Oslo, Norway. Environmental groups allied with Friends of the Earth International are pressing for ships to abandon dirty bunker fuels and cut engine emissions by 70 to 90 percent using current pollution controls during international negotiations November 13 to 17 being led by the United States. Results from the weeklong session could mark a turning point in reducing toxic emissions from ocean-going ships, which are steadily escalating due to increasing global trade and poor pollution standards. Fuel and engine emissions reductions benchmarks developed this week are expected to be adopted and finalized by July 2007 for implementation beginning in 2010 by the International Maritime Organization (IMO).

Several shipping nations support improved standards, but others beholden to shipping and oil interests could hamper reform of the shipping fleet. Ships carry 90 percent of consumer goods to market and the volume of trade is expected to triple in the next two decades.

“This is a critical time to make drastic cuts in ship smokestack pollution through international standards,” said Teri Shore of Friends of the Earth – US. “With more evidence of people getting ill and dying early due to inhaling diesel exhaust from ships, we hope shipping nations and industry groups will finally get serious about cleaner fuels and engines – and stop putting profits before people and the environment.”

David Marshall, Senior Counsel for the Clean Air Task Force, stated, “IMO must act now while this window of opportunity is still open. Shipping emissions are large and will only grow larger with increasing global trade The techniques to control shipping emissions exist— now the political will to use them must be found. If IMO can’t find it, then individual countries and states will be forced to do so on their own.”

Shipping emissions contribute to substantial human health and environmental problems. People living near ports experience higher levels of cancer, heart attacks, asthma, respiratory illness and other cardiopulmonary problems – as well as premature death. Shipping emissions also contribute to acid rain, climate change, and water pollution by deposition.

By 2020, shipping emissions are projected to exceed land-based emissions in Europe and parts of the U.S.
Ships are estimated to generate almost 30 percent of the world’s smog-forming nitrogen oxide emissions and nearly ten percent of sulfur dioxide emissions from burning fossil fuels.

A delegation of international, European Union and U.S. organizations, formally represented at the IMO by Friends of the Earth International, are pressuring the shipping industry to immediately switch to cleaner fuels and put air pollution controls on both new and existing ship engines that will drastically reduce smog-forming emissions and soot from diesel ship exhaust. The coalition includes: Clean Air Task Force (U.S.), Friends of the Earth – Bluewater Network (U.S.), Swedish Secretariat on Acid Rain (Sweden), North Sea Foundation (Netherlands), European Federation for Transport and Environment (Belgium).

Based on current technology and cleaner fuel supplies, environmentalists are urging the IMO to require:
– Reductions of 40 to 50 percent in smog-forming nitrogen oxides and sulfate-forming sulfur oxides by 2010
– Reductions of 70 to 90 percent in smog-forming nitrogen oxides and sulfur oxides by 2015.
– Reduced sulfur content in marine fuels to 1.0 percent or less at sea by 2010; and switching to marine distillate fuel of .5 percent by 2015.
– Reduced sulfur content in marine fuels in Sulfur Emissions Control Areas to .5 or less.
– Prohibition on-board incineration in coastal waters.

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In the year 1999, the Erika Oil Spill in France rocked the whole world. The 25-year old Erika MT tanker broke into two and sank off the Brittany coast of France, leaking almost 14,000 tons of fuel and damaging 400 km. (240 miles) of coastline. The events spurred international in-depth reports, like the BBC documentary that showed a highly accurate portrayal of what was wrong with the international maritime industry.

In the beginning, Total Fina, the French oil company that owned the oil transported by Erika, denied any responsibility for the oil spill. This instigated French public outrage, while three major European countries started a boycott against the company. Suffering from public pressure and the threat of legal action in the French courts, Total Fina eventually admitted responsibility for the environmental disaster.

