panama maritime authority newsletter

PANAMA MARITIME AUTHORITY
NEWSLETTER
vol. 1 N° 3 FEBRUARY 2009
A MESSAGE FROM THE ADMINISTRATOR
Dear Clients
list of contents
A message from the Administrator 1
Panama ratifies ILO Maritime Labor
Convention
Maritime Authorities of Panama and
Singapore to strengthen ties
Bunker 2001 Convention entered force
january 2009
AMP to lead delegation at Sea Asia 2009
Panama Maritime IX:
The most successful ever
Long Range Identification Tracking (LRIT)
mandatory for all Panama-flagged vessels
New professionals in Mediation and
Arbitration
Panama’s Port volumes grew by 14% in
2008
1rst American Marine Accidents and
Investigators Forum to be held in Panama
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Panama´s Ship Register passed the IMO
voluntary audit with flying colors.
The audit determined that the Register
had no breaches of international
conventions and codes. The audit was
conducted over eight days at the facilities
of the AMP, ending December 15, 2008.
The auditors were from Argentina, Chile
and Spain. The auditors reviewed the
procedures and steps that the Authority
uses to register and inspect ships, as well
as the codes that are used in the country’s
ports.
In late 2005, the IMO adopted a voluntary
plan to audit member countries with the
aim of verifying the degree of compliance
with the agency’s regulations regarding
safety, environment and labor.
In total, the auditors verified Panama’s
compliance with 12 international
conventions, 15 codes and 135 mandatory
resolutions of the IMO. Twenty-two
countries have so far passed the audit.
The results
of the audit
were a
demonstration
of the
seriousness
and
transparency
with which our
administration
meets the
content
of international conventions.
We also would like to express our
gratitude to our Register’s staff for its
valuable contribution and commitment.
This is a step ahead to continue
enhancement in being your Flag of
Excellence.
Regards,
Fernando Solorzano
PANAMA MARITIME LAWS COME INTO FORCE
The Maritime Law 57, dated August 6, 2008,
on Merchant Marine, Law 55 of August 6,
2008 on the Code of Maritime Trade and the
General Law on Ports, Law 56 of August 6,
2008 have come into force at the beginning
of February this year (see Panama Maritime
Authority Newsletter N0.2-December
2008).
The Merchant Marine Law, in its Chapter XIV,
article 174 stipulates that the Administrator
of the Panama Maritime Authority shall be
considered as Minister without portfolio
for the purposes of its participation and
appearance at the Cabinet Council.
Since the implementation of Law 57, the
Administrator will also receive the title of
Minister of Maritime Affairs.
The Directorate of Merchant Marine issued
a new Resolution dated February 9 that
increases the discounts given in Law 57 to new
construction vessels, loyalty to the Register
and transfer of fleets, PSC or detention
reports up to 60% when applicable.
Telephone Exchange +507 501-5100 24/7 Segumar Panama Office: +507 501-5350
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PANAMA MARITIME AUTHORITY
NEWSLETTER
PANAMA RATIFIES ILO MARITIME LABOR CONVENTION
Panama, the largest flag State in the world,
with nearly 25% of the world’s merchant
fleet flying its flag, is the fourth major
shipping country in the world to ratify the
Convention, adopted by the 94th International
Labour Conference (Maritime) in Geneva
in February 2006. Panama’s ratification is
especially significant because, combined
with the ratifications by Liberia, the Republic
of Marshall Islands and the Bahamas (the
next three largest Flag States), it means that
seafarers working on more than 40% of the
world’s merchant fleet will be covered by the
decent work requirements of the Maritime
Labour Convention, 2006 when it enters into
force.
Panama’s ratification also means that one of
the two requirements for entry into force (33
% of the world gross tonnage) is more than
achieved. Progress in many other countries
indicates that the second requirement for entry
into force, ratification by at least 30 countries,
is expected by 2011.
The adoption of the Maritime Labour
Convention, 2006 saw governments,
shipowners and seafarers agree on
comprehensive international requirements for
seafarers’ working and living conditions that
also promote a level playing field for quality
shipping in the rapidly growing maritime
sector. “The decision by Panama to ratify
this Convention underlines its commitment
to taking a leadership role in the maritime
industry and its desire to secure decent
conditions of work for seafarers on its ships,”
said ILO Director-general Juan Somavia.
In September 2008, Panama also played
a leadership role in an important tripartite
meeting of experts to adopt Guidelines for flag
State inspection under the Maritime Labour
Convention, 2006. On 6 January 2009, the
President of the Republic signed Law No. 2,
transposing the provisions of the Maritime
Labour Convention, 2006 into national law.
