[Federal Register: December 30, 2002 (Volume 67, Number 250)]
[Notices]               
[Page 79741-79806]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr30de02-144]                         




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Part III










Department of Transportation










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Coast Guard






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Maritime Security; Notice




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DEPARTMENT OF TRANSPORTATION


Coast Guard


[USCG-2002-14069]


 
Maritime Security


AGENCY: Coast Guard, DOT.


ACTION: Notice of meetings; request for comments.


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SUMMARY: The Coast Guard is holding seven public meetings to discuss 
requirements for security assessments, plans, and specific security 
measures for ports, vessels, and facilities. Discussions will aid the 
Coast Guard in determining the types of vessels and facilities that 
pose a risk of being involved in a transportation security incident, 
and in identifying security measures and standards to deter such 
incidents. Discussions will also focus on aligning domestic maritime 
security requirements with the International Ship and Port Facility 
Security (ISPS) Code and recent amendments to the International 
Convention for the Safety of Life at Sea (SOLAS), to comply with 
section 102 (Port security) of the recently enacted Maritime 
Transportation Security Act of 2002 (MTSA). We encourage interested 
individuals and organizations to attend the meetings and submit 
comments for discussion during the meetings. We also seek comments from 
anyone unable to attend the meetings.


DATES: The public meetings will be held on the following dates and at 
the following locations.
    [sbull] January 27, 2003, 9 a.m. to 5 p.m., New Orleans, LA.
    [sbull] January 30, 2003, 2 p.m. to 7 p.m., Cleveland, OH.
    [sbull] January 31, 2003, 12 (noon) to 6 p.m., St. Louis, MO.
    [sbull] February 3, 2003, 9 a.m. to 5 p.m., Seattle, WA.
    [sbull] February 5, 2003, 9 a.m. to 5 p.m., Los Angeles-Long Beach, 
CA.
    [sbull] February 7, 2003, 9 a.m. to 5 p.m., Jacksonville, FL.
    [sbull] February 11, 2003, 9 a.m. to 5 p.m., New York City, NY.
    Comments and related material intended for inclusion in the public 
docket (USCG-2002-14069) must reach the Docket Management Facility on 
or before February 28, 2003. Comments and related material containing 
protected information, such as proprietary or security information, 
intended for inclusion in the Coast Guard's internal docket for 
protected information also must reach the Coast Guard's Office of 
Regulations and Administrative Law (G-LRA) on or before February 28, 
2003.


ADDRESSES: The meetings will be held at the following locations:
    [sbull] New Orleans, LA--Hilton Riverside, 2 Poydras St., New 
Orleans, LA 70140.
    [sbull] Cleveland, OH--Sheraton Cleveland City Centre Hotel, 
Dorothy Fuldheim Room, 777 St. Clair Ave., Cleveland, OH 44144.
    [sbull] St. Louis, MO--Robert A. Young Federal Building (R.A.Y. 
Building), 1222 Spruce St., St. Louis, MO 63017.
    [sbull] Seattle, WA--Boeing Field, 7755 East Marginal Way South, 
Building 2-22, Auditorium, Seattle, WA 98108.
    [sbull] Los Angeles-Long Beach, CA--Port of Los Angeles, 425 S. 
Palos Verdes St., San Pedro, CA 90731.
    [sbull] Jacksonville, FL--Florida Department of Law Enforcement 
(FDLE), 921 N. Davis St., Building E, Jacksonville, FL 32209.
    [sbull] New York City, NY--Customs House Auditorium, Alexander 
Hamilton U.S. Customs House, 1 Bowling Green, New York, NY 10004.
    You may submit your public comments directly to the Docket 
Management Facility. Please see the Request for Comments section below 
for more information regarding submitting comments that contain 
protected information. To make sure that your public comments and 
related material do not enter the docket (USCG-2002-14069) more than 
once, please submit them by only one of the following means:
    (1) Electronically through the Web Site for the Docket Management 
System at http://dms.dot.gov/.
    (2) By fax to the Docket Management Facility at 202-493-2251.
    (3) By delivery to room PL-401 on the Plaza level of the Nassif 
Building, 400 Seventh Street, SW., Washington, DC, between 9 a.m. and 5 
p.m., Monday through Friday, except Federal holidays. The telephone 
number is 202-366-9329.
    (4) By mail to the Docket Management Facility, (USCG-2002-14069), 
U.S. Department of Transportation, room PL-401, 400 Seventh Street, 
SW., Washington, DC 20590-0001.
    The Docket Management Facility maintains the public docket for this 
notice. Comments and material received from the public, as well as 
documents mentioned in this notice as being available in the public 
docket, will become part of this public docket and will be available 
for inspection or copying at room PL-401 on the Plaza level of the 
Nassif Building, 400 Seventh Street, SW., Washington, DC, between 9 
a.m. and 5 p.m., Monday through Friday, except Federal holidays. You 
may also find this notice in the public docket on the Internet at 
http://dms.dot.gov/.
    Anyone is able to search the electronic form of all comments 
received into any of our dockets by the name of the individual 
submitting the comment (or signing the comment, if submitted on behalf 
of an association, business, labor union, etc.). You may review the 
Department of Transportation's complete Privacy Act Statement in the 
Federal Register published on April 11, 2000 (65 FR 19477-78), or you 
may visit http://dms.dot.gov/.
    Comments containing protected information, as explained in the 
Request for Comments section below, must be submitted in writing and 
must be mailed or hand-delivered to Commandant (G-LRA)/Room 3406, U.S. 
Coast Guard Headquarters, 2100 Second Street, SW., Washington, DC 
20593.


FOR FURTHER INFORMATION CONTACT: For information concerning this notice 
or the public meetings, write or call Mr. Martin Jackson of the Office 
of Standards Evaluation and Development (G-MSR), U.S. Coast Guard 
Headquarters, 2100 Second Street, SW., Washington, DC 20593, 
mjackson@comdt.uscg.mil, or at 202-267-1140.
    For questions regarding submissions of protected information, 
contact Ms. Kathryn Sinniger of the Office of Regulations and 
Administrative Law (G-LRA), U.S. Coast Guard Headquarters, 2100 Second 
Street, SW., Washington, DC 20593, or at 202-267-1534.
    For questions on viewing or submitting material to the public 
docket, call Ms. Dorothy Beard, Chief of Dockets, Department of 
Transportation, at 202-366-5149.


SUPPLEMENTARY INFORMATION:


Request for Comments


    We encourage you to participate in these meetings by submitting 
comments and related material. If you do so, please include your name 
and address, identify the docket number (USCG-2002-14069) and give the 
reason for each comment.
    If you wish to submit any protected information in your comments, 
you must submit your comment by mail or hand delivery to the Office of 
Regulations and Administrative Law (G-LRA) at the address under 
ADDRESSES. Protected information includes confidential or privileged 
business or commercial information that is not normally released to the 
public. It also includes security information that, if released, would 
be detrimental to the safety of persons in transportation.


[[Page 79743]]


Examples of the latter include vulnerability assessments (or portions 
thereof), specific security actions to be taken by your company or 
vessel, and draft plans that would comply with the International Ship 
and Port Facility Security (ISPS) Code or any of the Navigation and 
Vessel Inspection Circulars (NVICs) referenced in this notice. Please 
be sure to indicate whether the entire submission constitutes protected 
information, or if it is only portions of the submission that need to 
be protected. If the latter, please identify those portions which 
constitute protected information clearly within your submission. If you 
are submitting confidential or privileged business information, please 
explain, within your submission, how this information is normally 
treated within your company or organization.
    You may submit your public comments and material electronically, by 
fax, by delivery, or by mail to the Docket Management Facility at the 
address under ADDRESSES; but please submit your public comments and 
material by only one means. If you submit them by mail or delivery, 
submit them in an unbound format, no larger than 8\1/2\ by 11 inches, 
suitable for copying and electronic filing. If you submit them by mail 
and would like to know that they reached the Facility, please enclose a 
stamped, self-addressed postcard or envelope. We will consider all 
comments and material received during the comment period.


Public Meetings


    The Coast Guard encourages the following individuals and 
organization representatives to attend the public meetings:
    [sbull] Owners and operators of vessels, facilities, and other 
structures located on or adjacent to U.S. navigable waters;
    [sbull] Federal, State, and local agencies in law enforcement and 
emergency planning;
    [sbull] Port authorities;
    [sbull] State and local government organizations;
    [sbull] Shipping agents;
    [sbull] Insurance companies;
    [sbull] Protection and Indemnity Clubs;
    [sbull] Classification societies;
    [sbull] Maritime industry associations; and
    [sbull] Other interested persons.
    Meeting attendees will have the opportunity to orally comment on 
topics scheduled for discussion on the agenda. Appendix A provides the 
intended format of the meetings. We may ask questions to clarify 
comments given by an attendee. Unless otherwise noted, the meetings 
will be held each day from 9 a.m. to 5 p.m. on the dates and locations 
identified under DATES and ADDRESSES. Attendees will be responsible for 
making their own arrangements for lunch at the mid-day break, scheduled 
for 1 p.m. each day. The meetings will reconvene at 2 p.m. and are 
scheduled to end at 5 p.m. We may end the meetings early if we have 
covered all of the agenda topics and if the people attending have no 
further comments. All statements, questions and answers, or comments 
made orally at the public meetings will become part of the public 
docket. In addition to these public meetings, the Coast Guard will 
request its Federal Advisory Committees, as appropriate, to include 
maritime security issues and the content of this notice on their 
agendas in order to provide further opportunities for comment.


Information on Services for Individuals With Disabilities


    To obtain information on facilities or services for individuals 
with disabilities or to ask that we provide special assistance at the 
meetings, please notify Mr. Martin Jackson at the address or phone 
number under FOR FURTHER INFORMATION CONTACT.


Background and Purpose


    In the aftermath of September 11, 2001, the Commandant of the Coast 
Guard reaffirmed the Coast Guard's Maritime Homeland Security mission 
and its lead role, in coordination with the Department of Defense; 
Federal, State, and local agencies; owners and operators of vessels and 
maritime facilities; and others with interests in our nation's marine 
transportation system, to detect, deter, disrupt, and respond to 
attacks against U.S. territory, population, vessels, facilities, and 
critical maritime infrastructure by terrorist organizations.
    In November 2001, the Commandant of the Coast Guard addressed the 
International Maritime Organization (IMO) General Assembly, urging that 
body to consider an international scheme for port and shipping 
security. Recommendations and proposals for comprehensive security 
requirements, including amendments to SOLAS and the new ISPS Code, were 
developed at a series of intersessional maritime security work group 
meetings held at the direction of the IMO's Maritime Safety Committee.
    The Coast Guard submitted comprehensive security proposals to the 
intersessional maritime security work group meetings based on work it 
had been coordinating since October 2001. Prior to each intersessional 
meeting, the Coast Guard held public meetings as well as coordinated 
several industry meetings with representatives from major U.S. and 
foreign associations for shipping, labor, and ports. Maritime security 
was also a major agenda item at Federal Advisory Committee meetings 
held by the Coast Guard during the past year. Additional meetings were 
also held with Federal agencies having complementary security 
responsibilities.
    In January 2002, the Coast Guard held a two-day public workshop in 
Washington, DC, attended by more than 300 individuals, including 
members of the public and private sectors, and representatives of the 
national and international marine industry (66 FR 65020, December 17, 
2001; docket number USCG-2001-11138). Their comments indicated the need 
for specific threat identification, analysis of threats, and methods 
for developing performance standards to plan for response to maritime 
threats. Additionally, the public comments stressed the importance of 
uniformity in the application and enforcement of requirements and the 
need to establish threat levels with a means to communicate threats to 
the marine transportation system.
    The Coast Guard considered and advanced U.S. proposals for maritime 
security that took into account this public and agency input. We 
consider the International Convention for the Safety of Life at Sea 
(SOLAS) amendments and the ISPS Code, as adopted by the International 
Maritime Organization (IMO) Diplomatic Conference in December 2002, to 
reflect current industry, public, and agency concerns. The entry into 
force date of both the ISPS Code and related SOLAS amendments is July 
1, 2004, with the exception of the Automatic Identification System 
(AIS) whose implementation was accelerated to no later than December 
31, 2004, depending on the particular class of SOLAS vessel.
    Domestically, the Coast Guard had previously developed regulations 
for security that are contained in 33 CFR parts 120 and 128. 
Complementary guidance can be found in Navigation and Vessel Inspection 
Circular (NVIC) 3-96, Change 2, Security for Passenger Vessels and 
Passenger Terminals. Prior to development of additional regulations, 
the Coast Guard, with input from the public, needed to assess the 
current state of port and vessel security and their vulnerabilities. As 
mentioned previously, to accomplish this, the Coast Guard conducted a 
public workshop January 28-30, 2002, to assess existing Maritime 
Transportation System


[[Page 79744]]


security standards and measures and to gather ideas on possible 
improvements. Based on the comments received at the workshop, the Coast 
Guard cancelled NVIC 3-96 (Security for Passenger Vessels and Passenger 
Terminals) and issued a new NVIC 4-02 (Security for Passenger Vessels 
and Passenger Terminals) that incorporated guidelines consistent with 
international initiatives (the ISPS Code and SOLAS amendments). 
Additional NVICs were also published, including NVIC 9-02 (Guidelines 
for Port Security Committees, and Port Security Plans Required for U.S. 
Ports), NVIC 10-02 (Security Guidelines for Vessels); and NVIC 11-02 
(Security Guidelines for Facilities [not yet available]). The documents 
are or will be available in the public docket (USCG-2002-14069) for 
review at the locations under ADDRESSES.
    On November 25, 2002, President George W. Bush signed into effect 
Public Law 107-295, the Maritime Transportation Security Act of 2002 
(MTSA), which had been proposed to Congress the year before as the Port 
and Maritime Security Act (S. 1214). The MTSA requires the Secretary to 
issue an interim final rule, as soon as practicable, as a temporary 
regulation to implement the Port Security section of the Act. The MTSA 
expressly waives the requirements of the Administrative Procedure Act, 
including notice and comment, for this purpose. Nevertheless, the Coast 
Guard believes it is important to get the preliminary views of the 
public, especially affected maritime interests, prior to issuing the 
interim final rule. The temporary interim rule may be superseded by a 
final rule within one year of the enactment of the MTSA. The 
requirements of MTSA section 102 directly align with the security 
requirements embodied in the SOLAS amendments and ISPS Code; however, 
the MTSA has broader application that includes domestic vessels and 
facilities. Thus, the Coast Guard intends to implement the MTSA through 
the requirements in the SOLAS amendments and the ISPS Code parts A and 
B for all vessels and facilities that are currently required to meet 
SOLAS, as well as those vessels exclusively on domestic trade and 
facilities that are at risk of being involved in a transportation 
security incident.
    The Coast Guard considers that the implementation of these 
requirements is best done through mandating compliance with the SOLAS 
amendments and the ISPS Code including part A and part B (see Appendix 
B). The Coast Guard considers part B an essential element to ensure 
full and effective compliance with the intent of the MTSA. Foreign flag 
vessels entering the U.S. would be expected to verify compliance with 
part B or provide proof that any alternatives are equivalent to that 
part. Verification of compliance could be established by flag 
administration documents or endorsements that indicate that the Ship 
Security Certificate was issued based upon full compliance with part B.
    Because of the broad application in the MTSA, the discussions in 
this notice use the term ``vessels'' rather than the term ``ships'' as 
found in the SOLAS amendments and the ISPS Code. These terms can be 
used interchangeably but serve to emphasize the Coast Guard's intention 
to apply security measures to those vessels we have determined are at 
risk of being involved in a transportation security incident.
    In addition, under MTSA, the terms ``Area Maritime Transportation 
Security Plan'' means a Port Security Plan developed in accordance with 
NVIC 9-02; ``Area Security Advisory Committee'' means the Port Security 
Committee; and ``Federal Maritime Security Coordinator'' means the 
cognizant Captain of the Port. The Coast Guard intends to align any 
future rulemaking with the MTSA terminology.
    The Coast Guard plans to publish a temporary interim rule no later 
than June 2003 and a final rule by November 2003. These dates are 
critical in order to uniformly implement the ISPS Code and SOLAS 
amendments, as well as meet the urgency set by the mandates in the 
MTSA.
    As such, the Coast Guard is announcing seven public meetings and 
requesting comments that will aid them in drafting the mandated interim 
rule and final rule.


What Will Be Discussed at the Public Meetings?


    Attendees should be prepared to discuss the implementation of SOLAS 
amendments and ISPS Code, including application to vessels engaged in 
domestic voyages in accordance with the MTSA, as well as domestic 
implications of implementing the recommended security measures 
described in recently published guidance (NVICs).


How Should I Prepare for the Public Meeting?


    Attendees should review the SOLAS amendments and ISPS Code, 
published NVICs, existing regulations in 33 CFR parts 120 and 128, 
section 102 of the MTSA, preliminary cost analysis, and associated 
supporting documents to evaluate the feasibility of recommended or 
required security measures.
    The ISPS Code and SOLAS amendments, and the preliminary costs 
analysis are included in this notice as Appendix B and Appendix C, 
respectively. The NVICs, MTSA, related public comments, and associated 
supporting documents are available for review in the public docket 
(USCG-2002-14069) at the locations under ADDRESSES.
    After evaluating these documents, the public should then prepare 
statements to be presented at the meetings or submit to the public 
docket (USCG-2002-14069) expressing any concerns and suggesting ways to 
implement the required measures. Attendees also should propose possible 
equivalencies to the SOLAS amendments and ISPS Code, and the MTSA 
requirements.


Who Should Attend the Public Meetings?


    Port Stakeholders. While the Coast Guard will be primarily 
responsible for ensuring the new SOLAS amendments and ISPS Code, and 
section 102 of the MTSA for U.S. ports are implemented through the 
development of Port Security Plans and establishment of Port Security 
Committees, we will need the cooperation of other Federal agencies, 
port authorities, State and local governments, local emergency 
responders, maritime industry associations, facility and vessel owners 
and operators and other port community stakeholders such as the owners 
of other structures located on or adjacent to U.S. navigable waters.
    Because Port Security Plans are overarching and address many areas 
of the maritime community, the plans will apply to commercial vessels 
and facilities, as well as to such entities as--
    [sbull] Recreational vessels and uninspected passengers vessels.
    [sbull] Nautical school vessels and sailing school vessels.
    [sbull] Small passenger vessels on domestic voyages.
    [sbull] Uninspected fishing vessels.
    [sbull] Oil spill response vessels.
    [sbull] Military installations and vessels.
    [sbull] Facilities that transfer, store, or otherwise handle dry 
bulk or general cargo.
    [sbull] Marinas.
    [sbull] Ship repair facilities.
    [sbull] Waterfront areas that are densely populated or host large 
public events.
    [sbull] Other areas within the port that are critical to port 
operations or public safety.
    Vessel Owners, Operators, and Charterers. Requirements are being


[[Page 79745]]


considered for operators of certain vessels to develop Vessel Security 
Assessments and Plans, designate Company and Vessel Security Officers, 
and implement security measures (see Appendix A). The Coast Guard 
considers these security measures to be integral for vessel security 
and appropriate for the majority of vessels operating in U.S. waters. 
Therefore, the Coast Guard would apply these requirements to such 
commercial vessels as--
    [sbull] All foreign ships, both cargo and passenger, required to 
comply with SOLAS;
    [sbull] All foreign ships, both cargo and passenger, of countries 
not signatory to SOLAS;
    [sbull] All vessels subject to 46 CFR subchapter I (cargo vessels);
    [sbull] All vessels subject to 46 CFR subchapter L (offshore supply 
vessels);
    [sbull] All passenger vessels subject to 46 CFR subchapters H and 
K;
    [sbull] All passenger vessels subject to 46 CFR subchapter T 
engaged on an International voyage;
    [sbull] All barges subject to 46 CFR subchapters D, I, and O;
    [sbull] All tankships subject to 46 CFR subchapters D and O;
    [sbull] All Mobile Offshore Drilling Units (MODUs) subject to 46 
CFR subchapter I-A; and
    [sbull] All towing vessels greater than 6 meters in registered 
length.
    Facility Owners or Operators. Requirements are being considered for 
operators of certain facilities to develop Facility Security 
Assessments and Plans, designate Facility Security Officers, and 
implement security measures (see Appendix A). The Coast Guard considers 
these security measures to be integral for facility security and 
appropriate for the majority of facilities servicing vessels that 
operate in U.S. waters or facilities that are on or adjacent to U.S. 
waters and pose a risk to them. Therefore, the Coast Guard would apply 
these requirements to such facilities as--
    [sbull] Facilities that handle cargo regulated under 33 CFR parts 
126, 127, and 154;
    [sbull] Facilities that service vessels certified to carry more 
than 150 passengers; and
    [sbull] Facilities that receive vessels on international voyages 
including vessels solely navigating the Great Lakes.


As an Affected Entity, What Information Should I Bring to the Public 
Meetings?


    Attendees should bring their recommendations and responses to the 
questions provided in Appendix A. Attendees should also be prepared to 
offer their best practices with regard to the security issues and 
comments on application, implementation and operating costs.


What Will Be the Format of the Public Meetings?


    The public meetings will follow a question-answer format. A 
facilitator will describe the SOLAS amendment and ISPS Code 
requirements and the Coast Guard's implementation strategy. The 
facilitator then will pose a series of questions and solicit attendees' 
responses. We will discuss, in this order, general security provisions, 
port security provisions, vessel security provisions, facility security 
provisions, and other security provisions. Appendix A provides the 
intended format of the meetings.


What Other Information Would Assist the Coast Guard in Drafting the 
Temporary Interim Security Rule?


    We request information about all current Federal, State, and local 
governmental laws, procedures, regulations, and standards that are 
either functioning or that are planned. We also request industry to 
provide any current and planned standards and procedures covering the 
security of vessels and facilities, and recommendations toward 
additional regulations.


What Are the Estimated Costs of Implementing the SOLAS Amendments, the 
ISPS Code, and Section 102 of the MTSA, as Discussed in This Notice?


    For the purposes of good business practice and in order to comply 
with regulations promulgated by other Federal and State agencies, many 
companies have spent, to date, a substantial amount of money and 
resources to upgrade and improve security. The costs discussed in 
Appendix C do not include resources these companies have already spent 
to enhance security. To estimate costs, we contacted operators to 
determine what specific security improvements they had made and the 
costs they had incurred since the events of September 11, 2001. We 
found that these operators were reluctant to share their information 
with us. Consequently, the estimates in the following analysis are 
based heavily on Coast Guard judgments.
    We realize that each company engaged in maritime commerce would not 
implement the ISPS Code exactly as presented in this analysis. 
Depending on each company's choices, some companies could spend much 
less than what is estimated herein while others could spend 
significantly more. In general, we assume that each company would 
implement the ISPS Code based on the types of vessels and facilities it 
owns or operates and whether it engages in international or domestic 
trade.
    Based on this analysis, the first year cost would be approximately 
$1.4 billion, with costs of approximately Present Value (PV) $6.0 
billion over the next 10 years (2003-2012, 7 percent discount rate). 
The preliminary cost analysis in Appendix C presents the costs in three 
sections: vessel security, facility security, and port security. The 
following is a summary of the preliminary cost analysis.
    [sbull] Vessel Security. The first-year cost of purchasing 
equipment, hiring security officers, and preparing paperwork is 
approximately $188 million. Following initial implementation, the 
annual cost is approximately $144 million. Over the next 10 years, the 
cost would be PV $1.1 billion approximately. The paperwork burden 
associated with planning would be approximately 140,000 hours in the 
first year and 7,000 hours in subsequent years.
    [sbull] Facility Security. The first-year cost of purchasing 
equipment, hiring security officers, and preparing paperwork is an 
estimated $963 million. Following initial implementation, the annual 
cost is approximately $535 million. Over the next 10 years, the cost 
would be PV $4.4 billion approximately. The paperwork burden associated 
with planning would be approximately 465,000 hours in the first year 
and 17,000 hours in subsequent years.
    [sbull] Port Security. The first-year cost of establishing Port 
Security Committees and creating Port Security Plans for all port areas 
is an estimated $120 million. The second-year cost is approximately 
$106 million. In subsequent years, the annual cost is approximately $46 
million. Over the next 10 years, the cost would be PV $477 million 
approximately. The paperwork burden associated with planning would be 
approximately 1,090,000 hours in 2003, 1,278,000 hours in 2004, and 
827,000 hours in subsequent years.


    Dated: December 20, 2002.
Paul J. Pluta,
Rear Admiral, U.S. Coast Guard, Assistant Commandant for Marine Safety, 
Security and Environmental Protection.


Appendix A: Maritime Security Issues for Discussion


General Security Provisions


    1. Obligations of Contracting Government with respect to 
security. The SOLAS amendments (regulation 3) and ISPS Code (part A, 
section 4, and part B, paragraph 4) lay out a series of requirements 
for


[[Page 79746]]


Contracting Governments and Administrations to mandate security 
levels that are appropriate for their vessels and ports. The Coast 
Guard intends to implement these requirements in coordination with 
the Homeland Security Advisory System (HSAS). Homeland Security 
Presidential Directive (HSPD)-3 defines a five-tiered system for 
setting threat levels. We intend to implement Maritime Security 
(MARSEC) levels, which directly correspond to security levels as 
discussed in the SOLAS amendments and the ISPS Code. The MARSEC 
levels will be linked to the HSAS, as follows, to serve as the 
maritime sector's tool for communicating risk.


------------------------------------------------------------------------
  Homeland Security Advisory System
                (HSAS)                  Maritime Security (MARSEC) Level
------------------------------------------------------------------------
Low: Green...........................  MARSEC Level 1.
Guarded: Blue........................
Elevated: Yellow.....................
High: Orange.........................  MARSEC Level 2.
Severe: Red..........................  MARSEC Level 3.
------------------------------------------------------------------------


    We intend to communicate these MARSEC levels to our vessels and 
ports using such methods as Broadcast Notice to Mariners, community 
public alert systems, fax and e-mail alert lists, or other similar 
methods, and intend that these communication processes be addressed 
in the port security plan. To meet the SOLAS requirement to have a 
point of contact through which vessels and facilities can request 
advice or assistance or report any security concerns (chapter XI-2, 
regulation 7), we anticipate using the toll-free phone number of our 
National Response Center or a regional toll-free number as 
coordinated with other agencies. This number and point of contact 
information would be published in the Coast Pilot, on Web sites, and 
in other public information formats.
    [sbull] From a port perspective, would these communication 
processes meet your needs? Why or why not?
    [sbull] From a vessel perspective, would these communication 
processes meet your needs? Why or why not?
    2. Procedures for Authorizing a Recognized Security 
Organization. The ISPS Code (part A, section 4, and part B, 
paragraph 4) allows Contacting Governments to delegate certain 
security related duties to Recognized Security Organizations (RSO). 
In order to ensure proper implementation at the outset of the MTSA 
as well as the international mandates, and because of the 
accelerated implementation timeline, the Coast Guard does not intend 
to delegate its authority to an RSO. However, in the future the 
Coast Guard may consider such delegation.
    [sbull] Do you believe the Coast Guard should delegate its 
authority to an RSO keeping in mind the limitations in the ISPS Code 
(part A, section 4.3)?
    [sbull] Do you believe there should be additional qualification 
and competency requirements to those listed in the ISPS Code part B, 
paragraph 4.5 for RSOs?
    3. Consideration of other Organizations competent in Maritime 
Security. The Coast Guard recognizes that security assessments and 
plans for the maritime community may require the assistance of 
organizations with maritime security competency. Currently there is 
not a standard for these organizations or companies; however, a 
benchmark has been established in the ISPS Code part B, paragraph 
4.5.
    [sbull] Should the Coast Guard formalize professional standards 
for companies or organizations that seek to do business providing 
guidance on vessel and facility security assessments and plans?
    [sbull] Should the Coast Guard vet these organizations or are 
you aware of an alternative quality standard that should be 
associated with them?
    4. Procedures for Accepting Alternatives and Equivalencies. The 
SOLAS amendments to chapter XI-2, regulation 11 and 12 along with 
part B, paragraph 4.26 and 4.27 of the ISPS Code allow Contracting 
Governments to permit alternatives and equivalencies to the security 
requirements if they are at least as effective as the mandates and 
are reported to the Organization. This concept aligns with 
traditional SOLAS language and provides for some flexibility in 
implementation. The Coast Guard intends to allow alternatives and 
equivalencies for vessels and some facilities, as appropriate. The 
Coast Guard would consider allowing a company that operates a number 
of similar vessels and terminals, to develop a master plan provided 
all aspects of the operation are addressed in lieu of individual 
plans as provided for in SOLAS chapter XI-2, regulation 11 and 12. 
Provisions for the submission of requests for the Coast Guard to 
consider alternatives or equivalencies will be similar to that 
already permitted in 46 CFR Subchapters, for example 46 CFR 30.15 or 
70.15.
    [sbull] Do you anticipate that your organization would request 
an alternative or equivalency? If so, why?
    [sbull] Do you believe the submission format proposed by the 
Coast Guard is appropriate?
    5. Procedures for Accepting Industry Standards. In addition to 
the equivalencies and alternative provisions discussed above, the 
Coast Guard is considering, for those vessels that are currently not 
required to meet SOLAS, accepting industry standards for security 
requirements to be used as an equivalent or alternative. To ensure 
security for our maritime community remains high, these standards 
would be reviewed and approved nationally. The Coast Guard also 
believes that in order to be deemed acceptable, compliance with an 
industry standard should be subject to verification by a third party 
audit procedure acceptable to the Coast Guard. The concept of this 
provision aligns with the current SOLAS provisions in chapter XI-2, 
regulations 11 and 12. The submission process will be similar to 
that found at 46 CFR 50.20-30, ``alternative materials or methods of 
construction'', whereby the proposed industrial standard will be 
submitted to the Commandant for review.
    [sbull] Do you know of an industry standard that may be 
considered equivalent (or could be equivalent with revision) to the 
requirements of the SOLAS amendments and the ISPS Code?
    [sbull] If an industry standard were available, would you 
consider implementing it? If so, why?
    6. Declaration of Security (DoS). The ISPS Code (part A, section 
5) requires Contracting Governments to determine when a DoS is 
required for vessels and facilities conducting vessel/port interface 
or vessel-to-vessel activities. A DoS is a document that establishes 
an agreement between a vessel and a facility, or between vessels, on 
their security arrangements to ensure their coordination and 
communication is clearly set out. At this time, the Coast Guard 
intends to issue national guidelines when a DoS must be executed, 
and the form of the DoS. The Coast Guard also intends to have each 
Port Security Committee determine the conditions for executing a 
DoS. Declarations of Security will be addressed in each Port 
Security Plan. In addition, the Port Security Committee will be 
asked to consider and include guidance in the Port Security Plan on 
what actions to take when vessels request a DoS or request to enter 
the Port with a security level higher than the Port's level. The 
ISPS Code also allows Administrations to give guidance on when their 
ships should request a DoS during a port call or when interacting 
with other vessels. The Coast Guard intends to issue this as 
guidance, either within regulations or as a separate document 
(NVIC), to assist ship owners in the development of their vessel 
security plans.
    [sbull] During what operations or security levels do you believe 
a DoS would be appropriate to facilitate coordination of security 
measures between a facility and a vessel?
    [sbull] What format, either regulation or guidance, would you 
prefer to assist you in developing your vessel security plan to 
address DoSs?
    7. Security of information contained in port, vessel and 
facility security assessments and plans. The ISPS Code (part A, 
sections 9 and 16) and the MTSA (46 U.S.C. section 70101(d)) require 
documents related to security, especially security assessments and 
plans, to be kept in a manner that is protected from unauthorized 
access or disclosure. However, the Coast Guard will require access 
to vessel and facility records, as well as those held by other 
structures located on or adjacent to U.S. navigable waters, for the 
purpose of conducting or verifying assessments and plans. This 
information may be required to be provided upon request by the Coast 
Guard. The Coast Guard intends to require information related to 
Port Security, Vessel Security, and Facility Security Plans to be 
designated as Security Sensitive Information (SSI) in a manner 
similar to that used by the airline industry. Transportation 
Security Administration (TSA) is considering revisions to the SSI 
regulations (49 CFR part 1520) to enable this classification.
    [sbull] Do you believe that a SSI classification will be 
sufficient? If not, why?
    [sbull] Do you have a suggestion for an alternative way to 
protect this information yet allow approvals and review?