Many hoped that another Erika would never happen, but on Aug. 11, 2005, a tiny island in the Philippines named Guimaras suffered the same fate. In the role of Total Fina was a Philippine oil company named Petron. Petron is jointly owned by the Philippine government (30 percent), Saudi Aramco (40 percent), and other private stakeholders. More than 1 million liters of bunker fuel leaked from MT Solar I, the tanker hauling the Petron oil, damaging almost 300 km. (180 miles) of coastline and hectares of mangroves, while displacing 26,000 people, most of whom were fishermen who depended upon the sea for livelihood. To put food on the table, the same fishermen helped in the clean up for P300 (US$6) a day, even while knowing that there were high toxic levels of hydrogen sulfide present, which can cause irreversible brain damage and even death.

International media like CNN and BBC only covered the Guimaras incident for several days. The only time it was picked up again by the international media was as a human interest story, when Filipinos started shaving their hair in the hope of using it to absorb the oil. The hair segment veered far away from the real issue and eclipsed the seriousness of the problem. It just confirmed that in the eyes of the international community, Guimaras is an unimportant island, which is exacerbated by the fact that it is in the Philippines, a developing nation

The Erika oil spill occurred in France, a wealthy European nation with world economic influence. France is also a country where freedom of expression is highly observed. It is hardly surprising that the French public could force the French government to take action and Total Fina to pay for the cleanup costs and the pumping of oil from Erika.

But in the Philippines, freedom of expression can kill. The Philippines is one of the countries with the highest number of journalists murdered. With 75 percent of the population under the poverty line and majority already frustrated with “people power” revolutions that failed to bring about social change, democracy in the Philippines hardly exists.

This week, Joe Nichols, the executive of the International Oil Pollution Compensation Fund (IOPC ), asked the regional media to stop highlighting negative stories and focus on more positive ones. But shutting up would mean continued injustice.

In the IOPC website, Guimaras was not even listed as a major oil spill incident. The nonchalance of the IOPC for Guimaras is a complete opposite reaction to the Erika oil spill, where they were forced to increase the oil claims fund to almost 50 percent, giving in to pressure from E.U. courts.

To date, Petron is denying responsibility for the oil spill. They are mirroring what Total Fina did, except this time, Guimaras does not have the international media nor the international community to back it up.

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(UPDATE) OVERLOADING, lapses, and incompetence have been cited by an investigating panel as the reasons that caused an oil tanker to sink off Guimaras Island in August, resulting in one of worst oil spills in the country.

At the same time, the Special Board of Marine Inquiry (SBMI) ordered the Maritime Industry Authority (Marina) to file the appropriate administrative charges against Sunshine Maritime Development Corp. (SMDC), owner of the M/T Solar I; oil firm Petron Corp., which chartered the vessel; Norberto Aguro, the ship’s captain.

The board also recommended:

• Rereouting tankers farther from the coastline;
• Establishing a real-time tracking system for ships;
• Making a risk assessment of sea routes and carriers;
• Strategic positioning of tug and salvage equipment;
• Modernizing Coast Guard equipment;
• Institutionalizing oil spill liability;
• Requiring all ships to be double hulled;
• Improving vessel construction;
• A review by Marina of all loadline certifications of tankers;
• Compelling Marina to ensure compliance to its rules and regulations;
• A review by the Professional Regulations Commission (PRC) to of policies for the issuance of licenses to seamen; and
• Holding ship owners primarily liable and responsible for hiring competent seafarers.

The civil and criminal liabilities of the SMDC, Petron, and Aguro will be determined by the Department of Justice, which will be furnished a copy of the SBMI’s findings, Transportation Secretary Leandro Mendoza told a news conference at the Coast Guard headquarters in Manila.

The SBMI also ordered the suspension of SMDC and Aguro, Mendoza said.

The M/T Solar 1 was overloaded by 150 tons of bunker fuel, and was filled with an additional 200 tons of water that flooded the ship due to bad weather, said Mendoza, quoting from a three-page brief of the SBMI’s findings.

The flooding also caused the vessel’s “loss of residual stability,” Mendoza said.

Due to his “lack of adequate training,” Aguro committed a “disabling error of judgment” when he decided to brave the storm, Mendoza said.

