Uniformed services in India and the Enron issue - similarities?

Not directly related to the Indian Merchant Navy, but close enough, and a sensible read.

http://www.moneylife.in/article/preventing-enron-like-scams-in-the-armed-forces/26457.html

Do read it . . . 

The case being made to reduce wages for Indian seafarers

Are Indian seafarers pricing themselves out of the market, and if so, what can be done? That was the question put to me and initially, with the accompanying data viewed in purely mathematical terms, it did appear to be the case.

For example, and all figures approximate, in USD and basis contractual wages per month or pro-rata. Indian officers are typically between these two figures.

Newly promoted Master/Chief Engineer: North-West European countries  / 13000 and Far East Developing countries  /  6500

Entry level 3rd Officer / 4th Engineer: North-West European countries / 5300 and Far East Developing countries /  2200

The argument or hypothesis put forward is that Indian officers need to voluntarily start accepting salaries closer to the salaries accepted by officers from the Far Eastern countries if they don't want to see themselve being out-priced from the market. Obviously, this does not take into account flag-state requirements, and applies more to open
register employment opportunities - though even some flag states are now relaxing this when it comes to employing foreign nationals on their ships.

This would be correct if the maritime industry was a simple operational industry, where the financial aspects over-rode everything else, and humans could be increasingly replaced by machines and computers. Or treat the sailor as sub-humans. To some extent, that is the way the industry has evolved over the past 2-3 decades, but there is simply no more elasticity left in the constant battle to reduce head-count on board by every means possible. How much more can the owners and flag states play around with so-called safe manning, before port states start imposing their own conditions, is already being played out.

If anything, as enquiry reports in more than a few accidents have shown lately, fatigue and lack of competence are the two biggest reasons going hand-in-hand while safety and efficiency take a beating. Certificates of competency and time-sheets are one thing, realities are another, and ship-owners as well as operators must realise that the issue is deeper than just salaries or rather the daily-wage kind of contractual numbers.

One solution would be for the same people advocating further reduction in head-counts to spend some time on board real working ships, as pursers, to try and understand the realities involved. And on terms and conditions as applicable to 3rd Officers.

Because. Then only will management, especially financial management, learn that the modern young seafarer, as with any other career professional, is looking for more than just money. There are two other very important parameters involved:- future potential and respect at the workplace. Nothing more needs to be said or written on how both these paramters have gown downhill over the last 2-3 decades.

Not that salaries have kept pace either. Compared with other avenues open to younger people, merchant navy salaries have not kept up. Simple as that.

Speaking with a few youngsters in the Merchant Navy on the subject, one can understand their frustration - managements tend to ignore the fact that their frontline operational staff expect more than just money. Leave alone a reduction in wages, many of them were of the opinion that even doubling of wages without improving working conditions and future potential meant nothing to them.

Which takes me back to the solution - which has to go back to basics. Tthe Indian seafarer was and should still be linked to the Indian flag ships. That is where the solution lies - there will be no dearth of very well qualified people willing to work for lower salaries as long as the other two parameters of respect at the workplace and future potential are met. Sadly, the Indian flag shipowners have defaulted on this responsibility terribly over the last few decades, and this needs to be resolved first.

If, hypothetical if, the Indian shipowners simply matched terms and conditions offered by the Indian Navy to theiir younger officers, then many of the same younger officers see no reason why a 20-year working life could not be something easy to achieve. With all the other benefits that accrue to shipowners able to plan for the future. And more.

The example of the coastal and foreign going Chinese flag fleet can be quoted in this context. The example of how many of us in the '70s and '80s chose to stay on with Indian flag vessels at lower salaries for the same reasons can also be quoted.

By all means, think about reducing salaries to make the Indian seafarer more competitive, but it can not be a stand-alone. It may sound strange, but bench-marking the Indian Navy for this is not such a wild idea - the two services have always been related and till not too long ago, the best who came out of the Training Ships actually went to the Indian Navy.

The rest, the not so best, or the better than most, take your pick, can then certainly work in the open registers.


And there, let market forces decide.

A Master Mariner speaks out about fishing on the Indian coast . . .

Identity protected by request. Comments welcome:-

BTW: That article in Moneylife about another incident of loss of fishermen's lives off Kerala - I wish there would be some scathing reportage on the manner in which the fishing boats are allowed to operate. They display lights that are anything but Colreg compliant. They jam VHF frequencies with their ceaseless chatter seriously interfering with watchkeepers concentration and ability to send out/ listen in on safety/distress traffic. They always want/claim right of way - even when they are not engaged in fishing and thus are just power driven vessels. They cut across bows with gay abandon giving heart attacks to young OOW's who may have been given strict CPA's to maintain by Masters in their standing/nigt orders.

