Updates

INDEX TO ARTICLES

• Minister highlights importance of shipping in Piraeus seminar

• The New Gibraltar Port Handbook

• THE PORT: A major sector of our economy

• "The Port of Gibraltar: Looking Beyond 2000"

• Cruising into a first class destination

• International Base

• Ship Supplies and Crew Changes

• Ship Registry Changes Gear to Meet Quality Challenge

• Ship Repair Scene

• Ship Survey

• One of the world’s busiest bunkering ports

• Legal eagles keep busy

• Agents Try To Keep Afloat  

• Useful Addresses

Minister highlights importance of shipping in Piraeus seminar

Shipping is important to Gibraltar because it generates both direct jobs in the sector and there are also many indirect benefits for the economy. The policy of the government of Gibraltar is that there should be sustainable development, a commitment to safe working practices and to safety, an enhancement of resources, realistic strategies and a maintaining of quality. I believe that this has been achieved hitherto, and I have every confidence that the maritime industry in Gibraltar will go from strength to strength, said Port minister Joe Holliday at a seminar in Piraeus, Greece, yesterday.

There are a series of strategies which the Port of Gibraltar is developing, in respect of the various services where we know we can be and are successful I wish to dwell briefly on the principal elements, and provide you with an overview, which will then be covered in detail by the Chief Executive of the Port. They are: cruising, bunkering, the provision of services generally and ship-repair, he added.

Badly shaken

Mr Holliday said that Gibraltar’s cruise industry was badly shaken, in common with all Mediterranean cruise ports by the shocking terrorist attacks of 11 September 2001. The demise of Renaissance Cruises, which followed in the wake of the attacks, also impacted negatively on Gibraltar. As a result, a number of cruise calls were cancelled, and there was an initial period of uncertainty in Gibraltar’s cruise industry.” I am pleased to say that the Industry bounced back more vigorously than we had thought possible, and the number of cruise calls expected for this year is about 170 calls, which compares favourably with our peak year of 2000 when Gibraltar received 175 cruise calls, he said.

He added: The Gibraltar product for cruise operators is good. There is an interesting range of high quality excursions which can be offered to cruise clients, using a choice of transport, either taxi vanettes or small tour buses. The shopping experience in Gibraltar is second to none, and the historic city centre is only a 15-minute walk away from the Cruise Terminal. The access from the Port to the entrance to the old City of Gibraltar has been beautified: new avenues have been planted, and the approach roads made most attractive. It is part of the Government’s investment in this industry.

An extension to the Cruise Terminal is planned; the development of a specific berth adjacent to one of the yacht marines for small cruise ships or boutique liners is being seriously explored; and the port fees and port dues package that is offered to cruise ships is under continuous review in an effort to make the port of Gibraltar particularly attractive to cruise operators.

Greek flavour

There is a strong Greek flavour to Gibraltar’s bunkering industry, given that two of the bunker operators are Greek: Vemaoil and Aegean. Of the two entities which have expressed an interest in entering the bunker supply market in Gibraltar, one is Greek, showing yet again the Hellenic acumen for shipping in general and bunkering in particular, at Gibraltar.

Views have been expressed to the Government that it would be preferable that there should be no new bunker suppliers at Gibraltar over and above those already in business. The Government has not shared this view.

“While welcoming the presence and commitment to quality of existing operators, the Government feels that there are further opportunities for growth and that new operators should be allowed into the market place if it means new, incremental business for Gibraltar. It would make no sense, however, to allow new operators to establish themselves if this wore simply to result in the existing cake being shared between a larger number of operators, with the resulting loss in profitability to present bunker suppliers. Such a scenario might tempt companies to cut corners and thereby place at risk the excellent reputation which Gibraltar has acquired in this industry over many years.”

The provision of services has always been the traditional mainstay of the Port of Gibraltar, given its key strategic location.

The growth and development of services for shipping has placed this area of port activity in the spotlight. As a result, the Government has decided that it wishes to control port operations for the future far more tightly than has been the case hitherto. What this means is that all activity in the port is now controlled by the Port Authority through the grant of port operator licences, which are granted for a period of one year at a time. In order to qualify for an operator licence, a company must meet all the licensing conditions which apply for that activity.

When the Gibraltar Registry was granted Category 1 status within the British Red Ensign Group, in December 1997, there was total of 28 ships on the register. This has now grown to 120 ships, and it continues to grow. “I am particularly proud that the Gibraltar flag has successfully attracted new builds, as well as prestigious cruise ships. The tonnage of shipping on the Register has now grown substantially, and the average age of the fleet registered under the Gibraltar flag has decreased significantly. They are pointers towards a healthy future, and I look forward to further growth,” he said.