Aguro is not a licensed oil tanker master. His license is for the operation of a chemical tanker, the investigation revealed.

The SBMI concluded that SMDC “completely disregarded all mandated regulations, policies, and requirements for seaworthiness of the vessel,” Mendoza said.

Petron Corp. is “liable for overloading industrial fuel oil causing instability of the vessel,” he said.

The M/T Solar 1 sank off Guimaras Island last August 11, while on its way to Zamboanga City from the Petron refinery in Limay town, Bataan province.

The ship has leaked out an estimated 1.3 million of the two million liters of bunker fuel it was carrying.

Earlier this week, government officials said the remaining fuel inside the tanker would be siphoned out.

Mendoza said he created a special task force to determine the possible lapses committed by the Coast Guard and Marina.

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The SMM 2006, 22nd shipbuilding, machinery & marine technology, international trade fair hamburg, closed on Friday at the end of this four-day event, setting up a new visitor record. The event went very successfully for the 1,669 exhibitors from 50 nations. Seldom has the mood been so good among SMM exhibitors. A key element in that was the attendance by a total of more than 45,000 trade visitors from all continents (the SMM 2004, which lasted 5 days, had 42,151 trade visitors). The largest visitor group at the SMM was from the ship¬owners and shipping companies, accounting for 18%; they were directly followed by the ship¬yards. The percentage of foreign visitors was up substantially this year again, to 38% (2004: 34%). A large proportion of trade visitors at the SMM 2006 were decision makers within their organisations, that is 72% (2004: 70%).

Many exhibitors used the SMM 2006 to present their innovations to the maritime experts for the first time. 63% of exhibitors were from abroad

(2004: 60%). That under¬scores the SMM’s undisputed leading position in the international scene. The greatest driving force at this high-tech maritime conference in Hamburg was once again the worldwide boom in shipbuilding.

Inspired by this climate, business contacts and negotiations proceeded at a greater pace than at any previous SMM. That was confirmed by Jürgen Kennemann, Chairman of the SMM Advisory Board and Chairman of the Management Board of Aker Yards, Germany, who said “the SMM 2006 was more successful than any of the previous events. And a particularly striking feature is that advanced technology in the shipbuilding industry is generating more and more interest among the younger visitors, too.”

The contribution made by the new, state-of-the art exhibition halls to a successful SMM 2006 was also underlined by Dr. Alexander Nürnberg, Chairman of the Working Group of the Shipbuilding and Offshore Equipment Industry within the German Engineering Federation (VDMA): “Order books are full, and perspectives are outstanding in the shipbuilding markets for the coming years – the excellent mood in the globally active marine equipment industry is impressively reflected again at this SMM. We look forward to the completion of the other new exhibition halls for the SMM 2008, so that we can present our innovations to the international audience even more effectively than before.”

Pim van Gulpen, President of the European Marine Equipment Council (EMEC), felt that the SMM 2006 was the right forum to achieve even more intensive cooperation among shipyards, marine equipment suppliers and cruise shipping lines at an international conference.

The shipyards also regard the SMM 2006 as a special highlight. There was a correspondingly positive assessment by Werner Lundt, Managing Director of the German Shipbuilding and Ocean Industries Association (VSM): “This year again, the SMM has proven to be the outstanding platform for national and international presentation of the high technological level and innovation capability of our industry – with overwhelming response by visitors.”

Dr. Hans-Heinrich Nöll, Managing Director of the German Shipowners’

Association (VDR), was also delighted at the success of this high-tech show, saying “the SMM 2006 has demonstrated once again that Germany is right at the centre of global shipping.”

Spokesmen of China’s major shipbuilding groups, China Shipbuilding Industry Corporation (CSIC) and China State Shipbuilding Corporation (CSSC), were also impressed at the expertise and high standing of trade visitors. Zhang Zhimin, Senior Manager of the CSSC affiliate China Shipbuilding Trading Co., Ltd., reported on the very high level of interest of European shipowners particularly in container ships, tankers and bulk freighters.