There is not a single 'no-fishing' zone established at the entrances by any of the coastal state governments for any of our busy ports. Mumbai port approaches are a nightmare for navigation due to the clutter of fishing boats. The DGS shrugs its shoulders (in reality it has no powers over fishing vessels and near coastal and inland waterways vessels). Coastal admins do not enforce even the basic requirements e.g. radar reflectors, proper nav lights, clear display of registry and name (so that ships can report violations), they do not publicise the means of lodging complaints e.g. contact details and address of office responsible etc - against navigation rule violations.

It's a mess. Those guys getting run over - they asked for it. I have no sympathy for them - having faced inumerable anxious moments myself in my career. All this whine they give about nav lights being costly or radar reflectors or painting their boats brightly (for better visual detection) is bunk. Or claiming that they have the right to impede safe navigation in constrained waters (e.g. port entrance zones) when they clearly know that the freighters too have every right to navigate in safety.

+++

This is the article referred to:-

http://www.moneylife.in/article/maritime-incidents-involving-fishermenmdasha-deeper-issue-impacting-our-global-economic-status/24024.html

+++

More of my stuff here:-

http://blogs.timesofindia.indiatimes.com/Diary-of-a-Divorced-Delhi-Male/
http://matescabin.blogspot.com/
http://joyroc.blogspot.com/

http://www.flickr.com/photos/vm2827/

Italian ships, Indian Navy, and the Arabian Sea

On one side, in the ENRICA LEXIE case, the Italians are going ballistic about the capabilities, fairness, investigative skills and even judicial integrity of India. They also question the Indian Navy and Indian Coast Guard's right to take action a few miles off the Indian coast.

On the other side, for the Italian passenger ship COSTA ALLEGRA, the Indian Navy provides air support, air back-up, food drop and more - and this one, the ship is near Seychelles, almost along the coast of Tanzania.

http://www.telegraph.co.uk/news/worldnews/europe/italy/9110381/Costa-Allegra-cruise-ship-filmed-from-the-air-by-Indian-navy.html

and:-

http://www.bbc.co.uk/news/world-africa-17186829

Here, the Italians say:- ""The ship is at the southern end of the seas that are vulnerable to attacks by Somali pirates. But a government spokesman told the BBC that attacks in the area had decreased in the past year as security improved.""

Make your own judgement. If you ask me, all these Italian ships need to now have a tug in front and one behind, for safety reasons.

Safety of other users of the oceans and seas.

(The COSTA ALLEGRA lost all power after a fire onboard and is adrift right now. The Indians provide the SAR support in this part of the world. That includes SAR for fishing boats attacked by merchant ships, by the way.)

Is the Enrica Lexia a 2nd Purulia armsdrop case?

Here's my article on the Enrica Lexie / St. Antony case in context with the murder of two Indian seafarers - and as the shipping brass descends into Cochin, in full form to celebrate the inauguration of the Cochin MMD office, the question needing an answer is this - is this a Purulia Armsdrop kind of case?

http://www.tehelka.com/story_main51.asp?filename=Ws240212Opinion.asp

And here's a copy of my recent letter to the office of the DGS . . .:-

+++

Do let me know what you think, and can anybody understand the position of the poor souls on board, the Indians - what happens to them when they finally disembark and all this nonsense of "diplomatic immunity" for the ship when the Port State Control has full authority, gets over?

I mean, our PSC struts around like monkeys otherwise, where are they now in this case, can't even go on board for an inspection, stop the ship on any of a few dozen deficiencies, as usual, and make their little petty haftaas?

++

Letter to DGS:-

Good morning and hope you and your colleagues have a pleasant visit to Cochin.

Here is the latest article by me on what is now increasingly being referred to as "Purulia 2".

http://www.tehelka.com/story_main51.asp?filename=Ws240212Opinion.asp

I think DG Shipping should have played a far more pro-active role in this episode, especially when the initiative was with them. Now the whole mess of the DGS is being opened like a can of worms and I feel sorry, though vindicated.

Good luck, and I hope you preside over a major clean-up and shake-up at DGS.

Veeresh Malik

New Delhi

Enrica Lexie - what lessons should we learn?

This is the 4th article by me on the subject of the Enrica Lexie/St Antony episode.

http://moneylife.in/article/killing-of-indian-seafarers-off-keralamdashwhat-lessons-need-to-be-learnt/23839.html

The first three are also on this blog as well as linked through the main pages at http;//www.moneylife.in

Incidentally, the pressure on me to stop writing or change my stance is extremely high, including veiled threats. Such is life. Such us shipping, too.

Please do read the articles as well as many of the interacts and responses, they are truly informative.

Your views and comments, publicly here or privately to me, will be appreciated and identites protected as always.

