Discussing ‘Who Should Rule The Waves’ at the World Ocean Summit, organised by The Economist magazine, Mr Polemis outlined how any suggestion of radically revising the United Nations Convention on the Law Of the Sea (UNCLOS) would not be welcomed by the international shipping industry. 

Because of the delicate balance of rights and responsibilities that exists between flag states, port states and coastal states, the shipping industry is very reluctant to support a fundamental revision of UNCLOS. 

Apart from enshrining the principle of global maritime rules, which are vital to the industry, UNCLOS also establishes the right of all nations to freedom of navigation on the high seas and the right of innocent passage in territorial waters.  It also deals with delicate issues such as the rights of all ships to use international straits which are of great strategic importance. 

Because UNCLOS addresses a number of other sensitive issues, not just affecting shipping, ICS believes it is very unlikely that governments would be willing to reopen what is a delicately balanced package.

The shipping industry has a 100 years’ experience of international governance of its activities, and questions the premise that the UN Law of the Sea is no longer fit for purpose.

Mr Polemis suggested that if there were concerns about other areas of oceans governance, lessons could be learned in other sectors from the shipping industry’s global regulator, the UN International Maritime Organization (IMO), whose successful MARPOL Convention is enforced and implemented by 150 Flag States covering 99% of the world fleet.

“Unlike many other activities involving the oceans, shipping is probably unique in having a specialist UN agency to regulate our activities – the International Maritime Organization.  We have experience of many intergovernmental organisations that impact on our industry.  I can honestly tell you that the IMO is a model of efficiency, made up of experts from virtually every government in the world, who develop and adopt very complex regulations directly relevant to the protection of the marine environment.”

ICS’s view is that there is no shortfall in governance so far as the international regulation of shipping is concerned.  The shipping industry responsibly utilises the excellent facility that the sea provides for international transport – about 90% of world trade is carried by sea. 

Mr Polemis informed the Summit that shipping’s environment performance is already comprehensively governed by IMO, which is a very efficient global regulator.  The interaction between governments and the industry in relation to the work of IMO was just one of the pillars of the success story that is IMO. “Politicians should always consult with the industry when considering new regulation for shipping in order to avoid inefficient outcomes,” he said.   He explained that shipping is a global industry requiring a global regulatory framework, not a patchwork of national rules which would bring about chaos, inefficiency and have a negative impact on the smooth flow of world trade.

In his first monthly report, Interim Executive Director Leonard D. Waterworth said January was a strong month. Total tonnage for January 2012 was up 27 percent year-over-year at Port Authority facilities, he said. This was driven by an increase in steel of 235,000 tons, or 97 percent, and growth in container tonnage of 111,000 tons, or eight percent.

“Our core business is running very well,” Waterworth said. Operating revenue for January was $17 million, a $1.6 million or 10 percent increase from prior year, he noted.

Cash generated by Operations increased by 15 percent over the prior year to $6.1 million for January 2012. This offset January’s capital expenditures and commitments, leaving net funds available for capital projects of $220.4 million, equal to that available on Dec. 31, 2011, according to Waterworth.

Growth in operating revenues led to net operating income of $1.6 million, an increase of 165 percent over prior year, he said. Non-operating receipts of $0.5 million, primarily from federal grant funds and state road projects, added to the $1.6 million net operating income, resulting in net income of $2.1 million to the Port Authority for January, a 200 percent increase over prior year.

On behalf of the Port SupPORTers, volunteers who donate their time to Port Authority activities, Dana Blume, Manager, Environmental Affairs, presented the President’s Volunteer Service Award to the Port Commission. Ten Port Authority volunteers, who gave more than 4,000 hours of service last year, received the award, including Nena Armstrong, who was named 2011 Volunteer of the Year by dedicating more than 70 hours of service to Port Authority activities alone.

The national award is issued by the President’s Council on Service and Civic Participation. Established in 2003, the award is available annually to those who have demonstrated exemplary citizenship through volunteering.  As one of thousands of Certifying Organizations participating in the award program, the Port Authority confers it to recognize the outstanding achievements of its volunteers. 

Touring the construction site with London Gateway Chief Executive Simon Moore, DP World’s Chairman inspected the quay wall for the first berth, which can now be seen clearly.

London Gateway will open in Q4 2013, and when fully operational will be able to accommodate up to six of the world’s largest container ships and offers cargo owners supply chain savings through its close proximity to UK markets.

Sultan Ahmed Bin Sulayem, DP World Chairman said: “I’m delighted with the progress and the quality of the work I have seen. London Gateway is on-track to open in the fourth quarter of 2013.”

Simon Moore CEO London Gateway said: “It’s great to be able to see the new quay wall for London Gateway is nearing completion. We are fully committed to delivering supply chain savings from the very start of operations.  Deep-sea importers and exporters will soon be able to move closer to their UK markets, reducing costs, time and CO2 from global supply chains.”

Photo shows DP World Chairman Sultan Ahmed Bin Sulayem with Simon Moore CEO London Gateway alongside berth 1, opening next year

The Bulk Products Berth (Berth 101) at the southern end of the terminal will be demolished and part of the harbour dredged to develop a second high-capacity coal loading berth, while the stockpiling area would be extended further south. The upgrade at Port Kembla Coal Terminal (PKCT) is expected to be completed in 2014 to meet the export demands of the region’s miners.

PKCT is managed by BHPB on behalf of its stakeholders, Centennial Coal, Peabody (Helensburgh/Metropolitan), BHPB (Illawarra Coal), Xstrata (Tahmoor) and Gujarat NRE.