Europe’s largest shipbuilding group Aker Yards took the SMM 2006 as an opportunity to present itself for the first time jointly with the French shipyards acquired from Alstom this year. And the second largest European shipyard group also used the SMM as a platform for presentation in its new constellation, as explained by Dr. Klaus Borgschulte, Management Board Member of ThyssenKrupp Technologies AG and Chairman of the Management Board of ThyssenKrupp Marine Systems AG: “This is the first time that ThyssenKrupp Marine Systems has flown the flag at the SMM. The enthusiastic wave of international visitors and the interesting discussions with them show the success of our presentation at the SMM.” Rene Berkvens, CEO of the Dutch shipyard group Damen also described the SMM as a “very good trade fair”, with a large number of new customer contacts.

The SMM 2006 was described by Giorgio Arena, Executive Vice President of Fincantieri, as a mirror for the shipbuilding climate in the world; he emphasised in particular that its techno¬logical level was higher than at previous events.

The same applied to the Superyacht sector, which was a prominent focus for the first time this year. This was also the first presentation by SMG Werft AG, a builder specialising in superyachts. As Sales Manager Roland Herrmann said, “We were able to make very promising contacts with prospective customers.” A positive view was also taken by André Jonker, Project Manager of the Yacht Department at Abeking & Rasmussen, of the SMM Superyachts section, saying that this section should definitely be expanded further in the future.

The SMM 2006 showed impressively how fast technical progress is moving in the high-tech sector of the shipbuilding and marine equipment industries.

Exhibitors from all areas had come to Hamburg with world premieres. There were innovations on show for expert visitors in the areas of propulsion systems, in navigation and automation technology, in safety and environment protection, and in the service sector. A “revolution” in navigation systems was claimed by Kelvin Hughes with their powerful, but low-energy new radar unit “SharpEye”. The SMM 2006 was described by Managing Director Ron Nailer as the “greatest shipbuilding exhibition of them all”.

SAM chose the SMM 2006 to unveil its new navigation bridge, with many new functions. “The SMM has always been a key event for us, enabling us to meet our customers and partners from all over the world,” said Klaus Lorenz, Managing Director of SAM Electronics GmbH. “But the SMM 2006 has exceeded all our expectations, not only in terms of the extraordinary amount of interest in our new products, but also in the remarkably large number of international trade visitors.”

“Very successful” was the assessment by Siemens, whose exhibits at the SMM included their high-temperature superconductor system. Heinz Waschin, the Sales and Technology Navy Director, also indicated that they were now very close to agreement with the Koreans on delivery of electrical equipment and automation.

Wärtsilä’s President and CEO, Ole Johansson, used the SMM 2006 to announce a new joint venture with CSIC and Mitsubishi Heavy Industries for manufacture of large two-stroke marine diesel engines. This joint venture is to run a production facility in China. Sales Director Wilco van der Linden said he had probably talked to more shipowners and shipyard managers at the SMM 2006 than at any previous SMM. He had made a start on many new forward-looking projects.

And the SMM 2006 was not only used for making new contacts and holding negotiations. Caterpillar, for example, signed an extension to the delivery agreement with Damen Shipyard Group during the fair, to the tune of “a good many millions”. Caterpillar are to deliver 1,500 engines to Damen over a three year period. They were also able to close another major order with the shipping line MPC for delivery of a total of five MaK main engines and 15 Caterpillar auxiliary engines.

Agreements for new orders were also closed by ABB, as reported by Marketing Manager Thomas Völkel. He said he had hardly even been able to take a break between discussions, due to environment-friendly medium-voltage shore connections. “We are more than satisfied, and intend to take a larger stand at the next SMM.”

The SMM 2006 also featured joint delegations from 20 nations, including a number of emerging shipbuilding nations who expected this first presentation at the world’s leading shipbuilding exhibition to give important stimuli for their own shipbuilding industry. Their expectations were not disappointed, as noted by Dr. George Catrinescu, Director General of the Romanian Shipbuilding Association. He said that the Romanian exhibitors were extremely impressed by the vast range of contact opportunities offered by this fair, adding that “the SMM 2006 has opened up great prospects for export and cooperation for the Romanian shipbuilding industry.”

