1

PANAMA MARITIME AUTHORITYUPDATE

Prepared for:

INTERTANKO

LATIN AMERICAN PANEL

PRESENTATION CONTENTSPRESENTATION CONTENTSObjective:Objective: To update the distinguish INTERTANKO panel on the changes To update the distinguish INTERTANKO panel on the changes

and projects in the Panamanian Administration.and projects in the Panamanian Administration.

Contents:Contents:I.I. New registry requirements to for tankersNew registry requirements to for tankersII.II. CircularsCircularsIII.III. Casualty SectionCasualty SectionIV.IV. ComplianceCompliance SectionSectionV.V. Segumar Office RestructureSegumar Office RestructureVI.VI. Port State Control SectionPort State Control SectionVII.VII. SurveyorSurveyor’’s Trainings TrainingVIII.VIII. MARPOL 73MARPOL 73--78 Section78 SectionIX.IX. SystematizationSystematizationX.X. New buildingNew buildingXI.XI. Satellite MonitoringSatellite MonitoringXII.XII. Audits to Recognize OrganizationsAudits to Recognize OrganizationsXIII.XIII. Audits Audits byby International Maritime OrganizationInternational Maritime OrganizationXIV.XIV. New Changes to International RulesNew Changes to International Rules

NEW REQUIREMENTS FOR NEW REQUIREMENTS FOR REGISTRATION OF TANKERSREGISTRATION OF TANKERS

New procedures have been taking into account, New procedures have been taking into account, specially in regard to the technical compliance specially in regard to the technical compliance

of tankers before the registration.of tankers before the registration.

OBJETIVESOBJETIVES::Factual control over the fleetFactual control over the fleetFull oversight in technical aspects and structural Full oversight in technical aspects and structural condition.condition.To offer an easy and safe process of registration To offer an easy and safe process of registration according to the applicable requirements. according to the applicable requirements.

NEW PROCEDURES FOR THE EVALUATION NEW PROCEDURES FOR THE EVALUATION OF TANKERSOF TANKERS

SubmissionSubmission of the Technical Documentsof the Technical DocumentsEstablish the specific type of shipEstablish the specific type of shipIn case of Oil Tanker, require IOPP certificate and Form In case of Oil Tanker, require IOPP certificate and Form BBIn case of Ship other than Oil tankers, require IOPP In case of Ship other than Oil tankers, require IOPP certificate and Form Acertificate and Form AAnalyzing the IOPP certificate, we determine the hullAnalyzing the IOPP certificate, we determine the hull’’s s type (single or double), or the configuration and subtract type (single or double), or the configuration and subtract off the principal facts of the vesseloff the principal facts of the vesselIn case of single hull Oil tanker, we request for the In case of single hull Oil tanker, we request for the necessary documents to complete the evaluation necessary documents to complete the evaluation

Once evaluated, the technical department issued a Once evaluated, the technical department issued a statement, and record it on the Data base as, well as statement, and record it on the Data base as, well as proceed to authorized or reject the registration proceed to authorized or reject the registration applicationapplication

2

REGISTRATION ACCORDING SHIPREGISTRATION ACCORDING SHIP’’S S TYPE (tankers)TYPE (tankers)

**some additional documents are required according the shipsome additional documents are required according the ship’’s types type

OIL TANKERS or OIL/CHEMICAL TANKERSOIL TANKERS or OIL/CHEMICAL TANKERSTanker of 5000 tons deadweight and aboveTanker of 5000 tons deadweight and aboveTanker of 600 tons deadweight and aboveTanker of 600 tons deadweight and above butbut lessless thanthan 5,0005,000

CHEMICAL TANKERSCHEMICAL TANKERSLPG or LNG TANKERSLPG or LNG TANKERSOTHER CARGOSOTHER CARGOSSUPPLY VESSELSSUPPLY VESSELS

Carrying oil productsCarrying oil productsNot carrying oil productsNot carrying oil products

SELF PROPELLED BARGESSELF PROPELLED BARGESNONNON--SELF PROPELLED BARGESSELF PROPELLED BARGES

OIL TANKER OR OIL & CHEMICAL TANKER OIL TANKER OR OIL & CHEMICAL TANKER –– SINGLE SINGLE HULLHULL

(5000 ton and above)(5000 ton and above)*technical documents required for registration*technical documents required for registration

