The European Union expressed the need for mechanisms against injurious pricing. This position was supported by Japan and most other participants, especially because it would be the only way to combat contracting at prices below costs.

　

 The Korean Republic was against such proposals because in its opinion, market forces would operate if support measures were ruled out. China, which attended for the first time, reserved its position on this issue pending appropriate analysis.

　

 The SNG also discussed the entry into force, depending of a minimum number of parties or a minimum proportion of the shipbuilding market, as well as the option that some members could already apply the agreement before its formal entry into force.

　

 Korea requested a detailed inventory of support measures provided by WP - VI members and non members participating in the SNG. No support was received from the other members and the point remains open.

　

 Korea continues to be strongly opposed to any pricing discipline, while the vast majority of countries are in favour of it. The point remains to be solved.

　

 The position of the United States, which is not participating in the SNG was addressed. Korea stressed the point that the participation of the USA in the New Agreement is essential in particular with respect to its enforcement.

　

 The SNG also discussed the "Special and Differential Treatment" referred to developing emerging economies in the shipbuilding sector. The matter remains open

　

 In any case, China has requested the SNG to explore possibilities of a transitory period for the application of the Agreement.

　

 The Working Party - VI's Subgroup on Supply and Demand will continue working on market development and study on capacities, under the Chairmanship of Richard Domokos, from the Canadian Administration.

　

　

 The work of the IMO in the field of maritime safety has to a large extent been influenced by the events of September 11 and the fear that shipping could be the target of international terrorism. The IMO General Assembly had adopted a resolution already in November 2001, calling for a review of the existing international legal and technical measures to prevent and suppress terrorist acts against ships and improve security both aboard and ashore. The further debate at the IMO has significantly been pushed forward by the USA. A comprehensive set of measures, based on a draft provided by the USA, was discussed in several working group meetings and finally adopted at a Diplomatic Conference in December 2002. The main element is the new "International Ship and Port Facility Security Code (ISPS Code)" and a new chapter to SOLAS under the heading "Measures to enhance maritime security". The wording underlines that IMO has made a significant shift from "safety" to "security", extending its activities also to the interface between shipping and land based facilities.

　

 The main purpose of the ISPS Code is to provide a standardised framework for risk assessment to ensure the security of ships and port facilities. Part A of the Code contains requirements for governments, port authorities and shipping companies. These requirements will be made mandatory under the new SOLAS Chapter XI-2 (Special measures to enhance maritime security). The non-mandatory part B of the code contains guidelines on how to meet these requirements. As far as port facilities are concerned, the risk assessment includes an identification and evaluation of important assets and infrastructures, the identification of actual threats to those assets and an identification of potential weaknesses. After the completion of the assessment, those port facilities shall be determined that require the appointment of a "Port Facility Officer" and the preparation of a "Port Facility Security Plan", as well as the implementation of operational and physical security measures at certain defined security levels (security levels 1 - 3, corresponding to normal, medium and high threat situations). There is no reference in the documents and the definitions of the term "port facility" as to shipyards located in or near these facilities. As far as the security of ships is concerned, shipping companies will be required to designate a "Company Security Officer" and a "Ship Security Officer" for each of its ships. The "Ship Security Plan" shall indicate the operational and physical security measures to ensure that the ship always operates at security level 1 (low threat) and the additional measures for prompt implementation at security level 2 (medium threat) and 3 (high threat). The compliance with these requirements will be documented in an "International Ship Security Certificate". This document has to be carried on board the ship and the ship is subject to various controls and inspections within the port state control mechanism.

　

 Regarding the amendments to the SOLAS-Convention, these include the creation of a new chapter XI-2 to SOLAS under the heading "Measures to enhance maritime security". The new chapter applies to all passenger and cargo ships of 500 GT and above, including high-speed craft, mobile offshore drilling units and port facilities serving such ships engaged on international voyages. Regulation XI-2/3 refers to the new ISPS Code, making it mandatory under SOLAS. The new regulation XI-2/5 requires all ships to be fitted with a ship security alert system. The timetable foresees that most vessels have to comply with this requirement already in 2004 and the remainder in 2006. Modifications to Chapter V of SOLAS (Safety of Navigation) include an accelerated timetable for the fitting of Automatic Identification Systems (AIS), requiring ships, other than passenger ships and tankers to fit AIS not later than the first equipment survey after 1 July or by December 2004, whichever occurs earlier. The existing SOLAS Chapter XI (Measures to enhance maritime safety) has been renumbered as Chapter XI-1. Amended regulation XI-1/3 requires ship identification numbers to be permanently and visibly marked on the ships hull or superstructure (on passenger ships the marking on a horizontal surface, visible from the air is sufficient). The new regulation XI-1/5 requires a "Continuous Synopsis Record" (CSR), intended to provide and on board history in particular on details of ownership and registration of the ship and to document all changes. The amendments to SOLAS will enter into force under the so-called "tacit acceptance procedure" on 1 July 2004.

