The International Safety Management as applied to Cokaliong Shipping lines, inc.

Editor's Note: The following is a copy of the speech delivered by Chester Cokaliong during the National Forum on Safety of Domestic Ferries held last September 9 to 11 at the MARINA Multi-Purpose Hall in Manila.

CEBU, Philippines - The maritime industry most recently was a recipient of a severe beating in the eyes of the public, both domestically and internationally, due to the maritime disaster that visited the country, particularly in Cebu.

But we take exception to that public perception because in the past 20 years of our operations, we have not been involved in any major accident. We are very fortunate that not one of our ships sank or got involved in collision, much less, passenger casualties. We have to realize, however, that with so much peril and hazards at sea, avoiding accidents is like walking on a tight rope.

In view of this recent maritime incident, what comes to mind in all sectors of both the local and global society is the phrase "maritime safety." Necessarily follows as well is the question on how international safety management has been applied to the different shipping companies.

Notably, the Preamble of the International Safety Management Code (ISM) Code recognizes:

"That no two shipping companies or shipowners are the same, and that ships operate under a wide range of different conditions."

Indeed, shipping companies are as diverse as there are a number of shipping operators which are now in existence, both in the country and in the whole world.

One thing that should stick in our mind as ship operators is the last premise in the Preamble of the ISM Code which emphasizes that the top management should be committed to good safety management, thus:

"The cornerstone of good safety management is commitment from the top. In matters of safety and pollution prevention it is the commitment, competence, attitudes and motivation of individuals at all levels that determines the end result."

Along this line, please allow me to share with you how we have applied International Safety Management in Cokaliong Shipping Lines, Inc. I am proud to relay to you that in our shipping company, the commitment to good safety management truly starts from the top.

I can assure you who are here today and the entire public that avails of our shipping services that the corporate officers of our company, especially starting from me as the founder, Chief Executive Officer and Chief Operating Officer, have the commitment, focus and dedication to maritime safety as it is of utmost importance to us.

We know for a fact that not every top honcho in shipping companies these days would be hands on in both the management and operation of their ships and personnel. Most shipping companies nowadays would already rely on their managers, department heads and officers. They are already into what is known as macro-management.

Their top management would no longer be concerned about the details in the management and operation of their company.

If only to illustrate that commitment, focus and dedication to safety is top in our list, I would like to say to you that ours at Cokaliong Shipping is entirely unique and different. We still micro-manage our company. We are still are concerned about the minor details in the management and operation of our shipping company.

You may be surprised to know that despite that I am the founder, Chief Executive Officer and Chief Operating Officer, I still go to the pier every evening to ensure that our vessels have departed safely. Every morning I also go to the pier to see to it that our ships have arrived safe and sound. In the entire time that our ships are sailing from their ports of departure to their point of destination, I still closely monitor them. That is why I could spend only a short period of time to sleep of only four to five hours a day. That is how very dedicated we are to the safety of all our ships. Daily, I visit all our ships to inspect if they are well maintained, well sanitized, and kept seaworthy. I even go down to the engine room myself to see for myself how well our engines are maintained.

We are very strict in imposing discipline in our company since it equates to safety. We do not compromise safety of the vessels just for profit. We value our reputation more than money. We have practically developed a culture of discipline. We fondly call it, the "Cokaliong culture."

Presently, our Company has a fleet of nine ships. Most of our vessels are classed with classifications societies which are members of the International Association of Classification Societies (IACS) which have strict classification requirements, such as the Bureau Veritas (BV) and Korean Register of Shipping (KRS). All our vessels are duly accredited by the Department of Tourism (DOT) and have consistently been awarded as the "Cleanest Ship" in their respective categories by the Maritime Industry Authority (MARINA) and the Bureau of Quarantine. Presently, we are authorized to serve 13 ports of call, namely, Cebu, Calbayog, Dapitan, Dumaguete, Iligan, Iloilo, Jagna, Maasin, Nasipit, Ozamis, Palompon, Surigao, and Tagbilaran.

