Maintaining an Unparalleled Safety Record in LNG Shipping and Terminals in the Face of Unprecedented Growth

IAMU LNG Roundtable

28th February-1st March, 2005
The Westin Chosun, Busan, Korea

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Since the first LNG carriers were built in the late sixties, the industry has had an impressive and enviable safety record, largely due to the vigilance of the industry itself. The unparalleled safety record of the LNG carriers in service over the last forty years has been due to the care taken in construction, maintenance and operations. The challenge now is to deal with the unprecedented growth in the LNG industry which will occur during the next 5-10 years. In order to sustain the safety of carriers, cargo crew and terminal operators in this new era, all of us must work together to share new technologies and to train the type of experienced personnel necessary to support this vital industry.

[I] Key Concepts:

1. The prestigious claim of "Zero Accidents in the past 40 years" has been realized only by the unceasing efforts of all the parties concerned in the LNG supply chain to sustain ocean transportation system.
2. The current expansion of LNG transport worldwide and its demands on the shipping industry is a potential threat to the excellent safety record.
3. This new development requires a thorough review of the ocean shipping system of LNG, including the ship/shore interface at terminals, with the express objective of assuring the continuation of an excellent safety record.
4. This challenge is best met by a global collaboration among all stakeholders involved in the LNG supply chain which leads to a strategic and practical action plan with realistic time frames, and effective organization and associated management.

[II] Expected Results:

1. To achieve consensus among the stakeholders:

   a) That a "Zero Accident Culture" continues to be the objective.

   b) that a new paradigm is required which demonstrates that the best LNG supply chain operation can only be achieved through the global collaboration, education and training,

   c) that such global collaboration, education and training needs to commence now.

2. To agree on:

   a) The Strengths, Weaknesses, Opportunities, and Threats (SWOT) of the present LNG supply chain,

   b) proactive and professional strategies for moving to the new paradigm,

   c) an action plan of activities to enable the strategies to be progressed,

   d) suitable education and training initiatives for the qualified human resources for both ships and terminals,

   e) a practical timetable for implementing the action plan, and

   f) an efficient organization to manage the implementation of the action plan.

3. To produce a Chair's Report expressing the tangible outcomes of the Round Table. This Chair's Report which sets out the agreed further actions will be circulated to all the stakeholders after the meeting, as well as placed on the IAMU website.
4. Those who have agreed to undertake particular actions contained in the Chair's Report can get on with them as a part of the collaboration under IAMU LNG Initiative.

[III] Outline of Round-Table:

1. Structure:
   1. A total of 8 time slots over one and a half days.
   2. The Round Table will start things off by two presentations focused straight to the point.
   3. Each time slot will consist of 1 to 2 speakers, with an appropriate chair.
   4. Chair's Report:

      a) A Joint Statement will be drawn up by the Steering Committee at the end of the 1^st day. The Joint Statement will reflect the discussions during the 1^st day, and set up a way forward. This will be presented for discussion by all the stakeholders in the plenary session in the morning of the 2^nd day, 1^st March, 2005.

      b) The Chair will make up a Chair's Report by based on the comments and suggestions given during the plenary session in the morning of the 2^nd day on the presented Joint Statement, to be circulated subsequently.

   5. Composition and Themes for each slot:

(A) Straight to the Point:

(Slot -1) How the unparalleled safety record has been realized - Overview of the LNG trade.

(Slot -2) The LNG trade into the future - anticipated concerns.

(B) Strategies and an Action Plan:

(Slot -3) The role of IAMU in providing accredited education and training for human resources, both for the LNG ships and for the terminals.

(Slot -4) A SWOT Analysis - A logical process for addressing issues faced by a growing industry.

(Slot -5) Strategies and Implementation of an Action Plan to address the critical needs for qualified human resources in the LNG supply chain.

(Slot -6) Panel Discussion and Wrap up

(C) A Joint Statement:

(Slot -7) Discussion by all the stakeholders based on a draft Joint Statement prepared by the Steering Committee.

(Slot -8) Panel Discussion and Conclusion

[Remarks] * This Round Table will be given on FEE BASIS. A reasonable fee level will be announced by 15th January, 2005.