IOPP Certificate *IOPP Certificate *and Form Band Form B

Class CertificateClass CertificateCapacity plan/MidCapacity plan/Mid--ship sectionship sectionGeneral arrangement planGeneral arrangement planDate to complete the CASDate to complete the CASDeclaration of productsDeclaration of productsSMC, DOC, ISSCSMC, DOC, ISSCSAFCON CertificateSAFCON CertificateBlue cardBlue card

CHEMICAL TANKERS; LPG CHEMICAL TANKERS; LPG oror LNG TANKERS ; LNG TANKERS ; OTHER CARGOS, SUPPLY VESSELOTHER CARGOS, SUPPLY VESSEL

** carrying cargoes other than oil productscarrying cargoes other than oil products

IOPP certificate *and form a IOPP certificate *and form a Class certificate Class certificate Declaration of the ship service and products (by Declaration of the ship service and products (by owner)owner)Document of compliance (DOC)Document of compliance (DOC)Safety management certificate (SMC)Safety management certificate (SMC)In case of exemptions for chemical tankers or In case of exemptions for chemical tankers or oil/chemical tankers is required:oil/chemical tankers is required:

Copy of the certificate of fitness for the carriage of dangerousCopy of the certificate of fitness for the carriage of dangerousgoods in bulk (COF)goods in bulk (COF)Steel exp. plan, / Midship sectionSteel exp. plan, / Midship sectionStatement of class society indicating the vessel is in Statement of class society indicating the vessel is in compliance with all the technical requirements applicable compliance with all the technical requirements applicable under regulation 4.1.3 MARPOL 73/78, Annex IIunder regulation 4.1.3 MARPOL 73/78, Annex II

NONNON--SELF PROPELLED SELF PROPELLED BARGESBARGES

CLASS CERTIFICATECLASS CERTIFICATE

IN CASE OF CARRYING OIL PRODUCTS, IT HAS TO IN CASE OF CARRYING OIL PRODUCTS, IT HAS TO COMPLY WITH ALL THE REQUIREMENTS OF AN OIL COMPLY WITH ALL THE REQUIREMENTS OF AN OIL TANKER (PROVIDE THE DIMENSIONS AND TANKER (PROVIDE THE DIMENSIONS AND CARRYING CAPACITIES)CARRYING CAPACITIES)

IN CASE OF CARRYING CHEMICALS, or CARGOS IN CASE OF CARRYING CHEMICALS, or CARGOS DIFFERENT THAN OIL PRODUCTS, SHALL COMPLY DIFFERENT THAN OIL PRODUCTS, SHALL COMPLY WITH ALL THE REQUIREMENTS APLICABLES TO WITH ALL THE REQUIREMENTS APLICABLES TO SHIPSHIP’’S OTHER THAN OIL TANKERSS OTHER THAN OIL TANKERS

SINGLE HULL vs DOUBLE HULL STADISTIC ON 2006

45%

55%

Single Hull - Oil TankersDouble Hull - Oil Tankers

This administration expects to convert the % ratio to double hull according to the phase out between 2008 and 2010

This administration expects to convert the % ratio to double hull according to the phase out between 2008 and 2010

0102030405060708090

oil tkr &combination

tkr

FPSO FLS tkr

STADISTIC OF VESSELS EVALUATED ACCORDING TO THE NEW

REQUIREMENTS IN 2006oil tkr & combination tkrFSU chemical tkrFPSOLNG tkrLPG tkrFLS tkrOil Barge

3

SOME INDUSTRY COMMENTSSOME INDUSTRY COMMENTS

Some parties in the industry have criticized Some parties in the industry have criticized the prior registration an monitoring the prior registration an monitoring requirements, in particular those pertaining requirements, in particular those pertaining oil tankers.oil tankers.

SOME SAMPLES OF RESOLTIONS AND SOME SAMPLES OF RESOLTIONS AND TECH.CIRCULARS ISSUED RELATED TO TECH.CIRCULARS ISSUED RELATED TO