THE PORT: A major sector of our economy 

By the Hon. J. J Holliday, Minister for Tourism and Transport

The Port of Gibraltar has been a major maritime player for many years and has provided a service to thousands of ships, which transit the Strait of Gibraltar. Gibraltar's strategic location makes it an ideal port of call. 
The Government of Gibraltar recognises the importance of the port to the economy and has invested substantial amounts of public funds in undertaking significant changes and improvements, which were essential to meet the requirements of today's shipping world. There is a five year development plan to further improve the Port of Gibraltar. 
As part of its commitment to the Port, the Government of Gibraltar recently established the Gibraltar Port Authority, which among its many roles, has the clear objective to promote new business opportunities in a proactive manner, within a commercial structure. The Gibraltar Port Authority must ensure that all operations within the Port are handled efficiently, safely and cost-effectively. 
The Government of Gibraltar has recently invested over £1 million on the purchase of two new launches for use by the Gibraltar Port Authority, to assist in a range of duties, to include search and rescue and pollution control. It has also put in place adequate anti-pollution equipment to ensure that the Gibraltar Port Authority has adequate resources to meet its commitment in this sector. 
Gibraltar is becoming a one-stop shop for vessels in the Western Mediterranean. Bunkering continues to be the major commercial activity, with an estimated three million tons of bunkers to be delivered in 2000 and further growth is expected in the future. 
Cruise calls at Gibraltar has been a success story in recent years, with an increase to approximately 200 calls in 2000, from 99 calls in 1997.  Cruise operators recognise the improvements that Gibraltar has achieved since 1997 with the new Cruise Terminal, the beautification of the City Centre, which has improved the VAT-free shopping experience and the improvement to the range of tours to our unique tourist sites. 
The international ship repair and conversion company Cammell Laird, established a first-class operation in 1998 and has been performing very successfully. 
The Port of Gibraltar provides a wide range of other services such as crew changes, provisioning and bottom cleaning for vessels. 
The Gibraltar Ship Registry is part of the British Category 1 Red Ensign Registry since 1998. Our Registry offers a cost-effective service, in addition to the excellent fiscal advantages, privileges as a member of the European Union and high standard of maritime safety. 
I am delighted to have ministerial responsibility for the Port of Gibraltar, as I believe it has a very exciting and successful future. I also welcome Panorama's initiative in producing this Supplement, with details of current developments in a wide range of activities in the Port, which clearly highlights the close co-operation which exists between the Government of Gibraltar and the private sector to achieve greater success for Gibraltar's maritime sector. I would like to invite you to call at our Port and experience our highly professional service.

“The Port of Gibraltar: Looking Beyond 2000”

The importance of the port to Gibraltar’s economy has been underlined by the publication of the government’s policy paper, The document reviews a port development study by specialist shipping industry consultants MDS Transmodal. The government accepted many, though not all, of the consultants conclusions. Most importantly it was realised that a new, more commercially-minded, structure was needed to run the port. Privatisation was rejected as an option. 
Instead it was decided to create a Gibraltar Port Authority under the leadership of a chief executive. The authority will also have important commercial and marketing functions as well as responsibility for the day-to-day running of the port. 
Other key elements in the policy paper are: 

• Port Advisory Board to make recommendations on commercial matters 

• Off-Port-Limits operations boosted 

• Fee structure revamped to attract port users and increase revenue 

• Streamlined arrivals procedures, fewer ships boarded

• More funds for port developments 

• Land reclamation to provide more cargo working area, more berths.

 The GPA’s chief executive is Tony Davis who has already had considerable experience of cruise shipping in his former post as chief executive of the Gibraltar Tourist Board. Operational matters remain the immediate responsibility of the Captain of the Port. He reports to chief executive on matters concerning safety of navigation and the smooth running of the port. 
Mr Davis said: “I am extremely excited by the plans to expand the Port's business. There are numerous projects in the pipeline which, when they reach fruition, will make Gibraltar Port extremely competitive, increase efficiency and enable the port to generate new business.” Mr Davis accepts that meeting the needs of the future will take hard work. He notes: “The task of restructuring the old Port Department into the new Port Authority is challenging but providing new initiatives for the staff, such as increased training opportunities, new operational equipment and better mess-room facilities will all contribute towards ensuring we have a happy and motivated workforce.” Just how much hard work will be needed has started to become clear in the months following the announcement of the decision to create the GPA. Updating the various ordinances that govern the port and shipping has proved a time consuming business, partly because changing one piece of legislation often has implications for other ordinances. 
This was the major reason why changing the port tariff structure took longer than expected. There was however wide acceptance among ships’ agents that the government was justified in bringing in charges on vessels calling just to take on bunkers at the anchorage. Among other measures aimed at increasing port revenue is a significant increase in port operators’ licences. Again, however, this is largely seen as justified in return for the greater security now being imposed on the commercial parts of the harbour. Stressing the need for co-operation between all parties involved Mr Davis adds: “The Government is committed to the port. Together with the private sector, I also see my role as providing a communication link between all parties to ensure a cohesive strategy is in place to achieve all our goals.” Ensuring that the port’s workforce has the right skills is a high priority. Mr Davis and Acting Captain of the Port James Ferro have initiated a training programme which has involved port staff attending courses in the UK. The GPA’s watch officers, who oversee vessel movement in the busy harbour, now have the skills to handle the latest communications technology. Further training courses are planned. The Port Plan envisages progressive upgrading of the fixed facilities and equipment. Already the GPA has boosted its ability to patrol the harbour effectively with the acquisition of new launches. One of these launches will be able to undertake search and rescue missions around the Rock. This in turn will allow an existing craft to be dedicated to the important anti-pollution role. 
For the moment, though, one question mark hangs over the future of the port. 
Gibraltar is ideally situated to act as a “line-linking” container transshipment centre. Nearby Algeciras already fulfils this role, of linking East-West and North-South routes, for Maersk-Sealand while Sines in Portugal is also being developed for the same purpose. There could still be room for another line-linking port and the possibility of developing a transshipment hub at Gibraltar has been under active consideration for over two years. The proposal has attracted considerable commercial interest. It would, though be a massive project and needs careful consideration before a final decision is made. The government is in the process of appointing a transaction adviser to carry out a detailed feasibility study.  
Whether or not the transshipment plan goes ahead it is clear that Gibraltar’s port will be increasingly busy over the coming years, offering a broad range of services to the world fleet.

