IMPACT OF MAN POWER ISSUES FROM AN INDIAN OWNER

PERSPECTIVEby

Capt Pradeep CorreaGeneral Manager

Great Eastern Shipping Co Ltd

DECEMBER 19 2008

Presentation Structure

bull Growth in Indiarsquos Economy

bull Overall Skilled-Manpower Situation in India

bull Shipboard Manning Scenario

bull What needs to be done

bull Steps taken by Indian Shipping Companies

bull Concluding Remarks

Indiarsquos Economic Scenario

bull Seventh largest second most populous and worldrsquos fourth largest economy in terms of purchasing power parity

bull The real GDP growth has averaged about 6 per annum since 1997

bull FY08 GDP growth rate of 85 - Second only to China

Indian Maritime Industrybull Indiarsquos Exim trade for 2007-08 stood at $39130 billion an

increase of 255 for the yearbull Indiarsquos share in global merchandise trade in 2007-08 is 15 and

expected to be 5 by 2020bull Growth rate of Indian logistics industry is around 7- 8 per

annum Container trade growth expected to be 2-25 times of GDP growth

bull As per NMDP projections traffic at ports is expected to grow at a rate of 1358 till 2012

bull India has the largest merchant shipping fleet among the developing countries

bull Shipping tonnage under the Indian flag has notched a record of 90 mn GT as on Jan 08

Indian Maritime Industry Contdhellip

bull Present Tonnage

ndash 903 Million Gross Tonnage

ndash 1499 Million DWT

ndash About 116 of world fleet

bull Ageing Indian Fleet - Average age of fleet is 187 years

bull Needs over $20 billion in next 5 years for replacement

augmentation of fleet so as to maintain existing share of

Indian ships in overseas trade

400

500

600

700

800

900

1000

Period

Total

fleet

mn G

RT

Growth of Indian Fleet

Composition of Indian Fleet as on 01012008

LPG carrier4

Tanker52

Bulker32

Other11Acid Carrier

1

Other Includes ContainerMultipurposeRo-RoReeferOffshore and others

Age Profile of Indian Fleetas on 01-01-2008

142 143 127 124

464

00

100

200

300

400

500

Under 5yrs

5 - 9 yrs

10 - 14 yrs

15 - 19 yrs

Over 20yrs

Average Age of Indian Fleet is 187 yearsFleet size 850

GT vs Age

Indiarsquos Overall Skilled Manpower Situation

bull Tremendous requirement of skilled man power by the growing Indian industrial sector for sustaining the growth rate

bull Generated 113 million net new jobs annually between 2000 and 2005 - over 60 more than the 7 million new jobs created in China

bull However the industry is facing a shortage of Specialized manpower to meet its present and future requirements

bull Ironically still high level of unemployment

Indiarsquos Overall Skilled Manpower Situation(cont)

bull Present State of University Education ndash

ndash Second highest number of engineering graduates after China - 401791 engineers in 2003-04 and 464743 engineers in 2004-05

ndash Fast catching up with China with about 600000 engineering graduates last year

ndash The United States produces only 70000 engineering graduates every year All of Europe produces just 100000

Seafarers ndash Global Scenario

bull Worldwide shortage

ndash By 2015 shortage of marine officers projected to nearly treble to 27000 from the present 10000

ndash As predicted by BIMCO current shortage will aggravate unless urgent steps are taken

ndash Aging OECD Officers

Seafarers ndash Global Scenario(cont)

bull Difficulties in attracting the manpower

ndash Lesser number of young people opting for seafaring as a career

ndash Physically demanding onboard job profile

ndash Availability of well-remunerative shore-based jobs

ndash Glamour and Fun associated with traditional seafaring has waned

Seafarers ndash Global Scenario(cont)

bull Increase in casualties

ndash Navigational accidents are on rise

ndash Rise coincided with the start of the recent shipping boom

ndash Number of accidents per ship close to mid-1980s when safety record was regarded as poor

ndash 90 accidents can be traced to human error

ndash With the current labour crisis and fleet growth shippingrsquos safety record is in danger

(Source DNV as quoted in TradeWinds)

Seafarers ndash Indian Scenario

bull Indian shipping industry is facing an acute shortage of Officers in the nautical side ndash more critical in the ranks of Mate and Second Mate

bull Indian Ship Owners are unable to meet Matrix Requirements of Oil Majors with respect to experience of senior Nautical and Engineer officers thereby losing lucrative business opportunities

bull Indian seafarers are much sought after all over the world for their skill knowledge integrity and reliability

bull Drift of Indian seafarers from Indian flag ships to foreign flag under the lure of lsquotax-freersquo pay packet arising out of differential tax treatment

bull Tonnage acquisition programme of the Indian shipping companies in jeopardy due to shortage of quality manpower

Indian Tonnage Acquisition ndash Seafaring Officers Shortage

bull Most of the Indian companies have launched ambitious tonnage expansion programme

bull Companies are also diversifying into new areas like container offshore LPGLNG etc

bull With such ambitious expansion program in Indiarsquos tonnage manpower (officers) shortage will worsen

Reasons for Shortage

bull Wagescost to Indian companies is similar compared with foreign flag ndash Indian companies lose skilled manpower due to differential ldquoPersonal Income Taxrdquo

bull Recruitment of foreign nationals on Indian ships permitted selectively by Administration However feasibility almost NIL due to various clearances

bull Indian Nationals holding Foreign Certificates from Australia Singapore Canada Hongkong NewZealand Sri Lanka NOT RECOGNIZED by Indian Government

bull Lengthy Fatigue prodded Exam process forces them to go to other countries or even make a career change

Dangers of Inadequacy in Manpower

bull Increased onboard accidentsincidents

bull Higher detentions by PSC authorities

bull Oil major approval failures on account of non-compliance of experienceage matrix

bull Reflection on reputation of companyflag administration

Working Indian Seafarers bull India is the 6th largest manpower supplying country in the world

bull The estimated seafaring population is as under

bull India is constantly widening the base to sustain its position as one of the largest manpower supplying country

Category Indian flag vessels

Foreign flag vessels

Total

Officers 8900 18000 26900

Ratings 21000 34000 55000

Total 29900 52000 81900

Seafarers ndash Indian Scenariobull Safe Manning Requirement

Nautical Side Engg Side

Master 1 Chief Engr 1

Mate 1 Second Engr 1

2nd Mate 2 3rd 4th Engr 2

Rating Nav Watch 3 Eng Watch Rating 3

Deck Crew 3

Cook 1

bull Govt support sought forndash Faster and easier clearance procedure for recruitment of foreign officersndash Officers holding COC issued by Singapore Australia etc be permitted to sail on Indian shipsndash Reduction of sailing time for cadetsndash Reduction in Safe Manning Requirement in line with other Flags Presently short term dispensation for

reduction in MSMD permitted

Basic Changes that need to be introduced

bull Promote shipping as a long term career

bull Tap the length and breadth of the Country

bull Create more awareness about seafaring

bull Resolving Shippingrsquos Image Crisis

bull Rationalization of seafarersrsquo taxation

bull SMD in line with the international norms

bull Sympathetic view of industry demands

Measures to address shortage of officers

Allow Indian ship owners to recruit Indian Nationals holding Foreign CertificatesCompulsory Service for Indian officers for 3 years on Indian ships who have received on-board training on our shipsUnder Tonnage Tax Regime trainees trained on Indian Flag Vessel obliged to serve tonnage tax company for 3 years Sea Time after certification Administration under Gazette Notification obliged to devise mechanism to ensure compliance by trainees No procedure yet in placeRationalisation of manning scales in line with international normsIncrease on-board training slots on foreign flag ships employing Indian officers Stem the drift of officers from Indian ships to foreign ships by removing Tax discrimination

Steps taken by Indian Companies

bull Wages at par with foreign companies ndash Grossing up salaries to take care of the tax burdenndash Net result ndash Higher CTC for Indian companies

bull Indian Shipping Companies have increased ship board training berths A leading Indian shipping company has converted five vessels as cadet training vessels

bull Social security benefits at par with foreign cosbull Extra resource allocation towards trainingbull Publicity campaignsbull Incorporating latest HRM techniques for better

understanding of the needs and problems

SHIPPINGrsquoS IMAGE

bull What is it bull Why is it important bull How is it created bull Who is responsible bull What can we do about it bull

A FEW PERSONAL OBSERVATIONS

bull ldquoImagerdquo like beauty is in the eye of the beholder thus there exist a spectrum of images of shipping

bull The image of the industry shapes the business and legislative environment and our ability to attract resources

SHIPPINGrsquoS IMAGE

bull The image of the industry is created by the performance of the industry players (environmental social responsibility customer satisfactionhellip)

bull The image of the industry may also be influenced (or reinforced) by the approach actions and comments of the media (specialised and general) politicians regulators and helliphelliphelliphelliphellip

SHIP STAFF

Frequentlybull Treated as second class citizensbull Criminalised after accidentsbull Pressured by terminals charterers and othersbull Subjected to unnecessary number of ship inspectionsbull Provided with inadequate manuals equipment and cargo informationbull Flooded by a tsunami of paperworkbull Suffer from regulations developed without recognition of the

ramificationsbull Suffer excessive fatiguebull Morehelliphelliphelliphelliphelliphellipbull Owners actions includebull 10487081048708 Better accommodation standards and home communicationsbull 10487081048708 Commitments to (lifetime) education and trainingbull 10487081048708 Welfare packages

SHIP STAFF

Owners actions includebull Better accommodation standards

and home communicationsbull Commitments to (lifetime)

education and trainingbull Welfare packages

SHIP STAFF

bull In recent times the attitude of the Ratings are seen to be more positive than those of the Officers on board Indian flag ships

Maritime Administration

We appreciate and are grateful to our Govt forndash Granting short term dispensations to SMD on bulk

carriersndash Permitting NWKO(NCV) officers to sail on coastal vessels

including tankersndash Revising SMD thereby rationalizing manning on NCVOff

ndash Shore Fleetndash Reducing sea time requirements of cadets on cadet training

ships and introduction of graduate and NCV cadet schemes for ratings

ndash Tirelessly assisting us sail our vessels without any hesitation at even odd hours of the day

Maritime Administration

bull Areas of Concern -ndash Administration could not keep pace with the growth of

Indian Shipping and also could not adapt with the changing scenario of the requirement of customers of the industry

ndash Examination process ndash long and lengthy It is observed that around 2000 TNOCs have joined every year since introduction of IGNOU ndash DGS Scheme in 2004 However passing rate of second mate COC holders less than 25 per annum

Maritime Administrationbull Actions Requested -

ndash Full sea time for TNOCs for a period of Six months while serving on Off ndash Shore Research vessels

ndash Outsourcing Junior level competency examinations such as 2M FG Class IV etc

ndash Review process time for issuance of certificates after completion of examinations

ndash Expedite documentation for endorsements and revalidationsndash MMD Sight test may be conducted by a qualified ophthalmologist ndash Overcome shortage of Surveyors It is understood 50 of the

vacancies are lying vacant or are on ad hoc appointments

Concluding Remarks

bull With changing aspirations of the young population in a growing economy seafaring is not the most sought after career choice particularly for the urban youth

bull Indian shipping industryrsquos grand plans to acquire tonnage faces severe shortage problem

bull Short term solution ndash rationalization in taxation SMD allowing foreign officers etc

bull Long term solution ndash As listed in earlier slides

THANK YOU

• Reasons for Shortage
• Dangers of Inadequacy in Manpower
• Working Indian Seafarers
• Measures to address shortage of officers
• Steps taken by Indian Companies

Presentation Structure

bull Growth in Indiarsquos Economy

bull Overall Skilled-Manpower Situation in India

bull Shipboard Manning Scenario

bull What needs to be done

bull Steps taken by Indian Shipping Companies

bull Concluding Remarks

Indiarsquos Economic Scenario

bull Seventh largest second most populous and worldrsquos fourth largest economy in terms of purchasing power parity

bull The real GDP growth has averaged about 6 per annum since 1997

bull FY08 GDP growth rate of 85 - Second only to China

Indian Maritime Industrybull Indiarsquos Exim trade for 2007-08 stood at $39130 billion an

increase of 255 for the yearbull Indiarsquos share in global merchandise trade in 2007-08 is 15 and

expected to be 5 by 2020bull Growth rate of Indian logistics industry is around 7- 8 per

annum Container trade growth expected to be 2-25 times of GDP growth

bull As per NMDP projections traffic at ports is expected to grow at a rate of 1358 till 2012

bull India has the largest merchant shipping fleet among the developing countries

bull Shipping tonnage under the Indian flag has notched a record of 90 mn GT as on Jan 08

Indian Maritime Industry Contdhellip

bull Present Tonnage

ndash 903 Million Gross Tonnage

ndash 1499 Million DWT

ndash About 116 of world fleet

bull Ageing Indian Fleet - Average age of fleet is 187 years

bull Needs over $20 billion in next 5 years for replacement

augmentation of fleet so as to maintain existing share of

Indian ships in overseas trade

400

500

600

700

800

900

1000

Period

Total

fleet

mn G

RT

Growth of Indian Fleet

Composition of Indian Fleet as on 01012008

LPG carrier4

Tanker52

Bulker32

Other11Acid Carrier

1

Other Includes ContainerMultipurposeRo-RoReeferOffshore and others

Age Profile of Indian Fleetas on 01-01-2008

142 143 127 124

464

00

100

200

300

400

500

Under 5yrs

5 - 9 yrs

10 - 14 yrs

15 - 19 yrs

Over 20yrs

Average Age of Indian Fleet is 187 yearsFleet size 850

GT vs Age

Indiarsquos Overall Skilled Manpower Situation

bull Tremendous requirement of skilled man power by the growing Indian industrial sector for sustaining the growth rate

bull Generated 113 million net new jobs annually between 2000 and 2005 - over 60 more than the 7 million new jobs created in China

bull However the industry is facing a shortage of Specialized manpower to meet its present and future requirements

bull Ironically still high level of unemployment

Indiarsquos Overall Skilled Manpower Situation(cont)

bull Present State of University Education ndash

ndash Second highest number of engineering graduates after China - 401791 engineers in 2003-04 and 464743 engineers in 2004-05

ndash Fast catching up with China with about 600000 engineering graduates last year

ndash The United States produces only 70000 engineering graduates every year All of Europe produces just 100000

Seafarers ndash Global Scenario

bull Worldwide shortage

ndash By 2015 shortage of marine officers projected to nearly treble to 27000 from the present 10000

ndash As predicted by BIMCO current shortage will aggravate unless urgent steps are taken

ndash Aging OECD Officers

Seafarers ndash Global Scenario(cont)

bull Difficulties in attracting the manpower

ndash Lesser number of young people opting for seafaring as a career

ndash Physically demanding onboard job profile

ndash Availability of well-remunerative shore-based jobs

ndash Glamour and Fun associated with traditional seafaring has waned

Seafarers ndash Global Scenario(cont)

bull Increase in casualties

ndash Navigational accidents are on rise

ndash Rise coincided with the start of the recent shipping boom

ndash Number of accidents per ship close to mid-1980s when safety record was regarded as poor

ndash 90 accidents can be traced to human error

ndash With the current labour crisis and fleet growth shippingrsquos safety record is in danger

(Source DNV as quoted in TradeWinds)

Seafarers ndash Indian Scenario

bull Indian shipping industry is facing an acute shortage of Officers in the nautical side ndash more critical in the ranks of Mate and Second Mate

bull Indian Ship Owners are unable to meet Matrix Requirements of Oil Majors with respect to experience of senior Nautical and Engineer officers thereby losing lucrative business opportunities

bull Indian seafarers are much sought after all over the world for their skill knowledge integrity and reliability

bull Drift of Indian seafarers from Indian flag ships to foreign flag under the lure of lsquotax-freersquo pay packet arising out of differential tax treatment

bull Tonnage acquisition programme of the Indian shipping companies in jeopardy due to shortage of quality manpower

Indian Tonnage Acquisition ndash Seafaring Officers Shortage

bull Most of the Indian companies have launched ambitious tonnage expansion programme

bull Companies are also diversifying into new areas like container offshore LPGLNG etc

bull With such ambitious expansion program in Indiarsquos tonnage manpower (officers) shortage will worsen

Reasons for Shortage

bull Wagescost to Indian companies is similar compared with foreign flag ndash Indian companies lose skilled manpower due to differential ldquoPersonal Income Taxrdquo

bull Recruitment of foreign nationals on Indian ships permitted selectively by Administration However feasibility almost NIL due to various clearances

bull Indian Nationals holding Foreign Certificates from Australia Singapore Canada Hongkong NewZealand Sri Lanka NOT RECOGNIZED by Indian Government

bull Lengthy Fatigue prodded Exam process forces them to go to other countries or even make a career change

Dangers of Inadequacy in Manpower

bull Increased onboard accidentsincidents

bull Higher detentions by PSC authorities

bull Oil major approval failures on account of non-compliance of experienceage matrix

bull Reflection on reputation of companyflag administration

Working Indian Seafarers bull India is the 6th largest manpower supplying country in the world

bull The estimated seafaring population is as under

bull India is constantly widening the base to sustain its position as one of the largest manpower supplying country

Category Indian flag vessels

Foreign flag vessels

Total

Officers 8900 18000 26900

Ratings 21000 34000 55000

Total 29900 52000 81900

Seafarers ndash Indian Scenariobull Safe Manning Requirement

Nautical Side Engg Side

Master 1 Chief Engr 1

Mate 1 Second Engr 1

2nd Mate 2 3rd 4th Engr 2

Rating Nav Watch 3 Eng Watch Rating 3

Deck Crew 3

Cook 1

bull Govt support sought forndash Faster and easier clearance procedure for recruitment of foreign officersndash Officers holding COC issued by Singapore Australia etc be permitted to sail on Indian shipsndash Reduction of sailing time for cadetsndash Reduction in Safe Manning Requirement in line with other Flags Presently short term dispensation for

reduction in MSMD permitted

Basic Changes that need to be introduced

bull Promote shipping as a long term career

bull Tap the length and breadth of the Country

bull Create more awareness about seafaring

bull Resolving Shippingrsquos Image Crisis

bull Rationalization of seafarersrsquo taxation

bull SMD in line with the international norms

bull Sympathetic view of industry demands

Measures to address shortage of officers

Allow Indian ship owners to recruit Indian Nationals holding Foreign CertificatesCompulsory Service for Indian officers for 3 years on Indian ships who have received on-board training on our shipsUnder Tonnage Tax Regime trainees trained on Indian Flag Vessel obliged to serve tonnage tax company for 3 years Sea Time after certification Administration under Gazette Notification obliged to devise mechanism to ensure compliance by trainees No procedure yet in placeRationalisation of manning scales in line with international normsIncrease on-board training slots on foreign flag ships employing Indian officers Stem the drift of officers from Indian ships to foreign ships by removing Tax discrimination

Steps taken by Indian Companies

bull Wages at par with foreign companies ndash Grossing up salaries to take care of the tax burdenndash Net result ndash Higher CTC for Indian companies

bull Indian Shipping Companies have increased ship board training berths A leading Indian shipping company has converted five vessels as cadet training vessels

bull Social security benefits at par with foreign cosbull Extra resource allocation towards trainingbull Publicity campaignsbull Incorporating latest HRM techniques for better

understanding of the needs and problems

SHIPPINGrsquoS IMAGE

bull What is it bull Why is it important bull How is it created bull Who is responsible bull What can we do about it bull

A FEW PERSONAL OBSERVATIONS

bull ldquoImagerdquo like beauty is in the eye of the beholder thus there exist a spectrum of images of shipping

bull The image of the industry shapes the business and legislative environment and our ability to attract resources

SHIPPINGrsquoS IMAGE

bull The image of the industry is created by the performance of the industry players (environmental social responsibility customer satisfactionhellip)

bull The image of the industry may also be influenced (or reinforced) by the approach actions and comments of the media (specialised and general) politicians regulators and helliphelliphelliphelliphellip

SHIP STAFF

Frequentlybull Treated as second class citizensbull Criminalised after accidentsbull Pressured by terminals charterers and othersbull Subjected to unnecessary number of ship inspectionsbull Provided with inadequate manuals equipment and cargo informationbull Flooded by a tsunami of paperworkbull Suffer from regulations developed without recognition of the

ramificationsbull Suffer excessive fatiguebull Morehelliphelliphelliphelliphelliphellipbull Owners actions includebull 10487081048708 Better accommodation standards and home communicationsbull 10487081048708 Commitments to (lifetime) education and trainingbull 10487081048708 Welfare packages

SHIP STAFF

Owners actions includebull Better accommodation standards

and home communicationsbull Commitments to (lifetime)

education and trainingbull Welfare packages

SHIP STAFF

bull In recent times the attitude of the Ratings are seen to be more positive than those of the Officers on board Indian flag ships

Maritime Administration

We appreciate and are grateful to our Govt forndash Granting short term dispensations to SMD on bulk

carriersndash Permitting NWKO(NCV) officers to sail on coastal vessels

including tankersndash Revising SMD thereby rationalizing manning on NCVOff

ndash Shore Fleetndash Reducing sea time requirements of cadets on cadet training

ships and introduction of graduate and NCV cadet schemes for ratings

ndash Tirelessly assisting us sail our vessels without any hesitation at even odd hours of the day

Maritime Administration

bull Areas of Concern -ndash Administration could not keep pace with the growth of

Indian Shipping and also could not adapt with the changing scenario of the requirement of customers of the industry

ndash Examination process ndash long and lengthy It is observed that around 2000 TNOCs have joined every year since introduction of IGNOU ndash DGS Scheme in 2004 However passing rate of second mate COC holders less than 25 per annum

Maritime Administrationbull Actions Requested -

ndash Full sea time for TNOCs for a period of Six months while serving on Off ndash Shore Research vessels

ndash Outsourcing Junior level competency examinations such as 2M FG Class IV etc

ndash Review process time for issuance of certificates after completion of examinations

ndash Expedite documentation for endorsements and revalidationsndash MMD Sight test may be conducted by a qualified ophthalmologist ndash Overcome shortage of Surveyors It is understood 50 of the

vacancies are lying vacant or are on ad hoc appointments

Concluding Remarks

bull With changing aspirations of the young population in a growing economy seafaring is not the most sought after career choice particularly for the urban youth

bull Indian shipping industryrsquos grand plans to acquire tonnage faces severe shortage problem

bull Short term solution ndash rationalization in taxation SMD allowing foreign officers etc

bull Long term solution ndash As listed in earlier slides

THANK YOU

• Reasons for Shortage
• Dangers of Inadequacy in Manpower
• Working Indian Seafarers
• Measures to address shortage of officers
• Steps taken by Indian Companies

Indiarsquos Economic Scenario

bull Seventh largest second most populous and worldrsquos fourth largest economy in terms of purchasing power parity

bull The real GDP growth has averaged about 6 per annum since 1997

bull FY08 GDP growth rate of 85 - Second only to China

Indian Maritime Industrybull Indiarsquos Exim trade for 2007-08 stood at $39130 billion an

increase of 255 for the yearbull Indiarsquos share in global merchandise trade in 2007-08 is 15 and

expected to be 5 by 2020bull Growth rate of Indian logistics industry is around 7- 8 per

annum Container trade growth expected to be 2-25 times of GDP growth

bull As per NMDP projections traffic at ports is expected to grow at a rate of 1358 till 2012

bull India has the largest merchant shipping fleet among the developing countries

bull Shipping tonnage under the Indian flag has notched a record of 90 mn GT as on Jan 08

Indian Maritime Industry Contdhellip

bull Present Tonnage

ndash 903 Million Gross Tonnage

ndash 1499 Million DWT

ndash About 116 of world fleet

bull Ageing Indian Fleet - Average age of fleet is 187 years

bull Needs over $20 billion in next 5 years for replacement

augmentation of fleet so as to maintain existing share of

Indian ships in overseas trade

400

500

600

700

800

900

1000

Period

Total

fleet

mn G

RT

Growth of Indian Fleet

Composition of Indian Fleet as on 01012008

LPG carrier4

Tanker52

Bulker32

Other11Acid Carrier

1

Other Includes ContainerMultipurposeRo-RoReeferOffshore and others

Age Profile of Indian Fleetas on 01-01-2008

142 143 127 124

464

00

100

200

300

400

500

Under 5yrs

5 - 9 yrs

10 - 14 yrs

15 - 19 yrs

Over 20yrs

Average Age of Indian Fleet is 187 yearsFleet size 850

GT vs Age

Indiarsquos Overall Skilled Manpower Situation

bull Tremendous requirement of skilled man power by the growing Indian industrial sector for sustaining the growth rate

bull Generated 113 million net new jobs annually between 2000 and 2005 - over 60 more than the 7 million new jobs created in China

bull However the industry is facing a shortage of Specialized manpower to meet its present and future requirements

bull Ironically still high level of unemployment

Indiarsquos Overall Skilled Manpower Situation(cont)

bull Present State of University Education ndash

ndash Second highest number of engineering graduates after China - 401791 engineers in 2003-04 and 464743 engineers in 2004-05

ndash Fast catching up with China with about 600000 engineering graduates last year

ndash The United States produces only 70000 engineering graduates every year All of Europe produces just 100000