TANKERS AND OTHER SHIPSTANKERS AND OTHER SHIPSCircular 101Circular 101--0303--009009--SDGMM and Resolution No. 106SDGMM and Resolution No. 106--5151--DGMM / DGMM / April, 2005April, 2005 (Implementation of the new amendments to the MARPOL (Implementation of the new amendments to the MARPOL Convention)Convention)Circular No. 106Circular No. 106--0303--DGMM, June 2006,DGMM, June 2006, (Registry Procedures for (Registry Procedures for Oil Tankers)Oil Tankers)Circular 101Circular 101--0303--1010--SDGMM, June, 2005;SDGMM, June, 2005; (Annex VI, MARPOL (Annex VI, MARPOL ““Air PollutionAir Pollution””) ) Circular 101Circular 101--0303--007007--SDGMM, April, 2006;SDGMM, April, 2006; ((Necessary documents to Necessary documents to complying with CAS)complying with CAS)Merchant Marine Circular No.143, April, 2005;Merchant Marine Circular No.143, April, 2005; (Condition (Condition Assessment SchemeAssessment Scheme))Merchant Marine Circular No. 147, January, 2007;Merchant Marine Circular No. 147, January, 2007; (IBC Code and (IBC Code and Annex II MARPOL Amendments)Annex II MARPOL Amendments)Merchant Marine Circular No.148, January, 2007;Merchant Marine Circular No.148, January, 2007; (Annex I(Annex IMARPOLMARPOL ““Oil record Book AmendmentOil record Book Amendmentss’’’’))

CASUALTY SECTIONCASUALTY SECTIONCREATION OF CASUALTY CREATION OF CASUALTY

SECTIONSECTION

Background: In 2004 a serious evaluation and Background: In 2004 a serious evaluation and compromise was made to create a separate body fully compromise was made to create a separate body fully dedicated to investigate casualtiesdedicated to investigate casualtiesObjective: To comply with SOLASObjective: To comply with SOLAS´́74 R 21 and 74 R 21 and resolution A.849(20) as amended.resolution A.849(20) as amended.To evaluate and subtract lessons and avoid recurrence To evaluate and subtract lessons and avoid recurrence in the future.in the future.

18

28 2621

29

22

32

19

2730 30

20

0

510

15

2025

3035

MONTHLY

Casualty Stadistics 2006 JanFebMarAprMayJunJulAugSeptOctNovDec

TYPES OF INITIAL EVENTS TYPES OF INITIAL EVENTS -- 20062006

514

27

2 7 7 3 112

72

17 24 27

51

2

31

0

20

40

60

80

Collision Contac N/DeathFire/Explo. Grounding Bad weatherStructural damage Sinking IncidentS/G Prob Engine trouble Serious injuryInmovilization Terrorist act Others

4

CASUALTY CONSEQUENCESCASUALTY CONSEQUENCES

34 36

17 1919

42

1417

5 3

68

0

10

20

30

4050

60

70STRUCTURAL DAMAGE

DRYDOCK REPAIRS

TOTAL LOSS

LOSS OF LIFE

PERSONS MISSING

TUG ASSISTANCE

REFLOAT

POLLUTION

EXPLOSION

SERIOUS INJURY

NONE

TYPES OF CASUALTIES ACCORDING TO TYPES OF CASUALTIES ACCORDING TO RESOLUTION A.849 (20) ON 2006RESOLUTION A.849 (20) ON 2006

6677

159

0

20

40

60

80

100

120

140

160

Veryserious

Serious MaritimeIncidents

Very seriousSeriousMaritime Incidents

INVESTIGATION ACCOMPLISHEDINVESTIGATION ACCOMPLISHED

53

61

4850525456586062

INVESTIGATIONFINALIZED

INVESTIGATIONUNDER PROCESS

TYPES OF VESSEL INVOLVED IN CASUALTIESTYPES OF VESSEL INVOLVED IN CASUALTIES

16%

17%

16%

5%3%

6%9% 8% 2%

11%

6%1%

Barge

General CargoCargo

RO-ROCement Carrier

Chemical TkrDiving Vessels

Carga GeneralSeaplane

TankersDredger

Supply

Causes Causes of Casualtiesof Casualties

22

78

11 1216

139

100

20

40

60

80

100

120

140Not properly trained crew

Improper maneuver

Poor Maintenance ofEngines

Fault on the acustic signs

Insufficient Confirmationof the Ships positions

Poor Maintenance ofVessels

Human error

Others

Compliance DepartmentCompliance Department

OBJETIVESOBJETIVES: : To ensure the correct enforcement of To ensure the correct enforcement of ratified International and national regulationsratified International and national regulations..FUNCTIONSFUNCTIONS: : Coordinate the position of the Coordinate the position of the administration about new regulations in full administration about new regulations in full coordination with IMO permanent mission staff.coordination with IMO permanent mission staff.Point of contact for communication exchange with Point of contact for communication exchange with international organization and Administration.international organization and Administration.Development of new technical guidelines Development of new technical guidelines IMO Voluntary Audit scheme preparationIMO Voluntary Audit scheme preparationAssuring quality system includes safety, environmental Assuring quality system includes safety, environmental

policies and controls.policies and controls.

