HELLENIC MEDITERRANEAN PANELHELLENIC MEDITERRANEAN PANEL March 10, 2011

INTERTANKO INTERTANKO OVERVIEW OVERVIEW

REPORTREPORTJOSEPH ANGELO

MANAGING DIRECTOR

MEMBERSHIP MEMBERSHIP

BUDGETBUDGET

SECRETARIATSECRETARIAT

EXCOM ISSUESEXCOM ISSUES

WEB SITE INFORMATIONWEB SITE INFORMATION

COUNCIL ISSUESCOUNCIL ISSUES

MEMBERSHIPMEMBERSHIP

• 250+ Members• 3,400+ Tankers

• 270+ Million DWT• Members in 40+ countries• MORE THAN 75MORE THAN 75%% OF THE OF THE

INDEPENDENT TANKER FLEETINDEPENDENT TANKER FLEET• 330+ Associate Members

MEMBERSHIPMEMBERSHIPMembers/million dwt No. of tankers

0

56

112

168

224

28019

97

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

0

680

1,360

2,040

2,720

3,400

No. membersm dwtNo. ships

BUDGETBUDGET 2009 2010 2011 (Actual) (Year end (Budget)

estimate)Total Operating Income (US$) 9,056,359 7,291,509 7,572,650

Total Operating Expenses (US$) 6,566,390 6,767,825 7,217,450

Operating Result 2,489,968 523,684 355,200

Non-operating Income/expenses 551,773 -25,000 -25,000

Result for Year3,041,741 498,684 330,200

BUDGETBUDGET• Reasons for large operating surplus for

2009 year end- Virtual retention of all members in 2009- Disciplined control of discretionary expenditures (limiting of activities)- Expenditures benefiting from strong US dollar against British pound and Norwegian Kroner

• 2010 membership fees reduced by 10%

• No change in 2011 membership fees

SECRETARIATSECRETARIAT• 22 STAFF MEMBERS IN 4+ OFFICES

Oslo (8), London (12), Singapore (1)USA (1) + Brussels, Manila (consultant)

• STAFF INCLUDES- Managing Director (New)- Deputy Managing Director (New)- Technical Director- Director, Regulatory Affairs- Marine and Chemical Director- General Counsel

EXCOM ISSUESEXCOM ISSUES

Budget

High level discussions with OCIMF

Minimum safe operating costs

Piracy

Greenhouse gas emissions

2011 Workplan priorities

DISCUSSIONS WITH OCIMFDISCUSSIONS WITH OCIMFHigh Level discussions (Chairmen) - “Best the

relationship has ever been”Issues• Achievable greenhouse gas emission reduction

targets for tankers• Piracy• Tanker officer competency and experience• Vetting matters• Mercury in crude oil, safety aspects• Guidance on generally accepted procedures for

accident investigation/analysis/reporting.

SAFE OPERATING COSTSSAFE OPERATING COSTSConcern – current rates are below the minimum cost

levels required to operate vessels safely

Issues• Costs to operate a ship and Worldscale versus

equivalent charter rates• Quality is important to both owners and charterers• Anti-trust concerns• Could be counterproductive (perception of lowering

the “quality bar”?)• Reluctance to share costs

Item for discussion with OCIMF

PIRACYPIRACY

• Media campaign

• Best Management Practice (BMP) compliance

• Policy on armed guards

• Marine Naval Liaison Officer (MNLO) supply

GREENHOUSE GAS GREENHOUSE GAS

• Continue to support mandatory Energy Efficiency Design Index for new ships

• Seek further information and clarification of Market Based Measures (MBM)

• Finalize development of industry assessment of potential CO2 reduction measures

• Launch “Virtual Arrival” project with OCIMF

WORKPLAN PRIORITIESWORKPLAN PRIORITIES

• Council approved workplan priorities

• Executive Committee to overview detailed implementation of workplan

• Secretariat developed detailed workplans for high priority workplan items (25)

• Workplan is a “living document”

• New workplan items to be submitted to Council for approval and appropriate priority

WEB SITE INFORMATIONWEB SITE INFORMATION

Databases• Terminal vetting

• Port information (port costs, reception facilities)

• Vetting inspection feedback

• PSC inspection feedback

• Confidential Accident Reporting (CARP)

WEB SITE INFORMATIONWEB SITE INFORMATION

Benchmarking (comparison with INTERTANKO fleet)

• Vessel inspection questionnaire (VIQ)

• TMSA 2

• Crew/officer retention

• Lost time indictor

COUNCILCOUNCIL• Venue - Astir Palace hotel

Athens, Greece

• May 9 – Council dinner

• May 10 – Council meeting

• May 11 – Tanker Seminar- Opening Session- Tanker market- Piracy- Technical session

Ballast water managementGreenhouse gas emissions

COUNCIL ISSUESCOUNCIL ISSUES• Presentation

“The ExxonMobil Approach to Assessing Marine Quality”

• Piracy

• Piracy campaign

• Greenhouse gas emissions

• Insurance/Documentary Committee

• Membership criteria

THANKTHANKYOU!!YOU!!

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