The Maritime Labour Convention, 2006,
sets out a seafarers’ “bill of rights” and
complements the major maritime Conventions
of the International Maritime Organization
(IMO) on environmental protection and ship
safety and security. It establishes a strong
compliance and enforcement mechanism
based on flag State inspection and certification
of seafarers’ working and living conditions.
This is supported by port State inspection of
ships to ensure ongoing compliance between
inspections.
It is a comprehensive Convention bringing
together and updating 37 existing ILO
Conventions and covers the minimum
requirements for seafarers to work on a
ship, conditions of employment, hours of
work and rest, wages, leave, repatriation,
accommodation, recreational facilities, food
and catering, occupational safety and health
protection, medical care, welfare and social
MARITIME AUTHORITIES OF PANAMA AND SINGAPORE TO STRENGTHEN TIES
In order, H.E. Mary Seet Cheng, Singapore Ambassador to Panamá; Mr. Tay Lim Heng, Singapore Port
Authority CEO; from the Panama Maritime Authority, Migdalia Jaén, General Director for Seafarers; Zoila
Yanisselli, deputy Director of Ports; Gicela Kinkead, deputy Director of Ancillary Industries; Fernando
Solórzano, Administrator and Alfonso Castillero, General Director of Merchant Marine.
The Maritime and Port Authority of
Singapore and the Panama Maritime
Authority (AMP) will strengthen
ties to face the issue of piracy and
further co-operation between flag
states. MPA’s Chief Executive
Tay Lim Heng accompanied by
Singapore Ambassador to Panama
Ms. Mary Seet Cheng visited
Panama last November to meet
the AMP Administrator Fernando
Solorzano and AMP Merchant
Marine Chief Alfonso Castillero,
the Panama Canal Administrator
and Panama’s Chamber of Shipping
president.
The discussions between the two
maritime authorities focused on the
future signature of a Memorandum
of Understanding (MOU) between
both countries to promote cooperation
of Panama and Singapore
as flag states, regional cooperation
to combat piracy and armed
robbery, updates on co-operative
mechanisms, greenhouse Co2
emissions and synergy in maritime
education and training. “It is a good
start,” said Mr. Tay who asked that
the two authorities face common
challenges. “There is the potential
to co-operate more closely,” said
Mr. Tay who Panama to join the
Regional Cooperation Agreement
on Combating Piracy and Armed
Robbery (ReCAAP) and participate
in the next Government Meeting in
February in Singapore, whether
Panama could play a role in the
organization. The Panama Register
has seen several of its vessels
affected by piracy in the Malacca
Straits in recent years, said AMP
Administrator Fernando Solorzano.
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PanCanal Plaza Building, Albrook, Omar Torrijos Herrera Avenue, Panama, Republic of Panama

PANAMA MARITIME AUTHORITY
NEWSLETTER
BUNKER 2001 CONVENTION ENTERED FORCE JANUARY 2009
With Panama’s ratification of the Bunker
2001 Convention, all ships registered under
the Panama flag will be responsible for
any environmental contamination caused
by accidental fuel leakage or hydrocarbon
discharge. They will, therefore, require
additional insurance to cover fuel
contamination. In addition to the ship
owner, the company or person that charters
the vessel, ship manager and the registered
owner will have to pay compensation in
case of accident or negligence on their part
for damages to the environment caused by
lubricants and fuel.
The Bunker 2001 entered force in January
of this year.
A number of other conventions for
the protection of the environment are
been studied by the Panama Maritime
Authority (AMP)’s officials for their future
ratification, including the prohibition of use
of lead paint and the sale for scrap metal
of vessels that transported toxic material
or use their parts to repair other vessels,
said the AMP Administrator Fernando
Solorzano.
AMP TO LEAD DELEGATION AT SEA ASIA 2009
The Panama Maritime Authority will preside
over an important delegation formed by
Panamanian officials and lawyers at the second
edition of Asia’s leading maritime event, Sea
Asia, an event co-organized by Seatrade and
the Singapore Maritime Foundation (SMF).
The event, to be held in Singapore from 21 to
23 April 2009, will bring together Asia’s top
maritime professionals and of the rest of the
world and will be complemented by a large
exhibition in which the Panama Maritime
Authority and the Panama Canal will have a
special Panama pavilion.
Several Panamanian maritime companies have
already booked their own booths to participate
in the conference-exhibition Sea Asia 2009.
At this stage, already five other countries apart
from China have confirmed their participation
through national pavilions. Japan, Korea,
Norway, Panama and host country Singapore,
will present their maritime capabilities and
achievements.
