Gen Memo 07/14: BoD 23/14 / GlobalMET in India / Revision of Ship Management Book /

Cadets' Insurance / HTW1 Report

Dear Members,

PLEASE ENSURE THIS MEMO IS WIDELY DISTRIBUTED WITHIN YOUR INSTITUTION

1 BoD 23/14

Please be reminded that BoD 23/14 is to be held at the Malaysian Maritime Academy (Akademi

Laut Malaysia - ALAM) on 2 April, to be followed by the GlobalMET / ALAM Conference

'Maritime Education & Training: Closing The Gap Between What Is Needed and What Is

Provided'. Kindly refer to the attached flyers.

Any matter for consideration by the Board of Directors should be with the ExecSec not later than

24 March.

The organising committee for the conference has requested that those intending to attend would

please return the registration forms to enable an estimate of the numbers and the blocking of

seats.

2 GlobalMET in India

It is a pleasure to advise that the past two weeks in India were very constructive with respect to

MET and GlobalMET. It was a privilege to represent GlobalMET at the large Anglo-Eastern

Ship Management gathering in Mumbai, attended by many seafarers employed by

AESM. International participants included the Guest of Honour IMO Assistant Secretary

General Andy Winbow. Following the 2-day seminar 'Maintaining Vigilance in the Electronic

Age', a visit was made to the impressive Anglo-Eastern Maritime Academy at Karjat, a two hour

drive out of Mumbai.

The GlobalMET in India Conference 'Competence Requirements of the Future Mariner' was held

on 1 March at the SCI Maritime Training Institute. Senior shipping managers, officials and

MET providers in India joined International participants from the UK, US, Australia and New

Zealand.

Discussions with Core Competency Training & Services Pvt Ltd, the GlobalMET Secretariat in

New Delhi followed, together with visits to the AESM Training Centre in Delhi and the

International Maritime Institute in Greater Noida.

The stay in India concluded in Chennai with visits to the campuses of VELS University and

HIMT, followed by the GlobalMET Seminar 'Taking Maritime Education & Training into the

Future' organised by VELS University. This was also very well attended and participants

included the Capt Krishnamurthi, President of the Nautical Institute, London.

More information about the conferences, seminars, visits to the large impressive campuses and

discussions with highly motivated faculty and students is to be included in the forthcoming

Newsletter 31.

3 Revision of Ship Management Book

InterManager Secretary General Capt Kuba Szymanski has requested an indication of whether

the MET providers would be likely to purchase copies of the well-established book 'Ship

Management' by Malcolm Willingale, as it is nearly 10 years since publication. Attached please

find the proposed list of topics to be covered. Kindly respond directly to Capt Szymanski -

kuba.szymanski@intermanager.org

4 MLC requirements for Cadets insurance

Following an expression of concern received from Capt Kuba Szymanski, Secretary General of

InterManager: 'more and more frequently I see cadets left to their own devices because Uni/ collage

have not placed insurance for them. This is when student is NOT an employee yet.' As a result Mr Paola

Dellolio of Lime Street Insurance Brokers Ltd in London, who has been liaising with Capt

Szymanski, has requested GobalMET to distribute the attached guidance and opinion on these matters, which is given to the best of his knowledge and in good faith.

5 Report on HTW1

Also attached, please find the report compiled by Capt Paddy McKnight for InterManager and

kindly provided for distribution throughout GlobalMET.

With kind regards

Rod Short

Executive Secretary

GlobalMET Limited

The 12th Annual GlobalMET Conference

3 ~ 4th APRIL 2014

Maritime Education & Training :

‘Closing The Gap Between What Is Needed and What Is Provided’

SALOMA THEATER, KUALA LUMPUR, MALAYSIA

Background

The move to form an Asia Pacific regional association grew out of a series of informal gatherings, initiated by the Heads of Maritime Education and Training Institutions (MET) in Asia Pacific. The first of these was convened and hosted by the Australian Maritime College in 1989. Four meetings followed, starting at Dalian Maritime University in China, through to Fiji Institute of Technology in Suva, Far Eastern State Maritime Academy in Vladivostok and at the New Zealand Maritime School in Auckland. The Secretary General of the IMO had expressed strong support and GlobalMET was formed. In June 2008, at its 100th Session, the IMO Council approved GlobalMET as a consultant NGO. Since then, GlobalMET has played a supportive role in upholding the aims and objectives of IMO for ‘safer ships and cleaner oceans’. It has grown in strength and stature in the field of global maritime education and training. This is the 3rd instance that Malaysia is hosting this prestigious event.