Port Security Provisions


    8. Port Security Plans and Committees. The requirements for 
ports stem from the development of the new SOLAS amendments and the 
ISPS Code as well as the MTSA (46 U.S.C. sections 70103, 70104 and 
70112). The


[[Page 79747]]


definition of port facilities is broad and covers all aspects of the 
interface between a ship and a facility, including anchorages and 
other areas typically considered by the United States as public 
waterways, as well as other structures located on or adjacent to 
U.S. navigable waters. Thus, the Coast Guard intends to invoke the 
alternative provided in part A, section 16.4 of the ISPS Code and 
combine facility plans with a port plan to encompass all of our U.S. 
navigable waters. The majority of the SOLAS amendments and ISPS Code 
requirements would be applied to U.S. facilities to ensure a 
seamless ship-to-facility security interface. However, the port 
security requirements will be the overarching instrument for 
implementing security communications and ensuring compliance. For 
U.S. purposes, the Port Facility Security Officer (PFSO) will be the 
Coast Guard Captain of the Port (COTP) who may require Facility 
Security Officers undertake certain responsibilities (such as 
signing a DoS), as outlined in the Port Security Plan (PSP). The 
Port Security Committees will assist the PFSO in developing the PSP 
and will be intimately involved in the exercises to ensure it 
remains effective. The Coast Guard intends to issue regulations that 
will lay out the Port Security Committees' and the PFSOs' 
responsibilities and guidance for the committee membership.
    [sbull] Who do you believe should be involved in the Port 
Security Committees?
    [sbull] Do you have a suggestion for how to ensure the 
involvement of the affected community listed in the section titled 
``Who should attend the public meetings?'' of the notice?
    9. Port Security Assessments Requirement. The Coast Guard is 
considering requirements for Port Security Assessments (PSAs), as 
discussed in ISPS Code part A, section 15 and part B paragraphs 15.1 
through 15.16 as well as the MTSA (46 U.S.C. section 70102). The 
regulation also would contain a description of the role of Port 
Security Committees. Many assessments of this type have already been 
performed in ports and should be a good foundation for this 
requirement. Since the PSA will be integral in the development of 
the PSP, requirements for its update and review will also be 
included.
    [sbull] Do you believe that your Port Security Committee, as 
described in the NVIC and above, is able to provide enough 
experience and expertise to develop PSAs? If no, why?
    [sbull] Does your port currently have an assessment that you 
believe could be used for a PSA?
    10. Port security control of vessels, facilities, and 
operations. The requirements for control of vessels are outlined in 
the SOLAS amendments, regulation XI-2/9, and the ISPS Code part B, 
paragraphs 4.29 through 4.46. The Coast Guard intends to implement 
control measures as detailed in the SOLAS amendments and ISPS Code 
requirements. The information from a vessel's advanced notice of 
arrival, which is being revised under a separate rulemaking, and 
other means of verifying compliance with the SOLAS amendments and 
ISPS Code, will provide our COTPs the ability to assess appropriate 
control measures for these vessels. In addition, the Port Security 
Committee will be asked during the PSA process to review areas 
within the port, such as fleeting areas, regulated navigation areas, 
anchorages, and areas near facilities, to assess whether these areas 
should have security zones or patrol requirements established at 
certain security levels. If so, the Port Security Plan then would be 
required to address these security zones (or other security 
requirements) and arrangements to permanently establish the zones. 
Alternatively, such measures may be promulgated through regulation. 
The regulation would contain specific procedures for triggering 
security zone implementation through a broadcast notice to mariners 
or security level communication to the maritime community. Thus, 
mariners would know precisely what to expect in their waterways 
during higher security levels and facilities would also know if any 
operations would be restricted due to waterway concerns.
    [sbull] Do you believe a system of waterway and facility 
restrictions pre-designated in regulations or other means (such as a 
Coast Pilot) would assist in your compliance with security 
requirements?
    [sbull] Do you have any suggestions of other ways to restrict or 
control activities within the port area at higher security levels?
    11. Port security training and exercises. Part A, section 18 and 
part B, paragraphs 18.1 through 18.6 of the ISPS Code detail 
training, drills, and exercise requirements for port facilities. To 
meet these requirements, the Coast Guard would require a quarterly 
exercise of the Port Security Plan. In addition, training 
requirements for Port personnel would also have to be included in 
the Port Security Plan. At this time, the Coast Guard does not 
expect to mandate a formal training course for port security 
personnel. However, at a minimum, facilities will have to ensure 
that security personnel receive appropriate training, consistent 
with part B of the ISPS Code, to ensure that they can carry out 
their assigned responsibilities. This includes, where appropriate, 
guidance on firearms safety. Drill requirements mandated for port 
security will be met in conjunction with drills for facility plans 
on a quarterly basis.
    [sbull] Under this scheme, would you participate in a Port 
Security Plan exercise?
    [sbull] Do you have a suggestion on a type of Port Security Plan 
exercise other than those listed in Part B, paragraph 18.6?
    [sbull] Do you have a port personnel security training program 
or suggestions on training guidance for safety and security 
personnel?


Vessel Security Provisions


    12. Incorporation by Reference. The Coast Guard is considering 
accepting national, State, and industry security standards to meet 
certain security requirement(s), as appropriate, such as a vessel 
security plan that incorporates the use of motion detection 
equipment that meets an accepted national standard.
    [sbull] Do you know of a national, State, or industry standard 
that could be used in the marine environment?
    [sbull] If a national, State, or industry standard was 
available, would you consider implementing it? If so, why?
    13. Obligations of the company. The obligations and specific 
requirements of companies are discussed in SOLAS amendments 
(regulation 4 and 5) and the ISPS Code (part A, section 6 and part 
B, paragraphs 6.1 through 6.8). The Coast Guard would require Vessel 
Security Plans (VSPs) to describe how the company will meet its 
obligations and requirements.
    [sbull] Do you believe that this adequately addresses the 
obligations and specific requirements of a company? If no, why?
    [sbull] Do you have a suggestion for how to ensure that 
companies meet these obligations and requirements?
    [sbull] What should the obligations of towing companies be with 
respect to the responsibility for barges?
    14. Vessel Security Requirements. The SOLAS amendments 
(regulation 4) and ISPS Code (part A, section 7) require that 
vessels act upon security levels set by Contracting Governments 
through appropriate protective measures by carrying out certain 
specified activities (part A, section 7.2). The MTSA requires the 
Coast Guard to consider the types vessels that are likely to be 
involved in a transportation security incident. For the purposes of 
this notice and the Coast Guard discussion in Appendix C, cost 
impact was only developed for those vessels listed in NVIC 10-02 and 
also listed in the section titled, ``Who should attend the public 
meetings?'' The Coast Guard also recognizes that many other vessels 
could benefit from compliance with these requirements therefore, the 
Coast Guard is considering extending them to all vessels, including 
small passenger vessels or uninspected fishing vessels.
    [sbull] Do you believe that the application of the requirements 
in part A, section 7-13 of the ISPS Code for the vessels indicated 
in the section titled ``Who should attend the public meetings?'' is 
appropriate? If not, why?
    [sbull] Do you believe these security measures should apply to 
other vessels, not already listed?
    [sbull] Do you believe that these activities and protective 
measures adequately address the security of a vessel? If no, why?
    [sbull] Do you have a suggestion for appropriate security 
measures that a vessel can take to meet these requirements that are 
not already listed in part B, paragraphs 9.1 through 9.49?
    15. Vessel Security Assessments (VSA) Requirement. The ISPS Code 
part A, section 8, and part B, paragraphs 8.1 through 8.14, as well 
as the MTSA (46 U.S.C. sections 70102 and 70166), require that a 
vessel perform a VSA that includes an on-scene security survey and 
provides details of those elements that the VSA will include. The 
VSA is integral in developing and updating the Vessel Security Plan. 
The Coast Guard would require VSAs for all vessels indicated in the 
section titled ``Who should attend the public meetings?'' of the 
notice. The Coast Guard would review these assessments when Vessel 
Security Plans are submitted for approval.
    [sbull] Do you have any suggestions on how to best conduct a VSA 
and review results? Is there a current practice to meet this 
requirement?
    [sbull] For vessels on domestic voyages, are there any 
appropriate alternatives to a VSA that could be considered?


[[Page 79748]]


    16. Vessel Security Plan (VSP) Requirement. The ISPS Code part 
A, section 9, and part B, paragraphs 9.1 through 9.53, as well as 
the MTSA (46 U.S.C. sections 70103 and 70104), require that VSPs be 
developed, taking into consideration the VSA, make provisions for 
the three MARSEC Levels, and be reviewed and updated. The Coast 
Guard's requirements would incorporate all of these elements and 
would also provide an outline that the VSP would follow or be cross-
referenced using a similar approach as done in 33 CFR 155.1030.
    [sbull] Do you have any suggestions on additional items the VSP 
should address?
    [sbull] Do you have a suggestion or a best practice to meet this 
VSP requirement?
    [sbull] Would you find an outline a valuable aid to meeting 
these requirements? If not, why?
    17. Submission of Vessel Security Plans for approval. The ISPS 
Code (part A, section 9) requires that vessels carry on board a VSP 
that is approved by the Administration. The MTSA further requires 
VSPs to be approved by the Secretary. Therefore, for foreign vessels 
required to comply with SOLAS, the Coast Guard will deem Flag state 
approval of a VSP that meets the requirements of SOLAS and the ISPS 
Code to be approval of the Secretary for purposes of the MTSA. The 
Coast Guard would approve all other VSPs at the Marine Safety Center 
or at the COTP level, depending on the class of vessel. The 
submission format would be similar to that already required in 33 
CFR 120.305. In addition, for efficiency and timeliness, the Coast 
Guard is considering alternative methods of Coast Guard approval for 
VSPs for certain vessels that operate on domestic voyages. One 
possible alternative includes Coast Guard approval of a unified or 
corporate plan that would be implemented on a similarly situated 
fleet of vessels in common ownership. Another alternative could 
include verification of implementation of a pre-approved security 
plan for a particular segment of industry.
    [sbull] Do you have suggestions on how these approvals could be 
streamlined? Is there an alternative process?
    [sbull] Do you believe the submission format proposed by the 
Coast Guard is appropriate?
    18. Existing Security Measures for Certain Vessels. The Coast 
Guard is evaluating the need for retaining certain security measures 
in existing regulations, 33 CFR part 120, for those vessels (e.g., 
large passenger vessels) that could be involved in a transportation 
security incident that results in a catastrophic loss of life. The 
Coast Guard considers that 33 CFR part 120 meets the requirements of 
the SOLAS amendments and the ISPS Code.
    [sbull] Do you believe that additional security requirements are 
needed for certain vessel types? If so, why and what would those 
requirements be?
    19. Vessel Security Recordkeeping. The ISPS Code part A, section 
10, and part B, paragraphs 10.1 and 10.2, require certain security 
records to be kept on board the vessel and retained for a period 
specified by the Administration. The Coast Guard would require all 
vessels to keep these records for at least 2 years and make them 
available for review during inspections or boardings. Presently, 
there are no requirements for the format of these records. However, 
their review would have to provide an inspector with the appropriate 
information to ensure the vessel's security plan is properly 
implemented. The Coast Guard does not intend to prescribe where 
these records are kept nor their format.
    [sbull] Do you have a suggestion or best practice related to 
recordkeeping you believe the Coast Guard should require?
    [sbull] Do you wish the Coast Guard to prescribe a format for 
these records?
    20. Company Security Officer Designation. The ISPS Code (part A, 
section 11) as well as the MTSA (46 U.S.C. section 70103), specify 
that the Company must designate a Company Security Officer (CSO) and 
details their duties, responsibilities, and competencies (part A, 
sections 13.1 and 13.5 and part B, paragraph 13.1). In addition, 
CSOs are required to participate in security exercises as discussed 
in part B, paragraph 13.7 of the ISPS Code. The Coast Guard intends 
to include these requirements for all vessels indicated in the 
section titled ``Who should attend the public meetings?'' The Coast 
Guard recognizes that many security programs are already in place 
and have personnel working in the maritime community with the 
experience and the competencies reflected in the ISPS Code. At this 
time, the Coast Guard does not intend to certify courses as meeting 
the standards of the ISPS Code or require any type of license for a 
CSO. Rather, the Coast Guard intends to accept Company certification 
for these officers indicating that they have the knowledge, 
experience and competencies as required by the ISPS Code. The Coast 
Guard also intends to have CSOs or Companies provide proof that CSOs 
have participated in annual exercises, and records of that 
participation would have to be retained for 2 years.
    [sbull] Do you believe the Coast Guard should require CSOs to 
attend training?
    [sbull] Do you believe Company certification is appropriate or 
do you have a suggestion for an alternate verification for the CSO 
qualifications?
    [sbull] Do you believe proof of participation in annual 
exercises should be retained for 2 years? If not, how long? Why?
    21. Vessel Security Officer Designation. The ISPS Code (part A, 
section 11) as well as the MTSA (46 U.S.C. section 70103), specify 
that each vessel shall designate a Vessel Security Officer (VSO) and 
details their duties, responsibilities, and competencies (part A, 
section 13.2 and part B, paragraphs 13.1 and 13.2). In addition, 
VSOs are required to participate, if available, in security 
exercises as discussed in part B, paragraph 13.7 of the ISPS Code. 
Since many security programs and personnel are already working in 
the maritime community and have the competencies reflected in the 
ISPS Code, at this time, the Coast Guard does not intend to certify 
courses as meeting the standards of the ISPS Code or require any 
type of license for a VSO. Rather, the Coast Guard intends to accept 
Company certification for these officers indicating that they have 
the knowledge, experience and competencies as required by the ISPS 
Code. The Coast Guard is also considering alternatives for some 
vessel classes, such as barges, to allow a Company Security Officer 
in lieu of a VSO with duties that encompass both. It should be noted 
that there is no prohibition to the master also being designated as 
the VSO although on large vessels, this may be impractical.
    [sbull] Do you believe the Coast Guard should require VSOs to 
attend formal training?
    [sbull] Do you believe Company certification is appropriate or 
do you have a suggestion for an alternate verification for the VSO 
qualifications?
    [sbull] Do you have any suggestions for certain classes of 
vessels being allowed an alternative to a VSO? If so, how or who 
would you make responsible for the VSO duties?
    22. Security training and drill requirements for vessel 
personnel. The ISPS Code (part A, sections 13.3 and 13.4, and part 
B, paragraph 13.3) as well as section 109 of the MTSA, specify that 
vessel personnel having specific security duties and 
responsibilities be trained in their duties and have the knowledge 
needed to carry them out. Part B, paragraph 13.4 also requires a 
basic security knowledge and competency for all personnel employed 
on the vessel to ensure security awareness. In addition, vessel 
personnel are required to participate in security drills as 
discussed in part A, section 13.4, and part B, paragraphs 13.5 and 
13.6 of the ISPS Code. The Coast Guard intends to allow vessel 
masters, VSOs, or CSOs to certify that vessel personnel have 
received the training required to fulfill their security duties, if 
applicable or the general security awareness training required for 
all personnel. A record (such as a training record) kept on board 
the vessel or any other form of acknowledgment (such as a log entry) 
would be sufficient for this purpose. A record of drills would also 
be required and is discussed in paragraph number 19 of this 
appendix.
    [sbull] Do you believe the Coast Guard should require vessel 
personnel to attend formal training?
    [sbull] Do you believe prescribing the format for training 
records would assist you in meeting these requirements?
    23. Certification for vessels. The ISPS Code, parts A and B, 
section 19, requires Administrations to verify and certify by 
issuing an International Ship Security Certificate (ISSC) that those 
vessels subject to SOLAS comply with the applicable requirements of 
SOLAS chapter XI-2 and the ISPS Code. The Coast Guard intends to 
amend 46 CFR 2.01-25 by adding new paragraph (a)(viii) referring to 
ISSC. Compliance with regulations for domestic vessels will be 
verified during issuance and renewal of Certification of Inspection. 
Issuance or endorsement of the Certificate of Inspection (COI) would 
be contingent upon a vessel's compliance with these regulations. 
Vessels that are not required to be inspected by the Coast Guard 
under title 46 of the U.S.C, would be required to have proof on 
board the vessel certifying that the vessel meets these requirements 
and that they are implementing their VSP.
    [sbull] Do you have any other suggestions for verification and 
certification that vessels comply with security regulations?


[[Page 79749]]


Facility Security Provisions


    24. Incorporation by Reference. The Coast Guard is considering 
accepting national, State, and industry security standards to meet 
certain security requirement(s), as appropriate, e.g., a facility 
security plan that incorporates lighting or fencing equipment that 
meets an accepted national standard.
    [sbull] Do you know of a national, state, and industry standard 
that could be used in the marine environment?
    [sbull] If a national, state, and industry standard were 
available, would you consider implementing it? If so, why?
    25. Facility Security Requirement. The SOLAS amendments (chapter 
XI-2, regulation 10) and ISPS Code parts A and B, section 14 require 
that facilities act upon security levels set by Contracting 
Governments through appropriate protective measures by carrying out 
certain specified activities (part A, section 14.2). The MTSA 
requires the Coast Guard to consider the types facilities that are 
likely to be involved in a transportation security incident. For the 
purposes of this notice and the Coast Guard discussion in Appendix 
C, cost impact was only developed for those facilities listed in 
NVIC 11-02 and also listed in the section titled, ``Who should 
attend the public meetings?'' The Coast Guard also recognizes that 
many other facilities could benefit from compliance with these 
requirements therefore, the Coast Guard is considering extending 
them to all facilities, including dry bulk or general cargo 
facilities or ship repair facilities.
    [sbull] Do you believe that the application of the requirements 
in part A, section 14-18 of the ISPS Code for the facilities 
indicated in the section titled ``Who should attend the public 
meetings?'' is appropriate? If not, why?
    [sbull] Do you believe these security measures should apply to 
other facilities, not already listed?
    [sbull] Do you believe that these activities and protective 
measures adequately address the security of a facility? If no, why?
    [sbull] Do you have a suggestion for appropriate security 
measures that a facility can take to meet these requirements that 
are not already listed in part B, paragraphs 16.1 through 16.63?
    26. Facility Security Assessments (FSA) Requirement. The ISPS 
Code parts A and B, section 15, as well as the MTSA (46 U.S.C. 
sections 70102 and 70116), require that a facility perform a FSA 
that includes an on-scene security survey and provides details of 
those elements that the FSA will include. The FSA is integral in 
developing and updating the Facility Security Plan. The Coast Guard 
is considering requiring FSAs for all facilities indicated in the 
section titled ``Who should attend the public meetings?'' of the 
notice. The Coast Guard intends to review these assessments when 
Facility Security Plans are submitted for approval.
    [sbull] Do you have any suggestions on how to best conduct a FSA 
and review the results? Is there a current practice to meet this 
requirement?
    [sbull] Are there any appropriate alternatives to a FSA that 
could be considered?
    27. Facility Security Plans. The ISPS Code parts A and B, 
section 16, as well as the MTSA (46 U.S.C. sections 70103 and 
70104), require that FSPs be developed taking into consideration the 
facility security assessment, make provisions for the three MARSEC 
Levels, and be reviewed and updated. The Coast Guard is considering 
requirements that incorporate all of these requirements and also 
would provide an outline for the FSP. The outline would follow or be 
cross-referenced using a similar approach as done in 33 CFR part 
155.1030.
    [sbull] Do you have any suggestions on additional items the FSP 
should address?
    [sbull] Do you have a suggestion or a best practice to meet this 
FSP requirement?
    [sbull] Would you find an outline a valuable aid to meeting 
these requirements? If not, why?
    28. Submission of Facility Security Plans for approval. The ISPS 
Code (part A, section 16) requires facilities to develop and 
maintain a facility security plan (FSP) that is approved by the 
Contracting Government in whose territory the facility is located. 
The Coast Guard intends to review and approve FSPs at the COTP 
level. The submission format would be similar to that already 
required in 33 CFR 120.305. The Coast Guard is considering the 
submission of a single FSP for companies that own and operate both 
the facility and vessels that call on that facility.
    [sbull] Do you have suggestions on how these approvals could be 
streamlined or an alternative process?
    [sbull] Do you believe the submission format proposed by the 
Coast Guard is appropriate?
    29. Facility Security Recordkeeping. Although records for 
facilities are not specifically addressed in the ISPS Code, the 
Coast Guard intends to require certain security records be kept for 
certain security related activities and incidents and retained for a 
period specified by the Coast Guard. The Coast Guard would require 
these records to be kept for at least 2 years and will review them 
during inspections. Presently, there are no requirements for the 
format of these records. However, their review would have to provide 
an inspector with the appropriate information to ensure the 
facility's security plan is properly implemented. The Coast Guard 
does not intend to prescribe where these records are kept nor their 
format.
    [sbull] Do you have a suggestion or best practice related to 
recordkeeping you believe the Coast Guard should require?
    [sbull] Do you wish the Coast Guard to prescribe a format for 
these records?
    30. Facility Security Officer. The ISPS Code, parts A and B, 
section 17, as well as the MTSA (46 U.S.C. section 70103), specify 
that the each facility shall designate a Facility Security Officer 
(FSO) and details their duties, responsibilities, and competencies 
(part A, section 17.2 and part B, paragraphs 17.1 and 17.2). In 
addition, FSOs are required to participate in security exercises as 
discussed in part B, paragraph 18.6 of the ISPS Code. Since many 
security programs and personnel are already working in the maritime 
community and have the competencies reflected in the ISPS Code, at 
this time, the Coast Guard does not intend to certify courses as 
meeting the standards of the ISPS Code or require any type of 
license for a FSO. Rather, the Coast Guard intends to accept Company 
certification for these officers indicating that they have the 
knowledge, experience and competencies as required by the ISPS Code. 
It should be noted that there is no prohibition of the FSO having a 
collateral duty provided the individual is able to perform the 
duties and responsibilities required by the ISPS Code and the 
approved FSP.
    [sbull] Do you believe the Coast Guard should require FSOs to 
attend training?
    [sbull] Do you believe Company certification is appropriate or 
do you have a suggestion for an alternate verification for the FSO 
qualifications?
    [sbull] Would there be a case where a FSO may perform their 
duties for more than one facility?
    [sbull] Do you believe proof of participation in annual 
exercises should be retained for 2 years? If not, how long? Why?
    31. Training, drills and exercises on Facility Security. The 
ISPS Code, parts A and B, section 18, as well as section 109 of the 
MTSA, specify that facility personnel having specific security 
duties and responsibilities be trained in their duties and have the 
knowledge needed to carry them out. Part B, paragraph 18.3 also 
requires a basic security knowledge and competency for all personnel 
employed at the facility to ensure security awareness. In addition, 
facility personnel are required to participate in security drills as 
discussed in part A, section 18 and part B, paragraphs 18.4 and 18.6 
of the ISPS Code. The Coast Guard intends to allow FSOs to certify 
that facility personnel have received the training required to 
fulfill their security duties, if applicable or the general security 
awareness training required for all personnel. A record (e.g., a 
training record) kept or any other form of acknowledgment (e.g., a 
log entry) would be sufficient for this purpose. A record of drills 
would also be required and is discussed in item number 28 of this 
notice.
    [sbull] Do you believe the Coast Guard should require facility 
personnel to attend training?
    [sbull] Do you believe prescribing the format for training 
records would assist you in meeting these requirements?
    32. Certification for facilities. The ISPS Code does not 
specifically require that each facility be certified. The Coast 
Guard would review and approve the FSP and would require companies 
to certify their compliance with these requirements and that each 
facility has drafted and implemented an FSP. The Coast Guard would 
inspect facilities to verify compliance.
    [sbull] Do you have any suggestions for verification and 
certification that facilities comply with security regulations?
    [sbull] Do you believe the Coast Guard should allow companies to 
certify their facilities?


Other Security Provisions


    33. Permanent hull marking requirement. The SOLAS amendments 
created a new regulation in chapter XI-1 (regulation 3) that 
requires vessels to have their identification number permanently 
marked on their hull and in an easily accessible place on the 
transverse bulkhead of the machinery space or on another suitable 
interior location, as specified. At this time, the Coast Guard does 
not intend to extend the application of this requirement to vessels 
limited to domestic


[[Page 79750]]


voyages. However, all vessels subject to SOLAS and conducting 
international voyages, including towing vessels and offshore supply 
vessels whose international tonnage is greater than 300 gross tons 
(gt), would be required to comply with this regulation when the 
SOLAS amendments enter into force.
    [sbull] Do you believe the Coast Guard should extend this 
requirement to vessels limited to domestic voyages? If so, why?
    34. Continuous Synopsis Record requirement. The SOLAS amendments 
created a new regulation in chapter XI-1 (regulation 5) that 
requires vessels to maintain and update a Continuous Synopsis 
Record, to be kept on board, that contains information such as the 
name of the flag Administration, the date of the vessel's registry, 
the vessel's identification number, etc. At this time, the Coast 
Guard does not intend to extend the application of this requirement 
to vessels limited to domestic voyages. However, all vessels subject 
to SOLAS and conducting international voyages, including towing 
vessels and offshore supply vessels whose international tonnage is 
greater than 500 gt would be required to comply with this regulation 
when the SOLAS amendments enter into force.
    [sbull] Do you believe the Coast Guard should extend this 
requirement to vessels limited to domestic voyages? If so, why?
    35. Security alert system requirement. The SOLAS amendments 
created a new regulation in chapter XI-2 (regulation 6) that 
requires vessels to have a security alert system. For the purposes 
of this notice and the Coast Guard discussion in Appendix C, cost 
impact was only developed for this requirement to those vessels 
required to meet SOLAS chapter XI-2. However, the Coast Guard is 
considering applying the requirement to vessels limited to domestic 
voyages that are engaged in the transport of certain dangerous 
cargos. The Coast Guard also recognizes that many other vessels 
could benefit from compliance with this requirement such as certain 
passenger vessels or towing vessels.
    [sbull] Do you believe this requirement would benefit vessels 
limited to domestic voyages engaged in the transport of certain 
dangerous cargos?
    [sbull] Do you believe the Coast Guard should extend this 
requirement to other vessels limited to domestic voyages? If so, 
why?
    36. Fixed and floating platforms requirements. The International 
Maritime Organization issued a resolution titled, ``Establishment of 
Appropriate Measures to Enhance the Security of Ships, Port 
Facilities, Mobile Offshore Drilling Units on Location and Fixed and 
Floating Platforms Not Covered by Chapter XI-2 of the 1974 SOLAS 
Convention'' which was adopted by the Conference on Maritime 
Security as Resolution 7 on December 12, 2002. This resolution 
encourages Contracting Governments to consider security requirements 
for these maritime operators and platforms. The Coast Guard is 
considering including these entities in its Port Security Plan 
regime. We are also working with the offshore industry to develop 
security standards that would provide a level of security equivalent 
to that being established for land based facilities, yet tailored to 
the unique offshore operating environment. Once acceptable offshore 
industry security standards are determined, such standards may be 
incorporated into regulations as part of a separate rulemaking 
procedure.
    [sbull] Do you believe the Coast Guard should extend security 
requirements to offshore platforms? If so, why?
    37. Seafarers' identification criteria requirements. The MTSA 
(46 U.S.C. section 70111) requires the Secretary to establish 
enhanced crewmember identification. In addition, section 103 of the 
MTSA encourages the Secretary to negotiate an agreement for an 
international system of identification for seafarers. In March 2002, 
the Governing Body of the International Labour Organization (ILO) 
agreed to have the International Labour Conference consider 
amendments to the Seafarers' Identity Documents Convention, 1958 
(No. 108) regarding seafarer identification at its 91st session in 
June 2003. In support of this effort, the International Maritime 
Organization issued a resolution titled, ``Enhancement of Security 
in Co-operation with the International Labour Organization'' which 
was adopted by the Conference on Maritime Security as Resolution 8 
on December 12, 2002. The Coast Guard has been working with the 
Immigration and Naturalization Service, Department of State, 
Maritime Administration, TSA, and others to support the work of ILO. 
The U.S. intends to await the outcome of the June 2003 ILO 
conference prior to developing further seafarer identification 
domestic policy.
    In addition to the above, the MTSA (46 U.S.C. section 70105) 
requires the Secretary to develop and implement a Transportation 
Security Card to control access to secure areas on a vessel or 
facility. The U.S. is moving this requirement forward through its 
work on a Transportation Worker Identification Credential System 
(TWIC). Pilot testing of the TWIC is scheduled for one east regional 
and one west regional port, each in communication with a TSA central 
control point. This pilot project allows the TSA to leverage key 
regional stakeholders and analyze life cycle and cost benefits, as 
well as the performance of various forms of identification 
technologies.
    Recognizing that the implementation of the TWIC and the ILO 
efforts on seafarers identification involve substantial negotiation 
and development, the Coast Guard therefore intends to continue its 
use of the criteria it set out in its clarification of regulations 
notice entitled ``Maritime Identification Credentials'' published in 
the Federal Register (67 FR 51082, August 7, 2002). This document 
can be viewed on the DOT Document Management System at http://dms.dot.gov
 under Docket USCG-2002-12917.
    [sbull] Do you believe the Coast Guard should amend its policy 
notice to capture additional forms of identification? If so, why?
    38. Advanced notice of arrival (ANOA) requirements. The Coast 
Guard has a notice of proposed rulemaking entitled ``Notification of 
Arrival in U.S. Ports'' published in the Federal Register (67 FR 
41659, June 19, 2002). This document can be viewed on the DOT 
Document Management System at http://dms.dot.gov under Docket 
 USCG-2002-11865-1. The comment period for that rulemaking 
has closed. The Coast Guard does not intend to add any additional 
notification requirements to that rulemaking.
    However, the SOLAS amendments and the ISPS Code contain several 
information-related requirements that are not currently part of the 
ANOA. The Coast Guard is considering expanding its advanced notice 
of arrival information to incorporate these new international 
requirements (SOLAS chapter XI-2, regulation 9). We are also 
considering requiring foreign flag vessels to provide advance 
notification on their compliance with part B of the ISPS Code. In 
addition, the Coast Guard is considering further expanding the 
notice requirements on the Mississippi River and its tributaries 
above mile marker 235 for certain barges carrying certain dangerous 
cargoes.
    [sbull] Having reviewed the SOLAS amendments and the ISPS Code, 
what additional information do you believe should be provided by 
vessels prior to entering our ports?
    [sbull] Do you believe further ANOA requirements are appropriate 
for the Mississippi River and its tributaries above mile marker 235?
    39. Foreign Port Assessments. Section 102 of the MTSA (46 U.S.C. 
section 70108) requires the Secretary to assess the effectiveness of 
antiterrorism measures maintained at a foreign port that serves 
vessels departing on a voyage to the U.S. or any other port that the 
Secretary believes poses a security risk to international maritime 
commerce. In general, the Coast Guard intends to accept a foreign 
government's approval of the respective port facility security 
plans, thereby attesting to their compliance with SOLAS and the ISPS 
Code, to provide the initial assessment of that foreign port's 
antiterrorism security. However, the Coast Guard in making 
assessments under the MTSA will also consider any other relevant 
information and possibly conduct audits. No regulations are required 
to implement this provision of the MTSA because these assessments 
are an internal deliberative matter and further related to foreign 
relations. However, the Coast Guard would appreciate public comment 
on the following:
    [sbull] Should the Coast Guard accept approval of foreign port 
facility security plans as a preliminary indication that the foreign 
port is maintaining effective antiterrorism measures?
    [sbull] What factors do you believe the Coast Guard should 
consider in assessing the effectiveness of antiterrorism measures at 
foreign ports?
    40. Automatic Identification System (AIS) requirements. 
Regulation V/19 of SOLAS sets forth the international requirements 
for the carriage of automatic identification systems (AIS), 
including an implementation schedule that was recently accelerated 
by the newly adopted amendments to SOLAS. Domestically, section 102 
of the MTSA (46 U.S.C. section 70114) gives the Secretary additional 
broad discretion to require AIS on


[[Page 79751]]


any vessel operating on the navigable waters of the United States if 
necessary for the safety of navigation. In this regard, the Coast 
Guard considers that requiring AIS for security purposes is an 
essential element in ensuring the safety of navigation. At a 
minimum, the MTSA specifically requires the following vessels to 
have AIS:
    (a) A self-propelled commercial vessel of at least 65 feet 
overall in length;
    (b) A vessel carrying more than a number of passengers for hire 
determined by the Secretary;
    (c) A towing vessel of more than 26 feet overall in length and 
600 horsepower;
    (d) Any other vessel for which the Secretary decides that an 
automatic identification system is necessary for the safe navigation 
of the vessel.
    The Secretary may exempt or waive any such vessel from this 
requirement if AIS is not necessary for the safety of navigation. 
The implementation dates for AIS in the MTSA align with the SOLAS 
requirements.
    As reflected in the Department of Transportation's Fall 2002 
Unified Agenda (67 FR 74853, December 9, 2002), a separate AIS 
notice of proposed rulemaking should be published in the near 
future. Therefore, it is not the Coast Guard's intent to interfere 
with that rulemaking. However, because recent events indicate that 
smaller vessels may be used as weapons against maritime 
transportation, the Coast Guard is requesting limited public comment 
related to the MTSA requirements as follows:
    [sbull] Should any of the vessels listed in the MTSA be exempted 
from carrying AIS because no security benefit would be derived from 
such a requirement?
    [sbull] Beyond the SOLAS requirements and the vessels 
specifically listed in the MTSA, what other vessels should be 
required to carry AIS for security purposes?
    [sbull] Are there any particular navigable waters of the U.S. 
where the AIS carriage requirement should be waived because no 
security benefit would be derived from the requirement?