Why shippies don't drink "On The Rocks"

And here's a bit of a light-hearted piece by me for the Times of India on the subject of shippies, climate change, alcohol, mosquitoes and more. Including CoC . . .

http://blogs.timesofindia.indiatimes.com/Diary-of-a-Divorced-Delhi-Male/entry/never-on-the-rocks-please

Brilliant hard-hitting interview of DG Shipping Dr. SB Agnihotri in latest SAARC Journal of Transport

Full interview shall be posted soon. Interim, excerpts:-

"The Directorate has immense scope for corrupt individuals to thrive. The age-old practices, rigid rules and regulations provide enough fodder for manipulation. The MMD, a major department under the Directorate, is known for over regulation, micro control and unfair practices."

From the day I was a cadet on the TS RAJENDRA, I was exposed to blatant corruption in the system, and all was kept quiet under a sort of "omerta" (Mafia code of Silence) - whether it was the pre-joining classes held by "HorsePiss" the Chief Steward's sister which guaranteed admissions, the vouchers signed for recreation of cadets which were used for Plaan's parties, the lousy food we got, the terrible sanitation, how we were taught to fudge records for LSA, FFA and Medical as a part of our training, and all the rest that went with it.

When we got down for our "tickets", we knew where to go for "sets", how to find out which "set" was going to come, how to fiddle the writtens, how to set-up orals with certain examiners (I sailed with one of them after that, and he would regale us with tales of how much for what and by whom . . .)

Moving on to chartering, forwarding, and more, and then the whole thing of dealing with the offices of the DGS and MMD and more . . . what, after all, does a welfare officer do? How do you trust a National Association of Shipowners where most of their fleet is flagged out?

All this, and more, but wait for the full interview. Or subscribe to the magazine . . . .

http://www.saarcjt.com/home

What's your income tax and service tax status as an Indian seafarer?

Before you read further and before I proceed further, it is important to point out that this is by way of my understanding of a very complex subject drawn basis my research, and is in no way supposed to be an advisory or comment or guidance. PLEASE do consult your own tax advisor under all circumstances. I am not a professional tax person and this does not claim to be anything other than my views, issued without guarantee. This was the fine print.


+++


As a seafarer, when was the last time you looked closely at the TDS (Tax Deducted at Source) Certificate given to you by the shipowner, agent or shipmanagement company> Broadly, this could have been:-


# A Form 16 - which makes you, in aspects, an "employee" earning an "income" from the company or entity issuing you the Form 16. As per a variety of laws, rules and more, the said employer MUST also adhere to issues like leave wages, Employee Provident Fund Organisation (EPFO) adherences, Articles of Agreement while onboard ship if applicable, the MUI or IMB or similar agreement on perquisites, Income Tax Act and the various aspects thereof. No need, however, of worrying about Service Tax here - as of now, and to my best understanding, when working on Indian flag ships.


For those claining tax exemption on NRI status, and having no Form 16 or 16A, this may be helpful too, towards a better understanding of Section 5(2) and related.


http://taxworry.com/is-salary-received-in-nre-account-in-india-for-services-rendered-outside-india-by-a-non-resident-taxable-in-india/


# A Form 16A - which makes you, for this purpose, a recipient of either a "fees for professional or technical services" or "payments to contractors and sub- contractors". And here, you are most increasingly over the last few years, going to be liable for charging service tax to the company that made these payments to you.


+++


So, what's Service Tax in India all about, then?


Here are the FAQs on service tax:-


http://www.servicetax.gov.in/faq-29sept11.pdf


Q:- "Who is liable to pay service tax?
Ans:- Normally, the "person‟ who provides the taxable service on receipt of service charges is responsible for paying the Service Tax to the Government (Sec.68 (1) of the Act). However, in the following situations, the receiver of the Services is responsible for the payment of Service tax : (1) Where taxable services are provided by foreign service providers with no establishment in India , the recipient of such services in India is liable to pay Service Tax.


Q:- Are seafarers exempted?
Ans:- NO.


++++


Now, what is the shipping industry in India, doing about this?


++++


As far as the Indian National Ship Owners Association (INSA) is concerned, this judgement pertaining to Service Tax referring to them may be of interest, and please note, obviously service tax will apply to resident Indians also.


http://taxworry.com/is-salary-received-in-nre-account-in-india-for-services-rendered-outside-india-by-a-non-resident-taxable-in-india/


http://www.servicetax.gov.in/st-cirmainpg.htm


(quote) 


""Sub: Applicability of service tax on taxable services provided by a non-resident or a person located outside India to a recipient in India-reg.