Seafarers ndash Global Scenario

bull Worldwide shortage

ndash By 2015 shortage of marine officers projected to nearly treble to 27000 from the present 10000

ndash As predicted by BIMCO current shortage will aggravate unless urgent steps are taken

ndash Aging OECD Officers

Seafarers ndash Global Scenario(cont)

bull Difficulties in attracting the manpower

ndash Lesser number of young people opting for seafaring as a career

ndash Physically demanding onboard job profile

ndash Availability of well-remunerative shore-based jobs

ndash Glamour and Fun associated with traditional seafaring has waned

Seafarers ndash Global Scenario(cont)

bull Increase in casualties

ndash Navigational accidents are on rise

ndash Rise coincided with the start of the recent shipping boom

ndash Number of accidents per ship close to mid-1980s when safety record was regarded as poor

ndash 90 accidents can be traced to human error

ndash With the current labour crisis and fleet growth shippingrsquos safety record is in danger

(Source DNV as quoted in TradeWinds)

Seafarers ndash Indian Scenario

bull Indian shipping industry is facing an acute shortage of Officers in the nautical side ndash more critical in the ranks of Mate and Second Mate

bull Indian Ship Owners are unable to meet Matrix Requirements of Oil Majors with respect to experience of senior Nautical and Engineer officers thereby losing lucrative business opportunities

bull Indian seafarers are much sought after all over the world for their skill knowledge integrity and reliability

bull Drift of Indian seafarers from Indian flag ships to foreign flag under the lure of lsquotax-freersquo pay packet arising out of differential tax treatment

bull Tonnage acquisition programme of the Indian shipping companies in jeopardy due to shortage of quality manpower

Indian Tonnage Acquisition ndash Seafaring Officers Shortage

bull Most of the Indian companies have launched ambitious tonnage expansion programme

bull Companies are also diversifying into new areas like container offshore LPGLNG etc

bull With such ambitious expansion program in Indiarsquos tonnage manpower (officers) shortage will worsen

Reasons for Shortage

bull Wagescost to Indian companies is similar compared with foreign flag ndash Indian companies lose skilled manpower due to differential ldquoPersonal Income Taxrdquo

bull Recruitment of foreign nationals on Indian ships permitted selectively by Administration However feasibility almost NIL due to various clearances

bull Indian Nationals holding Foreign Certificates from Australia Singapore Canada Hongkong NewZealand Sri Lanka NOT RECOGNIZED by Indian Government

bull Lengthy Fatigue prodded Exam process forces them to go to other countries or even make a career change

Dangers of Inadequacy in Manpower

bull Increased onboard accidentsincidents

bull Higher detentions by PSC authorities

bull Oil major approval failures on account of non-compliance of experienceage matrix

bull Reflection on reputation of companyflag administration

Working Indian Seafarers bull India is the 6th largest manpower supplying country in the world

bull The estimated seafaring population is as under

bull India is constantly widening the base to sustain its position as one of the largest manpower supplying country

Category Indian flag vessels

Foreign flag vessels

Total

Officers 8900 18000 26900

Ratings 21000 34000 55000

Total 29900 52000 81900

Seafarers ndash Indian Scenariobull Safe Manning Requirement

Nautical Side Engg Side

Master 1 Chief Engr 1

Mate 1 Second Engr 1

2nd Mate 2 3rd 4th Engr 2

Rating Nav Watch 3 Eng Watch Rating 3

Deck Crew 3

Cook 1

bull Govt support sought forndash Faster and easier clearance procedure for recruitment of foreign officersndash Officers holding COC issued by Singapore Australia etc be permitted to sail on Indian shipsndash Reduction of sailing time for cadetsndash Reduction in Safe Manning Requirement in line with other Flags Presently short term dispensation for

reduction in MSMD permitted

Basic Changes that need to be introduced

bull Promote shipping as a long term career

bull Tap the length and breadth of the Country

bull Create more awareness about seafaring

bull Resolving Shippingrsquos Image Crisis

bull Rationalization of seafarersrsquo taxation

bull SMD in line with the international norms

bull Sympathetic view of industry demands

Measures to address shortage of officers

Allow Indian ship owners to recruit Indian Nationals holding Foreign CertificatesCompulsory Service for Indian officers for 3 years on Indian ships who have received on-board training on our shipsUnder Tonnage Tax Regime trainees trained on Indian Flag Vessel obliged to serve tonnage tax company for 3 years Sea Time after certification Administration under Gazette Notification obliged to devise mechanism to ensure compliance by trainees No procedure yet in placeRationalisation of manning scales in line with international normsIncrease on-board training slots on foreign flag ships employing Indian officers Stem the drift of officers from Indian ships to foreign ships by removing Tax discrimination

Steps taken by Indian Companies

bull Wages at par with foreign companies ndash Grossing up salaries to take care of the tax burdenndash Net result ndash Higher CTC for Indian companies

bull Indian Shipping Companies have increased ship board training berths A leading Indian shipping company has converted five vessels as cadet training vessels

bull Social security benefits at par with foreign cosbull Extra resource allocation towards trainingbull Publicity campaignsbull Incorporating latest HRM techniques for better

understanding of the needs and problems

SHIPPINGrsquoS IMAGE

bull What is it bull Why is it important bull How is it created bull Who is responsible bull What can we do about it bull

A FEW PERSONAL OBSERVATIONS

bull ldquoImagerdquo like beauty is in the eye of the beholder thus there exist a spectrum of images of shipping

bull The image of the industry shapes the business and legislative environment and our ability to attract resources

SHIPPINGrsquoS IMAGE

bull The image of the industry is created by the performance of the industry players (environmental social responsibility customer satisfactionhellip)

bull The image of the industry may also be influenced (or reinforced) by the approach actions and comments of the media (specialised and general) politicians regulators and helliphelliphelliphelliphellip

SHIP STAFF

Frequentlybull Treated as second class citizensbull Criminalised after accidentsbull Pressured by terminals charterers and othersbull Subjected to unnecessary number of ship inspectionsbull Provided with inadequate manuals equipment and cargo informationbull Flooded by a tsunami of paperworkbull Suffer from regulations developed without recognition of the

ramificationsbull Suffer excessive fatiguebull Morehelliphelliphelliphelliphelliphellipbull Owners actions includebull 10487081048708 Better accommodation standards and home communicationsbull 10487081048708 Commitments to (lifetime) education and trainingbull 10487081048708 Welfare packages

SHIP STAFF

Owners actions includebull Better accommodation standards

and home communicationsbull Commitments to (lifetime)

education and trainingbull Welfare packages

SHIP STAFF

bull In recent times the attitude of the Ratings are seen to be more positive than those of the Officers on board Indian flag ships

Maritime Administration

We appreciate and are grateful to our Govt forndash Granting short term dispensations to SMD on bulk

carriersndash Permitting NWKO(NCV) officers to sail on coastal vessels

including tankersndash Revising SMD thereby rationalizing manning on NCVOff

ndash Shore Fleetndash Reducing sea time requirements of cadets on cadet training

ships and introduction of graduate and NCV cadet schemes for ratings

ndash Tirelessly assisting us sail our vessels without any hesitation at even odd hours of the day

Maritime Administration

bull Areas of Concern -ndash Administration could not keep pace with the growth of

Indian Shipping and also could not adapt with the changing scenario of the requirement of customers of the industry

ndash Examination process ndash long and lengthy It is observed that around 2000 TNOCs have joined every year since introduction of IGNOU ndash DGS Scheme in 2004 However passing rate of second mate COC holders less than 25 per annum

Maritime Administrationbull Actions Requested -

ndash Full sea time for TNOCs for a period of Six months while serving on Off ndash Shore Research vessels

ndash Outsourcing Junior level competency examinations such as 2M FG Class IV etc

ndash Review process time for issuance of certificates after completion of examinations

ndash Expedite documentation for endorsements and revalidationsndash MMD Sight test may be conducted by a qualified ophthalmologist ndash Overcome shortage of Surveyors It is understood 50 of the

vacancies are lying vacant or are on ad hoc appointments

Concluding Remarks

bull With changing aspirations of the young population in a growing economy seafaring is not the most sought after career choice particularly for the urban youth

bull Indian shipping industryrsquos grand plans to acquire tonnage faces severe shortage problem

bull Short term solution ndash rationalization in taxation SMD allowing foreign officers etc

bull Long term solution ndash As listed in earlier slides

THANK YOU

• Reasons for Shortage
• Dangers of Inadequacy in Manpower
• Working Indian Seafarers
• Measures to address shortage of officers
• Steps taken by Indian Companies

Indian Maritime Industrybull Indiarsquos Exim trade for 2007-08 stood at $39130 billion an

increase of 255 for the yearbull Indiarsquos share in global merchandise trade in 2007-08 is 15 and

expected to be 5 by 2020bull Growth rate of Indian logistics industry is around 7- 8 per

annum Container trade growth expected to be 2-25 times of GDP growth

bull As per NMDP projections traffic at ports is expected to grow at a rate of 1358 till 2012

bull India has the largest merchant shipping fleet among the developing countries

bull Shipping tonnage under the Indian flag has notched a record of 90 mn GT as on Jan 08

Indian Maritime Industry Contdhellip

bull Present Tonnage

ndash 903 Million Gross Tonnage

ndash 1499 Million DWT

ndash About 116 of world fleet

bull Ageing Indian Fleet - Average age of fleet is 187 years

bull Needs over $20 billion in next 5 years for replacement

augmentation of fleet so as to maintain existing share of

Indian ships in overseas trade

400

500

600

700

800

900

1000

Period

Total

fleet

mn G

RT

Growth of Indian Fleet

Composition of Indian Fleet as on 01012008

LPG carrier4

Tanker52

Bulker32

Other11Acid Carrier

1

Other Includes ContainerMultipurposeRo-RoReeferOffshore and others

Age Profile of Indian Fleetas on 01-01-2008

142 143 127 124

464

00

100

200

300

400

500

Under 5yrs

5 - 9 yrs

10 - 14 yrs

15 - 19 yrs

Over 20yrs

Average Age of Indian Fleet is 187 yearsFleet size 850

GT vs Age

Indiarsquos Overall Skilled Manpower Situation

bull Tremendous requirement of skilled man power by the growing Indian industrial sector for sustaining the growth rate

bull Generated 113 million net new jobs annually between 2000 and 2005 - over 60 more than the 7 million new jobs created in China

bull However the industry is facing a shortage of Specialized manpower to meet its present and future requirements

bull Ironically still high level of unemployment

Indiarsquos Overall Skilled Manpower Situation(cont)

bull Present State of University Education ndash

ndash Second highest number of engineering graduates after China - 401791 engineers in 2003-04 and 464743 engineers in 2004-05

ndash Fast catching up with China with about 600000 engineering graduates last year

ndash The United States produces only 70000 engineering graduates every year All of Europe produces just 100000

Seafarers ndash Global Scenario

bull Worldwide shortage

ndash By 2015 shortage of marine officers projected to nearly treble to 27000 from the present 10000

ndash As predicted by BIMCO current shortage will aggravate unless urgent steps are taken

ndash Aging OECD Officers

Seafarers ndash Global Scenario(cont)

bull Difficulties in attracting the manpower

ndash Lesser number of young people opting for seafaring as a career

ndash Physically demanding onboard job profile

ndash Availability of well-remunerative shore-based jobs

ndash Glamour and Fun associated with traditional seafaring has waned

Seafarers ndash Global Scenario(cont)

bull Increase in casualties

ndash Navigational accidents are on rise

ndash Rise coincided with the start of the recent shipping boom

ndash Number of accidents per ship close to mid-1980s when safety record was regarded as poor

ndash 90 accidents can be traced to human error

ndash With the current labour crisis and fleet growth shippingrsquos safety record is in danger

(Source DNV as quoted in TradeWinds)

Seafarers ndash Indian Scenario

bull Indian shipping industry is facing an acute shortage of Officers in the nautical side ndash more critical in the ranks of Mate and Second Mate

bull Indian Ship Owners are unable to meet Matrix Requirements of Oil Majors with respect to experience of senior Nautical and Engineer officers thereby losing lucrative business opportunities

bull Indian seafarers are much sought after all over the world for their skill knowledge integrity and reliability

bull Drift of Indian seafarers from Indian flag ships to foreign flag under the lure of lsquotax-freersquo pay packet arising out of differential tax treatment

bull Tonnage acquisition programme of the Indian shipping companies in jeopardy due to shortage of quality manpower

Indian Tonnage Acquisition ndash Seafaring Officers Shortage

bull Most of the Indian companies have launched ambitious tonnage expansion programme

bull Companies are also diversifying into new areas like container offshore LPGLNG etc

bull With such ambitious expansion program in Indiarsquos tonnage manpower (officers) shortage will worsen

Reasons for Shortage

bull Wagescost to Indian companies is similar compared with foreign flag ndash Indian companies lose skilled manpower due to differential ldquoPersonal Income Taxrdquo

bull Recruitment of foreign nationals on Indian ships permitted selectively by Administration However feasibility almost NIL due to various clearances

bull Indian Nationals holding Foreign Certificates from Australia Singapore Canada Hongkong NewZealand Sri Lanka NOT RECOGNIZED by Indian Government

bull Lengthy Fatigue prodded Exam process forces them to go to other countries or even make a career change

Dangers of Inadequacy in Manpower

bull Increased onboard accidentsincidents

bull Higher detentions by PSC authorities

bull Oil major approval failures on account of non-compliance of experienceage matrix

bull Reflection on reputation of companyflag administration

Working Indian Seafarers bull India is the 6th largest manpower supplying country in the world

bull The estimated seafaring population is as under

bull India is constantly widening the base to sustain its position as one of the largest manpower supplying country

Category Indian flag vessels

Foreign flag vessels

Total

Officers 8900 18000 26900

Ratings 21000 34000 55000

Total 29900 52000 81900

Seafarers ndash Indian Scenariobull Safe Manning Requirement

Nautical Side Engg Side

Master 1 Chief Engr 1

Mate 1 Second Engr 1

2nd Mate 2 3rd 4th Engr 2

Rating Nav Watch 3 Eng Watch Rating 3

Deck Crew 3

Cook 1

bull Govt support sought forndash Faster and easier clearance procedure for recruitment of foreign officersndash Officers holding COC issued by Singapore Australia etc be permitted to sail on Indian shipsndash Reduction of sailing time for cadetsndash Reduction in Safe Manning Requirement in line with other Flags Presently short term dispensation for

reduction in MSMD permitted

Basic Changes that need to be introduced

bull Promote shipping as a long term career

bull Tap the length and breadth of the Country

bull Create more awareness about seafaring

bull Resolving Shippingrsquos Image Crisis

bull Rationalization of seafarersrsquo taxation

bull SMD in line with the international norms

bull Sympathetic view of industry demands

Measures to address shortage of officers

Allow Indian ship owners to recruit Indian Nationals holding Foreign CertificatesCompulsory Service for Indian officers for 3 years on Indian ships who have received on-board training on our shipsUnder Tonnage Tax Regime trainees trained on Indian Flag Vessel obliged to serve tonnage tax company for 3 years Sea Time after certification Administration under Gazette Notification obliged to devise mechanism to ensure compliance by trainees No procedure yet in placeRationalisation of manning scales in line with international normsIncrease on-board training slots on foreign flag ships employing Indian officers Stem the drift of officers from Indian ships to foreign ships by removing Tax discrimination

Steps taken by Indian Companies

bull Wages at par with foreign companies ndash Grossing up salaries to take care of the tax burdenndash Net result ndash Higher CTC for Indian companies

bull Indian Shipping Companies have increased ship board training berths A leading Indian shipping company has converted five vessels as cadet training vessels

bull Social security benefits at par with foreign cosbull Extra resource allocation towards trainingbull Publicity campaignsbull Incorporating latest HRM techniques for better

understanding of the needs and problems

SHIPPINGrsquoS IMAGE

bull What is it bull Why is it important bull How is it created bull Who is responsible bull What can we do about it bull

A FEW PERSONAL OBSERVATIONS

bull ldquoImagerdquo like beauty is in the eye of the beholder thus there exist a spectrum of images of shipping

bull The image of the industry shapes the business and legislative environment and our ability to attract resources

SHIPPINGrsquoS IMAGE

bull The image of the industry is created by the performance of the industry players (environmental social responsibility customer satisfactionhellip)

bull The image of the industry may also be influenced (or reinforced) by the approach actions and comments of the media (specialised and general) politicians regulators and helliphelliphelliphelliphellip

SHIP STAFF

Frequentlybull Treated as second class citizensbull Criminalised after accidentsbull Pressured by terminals charterers and othersbull Subjected to unnecessary number of ship inspectionsbull Provided with inadequate manuals equipment and cargo informationbull Flooded by a tsunami of paperworkbull Suffer from regulations developed without recognition of the

ramificationsbull Suffer excessive fatiguebull Morehelliphelliphelliphelliphelliphellipbull Owners actions includebull 10487081048708 Better accommodation standards and home communicationsbull 10487081048708 Commitments to (lifetime) education and trainingbull 10487081048708 Welfare packages

SHIP STAFF

Owners actions includebull Better accommodation standards

and home communicationsbull Commitments to (lifetime)

education and trainingbull Welfare packages

SHIP STAFF

bull In recent times the attitude of the Ratings are seen to be more positive than those of the Officers on board Indian flag ships

Maritime Administration

We appreciate and are grateful to our Govt forndash Granting short term dispensations to SMD on bulk

carriersndash Permitting NWKO(NCV) officers to sail on coastal vessels

including tankersndash Revising SMD thereby rationalizing manning on NCVOff

ndash Shore Fleetndash Reducing sea time requirements of cadets on cadet training

ships and introduction of graduate and NCV cadet schemes for ratings

ndash Tirelessly assisting us sail our vessels without any hesitation at even odd hours of the day

Maritime Administration

bull Areas of Concern -ndash Administration could not keep pace with the growth of

Indian Shipping and also could not adapt with the changing scenario of the requirement of customers of the industry

ndash Examination process ndash long and lengthy It is observed that around 2000 TNOCs have joined every year since introduction of IGNOU ndash DGS Scheme in 2004 However passing rate of second mate COC holders less than 25 per annum

Maritime Administrationbull Actions Requested -

ndash Full sea time for TNOCs for a period of Six months while serving on Off ndash Shore Research vessels

ndash Outsourcing Junior level competency examinations such as 2M FG Class IV etc

ndash Review process time for issuance of certificates after completion of examinations

ndash Expedite documentation for endorsements and revalidationsndash MMD Sight test may be conducted by a qualified ophthalmologist ndash Overcome shortage of Surveyors It is understood 50 of the

vacancies are lying vacant or are on ad hoc appointments

Concluding Remarks

bull With changing aspirations of the young population in a growing economy seafaring is not the most sought after career choice particularly for the urban youth

bull Indian shipping industryrsquos grand plans to acquire tonnage faces severe shortage problem

bull Short term solution ndash rationalization in taxation SMD allowing foreign officers etc

bull Long term solution ndash As listed in earlier slides

THANK YOU

• Reasons for Shortage
• Dangers of Inadequacy in Manpower
• Working Indian Seafarers
• Measures to address shortage of officers
• Steps taken by Indian Companies

Indian Maritime Industry Contdhellip

bull Present Tonnage

ndash 903 Million Gross Tonnage

ndash 1499 Million DWT

ndash About 116 of world fleet

bull Ageing Indian Fleet - Average age of fleet is 187 years

bull Needs over $20 billion in next 5 years for replacement

augmentation of fleet so as to maintain existing share of

Indian ships in overseas trade

400

500

600

700

800

900

1000

Period

Total

fleet

mn G

RT

Growth of Indian Fleet

Composition of Indian Fleet as on 01012008

LPG carrier4

Tanker52

Bulker32

Other11Acid Carrier

1

Other Includes ContainerMultipurposeRo-RoReeferOffshore and others

Age Profile of Indian Fleetas on 01-01-2008

142 143 127 124

464

00

100

200

300

400

500

Under 5yrs

5 - 9 yrs

10 - 14 yrs

15 - 19 yrs

Over 20yrs

Average Age of Indian Fleet is 187 yearsFleet size 850

GT vs Age

Indiarsquos Overall Skilled Manpower Situation

bull Tremendous requirement of skilled man power by the growing Indian industrial sector for sustaining the growth rate

bull Generated 113 million net new jobs annually between 2000 and 2005 - over 60 more than the 7 million new jobs created in China

bull However the industry is facing a shortage of Specialized manpower to meet its present and future requirements

bull Ironically still high level of unemployment

Indiarsquos Overall Skilled Manpower Situation(cont)

bull Present State of University Education ndash

ndash Second highest number of engineering graduates after China - 401791 engineers in 2003-04 and 464743 engineers in 2004-05

ndash Fast catching up with China with about 600000 engineering graduates last year

ndash The United States produces only 70000 engineering graduates every year All of Europe produces just 100000

Seafarers ndash Global Scenario

bull Worldwide shortage

ndash By 2015 shortage of marine officers projected to nearly treble to 27000 from the present 10000

ndash As predicted by BIMCO current shortage will aggravate unless urgent steps are taken

ndash Aging OECD Officers

Seafarers ndash Global Scenario(cont)

bull Difficulties in attracting the manpower

ndash Lesser number of young people opting for seafaring as a career

ndash Physically demanding onboard job profile

ndash Availability of well-remunerative shore-based jobs

ndash Glamour and Fun associated with traditional seafaring has waned

Seafarers ndash Global Scenario(cont)

bull Increase in casualties

ndash Navigational accidents are on rise

ndash Rise coincided with the start of the recent shipping boom

ndash Number of accidents per ship close to mid-1980s when safety record was regarded as poor

ndash 90 accidents can be traced to human error

ndash With the current labour crisis and fleet growth shippingrsquos safety record is in danger

(Source DNV as quoted in TradeWinds)

Seafarers ndash Indian Scenario

bull Indian shipping industry is facing an acute shortage of Officers in the nautical side ndash more critical in the ranks of Mate and Second Mate

bull Indian Ship Owners are unable to meet Matrix Requirements of Oil Majors with respect to experience of senior Nautical and Engineer officers thereby losing lucrative business opportunities

bull Indian seafarers are much sought after all over the world for their skill knowledge integrity and reliability

bull Drift of Indian seafarers from Indian flag ships to foreign flag under the lure of lsquotax-freersquo pay packet arising out of differential tax treatment

bull Tonnage acquisition programme of the Indian shipping companies in jeopardy due to shortage of quality manpower

Indian Tonnage Acquisition ndash Seafaring Officers Shortage

bull Most of the Indian companies have launched ambitious tonnage expansion programme

bull Companies are also diversifying into new areas like container offshore LPGLNG etc

bull With such ambitious expansion program in Indiarsquos tonnage manpower (officers) shortage will worsen

Reasons for Shortage

bull Wagescost to Indian companies is similar compared with foreign flag ndash Indian companies lose skilled manpower due to differential ldquoPersonal Income Taxrdquo

bull Recruitment of foreign nationals on Indian ships permitted selectively by Administration However feasibility almost NIL due to various clearances

bull Indian Nationals holding Foreign Certificates from Australia Singapore Canada Hongkong NewZealand Sri Lanka NOT RECOGNIZED by Indian Government

bull Lengthy Fatigue prodded Exam process forces them to go to other countries or even make a career change

Dangers of Inadequacy in Manpower

bull Increased onboard accidentsincidents

bull Higher detentions by PSC authorities

bull Oil major approval failures on account of non-compliance of experienceage matrix

bull Reflection on reputation of companyflag administration

Working Indian Seafarers bull India is the 6th largest manpower supplying country in the world

bull The estimated seafaring population is as under

bull India is constantly widening the base to sustain its position as one of the largest manpower supplying country

