concerns in the Region" and urged "economies to work closely with international organisations 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 organisations."

APEC Transportation Working Group - Experts Group on Maritime Safety

The terms of reference for the Experts Group on Maritime Safety state that: "The Group’s objective will be to identify maritime safety problems in the Region and propose recommendations for improvement" and also that "The Group shall be guided by the fundamental principal that its work emphasizes co-operation between and amongst economies." This project proposal is an appropriate practical program of work for the Experts Group focussed on commercial and economic constraints on maritime safety, which could include work relating to classification societies. It will build on the findings of current projects, as well as on the results of other proposed initiatives by the Experts Group under its High Priority Safety List, and the recommendations and observations resulting from the discussions on Canada’s survey on the identification of maritime safety issues in the region.

A significant reduction in sub-standard shipping in the APEC region will reduce the threat to the marine environment of shipping related accidents. In this respect, safer shipping practices contribute to initiatives to promote sustainability of the marine environment.

Consistent with the Osaka Action Agenda objectives of liberalisation and facilitation, the TPT WG’s Transportation Action Programme states that APEC economies will promote the implementation of International Maritime Organisation (IMO) standards, regulations and safety measures. Safety of shipping is considered a priority issue for the IMO.

The use of sub-standard shipping creates an unfair competitive advantage for those willing, or able, to circumvent international safety standards. A reduction in the employment of such ships will promote free and fair competition in shipping and contribute to the longer-term efficiency and reliability of maritime services. In this respect this project supports the APEC objective of liberalization and facilitation in international trade.

6. The kinds of institutions in member economies intended to benefit from the results of the project.

A significant reduction in or removal of substandard ships from the region as a result of the transfer of knowledge between member economies will enhance safer shipping and may provide benefits to:

• Maritime safety agencies: As maritime safety improves in the region, the cost of administration should decline allowing the reallocation of resources to more critical areas;
• Shipowners: As substandard tonnage is forced out of the market, shipowners and operators could expect greater demand for quality tonnage resulting in fairer competition in freight charges;
• Seafarers: As the incidence of unsafe vessels declines, the welfare and safety of seafarers will improve.
• Insurance companies: As other industry players accept a greater share of liability for risks and as vessel casualties decline, insurers may have fewer claims;
• Importers and exporters: The benefits for importers and exporters will be accrued through greater reliability of shipping services; and
• Consumers and the Community: The benefits from long-term competitive shipping for consumers will be similar to those for importers and exporters with respect to greater reliability of shipping services. In addition, the impact of sub-standard shipping on the marine environment should diminish affording considerable intrinsic benefit to the community as a whole.

The program for the Symposium will be designed to attract participation from each of these groups.

07. How the participation of the business/private sector and non-governmental institutions has been sought or will be sought. Illustrate how the business/private sector are involved in the planning and delivery of the project and whether any other APEC fora have been consulted

The participation of the business/private sector and non-governmental institutions in the Symposium will be essential to identify (and possibly develop) practical mechanisms to counter sub-standard shipping. It is expected that businesses associated with the shipping industry including ship owners, shippers, classification societies, marine insurers and other financial institutions that influence decisions taken affecting safety outcomes in the industry will actively participate in and provide sponsorship for this symposium.

08. How this project will add "APEC value" (as to the potential benefits of implementing projects) in the context of other work that might have been done elsewhere in the same field.

Through promoting safe shipping practices and improving the availability of safe shipping, this project will:

• implement APEC Transportation Policy objectives;
• promote the implementation of and compliance with IMO standards as agreed in the Osaka Action Agenda;
• contribute to the efficiency and safety of maritime transport;
• contribute to increased protection of the marine environment and the safety of seafarers; and
• assist sustainable growth and development of the Asia-Pacific region for the common good of its people and their equitable participation in the international shipping industry.

The Symposium will provide a unique forum for dialogue between the key players in this sector. The Symposium will be interactive, encouraging exploration of issues of mutual interest and development of possible solutions. By encouraging participation from each of the sectors identified above in the one forum and covering a range of related topics, the Symposium will provide an opportunity which does not presently exist in current international or APEC forums.

09. An indication of how the project might contribute to related projects or activities in APEC or elsewhere.

This project complements:

• OECD Maritime Transport Committee research on the unfair competitive advantage obtained by operators of sub-standard ships. It complements and builds on an OECD project to address sub-standard shipping;
• IMO efforts to improve safety of shipping operations including ISM Code implementation and moves to strengthen flag state compliance;
• APEC TPT WG project proposals relating to the transparency of shipping policy and practices, and vessel classification capabilities in APEC; and
• Objectives of the 1996 Strategy to Address Sustainability of the Marine Environment and the 1997 APEC Action Plan for Sustainability of the Marine Environment developed by the APEC Marine Resource Conservation Working Group which respond to the regional need for sustainable management of marine resources and the reduction and control of marine pollution.

10. Describe the deliverables of the project and demonstrate how it will meet the needs of the targeted beneficiaries.

The deliverable of this project is a three day symposium to be held in Australia to which participants from all economies and all sectors of the industry will be invited. Over the three days, the symposium will provide specialised forums for dialogue between interested parties on a range of safety related issues. Proposed areas for inclusion for discussion in the symposium are set out under Item 11 below.