Preliminary Cost Analysis


    The Coast Guard is seeking public comment on the following 
assumptions used in the preliminary cost analysis:
    [sbull] The loaded cost of a full-time employee designated to be 
the Company Security Officer or a Facility Security Officer would be 
$150,000 per year.
    [sbull] Some vessel and facility owners would designate the 
Company Security Officer and Facility Security Officer duties to an 
existing employee, and these collateral duties would take about 25 
percent of the employee's time.
    [sbull] Security functions aboard vessels would not require 
additional manning.
    [sbull] Security functions for facilities would require 
additional security guards with a loaded rate of $40,000 per year.
    [sbull] The types of equipment vessels or facilities would 
install are an accurate representation of the equipment needs owners 
and operators can expect to face.
    In addition, we are seeking public comment on the costs vessel 
and facility owners or operators would incur in the event MARSEC 
levels 2 or 3 are implemented.
    Finally, we are seeking public comment on how these requirements 
will economically impact small businesses, Indian tribal 
governments, as well as comment on anticipated energy impacts.


Appendix B--SOLAS Amendments and ISPS Code


    Note: The text in this appendix is excerpted from IMO documents 
SOLAS/CONF.5/DC/1, SOLAS/CONF.5/DC/2, and SOLAS/CONF.5/DC/2/Add.1, 
and has been edited to reflect the final decisions and other 
editorial corrections reflected in SOLAS/CONF.5/33.


Amendments to the International Convention for the Safety of Life at 
Sea, 1974 as Amended


Chapter V--Safety of Navigation


Regulation 19--Carriage Requirements for Shipborne Navigational Systems 
and Equipment


    1 The existing subparagraphs .4, .5 and .6 of paragraph 2.4.2 
are replaced by the following:
    ``.4 In the case of ships, other than passenger ships and 
tankers, of 300 gross tonnage and upwards but less than 50,000 gross 
tonnage, not later than the first safety equipment survey \1\ after 
1 July 2004 or by 31 December 2004, whichever occurs earlier; and''
---------------------------------------------------------------------------


    \1\ The first safety equipment survey means the first annual 
survey, the first periodical survey or the first renewal survey for 
safety equipment, whichever is due first after July 1, 2004 and, in 
addition, in the case of ships under construction, the initial 
survey.
---------------------------------------------------------------------------


    2 The following new sentence is added at the end of the existing 
subparagraph .7 of paragraph 2.4:
    ``Ships fitted with AIS shall maintain AIS in operation at all 
times except where international agreements, rules or standards 
provide for the protection of navigational information.''


Chapter XI--Special Measures to Enhance Maritime Safety


    3 The existing chapter XI is renumbered as chapter XI-1.


Regulation 3--Ship identification number 4 The following text is 
inserted after the title of the regulation:


    ``(Paragraphs 4 and 5 apply to all ships to which this 
regulation applies. For ships constructed before 1 July 2004, the 
requirements of paragraphs 4 and 5 shall be complied with not later 
than the first scheduled dry-docking of the ship after 1 July 2004 
)''
    5 The existing paragraph 4 is deleted and the following new text 
is inserted:
    ``4 The ship's identification number shall be permanently 
marked:
    .1 In a visible place either on the stern of the ship or on 
either side of the hull, amidships port and starboard, above the 
deepest assigned load line or either side of the superstructure, 
port and starboard or on the front of the superstructure or, in the 
case of passenger ships, on a horizontal surface visible from the 
air; and
    .2 In an easily accessible place either on one of the end 
transverse bulkheads of the machinery spaces, as defined in 
regulation II-2/3.30, or on one of the hatchways or, in the case of 
tankers, in the pump-room or, in the case of ships with ro-ro 
spaces, as defined in regulation II-2/3.41, on one of the end 
transverse bulkheads of the ro-ro spaces.
    5.1 The permanent marking shall be plainly visible, clear of any 
other markings on the hull and shall be painted in a contrasting 
colour.
    5.2 The permanent marking referred to in paragraph 4.1 shall be 
not less than 200 mm in height. The permanent marking referred to in 
paragraph 4.2 shall not be less than 100 mm in height. The width of 
the marks shall be proportionate to the height.
    5.3 The permanent marking may be made by raised lettering or by 
cutting it in or by centre punching it or by any other equivalent 
method of marking the ship identification number which ensures that 
the marking is not easily expunged.
    5.4 On ships constructed of material other than steel or metal, 
the Administration shall approve the method of marking the ship 
identification number.''
    6 The following new regulation 5 is added after the existing 
regulation 4:


Regulation 5--Continuous Synopsis Record


    1 Every ship to which chapter I applies shall be issued with a 
Continuous Synopsis Record.
    2.1 The Continuous Synopsis Record is intended to provide an on-
board record of the history of the ship with respect to the 
information recorded therein.
    2.2 For ships constructed before July 1, 2004, the Continuous 
Synopsis Record shall, at least, provide the history of the ship as 
from July 1, 2004.
    3 The Continuous Synopsis Record shall be issued by the 
Administration to each ship that is entitled to fly its flag and it 
shall contain at least, the following information:
    .1 The name of the State whose flag the ship is entitled to fly;
    .2 The date on which the ship was registered with that State;
    .3 The ship's identification number in accordance with 
regulation 3;
    .4 The name of the ship;
    .5 The port at which the ship is registered;
    .6 The name of the registered owner(s) and their registered 
address(es);
    .7 The name of the registered bareboat charterer(s) and their 
registered address(es), if applicable;
    .8 The name of the Company, as defined in regulation IX/1, its 
registered address and the address(es) from where it carries out the 
safety management activities;
    .9 The name of all classification society(ies) with which the 
ship is classed;
    .10 The name of the Administration or of the Contracting 
Government or of the recognized organization which has issued the 
Document of Compliance (or the Interim Document of Compliance), 
specified in the ISM Code as defined in regulation IX/1, to the 
Company operating the ship and the name of the body which has 
carried out the audit on the basis of which the document


[[Page 79752]]


was issued, if other than that issuing the document;
    .11 The name of the Administration or of the Contracting 
Government or of the recognized organization that has issued the 
Safety Management Certificate (or the Interim Safety Management 
Certificate), specified in the ISM Code as defined in regulation IX/
1, to the ship and the name of the body which has carried out the 
audit on the basis of which the certificate was issued, if other 
than that issuing the certificate;
    .12 The name of the Administration or of the Contracting 
Government or of the recognized security organization that has 
issued the International Ship Security Certificate (or an Interim 
International Ship Security Certificate), specified in part A of the 
ISPS Code as defined in regulation XI-2/1, to the ship and the name 
of the body which has carried out the verification on the basis of 
which the certificate was issued, if other than that issuing the 
certificate; and
    .13 The date on which the ship ceased to be registered with that 
State.
    4.1 Any changes relating to the entries referred to in 
paragraphs 3.4 to 3.12 shall be recorded in the Continuous Synopsis 
Record so as to provide updated and current information together 
with the history of the changes.
    4.2 In case of any changes relating to the entries referred to 
in paragraph 4.1, the Administration shall issue, as soon as is 
practically possible but not later than three months from the date 
of the change, to the ships entitled to fly its flag either a 
revised and updated version of the Continuous Synopsis Record or 
appropriate amendments thereto.
    4.3 In case of any changes relating to the entries referred to 
in paragraph 4.1, the Administration, pending the issue of a revised 
and updated version of the Continuous Synopsis Record, shall 
authorise and require either the Company as defined in regulation 
IX/1 or the master of the ship to amend the Continuous Synopsis 
Record to reflect the changes. In such cases, after the Continuous 
Synopsis Record has been amended the Company shall, without delay, 
inform the Administration accordingly.
    5.1 The Continuous Synopsis Record shall be in English, French 
or Spanish language. Additionally, a translation of the Continuous 
Synopsis Record into the official language or languages of the 
Administration may be provided.
    5.2 The Continuous Synopsis Record shall be in the format 
developed by the Organization and shall be maintained in accordance 
with guidelines developed by the Organization. Any previous entries 
in the Continuous Synopsis Record shall not be modified, deleted or, 
in any way, erased or defaced.
    6 Whenever a ship is transferred to the flag of another State or 
the ship is sold to another owner (or is taken over by another 
bareboat charterer) or another Company assumes the responsibility 
for the operation of the ship, the Continuous Synopsis Record shall 
be left on board.
    7 When a ship is to be transferred to the flag of another State, 
the Company shall notify the Administration of the name of the State 
under whose flag the ship is to be transferred so as to enable the 
Administration to forward to that State a copy of the Continuous 
Synopsis Record covering the period during which the ship was under 
their jurisdiction.
    8 When a ship is transferred to the flag of another State the 
Government of which is a Contracting Government, the Contracting 
Government of the State whose flag the ship was flying hitherto 
shall transmit to the Administration as soon as possible after the 
transfer takes place a copy of the relevant Continuous Synopsis 
Record covering the period during which the ship was under their 
jurisdiction together with any Continuous Synopsis Records previous 
issued to the ship by other States.
    9 When a ship is transferred to the flag of another State, the 
Administration shall append the previous Continuous Synopsis Records 
to the Continuous Synopsis Record the Administration will issue to 
the ship so to provide the continuous history record intended by 
this regulation.
    10 The Continuous Synopsis Record shall be kept on board the 
ship and shall be available for inspection at all times.''
    7 The following new chapter XI-2 is inserted after the 
renumbered chapter XI-1:


Chapter XI-2--Special Measures to Enhance Maritime Security


Regulation 1--Definitions


    1 For the purpose of this chapter, unless expressly provided 
otherwise:
    .1 Bulk carrier means a bulk carrier as defined in regulation 
IX/1.6.
    .2 Chemical tanker means a chemical tanker as defined in 
regulation VII/8.2.
    .3 Gas carrier means a gas carrier as defined in regulation VII/
11.2.
    .4 High-speed craft means a craft as defined in regulation X/
1.2.
    .5 Mobile offshore drilling unit means a mechanically propelled 
mobile offshore drilling unit, as defined in regulation IX/1, not on 
location.
    .6 Oil tanker means an oil tanker as defined in regulation II-1/
2.12.
    .7 Company means a Company as defined in regulation IX/1.
    .8 Ship/port interface means the interactions that occur when a 
ship is directly and immediately affected by actions involving the 
movement of persons, goods or the provisions of port services to or 
from the ship.
    .9 Port facility is a location, as determined by the Contracting 
Government or by the Designated Authority, where the ship/port 
interface takes place. This includes areas such as anchorages, 
waiting berths and approaches from seaward, as appropriate.
    .10 Ship to ship activity means any activity not related to a 
port facility that involves the transfer of goods or persons from 
one ship to another.
    .11 Designated Authority means the organization(s) or the 
administration(s) identified, within the Contracting Government, as 
responsible for ensuring the implementation of the provisions of 
this chapter pertaining to port facility security and ship/port 
interface, from the point of view of the port facility.
    .12 International Ship and Port Facility Security (ISPS) Code 
means the International Code for the Security of Ships and of Port 
Facilities consisting of part A (the provisions of which shall be 
treated as mandatory) and part B (the provisions of which shall be 
treated as recommendatory), as adopted, on December 12, 2002, by 
resolution 2 of the Conference of Contracting Governments to the 
International Convention for the Safety of Life at Sea, 1974 as may 
be amended by the Organization, provided that:
    .1 Amendments to part A of the Code are adopted, brought into 
force and take effect in accordance with article VIII of the present 
Convention concerning the amendment procedures applicable to the 
Annex other than chapter I; and
    .2 Amendments to part B of the Code are adopted by the Maritime 
Safety Committee in accordance with its Rules of Procedure.
    .13 Security incident means any suspicious act or circumstance 
threatening the security of a ship, including a mobile offshore 
drilling unit and a high speed craft, or of a port facility or of 
any ship/port interface or any ship to ship activity.
    .14 Security level means the qualification of the degree of risk 
that a security incident will be attempted or will occur.
    .15 Declaration of security means an agreement reached between a 
ship and either a port facility or another ship with which it 
interfaces specifying the security measures each will implement.
    .16 Recognized security organization means an organization with 
appropriate expertise in security matters and with appropriate 
knowledge of ship and port operations authorized to carry out an 
assessment, or a verification, or an approval or a certification 
activity, required by this chapter or by part A of the ISPS Code.
    2 The term ``ship'', when used in regulations 3 to 13, includes 
mobile offshore drilling units and high-speed craft.
    3 The term ``all ships'', when used in this chapter, means any 
ship to which this chapter applies.
    4 The term ``Contracting Government'', when used in regulations 
3, 4, 7, and 10 to 13, includes a reference to the ``Designated 
Authority''.


Regulation 2--Application


    1 This chapter applies to:
    .1 The following types of ships engaged on international 
voyages:
    .1.1 Passenger ships, including high-speed passenger craft;
    .1.2 Cargo ships, including high-speed craft, of 500 gross 
tonnage and upwards; and
    .1.3 Mobile offshore drilling units; and
    .2 Port facilities serving such ships engaged on international 
voyages.
    .2 Notwithstanding the provisions of paragraph 1.2, Contracting 
Governments shall decide the extent of application of this chapter 
and of the relevant sections of part A of the ISPS Code to those 
port facilities within their territory which, although used 
primarily by ships not engaged on international voyages, are 
required, occasionally, to serve ships arriving or departing on an 
international voyage.
    2.1 Contracting Governments shall base their decisions, under 
paragraph 2, on a port


[[Page 79753]]


facility security assessment carried out in accordance with the 
provisions of part A of the ISPS Code.
    2.2 Any decision which a Contracting Government makes, under 
paragraph 2, shall not compromise the level of security intended to 
be achieved by this chapter or by part A of the ISPS Code.
    3 This chapter does not apply to warships, naval auxiliaries or 
other ships owned or operated by a Contracting Government and used 
only on Government non-commercial service.
    4 Nothing in this chapter shall prejudice the rights or 
obligations of States under international law.


Regulation 3--Obligations of Contracting Governments With Respect to 
Security


    1 Administrations shall set security levels and ensure the 
provision of security level information to ships entitled to fly 
their flag. When changes in security level occur, security level 
information shall be updated as the circumstance dictates.
    2 Contracting Governments shall set security levels and ensure 
the provision of security level information to port facilities 
within their territory, and to ships prior to entering a port, or 
whilst in a port, within their territory. When changes in security 
level occur, security level information shall be updated as the 
circumstance dictates.


Regulation 4--Requirements for Companies and Ships


    1 Companies shall comply with the relevant requirements of this 
chapter and of part A of the ISPS Code, taking into account the 
guidance given in part B of the ISPS Code.
    2 Ships shall comply with the relevant requirements of this 
chapter and of part A of the ISPS Code, taking into account the 
guidance given in part B of the ISPS Code, and such compliance shall 
be verified and certified as provided for in part A of the ISPS 
Code.
    3 Prior to entering a port, or whilst in a port, within the 
territory of a Contracting Government, a ship shall comply with the 
requirements for the security level set by that Contracting 
Government, if such security level is higher than the security level 
set by the Administration for that ship.
    4 Ships shall respond without undue delay to any change to a 
higher security level.
    5 Where a ship is not in compliance with the requirements of 
this chapter or of part A of the ISPS Code, or cannot comply with 
the requirements of the security level set by the Administration or 
by another Contracting Government and applicable to that ship, then 
the ship shall notify the appropriate competent authority prior to 
conducting any ship/port interface or prior to entry into port, 
whichever occurs earlier.


Regulation 5--Specific Responsibility of Companies


    The Company shall ensure that the master has available on board, 
at all times, information through which officers duly authorised by 
a Contracting Government can establish:
    .1 Who is responsible for appointing the members of the crew or 
other persons currently employed or engaged on board the ship in any 
capacity on the business of that ship;
    .2 Who is responsible for deciding the employment of the ship; 
and
    .3 In cases where the ship is employed under the terms of 
charter party(ies), who are the parties to such charter party(ies).


Regulation 6--Ship Security Alert System


    1 All ships shall be provided with a ship security alert system, 
as follows:
    .1 Ships constructed on or after July 1, 2004;
    .2 Passenger ships, including high-speed passenger craft, 
constructed before July 1, 2004, not later than the first survey of 
the radio installation after July 1, 2004;
    .3 Oil tankers, chemical tankers, gas carriers, bulk carriers 
and cargo high speed craft, of 500 gross tonnage and upwards 
constructed before July 1, 2004, not later than the first survey of 
the radio installation after July 1, 2004; and
    .4 Other cargo ships of 500 gross tonnage and upward and mobile 
offshore drilling units constructed before July 1, 2004, not later 
than the first survey of the radio installation after July 1, 2006.
    2 The ship security alert system, when activated, shall:
    .1 Initiate and transmit a ship-to-shore security alert to a 
competent authority designated by the Administration, which in these 
circumstances may include the Company, identifying the ship, its 
location and indicating that the security of the ship is under 
threat or it has been compromised;
    .2 Not send the ship security alert to any other ships;
    .3 Not raise any alarm on-board the ship; and
    .4 Continue the ship security alert until deactivated and/or 
reset.
    3 The ship security alert system shall:
    .1 Be capable of being activated from the navigation bridge and 
in at least one other location; and
    .2 Conform to performance standards not inferior to those 
adopted by the Organization.
    4 The ship security alert system activation points shall be 
designed so as to prevent the inadvertent initiation of the ship 
security alert.
    5 The requirement for a ship security alert system may be 
complied with by using the radio installation fitted for compliance 
with the requirements of chapter IV, provided all requirements of 
this regulation are complied with.
    6 When an Administration receives notification of a ship 
security alert, that Administration shall immediately notify the 
State(s) in the vicinity of which the ship is presently operating.
    7 When a Contracting Government receives notification of a ship 
security alert from a ship which is not entitled to fly its flag, 
that Contracting Government shall immediately notify the relevant 
Administration and, if appropriate, the State(s) in the vicinity of 
which the ship is presently operating.


Regulation 7--Threats to Ships


    1 Contracting Governments shall set security levels and ensure 
the provision of security level information to ships operating in 
their territorial sea or having communicated an intention to enter 
their territorial sea.
    2 Contracting Governments shall provide a point of contact 
through which such ships can request advice or assistance and to 
which such ships can report any security concerns about other ships, 
movements or communications.
    3 Where a risk of attack has been identified, the Contracting 
Government concerned shall advise the ships concerned and their 
Administrations of:
    .1 The current security level;
    .2 Any security measures that should be put in place by the 
ships concerned to protect themselves from attack, in accordance 
with the provisions of part A of the ISPS Code; and
    .3 Security measures that the coastal State has decided to put 
in place, as appropriate.


Regulation 8--Master's Discretion for Ship Safety and Security


    1 The master shall not be constrained by the Company, the 
charterer or any other person from taking or executing any decision 
which, in the professional judgement of the master, is necessary to 
maintain the safety and security of the ship. This includes denial 
of access to persons (except those identified as duly authorized by 
a Contracting Government) or their effects and refusal to load 
cargo, including containers or other closed cargo transport units.
    2 If, in the professional judgement of the master, a conflict 
between any safety and security requirements applicable to the ship 
arises during its operations, the master shall give effect to those 
requirements necessary to maintain the safety of the ship. In such 
cases, the master may implement temporary security measures and 
shall forthwith inform the Administration and, if appropriate, the 
Contracting Government in whose port the ship is operating or 
intends to enter. Any such temporary security measures under this 
regulation shall, to the highest possible degree, be commensurate 
with the prevailing security level. When such cases are identified, 
the Administration shall ensure that such conflicts are resolved and 
that the possibility of recurrence is minimised.


Regulation 9--Control and Compliance Measures


    1 Control of Ships in Port.
    1.1 For the purpose of this chapter, every ship to which this 
chapter applies is subject to control when in a port of another 
Contracting Government by officers duly authorised by that 
Government, who may be the same as those carrying out the functions 
of regulation I/19. Such control shall be limited to verifying that 
there is onboard a valid International Ship Security Certificate or 
a valid Interim International Ships Security Certificate issued 
under the provisions of part A of the ISPS Code (Certificate), which 
if valid shall be accepted, unless there are clear grounds for 
believing that the ship is not in compliance with the requirements 
of this chapter or part A of the ISPS Code.
    1.2 When there are such clear grounds, or where no valid 
Certificate is produced when


[[Page 79754]]


required, the officers duly authorized by the Contracting Government 
shall impose any one or more control measures in relation to that 
ship as provided in paragraph 1.3. Any such measures imposed must be 
proportionate, taking into account the guidance given in part B of 
the ISPS Code.
    1.3 Such control measures are as follows: inspection of the 
ship, delaying the ship, detention of the ship, restriction of 
operations including movement within the port, or expulsion of the 
ship from port. Such control measures may additionally or 
alternatively include other lesser administrative or corrective 
measures.
    2 Ships Intending To Enter a Port of Another Contracting 
Government.
    2.1 For the purpose of this chapter, a Contracting Government 
may require that ships intending to enter its ports provide the 
following information to officers duly authorized by that Government 
to ensure compliance with this chapter prior to entry into port with 
the aim of avoiding the need to impose control measures or steps:
    .1 That the ship possesses a valid Certificate and the name of 
its issuing authority;
    .2 The security level at which the ship is currently operating;
    .3 The security level at which the ship operated in any previous 
port where it has conducted a ship/port interface within the 
timeframe specified in paragraph 2.3;
    .4 Any special or additional security measures that were taken 
by the ship in any previous port where it has conducted a ship/port 
interface within the timeframe specified in paragraph 2.3;
    .5 That the appropriate ship security procedures were maintained 
during any ship to ship activity within the timeframe specified in 
paragraph 2.3; or
    .6 Other practical security related information (but not details 
of the ship security plan), taking into account the guidance given 
in part B of the ISPS Code.
    If requested by the Contracting Government, the ship or the 
Company shall provide confirmation, acceptable to that Contracting 
Government, of the information required above.
    2.2 Every ship to which this chapter applies intending to enter 
the port of another Contracting Government shall provide the 
information described in paragraph 2.1 on the request of the 
officers duly authorized by that Government. The master may decline 
to provide such information on the understanding that failure to do 
so may result in denial of entry into port.
    2.3 The ship shall keep records of the information referred to 
in paragraph 2.1 for the last 10 calls at port facilities.
    2.4 If, after receipt of the information described in paragraph 
2.1, officers duly authorised by the Contracting Government of the 
port in which the ship intends to enter have clear grounds for 
believing that the ship is in non-compliance with the requirements 
of this chapter or part A of the ISPS Code, such officers shall 
attempt to establish communication with and between the ship and the 
Administration in order to rectify the non-compliance. If such 
communication does not result in rectification, or if such officers 
have clear grounds otherwise for believing that the ship is in non-
compliance with the requirements of this chapter or part A of the 
ISPS Code, such officers may take steps in relation to that ship as 
provided in paragraph 2.5. Any such steps taken must be 
proportionate, taking into account the guidance given in part B of 
the ISPS Code.
    2.5 Such steps are as follows:
    .1 A requirement for the rectification of the non-compliance;
    .2 A requirement that the ship proceed to a location specified 
in the territorial sea or internal waters of that Contracting 
Government;
    .3 Inspection of the ship, if the ship is in the territorial sea 
of the Contracting Government the port of which the ship intends to 
enter; or
    .4 Denial of entry into port.
    Prior to initiating any such steps, the ship shall be informed 
by the Contracting Government of its intentions. Upon this 
information the master may withdraw the intention to enter that 
port. In such cases, this regulation shall not apply.
    3 Additional provisions.
    3.1 In the event:
    .1 Of the imposition of a control measure, other than a lesser 
administrative or corrective measure, referred to in paragraph 1.3; 
or
    .2 Any of the steps referred to in paragraph 2.5 are taken,


An officer duly authorized by the Contracting Government shall 
forthwith inform in writing the Administration specifying which 
control measures have been imposed or steps taken and the reasons 
thereof. The Contracting Government imposing the control measures or 
steps shall also notify the recognized security organization which 
issued the Certificate relating to the ship concerned and the 
Organization when any such control measures have been imposed or 
steps taken.
    3.2 When entry into port is denied or the ship is expelled from 
port, the authorities of the port State should communicate the 
appropriate facts to the authorities of the State of the next 
appropriate ports of call, when known, and any other appropriate 
coastal States, taking into account guidelines to be developed by 
the Organization. Confidentiality and security of such notification 
shall be ensured.
    3.3 Denial of entry into port, pursuant to paragraphs 2.4 and 
2.5, or expulsion from port, pursuant to paragraphs 1.1 to 1.3, 
shall only be imposed where the officers duly authorized by the 
Contracting Government have clear grounds to believe that the ship 
poses an immediate threat to the security or safety of persons, or 
of ships or other property and there are no other appropriate means 
for removing that threat.
    3.4 The control measures referred to in paragraph 1.3 and the 
steps referred to in paragraph 2.5 shall only be imposed, pursuant 
to this regulation, until the non-compliance giving rise to the 
control measures or steps has been corrected to the satisfaction of 
the Contracting Government, taking into account actions proposed by 
the ship or the Administration, if any.
    3.5 When Contracting Governments exercise control under 
paragraph 1 or take steps under paragraph 2:
    .1 All possible efforts shall be made to avoid a ship being 
unduly detained or delayed. If a ship is thereby unduly detained, or 
delayed, it shall be entitled to compensation for any loss or damage 
suffered; and
    .2 Necessary access to the ship shall not be prevented for 
emergency or humanitarian reasons and for security purposes.


Regulation 10--Requirements for Port Facilities


    1 Port facilities shall comply with the relevant requirements of 
this chapter and part A of the ISPS Code, taking into account the 
guidance given in part B of the ISPS Code.
    2 Contracting Governments with a port facility or port 
facilities within their territory, to which this regulation applies, 
shall ensure that:
    .1 Port facility security assessments are carried out, reviewed 
and approved in accordance with the provisions of part A of the ISPS 
Code; and
    .2 Port facility security plans are developed, reviewed, 
approved and implemented in accordance with the provisions of part A 
of the ISPS Code.
    3 Contracting Governments shall designate and communicate the 
measures required to be addressed in a port facility security plan 
for the various security levels, including when the submission of a 
Declaration of Security will be required.


Regulation 11--Alternative Security Agreements


    1 Contracting Governments may, when implementing this chapter 
and part A of the ISPS Code, conclude in writing bilateral or 
multilateral agreements with other Contracting Governments on 
alternative security arrangements covering short international 
voyages on fixed routes between port facilities located within their 
territories.
    2 Any such agreement shall not compromise the level of security 
of other ships or of port facilities not covered by the agreement.
    3 No ship covered by such an agreement shall conduct any ship-
to-ship activities with any ship not covered by the agreement.
    4 Such agreements shall be reviewed periodically, taking into 
account the experience gained as well as any changes in the 
particular circumstances or the assessed threats to the security of 
the ships, the port facilities or the routes covered by the 
agreement.


Regulation 12--Equivalent Security Arrangements


    1 An Administration may allow a particular ship or a group of 
ships entitled to fly its flag to implement other security measures 
equivalent to those prescribed in this chapter or in part A of the 
ISPS Code, provided such security measures are at least as effective 
as those prescribed in this chapter or part A of the ISPS Code. The 
Administration, which allows such security measures, shall 
communicate to the Organization particulars thereof.
    2 When implementing this chapter and part A of the ISPS Code, a 
Contracting


[[Page 79755]]


Government may allow a particular port facility or a group of port 
facilities located within its territory, other than those covered by 
an agreement concluded under regulation 11, to implement security 
measures equivalent to those prescribed in this chapter or in part A 
of the ISPS Code, provided such security measures are at least as 
effective as those prescribed in this chapter or part A of the ISPS 
Code. The Contracting Government, which allows such security 
measures, shall communicate to the Organization particulars thereof.


