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ABS Granted Statutory Authority By Argentina

Maritime Activity Reports, Inc.

December 10, 2004

ABS has signed a memorandum of Agreement with the Prefectura Naval Argentina (PNA – the Argentine Coast Guard) by which the classification society is now authorized to issue statutory certificates on behalf of the PNA for Argentine flag vessels in the nation’s cabotage trades. ABS is one of only two international class societies to receive this authorization.

ABS is currently authorized by the PNA to issue statutory certificates for internationally trading Argentine flag vessels. The extended authorization expands that authorization to include domestically operating vessels such as workboats, fishing vessels and barges.

“This agreement has particular significance since a recent change in Argentine law requires all cabotage vessels to operate under the national flag by 2006,” said ABS Americas President Todd Grove who signed the new memorandum in Buenos Aires. “The agreement will simplify the reflagging of vessels currently involved in those trades that are in ABS class and will reduce the administrative burden that would otherwise fall on the PNA,” he added.

The expanded authorization also means that ABS will be able to offer a complete package of classification and statutory services to owners that will be building new vessels in Argentine shipyards for these trades.

“The first of a series of fishing vessels that fall under this expanded agreement is already under construction in Argentina to ABS class,” said Ruben Saied, ABS Country Manager, Argentina. “The new agreement is expected to benefit all the parties involved, the shipyard, the owner, the PNA and ABS. The significant number of cabotage vessels that are being negotiated with yards by prospective owners can also be expected to reap similar benefits from this harmonized approach to statutory and class certification.”

As the Argentine Maritime Authority, PNA enforces international conventions on safety of human life at sea, pollution prevention and control as well as related technical and legal matters. PNA performs flag State and port State control functions involving vessel records and control of ship safety conditions pursuant to the provisions of related laws, regulations and relevant international agreements.

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