Why you should attend: To keep abreast with the latest developments in maritime education and training To share the knowledge on challenges facing METs, shipping and offshore industries To gain an insight into what is available and what is needed for enhancing the capabilities and

infrastructure of METs To contribute towards the improvement of maritime competencies for the safety of man and

material To network and support the MET fraternity

Prominent global and Malaysian speakers are being lined-up for this prestigious event.

Who should attend CEOs, Directors, Advisors, Trainers & Managers in Maritime & Education Training Academies, Heads of Fleet

Management, Heads of HR Sea & Managers of Ship-owners & Ship Operators, Managers of Crewing / Manning companies

Port Operators including Pilots. Representatives from Ship-owners’ Associations, Maritime Institutes, NGOs Officers of government authorities, agencies, administrative bodies such as Port State Sponsoring Partners of METs Representatives of companies sponsoring Trainees Individuals supporting the shipping fraternity & stakeholders

PAYMENT METHOD

Bank / Demand Draft Bank Draft payable to a bank in Malaysia ONLY All cheques / bank drafts should be made payable to ‘MALAYSIAN MARITIME ACADEMY SDN BHD’ and mail it to GlobalMET Secretariat. Kindly indicate your name, contact number and name of conference (GlobalMET) at the back of the cheque or bank draft.

Telegraphic Transfer (TT) Bank : CIMB Bank Berhad A/C No : 0405-0008364-05-3 Swift Code : CIBBMYKL Bank Address: CIMB, Taman Cheng Perdana 75000 Melaka Registration will only be confirmed only upon receipt of payment. Participants are requested to bring along the receipt/ref. no. as proof of payment during the registration. GlobalMET Secretariat Malaysian Maritime Academy (ALAM), Window Delivery 2051, Masjid Tanah Post Office 78300 Masjid Tanah, Melaka Contact Person : Tel. : +606-3882302 / +6017-6388255— Ms Sabariah Majid +606-3882220 / +6012-3260491— Capt David S Rajan +606-3882246 / +6012-7005582— Ms Hanim Zainal Fax. : +606-3876700 Email : events@alam.edu.my

NAME (Note that the name on the certificate will appear as indicated here, please write in capital letters):

(Mr/Ms/Dr) : _______________________________________________________ Designation : __________________________________________________

Institution/Affiliation : __________________________________________________

Address : __________________________________________________

__________________________________________________

Phone : _____________________ Fax :_____________________

E-mail : ___________________________________________

Food preference : Non Vegetarian / Vegetarian

Program Tentative;

3rd April (Thursday) : 0900hrs - 1700hrs

4th April (Friday) : 0900hrs - 1300hrs

REGISTRATION FORM

All fees must be paid in advance. The fee covers all conference sessions, conference bag, e-materials, tea breaks, lunches, and conference dinner.

Participant Fees

Corporate & Individual USD 450.00 / RM 1350.00

Student USD 120.00 / RM 350.00

ANNOUNCEMENT AND CALL FOR PAPERS

GLOBALMET - Global Maritime Education & Training Association

In cooperation with

Malaysian Maritime Academy (ALAM)

invite your participation in

ALAM-GLOBALMET ANNUAL CONFERENCE

that will be held in

Malaysia on 3 & 4 April 2014

with the theme:

“Maritime Education and Training: Closing the Gap Between What is Needed and What is Provided”

The establishment of GlobalMET in 1996 arose from the participants' desire to support the aims and

objectives of IMO for 'safer ships and cleaner oceans' and recognition of:

the vital importance of maritime education and training in fulfilling the needs of expanding

trade and economic growth;

the urgent need for collective efforts in maritime education and training to promote greater

safety at sea and protection of the marine environment.