Cruising into a first class destination

Over the past three or four years the Gibraltar government has put a lot of effort into developing the Rock’s position in the cruise market as both a first class destination and also as a highly efficient hubbing port. One of the key improvements that has boosted Gibraltar as a destination has been the construction of a dedicated Cruise Terminal, built from the shell of a derelict cargo shed. 
This facility ensures that the first impressions of visiting passengers are of a pleasant building and friendly welcome. 
In another important move passengers are now offered a choice of buses and taxis for exploring the many attractions of the compact territory. Although some issues remain to be settled, ensuring choice of excursions and improving the quality of guided tours has been a priority. 
The sight that greets passengers on their short trip to the principal shopping areas has been transformed. A beautification programme has ensured that the promenade leading to Casemates, a newly restored historic tourist area at the bottom of Main Street, now projects an attractive image. This is the result of landscaping and new boundary walls that contain the busy commercial port. 
The new boundaries are part of an extensive upgrade of security around the terminal. While security has not been a problem in the past, Gibraltar realised that the modern cruise industry expects efficient formal security measures to be place. 
The transformation of Gibraltar’s cruise facilities has been in direct response to feedback and suggestions from cruise lines and ship agents who handle cruise ship calls. The improvements at Gibraltar have gone hand in hand with enthusiastic membership of Medcruise, the organisation which promotes the development of cruising in the Mediterranean and is working to develop standards for cruise port facilities. At Medcruise’s 1999 meeting in London, where Gibraltar acted as host country, Gibraltar Port Authority Chief Executive Tony Davis was able to report that all the measures requested by the cruise lines had been implemented. The cruise business can be frustrating with unexpected changes of itineraries, often for reasons completely unconnected with the service provided by the port. 
Nevertheless effort put into enhancing cruise facilities is paying off. “Renewed confidence among the main cruise lines in Gibraltar is being translated into more calls,” says Mr Davis. “Last year,” he adds, “we had 174 cruise calls with over 120,000 passengers. We anticipate both these figures to be exceeded this year.” The 1999 figures were Gibraltar’s best ever. Mr Davis expects the number of cruise ship calls this year to be around the 190 mark. The signs are that 2001 could be even better. Several big cruise operators are demonstrating their confidence in Gibraltar as a destination. UK-based P&O has booked 21 calls, a major increase on recent years. Carnival Cruise subsidiaries Cunard and Seabourn are returning to the Rock after an absence of a couple of years, with a total of eight calls. Cunard’s flagship, the Queen Elizabeth 2, will be visiting three times. Another Carnival company, Holland America, has announced a substantial programme of calls featuring the Rotterdam, Noordam and its new ship, the Amsterdam. 
While the big increase in the number of ships calling as part of their cruise itineraries is a major success story Gibraltar has the potential to play a bigger role in the regional cruise market. It is well positioned, well equipped and now experienced in embarking and disembarking passengers acting as hub port for cruise ships in the Western Mediterranean and Eastern Atlantic. 
Around the turn of the year Gibraltar had the unexpected demonstrate its efficiency in handling passenger embarkations and disembarkations. 
The RMS St Helena, which normally provides another UK Overseas Territory, Saint Helena, with its only link to the outside world, broke down. To ensure the island received fresh supplies by Christmas, and to take St Helenans to and from their remote home, the British government chartered Royal Olympic’s passenger ship Iason. In December over 150 passengers and crew were flown from the UK’s Luton airport to Gibraltar and taken to the ship. Partly because the airport is very close to the passenger berth, but also due to the efficient customs and immigration procedures at Gibraltar, the transfer from plane to ship took barely half an hour. Six weeks later the Iason called again to disembark passengers from St Helena for an onward flight to the UK. Gibraltar is in a position to offer today’s cruise industry the facilities it requires both as a destination and for hubbing. As for all cruise ports, the future and especially the introduction of “mega cruise ships” with huge numbers of passengers will pose new challenges. The recent past, however, gives ground for confidence that the Gibraltar government will give high priority to providing state-of-the-art facilities. 

International Base 

Gibraltar has two ship managers based locally, Marine Service Shipping (MSS) and Sorek Shipping (Gibraltar). Sorek’s managing director Jens Sorensen says the problem with Gibraltar is that there is a relatively small pool of people available with shipping experience. Denis Nuza is more optimistic. He has now complemented his chemical tanker fleet ship management operation with a venture into ship broking.  The Government is actively encouraging the establishment of new businesses and Gibraltar is a practical base for an international company. Gibraltar is the only British offshore finance centre within the European Union, properly regulated to EU and UK standards.

Ship supplies and crew changes 

There has been a consolidation of players in the ship supply scene in Gibraltar. Puche and Provimar have effectively merged leaving the scene split largely between their combined operation and James Molinary. 
Molinary has expanded its storage capabilities by taking over a warehouse in Devil’s Tower Road. It managing director Paul Mifsud says that the firm has also been able to become more competitive by linking up with a major supplier in the Netherlands. While most provisions go to ships in the anchorage or alongside, an increasing amount of provisions and spares is being delivered to ships while they remain off port limits. Last year 550 ships took on provisions or changed crews without entering port limits. This was 140 more than the previous year.  
At the time of writing limits on the amount of provisions and the number of crew that can be taken out to a ship were still in place but the government has committed itself to removing these somewhat arbitrary restrictions in favour of one based on the capacities of the vessels taking out the supplies.

