VANUATU ISPS FLEET UPDATE
The July 1 deadline has come and gone. While I would like to boast that all Vanuatu vessels are in compliance, I cannot do that. As of July 9 only 95% of the ISPS impacted vessels had submitted their Ship Security Plans for approval; just 67% had been issued ISSCs. Admittedly some of the vessels that are “tardy” are undergoing major refits or are laid up, but that doesn’t disguise the fact that Vanuatu ships are not 100% compliant. On the bright side, only one Vanuatu vessel has been detained to date for failure to comply. We did receive a limited number of requests for extensions immediately prior to July 1, all of which we denied. On a lighter note, one owner very proudly notified us on June 28 that he had just completed preparation of his SSP and was submitting it to the RSO for review and approval. I think the clocks in his office might be 6 months slow.

GROSS/NET TONNAGE AND INTERIM SCHEME VESSELS – ISPS
It was recently reported in the maritime press that the UK had difficulties with some ships that were claiming they were not required to comply with the ISPS requirements because the “net” tonnage of the vessel was below 500. Would he who believes this, please come forward…I have a bridge for sale. Somebody was either joking or truly did not understand the threshold levels – 500 “gross” tons -- for compliance with ISPS.

On the other hand some port state security organizations do not understand the definition of interim scheme vessels that were permitted by IMO resolutions and national policy to retain their original tonnage for the life of the vessel. There are a number of these vessels – mainly small coastal trading vessels and offshore supply vessels operating worldwide – whose ITC 69 tonnage may exceed 500 tons gross tonnage but whose “regulatory” tonnage is less than 500 gross registered tons. For further clarification on this issue, or to counter any port state security demands that your interim scheme vessel must comply with ISPS, check out IMO Assembly Resolution A.494 (XII), Resolution A.540 (13) and Resolution A.541 (13). And let us know if your interim scheme vessels are challenged.

FLEET / SAFETY LETTERS
Two Fleet / Safety Letters were issued during the last quarter. FSL 04068 provided an update on ISPS matters. Key sections of the letter discussed PSC actions and “clear grounds” for taking action; emergency email address for security matters ( ); and the designation of vessel owners to receive Ship Security Alert System alerts in accordance with SOLAS Chapter XI-2, Regulation 6.

FSL 04069 provided updated personal injury and casualty report forms. These forms along with both FSLs can be downloaded from our website www.vanuatuships.com.

A PLEA FROM OUR SEAFARER DOCUMENTATION ADMINISTRATORS
• When new personnel are assigned to ships, owners must closely check the documents they are submitting.
• Make sure all licenses, endorsements, training certificates, photos, letters of reference, evidence of sea time over the last 5 years, recent and complete medicals, etc., are included. If an applicant has not provided all the appropriate documents, wait until you receive everything before submitting it. Do not send it in incomplete.
• Sections VII and VIII must be signed by the applicant and countersigned by the company senior personnel representative. Applications missing these signatures will be rejected and returned or destroyed.
• A least one photograph must be securely affixed (stapled or glued) to the application in the space provided. Too often photographs that are only clipped come loose in transit and go missing.
• If medical exams are not conducted in accordance with the MED 1 medical report form, the application may be rejected. If the medical exam is over a year old, the application will be rejected. Likewise, if the applicant’s blood pressure, eyesight or hearing fail to measure up to the parameters specified in the Maritime Regulations, the application will be rejected.

MORE FLIGHTS TO VANUATU FROM 1 JULY 2004
Air Vanuatu has inaugurated additional flights from Australia and New Zealand. There are now daily flights (except Tuesdays) from Sydney and flights Tuesday, Friday, Saturday and Sunday from Brisbane. From Auckland there are flights on Thursday, Saturday and Sunday. The schedule continues to be concentrated on the weekends as that is when most tourists want to come to tropical Vanuatu.

VIRGIN TO COMMENCE FLYING TO VANUATU
Pacific Blue, an offshoot of Virgin Blue, itself an offshoot of Virgin Airlines is shortly commencing air service to Vanuatu from Brisbane and Melbourne and is offering very competitive fares. Air Vanuatu has reacted by lowering its fares to compete. The winners will be the local hotels (which are currently full due to the TV filming of the next “Survivor” episode here) and the local economy which caters to the tourism industry.

ENTENTE CORDIALE
One hundred years of Entente Cordiale between France and England was celebrated in Port Vila in May. Following the original signing in 1904, the Condominium of the New Hebrides was formed in 1906 (things took a while in those days) as the world’s first (and subsequently the only) working Condominium form of government – half English and half French. Today both former colonial powers continue to be very influential, with both English and French being official languages.

MILLENNIUM CHALLENGE
Vanuatu has been listed as just one of 16 countries in the world to qualify for the new USA Millennium Challenge, and is the only country in the pacific region. The US government has offered US$1billion this fiscal year (growing to 3 billion next year and 5 billion the third year) in grants for economic projects which will raise the standard of living in the listed countries. Each country must submit its projects for consideration. The projects can be either government or private sector and need to show how they will raise the living standards and be economically profitable.

VANUATU INTERNATIONAL SHIPPING REGISTRY PASSES 600 MARK
The Vanuatu international shipping registry now has over 600 vessels flying the Vanuatu flag throughout the world. Considering the remoteness of Vanuatu and the lack of resources of its government, this is an outstanding achievement. This success reflects Vanuatu’s reputation at the International Maritime Organization for full compliance with international conventions and high safety standards, and has made Vanuatu one of the leading registries in the world. Vanuatu has built a reputation of high standards and high levels of service which are equal to the best in the world. I quote our Executive Chairman, Mr. Tom Bayer, when he wrote to congratulate us: “Vanuatu Maritime Services Limited, and Dr. James Cowley, our permanent representative at IMO, get our votes of thanks for outstanding jobs, well done.” Thanks to you also, Tom, for your continued support of our efforts!

STAFF CHANGES IN OUR VILA OFFICE
After many years of service, Sue Phelps, Group Executive Director with primary responsibility for our Trust Division is retiring at the end of July and moving to Australia with her husband. She will be greatly missed both by clients and staff due to her ability to get things done in an efficient manner while keeping everyone happy. Many of her responsibilities will be taken over by David Outhred, currently Senior Vice President, Corporate Services. Charles Kleiman, Director and Financial Controller (and originally a trust officer) will be assuming overall responsibility for the trust division.

As one Phelps family member goes, another joins us. Tony Phelps, Sue’s son, is rejoining the group after a 3 year stint in Melbourne, to head up our Vila office IT department with special responsibility for systems and systems training. If his time permits, he may also help with the trust operational side, as he is just completing his MBA.