Regulation 13--Communication of Information


    1 Contracting Governments shall, not later than July 1, 2004, 
communicate to the Organization and shall make available for the 
information of Companies and ships:
    .1 The names and contact details of their national authority or 
authorities responsible for ship and port facility security;
    .2 The locations within their territory covered by the approved 
port facility security plans.
    .3 The names and contact details of those who have been 
designated to be available at all times to receive and act upon the 
ship-to-shore security alerts, referred to in regulation 6.2.1;
    .4 The names and contact details of those who have been 
designated to be available at all times to receive and act upon any 
communications from Contracting Governments exercising control and 
compliance measures, referred to in regulation 9.3.1; and
    .5 The names and contact details of those who have been 
designated to be available at all times to provide advice or 
assistance to ships and to whom ships can report any security 
concerns, referred to in regulation 7.2;


And thereafter update such information as and when changes relating 
thereto occur. The Organisation shall circulate such particulars to 
other Contracting Governments for the information of their officers.
    2 Contracting Governments shall, not later than July 1, 2004, 
communicate to the Organization the names and contact details of any 
recognized security organizations authorized to act on their behalf 
together with details of the specific responsibility and conditions 
of authority delegated to such organizations. Such information shall 
be updated as and when changes relating thereto occur. The 
Organisation shall circulate such particulars to other Contracting 
Governments for the information of their officers.
    3 Contracting Governments shall, not later than July 1, 2004 
communicate to the Organization a list showing the approved port 
facility security plans for the port facilities located within their 
territory together with the location or locations covered by each 
approved port facility security plan and the corresponding date of 
approval and thereafter shall further communicate when any of the 
following changes take place:
    .1 Changes in the location or locations covered by an approved 
port facility security plan are to be introduced or have been 
introduced. In such cases the information to be communicated shall 
indicate the changes in the location or locations covered by the 
plan and the date as of which such changes are to be introduced or 
were implemented;
    .2 An approved port facility security plan, previously included 
in the list submitted to the Organization, is to be withdrawn or has 
been withdrawn. In such cases, the information to be communicated 
shall indicate the date on which the withdrawal will take effect or 
was implemented. In these cases, the communication shall be made to 
the Organization as soon as is practically possible; and
    .3 Additions are to be made to the list of approved port 
facility security plans. In such cases, the information to be 
communicated shall indicate the location or locations covered by the 
plan and the date of approval.
    4 Contracting Governments shall, at five year intervals after 
July 1, 2004, communicate to the Organization a revised and updated 
list showing all the approved port facility security plans for the 
port facilities located within their territory together with the 
location or locations covered by each approved port facility 
security plan and the corresponding date of approval (and the date 
of approval of any amendments thereto) which will supersede and 
replace all information communicated to the Organization, pursuant 
to paragraph 3, during the preceding five years.
    5 Contracting Governments shall communicate to the Organization 
information that an agreement under regulation 11 has been 
concluded. The information communicated shall include:
    .1 The names of the Contracting Governments which have concluded 
the agreement;
    .2 The port facilities and the fixed routes covered by the 
agreement;
    .3 The periodicity of review of the agreement;
    .4 The date of entry into force of the agreement; and
    .5 Information on any consultations which have taken place with 
other Contracting Governments;


And thereafter shall communicate, as soon as practically possible, 
to the Organization information when the agreement has been amended 
or has ended.
    6 Any Contracting Government which allows, under the provisions 
of regulation 12, any equivalent security arrangements with respect 
to a ship entitled to fly its flag or with respect to a port 
facility located within its territory, shall communicate to the 
Organization particulars thereof.
    7 The Organization shall make available the information 
communicated under paragraph 3 to other Contracting Governments upon 
request.


International Code for the Security of Ships and of Port Facilities


Preamble


    1 The Diplomatic Conference on Maritime Security held in London 
in December 2002 adopted new provisions in the International 
Convention for the Safety of Life at Sea, 1974 and this Code to 
enhance maritime security. These new requirements form the 
international framework through which ships and port facilities can 
co-operate to detect and deter acts which threaten security in the 
maritime transport sector.
    2 Following the tragic events of September 11, 2001, the twenty-
second session of the Assembly of the International Maritime 
Organization (the Organization), in November 2001, unanimously 
agreed to the development of new measures relating to the security 
of ships and of port facilities for adoption by a Conference of 
Contracting Governments to the International Convention for the 
Safety of Life at Sea, 1974 (known as the Diplomatic Conference on 
Maritime Security) in December 2002. Preparation for the Diplomatic 
Conference was entrusted to the Organization's Maritime Safety 
Committee (MSC) on the basis of submissions made by Member States, 
intergovernmental organizations and non-governmental organizations 
in consultative status with the Organization.
    3 The MSC, at its first extraordinary session, held also in 
November 2001, in order to accelerate the development and the 
adoption of the appropriate security measures established an MSC 
Intersessional Working Group on Maritime Security. The first meeting 
of the MSC Intersessional Working Group on Maritime Security was 
held in February 2002 and the outcome of its discussions was 
reported to, and considered by, the seventy-fifth session of the MSC 
in March 2002, when an ad hoc Working Group was established to 
further develop the proposals made. The seventy-fifth session of the 
MSC considered the report of that Working Group and recommended that 
work should be taken forward through a further MSC Intersessional 
Working Group, which was held in September 2002. The seventy-sixth 
session of the MSC considered the outcome of the September 2002 
session of the MSC Intersessional Working Group and the further work 
undertaken by the MSC Working Group held in conjunction with the 
Committee's seventy-sixth session in December 2002, immediately 
prior to the Diplomatic Conference and agreed the final version of 
the proposed texts to be considered by the Diplomatic Conference.
    4 The Diplomatic Conference (December 9 to 13, 2002) also 
adopted amendments to the existing provisions of the International 
Convention for the Safety of Life at Sea, 1974 (SOLAS 74) 
accelerating the implementation of the requirement to fit Automatic 
Identification Systems and adopted new regulations in chapter XI-1 
of SOLAS 74 covering marking of the Ship's Identification Number and 
the carriage of a Continuous Synopsis Record. The Diplomatic 
Conference also adopted a number of Conference Resolutions including 
those covering implementation and revision of this Code, Technical 
Co-operation, and co-operative work with the International Labour 
Organization and World Customs Organization. It was recognised that 
review and amendment of certain of the new provisions regarding 
maritime security may be required on completion of the work of these 
two Organizations.
    5 The provision of chapter XI-2 of SOLAS 74 and this Code apply 
to ships and


[[Page 79756]]


to port facilities. The extension of SOLAS 74 to cover port 
facilities was agreed on the basis that SOLAS 74 offered the 
speediest means of ensuring the necessary security measures entered 
into force and given effect quickly. However, it was further agreed 
that the provisions relating to port facilities should relate solely 
to the ship/port interface. The wider issue of the security of port 
areas will be the subject of further joint work between the 
International Maritime Organization and the International Labour 
Organization. It was also agreed that the provisions should not 
extend to the actual response to attacks or to any necessary clear-
up activities after such an attack.
    6 In drafting the provision care has been taken to ensure 
compatibility with the provisions of the International Convention on 
Standards of Training, Certification and Watch-keeping and 
Certification for Seafarers, 1978, as amended, the International 
Safety Management (ISM) Code and the harmonised system of survey and 
certification.
    7 The provisions represent a significant change in the approach 
of the international maritime industries to the issue of security in 
the maritime transport sector. It is recognised that they may place 
a significant additional burden on certain Contracting Governments. 
The importance of Technical Co-operation to assist Contracting 
Governments implement the provisions is fully recognised.
    8 Implementation of the provisions will require continuing 
effective co-operation and understanding between all those involved 
with, or using, ships and port facilities including ship's 
personnel, port personnel, passengers, cargo interests, ship and 
port management and those in National and Local Authorities with 
security responsibilities. Existing practices and procedures will 
have to be reviewed and changed if they do not provide an adequate 
level of security. In the interests of enhanced maritime security 
additional responsibilities will have to be carried by the shipping 
and port industries and by National and Local Authorities.
    9 The guidance given in part B of this Code should be taken into 
account when implementing the security provisions set out in chapter 
XI-2 of SOLAS 74 and in part A of this Code. However, it is 
recognised that the extent to which the guidance applies may vary 
depending on the nature of the port facility and of the ship, its 
trade and/or cargo.
    10 Nothing in this Code shall be interpreted or applied in a 
manner inconsistent with the proper respect of fundamental rights 
and freedoms as set out in international instruments, particularly 
those relating to maritime workers and refugees including the 
International Labour Organisation Declaration of Fundamental 
Principles and Rights at Work as well as international standards 
concerning maritime and port workers.
    11 Recognizing that the Convention on the Facilitation of 
Maritime Traffic, 1965, as amended, provides that foreign crew 
members shall be allowed ashore by the public authorities while the 
ship on which they arrive is in port, provided that the formalities 
on arrival of the ship have been fulfilled and the public 
authorities have no reason to refuse permission to come ashore for 
reasons of public health, public safety or public order, Contracting 
Governments when approving ship and port facility security plans 
should pay due cognisance to the fact that ship's personnel live and 
work on the vessel and need shore leave and access to shore based 
seafarer welfare facilities, including medical care.


Part A--The Safety of Life at Sea, 1974 as Amended


Mandatory Requirements Regarding the Provisions of Chapter XI-2 of 
the International Convention for the Safety of Life At Sea, 1974, 
As Amended


1 General


    1.1 Introduction.
    This part of the International Code for the Security of Ships 
and Port Facilities contains mandatory provisions to which reference 
is made in chapter XI-2 of the International Convention for the 
Safety of Life at Sea, 1974 as amended.
    1.2 Objectives.
    The objectives of this Code are:
    .1 To establish an international framework involving co-
operation between Contracting Governments, Government agencies, 
local administrations and the shipping and port industries to detect 
security threats and take preventive measures against security 
incidents affecting ships or port facilities used in international 
trade;
    .2 To establish the respective roles and responsibilities of the 
Contracting Governments, Government agencies, local administrations 
and the shipping and port industries, at the national and 
international level for ensuring maritime security;
    .3 To ensure the early and efficient collection and exchange of 
security-related information;
    .4 To provide a methodology for security assessments so as to 
have in place plans and procedures to react to changing security 
levels; and
    .5 To ensure confidence that adequate and proportionate maritime 
security measures are in place.
    1.3 Functional requirements.
    In order to achieve its objectives, this Code embodies a number 
of functional requirements. These include, but are not limited to:
    .1 Gathering and assessing information with respect to security 
threats and exchanging such information with appropriate Contracting 
Governments;
    .2 Requiring the maintenance of communication protocols for 
ships and port facilities;
    .3 Preventing unauthorized access to ships, port facilities and 
their restricted areas;
    .4 Preventing the introduction of unauthorized weapons, 
incendiary devices or explosives to ships or port facilities;
    .5 Providing means for raising the alarm in reaction to security 
threats or security incidents;
    .6 Requiring ship and port facility security plans based upon 
security assessments; and
    .7 Requiring training, drills and exercises to ensure 
familiarity with security plans and procedures.


2 Definitions


    2.1 For the purpose of this part, unless expressly provided 
otherwise:
    .1 Convention means the International Convention for the Safety 
of Life at Sea, 1974 as amended.
    .2 Regulation means a regulation of the Convention.
    .3 Chapter means a chapter of the Convention.
    .4 Ship security plan means a plan developed to ensure the 
application of measures on board the ship designed to protect 
persons on board, cargo, cargo transport units, ship's stores or the 
ship from the risks of a security incident.
    .5 Port facility security plan means a plan developed to ensure 
the application of measures designed to protect the port facility 
and ships, persons, cargo, cargo transport units and ship's stores 
within the port facility from the risks of a security incident.
    .6 Ship security officer means the person on board the ship, 
accountable to the master, designated by the Company as responsible 
for the security of the ship, including implementation and 
maintenance of the ship security plan and for liaison with the 
company security officer and port facility security officers.
    .7 Company security officer means the person designated by the 
Company for ensuring that a ship security assessment is carried out; 
that a ship security plan is developed, submitted for approval, and 
thereafter implemented and maintained and for liaison with port 
facility security officers and the ship security officer.
    .8 Port facility security officer means the person designated as 
responsible for the development, implementation, revision and 
maintenance of the port facility security plan and for liaison with 
the ship security officers and company security officers.
    .9 Security level 1 means the level for which minimum 
appropriate protective security measures shall be maintained at all 
times.
    .10 Security level 2 means the level for which appropriate 
additional protective security measures shall be maintained for a 
period of time as a result of heightened risk of a security 
incident.
    .11 Security level 3 means the level for which further specific 
protective security measures shall be maintained for a limited 
period of time when a security incident is probable or imminent, 
although it may not be possible to identify the specific target.
    2.2 The term ``ship'', when used in this Code, includes mobile 
offshore drilling units and high-speed craft as defined in 
regulation XI-2/1.
    2.3 The term ``Contracting Government'' in connection with any 
reference to a port facility, when used in sections 14 to 18, 
includes a reference to the ``Designated Authority'.
    2.4 Terms not otherwise defined in this part shall have the same 
meaning as the meaning attributed to them in chapters I and XI-2.


[[Page 79757]]


3 Application


    3.1 This Code applies to:
    .1 The following types of ships engaged on international 
voyages:
    .1 Passenger ships, including high-speed passenger craft;
    .2 Cargo ships, including high-speed craft, of 500 gross tonnage 
and upwards; and
    .3 Mobile offshore drilling units; and
    .2 Port facilities serving such ships engaged on international 
voyages.
    3.2 Notwithstanding the provisions of section 3.1.2, Contracting 
Governments shall decide the extent of application of this part of 
the Code to those port facilities within their territory which, 
although used primarily by ships not engaged on international 
voyages, are required, occasionally, to serve ships arriving or 
departing on an international voyage.
    3.2.1 Contracting Governments shall base their decisions, under 
section 3.2, on a port facility security assessment carried out in 
accordance with this part of the Code.
    3.2.2 Any decision which a Contracting Government makes, under 
section 3.2, shall not compromise the level of security intended to 
be achieved by chapter XI-2 or by this part of the Code.
    3.3 This Code does not apply to warships, naval auxiliaries or 
other ships owned or operated by a Contracting Government and used 
only on Government non-commercial service.
    3.4 Sections 5 to 13 and 19 of this part apply to Companies and 
ships as specified in regulation XI-2/4.
    3.5 Sections 5 and 14 to 18 of this part apply to port 
facilities as specified in regulation XI-2/10.
    3.6 Nothing in this Code shall prejudice the rights or 
obligations of States under international law.


4 Responsibilities of Contracting Governments


    4.1 Subject to the provisions of regulation XI-2/3 and XI-2/7, 
Contracting Governments shall set security levels and provide 
guidance for protection from security incidents. Higher security 
levels indicate greater likelihood of occurrence of a security 
incident. Factors to be considered in setting the appropriate 
security level include:
    .1 The degree that the threat information is credible;
    .2 The degree that the threat information is corroborated;
    .3 The degree that the threat information is specific or 
imminent; and
    .4 The potential consequences of such a security incident.
    4.2 Contracting Governments, when they set security level 3, 
shall issue, as necessary, appropriate instructions and shall 
provide security related information to the ships and port 
facilities that may be affected.
    4.3 Contracting Governments may delegate to a recognized 
security organization certain of their security related duties under 
chapter XI-2 and this part of the Code with the exception of:
    .1 Setting of the applicable security level;
    .2 Approving a Port Facility Security Assessment and subsequent 
amendments to an approved assessment;
    .3 Determining the port facilities which will be required to 
designate a Port Facility Security Officer;
    .4 Approving a Port Facility Security Plan and subsequent 
amendments to an approved plan;
    .5 Exercising control and compliance measures pursuant to 
regulation XI-2/9; and
    .6 Establishing the requirements for a Declaration of Security.
    4.4 Contracting Governments shall, to the extent they consider 
appropriate, test the effectiveness of the Ship or the Port Facility 
Security Plans, or of amendments to such plans, they have approved, 
or, in the case of ships, of plans which have been approved on their 
behalf.


5 Declaration of Security


    5.1 Contracting Governments shall determine when a Declaration 
of Security is required by assessing the risk the ship/port 
interface or ship to ship activity poses to people, property or the 
environment.
    5.2 A ship can request completion of a Declaration of Security 
when:
    .1 The ship is operating at a higher security level than the 
port facility or another ship it is interfacing with;
    .2 There is an agreement on Declarations of Security between 
Contracting Governments covering certain international voyages or 
specific ships on those voyages;
    .3 There has been a security threat or a security incident 
involving the ship or involving the port facility, as applicable;
    .4 The ship is at a port which is not required to have and 
implement an approved port facility security plan; or
    .5 The ship is conducting ship to ship activities with another 
ship not required to have and implement an approved ship security 
plan.
    5.3 Requests for the completion of a Declaration of Security, 
under this section, shall be acknowledged by the applicable port 
facility or ship.
    5.4 The Declaration of Security shall be completed by:
    .1 The master or the ship security officer on behalf of the 
ship(s); and, if appropriate,
    .2 The port facility security officer or, if the Contracting 
Government determines otherwise, by any other body responsible for 
shore-side security, on behalf of the port facility.
    5.5 The Declaration of Security shall address the security 
requirements that could be shared between a port facility and a ship 
(or between ships) and shall state the responsibility for each.
    5.6 Contracting Governments shall specify, bearing in mind the 
provisions of regulation XI-2/9.2.3, the minimum period for which 
Declarations of Security shall be kept by the port facilities 
located within their territory.
    5.7 Administrations shall specify, bearing in mind the 
provisions of regulation XI-2/9.2.3, the minimum period for which 
Declarations of Security shall be kept by ships entitled to fly 
their flag.


6 Obligations of the Company


    6.1 The Company shall ensure that the ship security plan 
contains a clear statement emphasizing the master's authority. The 
Company shall establish in the ship security plan that the master 
has the overriding authority and responsibility to make decisions 
with respect to the security of the ship and to request the 
assistance of the Company or of any Contracting Government as may be 
necessary.
    6.2 The Company shall ensure that the company security officer, 
the master and the ship security officer are given the necessary 
support to fulfil their duties and responsibilities in accordance 
with chapter XI-2 and this part of the Code.


7 Ship Security


    7.1 A ship is required to act upon the security levels set by 
Contracting Governments as set out below.
    7.2 At security level 1, the following activities shall be 
carried out, through appropriate measures, on all ships, taking into 
account the guidance given in part B of this Code, in order to 
identify and take preventive measures against security incidents:
    .1 Ensuring the performance of all ship security duties;
    .2 Controlling access to the ship;
    .3 Controlling the embarkation of persons and their effects;
    .4 Monitoring restricted areas to ensure that only authorized 
persons have access;
    .5 Monitoring of deck areas and areas surrounding the ship;
    .6 Supervising the handling of cargo and ship's stores; and
    .7 Ensuring that security communication is readily available.
    7.3 At security level 2, the additional protective measures, 
specified in the ship security plan, shall be implemented for each 
activity detailed in section 7.2, taking into account the guidance 
given in part B of this Code.
    7.4 At security level 3, further specific protective measures, 
specified in the ship security plan, shall be implemented for each 
activity detailed in section 7.2, taking into account the guidance 
given in part B of this Code.
    7.5 Whenever security level 2 or 3 is set by the Administration, 
the ship shall acknowledge receipt of the instructions on change of 
the security level.
    7.6 Prior to entering a port, or whilst in a port within the 
territory of a Contracting Government that has set security level 2 
or 3, the ship shall acknowledge receipt of this instruction and 
shall confirm to the port facility security officer the initiation 
of the implementation of the appropriate measures and procedures as 
detailed in the ship security plan, and in the case of security 
level 3 in instructions issued by the Contracting Government which 
has set security level 3. The ship shall report any difficulties in 
implementation. In such cases, the port facility security officer 
and ship security officer shall liase and co-ordinate the 
appropriate actions.
    7.7 If a ship is required by the Administration to set, or is 
already at, a higher security level than that set for the port it 
intends to enter or in which it is already located, then the ship 
shall advise, without delay, the competent authority of the 
Contracting Government within whose


[[Page 79758]]


territory the port facility is located and the port facility 
security officer of the situation.
    7.7.1 In such cases, the ship security officer shall liase with 
the port facility security officer and co-ordinate appropriate 
actions, if necessary.
    7.8 An Administration requiring ships entitled to fly its flag 
to set security level 2 or 3 in a port of another Contracting 
Government shall inform that Contracting Government without delay.
    7.9 When Contracting Governments set security levels and ensure 
the provision of security level information to ships operating in 
their territorial sea, or having communicated an intention to enter 
their territorial sea, such ships shall be advised to maintain 
vigilance and report immediately to their Administration and any 
nearby coastal States any information that comes to their attention 
that might affect maritime security in the area.
    7.9.1 When advising such ships of the applicable security level, 
a Contracting Government shall, taking into account the guidance 
given in the part B of this Code, also advise those ships of any 
security measure that they should take and, if appropriate, of 
measures that have been taken by the Contracting Government to 
provide protection against the threat.


8 Ship Security Assessment


    8.1 The ship security assessment is an essential and integral 
part of the process of developing and updating the ship security 
plan.
    8.2 The company security officer shall ensure that the ship 
security assessment is carried out by persons with appropriate 
skills to evaluate the security of a ship, in accordance with this 
section, taking into account the guidance given in part B of this 
Code.
    8.3 Subject to the provisions of section 9.2.1, a recognised 
security organisation may carry out the ship security assessment of 
a specific ship.
    8.4 The ship security assessment shall include an on-scene 
security survey and, at least, the following elements:
    .1 Identification of existing security measures, procedures and 
operations;
    .2 Identification and evaluation of key ship board operations 
that it is important to protect;
    .3 Identification of possible threats to the key ship board 
operations and the likelihood of their occurrence, in order to 
establish and prioritise security measures; and
    .4 Identification of weaknesses, including human factors in the 
infrastructure, policies and procedures.
    8.5 The ship security assessment shall be documented, reviewed, 
accepted and retained by the Company.


9 Ship Security Plan


    9.1 Each ship shall carry on board a ship security plan approved 
by the Administration. The plan shall make provisions for the three 
security levels as defined in this part of the Code.
    9.1.1 Subject to the provisions of section 9.2.1, a recognised 
security organisation may prepare the ship security plan for a 
specific ship.
    9.2 The Administration may entrust the review and approval of 
ship security plans, or of amendments to a previously approved plan, 
to recognised security organisations.
    9.2.1 In such cases the recognised security organisation, 
undertaking the review and approval of a ship security plan, or its 
amendments, for a specific ship shall not have been involved in 
either the preparation of the ship security assessment or of the 
ship security plan, or of the amendments, under review.
    9.3 The submission of a ship security plan, or of amendments to 
a previously approved plan, for approval shall be accompanied by the 
security assessment on the basis of which the plan, or the 
amendments, have been developed.
    9.4 Such a plan shall be developed, taking into account the 
guidance given in part B of this Code and shall be written in the 
working language or languages of the ship. If the language or 
languages used is not English, French or Spanish, a translation into 
one of these languages shall be included. The plan shall address, at 
least, the following:
    .1 Measures designed to prevent weapons, dangerous substances 
and devices intended for use against people, ships or ports and the 
carriage of which is not authorized from being taken on board the 
ship;
    .2 Identification of the restricted areas and measures for the 
prevention of unauthorized access to them;
    .3 Measures for the prevention of unauthorized access to the 
ship;
    .4 Procedures for responding to security threats or breaches of 
security, including provisions for maintaining critical operations 
of the ship or ship/port interface;
    .5 Procedures for responding to any security instructions 
Contracting Governments may give at security level 3;
    .6 Procedures for evacuation in case of security threats or 
breaches of security;
    .7 Duties of shipboard personnel assigned security 
responsibilities and of other shipboard personnel on security 
aspects;
    .8 Procedures for auditing the security activities;
    .9 Procedures for training, drills and exercises associated with 
the plan;
    .10 Procedures for interfacing with port facility security 
activities;
    .11 Procedures for the periodic review of the plan and for 
updating;
    .12 Procedures for reporting security incidents;
    .13 Identification of the ship security officer;
    .14 Identification of the company security officer including 
with 24-hour contact details;
    .15 Procedures to ensure the inspection, testing, calibration, 
and maintenance of any security equipment provided on board, if any;
    .16 Frequency for testing or calibration any security equipment 
provided on board, if any;
    .17 Identification of the locations where the ship security 
alert system activation points are provided; \1\ and
---------------------------------------------------------------------------


    \1\ Administrations may allow, in order to avoid any 
compromising of the objective of providing on board the ship 
security alert system, this information to be kept elsewhere on 
board in a document known to the master, the ship security officer 
and other senior shipboard personnel as may be decided by the 
Company.
---------------------------------------------------------------------------


    .18 Procedures, instructions and guidance on the use of the ship 
security alert system, including the testing, activation, 
deactivation and resetting and to limit false alerts.\1\
    9.4.1 Personnel conducting internal audits of the security 
activities specified in the plan or evaluating its implementation 
shall be independent of the activities being audited unless this is 
impracticable due to the size and the nature of the Company or of 
the ship.
    9.5 The Administration shall determine which changes to an 
approved ship security plan or to any security equipment specified 
in an approved plan shall not be implemented unless the relevant 
amendments to the plan are approved by the Administration. Any such 
changes shall be at least as effective as those measures prescribed 
in chapter XI-2 and this part of the Code.
    9.5.1 The nature of the changes to the ship security plan or the 
security equipment that have been specifically approved by the 
Administration, pursuant to section 9.5, shall be documented in a 
manner that clearly indicates such approval. This approval shall be 
available on board and shall be presented together with the 
International Ship Security Certificate (or the Interim 
International Ship Security Certificate). If these changes are 
temporary, once the original approved measures or equipment are 
reinstated, this documentation no longer needs to be retained by the 
ship.
    9.6 The plan may be kept in an electronic format. In such a 
case, it shall be protected by procedures aimed at preventing its 
unauthorised deletion, destruction or amendment.
    9.7 The plan shall be protected from unauthorized access or 
disclosure.
    9.9 Ship security plans are not subject to inspection by 
officers duly authorised by a Contracting Government to carry out 
control and compliance measures in accordance with regulation XI-2/
9, save in circumstances specified in section 9.9.1.
    9.9.1 If the officers duly authorised by a Contracting 
Government have clear grounds to believe that the ship is not in 
compliance with the requirements of chapter XI-2 or part A of this 
Code, and the only means to verify or rectify the non-compliance is 
to review the relevant requirements of the ship security plan, 
limited access to the specific sections of the plan relating to the 
non-compliance is exceptionally allowed, but only with the consent 
of the Contracting Government of, or the master of, the ship 
concerned. Nevertheless, the provisions in the plan relating to 
section 9.4 subsections .2, .4, .5, .7, .15, .17 and .18 of this 
part of the Code are considered as confidential information, and 
cannot be subject to inspection unless otherwise agreed by the 
Contracting Governments concerned.
    10 Records
    10.1 Records of the following activities addressed in the ship 
security plan shall be kept on board for at least the minimum


[[Page 79759]]


period specified by the Administration, bearing in mind the 
provisions of regulation XI-2/9.2.3:
    .1 Training, drills and exercises;
    .2 Security threats and security incidents;
    .3 Breaches of security;
    .4 Changes in security level;
    .5 Communications relating to the direct security of the ship 
such as specific threats to the ship or to port facilities the ship 
is, or has been;
    .6 Internal audits and reviews of security activities;
    .7 Periodic review of the ship security assessment;
    .8 Periodic review of the ship security plan;
    .9 Implementation of any amendments to the plan; and
    .10 Maintenance, calibration and testing of security equipment, 
if any including testing of the ship security alert system.
    10.2 The records shall be kept in the working language or 
languages of the ship. If the language or languages used are not 
English, French or Spanish, a translation into one of these 
languages shall be included.
    10.3 The records may be kept in an electronic format. In such a 
case, they shall be protected by procedures aimed at preventing 
their unauthorised deletion, destruction or amendment.
    10.4 The records shall be protected from unauthorized access or 
disclosure.


11 Company Security Officer


    11.1 The Company shall designate a company security officer. A 
person designated as the company security officer may act as the 
company security officer for one or more ships, depending on the 
number or types of ships the Company operates provided it is clearly 
identified for which ships this person is responsible. A Company 
may, depending on the number or types of ships they operate 
designate several persons as company security officers provided it 
is clearly identified for which ships each person is responsible.
    11.2 In addition to those specified elsewhere in this part of 
the Code, the duties and responsibilities of the company security 
officer shall include, but are not limited to:
    .1 Advising the level of threats likely to be encountered by the 
ship, using appropriate security assessments and other relevant 
information;
    .2 Ensuring that ship security assessments are carried out;
    .3 Ensuring the development, the submission for approval, and 
thereafter the implementation and maintenance of the ship security 
plan;
    .4 Ensuring that the ship security plan is modified, as 
appropriate, to correct deficiencies and satisfy the security 
requirements of the individual ship;
    .5 Arranging for internal audits and reviews of security 
activities;
    .6 Arranging for the initial and subsequent verifications of the 
ship by the Administration or the recognised security organisation;
    .7 Ensuring that deficiencies and non-conformities identified 
during internal audits, periodic reviews, security inspections and 
verifications of compliance are promptly addressed and dealt with;
    .8 Enhancing security awareness and vigilance;
    .9 Ensuring adequate training for personnel responsible for the 
security of the ship;
    .10 Ensuring effective communication and co-operation between 
the ship security officer and the relevant port facility security 
officers;
    .11 Ensuring consistency between security requirements and 
safety requirement;
    .12 Ensuring that, if sister-ship or fleet security plans are 
used, the plan for each ship reflects the ship-specific information 
accurately; and
    .13 Ensuring that any alternative or equivalent arrangements 
approved for a particular ship or group of ships are implemented and 
maintained.


12 Ship Security Officer


    12.1 A ship security officer shall be designated on each ship.
    12.2 In addition to those specified elsewhere in this part of 
the Code, the duties and responsibilities of the ship security 
officer shall include, but are not limited to:
    .1 Undertaking regular security inspections of the ship to 
ensure that appropriate security measures are maintained;
    .2 Maintaining and supervising the implementation of the ship 
security plan, including any amendments to the plan;
    .3 Co-ordinating the security aspects of the handling of cargo 
and ship's stores with other shipboard personnel and with the 
relevant port facility security officers;
    .4 Proposing modifications to the ship security plan;
    .5 Reporting to the Company Security Officer any deficiencies 
and non-conformities identified during internal audits, periodic 
reviews, security inspections and verifications of compliance and 
implementing any corrective actions;
    .6 Enhancing security awareness and vigilance on board;
    .7 Ensuring that adequate training has been provided to 
shipboard personnel, as appropriate;
    .8 Reporting all security incidents;
    .9 Co-ordinating implementation of the ship security plan with 
the company security officer and the relevant port facility security 
officer; and
    .10 Ensuring that security equipment is properly operated, 
tested, calibrated and maintained, if any.


13 Training, Drills and Exercises on Ship Security


    13.1 The company security officer and appropriate shore-based 
personnel shall have knowledge and have received training, taking 
into account the guidance given in part B of this Code.
    13.2 The ship security officer shall have knowledge and have 
received training, taking into account the guidance given in part B 
of this Code.
    13.3 Shipboard personnel having specific security duties and 
responsibilities shall understand their responsibilities for ship 
security as described in the ship security plan and shall have 
sufficient knowledge and ability to perform their assigned duties, 
taking into account the guidance given in Part B of this Code.
    13.4 To ensure the effective implementation of the ship security 
plan, drills shall be carried out at appropriate intervals taking 
into account the ship type, ship personnel changes, port facilities 
to be visited and other relevant circumstances, taking into account 
guidance given in part B of this Code.
    13.5 The company security officer shall ensure the effective 
coordination and implementation of ship security plans by 
participating in exercises at appropriate intervals, taking into 
account the guidance given in part B of this Code.