Category Indian flag vessels

Foreign flag vessels

Total

Officers 8900 18000 26900

Ratings 21000 34000 55000

Total 29900 52000 81900

Seafarers ndash Indian Scenariobull Safe Manning Requirement

Nautical Side Engg Side

Master 1 Chief Engr 1

Mate 1 Second Engr 1

2nd Mate 2 3rd 4th Engr 2

Rating Nav Watch 3 Eng Watch Rating 3

Deck Crew 3

Cook 1

bull Govt support sought forndash Faster and easier clearance procedure for recruitment of foreign officersndash Officers holding COC issued by Singapore Australia etc be permitted to sail on Indian shipsndash Reduction of sailing time for cadetsndash Reduction in Safe Manning Requirement in line with other Flags Presently short term dispensation for

reduction in MSMD permitted

Basic Changes that need to be introduced

bull Promote shipping as a long term career

bull Tap the length and breadth of the Country

bull Create more awareness about seafaring

bull Resolving Shippingrsquos Image Crisis

bull Rationalization of seafarersrsquo taxation

bull SMD in line with the international norms

bull Sympathetic view of industry demands

Measures to address shortage of officers

Allow Indian ship owners to recruit Indian Nationals holding Foreign CertificatesCompulsory Service for Indian officers for 3 years on Indian ships who have received on-board training on our shipsUnder Tonnage Tax Regime trainees trained on Indian Flag Vessel obliged to serve tonnage tax company for 3 years Sea Time after certification Administration under Gazette Notification obliged to devise mechanism to ensure compliance by trainees No procedure yet in placeRationalisation of manning scales in line with international normsIncrease on-board training slots on foreign flag ships employing Indian officers Stem the drift of officers from Indian ships to foreign ships by removing Tax discrimination

Steps taken by Indian Companies

bull Wages at par with foreign companies ndash Grossing up salaries to take care of the tax burdenndash Net result ndash Higher CTC for Indian companies

bull Indian Shipping Companies have increased ship board training berths A leading Indian shipping company has converted five vessels as cadet training vessels

bull Social security benefits at par with foreign cosbull Extra resource allocation towards trainingbull Publicity campaignsbull Incorporating latest HRM techniques for better

understanding of the needs and problems

SHIPPINGrsquoS IMAGE

bull What is it bull Why is it important bull How is it created bull Who is responsible bull What can we do about it bull

A FEW PERSONAL OBSERVATIONS

bull ldquoImagerdquo like beauty is in the eye of the beholder thus there exist a spectrum of images of shipping

bull The image of the industry shapes the business and legislative environment and our ability to attract resources

SHIPPINGrsquoS IMAGE

bull The image of the industry is created by the performance of the industry players (environmental social responsibility customer satisfactionhellip)

bull The image of the industry may also be influenced (or reinforced) by the approach actions and comments of the media (specialised and general) politicians regulators and helliphelliphelliphelliphellip

SHIP STAFF

Frequentlybull Treated as second class citizensbull Criminalised after accidentsbull Pressured by terminals charterers and othersbull Subjected to unnecessary number of ship inspectionsbull Provided with inadequate manuals equipment and cargo informationbull Flooded by a tsunami of paperworkbull Suffer from regulations developed without recognition of the

ramificationsbull Suffer excessive fatiguebull Morehelliphelliphelliphelliphelliphellipbull Owners actions includebull 10487081048708 Better accommodation standards and home communicationsbull 10487081048708 Commitments to (lifetime) education and trainingbull 10487081048708 Welfare packages

SHIP STAFF

Owners actions includebull Better accommodation standards

and home communicationsbull Commitments to (lifetime)

education and trainingbull Welfare packages

SHIP STAFF

bull In recent times the attitude of the Ratings are seen to be more positive than those of the Officers on board Indian flag ships

Maritime Administration

We appreciate and are grateful to our Govt forndash Granting short term dispensations to SMD on bulk

carriersndash Permitting NWKO(NCV) officers to sail on coastal vessels

including tankersndash Revising SMD thereby rationalizing manning on NCVOff

ndash Shore Fleetndash Reducing sea time requirements of cadets on cadet training

ships and introduction of graduate and NCV cadet schemes for ratings

ndash Tirelessly assisting us sail our vessels without any hesitation at even odd hours of the day

Maritime Administration

bull Areas of Concern -ndash Administration could not keep pace with the growth of

Indian Shipping and also could not adapt with the changing scenario of the requirement of customers of the industry

ndash Examination process ndash long and lengthy It is observed that around 2000 TNOCs have joined every year since introduction of IGNOU ndash DGS Scheme in 2004 However passing rate of second mate COC holders less than 25 per annum

Maritime Administrationbull Actions Requested -

ndash Full sea time for TNOCs for a period of Six months while serving on Off ndash Shore Research vessels

ndash Outsourcing Junior level competency examinations such as 2M FG Class IV etc

ndash Review process time for issuance of certificates after completion of examinations

ndash Expedite documentation for endorsements and revalidationsndash MMD Sight test may be conducted by a qualified ophthalmologist ndash Overcome shortage of Surveyors It is understood 50 of the

vacancies are lying vacant or are on ad hoc appointments

Concluding Remarks

bull With changing aspirations of the young population in a growing economy seafaring is not the most sought after career choice particularly for the urban youth

bull Indian shipping industryrsquos grand plans to acquire tonnage faces severe shortage problem

bull Short term solution ndash rationalization in taxation SMD allowing foreign officers etc

bull Long term solution ndash As listed in earlier slides

THANK YOU

• Reasons for Shortage
• Dangers of Inadequacy in Manpower
• Working Indian Seafarers
• Measures to address shortage of officers
• Steps taken by Indian Companies

400

500

600

700

800

900

1000

Period

Total

fleet

mn G

RT

Growth of Indian Fleet

Composition of Indian Fleet as on 01012008

LPG carrier4

Tanker52

Bulker32

Other11Acid Carrier

1

Other Includes ContainerMultipurposeRo-RoReeferOffshore and others

Age Profile of Indian Fleetas on 01-01-2008

142 143 127 124

464

00

100

200

300

400

500

Under 5yrs

5 - 9 yrs

10 - 14 yrs

15 - 19 yrs

Over 20yrs

Average Age of Indian Fleet is 187 yearsFleet size 850

GT vs Age

Indiarsquos Overall Skilled Manpower Situation

bull Tremendous requirement of skilled man power by the growing Indian industrial sector for sustaining the growth rate

bull Generated 113 million net new jobs annually between 2000 and 2005 - over 60 more than the 7 million new jobs created in China

bull However the industry is facing a shortage of Specialized manpower to meet its present and future requirements

bull Ironically still high level of unemployment

Indiarsquos Overall Skilled Manpower Situation(cont)

bull Present State of University Education ndash

ndash Second highest number of engineering graduates after China - 401791 engineers in 2003-04 and 464743 engineers in 2004-05

ndash Fast catching up with China with about 600000 engineering graduates last year

ndash The United States produces only 70000 engineering graduates every year All of Europe produces just 100000

Seafarers ndash Global Scenario

bull Worldwide shortage

ndash By 2015 shortage of marine officers projected to nearly treble to 27000 from the present 10000

ndash As predicted by BIMCO current shortage will aggravate unless urgent steps are taken

ndash Aging OECD Officers

Seafarers ndash Global Scenario(cont)

bull Difficulties in attracting the manpower

ndash Lesser number of young people opting for seafaring as a career

ndash Physically demanding onboard job profile

ndash Availability of well-remunerative shore-based jobs

ndash Glamour and Fun associated with traditional seafaring has waned

Seafarers ndash Global Scenario(cont)

bull Increase in casualties

ndash Navigational accidents are on rise

ndash Rise coincided with the start of the recent shipping boom

ndash Number of accidents per ship close to mid-1980s when safety record was regarded as poor

ndash 90 accidents can be traced to human error

ndash With the current labour crisis and fleet growth shippingrsquos safety record is in danger

(Source DNV as quoted in TradeWinds)

Seafarers ndash Indian Scenario

bull Indian shipping industry is facing an acute shortage of Officers in the nautical side ndash more critical in the ranks of Mate and Second Mate

bull Indian Ship Owners are unable to meet Matrix Requirements of Oil Majors with respect to experience of senior Nautical and Engineer officers thereby losing lucrative business opportunities

bull Indian seafarers are much sought after all over the world for their skill knowledge integrity and reliability

bull Drift of Indian seafarers from Indian flag ships to foreign flag under the lure of lsquotax-freersquo pay packet arising out of differential tax treatment

bull Tonnage acquisition programme of the Indian shipping companies in jeopardy due to shortage of quality manpower

Indian Tonnage Acquisition ndash Seafaring Officers Shortage

bull Most of the Indian companies have launched ambitious tonnage expansion programme

bull Companies are also diversifying into new areas like container offshore LPGLNG etc

bull With such ambitious expansion program in Indiarsquos tonnage manpower (officers) shortage will worsen

Reasons for Shortage

bull Wagescost to Indian companies is similar compared with foreign flag ndash Indian companies lose skilled manpower due to differential ldquoPersonal Income Taxrdquo

bull Recruitment of foreign nationals on Indian ships permitted selectively by Administration However feasibility almost NIL due to various clearances

bull Indian Nationals holding Foreign Certificates from Australia Singapore Canada Hongkong NewZealand Sri Lanka NOT RECOGNIZED by Indian Government

bull Lengthy Fatigue prodded Exam process forces them to go to other countries or even make a career change

Dangers of Inadequacy in Manpower

bull Increased onboard accidentsincidents

bull Higher detentions by PSC authorities

bull Oil major approval failures on account of non-compliance of experienceage matrix

bull Reflection on reputation of companyflag administration

Working Indian Seafarers bull India is the 6th largest manpower supplying country in the world

bull The estimated seafaring population is as under

bull India is constantly widening the base to sustain its position as one of the largest manpower supplying country

Category Indian flag vessels

Foreign flag vessels

Total

Officers 8900 18000 26900

Ratings 21000 34000 55000

Total 29900 52000 81900

Seafarers ndash Indian Scenariobull Safe Manning Requirement

Nautical Side Engg Side

Master 1 Chief Engr 1

Mate 1 Second Engr 1

2nd Mate 2 3rd 4th Engr 2

Rating Nav Watch 3 Eng Watch Rating 3

Deck Crew 3

Cook 1

bull Govt support sought forndash Faster and easier clearance procedure for recruitment of foreign officersndash Officers holding COC issued by Singapore Australia etc be permitted to sail on Indian shipsndash Reduction of sailing time for cadetsndash Reduction in Safe Manning Requirement in line with other Flags Presently short term dispensation for

reduction in MSMD permitted

Basic Changes that need to be introduced

bull Promote shipping as a long term career

bull Tap the length and breadth of the Country

bull Create more awareness about seafaring

bull Resolving Shippingrsquos Image Crisis

bull Rationalization of seafarersrsquo taxation

bull SMD in line with the international norms

bull Sympathetic view of industry demands

Measures to address shortage of officers

Allow Indian ship owners to recruit Indian Nationals holding Foreign CertificatesCompulsory Service for Indian officers for 3 years on Indian ships who have received on-board training on our shipsUnder Tonnage Tax Regime trainees trained on Indian Flag Vessel obliged to serve tonnage tax company for 3 years Sea Time after certification Administration under Gazette Notification obliged to devise mechanism to ensure compliance by trainees No procedure yet in placeRationalisation of manning scales in line with international normsIncrease on-board training slots on foreign flag ships employing Indian officers Stem the drift of officers from Indian ships to foreign ships by removing Tax discrimination

Steps taken by Indian Companies

bull Wages at par with foreign companies ndash Grossing up salaries to take care of the tax burdenndash Net result ndash Higher CTC for Indian companies

bull Indian Shipping Companies have increased ship board training berths A leading Indian shipping company has converted five vessels as cadet training vessels

bull Social security benefits at par with foreign cosbull Extra resource allocation towards trainingbull Publicity campaignsbull Incorporating latest HRM techniques for better

understanding of the needs and problems

SHIPPINGrsquoS IMAGE

bull What is it bull Why is it important bull How is it created bull Who is responsible bull What can we do about it bull

A FEW PERSONAL OBSERVATIONS

bull ldquoImagerdquo like beauty is in the eye of the beholder thus there exist a spectrum of images of shipping

bull The image of the industry shapes the business and legislative environment and our ability to attract resources

SHIPPINGrsquoS IMAGE

bull The image of the industry is created by the performance of the industry players (environmental social responsibility customer satisfactionhellip)

bull The image of the industry may also be influenced (or reinforced) by the approach actions and comments of the media (specialised and general) politicians regulators and helliphelliphelliphelliphellip

SHIP STAFF

Frequentlybull Treated as second class citizensbull Criminalised after accidentsbull Pressured by terminals charterers and othersbull Subjected to unnecessary number of ship inspectionsbull Provided with inadequate manuals equipment and cargo informationbull Flooded by a tsunami of paperworkbull Suffer from regulations developed without recognition of the

ramificationsbull Suffer excessive fatiguebull Morehelliphelliphelliphelliphelliphellipbull Owners actions includebull 10487081048708 Better accommodation standards and home communicationsbull 10487081048708 Commitments to (lifetime) education and trainingbull 10487081048708 Welfare packages

SHIP STAFF

Owners actions includebull Better accommodation standards

and home communicationsbull Commitments to (lifetime)

education and trainingbull Welfare packages

SHIP STAFF

bull In recent times the attitude of the Ratings are seen to be more positive than those of the Officers on board Indian flag ships

Maritime Administration

We appreciate and are grateful to our Govt forndash Granting short term dispensations to SMD on bulk

carriersndash Permitting NWKO(NCV) officers to sail on coastal vessels

including tankersndash Revising SMD thereby rationalizing manning on NCVOff

ndash Shore Fleetndash Reducing sea time requirements of cadets on cadet training

ships and introduction of graduate and NCV cadet schemes for ratings

ndash Tirelessly assisting us sail our vessels without any hesitation at even odd hours of the day

Maritime Administration

bull Areas of Concern -ndash Administration could not keep pace with the growth of

Indian Shipping and also could not adapt with the changing scenario of the requirement of customers of the industry

ndash Examination process ndash long and lengthy It is observed that around 2000 TNOCs have joined every year since introduction of IGNOU ndash DGS Scheme in 2004 However passing rate of second mate COC holders less than 25 per annum

Maritime Administrationbull Actions Requested -

ndash Full sea time for TNOCs for a period of Six months while serving on Off ndash Shore Research vessels

ndash Outsourcing Junior level competency examinations such as 2M FG Class IV etc

ndash Review process time for issuance of certificates after completion of examinations

ndash Expedite documentation for endorsements and revalidationsndash MMD Sight test may be conducted by a qualified ophthalmologist ndash Overcome shortage of Surveyors It is understood 50 of the

vacancies are lying vacant or are on ad hoc appointments

Concluding Remarks

bull With changing aspirations of the young population in a growing economy seafaring is not the most sought after career choice particularly for the urban youth

bull Indian shipping industryrsquos grand plans to acquire tonnage faces severe shortage problem

bull Short term solution ndash rationalization in taxation SMD allowing foreign officers etc

bull Long term solution ndash As listed in earlier slides

THANK YOU

• Reasons for Shortage
• Dangers of Inadequacy in Manpower
• Working Indian Seafarers
• Measures to address shortage of officers
• Steps taken by Indian Companies

Composition of Indian Fleet as on 01012008

LPG carrier4

Tanker52

Bulker32

Other11Acid Carrier

1

Other Includes ContainerMultipurposeRo-RoReeferOffshore and others

Age Profile of Indian Fleetas on 01-01-2008

142 143 127 124

464

00

100

200

300

400

500

Under 5yrs

5 - 9 yrs

10 - 14 yrs

15 - 19 yrs

Over 20yrs

Average Age of Indian Fleet is 187 yearsFleet size 850

GT vs Age

Indiarsquos Overall Skilled Manpower Situation

bull Tremendous requirement of skilled man power by the growing Indian industrial sector for sustaining the growth rate

bull Generated 113 million net new jobs annually between 2000 and 2005 - over 60 more than the 7 million new jobs created in China

bull However the industry is facing a shortage of Specialized manpower to meet its present and future requirements

bull Ironically still high level of unemployment

Indiarsquos Overall Skilled Manpower Situation(cont)

bull Present State of University Education ndash

ndash Second highest number of engineering graduates after China - 401791 engineers in 2003-04 and 464743 engineers in 2004-05

ndash Fast catching up with China with about 600000 engineering graduates last year

ndash The United States produces only 70000 engineering graduates every year All of Europe produces just 100000

Seafarers ndash Global Scenario

bull Worldwide shortage

ndash By 2015 shortage of marine officers projected to nearly treble to 27000 from the present 10000

ndash As predicted by BIMCO current shortage will aggravate unless urgent steps are taken

ndash Aging OECD Officers

Seafarers ndash Global Scenario(cont)

bull Difficulties in attracting the manpower

ndash Lesser number of young people opting for seafaring as a career

ndash Physically demanding onboard job profile

ndash Availability of well-remunerative shore-based jobs

ndash Glamour and Fun associated with traditional seafaring has waned

Seafarers ndash Global Scenario(cont)

bull Increase in casualties

ndash Navigational accidents are on rise

ndash Rise coincided with the start of the recent shipping boom

ndash Number of accidents per ship close to mid-1980s when safety record was regarded as poor

ndash 90 accidents can be traced to human error

ndash With the current labour crisis and fleet growth shippingrsquos safety record is in danger

(Source DNV as quoted in TradeWinds)

Seafarers ndash Indian Scenario

bull Indian shipping industry is facing an acute shortage of Officers in the nautical side ndash more critical in the ranks of Mate and Second Mate

bull Indian Ship Owners are unable to meet Matrix Requirements of Oil Majors with respect to experience of senior Nautical and Engineer officers thereby losing lucrative business opportunities

bull Indian seafarers are much sought after all over the world for their skill knowledge integrity and reliability

bull Drift of Indian seafarers from Indian flag ships to foreign flag under the lure of lsquotax-freersquo pay packet arising out of differential tax treatment

bull Tonnage acquisition programme of the Indian shipping companies in jeopardy due to shortage of quality manpower

Indian Tonnage Acquisition ndash Seafaring Officers Shortage

bull Most of the Indian companies have launched ambitious tonnage expansion programme

bull Companies are also diversifying into new areas like container offshore LPGLNG etc

bull With such ambitious expansion program in Indiarsquos tonnage manpower (officers) shortage will worsen

Reasons for Shortage

bull Wagescost to Indian companies is similar compared with foreign flag ndash Indian companies lose skilled manpower due to differential ldquoPersonal Income Taxrdquo

bull Recruitment of foreign nationals on Indian ships permitted selectively by Administration However feasibility almost NIL due to various clearances

bull Indian Nationals holding Foreign Certificates from Australia Singapore Canada Hongkong NewZealand Sri Lanka NOT RECOGNIZED by Indian Government

bull Lengthy Fatigue prodded Exam process forces them to go to other countries or even make a career change

Dangers of Inadequacy in Manpower

bull Increased onboard accidentsincidents

bull Higher detentions by PSC authorities

bull Oil major approval failures on account of non-compliance of experienceage matrix

bull Reflection on reputation of companyflag administration

Working Indian Seafarers bull India is the 6th largest manpower supplying country in the world

bull The estimated seafaring population is as under

bull India is constantly widening the base to sustain its position as one of the largest manpower supplying country

Category Indian flag vessels

Foreign flag vessels

Total

Officers 8900 18000 26900

Ratings 21000 34000 55000

Total 29900 52000 81900

Seafarers ndash Indian Scenariobull Safe Manning Requirement

Nautical Side Engg Side

Master 1 Chief Engr 1

Mate 1 Second Engr 1

2nd Mate 2 3rd 4th Engr 2

Rating Nav Watch 3 Eng Watch Rating 3

Deck Crew 3

Cook 1

bull Govt support sought forndash Faster and easier clearance procedure for recruitment of foreign officersndash Officers holding COC issued by Singapore Australia etc be permitted to sail on Indian shipsndash Reduction of sailing time for cadetsndash Reduction in Safe Manning Requirement in line with other Flags Presently short term dispensation for

reduction in MSMD permitted

Basic Changes that need to be introduced

bull Promote shipping as a long term career

bull Tap the length and breadth of the Country

bull Create more awareness about seafaring

bull Resolving Shippingrsquos Image Crisis

bull Rationalization of seafarersrsquo taxation

bull SMD in line with the international norms

bull Sympathetic view of industry demands

Measures to address shortage of officers

Allow Indian ship owners to recruit Indian Nationals holding Foreign CertificatesCompulsory Service for Indian officers for 3 years on Indian ships who have received on-board training on our shipsUnder Tonnage Tax Regime trainees trained on Indian Flag Vessel obliged to serve tonnage tax company for 3 years Sea Time after certification Administration under Gazette Notification obliged to devise mechanism to ensure compliance by trainees No procedure yet in placeRationalisation of manning scales in line with international normsIncrease on-board training slots on foreign flag ships employing Indian officers Stem the drift of officers from Indian ships to foreign ships by removing Tax discrimination

Steps taken by Indian Companies

bull Wages at par with foreign companies ndash Grossing up salaries to take care of the tax burdenndash Net result ndash Higher CTC for Indian companies

bull Indian Shipping Companies have increased ship board training berths A leading Indian shipping company has converted five vessels as cadet training vessels

bull Social security benefits at par with foreign cosbull Extra resource allocation towards trainingbull Publicity campaignsbull Incorporating latest HRM techniques for better

understanding of the needs and problems

SHIPPINGrsquoS IMAGE

bull What is it bull Why is it important bull How is it created bull Who is responsible bull What can we do about it bull

A FEW PERSONAL OBSERVATIONS

bull ldquoImagerdquo like beauty is in the eye of the beholder thus there exist a spectrum of images of shipping

bull The image of the industry shapes the business and legislative environment and our ability to attract resources

SHIPPINGrsquoS IMAGE

bull The image of the industry is created by the performance of the industry players (environmental social responsibility customer satisfactionhellip)

bull The image of the industry may also be influenced (or reinforced) by the approach actions and comments of the media (specialised and general) politicians regulators and helliphelliphelliphelliphellip

SHIP STAFF

Frequentlybull Treated as second class citizensbull Criminalised after accidentsbull Pressured by terminals charterers and othersbull Subjected to unnecessary number of ship inspectionsbull Provided with inadequate manuals equipment and cargo informationbull Flooded by a tsunami of paperworkbull Suffer from regulations developed without recognition of the

ramificationsbull Suffer excessive fatiguebull Morehelliphelliphelliphelliphelliphellipbull Owners actions includebull 10487081048708 Better accommodation standards and home communicationsbull 10487081048708 Commitments to (lifetime) education and trainingbull 10487081048708 Welfare packages

SHIP STAFF

Owners actions includebull Better accommodation standards

and home communicationsbull Commitments to (lifetime)

education and trainingbull Welfare packages

SHIP STAFF

bull In recent times the attitude of the Ratings are seen to be more positive than those of the Officers on board Indian flag ships

Maritime Administration

We appreciate and are grateful to our Govt forndash Granting short term dispensations to SMD on bulk

carriersndash Permitting NWKO(NCV) officers to sail on coastal vessels

including tankersndash Revising SMD thereby rationalizing manning on NCVOff

ndash Shore Fleetndash Reducing sea time requirements of cadets on cadet training

ships and introduction of graduate and NCV cadet schemes for ratings

ndash Tirelessly assisting us sail our vessels without any hesitation at even odd hours of the day

Maritime Administration

bull Areas of Concern -ndash Administration could not keep pace with the growth of

Indian Shipping and also could not adapt with the changing scenario of the requirement of customers of the industry

ndash Examination process ndash long and lengthy It is observed that around 2000 TNOCs have joined every year since introduction of IGNOU ndash DGS Scheme in 2004 However passing rate of second mate COC holders less than 25 per annum

Maritime Administrationbull Actions Requested -

ndash Full sea time for TNOCs for a period of Six months while serving on Off ndash Shore Research vessels

ndash Outsourcing Junior level competency examinations such as 2M FG Class IV etc

ndash Review process time for issuance of certificates after completion of examinations

ndash Expedite documentation for endorsements and revalidationsndash MMD Sight test may be conducted by a qualified ophthalmologist ndash Overcome shortage of Surveyors It is understood 50 of the

vacancies are lying vacant or are on ad hoc appointments

Concluding Remarks

bull With changing aspirations of the young population in a growing economy seafaring is not the most sought after career choice particularly for the urban youth

bull Indian shipping industryrsquos grand plans to acquire tonnage faces severe shortage problem

bull Short term solution ndash rationalization in taxation SMD allowing foreign officers etc

bull Long term solution ndash As listed in earlier slides

THANK YOU

• Reasons for Shortage
• Dangers of Inadequacy in Manpower
• Working Indian Seafarers
• Measures to address shortage of officers
• Steps taken by Indian Companies