Kind attention is invited to instruction F No. 275/7/2010-CX8A, dated 30.6.2010, wherein the Board had communicated its view that services tax on a taxable service received in India, when provided by a non-resident/person located outside India, would be applicable on reverse charge basis with effect from 1.1.2005, and that the ratio of judgement in M/s Indian National Shipowners Association (INSA) case [2009 (13) STR 235 (Bom)] would not apply to such cases. Further, direction was issued to field formations to defend the levy of service tax on such services for the period on or after 1.1.2005, as post INSA judgment, it has been held by the High Courts/Tribunal in a large number of cases, applying ratio thereof, that service tax on such services is leviable only w.e.f. 18.4.2006. However, the appeals filed by the department before the Hon’ble Supreme Court, for defending the levy of service tax on such services w.e.f. 1.1.2005, have been dismissed recently (subsequent to the issuance of said instruction dated 30.6.2010) in the following cases.






(i) SLP (C) No. 29539 of 2010 in CCE Vs Bhandari Hosiery Exports Ltd


(ii) SLP (C)No. 18160 of 2010 in CST Vs Unitech Ltd


(iii) SLP (C) No. 34208/09 of 2010 in UOI Vs S R Batliboi & Co.


(iv) SLP (C)No. 328/332 of 2011 in UOI Vs Ernst & Young


(v) SLP (C) No. 25687-25688/2011 in CCE Vs Needle Industries


(vi) SLP (C) No. 25689-25690/2011 in UOI Vs SKM Engg Products






Further, Review Petition No. 1686 of 2011 filed in the case of Bhandari Hosiery has also been dismissed by the Hon’ble Supreme Court vide order dated 18/8/2011.






2. In view of the aforementioned judgments of the Hon’ble Supreme Court, the service tax liability on any taxable service provided by a non resident or a person located outside India, to a recipient in India, would arise w.e.f. 18.4.2006, i.e., the date of enactment of section 66A of the Finance Act, 1994. The Board has accepted this position. Accordingly, the instruction F No. 275/7/2010-CX8A, dated 30.6.2010 stands rescinded.






3. Appropriate action may please be taken accordingly in the pending disputes.


Yours faithfully,










(G. D. Lohani)


Director (Legal)


Copy for information to:


(i) Member (Budget)/Member (ST)


(ii) Joint Secretary (TRU-II)/Commissioner (ST)-CBEC"" 


(unquote)


+++


Please consult your rax advisor and PLEASE get opinions in writing. If your ship-owner company or ship-manager company or any of the multiple via medias in between say something else, then please take it in writing too.


AND please note:- dual "agreements" of the sort that are being used on Indian ships are just adding to your liabilities. Please be careful about those, also.


++++

Does the West expect India to be their policeman for free in the Indian Ocean?

"Oceans Beyond Piracy" (OBP) held a 2-day seminar in Delhi on the 18th and 19th of November 2011, of which the first day was open to a larger audience while the second day was only for stake-holders.

On day-1, the speakers included the representatives of OBP and facilitators from the United Nations, as well as senior people from the Indian, Bangladesh and Sri Lankan Navies. The absence of anybody from the Indian shipping companies was indeed surprising. There were, however, many representatives of the foreign shipping company agents present in India, including people from FOSMA and MASSA companies.

OBP is a privately funded effort by a Somali origin resident of the US, who is trying to get stake-holders to do their bit in a larger holistice view of ground realities in and around the Horn of Africa. The focus is, also, on relieving the NATO, EUNAVFOR and US forces in the area if possible to look after other pressing issues in the region.

A call was made for the Indian Navy to take on more of a role. However, simple fact remains, a large proportion of the ships transitting the piracy areas and at risk are flying "Flag of Convenience" and by rights it is the responsibility of their flag states to provide security to them. This is the big issue - because most ships plying on FOC basis are owned by companies registered in tax havens - but it is the tax-payers money which is supposed to foot the bill.

There is a mis-match here somewhere which was brought out on the sidelines of the event. The Western world, with its own disputed base at Diego Garcia, can not expect the Indian Navy to play policeman for free in what is essentially a global issue - the issue of rampant FOC ships owned by owners hiding behind tax havens plying the trade lanes.

Well meaning initiative seemingly backed strongly by the US Government, but it has to be fair to other Governments and people in the Indian Ocean, also.

More about OBP here:-

http://oceansbeyondpiracy.org/

Photographs are available here in reverse chronological order:-

http://www.flickr.com/photos/vm2827/6450802523/in/photostream

A request to all those with complaints against Owners, Agents, DGS-MMD or others.

http://matescabin.blogspot.com/2011/10/blacklist-of-defaulting-owners-and.html

The number of hits and views on this article are surprising me. I agree, the authorities have been their usual delightfully vague selves as usual, that is what the truth is so what else is new - and so many of you appear to have no other avenues to take your issues to. It is well known that matters are reaching a point of intense frustration with seafarers for a variety of reasons and there often seem to be no options/

Agreed, I shall help, to the best of my resources.