14 Port Facility Security


    14.1 A port facility is required to act upon the security levels 
set by the Contracting Government within whose territory it is 
located. Security measures and procedures shall be applied at the 
port facility in such a manner as to cause a minimum of interference 
with, or delay to, passengers, ship, ship's personnel and visitors, 
goods and services.
    14.2 At security level 1, the following activities shall be 
carried out through appropriate measures in all port facilities, 
taking into account the guidance given in part B of this Code, in 
order to identify and take preventive measures against security 
incidents:
    .1 Ensuring the performance of all port facility security 
duties;
    .2 Controlling access to the port facility;
    .3 Monitoring of the port facility, including anchoring and 
berthing area(s);
    .4 Monitoring restricted areas to ensure that only authorized 
persons have access;
    .5 Supervising the handling of cargo;
    .6 Supervising the handling of ship's stores; and
    .7 Ensuring that security communication is readily available.
    14.3 At security level 2, the additional protective measures, 
specified in the port facility security plan, shall be implemented 
for each activity detailed in section 14.2, taking into account the 
guidance given in part B of this Code.
    14.4 At security level 3, further specific protective measures, 
specified in the port facility security plan, shall be implemented 
for each activity detailed in section 14.2, taking into account the 
guidance given in part B of this Code.
    14.4.1 In addition, at security level 3, port facilities are 
required to respond to and implement any security instructions given 
by the Contracting Government within whose territory the port 
facility is located.
    14.5 When a port facility security officer is advised that a 
ship encounters difficulties in complying with the requirements of 
chapter XI-2 or this part or in implementing the appropriate 
measures and procedures as detailed in the ship security plan, and 
in the case of security level 3 following any security instructions 
given by the Contracting Government within whose territory the port 
facility is located, the port facility security


[[Page 79760]]


officer and ship security officer shall liase and co-ordinate 
appropriate actions.
    14.6 When a port facility security officer is advised that a 
ship is at a security level, which is higher than that of the port 
facility, shall report the matter to the competent authority and 
shall liase with the ship security officer and co-ordinate 
appropriate actions, if necessary.


15 Port Facility Security Assessment


    15.1 The port facility security assessment is an essential and 
integral part of the process of developing and updating the port 
facility security plan.
    15.2 The port facility security assessment shall be carried out 
by the Contracting Government within whose territory the port 
facility is located. A Contracting Government may authorise a 
recognised security organisation to carry out the port facility 
security assessment of a specific port facility located within its 
territory.
    15.2.1 When the port facility security assessment has been 
carried out by a recognised security organisation, the security 
assessment shall be reviewed and approved for compliance with this 
section by the Contracting Government within whose territory the 
port facility is located.
    15.3 The persons carrying out the assessment shall have 
appropriate skills to evaluate the security of the port facility in 
accordance with this section, taking into account the guidance given 
in part B of this Code.
    15.4 The port facility security assessments shall periodically 
be reviewed and updated, taking account of changing threats and/or 
minor changes in the port facility and shall always be reviewed and 
updated when major changes to the port facility take place.
    15.5 The port facility security assessment shall include, at 
least, the following elements:
    .1 Identification and evaluation of important assets and 
infrastructure it is important to protect;
    .2 Identification of possible threats to the assets and 
infrastructure and the likelihood of their occurrence, in order to 
establish and prioritize security measures;
    .3 Identification, selection and prioritization of counter 
measures and procedural changes and their level of effectiveness in 
reducing vulnerability; and
    .4 Identification of weaknesses, including human factors in the 
infrastructure, policies and procedures.
    15.6 The Contracting Government may allow a port facility 
security assessment to cover more than one port facility if the 
operator, location, operation, equipment, and design of these port 
facilities are similar. Any Contracting Government, which allows 
such an arrangement shall communicate to the Organization 
particulars thereof.
    15.7 Upon completion of the port facility security assessment, a 
report shall be prepared, consisting of a summary of how the 
assessment was conducted, a description of each vulnerability found 
during the assessment and a description of counter measures that 
could be used to address each vulnerability. The report shall be 
protected from unauthorized access or disclosure.


16 Port Facility Security Plan


    16.1 A port facility security plan shall be developed and 
maintained, on the basis of a port facility security assessment, for 
each port facility, adequate for the ship/port interface. The plan 
shall make provisions for the three security levels, as defined in 
this part of the Code.
    16.1.1 Subject to the provisions of section 16.2, a recognized 
security organization may prepare the port facility security plan of 
a specific port facility.
    16.2 The port facility security plan shall be approved by the 
Contracting Government in whose territory the port facility is 
located.
    16.3 Such a plan shall be developed taking into account the 
guidance given in part B of this Code and shall be in the working 
language of the port facility. The plan shall address, at least, the 
following:
    .1 Measures designed to prevent weapons or any other dangerous 
substances and devices intended for use against people, ships or 
ports and the carriage of which is not authorized, from being 
introduced into the port facility or on board a ship;
    .2 Measures designed to prevent unauthorized access to the port 
facility, to ships moored at the facility, and to restricted areas 
of the facility;
    .3 Procedures for responding to security threats or breaches of 
security, including provisions for maintaining critical operations 
of the port facility or ship/port interface;
    .4 Procedures for responding to any security instructions the 
Contracting Government, in whose territory the port facility is 
located, may give at security level 3;
    .5 Procedures for evacuation in case of security threats or 
breaches of security;
    .6 Duties of port facility personnel assigned security 
responsibilities and of other facility personnel on security 
aspects;
    .7 Procedures for interfacing with ship security activities;
    .8 Procedures for the periodic review of the plan and updating;
    .9 Procedures for reporting security incidents;
    .10 Identification of the port facility security officer 
including 24-hour contact details;
    .11 Measures to ensure the security of the information contained 
in the plan;
    .12 Measures designed to ensure effective security of cargo and 
the cargo handling equipment at the port facility;
    .13 Procedures for auditing the port facility security plan;
    .14 Procedures for responding in case the ship security alert 
system of a ship at the port facility has been activated; and
    .15 Procedures for facilitating shore leave for ship's personnel 
or personnel changes, as well as access of visitors to the ship 
including representatives of seafarers' welfare and labour 
organizations.
    16.3.1 Personnel conducting internal audits of the security 
activities specified in the plan or evaluating its implementation 
shall be independent of the activities being audited unless this is 
impracticable due to the size and the nature of the port facility.
    16.4 The port facility security plan may be combined with, or be 
part of, the port security plan or any other port emergency plan or 
plans.
    16.5 The Contracting Government in whose territory the port 
facility is located shall determine which changes to the port 
facility security plan shall not be implemented unless the relevant 
amendments to the plan are approved by them.
    16.6 The plan may be kept in an electronic format. In such a 
case, it shall be protected by procedures aimed at preventing its 
unauthorised deletion, destruction or amendment.
    16.7 The plan shall be protected from unauthorized access or 
disclosure.
    16.8 Contracting Governments may allow a port facility security 
plan to cover more than one port facility if the operator, location, 
operation, equipment, and design of these port facilities are 
similar. Any Contracting Government, which allows such an 
alternative arrangement, shall communicate to the Organization 
particulars thereof.


17 Port Facility Security Officer


    17.1 A port facility security officer shall be designated for 
each port facility. A person may be designated as the port facility 
security officer for one or more port facilities.
    17.2 In addition to those specified elsewhere in this part of 
the Code, the duties and responsibilities of the port facility 
security officer shall include, but are not limited to:
    .1 Conducting an initial comprehensive security survey of the 
port facility taking into account the relevant port facility 
security assessment;
    .2 Ensuring the development and maintenance of the port facility 
security plan;
    .3 Implementing and exercising the port facility security plan;
    .4 Undertaking regular security inspections of the port facility 
to ensure the continuation of appropriate security measures;
    .5 Recommending and incorporating, as appropriate, modifications 
to the port facility security plan in order to correct deficiencies 
and to update the plan to take into account of relevant changes to 
the port facility;
    .6 Enhancing security awareness and vigilance of the port 
facility personnel;
    .7 Ensuring adequate training has been provided to personnel 
responsible for the security of the port facility;
    .8 Reporting to the relevant authorities and maintaining records 
of occurrences which threaten the security of the port facility;
    .9 Co-ordinating implementation of the port facility security 
plan with the appropriate Company and ship security officer(s);
    .10 Co-ordinating with security services, as appropriate;
    .11 Ensuring that standards for personnel responsible for 
security of the port facility are met;
    .12 Ensuring that security equipment is properly operated, 
tested, calibrated and maintained, if any; and
    .13 Assisting ship security officers in confirming the identity 
of those seeking to board the ship when requested.


[[Page 79761]]


    17.3 The port facility security officer shall be given the 
necessary support to fulfil the duties and responsibilities imposed 
by chapter XI-2 and this part of this Code.


18 Training, Drills and Exercises on Port Facility Security


    18.1 The port facility security officer and appropriate port 
facility security personnel shall have knowledge and have received 
training, taking into account the guidance given in part B of this 
Code.
    18.2 Port facility personnel having specific security duties 
shall understand their duties and responsibilities for port facility 
security, as described in the port facility security plan and shall 
have sufficient knowledge and ability to perform their assigned 
duties, taking into account the guidance given in part B of this 
Code.
    18.3 To ensure the effective implementation of the port facility 
security plan, drills shall be carried out at appropriate intervals 
taking into account the types of operations of the port facility, 
port facility personnel changes, the type of ship the port facility 
is serving and other relevant circumstances, taking into account 
guidance given in part B of this Code.
    18.4 The port facility security officer shall ensure the 
effective coordination and implementation of the port facility 
security plan by participating in exercises at appropriate 
intervals, taking into account the guidance given in part B of this 
Code.


19 Verification and Certification for Ships


    19.1 Verifications.
    19.1.1 Each ship to which this part of the Code applies shall be 
subject to the verifications specified below:
    .1 An initial verification before the ship is put in service or 
before the certificate required under section 19.2 is issued for the 
first time, which shall include a complete verification of its 
security system and any associated security equipment covered by the 
relevant provisions of chapter XI-2, this part of the Code and the 
approved ship security plan. This verification shall ensure that the 
security system and any associated security equipment of the ship 
fully complies with the applicable requirements of chapter XI-2 and 
this part of the Code, is in satisfactory condition and fit for the 
service for which the ship is intended;
    .2 A renewal verification at intervals specified by the 
Administration, but not exceeding five years, except where section 
19.3.1 or 19.3.4 is applicable. This verification shall ensure that 
the security system and any associated security equipment of the 
ship fully complies with the applicable requirements of chapter XI-
2, this part of the Code and the approved Ship Security Plan, is in 
satisfactory condition and fit for the service for which the ship is 
intended;
    .3 At least one intermediate verification. If only one 
intermediate verification is carried out it shall take place between 
the second and third anniversary date of the certificate as defined 
in regulation I/2(n). The intermediate verification shall include 
inspection of the security system and any associated security 
equipment of the ship to ensure that it remains satisfactory for the 
service for which the ship is intended. Such intermediate 
verification shall be endorsed on the certificate;
    .4 Any additional verifications as determined by the 
Administration.
    19.1.2 The verifications of ships shall be carried out by 
officers of the Administration. The Administration may, however, 
entrust the verifications to a recognized security organization 
referred to in regulation XI-2/1.
    19.1.3 In every case, the Administration concerned shall fully 
guarantee the completeness and efficiency of the verification and 
shall undertake to ensure the necessary arrangements to satisfy this 
obligation.
    19.1.4 The security system and any associated security equipment 
of the ship after verification shall be maintained to conform with 
the provisions of regulations XI-2/4.2 and XI-2/6, this part of the 
Code and the approved ship security plan. After any verification 
under section 19.1.1 has been completed, no changes shall be made in 
security system and in any associated security equipment or the 
approved ship security plan without the sanction of the 
Administration.
    19.2 Issue or endorsement of certificate.
    19.2.1 An International Ship Security Certificate shall be 
issued after the initial or renewal verification in accordance with 
the provisions of section 19.1.
    19.2.2 Such certificate shall be issued or endorsed either by 
the Administration or by the a recognized security organization 
acting on behalf of the Administration.
    19.2.3 Another Contracting Government may, at the request of the 
Administration, cause the ship to be verified and, if satisfied that 
the provisions of section 19.1.1 are complied with, shall issue or 
authorize the issue of an International Ship Security Certificate to 
the ship and, where appropriate, endorse or authorize the 
endorsement of that certificate on the ship, in accordance with this 
Code.
    19.2.3.1 A copy of the certificate and a copy of the 
verification report shall be transmitted as soon as possible to the 
requesting Administration.
    19.2.3.2 A certificate so issued shall contain a statement to 
the effect that it has been issued at the request of the 
Administration and it shall have the same force and receive the same 
recognition as the certificate issued under section 19.2.2.
    19.2.4 The International Ship Security Certificate shall be 
drawn up in a form corresponding to the model given in the appendix 
to this Code. If the language used is not English, French or 
Spanish, the text shall include a translation into one of these 
languages.
    19.3 Duration and validity of certificate.
    19.3.1 An International Ship Security Certificate shall be 
issued for a period specified by the Administration which shall not 
exceed five years.
    19.3.2 When the renewal verification is completed within three 
months before the expiry date of the existing certificate, the new 
certificate shall be valid from the date of completion of the 
renewal verification to a date not exceeding five years from the 
date of expiry of the existing certificate.
    19.3.2.1 When the renewal verification is completed after the 
expiry date of the existing certificate, the new certificate shall 
be valid from the date of completion of the renewal verification to 
a date not exceeding five years from the date of expiry of the 
existing certificate.
    19.3.2.2 When the renewal verification is completed more than 
three months before the expiry date of the existing certificate, the 
new certificate shall be valid from the date of completion of the 
renewal verification to a date not exceeding five years from the 
date of completion of the renewal verification.
    19.3.3 If a certificate is issued for a period of less than five 
years, the Administration may extend the validity of the certificate 
beyond the expiry date to the maximum period specified in section 
19.3.1, provided that the verifications referred to in section 
19.1.1 applicable when a certificate is issued for a period of five 
years are carried out as appropriate.
    19.3.4 If a renewal verification has been completed and a new 
certificate cannot be issued or placed on board the ship before the 
expiry date of the existing certificate, the Administration or 
recognized security organization acting on behalf of the 
Administration may endorse the existing certificate and such a 
certificate shall be accepted as valid for a further period which 
shall not exceed five months from the expiry date.
    19.3.5 If a ship at the time when a certificate expires is not 
in a port in which it is to be verified, the Administration may 
extend the period of validity of the certificate but this extension 
shall be granted only for the purpose of allowing the ship to 
complete its voyage to the port in which it is verified, and then 
only in cases where it appears proper and reasonable to do so. No 
certificate shall be extended for a period longer than three months, 
and the ship to which an extension is granted shall not, on its 
arrival in the port in which it is to be verified, be entitled by 
virtue of such extension to leave that port without having a new 
certificate. When the renewal verification is completed, the new 
certificate shall be valid to a date not exceeding five years from 
the expiry date of the existing certificate before the extension was 
granted.
    19.3.6 A certificate issued to a ship engaged on short voyages 
which has not been extended under the foregoing provisions of this 
section may be extended by the Administration for a period of grace 
of up to one month from the date of expiry stated on it. When the 
renewal verification is completed, the new certificate shall be 
valid to a date not exceeding five years from the date of expiry of 
the existing certificate before the extension was granted.
    19.3.7 If an intermediate verification is completed before the 
period specified in section 19.1.1, then:
    .1 The expiry date shown on the certificate shall be amended by 
endorsement to a date which shall not be more than three years later 
than the date on which the intermediate verification was completed;
    .2 The expiry date may remain unchanged provided one or more 
additional verifications are carried out so that the


[[Page 79762]]


maximum intervals between the verifications prescribed by section 
19.1.1 are not exceeded.
    19.3.8 A certificate issued under section 19.2 shall cease to be 
valid in any of the following cases:
    .1 If the relevant verifications are not completed within the 
periods specified under section 19.1.1;
    .2 If the certificate is not endorsed in accordance with section 
19.1.1.3 and 19.3.7.2 if applicable;
    .3 When a Company assumes the responsibility for the operation 
of a ship not previously operated by that Company; and
    .4 Upon transfer of the ship to the flag of another State.
    19.3.9 In the case of:
    .1 A transfer of a ship to the flag of another Contracting 
Government, the Contracting Government whose flag the ship was 
formerly entitled to fly shall, as soon as possible, transmit to the 
receiving Administration copies of, or all information relating to, 
the International Ship Security Certificate carried by the ship 
before the transfer and copies of available verification reports, or
    .2 A Company that assumes responsibility for the operation of a 
ship not previously operated by that Company, the previous Company 
shall as soon as possible, transmit to the receiving Company copies 
of any information related to the International Ship Security 
Certificate or to facilitate the verifications described in section 
19.4.2.
    19.4 Interim certification.
    19.4.1 The certificates specified in section 19.2 shall be 
issued only when the Administration issuing the certificate is fully 
satisfied that the ship complies with the requirements of section 
19.1. However, after 1 July 2004, for the purposes of:
    .1 A ship without a certificate, on delivery or prior to its 
entry or re-entry into service;
    .2 Transfer of a ship from the flag of a Contracting Government 
to the flag of another Contracting Government;
    .3 Transfer of a ship to the flag of a Contracting Government 
from a State which is not a Contracting Government; or
    .4 When a Company assumes the responsibility for the operation 
of a ship not previously operated by that Company;


until the certificate referred to in section 19.2 is issued, the 
Administration may cause an Interim International Ship Security 
Certificate to be issued, in a form corresponding to the model given 
in the Appendix to this part of the Code.
    19.4.2 An Interim International Ship Security Certificate shall 
only be issued when the Administration or recognized security 
organization, on behalf of the Administration, has verified that:
    .1 The ship security assessment required by this part of the 
Code has been completed,
    .2 A copy of the ship security plan meeting the requirements of 
chapter XI-2 and part A of this Code is provided on board, has been 
submitted for review and approval, and is being implemented on the 
ship;
    .3 The ship is provided with a ship security alert system 
meeting the requirements of regulation XI-2/6, if required,
    .4 The Company Security Officer:
    .1 Has ensured:
    .1 The review of the ship security plan for compliance with this 
part of the Code,
    .2 That the plan has been submitted for approval, and
    .3 That the plan is being implemented on the ship, and
    .2 Has established the necessary arrangements, including 
arrangements for drills, exercises and internal audits, through 
which the Company Security Officer is satisfied that the ship will 
successfully complete the required verification in accordance with 
section 19.1.1.1, within 6 months;
    .5 Arrangements have been made for carrying out the required 
verifications under section 19.1.1.1;
    .6 The master, the ship's security officer and other ship's 
personnel with specific security duties are familiar with their 
duties and responsibilities as specified in this part of the Code; 
and with the relevant provisions of the ship security plan placed on 
board; and have been provided such information in the working 
language of the ship's personnel or languages understood by them; 
and
    .7 The ship security officer meets the requirements of this part 
of the Code.
    19.4.3 An Interim International Ship Security Certificate may be 
issued by the Administration or by a recognized security 
organization authorized to act on its behalf.
    19.4.4 An Interim International Ship Security Certificate shall 
be valid for 6 months, or until the certificate required by section 
19.2 is issued, whichever comes first, and may not be extended.
    19.4.5 No Contracting Government shall cause a subsequent, 
consecutive Interim International Ship Security Certificate to be 
issued to a ship if, in the judgment of the Administration or the 
recognized security organization, one of the purposes of the ship or 
a Company in requesting such certificate is to avoid full compliance 
with chapter XI-2 and this part of the Code beyond the period of the 
initial interim certificate as specified in section 19.4.4.
    19.4.6 For the purposes of regulation XI-2/9, Contracting 
Governments may, prior to accepting an Interim International Ship 
Security Certificate as a valid certificate, ensure that the 
requirements of sections 19.4.2.4 to 19.4.2.6 have been met.


Appendix to Part A


Appendix 1--Form of the International Ship Security Certificate


International Ship Security Certificate


(official seal)
(State)
Certificate No.


    Issued under the provisions of the International Code for the 
Security of Ships and of Port Facilities (ISPS Code).
    Under the authority of the Government of -------------------- 
(name of State) by ---------------------- (persons or organization 
authorized)


Name of ship-----------------------------------------------------------
Distinctive number or letters------------------------------------------
Port of registry-------------------------------------------------------
Type of ship-----------------------------------------------------------
Gross tonnage----------------------------------------------------------
IMO Number-------------------------------------------------------------
Name and address of the Company----------------------------------------


    This is to certify:
    1 That the security system and any associated security equipment 
of the ship has been verified in accordance with section 19.1 of 
part A of the ISPS Code;
    2 That the verification showed that the security system and any 
associated security equipment of the ship is in all respects 
satisfactory and that the ship complies with the applicable 
requirements of chapter XI-2 of the Convention and part A of the 
ISPS Code;
    3 That the ship is provided with an approved Ship Security Plan.


Date of initial / renewal verification on which this certificate is 
based----------------


This Certificate is valid until---------------- subject to 
verifications in accordance with section 19.1.1 of part A of the 
ISPS Code.


Issued at---------------- (place of issue of the Certificate)
Date of issue----------------
-----------------------------------------------------------------------
(signature of the duly authorized official issuing the Certificate)


(Seal or stamp of issuing authority, as appropriate)


Endorsement for Intermediate Verification


    This is to certify that at an intermediate verification required 
by section 19.1.1 of part A of the ISPS Code the ship was found to 
comply with the relevant provisions of chapter XI-2 of the 
Convention and part A of the ISPS Code.


Intermediate Verification


Signed-----------------------------------------------------------------
 (Signature of authorized official)
Place------------------------------------------------------------------
Date-------------------------------------------------------------------


(Seal or stamp of the authority, as appropriate)


Endorsement for Additional Verifications *


Additional Verification


Signed-----------------------------------------------------------------
 (Signature of authorized official)
Place------------------------------------------------------------------
Date-------------------------------------------------------------------


(Seal or stamp of the authority, as appropriate)


Additional Verification


Signed-----------------------------------------------------------------
 (Signature of authorized official)
Place------------------------------------------------------------------
Date-------------------------------------------------------------------


(Seal or stamp of the authority, as appropriate)


Additional Verification


Signed-----------------------------------------------------------------
 (Signature of authorized official)
Place------------------------------------------------------------------
Date-------------------------------------------------------------------


(Seal or stamp of the authority, as appropriate)


    *This part of the certificate shall be adapted by the 
Administration to indicate


[[Page 79763]]


whether it has established additional verifications as provided for 
in section 19.1.1.4.


Additional Verification in Accordance With Section A/19.3.7.2 of 
the ISPS Code


    This is to certify that at an additional verification required 
by section 19.3.7.2 of part A of the ISPS Code the ship was found to 
comply with the relevant provisions of chapter XI-2 of the 
Convention and part A of the ISPS Code.


Signed-----------------------------------------------------------------
 (Signature of authorized official)
Place------------------------------------------------------------------
Date-------------------------------------------------------------------


(Seal or stamp of the authority, as appropriate)


Endorsement to Extend the Certificate if Valid for Less Than 5 
Years Where Section A/19.3.3 of the ISPS Code Applies


    The ship complies with the relevant provisions of part A of the 
ISPS Code, and the Certificate shall, in accordance with section 
19.3.3 of part A of the ISPS Code, be accepted as valid until------
----------.


Signed-----------------------------------------------------------------
 (Signature of authorized official)
Place------------------------------------------------------------------
Date-------------------------------------------------------------------


(Seal or stamp of the authority, as appropriate)


Endorsement Where the Renewal Verification Has Been Completed and 
Section A/19.3.4 of the ISPS Code Applies


    The ship complies with the relevant provisions of part A of the 
ISPS Code, and the Certificate shall, in accordance with section 
19.3.4 of part A of the ISPS Code, be accepted as valid until------
----------.


Signed-----------------------------------------------------------------
 (Signature of authorized official)
Place------------------------------------------------------------------
Date-------------------------------------------------------------------


(Seal or stamp of the authority, as appropriate)


Endorsement to Extend the Validity of the Certificate Until 
Reaching the Port of Verification Where Section A/19.3.5 of the 
ISPS Code Applies or for a Period of Grace Where Section A/19.3.6 
of the ISPS Code Applies


    This Certificate shall, in accordance with section 19.3.5/19.3.6 
* of part A of the ISPS Code, be accepted as valid until------------
----.


Signed-----------------------------------------------------------------
 (Signature of authorized official)
Place------------------------------------------------------------------
Date-------------------------------------------------------------------


(Seal or stamp of the authority, as appropriate)


Endorsement for Advancement of Expiry Date Where Section A/19.3.7.1 
of the ISPS Code Applies


    In accordance with section 19.3.7.1 of part A of the ISPS Code, 
the new expiry date ** is----------------.


Signed-----------------------------------------------------------------
 (Signature of authorized official)
Place------------------------------------------------------------------
Date-------------------------------------------------------------------


(Seal or stamp of the authority, as appropriate)


--------
    * Delete as appropriate.
    **In case of completion of this part of the certificate the 
expiry date shown on the front of the certificate shall also be 
amended accordingly.


Appendix 2--Form of the Interim International Ship Security Certificate


Interim International Ship Security Certificate


(Official seal)
(State)
Certificate No.


    Issued under the provisions of the International Code for the 
Security of Ships and of Port Facilities (ISPS Code)


    Under the authority of the Government of -------------------- 
(name of State) by-------------------- (persons or organization 
authorized)


Name of ship:----------------------------------------------------------
Distinctive number or letters:-----------------------------------------
Port of registry:------------------------------------------------------
Type of ship:----------------------------------------------------------
Gross tonnage:---------------------------------------------------------
IMO Number:------------------------------------------------------------
Name and address of company:-------------------------------------------
Is this a subsequent, consecutive interim certificate? Yes/No *
If Yes, date of issue of initial interim certificate-------------------


    This is to certify that the requirements of section A/19.4.2 of 
the ISPS Code have been complied with.
    This Certificate is issued pursuant to section A/19.4 * of the 
ISPS Code.
    This Certificate is valid until----------------.


Issued at---------------- (place of issue of the certificate).
Date of issue----------------
-----------------------------------------------------------------------
(signature of the duly authorized official issuing the Certificate)


(Seal or stamp of issuing authority, as appropriate)


--------
    *Delete as appropriate.


Part B


Guidance Regarding the Provisions of Chapter XI-2 of the Annex to 
the International Convention for the Safety of Life at Sea, 1974 as 
Amended and Part A of This Code


1 Introduction


General


    1.1 The preamble of this Code indicates that chapter XI-2 and 
part A of this Code establish the new international framework of 
measures to enhance maritime security and through which ships and 
port facilities can co-operate to detect and deter acts which 
threaten security in the maritime transport sector.
    1.2 This introduction outlines, in a concise manner, the 
processes envisaged in establishing and implementing the measures 
and arrangements needed to achieve and maintain compliance with the 
provisions of chapter XI-2 and of part A of this Code and identifies 
the main elements on which guidance is offered. The guidance is 
provided in paragraphs 2 through to 19. It also sets down essential 
considerations, which should be taken into account when considering 
the application of the guidance relating to ships and port 
facilities.
    1.3 If the reader's interest relates to ships alone, it is 
strongly recommended that this part of the Code is still read as a 
whole, particularly the sections relating to port facilities. The 
same applies to those whose primary interest are port facilities; 
they should also read the sections relating to ships.
    1.4 The guidance provided in the following sections relates 
primarily to protection of the ship when it is at a port facility. 
There could, however, be situations when a ship may pose a threat to 
the port facility, e.g. because, once within the port facility, it 
could be used as a base from which to launch an attack. When 
considering the appropriate security measures to respond to ship-
based security threats, those completing the Port Facility Security 
Assessment or preparing the Port Facility Security Plan should 
consider making appropriate adaptations to the guidance offered in 
the following sections.
    1.5 The reader is advised that nothing in this Part of the Code 
should be read or interpreted in conflict with any of the provisions 
of either chapter XI-2 or part A of this Code and that the aforesaid 
provisions always prevail and override any unintended inconsistency 
which may have been inadvertently expressed in this Part of the 
Code. The guidance provided in this Part of the Code should always 
be read, interpreted and applied in a manner which is consistent 
with the aims, objectives and principles established in chapter XI-2 
and part A of this Code.


Responsibilities of Contracting Governments


    1.6 Contracting Governments have, under the provisions of 
chapter XI-2 and part A of this Code, various responsibilities, 
which, amongst others, include:


--Setting the applicable security level;
--Approving the Ship Security Plan and relevant amendments to a 
previously approved plan;
--Verifying the compliance of ships with the provisions of chapter 
XI-2 and part A of this Code and issuing to ships the International 
Ship Security Certificate;
--Determining which of the port facilities located within their 
territory are required to designate a Port Facility Security Officer 
who will be responsible for the preparation of the Port Facility 
Security Plan;
--Ensuring completion and approval of the Port Facility Security 
Assessment and of any subsequent amendments to a previously approved 
assessment;
--Approving the Port Facility Security Plan and any subsequent 
amendments to a previously approved plan; and
--Exercising control and compliance measures;
--Testing approved plans; and


[[Page 79764]]


--Communicating information to the International Maritime 
Organization and to the shipping and port industries.


    1.7 Contracting Governments can designate, or establish, 
Designated Authorities within Government to undertake, with respect 
to port facilities, their security duties under chapter XI-2 and 
part A of this Code and allow Recognised Security Organisations to 
carry out certain work with respect to port facilities but the final 
decision on the acceptance and approval of this work should be given 
by the Contracting Government or the Designated Authority. 
Administrations may also delegate the undertaking of certain 
security duties, relating to ships, to Recognised Security 
Organizations. The following duties or activities cannot delegated 
to a Recognized Security Organization:


--Setting of the applicable security level;
--Determining which of the port facilities located within the 
territory of a Contracting Government are required to designate a 
Port Facility Security Officer and to prepare a Port Facility 
Security Plan;
--Approving a Port Facility Security Assessment or any subsequent 
amendments to a previously approved assessment;
--Approving a Port Facility Security Plan or any subsequent 
amendments to a previously approved plan;
--Exercising control and compliance measures; and
--Establishing the requirements for a Declaration of Security.


Setting the Security Level


    1.8 The setting of the security level applying at any particular 
time is the responsibility of Contracting Governments and can apply 
to ships and port facilities. Part A of this Code defines three 
security levels for international use. These are:


--Security Level 1, normal; the level at which ships and port 
facilities normally operate;
--Security Level 2, heightened; the level applying for as long as 
there is a heightened risk of a security incident; and
--Security Level 3, exceptional, the level applying for the period 
of time when there is the probable or imminent risk of a security 
incident.