The exhibitors from Turkey comprised 13 shipyards and 4 marine equipment suppliers, and saw the SMM 2006 as a boost for their own shipbuilding industry. Erkan Selah, shipyard representative at the Istanbul Chamber of Industry, said he had never seen so much interest in Turkish shipyards as this year in Hamburg.

Russia was present with the largest exhibitor delegation so far at the SMM 2006; the Russian Industry Minister Andreij Dutow travelled to Hamburg specially for the occasion, and held discussions with Aker Yards on future cooperation.

The traditional national pavilions also reported very positive results at the fair. Halvard Olafsen, Managing Director of the Association of Norwegian Maritime Exporters, said “the SMM 2006 is the best maritime exhibition I have every experienced anywhere in the world. The number and quality of visitors are better than at any previous event.” A similar assessment was made by Jens Hammer Sørensen, Vice Chairman of the Danish Export Association and Managing Director of Selco.

Excellent results were likewise reported by Hirofu Ino, Managing Director of the Japanese Marine Equipment Association (JSMEA), who announced that Japan would send a much larger delegation to the SMM 2008. Dong-kyu Choi, Director for Projects and Marketing at the Korean company Hi Air Korea Co. Ltd., was “very pleased” with business deals closed at the SMM 2006.

Martin Greve, Project Director for the SMM, summarised the results as

follows: “The SMM 2006 has smashed all previous records. The hotels in Hamburg and well into the surrounding areas were completely booked out. We are grateful to the people of Hamburg for their patience, putting up with quite a lot of crowding and traffic congestion.”

The supporting programme at SMM 2006 likewise exceeded all previous SMM events. There were more than 140 conferences, symposia, workshops, seminars and meetings held in conjunction with the SMM 2006. The very successful “SHIP FINANCE” conference held by the Financial Times Deutschland (FTD) in cooperation with the SMM added an important new element to the range of SMM events. There was likewise a very good reception for the two-day PCE Marine Coatings Conference, focusing on future development trends, and the “Digital Ship” seminar. There was also a successful meeting of the CIMAC Circle, which is now established as a regular feature at the SMM.

The 23rd world leading exhibition of the international shipbuilding industry, SMM 2008, will be held in Hamburg from 23 to 26 September 2008.
 

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SeaMobile Inc., a leading global provider of advanced at-sea wireless voice, data and Internet communications services, today announced that it has acquired Maritime Telecommunications Network Inc. (MTN), the leading provider of satellite-based broadband communications and networking services for the maritime industry. The acquisition has been approved by the Federal Communications Commission. Terms of the agreement were not disclosed.

“SeaMobile saw a strategic opportunity to combine the wireless and satellite expertise of the world’s leading maritime communications companies to completely change the way travelers communicate at sea,” said William D. Marks, chief executive officer of SeaMobile. “Cruise travelers can take their own cell phones, Blackberry(R) devices and laptops, read their hometown newspaper, watch live TV, access bank accounts through onboard ATMs and much more. It is truly a new day at sea.”

“Our guests have told us how important it is for them to stay connected with family, friends and business associates while on vacation,” said Robin Lindsay, senior vice president of Vessel Operations for Oceania Cruises. “By partnering with SeaMobile and MTN, we offer our guests a best in class service that will help us to satisfy their needs and extend brand loyalty.”

A heavy workload and pressures from the office are keeping many people from taking relaxing vacations on cruise ships. According to Mary Pace, director of corporate accounts for GlobalStar Travel Management Corp., “Staying connected is so important for my corporate clients even when they are planning a vacation. I can’t tell you how many times my clients ask me if they will have cellular coverage and Internet access at a resort, on a cruise, or on an island during vacation. It’s critical for business people to have those choices in order to enjoy their time away from the office.”