Age Profile of Indian Fleetas on 01-01-2008

142 143 127 124

464

00

100

200

300

400

500

Under 5yrs

5 - 9 yrs

10 - 14 yrs

15 - 19 yrs

Over 20yrs

Average Age of Indian Fleet is 187 yearsFleet size 850

GT vs Age

Indiarsquos Overall Skilled Manpower Situation

bull Tremendous requirement of skilled man power by the growing Indian industrial sector for sustaining the growth rate

bull Generated 113 million net new jobs annually between 2000 and 2005 - over 60 more than the 7 million new jobs created in China

bull However the industry is facing a shortage of Specialized manpower to meet its present and future requirements

bull Ironically still high level of unemployment

Indiarsquos Overall Skilled Manpower Situation(cont)

bull Present State of University Education ndash

ndash Second highest number of engineering graduates after China - 401791 engineers in 2003-04 and 464743 engineers in 2004-05

ndash Fast catching up with China with about 600000 engineering graduates last year

ndash The United States produces only 70000 engineering graduates every year All of Europe produces just 100000

Seafarers ndash Global Scenario

bull Worldwide shortage

ndash By 2015 shortage of marine officers projected to nearly treble to 27000 from the present 10000

ndash As predicted by BIMCO current shortage will aggravate unless urgent steps are taken

ndash Aging OECD Officers

Seafarers ndash Global Scenario(cont)

bull Difficulties in attracting the manpower

ndash Lesser number of young people opting for seafaring as a career

ndash Physically demanding onboard job profile

ndash Availability of well-remunerative shore-based jobs

ndash Glamour and Fun associated with traditional seafaring has waned

Seafarers ndash Global Scenario(cont)

bull Increase in casualties

ndash Navigational accidents are on rise

ndash Rise coincided with the start of the recent shipping boom

ndash Number of accidents per ship close to mid-1980s when safety record was regarded as poor

ndash 90 accidents can be traced to human error

ndash With the current labour crisis and fleet growth shippingrsquos safety record is in danger

(Source DNV as quoted in TradeWinds)

Seafarers ndash Indian Scenario

bull Indian shipping industry is facing an acute shortage of Officers in the nautical side ndash more critical in the ranks of Mate and Second Mate

bull Indian Ship Owners are unable to meet Matrix Requirements of Oil Majors with respect to experience of senior Nautical and Engineer officers thereby losing lucrative business opportunities

bull Indian seafarers are much sought after all over the world for their skill knowledge integrity and reliability

bull Drift of Indian seafarers from Indian flag ships to foreign flag under the lure of lsquotax-freersquo pay packet arising out of differential tax treatment

bull Tonnage acquisition programme of the Indian shipping companies in jeopardy due to shortage of quality manpower

Indian Tonnage Acquisition ndash Seafaring Officers Shortage

bull Most of the Indian companies have launched ambitious tonnage expansion programme

bull Companies are also diversifying into new areas like container offshore LPGLNG etc

bull With such ambitious expansion program in Indiarsquos tonnage manpower (officers) shortage will worsen

Reasons for Shortage

bull Wagescost to Indian companies is similar compared with foreign flag ndash Indian companies lose skilled manpower due to differential ldquoPersonal Income Taxrdquo

bull Recruitment of foreign nationals on Indian ships permitted selectively by Administration However feasibility almost NIL due to various clearances

bull Indian Nationals holding Foreign Certificates from Australia Singapore Canada Hongkong NewZealand Sri Lanka NOT RECOGNIZED by Indian Government

bull Lengthy Fatigue prodded Exam process forces them to go to other countries or even make a career change

Dangers of Inadequacy in Manpower

bull Increased onboard accidentsincidents

bull Higher detentions by PSC authorities

bull Oil major approval failures on account of non-compliance of experienceage matrix

bull Reflection on reputation of companyflag administration

Working Indian Seafarers bull India is the 6th largest manpower supplying country in the world

bull The estimated seafaring population is as under

bull India is constantly widening the base to sustain its position as one of the largest manpower supplying country

Category Indian flag vessels

Foreign flag vessels

Total

Officers 8900 18000 26900

Ratings 21000 34000 55000

Total 29900 52000 81900

Seafarers ndash Indian Scenariobull Safe Manning Requirement

Nautical Side Engg Side

Master 1 Chief Engr 1

Mate 1 Second Engr 1

2nd Mate 2 3rd 4th Engr 2

Rating Nav Watch 3 Eng Watch Rating 3

Deck Crew 3

Cook 1

bull Govt support sought forndash Faster and easier clearance procedure for recruitment of foreign officersndash Officers holding COC issued by Singapore Australia etc be permitted to sail on Indian shipsndash Reduction of sailing time for cadetsndash Reduction in Safe Manning Requirement in line with other Flags Presently short term dispensation for

reduction in MSMD permitted

Basic Changes that need to be introduced

bull Promote shipping as a long term career

bull Tap the length and breadth of the Country

bull Create more awareness about seafaring

bull Resolving Shippingrsquos Image Crisis

bull Rationalization of seafarersrsquo taxation

bull SMD in line with the international norms

bull Sympathetic view of industry demands

Measures to address shortage of officers

Allow Indian ship owners to recruit Indian Nationals holding Foreign CertificatesCompulsory Service for Indian officers for 3 years on Indian ships who have received on-board training on our shipsUnder Tonnage Tax Regime trainees trained on Indian Flag Vessel obliged to serve tonnage tax company for 3 years Sea Time after certification Administration under Gazette Notification obliged to devise mechanism to ensure compliance by trainees No procedure yet in placeRationalisation of manning scales in line with international normsIncrease on-board training slots on foreign flag ships employing Indian officers Stem the drift of officers from Indian ships to foreign ships by removing Tax discrimination

Steps taken by Indian Companies

bull Wages at par with foreign companies ndash Grossing up salaries to take care of the tax burdenndash Net result ndash Higher CTC for Indian companies

bull Indian Shipping Companies have increased ship board training berths A leading Indian shipping company has converted five vessels as cadet training vessels

bull Social security benefits at par with foreign cosbull Extra resource allocation towards trainingbull Publicity campaignsbull Incorporating latest HRM techniques for better

understanding of the needs and problems

SHIPPINGrsquoS IMAGE

bull What is it bull Why is it important bull How is it created bull Who is responsible bull What can we do about it bull

A FEW PERSONAL OBSERVATIONS

bull ldquoImagerdquo like beauty is in the eye of the beholder thus there exist a spectrum of images of shipping

bull The image of the industry shapes the business and legislative environment and our ability to attract resources

SHIPPINGrsquoS IMAGE

bull The image of the industry is created by the performance of the industry players (environmental social responsibility customer satisfactionhellip)

bull The image of the industry may also be influenced (or reinforced) by the approach actions and comments of the media (specialised and general) politicians regulators and helliphelliphelliphelliphellip

SHIP STAFF

Frequentlybull Treated as second class citizensbull Criminalised after accidentsbull Pressured by terminals charterers and othersbull Subjected to unnecessary number of ship inspectionsbull Provided with inadequate manuals equipment and cargo informationbull Flooded by a tsunami of paperworkbull Suffer from regulations developed without recognition of the

ramificationsbull Suffer excessive fatiguebull Morehelliphelliphelliphelliphelliphellipbull Owners actions includebull 10487081048708 Better accommodation standards and home communicationsbull 10487081048708 Commitments to (lifetime) education and trainingbull 10487081048708 Welfare packages

SHIP STAFF

Owners actions includebull Better accommodation standards

and home communicationsbull Commitments to (lifetime)

education and trainingbull Welfare packages

SHIP STAFF

bull In recent times the attitude of the Ratings are seen to be more positive than those of the Officers on board Indian flag ships

Maritime Administration

We appreciate and are grateful to our Govt forndash Granting short term dispensations to SMD on bulk

carriersndash Permitting NWKO(NCV) officers to sail on coastal vessels

including tankersndash Revising SMD thereby rationalizing manning on NCVOff

ndash Shore Fleetndash Reducing sea time requirements of cadets on cadet training

ships and introduction of graduate and NCV cadet schemes for ratings

ndash Tirelessly assisting us sail our vessels without any hesitation at even odd hours of the day

Maritime Administration

bull Areas of Concern -ndash Administration could not keep pace with the growth of

Indian Shipping and also could not adapt with the changing scenario of the requirement of customers of the industry

ndash Examination process ndash long and lengthy It is observed that around 2000 TNOCs have joined every year since introduction of IGNOU ndash DGS Scheme in 2004 However passing rate of second mate COC holders less than 25 per annum

Maritime Administrationbull Actions Requested -

ndash Full sea time for TNOCs for a period of Six months while serving on Off ndash Shore Research vessels

ndash Outsourcing Junior level competency examinations such as 2M FG Class IV etc

ndash Review process time for issuance of certificates after completion of examinations

ndash Expedite documentation for endorsements and revalidationsndash MMD Sight test may be conducted by a qualified ophthalmologist ndash Overcome shortage of Surveyors It is understood 50 of the

vacancies are lying vacant or are on ad hoc appointments

Concluding Remarks

bull With changing aspirations of the young population in a growing economy seafaring is not the most sought after career choice particularly for the urban youth

bull Indian shipping industryrsquos grand plans to acquire tonnage faces severe shortage problem

bull Short term solution ndash rationalization in taxation SMD allowing foreign officers etc

bull Long term solution ndash As listed in earlier slides

THANK YOU

• Reasons for Shortage
• Dangers of Inadequacy in Manpower
• Working Indian Seafarers
• Measures to address shortage of officers
• Steps taken by Indian Companies

Indiarsquos Overall Skilled Manpower Situation

bull Tremendous requirement of skilled man power by the growing Indian industrial sector for sustaining the growth rate

bull Generated 113 million net new jobs annually between 2000 and 2005 - over 60 more than the 7 million new jobs created in China

bull However the industry is facing a shortage of Specialized manpower to meet its present and future requirements

bull Ironically still high level of unemployment

Indiarsquos Overall Skilled Manpower Situation(cont)

bull Present State of University Education ndash

ndash Second highest number of engineering graduates after China - 401791 engineers in 2003-04 and 464743 engineers in 2004-05

ndash Fast catching up with China with about 600000 engineering graduates last year

ndash The United States produces only 70000 engineering graduates every year All of Europe produces just 100000

Seafarers ndash Global Scenario

bull Worldwide shortage

ndash By 2015 shortage of marine officers projected to nearly treble to 27000 from the present 10000

ndash As predicted by BIMCO current shortage will aggravate unless urgent steps are taken

ndash Aging OECD Officers

Seafarers ndash Global Scenario(cont)

bull Difficulties in attracting the manpower

ndash Lesser number of young people opting for seafaring as a career

ndash Physically demanding onboard job profile

ndash Availability of well-remunerative shore-based jobs

ndash Glamour and Fun associated with traditional seafaring has waned

Seafarers ndash Global Scenario(cont)

bull Increase in casualties

ndash Navigational accidents are on rise

ndash Rise coincided with the start of the recent shipping boom

ndash Number of accidents per ship close to mid-1980s when safety record was regarded as poor

ndash 90 accidents can be traced to human error

ndash With the current labour crisis and fleet growth shippingrsquos safety record is in danger

(Source DNV as quoted in TradeWinds)

Seafarers ndash Indian Scenario

bull Indian shipping industry is facing an acute shortage of Officers in the nautical side ndash more critical in the ranks of Mate and Second Mate

bull Indian Ship Owners are unable to meet Matrix Requirements of Oil Majors with respect to experience of senior Nautical and Engineer officers thereby losing lucrative business opportunities

bull Indian seafarers are much sought after all over the world for their skill knowledge integrity and reliability

bull Drift of Indian seafarers from Indian flag ships to foreign flag under the lure of lsquotax-freersquo pay packet arising out of differential tax treatment

bull Tonnage acquisition programme of the Indian shipping companies in jeopardy due to shortage of quality manpower

Indian Tonnage Acquisition ndash Seafaring Officers Shortage

bull Most of the Indian companies have launched ambitious tonnage expansion programme

bull Companies are also diversifying into new areas like container offshore LPGLNG etc

bull With such ambitious expansion program in Indiarsquos tonnage manpower (officers) shortage will worsen

Reasons for Shortage

bull Wagescost to Indian companies is similar compared with foreign flag ndash Indian companies lose skilled manpower due to differential ldquoPersonal Income Taxrdquo

bull Recruitment of foreign nationals on Indian ships permitted selectively by Administration However feasibility almost NIL due to various clearances

bull Indian Nationals holding Foreign Certificates from Australia Singapore Canada Hongkong NewZealand Sri Lanka NOT RECOGNIZED by Indian Government

bull Lengthy Fatigue prodded Exam process forces them to go to other countries or even make a career change

Dangers of Inadequacy in Manpower

bull Increased onboard accidentsincidents

bull Higher detentions by PSC authorities

bull Oil major approval failures on account of non-compliance of experienceage matrix

bull Reflection on reputation of companyflag administration

Working Indian Seafarers bull India is the 6th largest manpower supplying country in the world

bull The estimated seafaring population is as under

bull India is constantly widening the base to sustain its position as one of the largest manpower supplying country

Category Indian flag vessels

Foreign flag vessels

Total

Officers 8900 18000 26900

Ratings 21000 34000 55000

Total 29900 52000 81900

Seafarers ndash Indian Scenariobull Safe Manning Requirement

Nautical Side Engg Side

Master 1 Chief Engr 1

Mate 1 Second Engr 1

2nd Mate 2 3rd 4th Engr 2

Rating Nav Watch 3 Eng Watch Rating 3

Deck Crew 3

Cook 1

bull Govt support sought forndash Faster and easier clearance procedure for recruitment of foreign officersndash Officers holding COC issued by Singapore Australia etc be permitted to sail on Indian shipsndash Reduction of sailing time for cadetsndash Reduction in Safe Manning Requirement in line with other Flags Presently short term dispensation for

reduction in MSMD permitted

Basic Changes that need to be introduced

bull Promote shipping as a long term career

bull Tap the length and breadth of the Country

bull Create more awareness about seafaring

bull Resolving Shippingrsquos Image Crisis

bull Rationalization of seafarersrsquo taxation

bull SMD in line with the international norms

bull Sympathetic view of industry demands

Measures to address shortage of officers

Allow Indian ship owners to recruit Indian Nationals holding Foreign CertificatesCompulsory Service for Indian officers for 3 years on Indian ships who have received on-board training on our shipsUnder Tonnage Tax Regime trainees trained on Indian Flag Vessel obliged to serve tonnage tax company for 3 years Sea Time after certification Administration under Gazette Notification obliged to devise mechanism to ensure compliance by trainees No procedure yet in placeRationalisation of manning scales in line with international normsIncrease on-board training slots on foreign flag ships employing Indian officers Stem the drift of officers from Indian ships to foreign ships by removing Tax discrimination

Steps taken by Indian Companies

bull Wages at par with foreign companies ndash Grossing up salaries to take care of the tax burdenndash Net result ndash Higher CTC for Indian companies

bull Indian Shipping Companies have increased ship board training berths A leading Indian shipping company has converted five vessels as cadet training vessels

bull Social security benefits at par with foreign cosbull Extra resource allocation towards trainingbull Publicity campaignsbull Incorporating latest HRM techniques for better

understanding of the needs and problems

SHIPPINGrsquoS IMAGE

bull What is it bull Why is it important bull How is it created bull Who is responsible bull What can we do about it bull

A FEW PERSONAL OBSERVATIONS

bull ldquoImagerdquo like beauty is in the eye of the beholder thus there exist a spectrum of images of shipping

bull The image of the industry shapes the business and legislative environment and our ability to attract resources

SHIPPINGrsquoS IMAGE

bull The image of the industry is created by the performance of the industry players (environmental social responsibility customer satisfactionhellip)

bull The image of the industry may also be influenced (or reinforced) by the approach actions and comments of the media (specialised and general) politicians regulators and helliphelliphelliphelliphellip

SHIP STAFF

Frequentlybull Treated as second class citizensbull Criminalised after accidentsbull Pressured by terminals charterers and othersbull Subjected to unnecessary number of ship inspectionsbull Provided with inadequate manuals equipment and cargo informationbull Flooded by a tsunami of paperworkbull Suffer from regulations developed without recognition of the

ramificationsbull Suffer excessive fatiguebull Morehelliphelliphelliphelliphelliphellipbull Owners actions includebull 10487081048708 Better accommodation standards and home communicationsbull 10487081048708 Commitments to (lifetime) education and trainingbull 10487081048708 Welfare packages

SHIP STAFF

Owners actions includebull Better accommodation standards

and home communicationsbull Commitments to (lifetime)

education and trainingbull Welfare packages

SHIP STAFF

bull In recent times the attitude of the Ratings are seen to be more positive than those of the Officers on board Indian flag ships

Maritime Administration

We appreciate and are grateful to our Govt forndash Granting short term dispensations to SMD on bulk

carriersndash Permitting NWKO(NCV) officers to sail on coastal vessels

including tankersndash Revising SMD thereby rationalizing manning on NCVOff

ndash Shore Fleetndash Reducing sea time requirements of cadets on cadet training

ships and introduction of graduate and NCV cadet schemes for ratings

ndash Tirelessly assisting us sail our vessels without any hesitation at even odd hours of the day

Maritime Administration

bull Areas of Concern -ndash Administration could not keep pace with the growth of

Indian Shipping and also could not adapt with the changing scenario of the requirement of customers of the industry

ndash Examination process ndash long and lengthy It is observed that around 2000 TNOCs have joined every year since introduction of IGNOU ndash DGS Scheme in 2004 However passing rate of second mate COC holders less than 25 per annum

Maritime Administrationbull Actions Requested -

ndash Full sea time for TNOCs for a period of Six months while serving on Off ndash Shore Research vessels

ndash Outsourcing Junior level competency examinations such as 2M FG Class IV etc

ndash Review process time for issuance of certificates after completion of examinations

ndash Expedite documentation for endorsements and revalidationsndash MMD Sight test may be conducted by a qualified ophthalmologist ndash Overcome shortage of Surveyors It is understood 50 of the

vacancies are lying vacant or are on ad hoc appointments

Concluding Remarks

bull With changing aspirations of the young population in a growing economy seafaring is not the most sought after career choice particularly for the urban youth

bull Indian shipping industryrsquos grand plans to acquire tonnage faces severe shortage problem

bull Short term solution ndash rationalization in taxation SMD allowing foreign officers etc

bull Long term solution ndash As listed in earlier slides

THANK YOU

• Reasons for Shortage
• Dangers of Inadequacy in Manpower
• Working Indian Seafarers
• Measures to address shortage of officers
• Steps taken by Indian Companies

Indiarsquos Overall Skilled Manpower Situation(cont)

bull Present State of University Education ndash

ndash Second highest number of engineering graduates after China - 401791 engineers in 2003-04 and 464743 engineers in 2004-05

ndash Fast catching up with China with about 600000 engineering graduates last year

ndash The United States produces only 70000 engineering graduates every year All of Europe produces just 100000

Seafarers ndash Global Scenario

bull Worldwide shortage

ndash By 2015 shortage of marine officers projected to nearly treble to 27000 from the present 10000

ndash As predicted by BIMCO current shortage will aggravate unless urgent steps are taken

ndash Aging OECD Officers

Seafarers ndash Global Scenario(cont)

bull Difficulties in attracting the manpower

ndash Lesser number of young people opting for seafaring as a career

ndash Physically demanding onboard job profile

ndash Availability of well-remunerative shore-based jobs

ndash Glamour and Fun associated with traditional seafaring has waned

Seafarers ndash Global Scenario(cont)

bull Increase in casualties

ndash Navigational accidents are on rise

ndash Rise coincided with the start of the recent shipping boom

ndash Number of accidents per ship close to mid-1980s when safety record was regarded as poor

ndash 90 accidents can be traced to human error

ndash With the current labour crisis and fleet growth shippingrsquos safety record is in danger

(Source DNV as quoted in TradeWinds)

Seafarers ndash Indian Scenario

bull Indian shipping industry is facing an acute shortage of Officers in the nautical side ndash more critical in the ranks of Mate and Second Mate

bull Indian Ship Owners are unable to meet Matrix Requirements of Oil Majors with respect to experience of senior Nautical and Engineer officers thereby losing lucrative business opportunities

bull Indian seafarers are much sought after all over the world for their skill knowledge integrity and reliability

bull Drift of Indian seafarers from Indian flag ships to foreign flag under the lure of lsquotax-freersquo pay packet arising out of differential tax treatment

bull Tonnage acquisition programme of the Indian shipping companies in jeopardy due to shortage of quality manpower

Indian Tonnage Acquisition ndash Seafaring Officers Shortage

bull Most of the Indian companies have launched ambitious tonnage expansion programme

bull Companies are also diversifying into new areas like container offshore LPGLNG etc

bull With such ambitious expansion program in Indiarsquos tonnage manpower (officers) shortage will worsen

Reasons for Shortage

bull Wagescost to Indian companies is similar compared with foreign flag ndash Indian companies lose skilled manpower due to differential ldquoPersonal Income Taxrdquo

bull Recruitment of foreign nationals on Indian ships permitted selectively by Administration However feasibility almost NIL due to various clearances

bull Indian Nationals holding Foreign Certificates from Australia Singapore Canada Hongkong NewZealand Sri Lanka NOT RECOGNIZED by Indian Government

bull Lengthy Fatigue prodded Exam process forces them to go to other countries or even make a career change

Dangers of Inadequacy in Manpower

bull Increased onboard accidentsincidents

bull Higher detentions by PSC authorities

bull Oil major approval failures on account of non-compliance of experienceage matrix

bull Reflection on reputation of companyflag administration

Working Indian Seafarers bull India is the 6th largest manpower supplying country in the world

bull The estimated seafaring population is as under

bull India is constantly widening the base to sustain its position as one of the largest manpower supplying country

Category Indian flag vessels

Foreign flag vessels

Total

Officers 8900 18000 26900

Ratings 21000 34000 55000

Total 29900 52000 81900

Seafarers ndash Indian Scenariobull Safe Manning Requirement

Nautical Side Engg Side

Master 1 Chief Engr 1

Mate 1 Second Engr 1

2nd Mate 2 3rd 4th Engr 2

Rating Nav Watch 3 Eng Watch Rating 3

Deck Crew 3

Cook 1

bull Govt support sought forndash Faster and easier clearance procedure for recruitment of foreign officersndash Officers holding COC issued by Singapore Australia etc be permitted to sail on Indian shipsndash Reduction of sailing time for cadetsndash Reduction in Safe Manning Requirement in line with other Flags Presently short term dispensation for

reduction in MSMD permitted

Basic Changes that need to be introduced

bull Promote shipping as a long term career

bull Tap the length and breadth of the Country

bull Create more awareness about seafaring

bull Resolving Shippingrsquos Image Crisis

bull Rationalization of seafarersrsquo taxation

bull SMD in line with the international norms

bull Sympathetic view of industry demands

Measures to address shortage of officers

Allow Indian ship owners to recruit Indian Nationals holding Foreign CertificatesCompulsory Service for Indian officers for 3 years on Indian ships who have received on-board training on our shipsUnder Tonnage Tax Regime trainees trained on Indian Flag Vessel obliged to serve tonnage tax company for 3 years Sea Time after certification Administration under Gazette Notification obliged to devise mechanism to ensure compliance by trainees No procedure yet in placeRationalisation of manning scales in line with international normsIncrease on-board training slots on foreign flag ships employing Indian officers Stem the drift of officers from Indian ships to foreign ships by removing Tax discrimination

Steps taken by Indian Companies

bull Wages at par with foreign companies ndash Grossing up salaries to take care of the tax burdenndash Net result ndash Higher CTC for Indian companies

bull Indian Shipping Companies have increased ship board training berths A leading Indian shipping company has converted five vessels as cadet training vessels

bull Social security benefits at par with foreign cosbull Extra resource allocation towards trainingbull Publicity campaignsbull Incorporating latest HRM techniques for better

understanding of the needs and problems

SHIPPINGrsquoS IMAGE

bull What is it bull Why is it important bull How is it created bull Who is responsible bull What can we do about it bull

A FEW PERSONAL OBSERVATIONS

bull ldquoImagerdquo like beauty is in the eye of the beholder thus there exist a spectrum of images of shipping

bull The image of the industry shapes the business and legislative environment and our ability to attract resources

SHIPPINGrsquoS IMAGE

bull The image of the industry is created by the performance of the industry players (environmental social responsibility customer satisfactionhellip)

bull The image of the industry may also be influenced (or reinforced) by the approach actions and comments of the media (specialised and general) politicians regulators and helliphelliphelliphelliphellip

SHIP STAFF

Frequentlybull Treated as second class citizensbull Criminalised after accidentsbull Pressured by terminals charterers and othersbull Subjected to unnecessary number of ship inspectionsbull Provided with inadequate manuals equipment and cargo informationbull Flooded by a tsunami of paperworkbull Suffer from regulations developed without recognition of the

ramificationsbull Suffer excessive fatiguebull Morehelliphelliphelliphelliphelliphellipbull Owners actions includebull 10487081048708 Better accommodation standards and home communicationsbull 10487081048708 Commitments to (lifetime) education and trainingbull 10487081048708 Welfare packages

