News Update from Vanuatu Maritime Services LTD.

Third Quarter 2008 edition aimed at keeping our friends informed about what is new at VMSL, in Vanuatu, and elsewhere.

•The Good — PARIS MOU ANNOUNCES NEW TARGETING LISTS

At its recent meeting, the Paris MOU Committee approved the 2007 inspection results and adopted new performance lists of flag states and recognized organizations that became effective 1 July. We are very proud of the fact that Vanuatu has moved to the "white" list, with better results than 9 other countries, 7 of which are "traditional" maritime nations. Vanuatu's ultimate goal is to reach the top of the Paris MOU "white" list.

•The Bad — fishing vessels held/detained in pago pago

During the second quarter a number of Taiwanese owned Vanuatu flagged fishing vessels were held in Pago Pago under Captain of the Port Orders for safety deficiencies or detained for MARPOL violations. In some cases oil record books were not being properly maintained or oily water separators were in disrepair. These holds or detentions seriously impact Vanuatu's otherwise good US PSC record. A reminder to all: MARPOL applies to all vessels, even fishing vessels.

•THE UGLY — HIJACKING OF THE M/V LOURDES TIDE

At approximately midnight on 13 May 2008, the Vanuatu flagged vessel M/V Lourdes Tide was hijacked by local Nigerian militants. The vessel and its crew of 11 were held ransom in one of the Niger Delta creeks. The vessel and its crew were finally released on 25 June. No one was injured. Subsequently 3 other Vanuatu flagged vessels were involved in incidents off the Nigerian and Cameroon coasts. In 2007 alone, more than 200 foreign workers were taken hostage with most of the attacks and kidnappings in Nigeria claimed by the Movement for the Emancipation of Niger Delta (MEND).

•AND STILL UGLIER — confined space entry deaths

Vanuatu's representative to MAIIF has been collecting information on confined space entry (CSE) issues to support a submission to IMO recommending actions to deal with CSE, and will include, among others, recommendations for additional mandatory training, improved management oversight, improved signage, improved lockout/tagout procedures, etc. To date 18 administrations have responded, reporting 129 incidents, with 124 deaths and 123 injuries. The cases do not include some 2 dozen incidents reported in the press in the last 6 months. Many of the incidents involve 2 or more deaths when would-be rescuers attempt to extract the first victim without taking proper precautions themselves. This is known as the "macho" syndrome. Bob Couttie sums it up nicely when he says: "If you enter a confined space without taking the proper precautions, dig 2 graves: one for yourself and one for the guy that tries to rescue you." More details to follow.

•LRIT — LONG RANGE IDENTIFICATION AND TRACKING OF SHIPS

SOLAS, Chapter V, now makes LRIT mandatory for passenger ships including high speed craft, cargo ships of 300 tons and above, and MODUs. Ships must automatically report their identity, the date/time, and their position 4 times daily. Ships constructed on or after 31 December 2008 must be fitted with LRIT. Ships constructed before then will be phased in depending on their operational area: ships approved for Sea Areas A1 and A2, or A1, A2, and A3, must comply no later than the first radio survey after 31 December 2008; ships operating in Sea Area A4 must comply no later than the first radio survey after 1 July 2009. Ships operating only in Sea Area A1 and fitted with AIS are exempted.

•Taiwan Continues to Offer Support to Vanuatu

Six nations of the Pacific recognize Taiwan diplomatically. Vanuatu does not. It almost did a couple of years ago but that idea brought down the Government of Serge Vohor. Since then, Vanuatu has reaffirmed its One China Policy, but cultural and economic ties continue with Taiwan, Vanuatu benefiting from its economic relationships with both Chinas.

•Doctors from Cuba

The Minister of Health has signed an agreement with Cuba under which five Cuban doctors will be stationed at Vanuatu outer island medical centers. This is a very welcome assistance by Cuba. In addition, Cuba has offered ten medical scholarships to ni-iVanuatu to study medicine at Cuban medical schools, however the criteria is such that local applicants may not be successful.

•Tourist Arrivals

Tourist arrivals continue their strong increase, with a 7% increase as compared to last year. This is attributable to more cruise ships calling and more frequent air services. Total arrivals in 2007 were in excess of 170,000, almost evenly distributed between cruise ship arrivals and air arrivals, the latter staying on average in excess of ten days.

•Hospital Upgrade

France has awarded a US$ 6 million grant to Vanuatu to upgrade the Northern District hospital in Santo, with work to start this year. The hospital services the northern half of the country and has been in need of an upgrade for some years.

•Melbourne Air Service

Air Vanuatu commenced direct non-stop service with Melbourne, Australia, in June. Melbourne is a large population market which has not had direct non-stop service to Vanuatu for some years. The past service, with smaller aircraft, had not been economic.

•Strong Economic Growth

The Vanuatu Reserve Bank has reported continuing strong economic growth, fueled by capital inflows for housing and now for infrastructures. Net foreign assets of the commercial banks have grown 3.6% in the last year and foreign reserves now cover eight months value of imports (whose value also moved up strongly- particularly the cost of imported fuel). Vanuatu generates its electricity using imported diesel with a small percentage of coconut oil. Housing loan values increased over 50% in the last 12 months. As a result, the Vatu exchange rate increased against all major currencies, except the Australian dollar.

•Financial Centre Future Direction Seminar

The Reserve Bank of Vanuatu, in conjunction with the Ministry of Finance, sponsored a full day seminar which focused on the contributions of the financial centre, its recent growth and its future direction. The seminar was attended by senior government officials and representatives of the industry and it was agreed to form a joint government/industry working committee to identify our best markets and to develop a long term plan to grow the industry whilst maintaining international standards. Some amended legislation has already been passed and other amendments are close to being ready for submission to Parliament, after consultation with the industry

•Pacific Blue Increases its Service to Vanuatu

Pacific Blue, the South Pacific regional carrier which is part of the Virgin Airways group, has increased its frequency of service to Vanuatu from Brisbane. They are believed to be also discussing with the Vanuatu government a possible management and/or equity arrangement with Air Vanuatu.

•Efate Ring Road Commences

The 135 kilometer paved ring road around Efate, the island where Port Vila the capital is located, has commenced. Most of this existing ring road has never been paved and is often in need of maintenance. This will be the largest civil project ever undertaken in Vanuatu and is being funded and administered by the Millennium Challenge Corporation, a USA funding organization which supports development in those countries which they feel are most deserving. The total allocation to Vanuatu is US$ 70 million.

•National Election Date Approaches

September 2 has been set as the date for the next national election where all Parliament seats will be contested and a new government formed after the election. The last national election was four years ago and it resulted in a coalition government. Since then there have been substantial changes in the main political parties and many new parties formed. A coalition seems certain again, but its make up is the topic of much speculation.

Vanuatu Maritime Services LTD at: http://www.vanuatuships.com


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