But in all fairness, anonymous and slanderous complaints will not be entertained. And violence is certainly not an option.

I would like to see signed hard copies of complaints, if any, and shall protect identities wherever required. This is the least one can do, because more than a few messages of complaint appear to be motivated, and also appear to be from competitors trying to give other management companies a bad name. How do I know this?

Well, it is quite evident by the pattern - there appear to be some set group or groups which are targetting other management companies, and so, not over my shoulder.

If you are an individual seafarerer, however, please feel free to write to me, and I shall take it from there, step by step, to my best abilities.

Thank you and humbly submitted.

India's real maritime history, and why SCI's Golden Jubilee should be a wakeup call

Indian shipping industry not shipshape, despite 50 years of SCI being around


http://moneylife.in/article/indian-shipping-industry-not-shipshape-despite-50-years-of-sci-being-around/20404.html

As the shipping industry globally reinvents itself once again, where does it find India’s position—and why is the answer ‘dismal’ when in reality it should be ‘brilliant’?

+++




+++

Life onboard a merchant ship - a true exchange

Mails exchanged with a batchmate and friend . . . after my 6 days on a ship after 29 years:-

Me:- ""The big difference is that we used to have "after work time" for socialising, now it seems we don't have it. You work, then you work some more, and then you collapse with fatigue. When do you read books, socialise, listen to music, eat food as a means of exchanging conversation?Where is the space for intellectual evolution??""

Batchmate:- ""Believe me there is no time. For instance today I am at Mumbai inner anchorage and have been awake for almost 36 Hrs, because of port arrivals and other formalities, followed by  so many inspections and surveys going on. To top it up I have 11 persons from my Technical office which incidentally is in Mumbai. Even though I have shore pass but there is no time to go ashore, I can see the tall buildings of Mumbai and enjoy. Life on board with this e mail system has become really sad as people want instant replies and solutions. Guess it is the same story for people working ashore. All the best take care and keep writing.""

+++

And we want to try to attract the best of the best to the Merchant Navy??

+++

(This has been one of the most popular posts on this blog . . . I guess maritime fatigue and inhuman conditions on board ships tell??)

Please read this?



http://moneylife.in/article/how-coastal-and-inland-shipping-has-been-allowed-to-die-and-what-needs-to-change-quickly/19609.html



      How coastal and inland shipping has been allowed to die and what needs
to change quickly
      September 09, 2011 01:38 PM |
      Veeresh Malik

Published at http://www.moneylife.in/

The wars of the present and the future are going to be fought using economic tools more than military might. Building this economic power requires the revival of seafaring strength that was allowed to deteriorate on account of a short-sighted and corrupt approach.

Before you take down a fence, you might want to know why the previous owner put it up.
- GK Chesterton

More on the mt PAVIT (IMO 9016636)

As quoted in today's Times of India:-

http://timesofindia.indiatimes.com/city/mumbai/Pavit-set-adrift-near-city-on-purpose/articleshow/9510708.cms

MUMBAI: The drifting of Panama-flagged MT Pavit to the Mumbai coast still remains a mystery but experts in the maritime industry feel the vessel may have been brought close to Mumbai on purpose and set adrift.

Veeresh Malik, expert on shipping and marine security issues, said, "There had to be some sort of intervention to ensure the ship stayed afloat. MT Pavit is not even in decrepit condition. This means the vessel remained afloat by way of tow or because some basic repairs were carried out."

The ship was reported to have sunk after it was abandoned off the Oman coast on June 29. The crew members of the abandoned vessel, which ran aground at Versova beach on July 31, were rescued by a US naval ship and brought to Kandla by Jag Pushpa.

Pointing out that the "winds and currents at this time of the year would not push the ship southwards down from Omani coast" towards India, Malik said, "It should have drifted towards the Gulf of Kutch. The fact that it moved in the direction of Mumbai leads to suspicion that it did get some assistance."

It is implausible that an abandoned vessel can drift for miles without being detected, especially in one of the world's busiest shipping lanes. "If a ship is unmanned, then it would not transmit any recognition signals on its AIS (automatic identification signals). However, if a ship transmits its AIS, then somebody has to be tracking its movements. This is the standard operating procedure for owners and insurers."

A member of the ship breakers' association said, "After MT Pavit was abandoned, there were no reports to indicate that its owners/insurers were trying to have it towed or repaired. It is the moral duty of the shipping company to save the life of crew members and salvage the ship."

