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instructions and procedures in an effort to achieve the safe operation of the ships and protection of the
environment in compliance with relevant international and flag state legislation;
procedures for reporting accidents, or to prepare for and respond to emergency situations, and
procedures for internal audits and reviews.
ISPS Code
In view of growing threats from terrorist activities, recent amendments were made to the SOLAS dealing
specifically with maritime security, most of which are contained in the ISPS Code and impose various detailed
security obligations on vessels and port authorities, which came into effect on 1 July 2004.
Among the various requirements are onboard installation of automatic information system, or AIS, to
enhance vessel-to-vessel and vessel-to-shore communications, on-board installation of ship security alert
systems, the development of vessel security plans, and compliance with flag state security certification
requirements.
Inspection by Classification Societies
Classification societies are independent, self-regulating, externally audited bodies. A new vessel is
classified by a technical review of its design plans and related documents to verify compliance with the
applicable rules of the classification society as well as attendance at its construction in the shipyard by a
classification society surveyor(s) to verify that the construction is in compliance with the applicable rules of
the classification society. In view of the operational elements covered by classification of vessels, we intend
only to invest in vessels certified by major classification societies which are members of IACS such as
American Bureau of Shipping, Bureau Veritas, China Classification Society, Det Norske Veritas, Germanischer
Lloyd, Lloyd’s Register and Nippon Kaiji Kyokai.
Every seagoing vessel is required to be “classed” by a classification society, who will certify that the
vessel is “in class” signifying that the vessel has been built and is being maintained in accordance with the
rules of the classification society and complies with applicable rules and regulations of the vessel’s country of
registration and the international conventions of which that country is a signatory.
In addition, where required to do so by international conventions and corresponding laws and ordinances
of a flag state, the classification society will also undertake surveys on application or by official order, acting
on behalf of the authorities concerned.
The classification society may also undertake on request such other surveys that are required by
regulations and requirements of the flag state. These surveys are subject to agreements made between the
vessels’ classification society and the flag state concerned and/or to the regulations of the flag state.
For maintenance of the class, regular and special surveys of hull and machinery, including the electrical
plant, safety equipment, communication equipment and any special equipment classed, are required to be
performed according to the following schedule:
Annual surveys: This is conducted at intervals of 12 months (from the commencement date of the class
period) for the hull and machinery (including the electrical plant, safety equipment, communication
equipment and any special equipment classed).
Intermediate surveys: Intermediate surveys, which are extended annual surveys, are normally conducted
two and one-half years after each class renewal, and usually carried out on the second or third annual
survey.
Class renewal or special surveys: This is conducted at such intervals indicated by the type or
classification for the hull of the vessel, and is usually carried out every four to five years. In a special
survey, apart from the usual survey of hull and machinery, including the electrical plant, safety
equipment, communication equipment and any special equipment classed, the vessel is thoroughly
examined to determine the integrity of the structure, in particular the thickness of the steel structure. If
there is excessive wear and tear suffered by the vessel, substantial cost may have to be incurred to
reinforce the steel structure in order to allow the vessel to pass the survey.
The classification society may grant a three to six month grace period for the completion of the special
survey. In addition, the classification society may agree with the ship owner on an arrangement whereby the
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