Over three days, visitors will have the
opportunity to learn about the most recent
product and service developments for
the maritime industry. More than 10,000
participants are expected at Sea Asia 2009,
with four in 10 being foreign participation.
Sea Asia 2009 features a major international
exhibition which will in size stretch across
4,500 net square meters - some 60% bigger in
floor space than the inaugural event in 2007.
Extensive social networking opportunities
include a golf tournament sponsored by GAC
on 20 April 2009 followed by a VIP dinner
sponsored by PSA in the evening; a welcome
reception sponsored by the Panama Maritime
Authority on 21 April 2009; plus the Official
Reception sponsored by Keppel Offshore &
Marine on 22 April 2009 in the exhibition
hall.
The AMP Administrator Fernando Solorzano
will participate as a speaker on the third day
of the conference, during the Charterers’
Forum which will be held in the morning of
the closing day. Panama Canal Authority VP
for Market Research and Planning Rodolfo
Sabonge will also speak on the waterway
expansion.
Singapore’s Deputy Prime Minister and Coordinating
Minister for National Security Mr.
S. Jayakumar has accepted the invitation to
be Guest of Honour of Sea Asia 2009. Mr
Jayakumar will officially open Sea Asia 2009
and tour the exhibition on the morning of 21
April.
Themed “The Asian Voice in World Shipping:
Clearer & Stronger”, the opening session of
the Sea Asia 2009 conference will be on the
major bulk trades. The Asian Voice theme will
also be debated from the container shipping
& logistics angle and this session will see
a high-calibre panel chaired by S.S. Teo,
Chairman, SMF and who is also MD of Pacific
International Lines Pte Ltd and President of
the Singapore Shipping Association. They will
examine how the global economic outlook is
affecting the major liner trades, both intercontinental
and intra-Asian, and what this
means for container ship operators, cargo
interests and ports and terminals.
The third thrust of the theme will focus on
the offshore markets and this session will be
chaired by Choo Chiau Beng, CEO, Keppel
Corporation.
A Charterers’ Forum will be held in the
morning of the closing day, which will present
an outlook for the major bulk trades, both dry
and liquid. A separate session will discuss
the currently very hot topic of crewing and
manning.
P.O. Box 0816-01548 Panama, Republic of Panama
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PANAMA MARITIME AUTHORITY
NEWSLETTER
PANAMA MARITIME IX: THE MOST SUCCESSFUL EVER
its Caribbean Sea Cluster president Peter
Grandgaard Gyde. The award, created in
2002 is given to a person or a company
which has strongly supported Panama’s
maritime services, such as the ship registry,
large investments in infrastructure and the
Panama Canal.
From left to right, IMO secretary general Mitropoulos, Panama Canal Administrator Alberto Aleman, Mrs. Gisela Porras, Minister of Trade, Mr. Fernado
Solórzano, AMP Administrator, Mrs. Iria Barrancos President of PM IX Organizing Committe.
The international maritime community
gathered in Panama for Panama Maritime
IX World Conference & Exhibition, which
took place February 9-11, 2009. Over 400
delegates participated in the conference that
was inaugurated by IMO Secretary General
Efthimios Mitropoulos. More than 40
international and Panamanian companies of
the sector exhibited their latest technologies
offering excellent networking for all
participants.
The bi-annual Panama Maritime IX
World Conference & Exhibition is jointly
organized by Panama Maritime Law
Association (PMLA) in association with
Panama’s Chamber of Shipping and with the
undivided support from the Panama Canal
Authority (ACP) and the Panama Maritime
Authority (AMP). It was the most successful
ever, according to the organizers.
In his inaugural address, IMO secretary
general Efthimios Mitropoulos praised
the organizers for wisely designing the
conference and highlighting “some of
the key issues facing shipping nowadays
and attracting such a high-profile of
participants.” The prestigious conference
is now firmly established as one of the
highlights of the shipping industry calendar,
said Mitropoulos who told the attendees that
Panama had taken the right decision when it
came to expanding the Canal. He added that
if any lesson had been learnt in the hundred
years of its successful operation, “one of
them will surely be that this is a long game,
not a sprint but a marathon.”
Panama Maritime Authority Administrator
and Minister of Maritime Affairs Fernando
Solorzano explained to the audience the
achievements of the new Merchant Marine
law which entered force February 9, two days
before the inauguration of Panama Maritime
IX. “Thanks to the new Merchant Marine
Law, the [Panama] Register will be more
competitive since it provides the Merchant
Marine Directorate with the capacity to
adapt to the changes of the international
maritime industry with a modern and
flexible regulatory framework in line with
the achievements and modernization of the
Maritime Authority,” said Mr. Solorzano.