He said MT Pavit's owners could have easily arranged for it to be towed to the Oman coast for repairs. "It is a mystery why the owner did not do this as the hull of the ship is in good condition and there is nothing to indicate a fuel leak."

Here's an RTI on l'affaire RAK AFRIKANA that I filed . . .

To:-

 

Shri S.G. Bhandare, PIO, or incumbent PIO, under RTI Act of India 2005,

Public Authority the Dy. Director General of Shipping,

Jahaz Bhavan,Walchand H. Marg, Mumbai - 400 001 ( India)

 

dtd: 10th May 2011

 

Greetings & Jai Hind!!  Most humbly request information under the RTI Act of India, 2005,  please provide me with the following information. THIS INFORMATION IS SOUGHT IN THE PUBLIC INTEREST, AND THERE IS OVER-RIDING PARAMOUNT LARGER PUBLIC INTEREST TO BE GIVEN THE INFORMATION I HAVE ASKED FOR.

 

+++

 

INFORMATION REQUIRED:-

1) Please provide me a certified copy of following documents held by or available to your public authority. I would also like to inspect all concerned files online personally at New Delhi.

a) Please provide me with full style and address of the RPS agencies involved in recruiting and sending Indian seafarers on board the following vessels which have been hijacked/pirated for the period from 01 January 2010 onwards:- mv RAK AFRIKANA, mv ASPHALT VENTURE and mv SININ.

 

b) Please provide me with full style and address of the entities who are registered owners, beneficiary owners, desponent owners, tax-haven owners, secret owners, any other owners, as well as any entities holding lien on vessel and cargo of the above ships with Indian seafarers onboard:- mv RAK AFRIKANA, mv ASPHALT VENTURE and mv SININ.

 

c) Kindly provide me with information on whether contact has been established by DG Shipping with the entities mentioned in 'a" and "b" above, and if so, details thereof.

 

d) If any of the above said statutory records is not available, the complete details of how it was destroyed / weeded out in each case..

 

e) Electronic access to the catalogue (or catalogues) of all records of your public authority duly indexed in a manner and the form to facilitate right to information, either over the computer networks or in the form of a diskette or other electronic media at the prescribed fees.

 

Sent by eMail and signed hard copy, (signed) and humbly submitted,

 

 

Veeresh Malik,  D-61, Defence Colony, New Delhi - 11oo24   (mobile: 00-91-99118-25500)

 

Note 1:-Application fee of Rs. 10/- in cash shall be submitted within 30 days as per procedure laid down by DoP&T at PIO, DG Shipping, Mumbai, or at any one of the nominated APIOs located at the specified Post Offices in India, and a copy of this application along with receipt shall be sent to you co-terminus. Interim, you are requested to commence processing this RTI Application as per the RTI Act-2005 with effect from date of submission of this electronic copy, also as per the RTI Act-2005.

Note 2:- The public authority, Office of DG Shipping, Mumbai, has not yet published their arrangements to accept / accompany electronic payments for e-filings as per section 6 of the Information Technology Act 2000, is requested to do same, - and hence I am constrained to go to extra expense / trouble to file a routine email request by Postal Department also.

+++

mv WISDOM grounded off Juhu, Mumbai Part I

Here's the first article I did at MONEYLIFE on the grounding of the WISDOM off Mumbai.

http://moneylife.in/article/why-was-the-mv-wisdom-allowed-to-get-so-near-the-bandra-worli-sea-link/17245.html

Why was the MV Wisdom allowed to get so near the Bandra-Worli Sea Link?
Did the container ship being towed to the Alang junk yard have permission to sail so close to the coast and sensitive Bombay High oil installation? Who plotted her course? And how come nobody interrupted her voyage

Rule paramount which is drilled into our heads right in the beginning of our training is: All seaworthy merchant ships have a right of innocent passage through non-inland waters worldwide. However, a ship headed for scrapping, either under her own power or tow, does not come close to land or coast, as far as possible, for multiple reasons. If she does, then she needs to inform the authorities, who will then decide if she is to be provided with what is known as "the right to innocent passage" guaranteed to all seaworthy ships of all nations. Because a ship headed for scrapping is not seaworthy. And if a national authority wishes to, it can certainly deny her the right of innocent passage through her territorial waters, till a point where she has to enter the territorial waters for scrapping, or with precautions to prevent exactly what happened with the Wisdom.

Will DG Shipping soon face the next DGCA kind of probe?

And why not, then, when the truth is known in every back-lane and side-lane near every port.

This article from today's MINT is self-explanatory:-

http://www.livemint.com/2011/05/05234419/DGCA-warns-staff-with-kin-in-a.html


DGCA warns staff with kin in airlines

Regulator bars officers from taking decisions about carriers where their wards work to avoid conflict of interest.