SHIP STAFF

Owners actions includebull Better accommodation standards

and home communicationsbull Commitments to (lifetime)

education and trainingbull Welfare packages

SHIP STAFF

bull In recent times the attitude of the Ratings are seen to be more positive than those of the Officers on board Indian flag ships

Maritime Administration

We appreciate and are grateful to our Govt forndash Granting short term dispensations to SMD on bulk

carriersndash Permitting NWKO(NCV) officers to sail on coastal vessels

including tankersndash Revising SMD thereby rationalizing manning on NCVOff

ndash Shore Fleetndash Reducing sea time requirements of cadets on cadet training

ships and introduction of graduate and NCV cadet schemes for ratings

ndash Tirelessly assisting us sail our vessels without any hesitation at even odd hours of the day

Maritime Administration

bull Areas of Concern -ndash Administration could not keep pace with the growth of

Indian Shipping and also could not adapt with the changing scenario of the requirement of customers of the industry

ndash Examination process ndash long and lengthy It is observed that around 2000 TNOCs have joined every year since introduction of IGNOU ndash DGS Scheme in 2004 However passing rate of second mate COC holders less than 25 per annum

Maritime Administrationbull Actions Requested -

ndash Full sea time for TNOCs for a period of Six months while serving on Off ndash Shore Research vessels

ndash Outsourcing Junior level competency examinations such as 2M FG Class IV etc

ndash Review process time for issuance of certificates after completion of examinations

ndash Expedite documentation for endorsements and revalidationsndash MMD Sight test may be conducted by a qualified ophthalmologist ndash Overcome shortage of Surveyors It is understood 50 of the

vacancies are lying vacant or are on ad hoc appointments

Concluding Remarks

bull With changing aspirations of the young population in a growing economy seafaring is not the most sought after career choice particularly for the urban youth

bull Indian shipping industryrsquos grand plans to acquire tonnage faces severe shortage problem

bull Short term solution ndash rationalization in taxation SMD allowing foreign officers etc

bull Long term solution ndash As listed in earlier slides

THANK YOU

• Reasons for Shortage
• Dangers of Inadequacy in Manpower
• Working Indian Seafarers
• Measures to address shortage of officers
• Steps taken by Indian Companies

Seafarers ndash Global Scenario

bull Worldwide shortage

ndash By 2015 shortage of marine officers projected to nearly treble to 27000 from the present 10000

ndash As predicted by BIMCO current shortage will aggravate unless urgent steps are taken

ndash Aging OECD Officers

Seafarers ndash Global Scenario(cont)

bull Difficulties in attracting the manpower

ndash Lesser number of young people opting for seafaring as a career

ndash Physically demanding onboard job profile

ndash Availability of well-remunerative shore-based jobs

ndash Glamour and Fun associated with traditional seafaring has waned

Seafarers ndash Global Scenario(cont)

bull Increase in casualties

ndash Navigational accidents are on rise

ndash Rise coincided with the start of the recent shipping boom

ndash Number of accidents per ship close to mid-1980s when safety record was regarded as poor

ndash 90 accidents can be traced to human error

ndash With the current labour crisis and fleet growth shippingrsquos safety record is in danger

(Source DNV as quoted in TradeWinds)

Seafarers ndash Indian Scenario

bull Indian shipping industry is facing an acute shortage of Officers in the nautical side ndash more critical in the ranks of Mate and Second Mate

bull Indian Ship Owners are unable to meet Matrix Requirements of Oil Majors with respect to experience of senior Nautical and Engineer officers thereby losing lucrative business opportunities

bull Indian seafarers are much sought after all over the world for their skill knowledge integrity and reliability

bull Drift of Indian seafarers from Indian flag ships to foreign flag under the lure of lsquotax-freersquo pay packet arising out of differential tax treatment

bull Tonnage acquisition programme of the Indian shipping companies in jeopardy due to shortage of quality manpower

Indian Tonnage Acquisition ndash Seafaring Officers Shortage

bull Most of the Indian companies have launched ambitious tonnage expansion programme

bull Companies are also diversifying into new areas like container offshore LPGLNG etc

bull With such ambitious expansion program in Indiarsquos tonnage manpower (officers) shortage will worsen

Reasons for Shortage

bull Wagescost to Indian companies is similar compared with foreign flag ndash Indian companies lose skilled manpower due to differential ldquoPersonal Income Taxrdquo

bull Recruitment of foreign nationals on Indian ships permitted selectively by Administration However feasibility almost NIL due to various clearances

bull Indian Nationals holding Foreign Certificates from Australia Singapore Canada Hongkong NewZealand Sri Lanka NOT RECOGNIZED by Indian Government

bull Lengthy Fatigue prodded Exam process forces them to go to other countries or even make a career change

Dangers of Inadequacy in Manpower

bull Increased onboard accidentsincidents

bull Higher detentions by PSC authorities

bull Oil major approval failures on account of non-compliance of experienceage matrix

bull Reflection on reputation of companyflag administration

Working Indian Seafarers bull India is the 6th largest manpower supplying country in the world

bull The estimated seafaring population is as under

bull India is constantly widening the base to sustain its position as one of the largest manpower supplying country

Category Indian flag vessels

Foreign flag vessels

Total

Officers 8900 18000 26900

Ratings 21000 34000 55000

Total 29900 52000 81900

Seafarers ndash Indian Scenariobull Safe Manning Requirement

Nautical Side Engg Side

Master 1 Chief Engr 1

Mate 1 Second Engr 1

2nd Mate 2 3rd 4th Engr 2

Rating Nav Watch 3 Eng Watch Rating 3

Deck Crew 3

Cook 1

bull Govt support sought forndash Faster and easier clearance procedure for recruitment of foreign officersndash Officers holding COC issued by Singapore Australia etc be permitted to sail on Indian shipsndash Reduction of sailing time for cadetsndash Reduction in Safe Manning Requirement in line with other Flags Presently short term dispensation for

reduction in MSMD permitted

Basic Changes that need to be introduced

bull Promote shipping as a long term career

bull Tap the length and breadth of the Country

bull Create more awareness about seafaring

bull Resolving Shippingrsquos Image Crisis

bull Rationalization of seafarersrsquo taxation

bull SMD in line with the international norms

bull Sympathetic view of industry demands

Measures to address shortage of officers

Allow Indian ship owners to recruit Indian Nationals holding Foreign CertificatesCompulsory Service for Indian officers for 3 years on Indian ships who have received on-board training on our shipsUnder Tonnage Tax Regime trainees trained on Indian Flag Vessel obliged to serve tonnage tax company for 3 years Sea Time after certification Administration under Gazette Notification obliged to devise mechanism to ensure compliance by trainees No procedure yet in placeRationalisation of manning scales in line with international normsIncrease on-board training slots on foreign flag ships employing Indian officers Stem the drift of officers from Indian ships to foreign ships by removing Tax discrimination

Steps taken by Indian Companies

bull Wages at par with foreign companies ndash Grossing up salaries to take care of the tax burdenndash Net result ndash Higher CTC for Indian companies

bull Indian Shipping Companies have increased ship board training berths A leading Indian shipping company has converted five vessels as cadet training vessels

bull Social security benefits at par with foreign cosbull Extra resource allocation towards trainingbull Publicity campaignsbull Incorporating latest HRM techniques for better

understanding of the needs and problems

SHIPPINGrsquoS IMAGE

bull What is it bull Why is it important bull How is it created bull Who is responsible bull What can we do about it bull

A FEW PERSONAL OBSERVATIONS

bull ldquoImagerdquo like beauty is in the eye of the beholder thus there exist a spectrum of images of shipping

bull The image of the industry shapes the business and legislative environment and our ability to attract resources

SHIPPINGrsquoS IMAGE

bull The image of the industry is created by the performance of the industry players (environmental social responsibility customer satisfactionhellip)

bull The image of the industry may also be influenced (or reinforced) by the approach actions and comments of the media (specialised and general) politicians regulators and helliphelliphelliphelliphellip

SHIP STAFF

Frequentlybull Treated as second class citizensbull Criminalised after accidentsbull Pressured by terminals charterers and othersbull Subjected to unnecessary number of ship inspectionsbull Provided with inadequate manuals equipment and cargo informationbull Flooded by a tsunami of paperworkbull Suffer from regulations developed without recognition of the

ramificationsbull Suffer excessive fatiguebull Morehelliphelliphelliphelliphelliphellipbull Owners actions includebull 10487081048708 Better accommodation standards and home communicationsbull 10487081048708 Commitments to (lifetime) education and trainingbull 10487081048708 Welfare packages

SHIP STAFF

Owners actions includebull Better accommodation standards

and home communicationsbull Commitments to (lifetime)

education and trainingbull Welfare packages

SHIP STAFF

bull In recent times the attitude of the Ratings are seen to be more positive than those of the Officers on board Indian flag ships

Maritime Administration

We appreciate and are grateful to our Govt forndash Granting short term dispensations to SMD on bulk

carriersndash Permitting NWKO(NCV) officers to sail on coastal vessels

including tankersndash Revising SMD thereby rationalizing manning on NCVOff

ndash Shore Fleetndash Reducing sea time requirements of cadets on cadet training

ships and introduction of graduate and NCV cadet schemes for ratings

ndash Tirelessly assisting us sail our vessels without any hesitation at even odd hours of the day

Maritime Administration

bull Areas of Concern -ndash Administration could not keep pace with the growth of

Indian Shipping and also could not adapt with the changing scenario of the requirement of customers of the industry

ndash Examination process ndash long and lengthy It is observed that around 2000 TNOCs have joined every year since introduction of IGNOU ndash DGS Scheme in 2004 However passing rate of second mate COC holders less than 25 per annum

Maritime Administrationbull Actions Requested -

ndash Full sea time for TNOCs for a period of Six months while serving on Off ndash Shore Research vessels

ndash Outsourcing Junior level competency examinations such as 2M FG Class IV etc

ndash Review process time for issuance of certificates after completion of examinations

ndash Expedite documentation for endorsements and revalidationsndash MMD Sight test may be conducted by a qualified ophthalmologist ndash Overcome shortage of Surveyors It is understood 50 of the

vacancies are lying vacant or are on ad hoc appointments

Concluding Remarks

bull With changing aspirations of the young population in a growing economy seafaring is not the most sought after career choice particularly for the urban youth

bull Indian shipping industryrsquos grand plans to acquire tonnage faces severe shortage problem

bull Short term solution ndash rationalization in taxation SMD allowing foreign officers etc

bull Long term solution ndash As listed in earlier slides

THANK YOU

• Reasons for Shortage
• Dangers of Inadequacy in Manpower
• Working Indian Seafarers
• Measures to address shortage of officers
• Steps taken by Indian Companies

Seafarers ndash Global Scenario(cont)

bull Difficulties in attracting the manpower

ndash Lesser number of young people opting for seafaring as a career

ndash Physically demanding onboard job profile

ndash Availability of well-remunerative shore-based jobs

ndash Glamour and Fun associated with traditional seafaring has waned

Seafarers ndash Global Scenario(cont)

bull Increase in casualties

ndash Navigational accidents are on rise

ndash Rise coincided with the start of the recent shipping boom

ndash Number of accidents per ship close to mid-1980s when safety record was regarded as poor

ndash 90 accidents can be traced to human error

ndash With the current labour crisis and fleet growth shippingrsquos safety record is in danger

(Source DNV as quoted in TradeWinds)

Seafarers ndash Indian Scenario

bull Indian shipping industry is facing an acute shortage of Officers in the nautical side ndash more critical in the ranks of Mate and Second Mate

bull Indian Ship Owners are unable to meet Matrix Requirements of Oil Majors with respect to experience of senior Nautical and Engineer officers thereby losing lucrative business opportunities

bull Indian seafarers are much sought after all over the world for their skill knowledge integrity and reliability

bull Drift of Indian seafarers from Indian flag ships to foreign flag under the lure of lsquotax-freersquo pay packet arising out of differential tax treatment

bull Tonnage acquisition programme of the Indian shipping companies in jeopardy due to shortage of quality manpower

Indian Tonnage Acquisition ndash Seafaring Officers Shortage

bull Most of the Indian companies have launched ambitious tonnage expansion programme

bull Companies are also diversifying into new areas like container offshore LPGLNG etc

bull With such ambitious expansion program in Indiarsquos tonnage manpower (officers) shortage will worsen

Reasons for Shortage

bull Wagescost to Indian companies is similar compared with foreign flag ndash Indian companies lose skilled manpower due to differential ldquoPersonal Income Taxrdquo

bull Recruitment of foreign nationals on Indian ships permitted selectively by Administration However feasibility almost NIL due to various clearances

bull Indian Nationals holding Foreign Certificates from Australia Singapore Canada Hongkong NewZealand Sri Lanka NOT RECOGNIZED by Indian Government

bull Lengthy Fatigue prodded Exam process forces them to go to other countries or even make a career change

Dangers of Inadequacy in Manpower

bull Increased onboard accidentsincidents

bull Higher detentions by PSC authorities

bull Oil major approval failures on account of non-compliance of experienceage matrix

bull Reflection on reputation of companyflag administration

Working Indian Seafarers bull India is the 6th largest manpower supplying country in the world

bull The estimated seafaring population is as under

bull India is constantly widening the base to sustain its position as one of the largest manpower supplying country

Category Indian flag vessels

Foreign flag vessels

Total

Officers 8900 18000 26900

Ratings 21000 34000 55000

Total 29900 52000 81900

Seafarers ndash Indian Scenariobull Safe Manning Requirement

Nautical Side Engg Side

Master 1 Chief Engr 1

Mate 1 Second Engr 1

2nd Mate 2 3rd 4th Engr 2

Rating Nav Watch 3 Eng Watch Rating 3

Deck Crew 3

Cook 1

bull Govt support sought forndash Faster and easier clearance procedure for recruitment of foreign officersndash Officers holding COC issued by Singapore Australia etc be permitted to sail on Indian shipsndash Reduction of sailing time for cadetsndash Reduction in Safe Manning Requirement in line with other Flags Presently short term dispensation for

reduction in MSMD permitted

Basic Changes that need to be introduced

bull Promote shipping as a long term career

bull Tap the length and breadth of the Country

bull Create more awareness about seafaring

bull Resolving Shippingrsquos Image Crisis

bull Rationalization of seafarersrsquo taxation

bull SMD in line with the international norms

bull Sympathetic view of industry demands

Measures to address shortage of officers

Allow Indian ship owners to recruit Indian Nationals holding Foreign CertificatesCompulsory Service for Indian officers for 3 years on Indian ships who have received on-board training on our shipsUnder Tonnage Tax Regime trainees trained on Indian Flag Vessel obliged to serve tonnage tax company for 3 years Sea Time after certification Administration under Gazette Notification obliged to devise mechanism to ensure compliance by trainees No procedure yet in placeRationalisation of manning scales in line with international normsIncrease on-board training slots on foreign flag ships employing Indian officers Stem the drift of officers from Indian ships to foreign ships by removing Tax discrimination

Steps taken by Indian Companies

bull Wages at par with foreign companies ndash Grossing up salaries to take care of the tax burdenndash Net result ndash Higher CTC for Indian companies

bull Indian Shipping Companies have increased ship board training berths A leading Indian shipping company has converted five vessels as cadet training vessels

bull Social security benefits at par with foreign cosbull Extra resource allocation towards trainingbull Publicity campaignsbull Incorporating latest HRM techniques for better

understanding of the needs and problems

SHIPPINGrsquoS IMAGE

bull What is it bull Why is it important bull How is it created bull Who is responsible bull What can we do about it bull

A FEW PERSONAL OBSERVATIONS

bull ldquoImagerdquo like beauty is in the eye of the beholder thus there exist a spectrum of images of shipping

bull The image of the industry shapes the business and legislative environment and our ability to attract resources

SHIPPINGrsquoS IMAGE

bull The image of the industry is created by the performance of the industry players (environmental social responsibility customer satisfactionhellip)

bull The image of the industry may also be influenced (or reinforced) by the approach actions and comments of the media (specialised and general) politicians regulators and helliphelliphelliphelliphellip

SHIP STAFF

Frequentlybull Treated as second class citizensbull Criminalised after accidentsbull Pressured by terminals charterers and othersbull Subjected to unnecessary number of ship inspectionsbull Provided with inadequate manuals equipment and cargo informationbull Flooded by a tsunami of paperworkbull Suffer from regulations developed without recognition of the

ramificationsbull Suffer excessive fatiguebull Morehelliphelliphelliphelliphelliphellipbull Owners actions includebull 10487081048708 Better accommodation standards and home communicationsbull 10487081048708 Commitments to (lifetime) education and trainingbull 10487081048708 Welfare packages

SHIP STAFF

Owners actions includebull Better accommodation standards

and home communicationsbull Commitments to (lifetime)

education and trainingbull Welfare packages

SHIP STAFF

bull In recent times the attitude of the Ratings are seen to be more positive than those of the Officers on board Indian flag ships

Maritime Administration

We appreciate and are grateful to our Govt forndash Granting short term dispensations to SMD on bulk

carriersndash Permitting NWKO(NCV) officers to sail on coastal vessels

including tankersndash Revising SMD thereby rationalizing manning on NCVOff

ndash Shore Fleetndash Reducing sea time requirements of cadets on cadet training

ships and introduction of graduate and NCV cadet schemes for ratings

ndash Tirelessly assisting us sail our vessels without any hesitation at even odd hours of the day

Maritime Administration

bull Areas of Concern -ndash Administration could not keep pace with the growth of

Indian Shipping and also could not adapt with the changing scenario of the requirement of customers of the industry

ndash Examination process ndash long and lengthy It is observed that around 2000 TNOCs have joined every year since introduction of IGNOU ndash DGS Scheme in 2004 However passing rate of second mate COC holders less than 25 per annum

Maritime Administrationbull Actions Requested -

ndash Full sea time for TNOCs for a period of Six months while serving on Off ndash Shore Research vessels

ndash Outsourcing Junior level competency examinations such as 2M FG Class IV etc

ndash Review process time for issuance of certificates after completion of examinations

ndash Expedite documentation for endorsements and revalidationsndash MMD Sight test may be conducted by a qualified ophthalmologist ndash Overcome shortage of Surveyors It is understood 50 of the

vacancies are lying vacant or are on ad hoc appointments

Concluding Remarks

bull With changing aspirations of the young population in a growing economy seafaring is not the most sought after career choice particularly for the urban youth

bull Indian shipping industryrsquos grand plans to acquire tonnage faces severe shortage problem

bull Short term solution ndash rationalization in taxation SMD allowing foreign officers etc

bull Long term solution ndash As listed in earlier slides

THANK YOU

• Reasons for Shortage
• Dangers of Inadequacy in Manpower
• Working Indian Seafarers
• Measures to address shortage of officers
• Steps taken by Indian Companies

Seafarers ndash Global Scenario(cont)

bull Increase in casualties

ndash Navigational accidents are on rise

ndash Rise coincided with the start of the recent shipping boom

ndash Number of accidents per ship close to mid-1980s when safety record was regarded as poor

ndash 90 accidents can be traced to human error

ndash With the current labour crisis and fleet growth shippingrsquos safety record is in danger

(Source DNV as quoted in TradeWinds)

Seafarers ndash Indian Scenario

bull Indian shipping industry is facing an acute shortage of Officers in the nautical side ndash more critical in the ranks of Mate and Second Mate

bull Indian Ship Owners are unable to meet Matrix Requirements of Oil Majors with respect to experience of senior Nautical and Engineer officers thereby losing lucrative business opportunities

bull Indian seafarers are much sought after all over the world for their skill knowledge integrity and reliability

bull Drift of Indian seafarers from Indian flag ships to foreign flag under the lure of lsquotax-freersquo pay packet arising out of differential tax treatment

bull Tonnage acquisition programme of the Indian shipping companies in jeopardy due to shortage of quality manpower

Indian Tonnage Acquisition ndash Seafaring Officers Shortage

bull Most of the Indian companies have launched ambitious tonnage expansion programme

bull Companies are also diversifying into new areas like container offshore LPGLNG etc

bull With such ambitious expansion program in Indiarsquos tonnage manpower (officers) shortage will worsen

Reasons for Shortage

bull Wagescost to Indian companies is similar compared with foreign flag ndash Indian companies lose skilled manpower due to differential ldquoPersonal Income Taxrdquo

bull Recruitment of foreign nationals on Indian ships permitted selectively by Administration However feasibility almost NIL due to various clearances

bull Indian Nationals holding Foreign Certificates from Australia Singapore Canada Hongkong NewZealand Sri Lanka NOT RECOGNIZED by Indian Government

bull Lengthy Fatigue prodded Exam process forces them to go to other countries or even make a career change

Dangers of Inadequacy in Manpower

bull Increased onboard accidentsincidents

bull Higher detentions by PSC authorities

bull Oil major approval failures on account of non-compliance of experienceage matrix

bull Reflection on reputation of companyflag administration

Working Indian Seafarers bull India is the 6th largest manpower supplying country in the world

bull The estimated seafaring population is as under

bull India is constantly widening the base to sustain its position as one of the largest manpower supplying country

Category Indian flag vessels

Foreign flag vessels

Total

Officers 8900 18000 26900

Ratings 21000 34000 55000

Total 29900 52000 81900

Seafarers ndash Indian Scenariobull Safe Manning Requirement

Nautical Side Engg Side

Master 1 Chief Engr 1

Mate 1 Second Engr 1

2nd Mate 2 3rd 4th Engr 2

Rating Nav Watch 3 Eng Watch Rating 3

Deck Crew 3

Cook 1

bull Govt support sought forndash Faster and easier clearance procedure for recruitment of foreign officersndash Officers holding COC issued by Singapore Australia etc be permitted to sail on Indian shipsndash Reduction of sailing time for cadetsndash Reduction in Safe Manning Requirement in line with other Flags Presently short term dispensation for

reduction in MSMD permitted

Basic Changes that need to be introduced

bull Promote shipping as a long term career

bull Tap the length and breadth of the Country

bull Create more awareness about seafaring

bull Resolving Shippingrsquos Image Crisis

bull Rationalization of seafarersrsquo taxation

bull SMD in line with the international norms

bull Sympathetic view of industry demands

Measures to address shortage of officers

Allow Indian ship owners to recruit Indian Nationals holding Foreign CertificatesCompulsory Service for Indian officers for 3 years on Indian ships who have received on-board training on our shipsUnder Tonnage Tax Regime trainees trained on Indian Flag Vessel obliged to serve tonnage tax company for 3 years Sea Time after certification Administration under Gazette Notification obliged to devise mechanism to ensure compliance by trainees No procedure yet in placeRationalisation of manning scales in line with international normsIncrease on-board training slots on foreign flag ships employing Indian officers Stem the drift of officers from Indian ships to foreign ships by removing Tax discrimination

Steps taken by Indian Companies

bull Wages at par with foreign companies ndash Grossing up salaries to take care of the tax burdenndash Net result ndash Higher CTC for Indian companies

bull Indian Shipping Companies have increased ship board training berths A leading Indian shipping company has converted five vessels as cadet training vessels

bull Social security benefits at par with foreign cosbull Extra resource allocation towards trainingbull Publicity campaignsbull Incorporating latest HRM techniques for better

understanding of the needs and problems

SHIPPINGrsquoS IMAGE

bull What is it bull Why is it important bull How is it created bull Who is responsible bull What can we do about it bull

A FEW PERSONAL OBSERVATIONS

bull ldquoImagerdquo like beauty is in the eye of the beholder thus there exist a spectrum of images of shipping

bull The image of the industry shapes the business and legislative environment and our ability to attract resources

SHIPPINGrsquoS IMAGE

bull The image of the industry is created by the performance of the industry players (environmental social responsibility customer satisfactionhellip)

bull The image of the industry may also be influenced (or reinforced) by the approach actions and comments of the media (specialised and general) politicians regulators and helliphelliphelliphelliphellip

SHIP STAFF

Frequentlybull Treated as second class citizensbull Criminalised after accidentsbull Pressured by terminals charterers and othersbull Subjected to unnecessary number of ship inspectionsbull Provided with inadequate manuals equipment and cargo informationbull Flooded by a tsunami of paperworkbull Suffer from regulations developed without recognition of the

ramificationsbull Suffer excessive fatiguebull Morehelliphelliphelliphelliphelliphellipbull Owners actions includebull 10487081048708 Better accommodation standards and home communicationsbull 10487081048708 Commitments to (lifetime) education and trainingbull 10487081048708 Welfare packages

SHIP STAFF

Owners actions includebull Better accommodation standards

and home communicationsbull Commitments to (lifetime)

education and trainingbull Welfare packages

SHIP STAFF

bull In recent times the attitude of the Ratings are seen to be more positive than those of the Officers on board Indian flag ships