The Company and the Ship


    1.9 Any Company operating ships to which chapter XI-2 and part A 
of this Code apply has to designate a Company Security Officer for 
the Company and a Ship Security Officer for each of its ships. The 
duties, responsibilities and training requirements of these officers 
and requirements for drills, and exercises are defined in part A of 
this Code.
    1.10 The Company Security Officer's responsibilities include, in 
brief amongst others, ensuring that a Ship Security Assessment is 
properly carried out, that a Ship Security Plan is prepared and 
submitted for approval by, or on behalf of, the Administration and 
thereafter is placed on board each ship to which part A of this Code 
applies and in respect of which that person has been appointed as 
the Company Security Officer.
    1.11 The Ship Security Plan should indicate the operational and 
physical security measures the ship itself should take to ensure it 
always operates at security level 1.
    The plan should also indicate the additional, or intensified, 
security measures the ship itself can take to move to and operate at 
security level 2 when instructed to do so.
    Furthermore, the plan should indicate the possible preparatory 
actions the ship could take to allow prompt response to the 
instructions that may be issued to the ship by those responding at 
security level 3 to a security incident or threat thereof.
    1.12 The ships to which the requirements of chapter XI-2 and 
part A of this Code apply are required to have, and operated in 
accordance with, a Ship Security Plan approved by, or on behalf of, 
the Administration. The Company and Ship Security Officer should 
monitor the continuing relevance and effectiveness of the plan, 
including the undertaking of internal audits. Amendments to any of 
the elements of an approved plan, for which the Administration has 
determined that approval is required, have to be submitted for 
review and approval before their incorporation in the approved plan 
and their implementation by the ship.
    1.13 The ship has to carry an International Ship Security 
Certificate indicating that it complies with the requirements of 
chapter XI-2 and part A of this Code. Part A of this Code includes 
provisions relating to the verification and certification of the 
ship's compliance with the requirements on an initial, renewal and 
intermediate verification basis.
    1.14 When a ship is at a port or is proceeding to a port of a 
Contracting Government, the Contracting Government has the right, 
under the provisions of regulation XI-2/9, to exercise various 
control and compliance measures with respect to that ship.
    The ship is subject to port State control inspections but such 
inspections will not normally extend to examination of the Ship 
Security Plan itself except in specific circumstances.
    The ship may, also, be subject to additional control measures if 
the Contracting Government exercising the control and compliance 
measures has reason to believe that the security of the ship has, or 
the port facilities it has served have, been compromised.
    1.15 The ship is also required to have onboard information, to 
be made available to Contracting Governments upon request, 
indicating who is responsible for deciding the employment of the 
ship's personnel and for deciding various aspects relating to the 
employment of the ship.


The Port Facility


    1.16 Each Contracting Government has to ensure completion of a 
Port Facility Security Assessment for each of the port facilities, 
located within its territory, serving ships engaged on international 
voyages. The Contracting Government, a Designated Authority or a 
Recognized Security Organization may carry out this assessment. The 
completed Port Facility Security Assessment has to be approved by 
the Contracting Government or the Designated Authority concerned. 
This approval cannot be delegated. Port Facility Security 
Assessments should be periodically reviewed.
    1.17 The Port Facility Security Assessment is fundamentally a 
risk analysis of all aspects of a port facility's operation in order 
to determine which part(s) of it are more susceptible, and/or more 
likely, to be the subject of attack. Security risk is a function of 
the threat of an attack coupled with the vulnerability of the target 
and the consequences of an attack.
    The assessment must include the following components:


--The perceived threat to port installations and infrastructure must 
be determined;
--The potential vulnerabilities identified; and
--The consequences of incidents calculated.


    On completion of the analysis, it will be possible to produce an 
overall assessment of the level of risk. The Port Facility Security 
Assessment will help determine which port facilities are required to 
appoint a Port Facility Security Officer and prepare a Port Facility 
Security Plan.
    1.18 The port facilities which have to comply with the 
requirements of chapter XI-2 and part A of this Code are required to 
designate a Port Facility Security Officer. The duties, 
responsibilities and training requirements of these officers and 
requirements for drills and exercises are defined in part A of this 
Code.
    1.19 The Port Facility Security Plan should indicate the 
operational and physical security measures the port facility should 
take to ensure that it always operates at security level 1. The plan 
should also indicate the additional, or intensified, security 
measures the port facility can take to move to and operate at 
security level 2 when instructed to do so.
    Furthermore, the plan should indicate the possible preparatory 
actions the port facility could take to allow prompt response to the 
instructions that may be issued by those responding at security 
level 3 to a security incident or threat thereof.
    1.20 The port facilities which have to comply with the 
requirements of chapter XI-2 and part A of this Code are required to 
have, and operate in accordance with, a Port Facility Security Plan 
approved by the Contracting Government or by the Designated 
Authority concerned.
    The Port Facility Security Officer should implement its 
provisions and monitor the continuing effectiveness and relevance of 
the plan, including commissioning internal audits of the application 
of the plan.
    Amendments to any of the elements of an approved plan, for which 
the Contracting Government or the Designated Authority concerned has 
determined that approval is required, have to be submitted for 
review and approval before their incorporation in the approved plan 
and their implementation at the port facility.
    The Contracting Government or the Designated Authority concerned 
may test the effectiveness of the plan. The Port Facility


[[Page 79765]]


Security Assessment covering the port facility or on which the 
development of the plan has been based should be regularly reviewed. 
All these activities may lead to amendment of the approved plan. Any 
amendments to specified elements of an approved plan will have to be 
submitted for approval by the Contracting Government or by the 
Designated Authority concerned.
    1.21 Ships using port facilities may be subject to the port 
State control inspections and additional control measures outlined 
in regulation XI-2/9.
    The relevant authorities may request the provision of 
information regarding the ship, its cargo, passengers and ship's 
personnel prior to the ship's entry into port.
    There may be circumstances in which entry into port could be 
denied.


Information and Communication


    1.22 Chapter XI-2 and part A of this Code require Contracting 
Governments to provide certain information to the International 
Maritime Organization and for information to be made available to 
allow effective communication between Contracting Governments and 
between Company/Ship Security Officers and the Port Facility 
Security Officers responsible for the port facility their ships 
visit.


2 Definitions


    2.1 No guidance is provided with respect to the definitions set 
out in chapter XI-2 or part A of this Code.
    2.2 For the purpose of this part of the Code:
    .1 ``Section'' means a section of part A of the Code and is 
indicated as ``section A/';
    .2 ``Paragraph'' means a paragraph of this part of the Code and 
is indicated as ``paragraph ''; and
    .3 ``Contracting Government'', when used in paragraphs 14 to 18, 
means the ``Contracting Government within whose territory the port 
facility is located'' and includes a reference to the ``Designated 
Authority''.


3 Application


General


    3.1 The guidance given in this part of the Code should be taken 
into account when implementing the requirements of chapter XI-2 and 
part A of this Code.
    3.2 However, it should be recognized that the extent to which 
the guidance on ships applies will depend on the type of ship, its 
cargoes and/or passengers, its trading pattern and the 
characteristics of the port facilities visited by the ship.
    3.3 Similarly, in relation to the guidance on port facilities, 
the extent to which this guidance applies will depend on the port 
facilities, the types of ships using the port facility, the types of 
cargo and/or passengers and the trading patterns of visiting ships.
    3.4 The provisions of chapter XI-2 and part A of this Code are 
not intended to apply to port facilities designed and used primarily 
for military purposes.


4 Responsibility of Contracting Governments


Security of Assessments and Plans


    4.1 Contracting Governments should ensure that appropriate 
measures are in place to avoid unauthorized disclosure of, or access 
to, security sensitive material relating to Ship Security 
Assessments, Ship Security Plans, Port Facility Security Assessments 
and Port Facility Security Plans, and to individual assessments or 
plans.


Designated Authorities


    4.2 Contracting Governments may identify a Designated Authority 
within Government to undertake their security duties relating to 
port facilities as set out in chapter XI-2 or part A of this Code.


Recognized Security Organizations


    4.3 Contracting Governments may authorize a Recognized Security 
Organization (RSO) to undertake certain security related activities, 
including:
    .1 Approval of Ship Security Plans, or amendments thereto, on 
behalf of the Administration;
    .2 Verification and certification of compliance of ships with 
the requirements of chapter XI-2 and part A of this Code on behalf 
of the Administration; and
    .3 Conducting Port Facility Security Assessments required by the 
Contracting Government.
    4.4 An RSO may also advise or provide assistance to Companies or 
port facilities on security matters, including Ship Security 
Assessments, Ship Security Plans, Port Facility Security Assessments 
and Port Facility Security Plans. This can include completion of a 
Ship Security Assessment or Plan or Port Facility Security 
Assessment or Plan.
    If an RSO has done so in respect of a ship security assessment 
or plan that RSO should not be authorised to approve that ship 
security plan.
    4.5 When authorizing an RSO, Contracting Governments should give 
consideration to the competency of such an organization. An RSO 
should be able to demonstrate:
    .1 Expertise in relevant aspects of security;
    .2 Appropriate knowledge of ship and port operations, including 
knowledge of ship design and construction if providing services in 
respect of ships and port design and construction if providing 
services in respect of port facilities;
    .3 Their capability to assess the likely security risks that 
could occur during ship and port facility operations including the 
ship/port interface and how to minimise such risks;
    .4 Their ability to maintain and improve the expertise of their 
personnel;
    .5 Their ability to monitor the continuing trustworthiness of 
their personnel;
    .6 Their ability to maintain appropriate measures to avoid 
unauthorised disclosure of, or access to, security sensitive 
material;
    .7 Their knowledge of the requirements chapter XI-2 and part A 
of this Code and relevant national and international legislation and 
security requirements; and
    .8 Their knowledge of current security threats and patterns;
    .9 Their knowledge on recognition and detection of weapons, 
dangerous substances and devices;
    .10 Their knowledge on recognition, on a non-discriminatory 
basis, of characteristics and behavioural patterns of persons who 
are likely to threaten security;
    .11 Their knowledge on techniques used to circumvent security 
measures; and
    .12 Their knowledge of security and surveillance equipment and 
systems and their operational limitations.
    When delegating specific duties to an RSO, Contracting 
Governments, including Administrations, should ensure that the RSO 
has the competencies needed to undertake the task.
    4.6 A Recognized Organization, as defined in regulation I/6 and 
fulfilling the requirements of regulation XI-1/1, may be appointed 
as a RSO provided it has the appropriate security related expertise 
listed in paragraph 4.5.
    4.7 A Port or Harbour Authority or Port Facility operator may be 
appointed as an RSO provided it has the appropriate security related 
expertise listed in paragraph 4.5.


Setting the Security Level


    4.8 In setting the security level Contracting Governments should 
take account of general and specific threat information. Contracting 
Governments should set the security level applying to ships or port 
facilities at one of three levels:


--Security level 1: normal, the level at which the ship or port 
facility normally operates;
--Security level 2: heightened, the level applying for as long as 
there is a heightened risk of a security incident; and
--Security level 3: exceptional, the level applying for the period 
of time when there is the probable or imminent risk of a security 
incident.


    4.9 Setting security level 3 should be an exceptional measure 
applying only when there is credible information that a security 
incident is probable or imminent.
    Security level 3 should only be set for the duration of the 
identified security threat or actual security incident.
    While the security levels may change from security level 1, 
through security level 2 to security level 3, it is also possible 
that the security levels will change directly from security level 1 
to security level 3.
    4.10 At all times the Master of a ship has the ultimate 
responsibility for the safety of the ship. Even at security level 3 
a Master may seek clarification or amendment of instructions issued 
by those responding to a security incident, or threat thereof, if 
there are reasons to believe that compliance with any instruction 
may imperil the safety of the ship.
    4.11 The Company Security Officer (CSO) or the Ship Security 
Officer (SSO) should liase at the earliest opportunity with the Port 
Facility Security Officer (PFSO) of the port facility the ship is 
intended to visit to establish the security level applying for that 
ship at the port facility. Having established contact with a ship, 
the PFSO should advise the ship of any subsequent change in the port


[[Page 79766]]


facility's security level and should provide the ship with any 
relevant security information.
    4.12 While there may be circumstances when an individual ship 
may be operating at a higher security level than the port facility 
it is visiting, there will be no circumstances when a ship can have 
a lower security level than the port facility it is visiting. If a 
ship has a higher security level than the port facility it intends 
to use, the CSO or SSO should advise the PFSO without delay. The 
PFSO should undertake an assessment of the particular situation in 
consultation with the CSO or SSO and agree on appropriate security 
measures with the ship, which may include completion and signing of 
a Declaration of Security.
    4.13 Contracting Governments should consider how information on 
changes in security levels should be promulgated rapidly. 
Administrations may wish to use NAVTEX messages or Notices to 
Mariners as the method for notifying such changes in security levels 
to ship and CSO and SSO. Or, they may wish to consider other methods 
of communication that provide equivalent or better speed and 
coverage. Contracting Governments should establish means of 
notifying PFSOs of changes in security levels.
    Contracting Governments should compile and maintain the contact 
details for a list of those who need to be informed of changes in 
security levels. Whereas the security level need not be regarded as 
being particularly sensitive, the underlying threat information may 
be highly sensitive. Contracting Governments should give careful 
consideration to the type and detail of the information conveyed and 
the method by which it is conveyed, to SSOs, CSOs and PFSOs.


Contact Points and Information on Port Facility Security Plans


    4.14 Where a port facility has a PFSP that fact has to be 
communicated to the Organization and that information must also be 
made available to Company and Ship Security Officers. No further 
details of the PFSP have to be published other than that it is in 
place. Contracting Governments should consider establishing either 
central or regional points of contact, or other means of providing 
up to date information on the locations where PFSPs are in place, 
together with contact details for the relevant PFSO. The existence 
of such contact points should be publicised. They could also provide 
information on the recognized security organizations appointed to 
act on behalf of the Contracting Government, together with details 
of the specific responsibility and conditions of authority delegated 
to such recognised security organizations.
    4.15 In the case of a port that does not have a PFSP (and 
therefore does not have a PFSO) the central or regional point of 
contact should be able to identify a suitably qualified person 
ashore who can arrange for appropriate security measures to be in 
place, if needed, for the duration of the ship's visit.
    4.16 Contracting Governments should also provide the contact 
details of Government officers to whom an SSO, a CSO and a PFSO can 
report security concerns.
    These Government officers should assess such reports before 
taking appropriate action. Such reported concerns may have a bearing 
on the security measures falling under the jurisdiction of another 
Contracting Government. In that case, the Contracting Governments 
should consider contacting their counterpart in the other 
Contracting Government to discuss whether remedial action is 
appropriate. For this purpose, the contact details of the Government 
officers should be communicated to the International Maritime 
Organization.
    4.17 Contracting Governments should also make the information 
indicated in paragraphs 4.14 to 4.16, available to other Contracting 
Governments on request.


Identification Documents


    4.18 Contracting Governments are encouraged to issue appropriate 
identification documents to Government officials entitled to board 
ships or enter port facilities when performing their official duties 
and to establish procedures whereby the authenticity of such 
documents might be verified.


Fixed and Floating Platforms and Mobile Drilling Units on Location


    4.19 Contracting Governments should consider establishing 
appropriate security measures for fixed and floating platforms and 
mobile offshore drilling units on location to allow interaction with 
ships which are required to comply with the provisions of chapter 
XI-2 and part A of this Code \1\.
---------------------------------------------------------------------------


    \1\ Refer to Establishment of Appropriate Measures to Enhance 
the Security of Ships, Port Facilities, Mobile Offshore Drilling 
Units on location and Fixed and Floating Platforms Not Covered by 
chapter XI-2 of 1974 SOLAS Convention, adopted by the Conference on 
Maritime Security by resolution 7.
---------------------------------------------------------------------------


Ships Which Are Not Required To Comply With Part A of This Code


    4.20 Contracting Governments should consider establishing 
appropriate security measures to enhance the security of ships to 
which this chapter XI-2 and part A of this Code does not apply and 
to ensure that any security provisions applying to such ships allow 
interaction with ships to which part A of this Code applies.


Threats to Ships and Other Incidents at Sea


    4.21 Contracting Governments should provide general guidance on 
the measures considered appropriate to reduce the security risk to 
ships flying their flag when at sea. They should provide specific 
advice on the action to be taken in accordance with security levels 
1 to 3, if:
    .1 There is a change in the security level applying to the ship 
while it is at sea, e.g. because of the geographical area in which 
it is operating or relating to the ship itself; and
    .2 There is a security incident or threat thereof involving the 
ship while at sea.
    Contracting Governments should establish the best methods and 
procedures for these purposes. In the case of an imminent attack the 
ship should seek to establish direct communication with those 
responsible in the flag State for responding to security incidents.
    4.22 Contracting Governments should also establish a point of 
contact for advice on security for any ship:
    .1 Entitled to fly their flag; or
    .2 Operating in their territorial sea or having communicated an 
intention to enter their territorial sea.
    4.23 Contracting Governments should offer advice to ships 
operating in their territorial sea or having communicated an 
intention to enter their territorial sea, which could include 
advice:
    .1 To alter or delay their intended passage;
    .2 To navigate on a particular course or proceed to a specific 
location;
    .3 On the availability of any personnel or equipment that could 
be placed on the ship;
    .4 To co-ordinate the passage, arrival into port or departure 
from port, to allow escort by patrol craft or aircraft (fixed-wing 
or helicopter).
    Contracting Governments should remind ships operating in their 
territorial sea, or having communicated an intention to enter their 
territorial sea, of any temporary restricted areas that they have 
published.
    4.24 Contracting Governments should recommend that ships 
operating in their territorial sea, or having communicated an 
intention to enter their territorial sea, implement expeditiously, 
for the ship's protection and for the protection of other ships in 
the vicinity, any security measure the Contracting Government may 
have advised.
    4.25 The plans prepared by the Contracting Governments for the 
purposes given in paragraph 4.22 should include information on an 
appropriate point of contact, available on a 24-hour basis, within 
the Contracting Government including the Administration. These plans 
should also include information on the circumstances in which the 
Administration considers assistance should be sought from nearby 
coastal States, and a procedure for liaison between port facility 
security officers and ship security officers.


Alternative Security Agreements


    4.26 Contracting Governments, in considering how to implement 
chapter XI-2 and part A of this Code, may conclude one or more 
agreements with one or more Contracting Governments. The scope of an 
agreement is limited to short international voyages on fixed routes 
between port facilities in the territory of the parties to the 
agreement.
    When concluding an agreement, and thereafter, the Contracting 
Governments should consult other Contracting Governments and 
Administrations with an interest in the effects of the agreement. 
Ships flying the flag of a State that is not party to the agreement 
should only be allowed to operate on the fixed routes covered by the 
agreement if their Administration agrees that the ship should comply 
with the provisions of the agreement and requires the ship to do so.
    In no case can such an agreement compromise the level of 
security of other ships and port facilities not covered by it, and 
specifically, all ships covered by such an agreement may not conduct 
ship-to-ship


[[Page 79767]]


activities with ships not so covered. Any operational interface 
undertaken by ships covered by the agreement should be covered by 
it.
    The operation of each agreement must be continually monitored 
and amended when the need arises and in any event should be reviewed 
every 5 years.


Equivalent Arrangements for Port Facilities


    4.27 For certain specific port facilities with limited or 
special operations but with more than occasional traffic, it may be 
appropriate to ensure compliance by security measures equivalent to 
those prescribed in chapter XI-2 and in part A of this Code. This 
can, in particular, be the case for terminals such as those attached 
to factories, or quaysides with no frequent operations.''


Manning Level


    4.28 In establishing the minimum safe manning of a ship the 
Administration should take into account \2\ that the minimum safe 
manning provisions established by regulation V/14 \3\ only address 
the safe navigation of the ship. The Administration should also take 
into account any additional workload which may result from the 
implementation of the ship's security plan and ensure that the ship 
is sufficiently and effectively manned. In doing so the 
Administration should verify that ships are able to implement the 
hours of rest and other measures to address fatigue which have been 
promulgated by national law, in the context of all shipboard duties 
assigned to the various shipboard personnel.
---------------------------------------------------------------------------


    \2\ Refer to Further Work by the International Maritime 
Organisation pertaining to Enhancement of Maritime Security, adopted 
by the Conference on Maritime Security by resolution 3, inviting, 
amongst others, the Organisation to review Assembly Resolution 
A.890(21) on Principles of Safe Manning. This review may also lead 
to amendments of regulation V/14.
    \3\ As was in force on the date of adoption of this Code.
---------------------------------------------------------------------------


Control and Compliance Measures \4\
---------------------------------------------------------------------------


    \4\ Refer to Further Work by the International Maritime 
Organisation pertaining to Enhancement of Maritime Security, adopted 
by the Conference on Maritime Security by resolution 3, inviting, 
amongst others, the Organisation to review Assembly Resolutions 
A.787(19) and A.822(21).
---------------------------------------------------------------------------


General


    4.29 Regulation XI-2/9 describes the control and compliance 
measures applicable to ships under chapter XI-2. It is divided into 
three distinct sections; control of ships already in a port, control 
of ships intending to enter a port of another Contracting 
Government, and additional provisions applicable to both situations.
    4.30 Regulation XI-2/9.1, control of ships in port, implements a 
system for the control of ships while in the port of a foreign 
country where duly authorised officers of the Contracting Government 
(duly authorized officers) have the right to go on board the ship to 
verify that the required certificates are in proper order. Then if 
there are clear grounds to believe the ship does not comply, control 
measures such as additional inspections or detention may be taken. 
This reflects current control systems.\5\
---------------------------------------------------------------------------


    \5\ See regulation I/19 and regulation IX/6.2 of SOLAS 74 as 
amended, article 21 of LOADLINE 66 as modified by the 1988 LOADLINE 
Protocol, articles 5 and 6, regulation 8A of Annex I, regulation 15 
of Annex II of MARPOL 73/78 as amended, article X of STCW 78 as 
amended and IMO Assembly Resolutions A.787(19) and A.882(21).
---------------------------------------------------------------------------


    Regulation XI-2/9.1 builds on such systems and allows for 
additional measures (including expulsion of a ship from a port to be 
taken as a control measure) when duly authorized officers have clear 
grounds for believing that a ship is in non-compliance with the 
requirements of chapter XI-2 or part A of this Code. Regulation XI-
2/9.3 describes the safeguards that promote fair and proportionate 
implementation of these additional measures.
    4.31 Regulation XI-2/9.2 applies control measures to ensure 
compliance to ships intending to enter a port of another Contracting 
Government and introduces an entirely different concept of control 
within chapter XI-2, applying to security only. Under this 
regulation measures may be implemented prior to the ship entering 
port, to better ensure security. Just as in regulation XI-2/9.1, 
this additional control system is based on the concept of clear 
grounds for believing the ship does not comply with chapter XI-2 or 
part A of this Code, and includes significant safeguards in 
regulations XI-2/9.2.2 and XI-2/9.2.5 as well as in regulation XI-2/
9.3.
    4.32 Clear grounds that the ship is not in compliance means 
evidence or reliable information that the ship does not correspond 
with the requirements of chapter XI-2 or part A of this Code, taking 
into account the guidance given in this part of the Code. Such 
evidence or reliable information may arise from the duly authorized 
officer's professional judgement or observations gained while 
verifying the ship's International Ship Security Certificate or 
Interim International Ship Security Certificate issued in accordance 
with part A of this Code (certificate) or from other sources. Even 
if a valid certificate is on board the ship, the duly authorized 
officers may still have clear grounds for believing that the ship is 
not in compliance based on their professional judgment.
    4.33 Examples of possible clear grounds under regulations XI-2/
9.1 and XI-2/9.2 may include, when relevant:
    .1 Evidence from a review of the certificate that it is not 
valid or it has expired;
    .2 Evidence or reliable information that serious deficiencies 
exist in the security equipment, documentation or arrangements 
required by chapter XI-2 and part A of this Code;
    .3 Receipt of a report or complaint which, in the professional 
judgment of the duly authorized officer, contains reliable 
information clearly indicating that the ship does not comply with 
the requirements of chapter XI-2 or part A of this Code;
    .4 Evidence or observation gained by a duly authorized officer 
using professional judgment that the master or ship's personnel is 
not familiar with essential shipboard security procedures or cannot 
carry out drills related to the security of the ship or that such 
procedures or drills have not been carried out;
    .5 Evidence or observation gained by a duly authorized officer 
using professional judgment that key members ship's personnel are 
not able to establish proper communication with any other key 
members of ship's personnel with security responsibilities on board 
the ship;
    .6 Evidence or reliable information that the ship has embarked 
persons, or loaded stores or goods at a port facility or from 
another ship where either the port facility or the other ship is in 
violation of chapter XI-2 or part A of this Code, and the ship in 
question has not completed a Declaration of Security, nor taken 
appropriate, special or additional security measures or has not 
maintained appropriate ship security procedures;
    .7 Evidence or reliable information that the ship has embarked 
persons, or loaded stores or goods at a port facility or from 
another source (e.g., another ship or helicopter transfer) where 
either the port facility or the other source is not required to 
comply with chapter XI-2 or part A of this Code, and the ship has 
not taken appropriate, special or additional security measures or 
has not maintained appropriate security procedures; and
    .8 If the ship holds a subsequent, consecutively issued Interim 
International Ship Security Certificate as described in section A/
19.4, and if, in the professional judgment of an officer duly 
authorized, one of the purposes of the ship or a Company in 
requesting such certificate is to avoid full compliance with chapter 
XI-2 and part A of this Code beyond the period of the initial 
interim certificate as described in section A/19.4.4.
    4.34 The international law implications of regulation XI-2/9 are 
particularly relevant, and the regulation should be implemented with 
regulation XI-2/2.4 in mind, as the potential exists for situations 
where either measures will be taken which fall outside the scope of 
chapter XI-2, or where rights of affected ships, outside chapter XI-
2, should be considered. Thus, regulation XI-2/9 does not prejudice 
the Contracting Government from taking measures having a basis in, 
and consistent with, international law, to ensure the safety or 
security of people, ships, port facilities and other property in 
cases where the ship, although in compliance with chapter XI-2 and 
part A of this Code, is still considered to present a security risk.
    4.35 When a Contracting Government imposes control measures on a 
ship, the Administration should, without delay, be contacted with 
sufficient information to enable the Administration to fully liaise 
with the Contracting Government.


Control of Ships in Port


    4.36 Where the non-compliance is either a defective item of 
equipment or faulty documentation leading to the ship's detention 
and the non-compliance cannot be remedied in the port of inspection, 
the Contracting Government may allow the ship to sail to another 
port provided that any conditions agreed between the port States and 
the Administration or master are met.


[[Page 79768]]


Ships Intending To Enter the Port of Another Contracting Government


    4.37 Regulation XI-2/9.2.1 lists the information Contracting 
Governments may require from a ship as a condition of entry into 
port. One item of information listed is confirmation of any special 
or additional measures taken by the ship during its last ten calls 
at a port facility. Examples could include:
    .1 Records of the measures taken while visiting a port facility 
located in the territory of a State which is not a Contracting 
Government especially those measures that would normally have been 
provided by port facilities located in the territories of 
Contracting Governments; and
    .2 Any Declarations of Security that were entered into with port 
facilities or other ships.
    4.38 Another item of information listed, that may be required as 
a condition of entry into port, is confirmation that appropriate 
ship security procedures were maintained during ship-to-ship 
activity conducted within the period of the last 10 calls at a port 
facility. It would not normally be required to include records of 
transfers of pilots, customs, immigration, security officials nor 
bunkering, lightering, loading of supplies and unloading of waste by 
ship within port facilities as these would normally fall within the 
auspices of the Port Facility Security Plan. Examples of information 
that might be given include:
    .1 Records of the measures taken while engaged in a ship to ship 
activity with a ship flying the flag of a State which is not a 
Contracting Government especially those measures that would normally 
have been provided by ships flying the flag of Contracting 
Governments;
    .2 Records of the measures taken while engaged in a ship to ship 
activity with a ship that is flying the flag of a Contracting 
Government but is not required to comply with the provisions of 
chapter XI-2 and part A of this Code such as a copy of any security 
certificate issued to that ship under other provisions; and
    .3 In the event that persons or goods rescued at sea are on 
board, all known information about such persons or goods, including 
their identities when known and the results of any checks run on 
behalf of the ship to establish the security status of those 
rescued. It is not the intention of chapter XI-2 or part A of this 
Code to delay or prevent the delivery of those in distress at sea to 
a place of safety. It is the sole intention of chapter XI-2 and part 
A of this Code to provide States with enough appropriate information 
to maintain their security integrity.
    4.39 Examples of other practical security related information 
that may be required as a condition of entry into port in order to 
assist with ensuring the safety and security of persons, port 
facilities, ships and other property include:
    .1 Information contained in the Continuous Synopsis Record;
    .2 Location of the ship at the time the report is made;
    .3 Expected time of arrival of the ship in port;
    .4 Crew list;
    .5 General description of cargo aboard the ship;
    .6 Passenger list; and
    .7 Information required to be carried under regulation XI-2/10.
    4.40 Regulation XI-2/9.2.5 allows the master of a ship, upon 
being informed that the coastal or port State will implement control 
measures under regulation XI-2/9.2, to withdraw the intention for 
the ship to enter port. If the master withdraws that intention, 
regulation XI-2/9 no longer applies, and any other steps that are 
taken must be based on, and consistent with, international law.


Additional Provisions


    4.41 In all cases where a ship is denied entry or expelled from 
a port, all known facts should be communicated to the authorities of 
relevant States. This communication should consist of the following 
when known:
    .1 Name of ship, its flag, the ship's identification number, 
call sign, ship type and cargo;
    .2 Reason for denying entry or expulsion from port or port 
areas;
    .3 If relevant, the nature of any security non-compliance;
    .4 If relevant, details of any attempts made to rectify any non-
compliance, including any conditions imposed on the ship for the 
voyage;
    .5 Past port(s) of call and next declared port of call;
    .6 Time of departure and likely estimated time of arrival at 
those ports;
    .7 Any instructions given to ship, e.g., reporting on route;
    .8 Available information on the security level at which the ship 
is currently operating;
    .9 Information regarding any communications the port State has 
had with the Administration;
    .10 Contact point within the port State making the report for 
the purpose of obtaining further information;
    .11 Crew list; and
    .12 Any other relevant information.
    4.42 Relevant States to contact should include those along the 
ship's intended passage to its next port, particularly if the ship 
intends to enter the territorial sea of that coastal State. Other 
relevant States could include previous ports of call, so that 
further information might be obtained and security issues relating 
to the previous ports resolved.
    4.43 In exercising control and compliance measures, the duly 
authorized officers should ensure that any measures or steps imposed 
are proportionate. Such measures or steps should be reasonable and 
of the minimum severity and duration necessary to rectify or 
mitigate the non-compliance.
    4.44 The word ``delay'' in regulation XI-2/9.3.3.1 also refers 
to situations where, pursuant to actions taken under this 
regulation, the ship is unduly denied entry into port or the ship is 
unduly expelled from port.


Non-Party Ships and Ships Below Convention Size


    4.45 With respect to ships flying the flag of a State which is 
not a Contracting Government to the Convention and not a Party to 
the 1988 SOLAS Protocol \6\, Contracting Governments should not give 
more favourable treatment to such ships. Accordingly, the 
requirements of regulation XI-2/9 and the guidance provided in this 
Part of the Code should be applied to those ships.
---------------------------------------------------------------------------


    \6\ Protocol of 1988 relating to the International Convention 
for the Safety of Life at Sea, 1974.
---------------------------------------------------------------------------


    4.46 Ships below Convention size are subject to measures by 
which States maintain security. Such measures should be taken with 
due regard to the requirements in chapter XI-2 and the guidance 
provided in this Part of the Code.