History tells us that most maritime accidents are blamed on human error. That is why we have ensured that our officers and crew are competent in their respective fields of endeavor. We have encouraged them to regularly upgrade in maritime education. In fact, when they need to undergo a review in order to take recurrency training, an upgrading course or board examination, we grant them leave from their duties and accord them personal monetary loans for that purpose. We also impose very strict prohibition against intoxication. We never allow the desire of seafarers to get intoxicated since that would cause human fatigue, diminish alertness, and expose the ship to undue hazards and accidents. Thus, whenever a crew member is caught drunk, he is usually imposed automatic suspension from service or such stiff penalty in order to make him realize that we are very serious in our policy.

Aside from human error, there are also operational safety issues or concerns that we wish for the concerned Government agencies involved in maritime safety to address as a matter of priority, among them are the following:

a)Absence of or inoperational lighthouses in particular areas that our ships are trading, such as:

1)The Port of Manguino-o, Calbayog, which has no lighthouse at all;

2)Erratic or non-operational lighthouses at:

i)Palompon;

ii)Maasin; and

iii)Capitancillo Island within the vicinity of Bogo, Cebu;

b)Inoperational or missing Aids to Navigation, such as:

1)The entrance to the Port of Ozamis has inoperational entrance bouys;

2)The Lipata Bank or Lauis Ledge near Talisay, Cebu has no lighted bouy;

3)One nautical mile northeast of Bantolinao Point, Cebu has no lighted bouy; and

4)The entrance to the Port of Palompon also has no bouy.

c) The channel towards the Port of Cebu truly has a heavy maritime traffic owing to that fact that most shipping companies in the country are homeported in Cebu. We believe that the installation of Vessel Traffic Monitoring System (VTMS) or a Vessel Traffic Service (VTS), which is similar to air traffic control for aircraft, is critical to aid the crew in safe navigation in the Cebu channel.  This vessel traffic service could use  radar, closed-circuit television (CCTV), VHF radiotelephony, and automatic identification system to keep track of vessel movements and provide navigational safety in this area and thereby improve safety and efficiency of navigation, as governed by the SOLAS.

Furthermore, we know that the purpose of the ISM Code is not just the safe management and operation of ships but also pollution prevention, thus:

"To provide an international standard for the safe management and operation of ships and for pollution prevention."

That is why when MARINA initially implemented Memorandum Circular No. 2009-22 entitled, "Rules Governing the Mandatory Marine Insurance to Cover Liabilities Arising From Pollution and Wreck Removal", we at Cokaliong Shipping Lines did not hesitate to immediately comply with it.

Kindly note that the Protection & Indemnity Policies of Insurance issued by the British Marine of QBE Insurance (Europe) Limited, cover all our nine vessels, in the Combined Single Limit of US$100,000,000.00 (which is roughly P4.4 billion) per vessel to cover wreck removal and oil pollution liabilities. The foregoing amount is even way above MARINA's required reduced minimum limit for wreck removal liability and for oil pollution liability. Since the time we have been covered by British Marine, we have not made single claim.

Subsequently, while MARINA suspended the implementation of the policy involving Protection & Indemnity (P&I) through MARINA Board Resolution No. 60, dated 08 March 2010, we still continued to voluntarily take shelter under P&I coverage because of our commitment to pollution prevention. 

It is remarkable to note that obtaining an international Protection & Indemnity coverage is not an easy task and would involve huge sums of money. One has to undergo rigid surveys in order to qualify for such coverage. Considering the very recent marine disaster whereby a massively destructive oil spill occurred in Cebu, having a P&I coverage plays a big role.

Truly, I am confident that both the national and regional offices of the MARINA could attest that promoting the safe management and operation of our vessels and the riding public is the topmost concern of our company.

As I end my talk today, let me say that what we have achieved now is not a walk in the park. It entailed dedication, commitment and a lot of personal sacrifices. As you may have now known, I have sacrificed most of my personal time and efforts so that we have come to where we are today. I hope to have inspired everyone, and may all of you have a pleasant day ahead. (FREEMAN)