Can we start thinking about whether the DG Shipping, Mr. Agnihtori, would consider implementing something like this at the DG Shipping and other allied offices, to start with?

Indian Ocean - Conflict Zone?

Another article which makes a lot of sense on what is going on is this one:-

http://www.claws.in/index.php?action=master&task=803&u_id=150

"In the contextual reference of Indian Ocean emerging as the world's next big
theatre of conflict, the increasing Chinese military presence and activities in
Pakistan acquires a compelling and new threat perception . . ."

"The author of the book argues that the Indian Ocean region will be the
principal theatre of conflict among the United States, China, and India."

The israelis And russians do it better

More about piracy here.

http://moneylife.in/article/piracy-on-the-high-seas-how-do-israel-and-russia-combat-this-menace/14705.html


Piracy on the high seas: How do Israel and Russia combat this menace?
March 14, 2011 03:19 PM |
Veeresh Malik

A number of foreign flagships have their own armed personnel on board, they call them “seamen”, and organise documents for them from the flag state. But India has made it extremely difficult for armed personnel to sail on board Indian merchant  flagships

In the world of shipping, flags and nationalities often have interchangeable meaning, and it is not unusual for ship-owners and ship-operators to not just burn the candle on both ends, but also cut the candle up into small pieces, burn it at every end, and then burn it lengthwise too.

The history of almost every major shipping company is littered with evidence and anecdotes of what could best be called "extreme free enterprise"-slave trade, narcotics, arms, sanctions, colonial ambitions-nothing is or was impossible.

A roll-call of some of the major shipping interests around today, especially the 'Old Money' sorts from Western and Middle Europe, will show how as recently as during World War II, fleets were literally divided up to serve on both sides. That's nothing new. Somebody has to win, it made sense to cover all bets-this is also called hedging.

Some day soon, we shall also discuss derivates in the same context.

And of course, yesterday's gunrunners making their futures in and around Africa and Asia are today's corporate darlings, with shipping histories conveniently ignoring the truths. The only loyalty is towards turning over a faster profit, at any cost, especially when new flags can be rented by the hour.

Mongolia's maritime ambitions are the latest example, where anything goes.

So, in a way, why blame the poor Somalians-after all, if they were wearing suits tailored from bespoke outlets and could just knot their ties better than they do their lungis, they would not really look very different-and the flag would not really matter. Every European nation worth its colonial history has a few dozen flags lying spare here and there in the rest of the world-so what if they had to let go a Hong Kong or Singapore?

Here a fact: reading up on the small nation-states that still owe allegiance to the victors of the World War II, ostensibly fought on the basis of "freedom for all", is indeed extremely revealing. Thing is, there are so many of these little-little countries, mostly islands here and there, that it is quite a long read.

But it helps to understand shipping, and to figure out why shipping companies love them, too. It may be a bit difficult to memorise and sing so many new National Anthems, but hey, they can always buy a CD. Here's another fact: newer the country, easier the Flag of Convenience, and often prettier the flag.

But there are always exceptions. For some people, for some flags, never forget. And the Israelis stand very, very tall in this. In fact, their flags are the tallest in the world. Today, their ships sail past the pirate areas of the Indian Ocean, without challenge. A friend who was a Master on one of their Zim Line ships relates an episode of how while other ships would creep past in full black-out conditions, they would barrel through the piracy areas with all lights on and with floodlights shining on the funnel as well as name and port of registry. Every time. Nobody knows if the pirates out there can read Hebrew, so the name is also painted on in English.

Into this world we bring our gentle and loyal readers a small touch, a faint whisper of a part of a chapter in a huge book actually, of the amazing real-life story of the Ofer Brothers. Apart from owning the Israeli shipping behemoth, Zim, the Ofers are also known to own and control Tanker Pacific (one of the largest oil-tanker operators in the world) as well as a few other shipping interests-including the companies that owned the St James Park and the Asian Glory, that were hijacked and released in 2009.

One version is here:

http://www.oferg.com/Aboutus/History/tabid/125/Default.aspx

Another version is here:

http://www.oferg.com/Aboutus/History/tabid/125/Default.aspx

And here too, the third version, where you will notice that our old friends-the banks and the insurance companies-make their now usual grand appearance, as private investors too.

http://www.haaretz.com/print-edition/business/the-shakshuka-system-a-view-from-2009-1.271235

But this report is about piracy and Israelis. For that, please and kindly look carefully at the timeline below:

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This is a statement issued by the operators after the release of their ship, the St James Park, mid-May 2009. "The company does not wish to jeopardise the safety of crew members held on its second hijacked vessel the Asian Glory or other vessels and crews that are still being held by Somali pirates in the area," Zodiac said in a statement. (The vessel St James Park, with a British flag, was hijacked on 28 December 2008 and released on 14 May 2009, with Indian, Pakistani and Bulgarian crew).