Ship Registry Changes Gear to Meet Quality Challenge 

During the first six months of this year lawyers registering ships in Gibraltar have noticed a change in approach by the Gibraltar Ship Registry. Previously the GSR's Administrator would have flown out to wherever the vessel was lying to carry out a pre-registration survey. Now, in many cases, a surveyor from a classification society carries out this task on Gibraltar's behalf. 
Using class surveyors is one of several changes in policy brought in by Capt Fazlur Chowdhury who took over as Administrator at the beginning of the year. 
Gibraltar regained its Class One Red Ensign Group status just two years ago. This followed a period when the register was closed to new vessels following problems. The fleet had dwindled to around 15 ships. 
Restoration of Class One status means Gibraltar is able to register almost all types of commercial ships. It also involves complying with the strict standards set by the UK's Maritime and Coastguard Agency (MCA). 
The first two years of the "new" registry saw a quite remarkable revival with the number of vessels doubling to over 30. This growth was largely due to the efforts of the small team at the GSR, led by former MCA surveyor Roland Green. He personally carried out all surveys and got a deserved reputation for hard work. He retired late last year. 
Capt Chowdhury, who left a senior MCA post to come to Gibraltar, also puts in the hours. But his style is different and is based on what he regards as the fundamental requirements to build up the Gibraltar flag in the long term. That includes putting in place the administrative and legislative framework to support a substantial fleet and meet pending international requirements. 
At present ships are coming on to the register at an impressive rate. A fleet of 70 ships is quite likely by the end of the year. 
Running a ship register to the very high standards demanded by the MCA requires a substantial organisation with considerable technical and administrative expertise. The current focus on quality within the global shipping industry has been given greater emphasis by the recent sinking of the oil tanker Erika off the French coast and the consequent pollution of the French coast. Open registers, like Gibraltar's, are certain to come under increasingly intense scrutiny. 
Panorama asked Capt Chowdhury whether he was worried that Gibraltar was getting a reputation as a "lightweight" operation which did not have the necessary staff, skills and resources to run a serious ship register to Red Ensign Group standards. 
Capt Chowdhury emphatically denied any suggestion that Gibraltar was not serious about running a high quality register. While the staffing levels had been modest over the past two years the highest standards had been maintained and everything done entirely in line with Red Ensign Group requirements. 
That initial phase has passed. Now vessels numbers are increasing rapidly and meeting International Maritime Organization requirements will require considerable extra administrative effort. 
He said: "The Gibraltar government is absolutely committed to ensuring that the registry has adequate resources and sufficient appropriately qualified senior staff including those with nautical, marine engineering and naval architecture backgrounds." 
Capt Chowdhury said that a recruitment programme had already started. He also explained that adopting the MCA's own practice of delegating certain survey work to classification societies meant that such surveys could be carried out quickly anywhere in the world. It effectively increased the number of expert personnel available to GSR. However, once the surveyor recruitment programme is complete, GSR surveyors will normally carry out pre-registration surveys. 
Using classification societies did not, Capt Chowdhury stressed, mean giving up control. Like the MCA, and in sharp contrast to most flag administrations, Gibraltar will carry out all principal, five-yearly, ISM audits itself. These will take place at the same time as other statutory surveys and will ensure one of Gibraltar's own surveyors will take an in depth view of both the way a Gibraltar ship is operated and its physical condition every five years. 
The ISM scheme is a crucial part of IMO's drive to ensure high standards of ship operation. The other part is the International Convention on Standards of Training, Certification and Watchkeeping (STCW). These initiatives are in the process of being phased in. Full implementation of both measures must be completed within the next couple of years. Together they will place a considerable extra burden on ship registries as they will require more auditing staff and an additional, sophisticated record-keeping system. 
Panorama asked: "Can Gibraltar meet the challenges of ISM and STCW? Will you have sufficient resources?" 
"There is absolutely no question about that," replied Capt Chowdhury. "Not only is Tourism and Transport Minister Joe Holliday completely determined to see the Gibraltar Ship Registry become a major success story but Chief Minister Peter Caruana also shares this ambition and has given the registry his full support."  
He added: "Gibraltar can be a centre of maritime excellence and a successful ship registry is part of achieving that."

Ship Repair Scene

 There has been a steady stream of vessels using the Cammell Laird facility. Among a number of major jobs undertaken has been the refit late last year of the cruise ship Carousel. This year the yard secured an important series contract from Danish shipping group AP Moller for the drydocking of seven Maersk-Sealand vessels. 
The yard is well suited to service the Maersk-Sealand fleet as the giant container carrier has a dedicated terminal just across Gibraltar Bay at Algeciras. 
While its largest graving dock allows the yard to undertake work on vessels of up to panamax size the group spotted the potential of its smallest dock for breaking into the "superyacht repair" market. 
While CL is far and away the biggest player in the local shiprepair scene there are other firms involved in carrying out work on ships calling at Gibraltar. 
Gibunco Mechanical (GM), part of the large Gibraltar-based Gibunco Group, offers a wide range of mechanical engineering services. The company has its own shore-based facilities with workshops able to carry out all types of steelwork. 
It also undertakes repairs on ships while afloat and carries out class-approved repairs to shipowners' specifications and requirements. 
Group chairman John Bassadone says that GM has an experienced workforce including technical supervisors, qualified welders and marine mechanics and engineers. It can provide riding squads for voyage repairs and the company also carries out tank cleaning. 
A sister company Scamp Underwater (Gibraltar) carries out underwater work including hull cleaning, general underwater repairs and maintenance - including permanent repairs - and inspections surveys for classification societies. 
As John Piris, of John Piris & Sons, is keen to point out, there are also a number of other smaller firms active in the repair scene. He says times are tough for these businesses, partly because the owners of the large number of ships that make bunker-only calls are not aware of the advantages of getting repairs done at the same time.

Ship Survey

 One might expect Gibraltar, as a bustling bunker port and a significant shiprepair centre, to be a happy hunting ground for marine surveyors. It is not like that, for several good reasons. 
One is that although bunker volumes are high there are very few disputes over bunkers and so surveyors are called on but rarely to supervise bunkering operations. That is good for the port’s reputation but less good for surveyors looking for regular work.  Nevertheless there is one independent surveyor based in Gibraltar, Don Hogan.