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SegumarSegumar Office RestructuresOffice Restructures

New technical and administrative staff was New technical and administrative staff was hired to improve the servicehired to improve the serviceNew paperless and electronic data base New paperless and electronic data base system was createdsystem was createdNew New SegumarSegumar offices in Asia as another offices in Asia as another pillar to offer a better servicepillar to offer a better service

PORT STATE CONTROL PORT STATE CONTROL SECTIONSECTION

A separate section was created to segregate Flag State Inspections, Inland ships inspectors and others to carry out inspections and monitor the compliance of the Panamanian ships and foreign vessels calling in our ports.

PORT STATE CONTROL SECTIONPORT STATE CONTROL SECTION

Inspect foreign vessels.Inspect foreign vessels.

Analyzed PSC detentions made to Panamanian Analyzed PSC detentions made to Panamanian vessels.vessels.

Analyzed Contraventions made by Panamanian Analyzed Contraventions made by Panamanian vessels.vessels.

Suggest penalties to vesselSuggest penalties to vessel’’s operators that do not s operators that do not comply with PSC requirements.comply with PSC requirements.

Make sure that the vessels correct every deficiency Make sure that the vessels correct every deficiency found by PSC authority.found by PSC authority.

Appeal if no ground for detention was foundAppeal if no ground for detention was found0

5

10

15

20

25

30

35

Jan-Mar Apr-Jun Jul-Sept Oct-Dec

LOCAL PORT STATE CONTROL STADISTICS (2006) 3/M COMPARISON

InspectionsDeficiencyNo DeficiencyDetained

NOTE: This graphic reveals the PSC inspections made by the Panamanian Authority.

0100200300400500

2004 2005 2006

MOU´S PSC DETENTIONS RECIEVED IN PANAMA

ACCORDING TO THE YEAR OF CONSTRUCTION

20 YEARS & ABOVE BETWEEN 15 & 20 YEARS BETWEEN 10 & 15 YBETWEEN 5 & 10 Y BETWEEN 0 & 5 Y

PORT STATE CONTROL INSPECTIONS PORT STATE CONTROL INSPECTIONS CARRIED OUT TO PANAMA VESSELSCARRIED OUT TO PANAMA VESSELS

0

1000

2000

3000

4000

5000

6000

7000

2000 2001 2002 2003 2004 2005

PARIS MOU

TOKYO MOU

USCG

INDIA MOU

NOTE: Information take from MOU’s annual reports.

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PORT STATE CONTROL DETENTION CARRIED OUT TO PANAMA FLAG

VESSELS

0

50

100

150

200

250

300

350

400

2000 2001 2002 2003 2004 2005

PARIS MOU

TOKYO MOU

USCG

INDIA MOU

VIÑA DELMAR

NOTE: Information taken from MOU´s annual reports.

PORT STATE CONTROL DETENTION RECEIVED IN PANAMA

0

50

100

150

200

250

300

2000 2001 2002 2003 2004 2005 2006

ABUJA MOU

BLACK SEA

CARIBBEAN

INDIA MOU

MED MOU

PARIS MOU

TOKYOMOU

USCG MOU

VIÑA MOU

NOTE: Information taken from Panama Port State Control data base, which is made according to the amount of PSC detention reports received from MOUs, ships o any other company involved

INSPECTORS TRAININGINSPECTORS TRAININGAdvance Port state Control Inspection

Ships Structure

Welding

Inspections of LPG

Ultrasonic Inspections and NDT

Inspections of Oil tankers and Bulk carriers

Plans and drawings interpretation

Casualties investigation

Load Lines Calculation

Tonnage calculation

Annex VI

ISM/ISO

CREATION OF MARPOL 73/78 CREATION OF MARPOL 73/78 SECTIONSECTION

CAS evaluation *CAS evaluation *((CAS CAS authorization and issuance ofauthorization and issuance of the the Statement of Compliance)Statement of Compliance)

Extension and Exemption Extension and Exemption **(Issuance of Extension or Exemption Certificates)(Issuance of Extension or Exemption Certificates)

Annex VI Annex VI Annex II *Annex II *(and IBC Code new amendments)(and IBC Code new amendments)