A 2003 survey by Management Recruiters International of 730 executives found that 47% surveyed wouldn’t use all their vacation time, and 58% said that the reason was job pressure. The same study also found that 35% said they wouldn’t take a vacation because they have too much work to do. Connectivity at sea changes that, creating an extension of the office while enjoying time away.

SeaMobile, a Seattle-based company, was founded in March 2005 by veterans of the wireless telecommunications and cable industries to provide wireless voice, data, Internet, and other content and communications related services for cruise lines, oil and gas platforms, ferries, yachts, container ships and government/military sectors. The company recently announced contracts with Silversea Cruises and Oceania Cruises, and has since deployed wireless services on ships for both companies.

SeaMobile’s proprietary technology is a sophisticated IP/software-based solution that works with any type of wireless phone (GSM, GPRS or CDMA) used by the customer when accessing the SeaMobile network at sea. This allows virtually anyone aboard any vessel at sea to use voice and data services available through their wireless home carrier, just as they would on land. Worldwide roaming agreements established by SeaMobile provide transparent connectivity for wireless services and billing is provided by the home carrier.

Based in Miramar, Fla., MTN was founded in 1991, and provides broadband connectivity and related services to the mobile maritime industry using state-of-the-art VSAT technology. Services include voice, data, corporate Internet and Internet cafes, compressed video, digital newspapers, an on-board television network and automated teller machines (ATMs). With installations on nearly 200 vessels today, the company has achieved impressive growth in the cruise line, oil and gas, and government/military sectors.

“We are excited about the potential for SeaMobile and MTN to serve the growing demand for communication services at sea. MTN has enjoyed beneficial relationships with financial partners in the past, but our relationship with the team at SeaMobile is very different because on a daily basis both companies are engaged in developing and delivering best-in-class services for our common customers on a global basis,” said David B. Kagan, president and chief executive officer of MTN.

Leadership for the combined entity includes Marks, who will serve as chief executive officer of SeaMobile Enterprises, Kagan, who will continue to serve as president and chief executive officer of MTN based in Miramar, Fla., and Jack Donohue, a co-founder of SeaMobile and wireless industry veteran, who will serve as president of SeaMobile based in Seattle. SeaMobile and MTN will do business under their respective brands.

About SeaMobile

SeaMobile Inc., founded by some of the world’s top mobile phone and telecommunications executives, delivers new and enhanced wireless voice and data communications services to the global maritime industry. SeaMobile technology enhances the communications experience of anyone at sea by offering wireless voice, data, short messaging and WiFi Internet access services. Wireless customers use their own mobile phone or laptop computer just as easily as they do on land. SeaMobile service allows cruise lines and offshore vessels superior communications capabilities to enhance revenue and improve operations, productivity and customer service. SeaMobile offers packaged and customized wireless solutions for cruise lines, ferries, yachts, container ships and offshore platforms. The company has offices in Seattle and Paris. For more information, visit www.seamobile.com.

About Maritime Telecommunications Network

Maritime Telecommunications Network Inc. (MTN), the leader in maritime communications, provides broadband solutions for voice, data, Internet and compressed video services to the cruise and offshore industries using state-of-the-art VSAT technology. MTN is focused on cost-effective, high-speed satellite solutions, while maintaining the highest standards of quality and availability. MTN’s Digital Seas Internet product, the first information technology concession, provides turnkey Internet cafes to the cruise and offshore industries.

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995. A number of the matters and subject areas discussed in this press release that are not historical or current facts deal with potential future circumstances and developments, including our future expectations concerning the operations of SeaMobile and MTN. The discussion of such matters and subject areas is qualified by the inherent risks and uncertainties surrounding future expectations generally and also may materially differ from SeaMobile’s and MTN’s actual future experience involving any one or more of such matters and subject areas. SeaMobile and MTN have attempted to identify, in context, certain of the factors that they currently believe may cause actual future experience and results to differ from SeaMobile’s and MTN’s current expectations regarding the relevant matter or subject area. This press release speaks only as of its date, and SeaMobile and MTN disclaim any duty to update the information herein.

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