One of the world’s busiest bunkering ports

Gibraltar maintained its position in 1999 as one of the world’s busiest bunkering ports with 2.67m tonnes of bunkers delivered to over 3,200 vessels, a slight increase on the previous year. Figures for the first half of 2000 also show a modest increase on those for the same period in 1999. Bunkering is far and away the principal activity in Gibraltar port. Cepsa (Gibraltar) is the main importer of marine fuels and is owned equally by oil company Cepsa and Gibunco Holdings. The latter company also owns half of the bunker barge operator Maritime Gibraltar and is the sole owner of London-based bunker suppliers and traders Peninsula Petroleum which trades in other ports as well as Gibraltar. 
 A Texaco-Chevron joint venture, Fuel and Marine Marketing, is also a major player in the Gibraltar bunkering scene. It uses Aegean Bunkering’s barge fleet to deliver its bunkers. Another Greek company, Vemaoil, sells and delivers bunkers through an operation based on a storage tanker in the anchorage. In a substantial upgrade, Vemaoil is replacing its current 1969-built 31,458 dwt storage tanker Vermaoil XXXV with the 1978-built, 83,851 dwt Vemagna - formerly the Alandia Lynx, a vessel arrested and sold at auction in Gibraltar.  Although the number of vessels calling for bunkers have been high and bunkering contributes significantly to the local economy the port has not, until now, benefited directly as no dues have been collected from bunker-only calls. That has now changed and discounted tonnage dues are being levied. A ship of 10,000 gt will pay £30. This move has been widely accepted in the shipping community as fair and as being modest enough not to deter bunker calls.

Legal eagles keep busy 

There is a relatively large community of maritime lawyers in Gibraltar. Two main areas provide business for the Rock’s law firms: ship arrests and registration. To some extent these activities reflect different conditions in the shipping market. Arrests tend to be less common when the market is good while a buoyant market encourages investment in additional tonnage and thus the registration of vessels into the Gibraltar Ship Register. 
Raymond Triay of Triay & Triay says the Gibraltar flag was becoming popular with owners who wanted to be associated with a high class register which also had other benefits. He says 
there is a lot to sell including reasonable pricing and a European Union status allowing entry into EU cabotage trades. 
”Gibraltar is playing catch up,” he says. Mr Triay explains that other registers did well at the time Gibraltar’s registry was closed. Now there is a steep curve as substantial numbers of ships are placed on the register. Eventually, he believes numbers will plateau out. He emphasises that Gibraltar’s strict adherence to high standard means only “good quality operators are interested in the flag.” John Restano of Hassans also so stresses the quality theme saying that EU owners, including German based ship operators, are attracted to the Gibraltar flag because they do not view it as a “flag of convenience”. Isola & Isola’s Maite Stagnetto has also found that German owners have taken a particular liking to the Gibraltar flag. She explains that they are attracted by the fact that it is an EU flag offering reasonable rates and an efficient administration. She believes that a new EU directive on disclosure of information will not be a disincentive to owners. Tony Christodoulides of Marrache & Co says that Gibraltar’s reputation is founded to a considerable extent on the fact that Gibraltar is a common law jurisdiction and is able to move comparatively quickly in arrest cases. The popularity of Gibraltar as a place to arrest ships is also due in no small measure to the efficient organisation that is in place to process arrests. And that is primarily thanks to the efforts of the Admiralty Marshall Katherine Dawson. 
She is particularly concerned about the welfare of crews and says that many crew members of arrested vessels have expressed their appreciation at the way they have been treated.  Arrests keep several of the local lawyers busy. Isola & Isola’s Christian Hernandez specialises in arrest cases. He frequently acts for the International Transport Workers’ Federation (ITF) on behalf of crews. He emphasises the efficient nature of the system in Gibraltar and the relative ease of getting cases before the court compared to many other jurisdictions.

Agents Try To Keep Afloat

Reflecting the geographical advantages of the Rock, the chairman of the Gibraltar Shipping Association, Mark Porral, is not a Gibraltar ships’ agent as such. Rather he is area general manager for Inchcape Shipping Services. His “patch” is Iberia and Morocco.  But of course Inchcape does serve ships calling at Gibraltar. The local office handles about 50 vessels a month, mainly making bunker-only calls. Mr Porral stresses that Gibraltar has much more to offer than just bunkers, saying that ships can also effect repairs, take on spares and provisions and also change 
Joseph Imossi of ships’ agent Lucas Imossi says: “Times are tough for the ship agent.” He says agents need to diversify or develop specialisations. His firm has diversified into ownership of an office block and also specialises in crew changes. Mr Imossi says crew changes at Gibraltar are popular for owners with Filipino or Indian subcontinent crews as they do not require visas. This makes changing crews easier at Gibraltar than in Spain or Portugal. 
Increased port operator licence charges, says Mr Imossi, will hit smaller operators. The charges may not seem huge but will have a significant effect because “cut-throat” competition means small profit margins. He adds that the strong pound has not had much effect. Many things are charged for in US dollars and agents have to keep costs incurred in pounds to minimum. 
At the quite separate firm of Smith Imossi there is a view that, to cope with very low levels of commission, agents must push up the volume of business. This means providing very basic agency services to a large number of ships making bunkers-only calls. This large number of calls means, according to the firm’s Paul Imossi, chasing up a lot of relatively small invoices. Mr Imossi believes that the port is progressing in the right direction and is confident about its future. He is particularly happy that the Gibraltar Port Authority is extending its surveillance and control to the Eastern Anchorage. He believes there is scope for more extensive use of this area which could prevent congestion in the Western Anchorage as traffic continues to build up. 
Overall Gibraltar is still home to a busy community of ship agents, though some firms are feeling the pressures of intense competition more than others and different firms are employing different strategies to keep afloat in a difficult market. For the shipowner this means a wide choice of agency services.

