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Cosco Bulk Carrier Meets Security Code

Maritime Activity Reports, Inc.

January 27, 2004

ABS Americas Division announced its first certification of a vessel in North or South America to the IMO’s International Ship and Port Security (ISPS)Code.

COSCO (H.K.) Shipping Company’s 17,066 dwt bulk carrier “You Ya” was successfully audited at the Port of Houston with ABS approving its ship security plans and the necessary security audits for issuance of the International Ship Security Certificate (ISSC).

COSCO (H.K.) operates about one hundred vessels, aggregating to approximately 4 million dwt and consisting of Handysize, Panamax and Capesize types. It is the largest dry bulk shipping company in Hong Kong and ranks as the third largest dry bulk shipping company in the world.

According to ABS Manager of Safety, Environmental & Security Systems Certification Patrick Fallwell, the pace of upcoming audits is rapidly increasing as operators must be compliant with the international security regulations by 1 July. The United States Coast Guard (USCG) has indicated that vessels may be subject to detentions or fines or non-compliant operators may have their operation shut down until an approved security plan is in place.

ABS was the first classification society to issue guidance on meeting the ship security code and has distributed thousands of the first edition of the ABS Guide for Ship Security in response to industry demands. The second edition is now available in print and CD version. It can also be downloaded from the ABS web site.

ABS is authorized as a Recognized Security Organization (RSO) to review and approve ship security plans, to perform verification audits for compliance with the ISPS Code and to issue International Ship Security Certificates on behalf of 34 flag Administrations. It has applied to all leading flag Administrations worldwide to act on their behalf.

Nearly 150 ABS auditors have been trained to assist flag administrations and shipowners with meeting both IMO requirements and, when required, the additional security-related standards required for awarding the optional ABS class notation for security (ABS SEC). ABS’ Safety, Environmental & Security Certification (SESC) Department has regional managers and a worldwide workforce of auditors prepared to meet certification needs.

ABS estimates that nearly 43,000 ships and mobile offshore drilling units need to comply with the new requirements by 1 July, 2004.

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