IOPP evaluation *IOPP evaluation *(Necessary evaluation of registered and new registry tankers)(Necessary evaluation of registered and new registry tankers)

SYSTEMATIZATIONSYSTEMATIZATIONOBJETIVES:OBJETIVES: To introduce To introduce an easy and secure electronic system an easy and secure electronic system to offer a better service up grating the modern maritime fieldto offer a better service up grating the modern maritime fieldADVANGES:ADVANGES:PaperPaper--less less officeoffice24/7 24/7 call center support for technical and registration aspects, call center support for technical and registration aspects, E learning, E learning, Online consulting, Online consulting, Instant answers, Instant answers, More control,More control,Secure issuance of documents for ships and seafarers with the laSecure issuance of documents for ships and seafarers with the latest test technology, technology, Centralized information, Centralized information, 75% reduction in answering time, 75% reduction in answering time, Online connections with consulatesOnline connections with consulates

Timing:•Phase 1: includes General Directorate of Seafarers

•Phase 2: Includes General Directorate of Merchant Marine

•All phases are estimated to be finalized in 2008

Cost:13 Millions USD

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NEW OFFICES PROJECT15M SATELLITE MONITORINGSATELLITE MONITORING

ACP (Panama Canal Authority) and the PMA ACP (Panama Canal Authority) and the PMA are developing a project to create a high tech are developing a project to create a high tech center in order to control all the marine traffic center in order to control all the marine traffic within the Panama water and in international within the Panama water and in international waters to all ships registered under our flagwaters to all ships registered under our flagThe cost is calculated in an initial investment of The cost is calculated in an initial investment of $600,000.00 and a monthly cost of $40,000.00 $600,000.00 and a monthly cost of $40,000.00 per monthper month

AUDIT TO RO´S• With the aim to ensure full compliance with the duties

delegated the PMA started an audit program scheme to be finalized in 2008

• Actually 9 audits has been carried out• The audits are based in the Resolutions JD 0-19 of

December 2005 A.739(18) and A.789(19)• The results of the audits will cause the appropriate

evaluation by the technical board of approvals, willing to minimize, cancel or extend the responsibilities delegated.

• IACS may receive similar treatment, however not full acceptance and cooperation with the initiative has been received from the secretariat.

VOLUNTARY IMO MEMBER STATE AUDIT

• Panama has just submitted the formal documents confirming the postulation to be audited as per the IMO audit scheme.

• Few personnel has also being appointed by the PMA as qualified personnel to compose the pull of auditors.

• A preparation process and assessment has been launched with an approximate cost of $200,000.00

• Among other cost, we estimate those about 2.3 Millions for the preparation and the audit itself.

NEW CHALLENGES IN THE NEW CHALLENGES IN THE INTERNATIONAL RULESINTERNATIONAL RULES

SOLAS 88 Protocol LL88 Protocol RatificationSOLAS 88 Protocol LL88 Protocol RatificationLRIT (Cost clarity; Design by COMSAR, Position of PMA, 2008)LRIT (Cost clarity; Design by COMSAR, Position of PMA, 2008)MODUS (New Flag State Alternatives)MODUS (New Flag State Alternatives)Protective coating MSC circ 216/215 (Extensive to all ships)Protective coating MSC circ 216/215 (Extensive to all ships)BWM (Special considerations to safety factors, T of crew and PSCBWM (Special considerations to safety factors, T of crew and PSC))Explosions in tankersExplosions in tankers IIWGIIWGGBS/CSR (IACS) GBS/CSR (IACS) Uniformed rules for structural aspects in special to Uniformed rules for structural aspects in special to corrosion factor and permissible diminutions thickness limits acorrosion factor and permissible diminutions thickness limits and long nd long stress analysis.stress analysis.Ship to ship transferShip to ship transferLife boat safety difficulties of implementing Circ 1206 as well Life boat safety difficulties of implementing Circ 1206 as well as new as new precautionsprecautionsISM (New project to study the impact of it and the human factor)ISM (New project to study the impact of it and the human factor)Air Emissions Annex VI: controls in the local bunker industry anAir Emissions Annex VI: controls in the local bunker industry and clear d clear application of it in PSC inspectionsapplication of it in PSC inspectionsShip Recycling (clarity in liabilities and responsibilities)Ship Recycling (clarity in liabilities and responsibilities)

PANAMA MARITIME AUTHORITY

Thank you for your attention !

Mar. 27, 2007

GENERAL DIRECTORATE OF MERCHANT MARINE