UPDATES

Launch of upgraded bunkering code of practice


The upgraded Gibraltar Bunkering Code of Practice has just been published by the Government and brought into immediate effect. The revision sets out the various procedures that must be followed by bunker operators in the course of their operations. These procedures have, in fact, already been in place for some time. The Code does systematically set them out in writing.

The detailed document is based on a similar Code introduced by Singapore, the world’s largest bunkering port. Its implementation in Gibraltar follows a year of detailed discussions with leading players in the bunkering industry.

In tandem with the launch of the revised Code, a Bunkering Superintendent has been appointed by the Government.

These steps further enhance the comprehensive strategy which the Government has put in place over a period of years to address issues of pollution prevention and control. Among the measures already in place are:



• The Port of Gibraltar commissioned an Oil Spill Contingency Plan;

• The Port of Gibraltar joined Oil Spill Response Limited so that the company can provide Gibraltar with the necessary specialist resources and materials to cope with a major oil spill;

• The Gibraltar Port Authority holds an annual exercise to test different aspects of the Pod’s readiness to counter any oil pollution incident which might arise;

• The Government invested over £100,000 in purchasing booms, skimmers and other equipment for the Port Authority for combating oil spills;

• A new licensing regime has been put in place for bunker operators.



Minister for the Port, Hon Joe Holiday, said: “As one of the busiest bunkering ports in the Mediterranean, the Government believes that it is prudent to have in place all reasonable safeguards against an accident which could impact on the environment. The publication of the Bunkering Code of Practice and the supervision of local bunker operations through a Bunkering Superintendent completes the exercise in this sector- The bunkering industry in Gibraltar is properly regulated, and ship operators have already responded to the fact that bunkers can be supplied efficiently, quickly and safely in the Port of Gibraltar.”

In 2001, bunker deliveries at Gibraltar rose by nearly 11% on the previous year, with just under 3 million tonnes being supplied. In this period, total calls by vessels at Gibraltar rose by 12% compared with 2000, to 6,557 ships.

Minister Holiday expressed his delight that, despite a gloomy world economy and rising fuel prices. Gibraltar had increased bunker supplies and the number of calls by merchant ships and set new records for both. He attributed this success to an increasing awareness by ship owners and operators of the benefits of using Gibraltar for a wide range of maritime services.

Mr Holiday reiterated the Government’s willingness to co-operate with the Spanish authorities relating to oil-pollution, but regretted that this had, as yet, not been possible because Spain has attached unacceptable conditions to these meetings.

The New Gibraltar Port Handbook 

The Government has today launched the new Port handbook, which has been prepared by the Gibraltar Port Authority. This is the second handbook to be produced for the Port by the Government, the first having been issued in 1999. An innovation on this occasion is that the Handbook has been designed as an Information Pack, consisting of five elements: a generic Port Handbook; specialist handbooks on Cruising, Yachting and the Gibraltar Ship Registry; and a completely new Port Map. This allows total flexibility of use, as one or more elements of the Information Pack can be used to the exclusion of the others, dependent on the enquiry, the exhibition being attended or the marketing initiative.

The full Pack will be distributed for the first time at the Gibraltar stand at the Seatrade Cruise Convention which will be held next month in Miami. The specialist handbook on Yachting was prepared in time for the London Boat Show, in January this year, where it was well received. The other elements of the Information Pack were not available at that stage. The Handbooks will be used at Port and Ship Registry presentations and maritime trade fairs during the course of this year and in 2003. They will also be made available to the local shipping community for onward circulation to their existing and prospective clients.

"The Port Handbook is an exceedingly valuable marketing tool", said Hon Joe Holliday, Minister for Transport. "We need to ensure that ship owners, ship managers, operators and everyone involved in shipping anywhere in the world is aware of the range of services the Port of Gibraltar and the Ship Registry offer and the excellence and quality of service of our range of products. The Handbook will assist the Port and the Ship Registry to continue promoting Gibraltar as a one stop shop on an on-going basis."

The Handbook is expected to have a two year life, after which it will be replaced to ensure that the information contained therein is up to date.

GIBRALTAR SHIP REGISTRY PROMOTION IN LONDON

The Ministry for Tourism and Transport will be hosting a reception on Wednesday 4th April 2001 at the Café Royal in London. The event is in support of the "Which Register? Which Flag?" conference which has been organised by the prestigious shipping newspaper Lloyd's List.

The Two-day conference on 4th and 5th April 2001 will review the political, economic and business issues associated with ship registration and flagging. One of the invited speakers at this event is Capt. F R Chowdhury the Gibraltar Maritime Administrator who heads the Gibraltar Ship Registry. Captain Chowdhury will also be forming part of a panel which will discuss issues which impact on how registers can improve and maintain standards in shipping.

The conference will be attended by international ship owners, operators, ship registers, financial and legal service providers and maritime administrators. It will cover a variety of topics including tonnage tax and incentives and the effects of e-commerce on ship operation.

"This conference was identified as being of particular importance for Gibraltar", said Hon Joe Holliday, the Minister with responsibility for the Ship Registry and the Port. "The Which Register? Which Flag?" conference provides a key target audience to which the advantages of ship registration in Gibraltar can be marketed. The Ship Registry continues to grow, both in terms of the number of vessels on the Register and in terms of the quality of the vessels registered in Gibraltar. The advantages of Gibraltar as a Category I Red Ensign Register will be put across to the conference delegates".

The Gibraltar reception will be hosted by Mr Richard Garcia, Principal Secretary at the
Ministry for Tourism and Transport. In addition to Captain Chowdhury, Mr Tony Davis, Chief Executive of the Gibraltar Port Authority, will also be present.

Tourism and Transport Minister, Joe Holliday was scheduled to make a keynote presentation at the Conference but has had to cancel his trip to the UK to deal with the disruptive action currently being taken by taxi drivers.