Maritime Administration

We appreciate and are grateful to our Govt forndash Granting short term dispensations to SMD on bulk

carriersndash Permitting NWKO(NCV) officers to sail on coastal vessels

including tankersndash Revising SMD thereby rationalizing manning on NCVOff

ndash Shore Fleetndash Reducing sea time requirements of cadets on cadet training

ships and introduction of graduate and NCV cadet schemes for ratings

ndash Tirelessly assisting us sail our vessels without any hesitation at even odd hours of the day

Maritime Administration

bull Areas of Concern -ndash Administration could not keep pace with the growth of

Indian Shipping and also could not adapt with the changing scenario of the requirement of customers of the industry

ndash Examination process ndash long and lengthy It is observed that around 2000 TNOCs have joined every year since introduction of IGNOU ndash DGS Scheme in 2004 However passing rate of second mate COC holders less than 25 per annum

Maritime Administrationbull Actions Requested -

ndash Full sea time for TNOCs for a period of Six months while serving on Off ndash Shore Research vessels

ndash Outsourcing Junior level competency examinations such as 2M FG Class IV etc

ndash Review process time for issuance of certificates after completion of examinations

ndash Expedite documentation for endorsements and revalidationsndash MMD Sight test may be conducted by a qualified ophthalmologist ndash Overcome shortage of Surveyors It is understood 50 of the

vacancies are lying vacant or are on ad hoc appointments

Concluding Remarks

bull With changing aspirations of the young population in a growing economy seafaring is not the most sought after career choice particularly for the urban youth

bull Indian shipping industryrsquos grand plans to acquire tonnage faces severe shortage problem

bull Short term solution ndash rationalization in taxation SMD allowing foreign officers etc

bull Long term solution ndash As listed in earlier slides

THANK YOU

• Reasons for Shortage
• Dangers of Inadequacy in Manpower
• Working Indian Seafarers
• Measures to address shortage of officers
• Steps taken by Indian Companies

Seafarers ndash Indian Scenario

bull Indian shipping industry is facing an acute shortage of Officers in the nautical side ndash more critical in the ranks of Mate and Second Mate

bull Indian Ship Owners are unable to meet Matrix Requirements of Oil Majors with respect to experience of senior Nautical and Engineer officers thereby losing lucrative business opportunities

bull Indian seafarers are much sought after all over the world for their skill knowledge integrity and reliability

bull Drift of Indian seafarers from Indian flag ships to foreign flag under the lure of lsquotax-freersquo pay packet arising out of differential tax treatment

bull Tonnage acquisition programme of the Indian shipping companies in jeopardy due to shortage of quality manpower

Indian Tonnage Acquisition ndash Seafaring Officers Shortage

bull Most of the Indian companies have launched ambitious tonnage expansion programme

bull Companies are also diversifying into new areas like container offshore LPGLNG etc

bull With such ambitious expansion program in Indiarsquos tonnage manpower (officers) shortage will worsen

Reasons for Shortage

bull Wagescost to Indian companies is similar compared with foreign flag ndash Indian companies lose skilled manpower due to differential ldquoPersonal Income Taxrdquo

bull Recruitment of foreign nationals on Indian ships permitted selectively by Administration However feasibility almost NIL due to various clearances

bull Indian Nationals holding Foreign Certificates from Australia Singapore Canada Hongkong NewZealand Sri Lanka NOT RECOGNIZED by Indian Government

bull Lengthy Fatigue prodded Exam process forces them to go to other countries or even make a career change

Dangers of Inadequacy in Manpower

bull Increased onboard accidentsincidents

bull Higher detentions by PSC authorities

bull Oil major approval failures on account of non-compliance of experienceage matrix

bull Reflection on reputation of companyflag administration

Working Indian Seafarers bull India is the 6th largest manpower supplying country in the world

bull The estimated seafaring population is as under

bull India is constantly widening the base to sustain its position as one of the largest manpower supplying country

Category Indian flag vessels

Foreign flag vessels

Total

Officers 8900 18000 26900

Ratings 21000 34000 55000

Total 29900 52000 81900

Seafarers ndash Indian Scenariobull Safe Manning Requirement

Nautical Side Engg Side

Master 1 Chief Engr 1

Mate 1 Second Engr 1

2nd Mate 2 3rd 4th Engr 2

Rating Nav Watch 3 Eng Watch Rating 3

Deck Crew 3

Cook 1

bull Govt support sought forndash Faster and easier clearance procedure for recruitment of foreign officersndash Officers holding COC issued by Singapore Australia etc be permitted to sail on Indian shipsndash Reduction of sailing time for cadetsndash Reduction in Safe Manning Requirement in line with other Flags Presently short term dispensation for

reduction in MSMD permitted

Basic Changes that need to be introduced

bull Promote shipping as a long term career

bull Tap the length and breadth of the Country

bull Create more awareness about seafaring

bull Resolving Shippingrsquos Image Crisis

bull Rationalization of seafarersrsquo taxation

bull SMD in line with the international norms

bull Sympathetic view of industry demands

Measures to address shortage of officers

Allow Indian ship owners to recruit Indian Nationals holding Foreign CertificatesCompulsory Service for Indian officers for 3 years on Indian ships who have received on-board training on our shipsUnder Tonnage Tax Regime trainees trained on Indian Flag Vessel obliged to serve tonnage tax company for 3 years Sea Time after certification Administration under Gazette Notification obliged to devise mechanism to ensure compliance by trainees No procedure yet in placeRationalisation of manning scales in line with international normsIncrease on-board training slots on foreign flag ships employing Indian officers Stem the drift of officers from Indian ships to foreign ships by removing Tax discrimination

Steps taken by Indian Companies

bull Wages at par with foreign companies ndash Grossing up salaries to take care of the tax burdenndash Net result ndash Higher CTC for Indian companies

bull Indian Shipping Companies have increased ship board training berths A leading Indian shipping company has converted five vessels as cadet training vessels

bull Social security benefits at par with foreign cosbull Extra resource allocation towards trainingbull Publicity campaignsbull Incorporating latest HRM techniques for better

understanding of the needs and problems

SHIPPINGrsquoS IMAGE

bull What is it bull Why is it important bull How is it created bull Who is responsible bull What can we do about it bull

A FEW PERSONAL OBSERVATIONS

bull ldquoImagerdquo like beauty is in the eye of the beholder thus there exist a spectrum of images of shipping

bull The image of the industry shapes the business and legislative environment and our ability to attract resources

SHIPPINGrsquoS IMAGE

bull The image of the industry is created by the performance of the industry players (environmental social responsibility customer satisfactionhellip)

bull The image of the industry may also be influenced (or reinforced) by the approach actions and comments of the media (specialised and general) politicians regulators and helliphelliphelliphelliphellip

SHIP STAFF

Frequentlybull Treated as second class citizensbull Criminalised after accidentsbull Pressured by terminals charterers and othersbull Subjected to unnecessary number of ship inspectionsbull Provided with inadequate manuals equipment and cargo informationbull Flooded by a tsunami of paperworkbull Suffer from regulations developed without recognition of the

ramificationsbull Suffer excessive fatiguebull Morehelliphelliphelliphelliphelliphellipbull Owners actions includebull 10487081048708 Better accommodation standards and home communicationsbull 10487081048708 Commitments to (lifetime) education and trainingbull 10487081048708 Welfare packages

SHIP STAFF

Owners actions includebull Better accommodation standards

and home communicationsbull Commitments to (lifetime)

education and trainingbull Welfare packages

SHIP STAFF

bull In recent times the attitude of the Ratings are seen to be more positive than those of the Officers on board Indian flag ships

Maritime Administration

We appreciate and are grateful to our Govt forndash Granting short term dispensations to SMD on bulk

carriersndash Permitting NWKO(NCV) officers to sail on coastal vessels

including tankersndash Revising SMD thereby rationalizing manning on NCVOff

ndash Shore Fleetndash Reducing sea time requirements of cadets on cadet training

ships and introduction of graduate and NCV cadet schemes for ratings

ndash Tirelessly assisting us sail our vessels without any hesitation at even odd hours of the day

Maritime Administration

bull Areas of Concern -ndash Administration could not keep pace with the growth of

Indian Shipping and also could not adapt with the changing scenario of the requirement of customers of the industry

ndash Examination process ndash long and lengthy It is observed that around 2000 TNOCs have joined every year since introduction of IGNOU ndash DGS Scheme in 2004 However passing rate of second mate COC holders less than 25 per annum

Maritime Administrationbull Actions Requested -

ndash Full sea time for TNOCs for a period of Six months while serving on Off ndash Shore Research vessels

ndash Outsourcing Junior level competency examinations such as 2M FG Class IV etc

ndash Review process time for issuance of certificates after completion of examinations

ndash Expedite documentation for endorsements and revalidationsndash MMD Sight test may be conducted by a qualified ophthalmologist ndash Overcome shortage of Surveyors It is understood 50 of the

vacancies are lying vacant or are on ad hoc appointments

Concluding Remarks

bull With changing aspirations of the young population in a growing economy seafaring is not the most sought after career choice particularly for the urban youth

bull Indian shipping industryrsquos grand plans to acquire tonnage faces severe shortage problem

bull Short term solution ndash rationalization in taxation SMD allowing foreign officers etc

bull Long term solution ndash As listed in earlier slides

THANK YOU

• Reasons for Shortage
• Dangers of Inadequacy in Manpower
• Working Indian Seafarers
• Measures to address shortage of officers
• Steps taken by Indian Companies

Indian Tonnage Acquisition ndash Seafaring Officers Shortage

bull Most of the Indian companies have launched ambitious tonnage expansion programme

bull Companies are also diversifying into new areas like container offshore LPGLNG etc

bull With such ambitious expansion program in Indiarsquos tonnage manpower (officers) shortage will worsen

Reasons for Shortage

bull Wagescost to Indian companies is similar compared with foreign flag ndash Indian companies lose skilled manpower due to differential ldquoPersonal Income Taxrdquo

bull Recruitment of foreign nationals on Indian ships permitted selectively by Administration However feasibility almost NIL due to various clearances

bull Indian Nationals holding Foreign Certificates from Australia Singapore Canada Hongkong NewZealand Sri Lanka NOT RECOGNIZED by Indian Government

bull Lengthy Fatigue prodded Exam process forces them to go to other countries or even make a career change

Dangers of Inadequacy in Manpower

bull Increased onboard accidentsincidents

bull Higher detentions by PSC authorities

bull Oil major approval failures on account of non-compliance of experienceage matrix

bull Reflection on reputation of companyflag administration

Working Indian Seafarers bull India is the 6th largest manpower supplying country in the world

bull The estimated seafaring population is as under

bull India is constantly widening the base to sustain its position as one of the largest manpower supplying country

Category Indian flag vessels

Foreign flag vessels

Total

Officers 8900 18000 26900

Ratings 21000 34000 55000

Total 29900 52000 81900

Seafarers ndash Indian Scenariobull Safe Manning Requirement

Nautical Side Engg Side

Master 1 Chief Engr 1

Mate 1 Second Engr 1

2nd Mate 2 3rd 4th Engr 2

Rating Nav Watch 3 Eng Watch Rating 3

Deck Crew 3

Cook 1

bull Govt support sought forndash Faster and easier clearance procedure for recruitment of foreign officersndash Officers holding COC issued by Singapore Australia etc be permitted to sail on Indian shipsndash Reduction of sailing time for cadetsndash Reduction in Safe Manning Requirement in line with other Flags Presently short term dispensation for

reduction in MSMD permitted

Basic Changes that need to be introduced

bull Promote shipping as a long term career

bull Tap the length and breadth of the Country

bull Create more awareness about seafaring

bull Resolving Shippingrsquos Image Crisis

bull Rationalization of seafarersrsquo taxation

bull SMD in line with the international norms

bull Sympathetic view of industry demands

Measures to address shortage of officers

Allow Indian ship owners to recruit Indian Nationals holding Foreign CertificatesCompulsory Service for Indian officers for 3 years on Indian ships who have received on-board training on our shipsUnder Tonnage Tax Regime trainees trained on Indian Flag Vessel obliged to serve tonnage tax company for 3 years Sea Time after certification Administration under Gazette Notification obliged to devise mechanism to ensure compliance by trainees No procedure yet in placeRationalisation of manning scales in line with international normsIncrease on-board training slots on foreign flag ships employing Indian officers Stem the drift of officers from Indian ships to foreign ships by removing Tax discrimination

Steps taken by Indian Companies

bull Wages at par with foreign companies ndash Grossing up salaries to take care of the tax burdenndash Net result ndash Higher CTC for Indian companies

bull Indian Shipping Companies have increased ship board training berths A leading Indian shipping company has converted five vessels as cadet training vessels

bull Social security benefits at par with foreign cosbull Extra resource allocation towards trainingbull Publicity campaignsbull Incorporating latest HRM techniques for better

understanding of the needs and problems

SHIPPINGrsquoS IMAGE

bull What is it bull Why is it important bull How is it created bull Who is responsible bull What can we do about it bull

A FEW PERSONAL OBSERVATIONS

bull ldquoImagerdquo like beauty is in the eye of the beholder thus there exist a spectrum of images of shipping

bull The image of the industry shapes the business and legislative environment and our ability to attract resources

SHIPPINGrsquoS IMAGE

bull The image of the industry is created by the performance of the industry players (environmental social responsibility customer satisfactionhellip)

bull The image of the industry may also be influenced (or reinforced) by the approach actions and comments of the media (specialised and general) politicians regulators and helliphelliphelliphelliphellip

SHIP STAFF

Frequentlybull Treated as second class citizensbull Criminalised after accidentsbull Pressured by terminals charterers and othersbull Subjected to unnecessary number of ship inspectionsbull Provided with inadequate manuals equipment and cargo informationbull Flooded by a tsunami of paperworkbull Suffer from regulations developed without recognition of the

ramificationsbull Suffer excessive fatiguebull Morehelliphelliphelliphelliphelliphellipbull Owners actions includebull 10487081048708 Better accommodation standards and home communicationsbull 10487081048708 Commitments to (lifetime) education and trainingbull 10487081048708 Welfare packages

SHIP STAFF

Owners actions includebull Better accommodation standards

and home communicationsbull Commitments to (lifetime)

education and trainingbull Welfare packages

SHIP STAFF

bull In recent times the attitude of the Ratings are seen to be more positive than those of the Officers on board Indian flag ships

Maritime Administration

We appreciate and are grateful to our Govt forndash Granting short term dispensations to SMD on bulk

carriersndash Permitting NWKO(NCV) officers to sail on coastal vessels

including tankersndash Revising SMD thereby rationalizing manning on NCVOff

ndash Shore Fleetndash Reducing sea time requirements of cadets on cadet training

ships and introduction of graduate and NCV cadet schemes for ratings

ndash Tirelessly assisting us sail our vessels without any hesitation at even odd hours of the day

Maritime Administration

bull Areas of Concern -ndash Administration could not keep pace with the growth of

Indian Shipping and also could not adapt with the changing scenario of the requirement of customers of the industry

ndash Examination process ndash long and lengthy It is observed that around 2000 TNOCs have joined every year since introduction of IGNOU ndash DGS Scheme in 2004 However passing rate of second mate COC holders less than 25 per annum

Maritime Administrationbull Actions Requested -

ndash Full sea time for TNOCs for a period of Six months while serving on Off ndash Shore Research vessels

ndash Outsourcing Junior level competency examinations such as 2M FG Class IV etc

ndash Review process time for issuance of certificates after completion of examinations

ndash Expedite documentation for endorsements and revalidationsndash MMD Sight test may be conducted by a qualified ophthalmologist ndash Overcome shortage of Surveyors It is understood 50 of the

vacancies are lying vacant or are on ad hoc appointments

Concluding Remarks

bull With changing aspirations of the young population in a growing economy seafaring is not the most sought after career choice particularly for the urban youth

bull Indian shipping industryrsquos grand plans to acquire tonnage faces severe shortage problem

bull Short term solution ndash rationalization in taxation SMD allowing foreign officers etc

bull Long term solution ndash As listed in earlier slides

THANK YOU

• Reasons for Shortage
• Dangers of Inadequacy in Manpower
• Working Indian Seafarers
• Measures to address shortage of officers
• Steps taken by Indian Companies

Reasons for Shortage

bull Wagescost to Indian companies is similar compared with foreign flag ndash Indian companies lose skilled manpower due to differential ldquoPersonal Income Taxrdquo

bull Recruitment of foreign nationals on Indian ships permitted selectively by Administration However feasibility almost NIL due to various clearances

bull Indian Nationals holding Foreign Certificates from Australia Singapore Canada Hongkong NewZealand Sri Lanka NOT RECOGNIZED by Indian Government

bull Lengthy Fatigue prodded Exam process forces them to go to other countries or even make a career change

Dangers of Inadequacy in Manpower

bull Increased onboard accidentsincidents

bull Higher detentions by PSC authorities

bull Oil major approval failures on account of non-compliance of experienceage matrix

bull Reflection on reputation of companyflag administration

Working Indian Seafarers bull India is the 6th largest manpower supplying country in the world

bull The estimated seafaring population is as under

bull India is constantly widening the base to sustain its position as one of the largest manpower supplying country

Category Indian flag vessels

Foreign flag vessels

Total

Officers 8900 18000 26900

Ratings 21000 34000 55000

Total 29900 52000 81900

Seafarers ndash Indian Scenariobull Safe Manning Requirement

Nautical Side Engg Side

Master 1 Chief Engr 1

Mate 1 Second Engr 1

2nd Mate 2 3rd 4th Engr 2

Rating Nav Watch 3 Eng Watch Rating 3

Deck Crew 3

Cook 1

bull Govt support sought forndash Faster and easier clearance procedure for recruitment of foreign officersndash Officers holding COC issued by Singapore Australia etc be permitted to sail on Indian shipsndash Reduction of sailing time for cadetsndash Reduction in Safe Manning Requirement in line with other Flags Presently short term dispensation for

reduction in MSMD permitted

Basic Changes that need to be introduced

bull Promote shipping as a long term career

bull Tap the length and breadth of the Country

bull Create more awareness about seafaring

bull Resolving Shippingrsquos Image Crisis

bull Rationalization of seafarersrsquo taxation

bull SMD in line with the international norms

bull Sympathetic view of industry demands

Measures to address shortage of officers

Allow Indian ship owners to recruit Indian Nationals holding Foreign CertificatesCompulsory Service for Indian officers for 3 years on Indian ships who have received on-board training on our shipsUnder Tonnage Tax Regime trainees trained on Indian Flag Vessel obliged to serve tonnage tax company for 3 years Sea Time after certification Administration under Gazette Notification obliged to devise mechanism to ensure compliance by trainees No procedure yet in placeRationalisation of manning scales in line with international normsIncrease on-board training slots on foreign flag ships employing Indian officers Stem the drift of officers from Indian ships to foreign ships by removing Tax discrimination

Steps taken by Indian Companies

bull Wages at par with foreign companies ndash Grossing up salaries to take care of the tax burdenndash Net result ndash Higher CTC for Indian companies

bull Indian Shipping Companies have increased ship board training berths A leading Indian shipping company has converted five vessels as cadet training vessels

bull Social security benefits at par with foreign cosbull Extra resource allocation towards trainingbull Publicity campaignsbull Incorporating latest HRM techniques for better

understanding of the needs and problems

SHIPPINGrsquoS IMAGE

bull What is it bull Why is it important bull How is it created bull Who is responsible bull What can we do about it bull

A FEW PERSONAL OBSERVATIONS

bull ldquoImagerdquo like beauty is in the eye of the beholder thus there exist a spectrum of images of shipping

bull The image of the industry shapes the business and legislative environment and our ability to attract resources

SHIPPINGrsquoS IMAGE

bull The image of the industry is created by the performance of the industry players (environmental social responsibility customer satisfactionhellip)

bull The image of the industry may also be influenced (or reinforced) by the approach actions and comments of the media (specialised and general) politicians regulators and helliphelliphelliphelliphellip

SHIP STAFF

Frequentlybull Treated as second class citizensbull Criminalised after accidentsbull Pressured by terminals charterers and othersbull Subjected to unnecessary number of ship inspectionsbull Provided with inadequate manuals equipment and cargo informationbull Flooded by a tsunami of paperworkbull Suffer from regulations developed without recognition of the

ramificationsbull Suffer excessive fatiguebull Morehelliphelliphelliphelliphelliphellipbull Owners actions includebull 10487081048708 Better accommodation standards and home communicationsbull 10487081048708 Commitments to (lifetime) education and trainingbull 10487081048708 Welfare packages

SHIP STAFF

Owners actions includebull Better accommodation standards

and home communicationsbull Commitments to (lifetime)

education and trainingbull Welfare packages

SHIP STAFF

bull In recent times the attitude of the Ratings are seen to be more positive than those of the Officers on board Indian flag ships

Maritime Administration

We appreciate and are grateful to our Govt forndash Granting short term dispensations to SMD on bulk

carriersndash Permitting NWKO(NCV) officers to sail on coastal vessels

including tankersndash Revising SMD thereby rationalizing manning on NCVOff

ndash Shore Fleetndash Reducing sea time requirements of cadets on cadet training

ships and introduction of graduate and NCV cadet schemes for ratings

ndash Tirelessly assisting us sail our vessels without any hesitation at even odd hours of the day

Maritime Administration

bull Areas of Concern -ndash Administration could not keep pace with the growth of

Indian Shipping and also could not adapt with the changing scenario of the requirement of customers of the industry

ndash Examination process ndash long and lengthy It is observed that around 2000 TNOCs have joined every year since introduction of IGNOU ndash DGS Scheme in 2004 However passing rate of second mate COC holders less than 25 per annum

Maritime Administrationbull Actions Requested -

ndash Full sea time for TNOCs for a period of Six months while serving on Off ndash Shore Research vessels

ndash Outsourcing Junior level competency examinations such as 2M FG Class IV etc

ndash Review process time for issuance of certificates after completion of examinations

ndash Expedite documentation for endorsements and revalidationsndash MMD Sight test may be conducted by a qualified ophthalmologist ndash Overcome shortage of Surveyors It is understood 50 of the

vacancies are lying vacant or are on ad hoc appointments

Concluding Remarks

bull With changing aspirations of the young population in a growing economy seafaring is not the most sought after career choice particularly for the urban youth

bull Indian shipping industryrsquos grand plans to acquire tonnage faces severe shortage problem

bull Short term solution ndash rationalization in taxation SMD allowing foreign officers etc

bull Long term solution ndash As listed in earlier slides

THANK YOU

• Reasons for Shortage
• Dangers of Inadequacy in Manpower
• Working Indian Seafarers
• Measures to address shortage of officers
• Steps taken by Indian Companies

Dangers of Inadequacy in Manpower

bull Increased onboard accidentsincidents

bull Higher detentions by PSC authorities

bull Oil major approval failures on account of non-compliance of experienceage matrix

bull Reflection on reputation of companyflag administration

Working Indian Seafarers bull India is the 6th largest manpower supplying country in the world

bull The estimated seafaring population is as under

bull India is constantly widening the base to sustain its position as one of the largest manpower supplying country

Category Indian flag vessels

Foreign flag vessels

Total

Officers 8900 18000 26900

Ratings 21000 34000 55000

Total 29900 52000 81900

Seafarers ndash Indian Scenariobull Safe Manning Requirement

Nautical Side Engg Side

Master 1 Chief Engr 1

Mate 1 Second Engr 1

2nd Mate 2 3rd 4th Engr 2

Rating Nav Watch 3 Eng Watch Rating 3

Deck Crew 3

Cook 1

bull Govt support sought forndash Faster and easier clearance procedure for recruitment of foreign officersndash Officers holding COC issued by Singapore Australia etc be permitted to sail on Indian shipsndash Reduction of sailing time for cadetsndash Reduction in Safe Manning Requirement in line with other Flags Presently short term dispensation for

reduction in MSMD permitted

Basic Changes that need to be introduced

bull Promote shipping as a long term career

bull Tap the length and breadth of the Country

bull Create more awareness about seafaring

bull Resolving Shippingrsquos Image Crisis

bull Rationalization of seafarersrsquo taxation

bull SMD in line with the international norms

bull Sympathetic view of industry demands

Measures to address shortage of officers

Allow Indian ship owners to recruit Indian Nationals holding Foreign CertificatesCompulsory Service for Indian officers for 3 years on Indian ships who have received on-board training on our shipsUnder Tonnage Tax Regime trainees trained on Indian Flag Vessel obliged to serve tonnage tax company for 3 years Sea Time after certification Administration under Gazette Notification obliged to devise mechanism to ensure compliance by trainees No procedure yet in placeRationalisation of manning scales in line with international normsIncrease on-board training slots on foreign flag ships employing Indian officers Stem the drift of officers from Indian ships to foreign ships by removing Tax discrimination

