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HANSA 09-2018

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SMM Preview »Shipping

SMM Preview »Shipping cannot just sit back« IMO has, to date, adopted more than 50 instruments – including ship design, construction, equipment, crewing, navigation, operation and disposal. In an exclusive interview with HANSA, Secretary General Kitack Lim talks about achievements and challenges both for the shipping body and the industry What is your message to the maritime industry at this year`s SMM? Kitack Lim: First, I would say that it is really important that all sectors of the maritime world are aware of what goes on at IMO. All sectors are encouraged to share their views and provide input to IMO discussions, through the international non-governmental organizations which have consultative status at IMO. Secondly, I would say that in recognising the crucial role of shipping and the maritime sector in delivering the vast majority of goods that people need and want, all over the world, we also need to acknowledge the increasing demands for cleaner and more sustainable shipping. This has implications for all of us. We all have a responsibility to work towards achieving sustainable development and meeting the targets adopted by the United Nations in the form of the 17 Sustainable Development Goals. Shipping and the maritime sector have a big role to play in all of these goals. With regulations for ballast water treatment and emissions, do you think the industry is well prepared for the future? Lim: I would like to think that the industry is prepared. When it comes to the sulphur 2020 requirements, we are preparing guidance which should help. But my message is that the shipping industry needs to be ready. All of the shipping industry wants to see a level playing field. We know that the industry wants and is ready for universal implementation of IMO rules. And they also want to see robust control by flag States and through port State control to ensure that there is consistent implementation. The industry is, by now, used to changing regulations over time. I would also comment here the willingness of maritime industry movers to get involved in the innovative public-private global alliances, supported by IMO. We saw a successful global industry alliance under the GEF-UNDP-IMO GloBallast Partnerships Programme support research and development. This GIA collaborated with IMO to create a dynamic e-learning platform on operational aspects. A second such project, the Global Industry Alliance to Support Low Carbon Shipping (GIA), has been established. This GIA now includes 16 shipowners and operators, classification societies, engine and technology builders and suppliers, big data providers, oil companies and ports. They are all contributing to discussions on how to remove barriers to the implementation of energy efficient measures. What is your view on the pace and developments regarding »shipping of the future« as it is discussed for example on »Maritime Future Summit«? Lim: The »shipping of the future« is nearly here. All around us, in every part of our lives, we are encountering radical new models for the way we live, usually driven by innovative digital technology or artificial intelligence. This so-called digital disruption will arrive in the shipping world very soon. The next 10 or 20 years will see as much change in shipping as we have experienced in the past 100 years. The shipping world must learn to move fast and adapt quickly. Thanks to new technology emerging in so many areas – such as fuel and energy use, automation and vessel management, materials and construction, shipping is entering a new era. But technological advances present challenges as well as opportunities. Their introduction into the regulatory framework, therefore, needs to be considered carefully. From the IMO perspective, we need to balance the benefits against safety and security concerns, the impact on the environment and on international trade, the potential costs to the industry and, not least, their impact on people, both on board and ashore. Regulatory developments can, and do, send a clear signal about the shape and profile of shipping in the future and, therefore, send a strong signal to investors and technology developers about the way forward. They send a clear message to the shipping industry about the kind of investment decisions it needs to make, and a clear message to those at the forefront of technology, research and development that there will be a market for innovative ways to make shipping cleaner and greener. At IMO, we are helping shipping to identify what its new world will look like and to steer a course towards this future – while, in the true spirit of the United Nations, also ensuring that no one is left behind. Which three »keywords« would you choose to describe IMO and its work? Lim: Efficient, Universal, Technical What keyword would you like to add in the future? Lim: Technologically-advanced What are the most important challenges IMO faces in the coming months and years? Lim: The challenges include: climate change and reducing greenhouse gas 28 HANSA International Maritime Journal – 155. Jahrgang – 2018 – Nr. 9

SMM Preview emissions; the forthcoming reduction in the global limit of permissible sulphur content in ships’ fuel oil; automation and autonomous ships; continuing to address the human element; piracy, security – including cyber risk management – and migration issues. These are all issues covered by IMO’s Strategic Plan for the years 2018 to 2023, adopted in 2017. The Plan confirms that IMO will »promote safe, secure, environmentally sound, efficient and sustainable shipping through cooperation« and »uphold its leadership role as the global regulator of shipping«. More specifically, the Plan enshrines seven specific strategic directions which lay the foundations for IMO Member States, IGOs and NGOs to work together. Above all, we need to continue our comprehensive technical cooperation activities to support implementation of IMO measures. Do you think the procedures of IMO are appropriate or would you prefer to »slim down«? Lim: It is important to remember that IMO is an organisation made up of 174 Member States, all of whom have a stake and a say. When it comes to developing and adopting regulations or amendments, we try to work by consensus. I think that IMO has over the years shown its abilities to take on and tackle sometimes challenging issues, and to focus on the technical side of shipping. We have worked to improve processes, such as by requiring a full analysis of a proposed new work programme item, to assess whether there is a compelling need for a new regulation or new set of guidelines. In terms of some of the processes for amending treaties, these have been set in treaties when they were adopted. So for SOLAS and MARPOL, we are talking about amendment procedures adopted in the 1970s. But to change those, would require a long process of proposal and amendment and positive ratification of those amendments. What needs to be done by the industry? Lim: I think that the pace of change we are seeing in technology and in the demands for every industry to be cleaner, greener and more sustainable means that shipping cannot just sit back. In many cases, shipowners find they have more than one way to meet new regulations. They might, for example, choose between retrofitting new on-board systems or equipment or radically changing operational procedures. Economic decisions may need to be made, regarding phasing out older, less efficient ships and moving towards new Kitack Lim and more efficient ship design and technology. New technologies and changing expectations about safety, environmental protection and social responsibility are a challenge – but also present opportunities. The majority of shipowners and operators are genuinely engaged, and actively seeking to raise standards and push for higher quality, throughout the industry. Their customers increasingly demand that they do this. From a reputational point of view, it makes obvious sense. But it also makes sense economically, too. An industry where standards of safety, security and environmental stewardship are high is far better placed to attract both the financial investment and the high calibre personnel it needs to sustain itself in the long term. High-quality shipowners and operators actually have a vested interest in developing higher standards and improving quality. Interview: Michael Meyer Photos: IMO HANSA International Maritime Journal – 155. Jahrgang – 2018 – Nr. 9 29

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