GIBRALTAR AT SEATRADE MIAMI

Gibraltar will once again be represented at the annual Seatrade Cruise Shipping Convention which takes place in Miami between the 5 and 9 March 2001. This is the world's largest annual exhibition and conference for the cruise industry and draws more than 101000 attendees and 1,000 exhibitors from 100 countries Conceived to provide manufacturers and service providers a unique industry specific showcase, the Cruise Shipping Convention's exhibition is attended by cruise liner decision makers and purchasing agents, as well as by ship designers, architects, itinerary planners and shore excursion managers.

The four day conference which runs parallel to the exhibition is a programme developed for the industry by the industry. Each conference topic has been designed and researched to reflect current and developing industry issues and covers such issues as the relationship between ports and cruise lines, environmental issues, marketing, ship operations and the development of new itineraries.

Commenting on Gibraltar's participation at the Convention, the Minister for Tourism and Transport, the Hon J .J Holliday said, "The cruise industry is expanding extremely rapidly and it is most important that not only are the key decision makers reminded about Gibraltar all the time as part of an on-going marketing policy, but that they are also kept abreast of what we are doing to improve the product and to make Gibraltar more welcoming to cruise ships. There is huge competition from neighbouring ports and we must take every opportunity to sell Gibraltar as a remarkable and unique port of call."

The Gibraltar stand will form part of the Medcruise presence at the exhibition. Private sector players connected with the Gibraltar cruise industry have been invited to join the Gibraltar Tourist Board on the Gibraltar stand.

IMO White list Amended

Gibraltar, in membership with UK, included in maritime "white list"
A number of countries that applied for inclusion in the 'white list' did not make it. The successful 71 - plus an associate member - include Gibraltar, which is not a full member but is part of the UK membership of the International Maritime Organization.

This is the full text of the IMO statement:

"71 COUNTRIES MAKE IMO'S INITIAL STCW WHITE LIST
The so-called "White List" of countries deemed to be giving "full and complete effect" to the revised STCW Convention (STCW 95) has been published by IMO. The 73rd session of the Organization’s Maritime Safety Committee (MSC), meeting from 27 November to 6 December 2000, formally endorsed the findings of a working group established to examine a report made by the Secretary-General to the MSC, which revealed that 71 countries and one Associate Member of IMO had met the criteria for inclusion on the list.
The 1995 amendments to STCW (the International Convention on Standards of Training, Certification and Watchkeeping for Seafarers) which entered into force on 1 February 1997, revised and updated the original 1978 Convention, setting out clearly defined minimum competency requirements for all seafarers and taking into account developments in technology since the 1978 Convention was adopted. A position on the White List entitles other Parties to accept, in principle, that certificates issued by or on behalf of the parties on the list are in compliance with the Convention. 

Tighter PSC targeting expected
It is expected that ships flying flags of countries that are not on the White List will be increasingly targeted by Port State Control inspectors. A Flag state Party that is on the White List may, as a matter of policy, elect not to accept seafarers with certificates issued by non White List countries for service on its ships. If it does accept such seafarers, they will be required by 1 February 2002 also to have an endorsement, issued by the flag state, to show that their certificate is recognized by the flag state. By 1 February 2002, masters and officers should hold STCW 95 certificates or endorsements issued by the flag State. Certificates issued and endorsed under the provisions of the 1978 STCW Convention will be valid until their expiry date.
It was stressed at the meeting that giving "full and complete effect" to the revised Convention may not be the same for all Parties. Some may choose not to have any maritime training institutes at all and rely on recognition of certificates issued to seafarers by other states. Similarly, some Parties may only provide a limited scope of training, such as for ratings only. 
The fact that a Party is not listed on the White List does not invalidate certificates or endorsements issued by that Party. Nothing in the STCW Convention prevents the employment of any seafarer who holds a valid certificate or endorsement issued by a Party to the Convention. Nevertheless, the White List will become one of several criteria, including the inspection of facilities and procedures, that can be applied in the selection of properly trained and qualified seafarers. Countries not initially included in the White List will be able to continue with the assessment process with a view to inclusion on the list at a later stage.
The publication of the list marks the end of the first stage of a ground-breaking verification procedure in which, for the first time, IMO has been given a direct role in the implementation of one of its instruments. Panels of experts have spent much of the past two years engaged in rigorous assessment of information presented to them by Parties to the Convention concerning their ability to meet the standards enshrined in STCW 95. Panel members were selected, as far as possible, to give a wide geographical spread and a broad coverage of the different facets of the Convention - deck and engineering knowledge, for example. These panels submitted their findings to IMO Secretary-General William O’Neil, who in turn reported to the MSC which has now approved and issued the list.

Challenging task 
For most countries, preparation of the submissions to the Secretary-General represented a demanding and challenging task. It required not only reporting on national laws, training requirements, standards and systems in place, but also ensuring that all of those elements met the revised Convention requirements and could pass the scrutiny of persons with detailed knowledge of those requirements. 
According to Mr O’Neil, the publication of the White List is a clear demonstration that the global regulatory process for shipping is taking ever greater account of the human element. He said, "The revised STCW Convention and the ISM Code, which takes full effect in 2002, are both aimed squarely at addressing human issues in shipping. Although technical matters will retain their importance, improving the standards of seafarers is a vital part of the safety equation. The White List shows that the human element is taking its proper place in the industry’s priorities." 