The Director of Merchant Marine
Ing. Alfonso Castillero presented a
reconstruction of the investigation
of Mezzanine sinking and a detailed
explanation of the new International Code
on investigations and maritime accidents
implementation that will come into force
Maersk´s Caribbean Sea Cluster President Peter Grangaard Gyde recieves
Panama Maritime Award.
The 2009 Maritime Excellence Award was
presented to Maersk Line and received by
The Director of Merchant Marine Eng. Alfonso Castillero addresses PM IX
audience.
4 PanCanal Plaza Building, Albrook, Omar Torrijos Herrera Avenue, Panama, Republic of Panama

PANAMA MARITIME AUTHORITY
NEWSLETTER
LONG RANGE IDENTIFICATION TRACKING (LRIT)
MANDATORY FOR ALL PANAMA-FLAGGED VESSELS
Starting on 1 January 2009, Long Range
Identification Tracking (LRIT) is now
mandatory for all Panama-flagged vessels
over 300gt engaged in international trades.
After an international bidding process,
Vizada and service provider partner Absolute
Maritime Tracking Systems have been
selected by the Panama Maritime Authority
to provide long range identification and
tracking (LRIT) for the more than 8,000
eligible vessels that must comply with the
new regulations that become compulsory
for all SOLAS ships since January.
LRIT is the process of sending automatic
position reports from vessels that are stored
in data centers and made available to the flag
states and LRIT obliges vessels to transmit
an automatic position report (APR) with
the ship’s identity and position a minimum
of four times a day. Introduced by the
International Maritime Organization (IMO),
LRIT is a mandatory requirement for vessels
on international voyages for safety, security
and search and rescue purposes. The APR
is transmitted via a mobile satellite terminal
such as Inmarsat-C to the Flag Authority
application service provider with which the
vessel is registered.
Absolute Maritime Tracking Systems,
specializes in maritime security
communications, coordinates directly
with Vizada to retrieve the APR data, in
turn reformatting and delivering it to the
Panama Maritime Authority data center and
Vizada is among the few mobile satellite
providers capable of delivering APRs from
the vessel to the LRIT control centers via
the Inmarsat satellite, through its network of
wholly-owned and operated mobile satellite
teleports.
At the moment, Absolute Marine Tracking
Services Inc hosts an official Panama Data
Center located at the company’s headquarters
in Boston, USA but Panama will install its
own data center, hopefully before July, and a
24/7 call center to service not only the AMP
but also all the maritime industry.
NEW PROFESSIONALS
IN MEDIATION AND
ARBITRATION
Thirteen collaborators of the
Panama Maritime Authority have
successfully concluded their diploma
in Alternate methods for the solution
of conf licts and techniques of
negotiation, mediation, conciliation
and arbitration that will give them
official reconnaissance by the
Ministry of Government and Justice.
The participants were lawyers from
the AMP Legal Department and from
the Compliance and Control unit.
PANAMA’S PORT VOLUMES
GREW BY 14% IN 2008
Panama’s throughput grew by 14.16%
to 4,651,556 Teu with all terminals
featuring double digit growth with the
exception of Evergreen Colon Container
Terminal (CCT) that fell by 20.37%
to 616,502 Teu. Balboa registered a
growth of 18.22% to 2,167,977 Teu and
Cristobal 49.57% to 249,244 Teu while
MIT posted a 25.07% increase with
1,600,792 Teu.
“We forecast a modest growth in 2009
because of the global economic crisis
although we anticipate a rebound
in activity in 2010,” says Fernando
Solorzano Administrator of Panama
Maritime Authority. “PSA-Panama will
begin operations next year and Panama
Ports, CCT as well as MIT, will conclude
their expansions that will greatly increase
the capacity of all terminals,” he adds.
“We are confident that shipping activity
will continue to grow”.
1rst AMERICAN
MARINE
ACCIDENTS
INVESTIGATORS
FORUM
March 8-12, 2009
Panama
1rst MARINE ACCIDENTS
AND INVESTIGATORS
FORUM TO BE HELD IN
PANAMA IN MARCH
The first Latin American forum on Marine
Accidents and Investigation will be held in
Panama from March 8 to March 12. The
forum aims at gathering Latin American
countries and creating a regional entity that
will be dedicated to the advancement of
maritime safety and develop cooperation
between countries for the purpose of
improving and sharing knowledge on
maritime investigations.
We welcome our customers’ suggestions and comments.
Please contact us at: marketing@amp.gob.pa
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