The name ‘Global Maritime Education and Training Association’, with the working name

‘GlobalMET’ (formerly ‘AMETIAP’ – the ‘Association of Maritime Education & Training

Institutions in Asia Pacific’), was adopted in 2006, to reflect the growing global role with more

members based outside the Asia Pacific region. Annual conferences, meetings of the Board of

Directors and general meetings have been attracting a wide cross-section of delegates from across the

Asia Pacific region and beyond. For more information please visit http://www.globalmet.org/

Papers to be presented during the April 2014 Conference should relate to :

the latest developments in maritime education and training

challenges facing METs, shipping, offshore and maritime logistics industries

an insight into what is available and what is needed for enhancing the capabilities of METs

the improvement of maritime competencies for the safety of man and material

Activities Timeline

Abstract of Papers (about 400 words) 3.3.2014 (Monday)

Notification of acceptance of abstract to authors 10.3..2014 Monday)

Full manuscripts submitted to organizers 14.3.2014 (Friday)

Conference presentations submitted to Organizers 21.3.2014 (Friday)

Abstract of Papers should be sent to the Organizer’s Email address attention to Mr. Rajoo Balaji,

Head of Advanced Marine Engineering: rajoobalaji@alam.edu.my, Telephone: +6 06 388 2200

InterManager IMO HTW1 Report

The IMO’s Sub-Committee on Human Element, Training and Watchkeeping held its 1st session (HTW1) from Monday 17 through Friday 21 February 2014 under the Chairmanship of Mr Bradley Groves (AUSTRALIA) and his Vice-Chair, Mrs Mayte Medina (USA); both were subsequently re-elected for 2015. This Sub-Committee, acronym HTW, has assumed responsibility for matters formerly dealt with by STW (Standards of Training and Watchkeeping) following this year’s rationalisation of the IMO Sub Committee structure.

Three working groups (WG) and two drafting groups (DG) were formed and chaired as follows :

WG1 Training Matters (Manila Amendments), Mrs M Angsell (SWEDEN)

WG2 Training Matters (Polar waters/ Passenger Ship Safety Training), Mr N Makar (MARSHALL ISLANDS)

WG3 Other Issues (Including carriage of dangerous goods in packaged form), Captain M de Gracia (PANAMA)

DG1 Validation of model courses, Item 3 (part), Captain G Edenfield (USA)

DG2 Validation of model courses, Item 3 (remainder), Captain M Yadav (INDIA)

Following is a selection of salient points emerging from the meeting of particular interest to InterManager members:

VALIDATION OF MODEL TRAINING COURSES. Prior to the formation of DG1 and DG2, discussion in Plenary established :

.1 the importance of ensuring that the revised model courses reflect the content of the STCW Code ;

.2 the content aligns with the knowledge, understanding and proficiency (KUP) related to STCW competence ;

.3 the scope of the provisions in the STCW Code should be compared with the content of the model courses ;

.4 no extraneous material should be added to model course content ; and

.5 the advanced courses reflect the supervisory nature of the KUPs in Part A.

DG1 subsequently revised the draft model courses on :

.1 Basic training for Oil and Chemical Tanker Cargo Operations

.2 Basic Training for Liquefied Gas Tanker Cargo Operations

Both Basic courses were then validated by the Sub-Committee and in addition, a correspondence group established to finalise Advanced versions of the above model courses.

DG2 were given similar endorsement for their revision of draft model courses on :

.1 General Operator’s Certificate for GMDSS ; and

.2 Restricted Operator’s Certificate for GMDSS.

The Sub-Committee also accepted an offer by the International Maritime Lecturers association (IMLA) to revise model course 3.17 on Maritime English to meet the requirements following the 2010 Manila Amendments.

FRAUDULENT CERTIFICATES. Member Governments were urged to report details of fraudulent certificates of competency detected in the revised reporting format (STCW 38/17, annex 1). Noting the large number of fraudulent certificates reported, Member States and International Organisations were invited to submit proposals for consideration at the next session of HTW. Worthy of note, the certification verification facility through the IMO website was used 10,722 times during 2013.