5 Declaration of Security


General


    5.1 A Declaration of Security (DoS) should be completed when the 
Contracting Government of the port facility deems it to be necessary 
or when a ship deems it necessary.
    5.1.1 The need for a DoS may be indicated by the results of the 
Port Facility Security Assessment (PFSA) and the reasons and 
circumstances in which a DoS is required should be set out in the 
Port Facility Security Plan (PFSP).
    5.1.2 The need for a DoS may be indicated by an Administration 
for ships entitled to fly its flag or as a result of a ship security 
assessment and should be set out in the ship security plan.
    5.2 It is likely that a DoS will be requested at higher security 
levels, when a ship has a higher security level than the port 
facility, or another ship with which it interfaces, and for ship/
port interface or ship to ship activities that pose a higher risk to 
persons, property or the environment for reasons specific to that 
ship, including its cargo or passengers or the circumstances at the 
port facility or a combination of these factors.
    5.2.1 In the case that a ship or an Administration, on behalf of 
ships entitled to fly its flag, requests completion of a DoS, the 
Port Facility Security Officer (PFSO) or Ship Security Officer (SSO) 
should acknowledge the request and discuss appropriate security 
measures.
    5.3 A PFSO may also initiate a DoS prior to ship/port interfaces 
that are identified in the approved PFSA as being of particular 
concern. Examples may include the embarking or disembarking 
passengers, and the transfer, loading or unloading of dangerous 
goods or hazardous substances.
    The PFSA may also identify facilities at or near highly 
populated areas or economically significant operations that warrant 
a DoS.
    5.4 The main purpose of a DoS is to ensure agreement is reached 
between the ship and the port facility or with other ships with 
which it interfaces as to the respective security measures each will 
undertake in accordance with the provisions of their respective 
approved security plans.
    5.4.1 The agreed DoS should be signed and dated by both the port 
facility and the ship(s), as applicable, to indicate compliance with 
chapter XI-2 and part A of this Code and should include its 
duration, the relevant security level, or levels and the contact 
points.


[[Page 79769]]


    5.4.2 A change in the security level may require that a new or 
revised DoS be completed.
    5.5 The DoS should be completed in English, French or Spanish or 
in a language common to both the port facility and the ship or the 
ships, as applicable.
    5.6 A model DoS is included in Appendix 1 to this part of the 
Code.


6 Obligations of the Company


    6.1 Regulation XI-2/5 requires the company to provide the master 
of the ship with information to meet the requirements of the Company 
under the provisions of this regulation. This information should 
include items such as:
    .1 Parties responsible for appointing shipboard personnel, such 
as ship management companies, manning agents, contractors, 
concessionaries, for example, retail sales outlets, casinos etc;
    .2 Parties responsible for deciding the employment of the ship 
including, time or bareboat charterer(s) or any other entity acting 
in such capacity; and
    .3 In cases when the ship is employed under the terms of a 
charter party, the contact details of those parties including time 
or voyage charterers
    6.2 In accordance with regulation XI-2/5 the Company is obliged 
to update and keep this information current as and when changes 
occur.
    6.3 This information should be in English, French or Spanish 
language.
    6.4 With respect to ships constructed before July 1, 2004, this 
information should reflect the actual condition on that date.
    6.5 With respect to ships constructed on or after July 1, 2004, 
and for ships constructed before July 1, 2004, which were out of 
service on July 1, 2004, the information should be provided as from 
the date of entry of the ship into service and should reflect the 
actual condition on that date.
    6.6 After July 1, 2004, when a ship is withdrawn from service 
the information should be provided as from the date of re-entry of 
the ship into service and should reflect the actual condition on 
that date.
    6.7 Previously provided information that does not relate to the 
actual condition on that date need not be retained on board.
    6.8 When the responsibility for the operation of the ship is 
assumed by another Company, the information relating to the Company, 
which operated the ship, are not required to be left on board.
    In addition other relevant guidance is provided under sections 
8, 9 and 13.


7 Ship Security


    Relevant guidance is provided under sections 8, 9 and 13.


8 Ship Security Assessment


Security Assessment


    8.1 The Company Security Officer (CSO) is responsible for 
ensuring that a Ship Security Assessment (SSA) is carried out for 
each of the ships in the Company's fleet which is required to comply 
with the provisions of chapter XI-2 and part A of this Code for 
which the CSO is responsible. While the CSO need not necessarily 
personally undertake all the duties associated with the post, the 
ultimate responsibility for ensuring that they are properly 
performed remains with the individual CSO.
    8.2 Prior to commencing the SSA, the CSO should ensure that 
advantage is taken of information available on the assessment of 
threat for the ports at which the ship will call or at which 
passengers embark or disembark and about the port facilities and 
their protective measures. The CSO should study previous reports on 
similar security needs.
    Where feasible, the CSO should meet with appropriate persons on 
the ship and in the port facilities to discuss the purpose and 
methodology of the assessment.
    The CSO should follow any specific guidance offered by the 
Contracting Governments.
    8.3 A SSA should address the following elements on board or 
within the ship:
    .1 Physical security;
    .2 Structural integrity;
    .3 Personnel protection systems;
    .4 Procedural policies;
    .5 Radio and telecommunication systems, including computer 
systems and networks;
    .6 Other areas that may, if damaged or used for illicit 
observation, pose a risk to people, property, or operations on board 
the ship or within a port facility.
    8.4 Those involved in a SSA should be able to draw upon expert 
assistance in relation to:
    .1 Knowledge of current security threats and patterns;
    .2 Recognition and detection of weapons, dangerous substances 
and devices;
    .3 Recognition, on a non-discriminatory basis, of 
characteristics and behavioural patterns of persons who are likely 
to threaten security;
    .4 Techniques used to circumvent security measures;
    .5 Methods used to cause a security incident;
    .6 Effects of explosives on ship's structures and equipment;
    .7 Ship security;
    .8 Ship/port interface business practices;
    .9 Contingency planning, emergency preparedness and response;
    .10 Physical security;
    .11 Radio and telecommunications systems, including computer 
systems and networks;
    .12 Marine engineering; and
    .13 Ship and port operations.
    8.5 The CSO should obtain and record the information required to 
conduct an assessment, including:
    .1 The general layout of the ship;
    .2 The location of areas which should have restricted access, 
such as navigation bridge, machinery spaces of category A and other 
control stations as defined in chapter II-2, etc.;
    .3 The location and function of each actual or potential access 
point to the ship;
    .4 Changes in the tide which may have an impact on the 
vulnerability or security of the ship;
    .5 The cargo spaces and stowage arrangements;
    .6 The locations where the ship's stores and essential 
maintenance equipment is stored;
    .7 The locations where unaccompanied baggage is stored;
    .8 The emergency and stand-by equipment available to maintain 
essential services;
    .9 The number of ship's personnel, any existing security duties 
and any existing training requirement practises of the Company;
    .10 Existing security and safety equipment for the protection of 
passengers and ship's personnel;
    .11 Escape and evacuation routes and assembly stations which 
have to be maintained to ensure the orderly and safe emergency 
evacuation of the ship;
    .12 Existing agreements with private security companies 
providing ship/waterside security services; and
    .13 Existing security measures and procedures in effect, 
including inspection and, control procedures, identification 
systems, surveillance and monitoring equipment, personnel 
identification documents and communication, alarms, lighting, access 
control and other appropriate systems.
    8.6 The SSA should examine each identified point of access, 
including open weather decks, and evaluate its potential for use by 
individuals who might seek to breach security. This includes points 
of access available to individuals having legitimate access as well 
as those who seek to obtain unauthorized entry.
    8.7 The SSA should consider the continuing relevance of the 
existing security measures and guidance, procedures and operations, 
under both routine and emergency conditions and should determine 
security guidance including:
    .1 The restricted areas;
    .2 The response procedures to fire or other emergency 
conditions;
    .3 The level of supervision of the ship's personnel, passengers, 
visitors, vendors, repair technicians, dock workers, etc.;
    .4 The frequency and effectiveness of security patrols;
    .5 The access control systems, including identification systems;
    .6 The security communications systems and procedures;
    .7 The security doors, barriers and lighting; and
    .8 The security and surveillance equipment and systems, if any.
    8.8 The SSA should consider the persons, activities, services 
and operations that it is important to protect. This includes:
    .1 The ship's personnel;
    .2 Passengers, visitors, vendors, repair technicians, port 
facility personnel, etc;
    .3 The capacity to maintain safe navigation and emergency 
response;
    .4 The cargo, particularly dangerous goods or hazardous 
substances;
    .5 The ship's stores;
    .6 The ship security communication equipment and systems, if 
any; and
    .7 The ship's security surveillance equipment and systems, if 
any.
    8.9 The SSA should consider all possible threats, which may 
include the following types of security incidents:


[[Page 79770]]


    .1 Damage to, or destruction of, the ship or of a port facility, 
e.g. by explosive devices, arson, sabotage or vandalism;
    .2 Hijacking or seizure of the ship or of persons on board;
    .3 Tampering with cargo, essential ship equipment or systems or 
ship's stores;
    .4 Unauthorized access or use, including presence of stowaways;
    .5 Smuggling weapons or equipment, including weapons of mass 
destruction;
    .6 Use of the ship to carry those intending to cause a security 
incident and/or their equipment;
    .7 Use of the ship itself as a weapon or as a means to cause 
damage or destruction;
    .8 Attacks from seaward whilst at berth or at anchor; and
    .9 Attacks whilst at sea.
    8.10 The SSA should take into account all possible 
vulnerabilities, which may include:
    .1 Conflicts between safety and security measures;
    .2 Conflicts between shipboard duties and security assignments;
    .3 Watch-keeping duties, number of ship's personnel, 
particularly with implications on crew fatigue, alertness and 
performance;
    .4 Any identified security training deficiencies; and
    .5 Any security equipment and systems, including communication 
systems.
    8.11 The CSO and SSO should always have regard to the effect 
that security measures may have on ship's personnel who will remain 
on the ship for long periods. When developing security measures, 
particular consideration should be given to the convenience, comfort 
and personal privacy of the ship's personnel and their ability to 
maintain their effectiveness over long periods.
    8.12 Upon completion of the SSA, a report shall be prepared, 
consisting of a summary of how the assessment was conducted, a 
description of each vulnerability found during the assessment and a 
description of counter measures that could be used to address each 
vulnerability. The report shall be protected from unauthorized 
access or disclosure.
    8.13 If the SSA has not been carried out by the Company the 
report of the SSA should be reviewed and accepted by the CSO.


On-scene Security Survey


    8.14 The on-scene security survey is an integral part of any 
SSA. The on-scene security survey should examine and evaluate 
existing shipboard protective measures, procedures and operations 
for:
    .1 Ensuring the performance of all ship security duties;
    .2 Monitoring restricted areas to ensure that only authorized 
persons have access;
    .3 Controlling access to the ship, including any identification 
systems;
    .4 Monitoring of deck areas and areas surrounding the ship;
    .5 Controlling the embarkation of persons and their effects 
(accompanied and unaccompanied baggage and ship's personnel personal 
effects);
    .6 Supervising the handling of cargo and the delivery of ship's 
stores; and
    .7 Ensuring that ship security communication, information, and 
equipment are readily available.


9 Ship Security Plan


General


    9.1 The Company Security Officer (CSO) has the responsibility of 
ensuring that a Ship Security Plan (SSP) is prepared and submitted 
for approval. The content of each individual SSP should vary 
depending on the particular ship it covers. The Ship Security 
Assessment (SSA) will have identified the particular features of the 
ship and the potential threats and vulnerabilities. The preparation 
of the SSP will require these features to be addressed in detail. 
Administrations may prepare advice on the preparation and content of 
a SSP.
    9.2 All SSPs should:
    .1 Detail the organizational structure of security for the ship;
    .2 Detail the ship's relationships with the Company, port 
facilities, other ships and relevant authorities with security 
responsibility;
    .3 Detail the communication systems to allow effective 
continuous communication within the ship and between the ship and 
others, including port facilities;
    .4 Detail the basic security measures for security level 1, both 
operational and physical, that will always be in place;
    .5 Detail the additional security measures that will allow the 
ship to progress without delay to security level 2 and, when 
necessary, to security level 3;
    .6 Provide for regular review, or audit, of the SSP and for its 
amendment in response to experience or changing circumstances; and
    .7 Reporting procedures to the appropriate Contracting 
Governments contact points.
    9.3 Preparation of an effective SSP should rest on a thorough 
assessment of all issues that relate to the security of the ship, 
including, in particular, a thorough appreciation of the physical 
and operational characteristics, including the voyage pattern, of 
the individual ship.
    9.4 All SSPs should be approved by, or on behalf of, the 
Administration. If an Administration uses a Recognised Security 
Organisation (RSO) to review or approve the SSP the RSO should not 
be associated with any other RSO that prepared, or assisted in the 
preparation of, the plan.
    9.5 CSOs and Ship Security Officers (SSOs) should develop 
procedures to:
    .1 Assess the continuing effectiveness of the SSP; and
    .2 Prepare amendments of the plan subsequent to its approval.
    9.6 The security measures included in the SSP should be in place 
when the initial verification for compliance with the requirements 
of chapter XI-2 and Part A of this Code will be carried out. 
Otherwise the process of issue to the ship of the required 
International Ship Security Certificate cannot be carried out.
    If there is any subsequent failure of security equipment or 
systems, or suspension of a security measure for whatever reason, 
equivalent temporary security measures should be adopted, notified 
to, and agreed by, the Administration.


Organization and Performance of Ship Security Duties


    9.7 In addition to the guidance given in section 9.2, the SSP 
should establish the following which relate to all security levels:
    .1 The duties and responsibilities of all shipboard personnel 
with a security role;
    .2 The procedures or safeguards necessary to allow such 
continuous communications to be maintained at all times;
    .3 The procedures needed to assess the continuing effectiveness 
of security procedures and any security and surveillance equipment 
and systems, including procedures for identifying and responding to 
equipment or systems failure or malfunction;
    .4 The procedures and practices to protect security sensitive 
information held in paper or electronic format;
    .5 The type and maintenance requirements, of security and 
surveillance equipment and systems, if any;
    .6 The procedures to ensure the timely submission, and 
assessment, of reports relating to possible breaches of security or 
security concerns; and
    .7 Procedures to establish, maintain and up-date an inventory of 
any dangerous goods or hazardous substances carried on board, 
including their location.
    9.8 The remainder of this section addresses specifically the 
security measures that could be taken at each security level 
covering:
    .1 Access to the Ship by ship's personnel, passengers, visitors, 
etc;
    .2 Restricted Areas on the Ship;
    .3 Handling of Cargo;
    .4 Delivery of Ship's Stores;
    .5 Handling Unaccompanied Baggage; and
    .6 Monitoring the Security of the Ship.


Access to the Ship


    9.9 The SSP should establish the security measures covering all 
means of access to the ship identified in the SSA. This should 
include any:
    .1 Access ladders;
    .2 Access gangways;
    .3 Access ramps;
    .4 Access doors, side scuttles, windows and ports;
    .5 Mooring lines and anchor chains; and
    .6 Cranes and hoisting gear.
    9.10 For each of these the SSP should identify the appropriate 
locations where access restrictions or prohibitions should be 
applied for each of the security levels. For each security level the 
SSP should establish the type of restriction or prohibition to be 
applied and the means of enforcing them.
    9.11 The SSP should establish for each security level the means 
of identification required to allow access to the ship and for 
individuals to remain on the ship without challenge, this may 
involve developing an appropriate identification system allowing for 
permanent and temporary identifications, for ship's personnel and 
visitors respectively.
    Any ship identification system should, when it is practicable to 
do so, be co-ordinated with that applying to the port facility.
    Passengers should be able to prove their identity by boarding 
passes, tickets, etc., but


[[Page 79771]]


should not be permitted access to restricted areas unless 
supervised.
    The SSP should establish provisions to ensure that the 
identification systems are regularly updated, and that abuse of 
procedures should be subject to disciplinary action.
    9.12 Those unwilling or unable to establish their identity and/
or to confirm the purpose of their visit when requested to do so 
should be denied access to the ship and their attempt to obtain 
access should be reported, as appropriate, to the SSOs, the CSOs, 
the Port Facility Security Officer (PFSO) and to the national or 
local authorities with security responsibilities.
    9.13 The SSP should establish the frequency of application of 
any access controls particularly if they are to be applied on a 
random, or occasional, basis.


Security Level 1


    9.14 At security level 1, the SSP should establish the security 
measures to control access to the ship, where the following may be 
applied:
    .1 Checking the identity of all persons seeking to board the 
ship and confirming their reasons for doing so by checking, for 
example, joining instructions, passenger tickets, boarding passes, 
work orders etc;
    .2 In liaison with the port facility the ship should ensure that 
designated secure areas are established in which inspections and 
searching of people, baggage (including carry on items), personal 
effects, vehicles and their contents can take place;
    .3 In liaison with the port facility the ship should ensure that 
vehicles destined to be loaded on board car carriers, ro-ro and 
other passenger ships are subjected to search prior to loading, in 
accordance with the frequency required in the SSP;
    .4 Segregating checked persons and their personal effects from 
unchecked persons and their personal effects;
    .5 Segregating embarking from disembarking passengers;
    .6 Identification of access points that should be secured or 
attended to prevent unauthorized access;
    .7 Securing, by locking or other means, access to unattended 
spaces adjoining areas to which passengers and visitors have access; 
and
    .8 Providing security briefings to all ship personnel on 
possible threats, the procedures for reporting suspicious persons, 
objects or activities and the need for vigilance.
    9.15 At security level 1, all those seeking to board a ship 
should be liable to search. The frequency of such searches, 
including random searches, should be specified in the approved SSP 
and should be specifically approved by the Administration. Such 
searches may best be undertaken by the port facility in close co-
operation with the ship and in close proximity to it.
    Unless there are clear security grounds for doing so, members of 
the ship's personnel should not be required to search their 
colleagues or their personal effects.
    Any such search shall be undertaken in a manner which fully 
takes into account the human rights of the individual and preserves 
their basic human dignity.


Security Level 2


    9.16 At security level 2, the SSP should establish the security 
measures to be applied to protect against a heightened risk of a 
security incident to ensure higher vigilance and tighter control, 
which may include:
    .1 Assigning additional personnel to patrol deck areas during 
silent hours to deter unauthorised access;
    .2 Limiting the number of access points to the ship, identifying 
those to be closed and the means of adequately securing them;
    .3 Deterring waterside access to the ship, including, for 
example, in liaison with the port facility, provision of boat 
patrols;
    .4 Establishing a restricted area on the shore-side of the ship, 
in close co-operation with the port facility;
    .5 Increasing the frequency and detail of searches of people, 
personal effects, and vehicles being embarked or loaded onto the 
ship;
    .6 Escorting visitors on the ship;
    .7 Providing additional specific security briefings to all ship 
personnel on any identified threats, re-emphasising the procedures 
for reporting suspicious persons, objects, or activities and the 
stressing the need for increased vigilance; and
    .8 Carrying out a full or partial search of the ship.


Security Level 3


    9.17 At security level 3, the ship should comply with the 
instructions issued by those responding to the security incident or 
threat thereof. The SSP should detail the security measures which 
could be taken by the ship, in close co-operation with those 
responding and the port facility, which may include:
    .1 Limiting access to a single, controlled, access point;
    .2 Granting access only to those responding to the security 
incident or threat thereof;
    .3 Directions of persons on board;
    .4 Suspension of embarkation or disembarkation;
    .5 Suspension of cargo handling operations, deliveries etc;
    .6 Evacuation of the ship;
    .7 Movement of the ship; and
    .8 Preparing for a full or partial search of the ship.


Restricted Areas on the Ship


    9.18 The SSP should identify the restricted areas to be 
established on the ship, specify their extent, times of application, 
the security measures to be taken to control access to them and 
those to be taken to control activities within them. The purpose of 
restricted areas are to:
    .1 Prevent unauthorised access;
    .2 Protect passengers, ship's personnel, and personnel from port 
facilities or other agencies authorised to be on board the ship;
    .3 Protect sensitive security areas within the ship; and
    .4 Protect cargo and ship's stores from tampering.
    9.19 The SSP should ensure that there are clearly established 
policies and practices to control access to all restricted areas 
them.
    9.20 The SSP should provide that all restricted areas should be 
clearly marked indicating that access to the area is restricted and 
that unauthorised presence within the area constitutes a breach of 
security.
    9.21 Restricted areas may include:
    .1 Navigation bridge, machinery spaces of category A and other 
control stations as defined in chapter II-2;
    .2 Spaces containing security and surveillance equipment and 
systems and their controls and lighting system controls;
    .3 Ventilation and air-conditioning systems and other similar 
spaces;
    .4 Spaces with access to potable water tanks, pumps, or 
manifolds;
    .5 Spaces containing dangerous goods or hazardous substances;
    .6 Spaces containing cargo pumps and their controls;
    .7 Cargo spaces and spaces containing ship's stores;
    .8 Crew accommodation; and
    .9 Any other areas as determined by the CSO, through the SSA to 
which access must be restricted to maintain the security of the 
ship.


Security Level 1


    9.22 At security level 1, the SSP should establish the security 
measures to be applied to restricted areas, which may include:
    .1 Locking or securing access points;
    .2 Using surveillance equipment to monitor the areas;
    .3 Using guards or patrols; and
    .4 Using automatic intrusion detection devices to alert the 
ship's personnel of unauthorized access.


Security Level 2


    9.23 At security level 2, the frequency and intensity of the 
monitoring of, and control of access to restricted areas should be 
increased to ensure that only authorized persons have access. The 
SSP should establish the additional security measures to be applied, 
which may include:
    .1 Establishing restricted areas adjacent to access points;
    .2 Continuously monitoring surveillance equipment; and
    .3 Dedicating additional personnel to guard and patrol 
restricted areas.


Security Level 3


    9.24 At security level 3, the ship should comply with the 
instructions issued by those responding to the security incident or 
threat thereof. The SSP should detail the security measures which 
could be taken by the ship, in close co-operations with those 
responding and the port facility, which may include:
    .1 Setting up of additional restricted areas on the ship in 
proximity to the security incident, or the believed location of the 
security threat, to which access is denied; and
    .2 Searching of restricted areas as part of a search of the 
ship.


Handling of Cargo


    9.25 The security measures relating to cargo handling should:
    .1 Prevent tampering, and
    .2 Prevent cargo that is not meant for carriage from being 
accepted and stored on board the ship.
    9.26 The security measures, some of which may have to be applied 
in liaison with the port facility, should include inventory


[[Page 79772]]


control procedures at access points to the ship. Once on board the 
ship, cargo should be capable of being identified as having been 
approved for loading onto the ship. In addition, security measures 
should be developed to ensure that cargo, once on board, is not 
tampered with.


Security Level 1


    9.27 At security level 1, the SSP should establish the security 
measures to be applied during cargo handling, which may include:
    .1 Routine checking of cargo, cargo transport units and cargo 
spaces prior to, and during, cargo handling operations;
    .2 Checks to ensure that cargo being loaded matches the cargo 
documentation;
    .3 Ensuring, in liaison with the port facility, that vehicles to 
be loaded on board car-carriers, ro-ro and passenger ships are 
subjected to search prior to loading, in accordance with the 
frequency required in the SSP; and
    .4 Checking of seals or other methods used to prevent tampering.
    9.28 Checking of cargo may be accomplished by the following 
means:
    .1 Visual and physical examination; and
    .2 Using scanning/detection equipment, mechanical devices, or 
dogs.
    9.29 When there are regular, or repeated, cargo movement the CSO 
or SSO may, in consultation with the port facility, agree 
arrangements with shippers or others responsible for such cargo 
covering off-site checking, sealing, scheduling, supporting 
documentation, etc. Such arrangements should be communicated to and 
agreed with the PFSO concerned.


Security Level 2


    9.30 At security level 2, the SSP should establish the 
additional security measures to be applied during cargo handling, 
which may include:
    .1 Detailed checking of cargo, cargo transport units and cargo 
spaces;
    .2 Intensified checks to ensure that only the intended cargo is 
loaded;
    .3 Intensified searching of vehicles to be loaded on car-
carriers, ro-ro and passenger ships; and
    .4 Increased frequency and detail in checking of seals or other 
methods used to prevent tampering.
    9.31 Detailed checking of cargo may be accomplished by the 
following means:
    .1 Increasing the frequency and detail of visual and physical 
examination;
    .2 Increasing the frequency of the use of scanning/detection 
equipment, mechanical devices, or dogs; and
    .3 Co-ordinating enhanced security measures with the shipper or 
other responsible party in accordance with an established agreement 
and procedures.


Security Level 3


    9.32 At security level 3, the ship should comply with the 
instructions issued by those responding to the security incident or 
threat thereof. The SSP should detail the security measures which 
could be taken by the ship, in close co-operation with those 
responding and the port facility, which may include:
    .1 Suspension of the loading or unloading of cargo; and
    .2 Verify the inventory of dangerous goods and hazardous 
substances carried on board, if any, and their location.


Delivery of Ship's Stores


    9.33 The security measures relating to the delivery of ship's 
stores should:
    .1 Ensure checking of ship's stores and package integrity;
    .2 Prevent ship's stores from being accepted without inspection;
    .3 Prevent tampering; and
    .4 Prevent ship's stores from being accepted unless ordered.
    9.34 For ships regularly using the port facility it may be 
appropriate to establish procedures involving the ship, its 
suppliers and the port facility covering notification and timing of 
deliveries and their documentation. There should always be some way 
of confirming that stores presented for delivery are accompanied by 
evidence that they have been ordered by the ship.


Security Level 1


    9.35 At security level 1, the SSP should establish the security 
measures to be applied during delivery of ship's stores, which may 
include:
    .1 Checking to ensure stores match the order prior to being 
loaded on board; and
    .2 Ensuring immediate secure stowage of ship's stores.


Security Level 2


    9.36 At security level 2, the SSP should establish the 
additional security measures to be applied during delivery of ship's 
stores by exercising checks prior to receiving stores on board and 
intensifying inspections.


Security Level 3


    9.37 At security level 3, the ship should comply with the 
instructions issued by those responding to the security incident or 
threat thereof. The SSP should detail the security measures which 
could be taken by the ship, in close co-operation with those 
responding and the port facility, which may include:
    .1 Subjecting ship's stores to more extensive checking;
    .2 Preparation for restriction or suspension of handling of 
ship's stores; and
    .3 Refusal to accept ship's stores on board the ship.


Handling Unaccompanied Baggage


    9.38 The SSP should establish the security measures to be 
applied to ensure that unaccompanied baggage (i.e. any baggage, 
including personal effects, which is not with the passenger or 
member of ship's personnel at the point of inspection or search) is 
identified and subjected to appropriate screening, including 
searching, before it is accepted on board the ship.
    It is not envisaged that such baggage will be subjected to 
screening by both the ship and the port facility, and in cases where 
both are suitably equipped, the responsibility for screening should 
rest with the port facility.
    Close co-operation with the port facility is essential and steps 
should be taken to ensure that unaccompanied baggage is handled 
securely after screening.


Security Level 1


    9.39 At security level 1, the SSP should establish the security 
measures to be applied when handling unaccompanied baggage to ensure 
that unaccompanied baggage is screened or searched up to and 
including 100 percent, which may include use of x-ray screening.


Security Level 2


    9.40 At security level 2, the SSP should establish the 
additional security measures to be applied when handling 
unaccompanied baggage which should include 100 percent x-ray 
screening of all unaccompanied baggage.


Security Level 3


    9.41 At security level 3, the ship should comply with the 
instructions issued by those responding to the security incident or 
threat thereof. The SSP should detail the security measures which 
could be taken by the ship, in close co-operation with those 
responding and the port facility, which may include:
    .1 Subjecting such baggage to more extensive screening, for 
example x-raying it from at least two different angles;
    .2 Preparation for restriction or suspension of handling of 
unaccompanied baggage; and
    .3 Refusal to accept unaccompanied baggage on board the ship.


Monitoring the Security of the Ship


    9.42 The ship should have the capability to monitor the ship, 
the restricted areas on board and areas surrounding the ship. Such 
monitoring capabilities may include use of:
    .1 Lighting;
    .2 Watch-keepers, security guards and deck watches including 
patrols, and
    .3 Automatic intrusion detection devices and surveillance 
equipment.
    9.43 When used, automatic intrusion detection devices should 
activate an audible and/or visual alarm at a location that is 
continuously attended or monitored.
    9.44 The SSP should establish the procedures and equipment 
needed at each security level and the means of ensuring that 
monitoring equipment will be able to perform continually, including 
consideration of the possible effects of weather conditions or of 
power disruptions.


Security Level 1


    9.45 At security level 1, the SSP should establish the security 
measures to be applied which may be a combination of lighting, watch 
keepers, security guards or use of security and surveillance 
equipment to allow ship's security personnel to observe the ship in 
general, and barriers and restricted areas in particular.
    9.46 The ship's deck and access points to the ship should be 
illuminated during hours of darkness and periods of low visibility 
while conducting ship/port interface activities or at a port 
facility or anchorage when necessary.
    While underway, when necessary, ships should use the maximum 
lighting available consistent with safe navigation, having regard to 
the provisions of the International Regulation for the Prevention of 
Collisions at Sea in force.
    The following should be considered when establishing the 
appropriate level and location of lighting:


[[Page 79773]]


    .1 The ship's personnel should be able to detect activities 
beyond the ship, on both the shore side and the waterside;
    .2 Coverage should include the area on and around the ship;
    .3 Coverage should facilitate personnel identification at access 
points; and
    .4 Coverage may be provided through coordination with the port 
facility.


Security Level 2


    9.47 At security level 2, the SSP should establish the 
additional security measures to be applied to enhance the monitoring 
and surveillance capabilities, which may include:
    .1 Increasing the frequency and detail of security patrols;
    .2 Increasing the coverage and intensity of lighting or the use 
of security and surveillance and equipment;
    .3 Assigning additional personnel as security lookouts; and
    .4 Ensuring coordination with waterside boat patrols, and foot 
or vehicle patrols on the shore-side, when provided.
    9.48 Additional lighting may be necessary to protect against a 
heightened risk of a security incidents. When necessary, the 
additional lighting requirements may be accomplished by coordinating 
with the port facility to provide additional shore side lighting.


Security Level 3


    9.49 At security level 3, the ship should comply with the 
instructions issued by those responding to the security incident or 
threat thereof. The SSP should detail the security measures which 
could be taken by the ship, in close co-operation with those 
responding and the port facility, which may include:
    .1 Switching on of all lighting on, or illuminating the vicinity 
of, the ship;
    .2 Switching on of all on board surveillance equipment capable 
of recording activities on, or in the vicinity of, the ship;
    .3 Maximising the length of time such surveillance equipment can 
continue to record;
    .4 Preparation for underwater inspection of the hull of the 
ship; and
    .5 Initiation of measures, including the slow revolution of the 
ship's propellers, if practicable, to deter underwater access to the 
hull of the ship.


Differing Security Levels


    9.50 The SSP should establish details of the procedures and 
security measures the ship could adopt if the ship is at a higher 
security level than that applying to a port facility.


