Anti-Trust/Competition Law Compliance Statement

1. Effective self protective measures –an INTERTANKO viewCombating Piracy 09byGunnar A KnudsenManager Ports and TerminalsLondon, 29 April 2009

2. Anti-Trust/Competition Law Compliance Statement INTERTANKO’s policy is to be firmly committed to maintaining a fair and competitive environment in the world tanker trade, and to adhering to all applicable laws which regulate INTERTANKO’s and its members’ activities in these markets. These laws include the anti-trust/competition laws which the United States, the European Union and many nations of the world have adopted to preserve the free enterprise system, promote competition and protect the public from monopolistic and other restrictive trade practices. INTERTANKO’s activities will be conducted in compliance with its Anti-trust/Competition Law Guidelines.

3. Scope • Elements effecting the vulnerability as potential piracy object • Self protective measures to prevent attack/ hijacking • Close proximity protection/routeing guidance • Commercial considerations • Final comments

4. French frigate, Le Floreal watches over the Danish ship "Puma" which is carrying sensitive cargo, on January 11, 2009, in the Gulf of Aden.

5. Elements affecting vulnerability as potential piracy object (1) • Risk assessment / contingency plan • Choice of route (East of Madagascar) / use of ”mother vessels” • Navigation in the "International Recognised Transit Corridor“ (IRTC) • Registration of ship at MSCHOA for group transit and send regular reports to MTO Dubai • Height of freeboard • Speed during group Transits • Wind and waves • Evasive manoeuvres

6. Elements affecting vulnerability as potential piracy object (2) • Day versus night risk areas passage • Listening watch on VHF 16 and back up channel 8 for Naval vessels • Take guidance direct from the BMP • Group Transits best and safest option (a full convoy system would need 100 warships) • Assets in theatre highly coordinated and cooperate to "sanitise" high risk areas prior group transits

7. Elements affecting vulnerability as potential piracy object (3) • Group Transit system • Maximises assets available • Provides safety in numbers • Ships grouped (slow first/fast behind) • maritime patrol aircraft widen the operational area of naval assets and quicken response times in the event of an attack • New ATALANTA aircraft patrols in Indian Ocean

8. Self protective measures to prevent attack/ hijacking (1) • Implementation of Ship Security Plan (SSP) • Onboard planning and procedures • Watchkeeping and Enhanced Vigilance • Additional lookouts • Early detection • Night vision binoculars’ • Enhanced radar and radio watch • Close Circuit TV (CCTV) • Vulnerable areas of vessel • Protected positioning of CCTV monitors • Recorded CCTV footage as evidence

9. Self protective measures to prevent attack/ hijacking (2) • Contingency plan and drills • Alarms • Ensure crew familiarity • Exercise before entering risk areas • Armed security guards • No arming of ship’s crew • Private security services acceptable • Private armed guards not acceptable as no quality control • Government armed guards at owner’s discretion. Preferably from flag state • Unclarified legality/jurisdicion in case of crew member or pirate being killed by mistake/damage to ship/insurance

10. Close proximity protection/routeing guidance (1) • Delay or avoid risk of attack • Set Security Level 2 • Fire hoses/foam monitors rigged in likely angles for attack – remote operation • On deck and overboard lighting / search lights • Secure doors and hatches to accomodation, engine room, steering gear • Protection of ship’s tools and equipment • Protection of access to bridge

11. Close proximity protection/routeing guidance (2) • Physical barriers at vulnerable points • Razor wires • Electric barriers (not for tankers) • Protected safe area for crew / depots • Long Range Acoustic Devices • Ships to report any and all attacks in the region to MTO Dubai • MTO Dubai voluntary ship reporting system • Provides excellent "white picture" (overview of merchant shipping traffic in the region) • Report every 6 hours to MTO Dubai when in the area

12. Close proximity protection/routeing guidance (3)AREA OF OPERATIONS – MTO DUBAI CTF 158 CTF 152 78E CTF 151 05S UK MTO REPORTING LIMIT

13. Commercial considerations • Attention to adequate c/p agreements • Worldscale ”special rates” for voyage as performed / ”Maritime Patrol Security Area corridor” • Deviation / Waiting time’s influence on transportation cost (payroll/bunkers) • Cost of unarmed advisory personnel (or armed guards) • Market effects on choice of longer routes (10-12 days extra E. Of Madagascar and Cape of Good Hope)

14. Final comments • INTERTANKO involvements • IMO/MSC • UN CGPCS – WG3 (UN Res. 1851) ”strengthening shipping awareness” – industry developed BMP • MSCHOA (Northwood) – Merchant Navy Liaison Officer • MTO Dubai • IMB • Round Table (Intercargo, BIMCO, ICS, SIGTTO) • Documents / guidance • Piracy – The East Africa/Somalia Situation (booklet) • Best Management Practices (BMP) – industry cooperation • Joint War Committee (JWC) guidance (hull risk) • INTERTANKO Security bulletins to members • INTERTANKO C/P Clauses (voyage or time charter)

15. A French Atlantic plane passes over the French Frigate Le Floreal of the EPE (Embedded Protection Team), in the Gulf of Aden on January 10, 2009

16. Combating Piracy 09 • The current system works and has industry support Thank you for your kind attention