DEVELOPMENT OF GUIDANCE FOR THE IMPLEMENTATION OF THE 2010 MANILA AMENDMENTS. In consideration of such guidance, WG1 listed a large number of requested action items for approval by the Sub-Committee. Most notable amongst these were :

.1 To use GISIS for fulfilling reporting requirements of the STCW Convention and Code;

.2 Approve an STCW .7 circular on advice of action to be taken (by PSC Officers, recognised organisations and recognised security organisations) in cases where seafarers do not carry certification on security related training i.a.w. regulations VI/6 of the STCW Convention and section A-VI/6, paras 4 and 6 of the STCW Code after 1 January 2014.

.3 Approve a similar STCW .7 circular on advice of training and certification requirements for ship security officers (highest level) and seafarers with designated security duties. The third (and lowest) level of training is that of security-awareness. Training requirements for the 3 levels are drafted such that the higher levels include the competencies of the lower level and this the draft Circular seeks to clarify (explanation for PSC benefit).

.4 Extension of the target completion date on guidance for implementation of the 2010 Manila Amendment from 2014 to 2017, a recommendation to MSC.

.5 A revised list of IMO model courses and priorities on the basis of those already completed, those under development and priorities for pending courses.

.6 Revision of guidance for model course development, updating and validation processes for discussion at HTW2.

.7 Request MSC to inform CCC1 that the draft amendments to STCW do not include requirements on emergency exercises and drills when considering part D of the IGF Code.

.8 Endorse interim guidance (provided by the USA-led CG) on training for seafarers using gases or other low flashpoint fuels.

FATIGUE RISK MANAGEMENT SYSTEM. The Australian delegation tabled an Information Paper relating to fatigue risk, a human element strategic plan they are developing. This is of particular interest to InterManager members as we are one of the principal drivers in project MARTHA, a fatigue risk management system study in which we will continue to participate over the next few years.

THE POLAR CODE. WG2 successfully developed a draft Chapter 13 of the Polar Code which will be forwarded to MSC for approval. Noting the progress related to draft amendments of Chapter V of the STCW Convention and Code related to training requirement for officers and crew on board ships operating in polar

waters, member Governments and international organisations were invited to submit comments and proposals for consideration at HTW2.

PROPOSED REVIEW OF STCW PASSENGER SHIP SPECIFIC SAFETY TRAINING. Owing to time constraints, WG2 was unable to give due consideration to proposed amendments to the STCW Convention and Code. However agreement by the Sub-Committee was given to the establishment of a Correspondence Group on Development of draft amendments to the Convention and Code related to revised training requirements for passenger ships, under the coordination of the USA.

CARRIAGE OF DANGEROUS GOODS IN PACKAGED FORM BY SEA. There was a general view that problems related to the carriage of dangerous goods by sea in packaged form, stem more from land-based issues rather than those on board ships and that this is already addressed adequately in the STCW Convention and Code, the IMDG Code, other IMO instruments and in Model Course 1.10. The Sub-Committee felt it premature to forward anything to the CCC Sub-Committee but invited submissions for consideration at HTW2.

GUIDELINES ON SAFETY DURING ABANDON SHIP DRILLS USING LIFEBOATS. Recalling that MSC92 approved, in principle, a draft MSC circular on ‘Guidelines on safety during abandon ship drills using lifeboats’ for final approval at MSC 93 (plus Resolution), it was decided that:

.1 there is no need to standardise drills;

.2 there is no need to make the guidelines mandatory; and

.3 submissions to MSC 93 of an unplanned output for the consolidation and harmonisation of all relevant guidance would be invited.

DEVELOPMENT OF AN E-NAVIGATION STRATEGY IMPLEMENTATION PLAN. NORWAY reported on the work of the e-navigation Correspondence Group (CG) related to human element, also training issues and implications of same. It was agreed that:

.1 trainers in maritime universities and institutions should be familiar with training requirements (a blinding glimpse of the obvious, perhaps!);

.2 administrations keep their training providers updated;

.3 it is too early to develop an e-navigation module; and

.4 whilst HCD (human centred design) may produce positive results, such effects would need evaluation.