This is the statement issued by the operators after the release of their ship, the MV Asian Glory in mid-June 2009-"Zodiac said in a statement on its website that all crewmembers were well, but declined to provide further details." (MV Asian Glory, with a British flag, was hijacked in early January 2009 and released in mid-June 2009-its crew consisted of Ukrainians, Bulgarians, Indians and Romanians.)

But there has been no statement issued by the owners or operators, as yet, pertaining to the hijack and release of their ship the MV Arctic Sea, from the North Sea, in highly-controlled Western Europe waters. On voyage from Finland to Algeria with "timber", but suspected to have been carrying weapons likely destined for certain Arab interests. (MV Arctic Sea, Malta flag, primarily Canadian owned-beneficial owners unclear-was hijacked in late July 2009 and "found" in mid-August 2009 in the Atlantic Ocean).

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The buzz in the maritime world in India and elsewhere has been loud and clear after this-Ofer's ships will simply not be touched again. In fact, any Israeli interests will not be touched again in the Indian Ocean piracy areas. Buzz also has it that on the waterfront in Puntland and the rest of the Horn of Africa, word is out that you don't mess with the Star of David, or those whom they protect.

So you now have MSC, (Med Shipping of Geneva, Switzerland, another shipping company with a history of its own, operating from that great maritime nation, Switzerland) the largest operators of cruise ships, openly declaring that their "security staff" was and is Israeli.

Here's another episode: April 2009, the MSC Melody with a "large number of passengers onboard" repelled an attack by boats and boats of pirates about 500 miles off Somalia. Apparently it was a planned attack. Initial news reports spoke about the ship taking successful evasive action, but truth is that the security forces onboard used firearms "and more" to drive off the attackers, and then actually doing some more too-which cannot and will not be repeated here.

But put it this way, there are videos circulating on the Internet of how security men from another nation captured some pirates, released the hostage crew who were being forced to operate the mother ship, and then, what the heck, tied the pirates up and then blew up the ship.

Some people got very, very, wet-and unhappy. Russian ships don't get attacked in Somalia any more, either, for some time now.

So this is what the MSC Melody's ship-owner's statement said: "Security work onboard our cruise ships is very popular with young Israelis just out of the army, the job is seen as a chance to save money and travel at the same time. Hundreds of veterans and reservists of elite Israel Defence Force units, including Naval commandos, are employed in security work on cruise ships and oil rigs in areas subject to pirate attacks."

And in the bargain, another amazing factoid is emerging in Africa-the Israelis are fast becoming important players in all forms of commercial enterprises in and around the emerging African countries. One country, (actually three of them), is reported to now permit nuclear tests as well as Armed Forces "training" on their territories. (South Africa stopped in the post-apartheid era, that is what one understands, and Angola is not all that big).

The Chinese are now facing competition, because cheap labour costs the same for both of them, especially if it is from Third World countries. And most of all, Israeli interest ships continue to flow through safely-which is more than what many other countries can claim.

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Where is India on something like this?

1) All sorts of important people in Delhi are debating on whether Indian ships should have armed guards on them or not. Popular sentiment fashioned on some old traditions going back to, where else, the British, has it that merchant ships should not be armed. This is usually after lunch and before dinner, after which they all go home to their well-protected homes, mostly with heavily armed guards outside.

2) The Directorate General of Shipping, Mumbai, in its own brilliance has made it extremely difficult for ex-Indian Navy personnel to sail onboard Indian merchant flag ships. The background of this is somewhere else totally, and involves Supreme Court judgements, so it will not be discussed here, other than a single simple comment: "own goal". Or better, still, "self
hit-wicket."

3) Foreign flagships which have their own armed personnel onboard declare the security people as "seamen", and organise documents for them from the flag state. The actual arms are either declared and kept in bonded locker stores, or simply, sometimes, not declared, that's also life. Releasing a ship from official pirates in India is easier than getting it released from unofficial pirates in Somalia.

4) The ITF, BIMCO, Intertanko, Interbulk and the International Chamber of Shipping are meeting in London again next week. Apparently they plan to issue another joint appeal, after lunch and before dinner, and then launch another Web campaign. However, they are also not in favour of placing armed guards on merchant ships-though this is also being debated. To the best of my knowledge, the Indian government is not represented here this time, though some other Indians in shipping are.

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There is no too ways about this-piracy at sea is now a very important component of what is increasingly being referred to as "MCO". (Multinational Crime Organisation). History teaches us that the New World was conquered by buccaneers and they were supported brilliantly by their backers-state, church or commerce. Things really haven't changed that much lately, either.