The delivery of the symposium will contribute to the process of identifying mechanisms which are most effective in achieving shipping safety and finding methods for promoting and facilitating implementation of those measures in the APEC region. It is anticipated that this will be achieved through the transfer of knowledge and experience between all the players in the various maritime industries on existing and alternative mechanisms for achieving ship safety. It will be achieved through discussion and analysis of the outcomes of TPT-WG projects including Safer Shipping in the Asia Pacific Region and the Optimum Administrative and Legal Frameworks, as well as the outcomes of other projects being proposed to other TPT-WG sub-groups . The identification of the most effective mechanisms for achieving ship safety will allow each of the beneficiaries (described in paragraph 6) to determine how their resources can be effectively allocated to improve ship safety. In the long term, the discussions and analyses of experiences, mechanisms or measures undertaken during the symposium would provide the knowledge to encourage all industry players to adopt, and adhere to, practices to promote the employment of safe ships in the region.

METHODOLOGY

11. A concise description of the project’s methodology.

The project involves organising a three day international symposium to be held in Australia either late in 2000 or early in 2001. The target audience would be the industry groups described in Item 6 above. Speakers, experts and facilitators would also be expected to come from those groups and including other relevant international maritime safety forums.

The style of the symposium would be small discussion/working group seminars facilitated by an expert who would provide the initial contribution to start the discussion. Simultaneous sessions would run throughout the seminar, with rapporteurs to provide feedback to plenary reporting and discussion sessions. This format will encourage the maximum contribution of information from participants to the themes.

The themes presently being developed (and which will be revised based on comment from economies and other relevant forums) are as follows –

1. Ship Safety – including discussion on STCW, ISM, Seafarer Training, Crewing Conditions, Marine Incident Investigations

2. Environmental Protection - including discussion on oil spills, NATPLANs, sensitive sea areas, ballast water, fisheries, trade routes (sea lanes)

3. Technical – including discussion on IMO requirements, Port State Control, Search and Rescue, Satellite Navigation, Supply of Equipment

4. Shipping Business - including discussion on Protection & Indemnity, Insurance, Classification Societies, developments in Maritime Law

5. International and Regional Co-operation – including discussions on trade and economic linkages, international Conventions, MOU’s, links with Other Maritime Forums.

Discussion papers would be sought and used as the basis for stimulating discussion in the workshop sessions. These would be published along with reports from the rapporteurs on the outcomes of the discussions.

The funding is sought to enable the appointment of a professional conference organiser to make arrangements for the symposium. Funding is also sought to assist in payment of per diem and travel costs for speakers/workshop leaders who will not receive an honorarium. An organising committee for the Symposium would be established and would include Australia, as the project sponsor, representatives from co-sponsoring economies and any other economies who wished to participate in the organising of the symposium.

13. A timetable for the accomplishment of each component in (12)

14. The number of APEC member economies that will participate in this project. Please indicate the names of member economies participating in each component of the project as set out in (12).

Australia would oversee the project with assistance provide by Korea and Canada. All APEC economies would be invited to participate in the Symposium. Efforts will be made to ensure that the presenters, facilitators and panel experts at the Symposium are drawn from a wide range of APEC economies.

BUDGET

15. An itemized budget is at Enclosure 1.

16. A timetable for the drawdown of APEC funding requested for the project, including details of any advance payment or instalment payment requested and justifications for such requests.

17. Details of any request for waiver or exception from the normal APEC financial rules with justifications.

Not applicable

DISSEMINATION OF PROJECT OUTPUT

18. A plan for the publication and dissemination of the results of the project:

The results of the symposium will be put on the APEC TPT-WG website. The results will also be distributed to the IMO and the OECD Maritime Transport Committee. Economies will be encouraged to distribute copies of final reports from the Website to participating industry organisations. Copies of final documents will be available in electronic format for ease of distribution. One copy of the final documents will be available to each participant with additional copies able to be taken from the electronic version as required for circulation.

Assessability of results for the targeted audience

The targeted audience is members of the maritime industry and safety regulatory agencies of each APEC member economy. Results of the symposium will be measured in terms of the extent the target audience adopts any recommendations arising and the effectiveness of such recommendations in reducing the level of substandard shipping.

Publicity plan

Details of the Symposium will be widely distributed through the APEC region by using the APEC TPT-WG website, safety regulatory agencies in each economy and any available trade and industry publications in economies.

Member economies to determine the publicity given to recommendations within their economies.

Budget for publication and dissemination

The estimated cost for one electronic copy of the recommendations sent to relevant international organisations and each representative of the Member economy is US$ 10 per copy the cost of which is included in the total budget proposal

ASSESSMENT OF PROJECT

19. How the project proponent will assess whether he has met the criteria for APEC projects and how he will measure the impact of the project on expected beneficiaries.

 The outcomes of the project will be assessed in terms of improved maritime safety within APEC economies, the reduction of maritime incidents, a fall in the number of unsafe vessels detained by port State control inspections, and legislation or compliance mechanisms undertaken or adopted by Member economies in relation to the way business is conducted by the target audience.

B. UNDERTAKING BY THE WORKING GROUP/COMMITTEE

The (name of Working Group/Committee) undertakes that, working closely with the APEC Secretariat, due care has been taken that:

1. The line items for the APEC-funded parts of the budget for this project are within SOM-approved guidelines.

2. The costs for line items for APEC-funded parts of the budget of this project are justifiable.

and, with regard to the dissemination of results from the project, due care will be taken that:

1. Comprehensive quality control and professional editing, including factual precision and thoroughness, to ensure that the publication or other dissemination media will be understood by and useful/beneficial to the target audience, will be undertaken before submission of the publication to the printer or the APEC Secretariat.

2. Any output will be consistent with APEC’s publication policy.

The project has been reviewed, approved and prioritized by my Committee/Working Group before it is submitted to the BAC for review.

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SIGNATURE

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NAME OF LEAD SHEPHERD OR CHAIR (Please print)

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DATE AND PLACE

Enclosure 1

APEC OPERATIONAL ACCOUNT

ITEMIZED BUDGET FOR FINANCIAL YEAR 2000

This page was last updated on 12 March, 2008