Steps taken by Indian Companies

bull Wages at par with foreign companies ndash Grossing up salaries to take care of the tax burdenndash Net result ndash Higher CTC for Indian companies

bull Indian Shipping Companies have increased ship board training berths A leading Indian shipping company has converted five vessels as cadet training vessels

bull Social security benefits at par with foreign cosbull Extra resource allocation towards trainingbull Publicity campaignsbull Incorporating latest HRM techniques for better

understanding of the needs and problems

SHIPPINGrsquoS IMAGE

bull What is it bull Why is it important bull How is it created bull Who is responsible bull What can we do about it bull

A FEW PERSONAL OBSERVATIONS

bull ldquoImagerdquo like beauty is in the eye of the beholder thus there exist a spectrum of images of shipping

bull The image of the industry shapes the business and legislative environment and our ability to attract resources

SHIPPINGrsquoS IMAGE

bull The image of the industry is created by the performance of the industry players (environmental social responsibility customer satisfactionhellip)

bull The image of the industry may also be influenced (or reinforced) by the approach actions and comments of the media (specialised and general) politicians regulators and helliphelliphelliphelliphellip

SHIP STAFF

Frequentlybull Treated as second class citizensbull Criminalised after accidentsbull Pressured by terminals charterers and othersbull Subjected to unnecessary number of ship inspectionsbull Provided with inadequate manuals equipment and cargo informationbull Flooded by a tsunami of paperworkbull Suffer from regulations developed without recognition of the

ramificationsbull Suffer excessive fatiguebull Morehelliphelliphelliphelliphelliphellipbull Owners actions includebull 10487081048708 Better accommodation standards and home communicationsbull 10487081048708 Commitments to (lifetime) education and trainingbull 10487081048708 Welfare packages

SHIP STAFF

Owners actions includebull Better accommodation standards

and home communicationsbull Commitments to (lifetime)

education and trainingbull Welfare packages

SHIP STAFF

bull In recent times the attitude of the Ratings are seen to be more positive than those of the Officers on board Indian flag ships

Maritime Administration

We appreciate and are grateful to our Govt forndash Granting short term dispensations to SMD on bulk

carriersndash Permitting NWKO(NCV) officers to sail on coastal vessels

including tankersndash Revising SMD thereby rationalizing manning on NCVOff

ndash Shore Fleetndash Reducing sea time requirements of cadets on cadet training

ships and introduction of graduate and NCV cadet schemes for ratings

ndash Tirelessly assisting us sail our vessels without any hesitation at even odd hours of the day

Maritime Administration

bull Areas of Concern -ndash Administration could not keep pace with the growth of

Indian Shipping and also could not adapt with the changing scenario of the requirement of customers of the industry

ndash Examination process ndash long and lengthy It is observed that around 2000 TNOCs have joined every year since introduction of IGNOU ndash DGS Scheme in 2004 However passing rate of second mate COC holders less than 25 per annum

Maritime Administrationbull Actions Requested -

ndash Full sea time for TNOCs for a period of Six months while serving on Off ndash Shore Research vessels

ndash Outsourcing Junior level competency examinations such as 2M FG Class IV etc

ndash Review process time for issuance of certificates after completion of examinations

ndash Expedite documentation for endorsements and revalidationsndash MMD Sight test may be conducted by a qualified ophthalmologist ndash Overcome shortage of Surveyors It is understood 50 of the

vacancies are lying vacant or are on ad hoc appointments

Concluding Remarks

bull With changing aspirations of the young population in a growing economy seafaring is not the most sought after career choice particularly for the urban youth

bull Indian shipping industryrsquos grand plans to acquire tonnage faces severe shortage problem

bull Short term solution ndash rationalization in taxation SMD allowing foreign officers etc

bull Long term solution ndash As listed in earlier slides

THANK YOU

• Reasons for Shortage
• Dangers of Inadequacy in Manpower
• Working Indian Seafarers
• Measures to address shortage of officers
• Steps taken by Indian Companies

Working Indian Seafarers bull India is the 6th largest manpower supplying country in the world

bull The estimated seafaring population is as under

bull India is constantly widening the base to sustain its position as one of the largest manpower supplying country

Category Indian flag vessels

Foreign flag vessels

Total

Officers 8900 18000 26900

Ratings 21000 34000 55000

Total 29900 52000 81900

Seafarers ndash Indian Scenariobull Safe Manning Requirement

Nautical Side Engg Side

Master 1 Chief Engr 1

Mate 1 Second Engr 1

2nd Mate 2 3rd 4th Engr 2

Rating Nav Watch 3 Eng Watch Rating 3

Deck Crew 3

Cook 1

bull Govt support sought forndash Faster and easier clearance procedure for recruitment of foreign officersndash Officers holding COC issued by Singapore Australia etc be permitted to sail on Indian shipsndash Reduction of sailing time for cadetsndash Reduction in Safe Manning Requirement in line with other Flags Presently short term dispensation for

reduction in MSMD permitted

Basic Changes that need to be introduced

bull Promote shipping as a long term career

bull Tap the length and breadth of the Country

bull Create more awareness about seafaring

bull Resolving Shippingrsquos Image Crisis

bull Rationalization of seafarersrsquo taxation

bull SMD in line with the international norms

bull Sympathetic view of industry demands

Measures to address shortage of officers

Allow Indian ship owners to recruit Indian Nationals holding Foreign CertificatesCompulsory Service for Indian officers for 3 years on Indian ships who have received on-board training on our shipsUnder Tonnage Tax Regime trainees trained on Indian Flag Vessel obliged to serve tonnage tax company for 3 years Sea Time after certification Administration under Gazette Notification obliged to devise mechanism to ensure compliance by trainees No procedure yet in placeRationalisation of manning scales in line with international normsIncrease on-board training slots on foreign flag ships employing Indian officers Stem the drift of officers from Indian ships to foreign ships by removing Tax discrimination

Steps taken by Indian Companies

bull Wages at par with foreign companies ndash Grossing up salaries to take care of the tax burdenndash Net result ndash Higher CTC for Indian companies

bull Indian Shipping Companies have increased ship board training berths A leading Indian shipping company has converted five vessels as cadet training vessels

bull Social security benefits at par with foreign cosbull Extra resource allocation towards trainingbull Publicity campaignsbull Incorporating latest HRM techniques for better

understanding of the needs and problems

SHIPPINGrsquoS IMAGE

bull What is it bull Why is it important bull How is it created bull Who is responsible bull What can we do about it bull

A FEW PERSONAL OBSERVATIONS

bull ldquoImagerdquo like beauty is in the eye of the beholder thus there exist a spectrum of images of shipping

bull The image of the industry shapes the business and legislative environment and our ability to attract resources

SHIPPINGrsquoS IMAGE

bull The image of the industry is created by the performance of the industry players (environmental social responsibility customer satisfactionhellip)

bull The image of the industry may also be influenced (or reinforced) by the approach actions and comments of the media (specialised and general) politicians regulators and helliphelliphelliphelliphellip

SHIP STAFF

Frequentlybull Treated as second class citizensbull Criminalised after accidentsbull Pressured by terminals charterers and othersbull Subjected to unnecessary number of ship inspectionsbull Provided with inadequate manuals equipment and cargo informationbull Flooded by a tsunami of paperworkbull Suffer from regulations developed without recognition of the

ramificationsbull Suffer excessive fatiguebull Morehelliphelliphelliphelliphelliphellipbull Owners actions includebull 10487081048708 Better accommodation standards and home communicationsbull 10487081048708 Commitments to (lifetime) education and trainingbull 10487081048708 Welfare packages

SHIP STAFF

Owners actions includebull Better accommodation standards

and home communicationsbull Commitments to (lifetime)

education and trainingbull Welfare packages

SHIP STAFF

bull In recent times the attitude of the Ratings are seen to be more positive than those of the Officers on board Indian flag ships

Maritime Administration

We appreciate and are grateful to our Govt forndash Granting short term dispensations to SMD on bulk

carriersndash Permitting NWKO(NCV) officers to sail on coastal vessels

including tankersndash Revising SMD thereby rationalizing manning on NCVOff

ndash Shore Fleetndash Reducing sea time requirements of cadets on cadet training

ships and introduction of graduate and NCV cadet schemes for ratings

ndash Tirelessly assisting us sail our vessels without any hesitation at even odd hours of the day

Maritime Administration

bull Areas of Concern -ndash Administration could not keep pace with the growth of

Indian Shipping and also could not adapt with the changing scenario of the requirement of customers of the industry

ndash Examination process ndash long and lengthy It is observed that around 2000 TNOCs have joined every year since introduction of IGNOU ndash DGS Scheme in 2004 However passing rate of second mate COC holders less than 25 per annum

Maritime Administrationbull Actions Requested -

ndash Full sea time for TNOCs for a period of Six months while serving on Off ndash Shore Research vessels

ndash Outsourcing Junior level competency examinations such as 2M FG Class IV etc

ndash Review process time for issuance of certificates after completion of examinations

ndash Expedite documentation for endorsements and revalidationsndash MMD Sight test may be conducted by a qualified ophthalmologist ndash Overcome shortage of Surveyors It is understood 50 of the

vacancies are lying vacant or are on ad hoc appointments

Concluding Remarks

bull With changing aspirations of the young population in a growing economy seafaring is not the most sought after career choice particularly for the urban youth

bull Indian shipping industryrsquos grand plans to acquire tonnage faces severe shortage problem

bull Short term solution ndash rationalization in taxation SMD allowing foreign officers etc

bull Long term solution ndash As listed in earlier slides

THANK YOU

• Reasons for Shortage
• Dangers of Inadequacy in Manpower
• Working Indian Seafarers
• Measures to address shortage of officers
• Steps taken by Indian Companies

Seafarers ndash Indian Scenariobull Safe Manning Requirement

Nautical Side Engg Side

Master 1 Chief Engr 1

Mate 1 Second Engr 1

2nd Mate 2 3rd 4th Engr 2

Rating Nav Watch 3 Eng Watch Rating 3

Deck Crew 3

Cook 1

bull Govt support sought forndash Faster and easier clearance procedure for recruitment of foreign officersndash Officers holding COC issued by Singapore Australia etc be permitted to sail on Indian shipsndash Reduction of sailing time for cadetsndash Reduction in Safe Manning Requirement in line with other Flags Presently short term dispensation for

reduction in MSMD permitted

Basic Changes that need to be introduced

bull Promote shipping as a long term career

bull Tap the length and breadth of the Country

bull Create more awareness about seafaring

bull Resolving Shippingrsquos Image Crisis

bull Rationalization of seafarersrsquo taxation

bull SMD in line with the international norms

bull Sympathetic view of industry demands

Measures to address shortage of officers

Allow Indian ship owners to recruit Indian Nationals holding Foreign CertificatesCompulsory Service for Indian officers for 3 years on Indian ships who have received on-board training on our shipsUnder Tonnage Tax Regime trainees trained on Indian Flag Vessel obliged to serve tonnage tax company for 3 years Sea Time after certification Administration under Gazette Notification obliged to devise mechanism to ensure compliance by trainees No procedure yet in placeRationalisation of manning scales in line with international normsIncrease on-board training slots on foreign flag ships employing Indian officers Stem the drift of officers from Indian ships to foreign ships by removing Tax discrimination

Steps taken by Indian Companies

bull Wages at par with foreign companies ndash Grossing up salaries to take care of the tax burdenndash Net result ndash Higher CTC for Indian companies

bull Indian Shipping Companies have increased ship board training berths A leading Indian shipping company has converted five vessels as cadet training vessels

bull Social security benefits at par with foreign cosbull Extra resource allocation towards trainingbull Publicity campaignsbull Incorporating latest HRM techniques for better

understanding of the needs and problems

SHIPPINGrsquoS IMAGE

bull What is it bull Why is it important bull How is it created bull Who is responsible bull What can we do about it bull

A FEW PERSONAL OBSERVATIONS

bull ldquoImagerdquo like beauty is in the eye of the beholder thus there exist a spectrum of images of shipping

bull The image of the industry shapes the business and legislative environment and our ability to attract resources

SHIPPINGrsquoS IMAGE

bull The image of the industry is created by the performance of the industry players (environmental social responsibility customer satisfactionhellip)

bull The image of the industry may also be influenced (or reinforced) by the approach actions and comments of the media (specialised and general) politicians regulators and helliphelliphelliphelliphellip

SHIP STAFF

Frequentlybull Treated as second class citizensbull Criminalised after accidentsbull Pressured by terminals charterers and othersbull Subjected to unnecessary number of ship inspectionsbull Provided with inadequate manuals equipment and cargo informationbull Flooded by a tsunami of paperworkbull Suffer from regulations developed without recognition of the

ramificationsbull Suffer excessive fatiguebull Morehelliphelliphelliphelliphelliphellipbull Owners actions includebull 10487081048708 Better accommodation standards and home communicationsbull 10487081048708 Commitments to (lifetime) education and trainingbull 10487081048708 Welfare packages

SHIP STAFF

Owners actions includebull Better accommodation standards

and home communicationsbull Commitments to (lifetime)

education and trainingbull Welfare packages

SHIP STAFF

bull In recent times the attitude of the Ratings are seen to be more positive than those of the Officers on board Indian flag ships

Maritime Administration

We appreciate and are grateful to our Govt forndash Granting short term dispensations to SMD on bulk

carriersndash Permitting NWKO(NCV) officers to sail on coastal vessels

including tankersndash Revising SMD thereby rationalizing manning on NCVOff

ndash Shore Fleetndash Reducing sea time requirements of cadets on cadet training

ships and introduction of graduate and NCV cadet schemes for ratings

ndash Tirelessly assisting us sail our vessels without any hesitation at even odd hours of the day

Maritime Administration

bull Areas of Concern -ndash Administration could not keep pace with the growth of

Indian Shipping and also could not adapt with the changing scenario of the requirement of customers of the industry

ndash Examination process ndash long and lengthy It is observed that around 2000 TNOCs have joined every year since introduction of IGNOU ndash DGS Scheme in 2004 However passing rate of second mate COC holders less than 25 per annum

Maritime Administrationbull Actions Requested -

ndash Full sea time for TNOCs for a period of Six months while serving on Off ndash Shore Research vessels

ndash Outsourcing Junior level competency examinations such as 2M FG Class IV etc

ndash Review process time for issuance of certificates after completion of examinations

ndash Expedite documentation for endorsements and revalidationsndash MMD Sight test may be conducted by a qualified ophthalmologist ndash Overcome shortage of Surveyors It is understood 50 of the

vacancies are lying vacant or are on ad hoc appointments

Concluding Remarks

bull With changing aspirations of the young population in a growing economy seafaring is not the most sought after career choice particularly for the urban youth

bull Indian shipping industryrsquos grand plans to acquire tonnage faces severe shortage problem

bull Short term solution ndash rationalization in taxation SMD allowing foreign officers etc

bull Long term solution ndash As listed in earlier slides

THANK YOU

• Reasons for Shortage
• Dangers of Inadequacy in Manpower
• Working Indian Seafarers
• Measures to address shortage of officers
• Steps taken by Indian Companies

Basic Changes that need to be introduced

bull Promote shipping as a long term career

bull Tap the length and breadth of the Country

bull Create more awareness about seafaring

bull Resolving Shippingrsquos Image Crisis

bull Rationalization of seafarersrsquo taxation

bull SMD in line with the international norms

bull Sympathetic view of industry demands

Measures to address shortage of officers

Allow Indian ship owners to recruit Indian Nationals holding Foreign CertificatesCompulsory Service for Indian officers for 3 years on Indian ships who have received on-board training on our shipsUnder Tonnage Tax Regime trainees trained on Indian Flag Vessel obliged to serve tonnage tax company for 3 years Sea Time after certification Administration under Gazette Notification obliged to devise mechanism to ensure compliance by trainees No procedure yet in placeRationalisation of manning scales in line with international normsIncrease on-board training slots on foreign flag ships employing Indian officers Stem the drift of officers from Indian ships to foreign ships by removing Tax discrimination

Steps taken by Indian Companies

bull Wages at par with foreign companies ndash Grossing up salaries to take care of the tax burdenndash Net result ndash Higher CTC for Indian companies

bull Indian Shipping Companies have increased ship board training berths A leading Indian shipping company has converted five vessels as cadet training vessels

bull Social security benefits at par with foreign cosbull Extra resource allocation towards trainingbull Publicity campaignsbull Incorporating latest HRM techniques for better

understanding of the needs and problems

SHIPPINGrsquoS IMAGE

bull What is it bull Why is it important bull How is it created bull Who is responsible bull What can we do about it bull

A FEW PERSONAL OBSERVATIONS

bull ldquoImagerdquo like beauty is in the eye of the beholder thus there exist a spectrum of images of shipping

bull The image of the industry shapes the business and legislative environment and our ability to attract resources

SHIPPINGrsquoS IMAGE

bull The image of the industry is created by the performance of the industry players (environmental social responsibility customer satisfactionhellip)

bull The image of the industry may also be influenced (or reinforced) by the approach actions and comments of the media (specialised and general) politicians regulators and helliphelliphelliphelliphellip

SHIP STAFF

Frequentlybull Treated as second class citizensbull Criminalised after accidentsbull Pressured by terminals charterers and othersbull Subjected to unnecessary number of ship inspectionsbull Provided with inadequate manuals equipment and cargo informationbull Flooded by a tsunami of paperworkbull Suffer from regulations developed without recognition of the

ramificationsbull Suffer excessive fatiguebull Morehelliphelliphelliphelliphelliphellipbull Owners actions includebull 10487081048708 Better accommodation standards and home communicationsbull 10487081048708 Commitments to (lifetime) education and trainingbull 10487081048708 Welfare packages

SHIP STAFF

Owners actions includebull Better accommodation standards

and home communicationsbull Commitments to (lifetime)

education and trainingbull Welfare packages

SHIP STAFF

bull In recent times the attitude of the Ratings are seen to be more positive than those of the Officers on board Indian flag ships

Maritime Administration

We appreciate and are grateful to our Govt forndash Granting short term dispensations to SMD on bulk

carriersndash Permitting NWKO(NCV) officers to sail on coastal vessels

including tankersndash Revising SMD thereby rationalizing manning on NCVOff

ndash Shore Fleetndash Reducing sea time requirements of cadets on cadet training

ships and introduction of graduate and NCV cadet schemes for ratings

ndash Tirelessly assisting us sail our vessels without any hesitation at even odd hours of the day

Maritime Administration

bull Areas of Concern -ndash Administration could not keep pace with the growth of

Indian Shipping and also could not adapt with the changing scenario of the requirement of customers of the industry

ndash Examination process ndash long and lengthy It is observed that around 2000 TNOCs have joined every year since introduction of IGNOU ndash DGS Scheme in 2004 However passing rate of second mate COC holders less than 25 per annum

Maritime Administrationbull Actions Requested -

ndash Full sea time for TNOCs for a period of Six months while serving on Off ndash Shore Research vessels

ndash Outsourcing Junior level competency examinations such as 2M FG Class IV etc

ndash Review process time for issuance of certificates after completion of examinations

ndash Expedite documentation for endorsements and revalidationsndash MMD Sight test may be conducted by a qualified ophthalmologist ndash Overcome shortage of Surveyors It is understood 50 of the

vacancies are lying vacant or are on ad hoc appointments

Concluding Remarks

bull With changing aspirations of the young population in a growing economy seafaring is not the most sought after career choice particularly for the urban youth

bull Indian shipping industryrsquos grand plans to acquire tonnage faces severe shortage problem

bull Short term solution ndash rationalization in taxation SMD allowing foreign officers etc

bull Long term solution ndash As listed in earlier slides

THANK YOU

• Reasons for Shortage
• Dangers of Inadequacy in Manpower
• Working Indian Seafarers
• Measures to address shortage of officers
• Steps taken by Indian Companies

Measures to address shortage of officers

Allow Indian ship owners to recruit Indian Nationals holding Foreign CertificatesCompulsory Service for Indian officers for 3 years on Indian ships who have received on-board training on our shipsUnder Tonnage Tax Regime trainees trained on Indian Flag Vessel obliged to serve tonnage tax company for 3 years Sea Time after certification Administration under Gazette Notification obliged to devise mechanism to ensure compliance by trainees No procedure yet in placeRationalisation of manning scales in line with international normsIncrease on-board training slots on foreign flag ships employing Indian officers Stem the drift of officers from Indian ships to foreign ships by removing Tax discrimination

Steps taken by Indian Companies

bull Wages at par with foreign companies ndash Grossing up salaries to take care of the tax burdenndash Net result ndash Higher CTC for Indian companies

bull Indian Shipping Companies have increased ship board training berths A leading Indian shipping company has converted five vessels as cadet training vessels

bull Social security benefits at par with foreign cosbull Extra resource allocation towards trainingbull Publicity campaignsbull Incorporating latest HRM techniques for better

understanding of the needs and problems

SHIPPINGrsquoS IMAGE

bull What is it bull Why is it important bull How is it created bull Who is responsible bull What can we do about it bull

A FEW PERSONAL OBSERVATIONS

bull ldquoImagerdquo like beauty is in the eye of the beholder thus there exist a spectrum of images of shipping

bull The image of the industry shapes the business and legislative environment and our ability to attract resources

SHIPPINGrsquoS IMAGE

bull The image of the industry is created by the performance of the industry players (environmental social responsibility customer satisfactionhellip)

bull The image of the industry may also be influenced (or reinforced) by the approach actions and comments of the media (specialised and general) politicians regulators and helliphelliphelliphelliphellip

SHIP STAFF

Frequentlybull Treated as second class citizensbull Criminalised after accidentsbull Pressured by terminals charterers and othersbull Subjected to unnecessary number of ship inspectionsbull Provided with inadequate manuals equipment and cargo informationbull Flooded by a tsunami of paperworkbull Suffer from regulations developed without recognition of the

ramificationsbull Suffer excessive fatiguebull Morehelliphelliphelliphelliphelliphellipbull Owners actions includebull 10487081048708 Better accommodation standards and home communicationsbull 10487081048708 Commitments to (lifetime) education and trainingbull 10487081048708 Welfare packages

SHIP STAFF

Owners actions includebull Better accommodation standards

and home communicationsbull Commitments to (lifetime)

education and trainingbull Welfare packages

SHIP STAFF

bull In recent times the attitude of the Ratings are seen to be more positive than those of the Officers on board Indian flag ships

Maritime Administration

We appreciate and are grateful to our Govt forndash Granting short term dispensations to SMD on bulk

carriersndash Permitting NWKO(NCV) officers to sail on coastal vessels

including tankersndash Revising SMD thereby rationalizing manning on NCVOff

ndash Shore Fleetndash Reducing sea time requirements of cadets on cadet training

ships and introduction of graduate and NCV cadet schemes for ratings

ndash Tirelessly assisting us sail our vessels without any hesitation at even odd hours of the day

Maritime Administration

bull Areas of Concern -ndash Administration could not keep pace with the growth of

Indian Shipping and also could not adapt with the changing scenario of the requirement of customers of the industry

ndash Examination process ndash long and lengthy It is observed that around 2000 TNOCs have joined every year since introduction of IGNOU ndash DGS Scheme in 2004 However passing rate of second mate COC holders less than 25 per annum

Maritime Administrationbull Actions Requested -

ndash Full sea time for TNOCs for a period of Six months while serving on Off ndash Shore Research vessels

ndash Outsourcing Junior level competency examinations such as 2M FG Class IV etc

ndash Review process time for issuance of certificates after completion of examinations

ndash Expedite documentation for endorsements and revalidationsndash MMD Sight test may be conducted by a qualified ophthalmologist ndash Overcome shortage of Surveyors It is understood 50 of the

vacancies are lying vacant or are on ad hoc appointments

Concluding Remarks

bull With changing aspirations of the young population in a growing economy seafaring is not the most sought after career choice particularly for the urban youth

bull Indian shipping industryrsquos grand plans to acquire tonnage faces severe shortage problem

bull Short term solution ndash rationalization in taxation SMD allowing foreign officers etc

bull Long term solution ndash As listed in earlier slides

THANK YOU

• Reasons for Shortage
• Dangers of Inadequacy in Manpower
• Working Indian Seafarers
• Measures to address shortage of officers
• Steps taken by Indian Companies

Steps taken by Indian Companies

bull Wages at par with foreign companies ndash Grossing up salaries to take care of the tax burdenndash Net result ndash Higher CTC for Indian companies

bull Indian Shipping Companies have increased ship board training berths A leading Indian shipping company has converted five vessels as cadet training vessels

bull Social security benefits at par with foreign cosbull Extra resource allocation towards trainingbull Publicity campaignsbull Incorporating latest HRM techniques for better

understanding of the needs and problems

SHIPPINGrsquoS IMAGE

bull What is it bull Why is it important bull How is it created bull Who is responsible bull What can we do about it bull