In the light of all this, it was agreed that it is too premature at this stage to consider training requirements of any sort pending finalisation of the e-navigation Strategy Implementation Plan.

POSTSCRIPT.

Following discussion of WG1’s report to the Sub-Committee, ICS made a spirited intervention on the subject of Security Training. In it, ICS pointed out that the likely problem associated with the issuance of certificates of proficiency for security awareness training had been brought to the attention of the world’s port state control (PSC) MOUs late last year and for which pragmatism was requested of PSC Officers. However, earlier this week, the Paris MOU responded that, notwithstanding the ICS request, its Member State PSC authorities will issue deficiencies in the absence of the Certificate of Proficiency for security awareness training, totally ignoring the fact that such a situation is not one of the shipowners’ making. It is particularly galling that a deficiency is threatened for the lack of a certificate, even where the training has been undertaken and the documentary evidence can be provided. Indeed, as a result, the port State control record of the ! ship, the Company and the Flag State will be adversely annotated by the failure of a

certificate issuing authority to comply with certification requirement.

In recognition that the Convention cannot permit a suggested ‘enforcement grace period’, the STCW .7 Circular recommends that Administrations should nevertheless inform their port State control authorities that, until 1 July 2015, even if a seafarer’s certification with regard to security training under regulation VI/6 of the STCW Convention as amended and section A-VI/6 paras 4 and 6 of the STCW Code is not in accordance with the STCW Convention as amended, it would be sufficient to accept compliance with section 13 of the International Ship and Port Facility Security (ISPS) Code.

Similarly, Administrations should also inform recognised organisations and recognised security organisations issuing ISM Code and ISPS Code certification under SOLAS, as amended, that, until 1 July 2015, if a seafarer’s certification is not in accordance with the amended Convention and Code (under regulation VI/6 etc.), it would again be sufficient to accept compliance with section 13 of the ISPS Code.

Captain Paddy McKnight END

InterManager Revision of ‘Ship Management’ by Malcolm Willingale

Proposed Structure of Revised Book

1 Introduction: Ship management 'The BIG picture' > macro market trends (world fleet servicing requirement) > ship management: what is it? > three management 'models' > industry stake holder map > the ship life cycle > hardware to human ware > 'trust me' to 'show me' > chapter preview 2 Managing PEOPLE > introduction & issues > how has the HR function evolved, how does it work today and what value does it add >organizational change and development >focus on office based staff > focus on seastaff > training > In summary… 3 Managing MONEY > introduction & issues > how has the accounting function evolved, how does it work today and what value does it add > financial budgeting > financial reporting >In summary 4 Managing TECHNOLOGY > introduction & issues > how has the technical evolved, how does it work today and what value does it add > commercially driven changes > regulatory driven changes > In summary 5 Managing INFORMATION > introduction & issues >how has the IT function evolved, how does it work today and what value does it add >IS applied to the office environment > IS at sea > in summary 6 Managing RISK > introduction & issues > how has the HSSE function evolved, how does it work today and what value does it add > risk management in practice > legal aspects >insurance aspects > > In summary

7 Managing RELATIONSHIPS > introduction & issues > the shipping industry stakeholder map > three examples of relationship management with key stakeholders > managing relationships when the proverbial hits the fan: crisis management > In summary 8 Managing PROCUREMENT > introduction & issues >how has the purchasing function evolved, how does it work today and what value does it add > ? >? > In summary 9 Managing PERFORMANCE > introduction & issues > different approaches > the InterManager KPI project > In summary 10 Managing in to the FUTURE > introduction & issues > scenarios > new challenges (eg 'big data' and nanotech) and outside the box thinking > In summary

Informal Advice from Mr Paola Dellolio Lime St Brokers, London

Dear Rod,

Theoretically, cadets who are engaged on board vessels with the permission of the owner are covered by the owner’s P&I club in tort as per following rules: QUOTE

GARD: Rule 29 Liability for other persons carried on board 1 The Association shall cover liability arising out of the injury to, or illness or death of, or liability for loss of or damage to the effects of persons carried on board other than Crew or passengers provided that:

i) in the case of a person other than a close relative of a member of the Crew, the Association has approved the presence of such persons on board; ii) the cover shall be subject to proviso (iii) to Rule 27.1. [IRRELEVANT FOR OUR PURPOSES] 2 The Association shall cover costs and expenses incurred as a direct consequence of complying with an order for the deportation of any such other person carried on board which would not have been incurred had no such order been made, subject to the provisos to Rule 27.2.