　

 In spite of this strong focus on security related measures, a couple of important issues regarding maritime safety have either been finalised or significant decisions for the future work of IMO been taken. This includes the transformation of the IMDG (International Maritime Dangerous Goods) -Code into a mandatory instrument and the amendments to SOLAS Chapter II-1 regarding access to spaces in the cargo area of all tankers. These amendments require for new and existing oil tankers of 500 GT and above and bulk carriers of 20,000 GT and above permanent means of access to cargo areas and ballast tanks with the effect of 1 January 2005. The measures have to be documented in a "Ship Structure Access Manual". This facilitates inspections and maintenance of these ships.

　

 The Sub-Committee on Bulk Liquids and Gases (BLG) agreed to a revision of the Standards for ship manoeuvrability which contains modifications to the requirements for the 10°/10°zig-zag test. Regarding the stopping ability of ships, BLG - based on an AWES initiative - refused to relax the standard in order to accommodate the abilities of recent Korean and Japanese sub-standard newbuildings. On the contrary the waiver clause - which permit the administrations to modify the test criterion for large displacement ships (VLCC and ULCC) - was limited to a maximum stopping distance not exceeding 20 ship's length.

　

 Largely unnoticed by the public is the alarming number of losses of bulk carriers. This is hard to understand due to the high number of losses of human lives connected with these incidents. The MSC has reacted to this problem in December 2002 and adopted a comprehensive set of measures to improve the safety of bulk carriers. These measures which are based on modern risk assessment evaluations contain requirements addressing operational issues as well as structural and equipment related standards, focussing mainly on the hull envelope, closing appliances and evacuation. The most significant proposal from the shipyard' s perspective is the requirement for double side skin construction for all new bulk carriers of 150 m in length upwards. Other risk control options comprise water ingress alarms, ban of alternate hold loading, reinforcement of hatch covers, improvement of the protective coating, free-fall lifeboats and personal life-saving appliances. Work on the technical details has been delegated to the responsible IMO Sub-Committees based on a tight time schedule. It can therefore be assumed that the measures will enter into force in 2005.

　

 The issue of bulk carrier safety initiated a new work programme item for the IMO Council which decides on general policy questions not related to specific ship types. With regard to the development of an "IMO Strategic Plan" the delegations of Bahamas and Greece proposed that IMO should play a larger role in determining the structural standards to which new ships are built since increased competition between classification societies tend to promote a decrease in newbuilding quality. This political approach is complemented by specific technical and commercial proposals for the "Building of robust ships" ranging from the ban of high tensile steel use to extended warranty periods. AWES is participating actively in this ongoing discussion based on a twofold approach. On the one hand AWES confirms the observations with regard to the dual-standard situation between European and Far-east implementation of shipbuilding standards and proposes to collate related information through IMO. On the other hand AWES recalls owner's obligations for the ship operation and refuses proposals which aim at the maintenance-free ship through prescriptive technical regulations and at IMO's involvement in the contractual relations between ship owner and shipbuilder.

　

 Although the "International Convention on Harmful Anti-fouling systems on Ships" was adopted by the Diplomatic Conference in 2001, this issue is still on the agenda of the Marine Environment Protection Committee (MEPC). MEPC 48 adopted Guidelines for Survey and Certification of Anti-fouling Systems on Ships. The guidelines apply to ships above 400 GT in international voyages. An initial survey shall be carried out for new and existing ships, when the International Anti-Fouling System Certificate is issued for the first time. Repairs, affecting 25% or more of the anti-fouling system also require a survey. On-site-surveys shall be conducted in all cases. However, sampling is not necessarily required in every case. However, since only two states (Denmark and Argentina) have ratified the convention so far, entry into force can not be expected in the near future.

　

 An important item on the agenda of MEPC is currently the issue of recycling of ships. The main task for the moment is the development of Guidelines on Ship Recycling, with a view to their adoption by the IMO General Assembly in autumn 2003. The current draft tries to give advice to all relevant stakeholders throughout the lifecycle of a ship, including administrations (flag states, port states, recycling states and shipbuilding states), intergovernmental organisations (ILO, Basle Convention) and industry (ship owners, ship builders and ship repairers, recycling yards). In doing so, it also addresses a number of issues related to design and construction of new ships, such as the development of a "Green Passport", containing an inventory of hazardous materials, to accompany the ship throughout its entire lifecycle and reporting all relevant changes. The draft mentions further requirements for the construction of new ships, such as: using materials which can be safely recycled, minimising the use of materials known to be potentially hazardous to health and the environment, limiting the use of sandwich panels and other such materials that are difficult to separate into their specific individual substances or components and taking measures to facilitate the removal of such materials. AWES is actively participating in the work on this issue. In a submission to the correspondence group, AWES has strongly hold the opinion that the guidelines should mainly focus on hazardous materials and not on facilitation of recycling as such. Otherwise, this could lead to a step back in shipbuilding technique and the development of new materials, such as sandwich panels for example, which are indispensable for the construction of modem cruise ships.

　

 Work on the draft legal instrument on harmful aquatic organisms in ballast water has made considerable progress. The aim is now to conduct a Diplomatic Conference early in 2004 to adopt the convention. A number of issues still need further consideration, such as the concept of "acceptable ballast water", a special requirement in certain areas (i.e. ballast water exchange areas) and the development of appropriate standards for ballast water management, although the originally 14 different standards have now been reduced to two short term standards and one long term standard.