A FEW PERSONAL OBSERVATIONS

bull ldquoImagerdquo like beauty is in the eye of the beholder thus there exist a spectrum of images of shipping

bull The image of the industry shapes the business and legislative environment and our ability to attract resources

SHIPPINGrsquoS IMAGE

bull The image of the industry is created by the performance of the industry players (environmental social responsibility customer satisfactionhellip)

bull The image of the industry may also be influenced (or reinforced) by the approach actions and comments of the media (specialised and general) politicians regulators and helliphelliphelliphelliphellip

SHIP STAFF

Frequentlybull Treated as second class citizensbull Criminalised after accidentsbull Pressured by terminals charterers and othersbull Subjected to unnecessary number of ship inspectionsbull Provided with inadequate manuals equipment and cargo informationbull Flooded by a tsunami of paperworkbull Suffer from regulations developed without recognition of the

ramificationsbull Suffer excessive fatiguebull Morehelliphelliphelliphelliphelliphellipbull Owners actions includebull 10487081048708 Better accommodation standards and home communicationsbull 10487081048708 Commitments to (lifetime) education and trainingbull 10487081048708 Welfare packages

SHIP STAFF

Owners actions includebull Better accommodation standards

and home communicationsbull Commitments to (lifetime)

education and trainingbull Welfare packages

SHIP STAFF

bull In recent times the attitude of the Ratings are seen to be more positive than those of the Officers on board Indian flag ships

Maritime Administration

We appreciate and are grateful to our Govt forndash Granting short term dispensations to SMD on bulk

carriersndash Permitting NWKO(NCV) officers to sail on coastal vessels

including tankersndash Revising SMD thereby rationalizing manning on NCVOff

ndash Shore Fleetndash Reducing sea time requirements of cadets on cadet training

ships and introduction of graduate and NCV cadet schemes for ratings

ndash Tirelessly assisting us sail our vessels without any hesitation at even odd hours of the day

Maritime Administration

bull Areas of Concern -ndash Administration could not keep pace with the growth of

Indian Shipping and also could not adapt with the changing scenario of the requirement of customers of the industry

ndash Examination process ndash long and lengthy It is observed that around 2000 TNOCs have joined every year since introduction of IGNOU ndash DGS Scheme in 2004 However passing rate of second mate COC holders less than 25 per annum

Maritime Administrationbull Actions Requested -

ndash Full sea time for TNOCs for a period of Six months while serving on Off ndash Shore Research vessels

ndash Outsourcing Junior level competency examinations such as 2M FG Class IV etc

ndash Review process time for issuance of certificates after completion of examinations

ndash Expedite documentation for endorsements and revalidationsndash MMD Sight test may be conducted by a qualified ophthalmologist ndash Overcome shortage of Surveyors It is understood 50 of the

vacancies are lying vacant or are on ad hoc appointments

Concluding Remarks

bull With changing aspirations of the young population in a growing economy seafaring is not the most sought after career choice particularly for the urban youth

bull Indian shipping industryrsquos grand plans to acquire tonnage faces severe shortage problem

bull Short term solution ndash rationalization in taxation SMD allowing foreign officers etc

bull Long term solution ndash As listed in earlier slides

THANK YOU

• Reasons for Shortage
• Dangers of Inadequacy in Manpower
• Working Indian Seafarers
• Measures to address shortage of officers
• Steps taken by Indian Companies

SHIPPINGrsquoS IMAGE

bull What is it bull Why is it important bull How is it created bull Who is responsible bull What can we do about it bull

A FEW PERSONAL OBSERVATIONS

bull ldquoImagerdquo like beauty is in the eye of the beholder thus there exist a spectrum of images of shipping

bull The image of the industry shapes the business and legislative environment and our ability to attract resources

SHIPPINGrsquoS IMAGE

bull The image of the industry is created by the performance of the industry players (environmental social responsibility customer satisfactionhellip)

bull The image of the industry may also be influenced (or reinforced) by the approach actions and comments of the media (specialised and general) politicians regulators and helliphelliphelliphelliphellip

SHIP STAFF

Frequentlybull Treated as second class citizensbull Criminalised after accidentsbull Pressured by terminals charterers and othersbull Subjected to unnecessary number of ship inspectionsbull Provided with inadequate manuals equipment and cargo informationbull Flooded by a tsunami of paperworkbull Suffer from regulations developed without recognition of the

ramificationsbull Suffer excessive fatiguebull Morehelliphelliphelliphelliphelliphellipbull Owners actions includebull 10487081048708 Better accommodation standards and home communicationsbull 10487081048708 Commitments to (lifetime) education and trainingbull 10487081048708 Welfare packages

SHIP STAFF

Owners actions includebull Better accommodation standards

and home communicationsbull Commitments to (lifetime)

education and trainingbull Welfare packages

SHIP STAFF

bull In recent times the attitude of the Ratings are seen to be more positive than those of the Officers on board Indian flag ships

Maritime Administration

We appreciate and are grateful to our Govt forndash Granting short term dispensations to SMD on bulk

carriersndash Permitting NWKO(NCV) officers to sail on coastal vessels

including tankersndash Revising SMD thereby rationalizing manning on NCVOff

ndash Shore Fleetndash Reducing sea time requirements of cadets on cadet training

ships and introduction of graduate and NCV cadet schemes for ratings

ndash Tirelessly assisting us sail our vessels without any hesitation at even odd hours of the day

Maritime Administration

bull Areas of Concern -ndash Administration could not keep pace with the growth of

Indian Shipping and also could not adapt with the changing scenario of the requirement of customers of the industry

ndash Examination process ndash long and lengthy It is observed that around 2000 TNOCs have joined every year since introduction of IGNOU ndash DGS Scheme in 2004 However passing rate of second mate COC holders less than 25 per annum

Maritime Administrationbull Actions Requested -

ndash Full sea time for TNOCs for a period of Six months while serving on Off ndash Shore Research vessels

ndash Outsourcing Junior level competency examinations such as 2M FG Class IV etc

ndash Review process time for issuance of certificates after completion of examinations

ndash Expedite documentation for endorsements and revalidationsndash MMD Sight test may be conducted by a qualified ophthalmologist ndash Overcome shortage of Surveyors It is understood 50 of the

vacancies are lying vacant or are on ad hoc appointments

Concluding Remarks

bull With changing aspirations of the young population in a growing economy seafaring is not the most sought after career choice particularly for the urban youth

bull Indian shipping industryrsquos grand plans to acquire tonnage faces severe shortage problem

bull Short term solution ndash rationalization in taxation SMD allowing foreign officers etc

bull Long term solution ndash As listed in earlier slides

THANK YOU

• Reasons for Shortage
• Dangers of Inadequacy in Manpower
• Working Indian Seafarers
• Measures to address shortage of officers
• Steps taken by Indian Companies

A FEW PERSONAL OBSERVATIONS

bull ldquoImagerdquo like beauty is in the eye of the beholder thus there exist a spectrum of images of shipping

bull The image of the industry shapes the business and legislative environment and our ability to attract resources

SHIPPINGrsquoS IMAGE

bull The image of the industry is created by the performance of the industry players (environmental social responsibility customer satisfactionhellip)

bull The image of the industry may also be influenced (or reinforced) by the approach actions and comments of the media (specialised and general) politicians regulators and helliphelliphelliphelliphellip

SHIP STAFF

Frequentlybull Treated as second class citizensbull Criminalised after accidentsbull Pressured by terminals charterers and othersbull Subjected to unnecessary number of ship inspectionsbull Provided with inadequate manuals equipment and cargo informationbull Flooded by a tsunami of paperworkbull Suffer from regulations developed without recognition of the

ramificationsbull Suffer excessive fatiguebull Morehelliphelliphelliphelliphelliphellipbull Owners actions includebull 10487081048708 Better accommodation standards and home communicationsbull 10487081048708 Commitments to (lifetime) education and trainingbull 10487081048708 Welfare packages

SHIP STAFF

Owners actions includebull Better accommodation standards

and home communicationsbull Commitments to (lifetime)

education and trainingbull Welfare packages

SHIP STAFF

bull In recent times the attitude of the Ratings are seen to be more positive than those of the Officers on board Indian flag ships

Maritime Administration

We appreciate and are grateful to our Govt forndash Granting short term dispensations to SMD on bulk

carriersndash Permitting NWKO(NCV) officers to sail on coastal vessels

including tankersndash Revising SMD thereby rationalizing manning on NCVOff

ndash Shore Fleetndash Reducing sea time requirements of cadets on cadet training

ships and introduction of graduate and NCV cadet schemes for ratings

ndash Tirelessly assisting us sail our vessels without any hesitation at even odd hours of the day

Maritime Administration

bull Areas of Concern -ndash Administration could not keep pace with the growth of

Indian Shipping and also could not adapt with the changing scenario of the requirement of customers of the industry

ndash Examination process ndash long and lengthy It is observed that around 2000 TNOCs have joined every year since introduction of IGNOU ndash DGS Scheme in 2004 However passing rate of second mate COC holders less than 25 per annum

Maritime Administrationbull Actions Requested -

ndash Full sea time for TNOCs for a period of Six months while serving on Off ndash Shore Research vessels

ndash Outsourcing Junior level competency examinations such as 2M FG Class IV etc

ndash Review process time for issuance of certificates after completion of examinations

ndash Expedite documentation for endorsements and revalidationsndash MMD Sight test may be conducted by a qualified ophthalmologist ndash Overcome shortage of Surveyors It is understood 50 of the

vacancies are lying vacant or are on ad hoc appointments

Concluding Remarks

bull With changing aspirations of the young population in a growing economy seafaring is not the most sought after career choice particularly for the urban youth

bull Indian shipping industryrsquos grand plans to acquire tonnage faces severe shortage problem

bull Short term solution ndash rationalization in taxation SMD allowing foreign officers etc

bull Long term solution ndash As listed in earlier slides

THANK YOU

• Reasons for Shortage
• Dangers of Inadequacy in Manpower
• Working Indian Seafarers
• Measures to address shortage of officers
• Steps taken by Indian Companies

SHIPPINGrsquoS IMAGE

bull The image of the industry is created by the performance of the industry players (environmental social responsibility customer satisfactionhellip)

bull The image of the industry may also be influenced (or reinforced) by the approach actions and comments of the media (specialised and general) politicians regulators and helliphelliphelliphelliphellip

SHIP STAFF

Frequentlybull Treated as second class citizensbull Criminalised after accidentsbull Pressured by terminals charterers and othersbull Subjected to unnecessary number of ship inspectionsbull Provided with inadequate manuals equipment and cargo informationbull Flooded by a tsunami of paperworkbull Suffer from regulations developed without recognition of the

ramificationsbull Suffer excessive fatiguebull Morehelliphelliphelliphelliphelliphellipbull Owners actions includebull 10487081048708 Better accommodation standards and home communicationsbull 10487081048708 Commitments to (lifetime) education and trainingbull 10487081048708 Welfare packages

SHIP STAFF

Owners actions includebull Better accommodation standards

and home communicationsbull Commitments to (lifetime)

education and trainingbull Welfare packages

SHIP STAFF

bull In recent times the attitude of the Ratings are seen to be more positive than those of the Officers on board Indian flag ships

Maritime Administration

We appreciate and are grateful to our Govt forndash Granting short term dispensations to SMD on bulk

carriersndash Permitting NWKO(NCV) officers to sail on coastal vessels

including tankersndash Revising SMD thereby rationalizing manning on NCVOff

ndash Shore Fleetndash Reducing sea time requirements of cadets on cadet training

ships and introduction of graduate and NCV cadet schemes for ratings

ndash Tirelessly assisting us sail our vessels without any hesitation at even odd hours of the day

Maritime Administration

bull Areas of Concern -ndash Administration could not keep pace with the growth of

Indian Shipping and also could not adapt with the changing scenario of the requirement of customers of the industry

ndash Examination process ndash long and lengthy It is observed that around 2000 TNOCs have joined every year since introduction of IGNOU ndash DGS Scheme in 2004 However passing rate of second mate COC holders less than 25 per annum

Maritime Administrationbull Actions Requested -

ndash Full sea time for TNOCs for a period of Six months while serving on Off ndash Shore Research vessels

ndash Outsourcing Junior level competency examinations such as 2M FG Class IV etc

ndash Review process time for issuance of certificates after completion of examinations

ndash Expedite documentation for endorsements and revalidationsndash MMD Sight test may be conducted by a qualified ophthalmologist ndash Overcome shortage of Surveyors It is understood 50 of the

vacancies are lying vacant or are on ad hoc appointments

Concluding Remarks

bull With changing aspirations of the young population in a growing economy seafaring is not the most sought after career choice particularly for the urban youth

bull Indian shipping industryrsquos grand plans to acquire tonnage faces severe shortage problem

bull Short term solution ndash rationalization in taxation SMD allowing foreign officers etc

bull Long term solution ndash As listed in earlier slides

THANK YOU

• Reasons for Shortage
• Dangers of Inadequacy in Manpower
• Working Indian Seafarers
• Measures to address shortage of officers
• Steps taken by Indian Companies

SHIP STAFF

Frequentlybull Treated as second class citizensbull Criminalised after accidentsbull Pressured by terminals charterers and othersbull Subjected to unnecessary number of ship inspectionsbull Provided with inadequate manuals equipment and cargo informationbull Flooded by a tsunami of paperworkbull Suffer from regulations developed without recognition of the

ramificationsbull Suffer excessive fatiguebull Morehelliphelliphelliphelliphelliphellipbull Owners actions includebull 10487081048708 Better accommodation standards and home communicationsbull 10487081048708 Commitments to (lifetime) education and trainingbull 10487081048708 Welfare packages

SHIP STAFF

Owners actions includebull Better accommodation standards

and home communicationsbull Commitments to (lifetime)

education and trainingbull Welfare packages

SHIP STAFF

bull In recent times the attitude of the Ratings are seen to be more positive than those of the Officers on board Indian flag ships

Maritime Administration

We appreciate and are grateful to our Govt forndash Granting short term dispensations to SMD on bulk

carriersndash Permitting NWKO(NCV) officers to sail on coastal vessels

including tankersndash Revising SMD thereby rationalizing manning on NCVOff

ndash Shore Fleetndash Reducing sea time requirements of cadets on cadet training

ships and introduction of graduate and NCV cadet schemes for ratings

ndash Tirelessly assisting us sail our vessels without any hesitation at even odd hours of the day

Maritime Administration

bull Areas of Concern -ndash Administration could not keep pace with the growth of

Indian Shipping and also could not adapt with the changing scenario of the requirement of customers of the industry

ndash Examination process ndash long and lengthy It is observed that around 2000 TNOCs have joined every year since introduction of IGNOU ndash DGS Scheme in 2004 However passing rate of second mate COC holders less than 25 per annum

Maritime Administrationbull Actions Requested -

ndash Full sea time for TNOCs for a period of Six months while serving on Off ndash Shore Research vessels

ndash Outsourcing Junior level competency examinations such as 2M FG Class IV etc

ndash Review process time for issuance of certificates after completion of examinations

ndash Expedite documentation for endorsements and revalidationsndash MMD Sight test may be conducted by a qualified ophthalmologist ndash Overcome shortage of Surveyors It is understood 50 of the

vacancies are lying vacant or are on ad hoc appointments

Concluding Remarks

bull With changing aspirations of the young population in a growing economy seafaring is not the most sought after career choice particularly for the urban youth

bull Indian shipping industryrsquos grand plans to acquire tonnage faces severe shortage problem

bull Short term solution ndash rationalization in taxation SMD allowing foreign officers etc

bull Long term solution ndash As listed in earlier slides

THANK YOU

• Reasons for Shortage
• Dangers of Inadequacy in Manpower
• Working Indian Seafarers
• Measures to address shortage of officers
• Steps taken by Indian Companies

SHIP STAFF

Owners actions includebull Better accommodation standards

and home communicationsbull Commitments to (lifetime)

education and trainingbull Welfare packages

SHIP STAFF

bull In recent times the attitude of the Ratings are seen to be more positive than those of the Officers on board Indian flag ships

Maritime Administration

We appreciate and are grateful to our Govt forndash Granting short term dispensations to SMD on bulk

carriersndash Permitting NWKO(NCV) officers to sail on coastal vessels

including tankersndash Revising SMD thereby rationalizing manning on NCVOff

ndash Shore Fleetndash Reducing sea time requirements of cadets on cadet training

ships and introduction of graduate and NCV cadet schemes for ratings

ndash Tirelessly assisting us sail our vessels without any hesitation at even odd hours of the day

Maritime Administration

bull Areas of Concern -ndash Administration could not keep pace with the growth of

Indian Shipping and also could not adapt with the changing scenario of the requirement of customers of the industry

ndash Examination process ndash long and lengthy It is observed that around 2000 TNOCs have joined every year since introduction of IGNOU ndash DGS Scheme in 2004 However passing rate of second mate COC holders less than 25 per annum

Maritime Administrationbull Actions Requested -

ndash Full sea time for TNOCs for a period of Six months while serving on Off ndash Shore Research vessels

ndash Outsourcing Junior level competency examinations such as 2M FG Class IV etc

ndash Review process time for issuance of certificates after completion of examinations

ndash Expedite documentation for endorsements and revalidationsndash MMD Sight test may be conducted by a qualified ophthalmologist ndash Overcome shortage of Surveyors It is understood 50 of the

vacancies are lying vacant or are on ad hoc appointments

Concluding Remarks

bull With changing aspirations of the young population in a growing economy seafaring is not the most sought after career choice particularly for the urban youth

bull Indian shipping industryrsquos grand plans to acquire tonnage faces severe shortage problem

bull Short term solution ndash rationalization in taxation SMD allowing foreign officers etc

bull Long term solution ndash As listed in earlier slides

THANK YOU

• Reasons for Shortage
• Dangers of Inadequacy in Manpower
• Working Indian Seafarers
• Measures to address shortage of officers
• Steps taken by Indian Companies

SHIP STAFF

bull In recent times the attitude of the Ratings are seen to be more positive than those of the Officers on board Indian flag ships

Maritime Administration

We appreciate and are grateful to our Govt forndash Granting short term dispensations to SMD on bulk

carriersndash Permitting NWKO(NCV) officers to sail on coastal vessels

including tankersndash Revising SMD thereby rationalizing manning on NCVOff

ndash Shore Fleetndash Reducing sea time requirements of cadets on cadet training

ships and introduction of graduate and NCV cadet schemes for ratings

ndash Tirelessly assisting us sail our vessels without any hesitation at even odd hours of the day

Maritime Administration

bull Areas of Concern -ndash Administration could not keep pace with the growth of

Indian Shipping and also could not adapt with the changing scenario of the requirement of customers of the industry

ndash Examination process ndash long and lengthy It is observed that around 2000 TNOCs have joined every year since introduction of IGNOU ndash DGS Scheme in 2004 However passing rate of second mate COC holders less than 25 per annum

Maritime Administrationbull Actions Requested -

ndash Full sea time for TNOCs for a period of Six months while serving on Off ndash Shore Research vessels

ndash Outsourcing Junior level competency examinations such as 2M FG Class IV etc

ndash Review process time for issuance of certificates after completion of examinations

ndash Expedite documentation for endorsements and revalidationsndash MMD Sight test may be conducted by a qualified ophthalmologist ndash Overcome shortage of Surveyors It is understood 50 of the

vacancies are lying vacant or are on ad hoc appointments

Concluding Remarks

bull With changing aspirations of the young population in a growing economy seafaring is not the most sought after career choice particularly for the urban youth

bull Indian shipping industryrsquos grand plans to acquire tonnage faces severe shortage problem

bull Short term solution ndash rationalization in taxation SMD allowing foreign officers etc

bull Long term solution ndash As listed in earlier slides

THANK YOU

• Reasons for Shortage
• Dangers of Inadequacy in Manpower
• Working Indian Seafarers
• Measures to address shortage of officers
• Steps taken by Indian Companies

Maritime Administration

We appreciate and are grateful to our Govt forndash Granting short term dispensations to SMD on bulk

carriersndash Permitting NWKO(NCV) officers to sail on coastal vessels

including tankersndash Revising SMD thereby rationalizing manning on NCVOff

ndash Shore Fleetndash Reducing sea time requirements of cadets on cadet training

ships and introduction of graduate and NCV cadet schemes for ratings

ndash Tirelessly assisting us sail our vessels without any hesitation at even odd hours of the day

Maritime Administration

bull Areas of Concern -ndash Administration could not keep pace with the growth of

Indian Shipping and also could not adapt with the changing scenario of the requirement of customers of the industry

ndash Examination process ndash long and lengthy It is observed that around 2000 TNOCs have joined every year since introduction of IGNOU ndash DGS Scheme in 2004 However passing rate of second mate COC holders less than 25 per annum

Maritime Administrationbull Actions Requested -

ndash Full sea time for TNOCs for a period of Six months while serving on Off ndash Shore Research vessels

ndash Outsourcing Junior level competency examinations such as 2M FG Class IV etc

ndash Review process time for issuance of certificates after completion of examinations

ndash Expedite documentation for endorsements and revalidationsndash MMD Sight test may be conducted by a qualified ophthalmologist ndash Overcome shortage of Surveyors It is understood 50 of the

vacancies are lying vacant or are on ad hoc appointments

Concluding Remarks

bull With changing aspirations of the young population in a growing economy seafaring is not the most sought after career choice particularly for the urban youth

bull Indian shipping industryrsquos grand plans to acquire tonnage faces severe shortage problem

bull Short term solution ndash rationalization in taxation SMD allowing foreign officers etc

bull Long term solution ndash As listed in earlier slides

THANK YOU

• Reasons for Shortage
• Dangers of Inadequacy in Manpower
• Working Indian Seafarers
• Measures to address shortage of officers
• Steps taken by Indian Companies

Maritime Administration

bull Areas of Concern -ndash Administration could not keep pace with the growth of

Indian Shipping and also could not adapt with the changing scenario of the requirement of customers of the industry

ndash Examination process ndash long and lengthy It is observed that around 2000 TNOCs have joined every year since introduction of IGNOU ndash DGS Scheme in 2004 However passing rate of second mate COC holders less than 25 per annum

Maritime Administrationbull Actions Requested -

ndash Full sea time for TNOCs for a period of Six months while serving on Off ndash Shore Research vessels

ndash Outsourcing Junior level competency examinations such as 2M FG Class IV etc

ndash Review process time for issuance of certificates after completion of examinations

ndash Expedite documentation for endorsements and revalidationsndash MMD Sight test may be conducted by a qualified ophthalmologist ndash Overcome shortage of Surveyors It is understood 50 of the

vacancies are lying vacant or are on ad hoc appointments

Concluding Remarks

bull With changing aspirations of the young population in a growing economy seafaring is not the most sought after career choice particularly for the urban youth

bull Indian shipping industryrsquos grand plans to acquire tonnage faces severe shortage problem

bull Short term solution ndash rationalization in taxation SMD allowing foreign officers etc

bull Long term solution ndash As listed in earlier slides

THANK YOU

• Reasons for Shortage
• Dangers of Inadequacy in Manpower
• Working Indian Seafarers
• Measures to address shortage of officers
• Steps taken by Indian Companies

Maritime Administrationbull Actions Requested -

ndash Full sea time for TNOCs for a period of Six months while serving on Off ndash Shore Research vessels

ndash Outsourcing Junior level competency examinations such as 2M FG Class IV etc

ndash Review process time for issuance of certificates after completion of examinations

ndash Expedite documentation for endorsements and revalidationsndash MMD Sight test may be conducted by a qualified ophthalmologist ndash Overcome shortage of Surveyors It is understood 50 of the

vacancies are lying vacant or are on ad hoc appointments

Concluding Remarks

bull With changing aspirations of the young population in a growing economy seafaring is not the most sought after career choice particularly for the urban youth

bull Indian shipping industryrsquos grand plans to acquire tonnage faces severe shortage problem

bull Short term solution ndash rationalization in taxation SMD allowing foreign officers etc

bull Long term solution ndash As listed in earlier slides

THANK YOU

• Reasons for Shortage
• Dangers of Inadequacy in Manpower
• Working Indian Seafarers
• Measures to address shortage of officers
• Steps taken by Indian Companies

Concluding Remarks

bull With changing aspirations of the young population in a growing economy seafaring is not the most sought after career choice particularly for the urban youth

bull Indian shipping industryrsquos grand plans to acquire tonnage faces severe shortage problem

bull Short term solution ndash rationalization in taxation SMD allowing foreign officers etc

bull Long term solution ndash As listed in earlier slides

THANK YOU

• Reasons for Shortage
• Dangers of Inadequacy in Manpower
• Working Indian Seafarers
• Measures to address shortage of officers
• Steps taken by Indian Companies

THANK YOU

• Reasons for Shortage
• Dangers of Inadequacy in Manpower
• Working Indian Seafarers
• Measures to address shortage of officers
• Steps taken by Indian Companies