UNQUOTE

The rules of IG clubs following ratification of the MLC have been amended in relation to crew and repatriation to comply with MLC: QUOTE

GARD: RULE 27 Liabilities in respect of crew 3 The Association shall cover liability to repatriate a member of the Crew pursuant to any statutory enactment giving effect to the Maritime Labour Convention 2006 or any materially similar enactment, provided always that there shall be no recovery in respect of liabilities arising out of the termination of any agreement, or the sale of the Ship, or any other act of the Member in respect of the Ship, save and to the extent permitted by this Rule 27.3 in respect of the Member’s liability for such expense under the Maritime Labour Convention 2006.

UNQUOTE

Cadets and crew are not directly entitled to compensation, it is the owner of the ship that is entitled to recover from the P&I any claim paid to crew/cadets in relation to injury, illness, death, etc. However, it is a practice (wrong one in my opinion) for governments and Flags to accept owners’ P&I certificate as proof of suitable insurance arrangements, even though the assured is the owner and the recovery of crew claims depends entirely on the owner’s compliance with the insurance contract over which crew and other 3rd parties have no control. The statement of the government of the Philippines reported in your email confirms that Filipino cadets must be engaged on board vessels pursuant to a contract with the ship-owner and are treated like crew for the purposes of insurance.

I understand from one club that if cadets are engaged under a proper contract they are afforded all the benefits as crew: “it all depends whether the cadets are signed on under the crews articles (and therefore are to benefit from crew type benefits and compensation limits) or not. If they’re not then they would be considered to be visitors and would therefore be covered under Rule 2 Section 2 of the Rules only”

As visitors they have compensation entitlements in tort, i.e. where there is negligence on the part of the owner. They are not entitled to POEA or similar contractual benefits and certainly not to repatriation as required by the MLC. P&I clubs’ newly amended rules in relation to repatriation, on a literary interpretation, seem to apply to SEAMEN/CREW not to ‘persons other than crew or passengers’ - for example cadets. As I said in my previous email, I would find it extraordinary if a club accepted to repatriate 20 crew and not 2 cadets in cases of abandonment. However, in order to protect the interest of cadets I would recommend that cadet organizations arrange the following:

1) suitable contractual arrangements with owners in conformity with POEA or equivalent national employment agreements;

2) confirmation in writing by the owner or/and their P&I club that cadets are signed on as crew and afforded all the protection of crew members;

3) confirmation that the club rules on MLC/repatriation/insolvency extend to cadets by virtue of the MLC’s definition of ‘seafarer’ independently of clubs and flags adopted definitions and interpretations.

Apart from IG P&I clubs, there is always the question of other liability insurers and of owners who arrange crew personal accident cover separately from P&I. This arrangement prevails in some areas of the world. If cadets are placed on board ships which do not carry a full P&I they would need a proper PA cover that includes repatriation as per MLC. To set up a suitable policy for cadets should not be a problem and if the number of cadets to be insured is high enough, then the cost will be lower. In this respect it would be useful to know a bit of background on the number of claims involving cadets on a yearly basis. An international fund and or captive (self insurance company backed up by suitable re-insurance providers) could be set up to manage insurances for all organizations. I believe cadet organizations should arrange a comprehensive cover not only for cadets but also for the organization itself for third party liability. In this case the beneficiaries would be the cadets and would be entitled to claim benefits directly and independently of the owner - thus covering situations where owners do not have a proper P&I or have become insolvent - and the organization can cover liability to owners for negligence (eg where a cadet is grossly unsuitable or commits an act outside his job description and caused loss or damage).