Expanded role for IMO?
Mr O’Neil also said he believed the verification process pointed the way towards a new and expanded role for IMO in the future. "The fact that the authority for assessing implementation of STCW 1995 was delegated to IMO by Member States," he said, "indicates that the will to give the Organization a greater role in implementation does exist." He added, "If this approach can be extended into other areas where quality assurance needs to be reinforced and the name of IMO would lend credibility, then IMO is ready to respond."
It has been estimated that some 80 per cent of marine casualties are due in some part to human error. In setting out unambiguously which countries are meeting the latest standards and requirements, the White List marks a significant step forward in IMO’s global effort to rid the world of sub-standard ships and shipping. For the first time, it provides an IMO "seal of approval" for countries that have properly implemented the provisions of a Convention. 

Parties included on the "White List" at 6 December 2000

Cammell Laird's Gibraltar yard buyout agreed

  The management buyout of Cammell Laird (Gibraltar) Limited has been agreed today, said a Gibraltar government statement this evening.

  The government has been in discussion with the management of the Gibraltar yard and the receivers of Cammell Laird in the UK with a view to ensuring the continued operation of the shipyard in Gibraltar.

  "To this end the government has supported the management of Cammell Laird (Gibraltar) Limited in management 'buyout' of the company.  That buyout has been agreed today," said the statement.

  It added: The government is delighted that the shiprepair yard will continue to operate, without interruption, as at present, in the hands of the people who have already demonstrated the ability to operate it profitably and successfully.

  Commenting on the development, chief minister Peter Caruana said: "It is great news for the yard's employees, apprentices and for the economy as a whole.  it is a great relief to have resolved this issue without the trauma that there has been elsewhere, or here at the time of the Kvaerner pull out.  The management of the yard enjoys the full confidence of the government." (21.05.01) 

Gibraltar moves on box port 

The government of Gibraltar has taken the next step towards developing a transshipment/line linking container port. Tourism and Transport minister Joe Holliday last week announced the appointment of Credit Agricole Indoesuez as Transaction Advisers for the project. A decision to go ahead, or not, is now likely before April next year.
The minister made the announcement during his introduction to a series of seminars, aimed at boosting Gibraltar’s maritime economy, held at the Baltic Exchange last Tuesday. Several local firms took stands in a related exhibition. New officials brochures on Gibraltar’s shipping-related activities, including the port and the Ship Register, were distributed together with copies of the special Panorama shipping supplement.
The transaction advisor now has to appoint two consultants to carry out preliminary feasibility studies. They will have to establish whether there is a market for the proposal terminal, where it could be built and how much would it cost. The consultants will report early next year so that the government can make a decision by the end of March.
The possibility of building a box port at Gibraltar was raised by a government-commissioned study by independent consultants MDS transmodal a couple of years ago. Algeciras, across the Spain, already serves a similar function for giant shipping line Maersk Sealand while Sines in Portugal is being developed by Singapore’s PSA Corp for a similar role. In addition Tangiers also has ambition to build a transshipment terminal.
The Baltic Exchange event was part of the wider “Gibraltar Day” held at various locations in the City of London and which culminated in a re-enactment of the Ceremony of the Keys outside Guildhall.
In another development Mr Holliday also announced a plan to create a school of Maritime Studies in Gibraltar during the government’s present term of office. The idea is to provide basic training for Gibraltarians who wish to make a career at sea or in shipping and port-related activities.
The minister added: “The government wishes to achieve for shipping what has already become a reality for the hospitality industry through the Gibraltar School of tourism.” 

Green Levy to help fight spills

Singapore-style bunker code for Gib

SHIPS bunkering at Gibraltar may soon have to pay an “environmental levy. This was announced by Gibraltar Port Authority chief executive Tony Davis during last week’s seminar to London’s shipping community at the Baltic Exchange.
The idea, now under consideration, is to charge a levy to help purchase and maintain oil pollution response equipment and to train port staff to deal with pollution incidents.
Mr Davis said: “Because of the large volumes of bunkers delivered in Gibraltar, a small charge will have little impact on individual ships.” He explained that a 4 pence per ton levy on bunkers supplied would only add £16 to a ship taking 400 tons but the total raised from the levy year would be about £104,000.
In another move in the bunkering sector Gibraltar is likely to follow Singapore’s example and introduce a code of practice for bunker operations, similar to Singapore’s Code of Practice for Bunkering.
The Singapore code requires all bunker suppliers and operators to comply with its standards before a licence can be issued, as well as setting minimum requirements for delivery operations, and the detailing of proper documentation. Mr Davis said: “It is hoped that we’ll be in a position to take similar measures in the not too far future.” He added: “ A reputation for efficiency, together with high operational standards, will certainly help attract increased business.” 

THE PORT ADVISORY COMMITTEE

The first meeting of the newly-created Port Advisory Committee was held today. The Committee is chaired by the Minister for Tourism and Transport, Joe Holliday, The members are, Messrs John Bassadone, John Gaggero. Paul Imossi, Mel Smith and Capt Vassilios Terzis. Ex-officio members of the Council are Messrs Richard Garcia, Principal Secretary at the Ministry for Tourism and Transport, and Tony Davis. Chief Executive of the Gibraltar Port Authority,

The members of the Council, other than the ex-officio members, have been appointed to the Council in a personal and not a representative capacity and for a period of two years. Their professional experience covers a wide range of port activity, from ship repairing, bunker supplying and ship agency work to stevedoring and cruise ship work.

"I decided that it would be helpful to have a body of commercially experienced persons to advise me in the formulation of policy on the commercial development of the Port," said Joe Holliday, the Minister with responsibility for the Port. "I believe that it is necessary to further examine our current strategy for the development of the Port, which is one of Gibraltar's main natural assets, and the role of the Port Advisory Committee will be to assist me in taking into account commercial considerations when 1 draw up an initial five year plan for the Port in the first instance. Long term planning is also important, and I will look to the Committee to advise me on the commercial aspects which should impact on the preparation and development of a long-term strategy for the Port."

The Part Advisory Committee will meet bimonthly.

(10 Oct 2000)