Activities Not Covered by the Code


    9.51 The SSP should establish details of the procedures and 
security measures the ship should apply when:
    .1 It is at a port of a State which is not a Contracting 
Government;
    .2 It is interfacing with a ship to which this Code does not 
apply\7\;
---------------------------------------------------------------------------


    \7\ Refer to Further Work by the International Maritime 
Organization pertaining to Enhancement of Maritime Security, adopted 
by the Conference on Maritime Security by resolution 3.;
---------------------------------------------------------------------------


    .3 It is interfacing with fixed or floating platforms or a 
mobile drilling unit on location; or
    .4 It is interfacing with a port or port facility which is not 
required to comply with chapter XI-2 and part A of this Code.


Declarations of Security


    9.52 The SSP should detail how requests for DoS from a port 
facility will be handled and the circumstances under which the ship 
itself should request a DoS.


Audit and Review


    9.53 The SSP should establish how the CSO and the SSO intend to 
audit the continued effectiveness of the SSP and the procedure to be 
followed to review, update or amend the SSP.


10 Records


    10.1 Records should be available to duly authorized officers of 
Contracting Governments to verify that the provisions of ship 
security plans are being implemented.
    10.2 Records may be kept in any format but should be protected 
from unauthorized access or disclosure.


11 Company Security Officer


    Relevant guidance is provided under sections 8, 9 and 13.


12 Ship Security Officer


    Relevant guidance is provided under sections 8, 9 and 13.


13 Training, Drills and Exercises on Ship Security


    13.1 The Company Security Officer (CSO) and appropriate shore 
based Company personnel, and the Ship Security Officer (SSO), should 
have knowledge of, and receive training, in some or all of the 
following, as appropriate:
    .1 Security administration;
    .2 Relevant international conventions, codes and 
recommendations;
    .3 Relevant Government legislation and regulations;
    .4 Responsibilities and functions of other security 
organisations;
    .5 Methodology of ship security assessment;
    .6 Methods of ship security surveys and inspections;
    .7 Ship and port operations and conditions;
    .8 Ship and port facility security measures;
    .9 Emergency preparedness and response and contingency planning;
    .10 Instruction techniques for security training and education, 
including security measures and procedures;
    .11 Handling sensitive security related information and security 
related communications;
    .12 Knowledge of current security threats and patterns;
    .13 Recognition and detection of weapons, dangerous substances 
and devices;
    .14 Recognition, on a non discriminatory basis, of 
characteristics and behavioural patterns of persons who are likely 
to threaten security;
    .15 Techniques used to circumvent security measures;
    .16 Security equipment and systems and their operational 
limitations;
    .17 Methods of conducting audits, inspection, control and 
monitoring;
    .18 Methods of physical searches and non-intrusive inspections;
    .19 Security drills and exercises, including drills and 
exercises with port facilities; and
    .20 Assessment of security drills and exercises.
    13.2 In addition the SSO should have adequate knowledge of, and 
receive training, in some or all of the following, as appropriate:
    .1 The layout of the ship;
    .2 The ship security plan and related procedures (including 
scenario-based training on how to respond);
    .3 Crowd management and control techniques;
    .4 Operations of security equipment and systems; and
    .5 Testing, calibration and whilst at sea maintenance of 
security equipment and systems.
    13.3 Shipboard personnel having specific security duties should 
have sufficient knowledge and ability to perform their assigned 
duties, including, as appropriate:
    .1 Knowledge of current security threats and patterns;
    .2 Recognition and detection of weapons, dangerous substances 
and devices;
    .3 Recognition of characteristics and behavioural patterns of 
persons who are likely to threaten security;
    .4 Techniques used to circumvent security measures;
    .5 Crowd management and control techniques;
    .6 Security related communications;
    .7 Knowledge of the emergency procedures and contingency plans;
    .8 Operations of security equipment and systems;
    .9 Testing, calibration and whilst at sea maintenance of 
security equipment and systems,
    .10 Inspection, control, and monitoring techniques; and
    .11 Methods of physical searches of persons, personal effects, 
baggage, cargo, and ship's stores.
    13.4 All other shipboard personnel should have sufficient 
knowledge of and be familiar with relevant provisions of the SSP, 
including:
    .1 The meaning and the consequential requirements of the 
different security levels;
    .2 Knowledge of the emergency procedures and contingency plans;
    .3 Recognition and detection of weapons, dangerous substances 
and devices;
    .4 Recognition, on a non discriminatory basis, of 
characteristics and behavioural patterns of persons who are likely 
to threaten security; and
    .5 Techniques used to circumvent security measures.
    13.5 The objective of drills and exercises is to ensure that 
shipboard personnel are proficient in all assigned security duties 
at all security levels and the identification of any security 
related deficiencies, which need to be addressed.


[[Page 79774]]


    13.6 To ensure the effective implementation of the provisions of 
the ship security plan, drills should be conducted at least once 
every three months. In addition, in cases where more than 25 percent 
of the ship's personnel has been changed, at any one time, with 
personnel that has not previously participated in any drill on that 
ship, within the last 3 months, a drill should be conducted within 
one week of the change. These drills should test individual elements 
of the plan such as those security threats listed in paragraph 8.9.
    13.7 Various types of exercises which may include participation 
of company security officers, port facility security officers, 
relevant authorities of Contracting Governments as well as ship 
security officers, if available, should be carried out at least once 
each calendar year with no more than 18 months between the 
exercises. These exercises should test communications, coordination, 
resource availability, and response. These exercises may be:
    .1 Full scale or live;
    .2 Tabletop simulation or seminar; or
    .3 Combined with other exercises held such as search and rescue 
or emergency response exercises.
    13.8 Company participation in an exercise with another 
Contracting Government should be recognised by the Administration.


14 Port Facility Security


    Relevant guidance is provided under section 15, 16 and 18.


15 Port Facility Security Assessment


General


    15.1 The Port Facility Security Assessment (PFSA) may be 
conducted by a Recognized Security Organization (RSO).
    However, approval of a completed PFSA should only be given by 
the relevant Contracting Government.
    15.2 If a Contracting Government uses a RSO, to review or verify 
compliance of the PFSA, the RSO should not be associated with any 
other RSO that prepared or assisted in the preparation of that 
assessment.
    15.3 A PFSA should address the following elements within a port 
facility:
    .1 Physical security;
    .2 Structural integrity;
    .3 Personnel protection systems;
    .4 Procedural policies;
    .5 Radio and telecommunication systems, including computer 
systems and networks;
    .6 Relevant transportation infrastructure;
    .7 Utilities; and
    .8 Other areas that may, if damaged or used for illicit 
observation, pose a risk to people, property, or operations within 
the port facility.
    15.4 Those involved in a PFSA should be able to draw upon expert 
assistance in relation to:
    .1 Knowledge of current security threats and patterns;
    .2 Recognition and detection of weapons, dangerous substances 
and devices;
    .3 Recognition, on a non-discriminatory basis, of 
characteristics and behavioural patterns of persons who are likely 
to threaten security;
    .4 Techniques used to circumvent security measures;
    .5 Methods used to cause a security incident;
    .6 Effects of explosives on structures and port facility 
services;
    .7 Port facility security;
    .8 Port business practices;
    .9 Contingency planning, emergency preparedness and response;
    .10 Physical security measures e.g. fences;
    .11 Radio and telecommunications systems, including computer 
systems and networks;
    .12 Transport and civil engineering; and
    .13 Ship and port operations.
    Identification and evaluation of important assets and 
infrastructure it is important to protect.
    15.5 The identification and evaluation of important assets and 
infrastructure is a process through which the relative importance of 
structures and installations to the functioning of the port facility 
can be established.
    This identification and evaluation process is important because 
it provides a basis for focusing mitigation strategies on those 
assets and structures which it is more important to protect from a 
security incident.
    This process should take into account potential loss of life, 
the economic significance of the port, symbolic value, and the 
presence of Government installations.
    15.6 Identification and evaluation of assets and infrastructure 
should be used to prioritise their relative importance for 
protection.
    The primary concern should be avoidance of death or injury. It 
is also important to consider whether the port facility, structure 
or installation can continue to function without the asset, and the 
extent to which rapid re-establishment of normal functioning is 
possible.
    15.7 Assets and infrastructure that should be considered 
important to protect may include:
    .1 Accesses, entrances, approaches, and anchorages, manoeuvring 
and berthing areas;
    .2 Cargo facilities, terminals, storage areas, and cargo 
handling equipment;
    .3 Systems such as electrical distribution systems, radio and 
telecommunication systems and computer systems and networks;
    .4 Port vessel traffic management systems and aids to 
navigation;
    .5 Power plants, cargo transfer piping, and water supplies;
    .6 Bridges, railways, roads;
    .7 Port service vessels, including pilot boats, tugs, lighters 
etc;
    .8 Security and surveillance equipment and systems; and
    .9 The waters adjacent to the port facility.
    15.8 The clear identification of assets and infrastructure is 
essential to the evaluation of the port facility's security 
requirements, the prioritisation of protective measures, and 
decisions concerning the allocation of resources to better protect 
the port facility.
    The process may involve consultation with the relevant 
authorities relating to structures adjacent to the port facility 
which could cause damage within the facility or be used for the 
purpose of causing damage to the facility or for illicit observation 
of the facility or for diverting attention.
    Identification of the possible threats to the assets and 
infrastructure and the likelihood of their occurrence, in order to 
establish and prioritise security measures.
    15.9 Possible acts that could threaten the security of assets 
and infrastructure, and the methods of carrying out those acts, 
should be identified to evaluate the vulnerability of a given asset 
or location to a security incident, and to establish and prioritise 
security requirements to enable planning and resource allocations.
    Identification and evaluation of each potential act and its 
method should be based on various factors, including threat 
assessments by Government agencies.
    By identifying and assessing threats those conducting the 
assessment do not have to rely on worst-case scenarios to guide 
planning and resource allocations.
    15.10 The PFSA should include an assessment undertaken in 
consultation with the relevant national security organizations to 
determine:
    .1 Any particular aspects of the port facility, including the 
vessel traffic using the facility, which make it likely to be the 
target of an attack;
    .2 The likely consequences in terms of loss of life, damage to 
property, economic disruption, including disruption to transport 
systems, of an attack on, or at, the port facility;
    .3 The capability and intent of those likely to mount such an 
attack; and
    .4 The possible type, or types, of attack.
    Producing an overall assessment of the level of risk against 
which security measures have to be developed.
    15.11 The PFSA should consider all possible threats, which may 
include the following types of security incidents:
    .1 Damage to, or destruction of, the port facility or of the 
ship, e.g. by explosive devices, arson, sabotage or vandalism;
    .2 Hijacking or seizure of the ship or of persons on board;
    .3 Tampering with cargo, essential ship equipment or systems or 
ship's stores;
    .4 Unauthorised access or use including presence of stowaways;
    .5 Smuggling weapons or equipment, including weapons of mass 
destruction;
    .6 Use of the ship to carry those intending to cause a security 
incident and their equipment;
    .7 Use of the ship itself as a weapon or as a means to cause 
damage or destruction;
    .8 Blockage; of port entrances, locks, approaches etc; and
    .9 Nuclear, biological and chemical attack.
    15.12 The process should involve consultation with the relevant 
authorities relating to structures adjacent to the port facility 
which could cause damage within the facility or be used for the 
purpose of causing damage to the facility or for illicit observation 
of the facility or for diverting attention.
    Identification, selection, and prioritisation of countermeasures 
and procedural changes and their level of effectiveness in reducing 
vulnerability.


[[Page 79775]]


    15.13 The identification and prioritisation of countermeasures 
is designed to ensure that the most effective security measures are 
employed to reduce the vulnerability of a port facility or ship/port 
interface to the possible threats.
    15.14 Security measures should be selected on the basis of 
factors such as whether they reduce the probability of an attack and 
should be evaluated using information that includes:
    .1 Security surveys, inspections and audits;
    .2 Consultation with port facility owners and operators, and 
owners/operators of adjacent structures if appropriate;
    .3 Historical information on security incidents; and
    .4 Operations within the port facility.


Identification of Vulnerabilities


    15.15 Identification of vulnerabilities in physical structures, 
personnel protection systems, processes, or other areas that may 
lead to a security incident can be used to establish options to 
eliminate or mitigate those vulnerabilities. For example, an 
analysis might reveal vulnerabilities in a port facility's security 
systems or unprotected infrastructure such as water supplies, 
bridges etc. that could be resolved through physical measures, e.g. 
permanent barriers, alarms, surveillance equipment etc.
    15.16 Identification of vulnerabilities should include 
consideration of:
    .1 Waterside and shore-side access to the port facility and 
ships berthing at the facility;
    .2 Structural integrity of the piers, facilities, and associated 
structures;
    .3 Existing security measures and procedures, including 
identification systems;
    .4 Existing security measures and procedures relating to port 
services and utilities;
    .5 Measures to protect radio and telecommunication equipment, 
port services and utilities, including computer systems and 
networks;
    .6 Adjacent areas that may be exploited during, or for, an 
attack;
    .7 Existing agreements with private security companies providing 
waterside/shore-side security services;
    .8 Any conflicting policies between safety and security measures 
and procedures;
    .9 Any conflicting port facility and security duty assignments;
    .10 Any enforcement and personnel constraints;
    .11 Any deficiencies identified during training and drills; and
    .12 Any deficiencies identified during daily operation, 
following incidents or alerts, the report of security concerns, the 
exercise of control measures, audits etc.


16 Port Facility Security Plan


General


    16.1 Preparation of the Port Facility Security Plan (PFSP) is 
the responsibility of the Port Facility Security Officer (PFSO).
    While the PFSO need not necessarily personally undertake all the 
duties associated with the post the ultimate responsibility for 
ensuring that they are properly performed remains with the 
individual PFSO.
    16.2 The content of each individual PFSP should vary depending 
on the particular circumstances of the port facility, or facilities, 
it covers.
    The Port Facility Security (PFSA) will have identified the 
particular features of the port facility, and of the potential 
security risks, that have led to the need to appoint a PFSO and to 
prepare a PFSP.
    The preparation of the PFSP will require these features, and 
other local or national security considerations, to be addressed in 
the PFSP and for appropriate security measures to be established so 
as to minimise the likelihood of a breach of security and the 
consequences of potential risks.
    Contracting Governments may prepare advice on the preparation 
and content of a PFSP.
    16.3 All PFSPs should:
    .1 Detail the security organisation of the port facility,
    .2 The organisation's links with other relevant authorities and 
the necessary communication systems to allow the effective 
continuous operation of the organisation and its links with others, 
including ships in port;
    .3 Detail the basic security level 1 measures, both operational 
and physical, that will be in place;
    .4 Detail the additional security measures that will allow the 
port facility to progress without delay to security level 2 and, 
when necessary, to security level 3;
    .5 Provide for regular review, or audit, of the PFSP and for its 
amendments in response to experience or changing circumstances; and
    .6 Reporting procedures to the appropriate Contracting 
Governments contact points.
    16.4 Preparation of an effective PFSP will rest on a thorough 
assessment of all issues that relate to the security of the port 
facility, including, in particular, a thorough appreciation of the 
physical and operational characteristics of the individual port 
facility.
    16.5 Contracting Government should approve the PFSPs of the port 
facilities under their jurisdiction.
    Contracting Governments should develop procedures to assess the 
continuing effectiveness of each PFSP and may require amendment of 
the PFSP prior to its initial approval or subsequent to its 
approval.
    The PFSP should make provision for the retention of records of 
security incidents and threats, reviews, audits, training, drills 
and exercises as evidence of compliance with those requirements.
    16.6 The security measures included in the PFSP should be in 
place within a reasonable period of the PFSP's approval and the PFSP 
should establish when each measure will be in place.
    If there is likely to be any delay in their provision this 
should be discussed with the Contracting Government responsible for 
approval of the PFSP and satisfactory alternative temporary security 
measures that provide an equivalent level of security should be 
agreed to cover any interim period.
    16.7 The use of firearms on or near ships and in port facilities 
may pose particular and significant safety risks, in particular in 
connection with certain dangerous or hazardous substances and should 
be considered very carefully.
    In the event that a Contracting Government decides that it is 
necessary to use armed personnel in these areas, that Contracting 
Government should ensure that these personnel are duly authorised 
and trained in the use of their weapons and that they are aware of 
the specific risks to safety that are present in these areas.
    If a Contracting Government authorizes the use of firearms they 
should issue specific safety guidelines on their use.
    The PFSP should contain specific guidance on this matter in 
particular with regard its application to ships carrying dangerous 
goods or hazardous substances.


Organization and Performance of Port Facility Security Duties


    16.8 In addition to the guidance given under section 16.3, the 
PFSP should establish the following which relate to all security 
levels:
    .1 The role and structure of the port facility security 
organisation;
    .2 The duties, responsibilities and training requirements of all 
port facility personnel with a security role and the performance 
measures needed to allow their individual effectiveness to be 
assessed;
    .3 The port facility security organisation's links with other 
national or local authorities with security responsibilities;
    .4 The communication systems provided to allow effective and 
continuous communication between port facility security personnel, 
ships in port and, when appropriate, with national or local 
authorities with security responsibilities;
    .5 The procedures or safeguards necessary to allow such 
continuous communications to be maintained at all times;
    .6 The procedures and practices to protect security sensitive 
information held in paper or electronic format;
    .7 The procedures to assess the continuing effectiveness of 
security measures, procedures and equipment, including 
identification of, and response to, equipment failure or 
malfunction;
    .8 The procedures to allow the submission, and assessment, of 
reports relating to possible breaches of security or security 
concerns;
    .9 Procedures relating to cargo handling;
    .10 Procedures covering the delivery of ship's stores;
    .11 The procedures to maintain, and update, records of dangerous 
goods and hazardous substances and their location within the port 
facility;
    .12 The means of alerting and obtaining the services of 
waterside patrols and specialist search teams, including bomb 
searches and underwater searches;
    .13 The procedures for assisting ship security officers in 
confirming the identity of those seeking to board the ship when 
requested; and
    .14 The procedures for facilitating shore leave for ship's 
personnel or personnel changes, as well as access of visitors to the 
ship including representatives of seafarers' welfare and labour 
organisations.
    16.9 The remainder of this section addresses specifically the 
security measures


[[Page 79776]]


that could be taken at each security level covering:
    .1 Access to the Port Facility;
    .2 Restricted Areas within the Port Facility;
    .3 Handling of Cargo;
    .4 Delivery of Ship's Stores;
    .5 Handling Unaccompanied Baggage; and
    .6 Monitoring the Security of the Port Facility.


Access to the Port Facility


    16.10 The PFSP should establish the security measures covering 
all means of access to the port facility identified in the PFSA.
    16.11 For each of these the PFSP should identify the appropriate 
locations where access restrictions or prohibitions should be 
applied for each of the security levels. For each security level the 
PFSP should specify the type of restriction or prohibition to be 
applied and the means of enforcing them.
    16.12 The PFSP should establish for each security level the 
means of identification required to allow access to the port 
facility and for individuals to remain within the port facility 
without challenge, this may involve developing an appropriate 
identification system allowing for permanent and temporary 
identifications, for port facility personnel and for visitors 
respectively.
    Any port facility identification system should, when it is 
practicable to do so, be co-ordinated with that applying to ships 
that regularly use the port facility.
    Passengers should be able to prove their identity by boarding 
passes, tickets, etc., but should not be permitted access to 
restricted areas unless supervised.
    The PFSP should establish provisions to ensure that the 
identification systems are regularly updated, and that abuse of 
procedures should be subject to disciplinary action.
    16.13 Those unwilling or unable to establish their identity and/
or to confirm the purpose of their visit when requested to do so 
should be denied access to the port facility and their attempt to 
obtain access should be reported to the PFSO and to the national or 
local authorities with security responsibilities.
    16.14 The PFSP should identify the locations where people, 
personal effects, and vehicle searches are to be undertaken. Such 
locations should be covered to facilitate continuous operation 
regardless of prevailing weather conditions, in accordance with the 
frequency laid down in the PFSP. Once subjected to search people, 
personal effects and vehicles should proceed directly to the 
restricted holding, embarkation or car loading areas.
    16.15 The PFSP should establish separate locations for checked 
and unchecked persons and their effects and if possible separate 
areas for embarking/disembarking passengers, ship's personnel and 
their effects to ensure that unchecked persons are not able to come 
in contact with checked persons.
    16.16 The PFSP should establish the frequency of application of 
any access controls particularly if they are to be applied on a 
random, or occasional, basis.


Security Level 1


    16.17 At security level 1, the PFSP should establish the control 
points where the following security measures may be applied:
    .1 Restricted areas which should be bound by fencing or other 
barriers to a standard which should be approved by the Contracting 
Government;
    .2 Checking identity of all persons seeking entry to the port 
facility in connection with a ship, including passengers, ship's 
personnel and visitors and confirming their reasons for doing so by 
checking, for example, joining instructions, passenger tickets, 
boarding passes, work orders, etc;
    .3 Checking vehicles used by those seeking entry to the port 
facility in connection with a ship;
    .4 Verification of the identity of port facility personnel and 
those employed within the port facility and their vehicles;
    .5 Restricting access to exclude those not employed by the port 
facility or working within it, if they are unable to establish their 
identity;
    .6 Undertaking searches of people, personal effects, vehicles 
and their contents; and
    .7 Identification of any access points not in regular use which 
should be permanently closed and locked.
    16.18 At security level 1, all those seeking access to the port 
facility should be liable to search. The frequency of such searches, 
including random searches, should be specified in the approved PFSP 
and should be specifically approved by the Contracting Government.
    Unless there are clear security grounds for doing so, members of 
the ship's personnel should not be required to search their 
colleagues or their personal effects.
    Any such search shall be undertaken in a manner which fully 
takes into account the human rights of the individual and preserves 
their basic human dignity.


Security Level 2


    16.19 At security level 2, the PFSP should establish the 
additional security measures to be applied, which may include:
    .1 Assigning additional personnel to guard access points and 
patrol perimeter barriers;
    .2 Limiting the number of access points to the port facility, 
and identify those to be closed and the means of adequately securing 
them;
    .3 Providing for means of impeding movement through the 
remaining access points, e.g. security barriers;
    .4 Increasing the frequency of searches of persons, personal 
effects, and vehicle;
    .5 Deny access to visitors who are unable to provide a 
verifiable justification for seeking access to the port facility; 
and
    .6 Using of patrol vessels to enhance waterside security;


Security Level 3


    16.20 At security level 3, the port facility should comply with 
instructions issued by those responding to the security incident or 
threat thereof. The PFSP should detail the security measures which 
could be taken by the port facility, in close co-operation with 
those responding and the ships at the port facility, which may 
include:
    .1 Suspension of access to all, or part of, the port facility;
    .2 Granting access only to those responding to the security 
incident or threat thereof;
    .3 Suspension of pedestrian or vehicular movement within all, or 
part, of the port facility;
    .4 Increased security patrols within the port facility, if 
appropriate;
    .5 Suspension of port operations within all, or part, of the 
port facility;
    .6 Direction of vessel movements relating to all, or part, of 
the port facility; and
    .7 Evacuation of all, or part of, the port facility.


Restricted Areas Within the Port Facility


    16.21 The PFSP should identify the restricted areas to be 
established within the port facility, specify their extent, times of 
application, the security measures to be taken to control access to 
them and those to be taken to control activities within them. This 
should also include, in appropriate circumstances, measures to 
ensure that temporary restricted areas are security swept both 
before and after that area is established.
    The purpose of restricted areas is to:
    .1 Protect passengers, ship's personnel, port facility personnel 
and visitors, including those visiting in connection with a ship;
    .2 Protect the port facility;
    .3 Protect ships using, and serving, the port facility;
    .4 Protect sensitive security locations and areas within the 
port facility,
    .5 To protect security and surveillance equipment and systems; 
and
    .6 Protect cargo and ship's stores from tampering.
    16.22 The PFSP should ensure that all restricted areas have 
clearly established security measures to control:
    .1 Access by individuals;
    .2 The entry, parking, loading and unloading of vehicles;
    .3 Movement and storage of cargo and ship's stores, and
    .4 Unaccompanied baggage or personal effects.
    16.23 The PFSP should provide that all restricted areas should 
be clearly marked indicating that access to the area is restricted 
and that unauthorised presence within the area constitutes a breach 
of security.
    16.24 When automatic intrusion detection devices are installed 
they should alert a control centre which can respond to the 
triggering of an alarm.
    16.25 Restricted areas may include:
    .1 Shore and waterside areas immediately adjacent to the ship;
    .2 Embarkation and disembarkation areas, passenger and ship's 
personnel holding and processing areas including search points;
    .3 Areas where loading, unloading or storage of cargo and stores 
is undertaken;
    .4 Locations where security sensitive information, including 
cargo documentation, is held;
    .5 Areas where dangerous goods and hazardous substances are 
held;
    .6 Vessel traffic management system control rooms, aids to 
navigation and port


[[Page 79777]]


control buildings, including security and surveillance control 
rooms;
    .7 Areas where security and surveillance equipment are stored or 
located;
    .8 Essential electrical, radio and telecommunication, water and 
other utility installations; and
    .9 Other locations in the port facility where access by vessels, 
vehicles and individuals should be restricted.
    16.26 The security measures may extend, with the agreement of 
the relevant authorities, to restrictions on unauthorised access to 
structures from which the port facility can be observed.


Security Level 1


    16.27 At security level 1, the PFSP should establish the 
security measures to be applied to restricted areas, which may 
include:
    .1 Provision of permanent or temporary barriers to surround the 
restricted area whose standard should be accepted by the Contracting 
Government;
    .2 Provision of access points where access can be controlled by 
security guards when in operation and which can be effectively 
locked or barred when not in use;
    .3 Providing passes which must be displayed to identify 
individuals entitlement to be within the restricted area;
    .4 Clearly marking vehicles allowed access to restricted areas;
    .5 Providing guards and patrols;
    .6 Providing automatic intrusion detection devices, or 
surveillance equipment or systems to detect unauthorised access 
into, or movement within restricted areas; and
    .7 Control of the movement of vessels in the vicinity of ships 
using the port facility.


Security Level 2


    16.28 At security level 2, the PFSP should establish the 
enhancement of the frequency and intensity of the monitoring of, and 
control of access to, restricted areas. The PFSP should establish 
the additional security measures, which may include:
    .1 Enhancing the effectiveness of the barriers or fencing 
surrounding restricted areas, including the use of patrols or 
automatic intrusion detection devices;
    .2 Reducing the number of access points to restricted areas and 
enhancing the controls applied at the remaining accesses;
    .3 Restrictions on parking adjacent to berthed ships;
    .4 Further restricting access to the restricted areas and 
movements and storage within them;
    .5 Use of continuously monitored and recording surveillance 
equipment;
    .6 Enhancing the number and frequency of patrols including 
waterside patrols undertaken on the boundaries of the restricted 
areas and within the areas;
    .7 Establishing and restricting access to areas adjacent to the 
restricted reas; and
    .8 Enforcing restrictions on access by unauthorised craft to the 
waters adjacent to ships using the port facility.


Security Level 3


    16.29 At security level 3, the port facility should comply with 
the instructions issued by those responding to the security incident 
or threat thereof. The PFSP should detail the security measures 
which could be taken by the port facility, in close co-operation 
with those responding and the ships at the port facility, which may 
include:
    .1 Setting up of additional restricted areas within the port 
facility in proximity to the security incident, or the believed 
location of the security threat, to which access is denied; and
    .2 Preparing for the searching of restricted areas as part of a 
search of all, or part, of the port facility.


Handling of Cargo


    16.30 The security measures relating to cargo handling should:
    .1 Prevent tampering, and
    .2 Prevent cargo that is not meant for carriage from being 
accepted and stored within the port facility.
    16.31 The security measures should include inventory control 
procedures at access points to the port facility. Once within the 
port facility cargo should be capable of being identified as having 
been checked and accepted for loading onto a ship or for temporary 
storage in a restricted area while awaiting loading. It may be 
appropriate to restrict the entry of cargo to the port facility that 
does not have a confirmed date for loading.


Security Level 1


    16.32 At security level 1, the PFSP should establish the 
security measures to be applied during cargo handling, which may 
include:
    .1 Routine checking of cargo, cargo transport units and cargo 
storage areas within the port facility prior to, and during, cargo 
handling operations;
    .2 Checks to ensure that cargo entering the port facility 
matches the delivery note or equivalent cargo documentation;
    .3 Searches of vehicles; and
    .4 Checking of seals and other methods used to prevent tampering 
upon entering the port facility and upon storage within the port 
facility.
    16.33 Checking of cargo may be accomplished by some or all of 
the following means:
    .1 Visual and physical examination; and
    .2 Using scanning/detection equipment, mechanical devices, or 
dogs.
    16.34 When there are regular, or repeated, cargo movement the 
Company Security Officer (CSO) or the Ship Security Officer (SSO) 
may, in consultation with the port facility, agree arrangements with 
shippers or others responsible for such cargo covering off-site 
checking, sealing, scheduling, supporting documentation, etc. Such 
arrangements should be communicated to and agreed with the PFSO 
concern.


Security Level 2


    16.35 At security level 2, the PFSP should establish the 
additional security measures to be applied during cargo handling to 
enhance control, which may include:
    .1 Detailed checking of cargo, cargo transport units and cargo 
storage areas within the port facility;
    .2 Intensified checks, as appropriate, to ensure that only the 
documented cargo enters the port facility, is temporarily stored 
there and then loaded onto the ship;
    .3 Intensified searches of vehicles; and
    .4 Increased frequency and detail in checking of seals and other 
methods used to prevent tampering.
    16.36 Detailed checking of cargo may be accomplished by some or 
all of the following means:
    .1 Increasing the frequency and detail of checking of cargo, 
cargo transport units and cargo storage areas within the port 
facility (visual and physical examination);
    .2 Increasing the frequency of the use of scanning/detection 
equipment, mechanical devices, or dogs; and
    .3 Co-ordinating enhanced security measures with the shipper or 
other responsible party in addition to an established agreement and 
procedures.


Security Level 3


    16.37 At security level 3, the port facility should comply with 
the instructions issued by those responding to the security incident 
or threat thereof. The PFSP should detail the security measures 
which could be taken by the port facility, in close co-operation 
with those responding and the ships at the port facility, which may 
include:
    .1 Restriction or suspension of cargo movements or operations 
within all, or part, of the port facility or specific ships; and
    .2 Verifying the inventory of dangerous goods and hazardous 
substances held within the port facility and their location.


Delivery of Ship's Stores


    16.38 The security measures relating to the delivery of ship's 
stores should:
    .1 Ensure checking of ship's stores and package integrity;
    .2 Prevent ship's stores from being accepted without inspection;
    .3 Prevent tampering;
    .4 Prevent ship's stores from being accepted unless ordered;
    .5 Ensure searching the delivery vehicle; and
    .6 Ensure escorting delivery vehicles within the port facility.
    16.39 For ships regularly using the port facility it may be 
appropriate to establish procedures involving the ship, its 
suppliers and the port facility covering notification and timing of 
deliveries and their documentation. There should always be some way 
of confirming that stores presented for delivery are accompanied by 
evidence that they have been ordered by the ship.


Security Level 1


    16.40 At security level 1, the PFSP should establish the 
security measures to be applied to control the delivery of ship's 
stores, which may include:
    .1 Checking of ship's stores;
    .2 Advance notification as to composition of load, driver 
details and vehicle registration; and
    .3 Searching the delivery vehicle.
    16.41 Checking of ship's stores may be accomplished by some or 
all of the following means:
    .1 Visual and physical examination; and
    .2 Using scanning/detection equipment, mechanical devices or 
dogs.


[[Page 79778]]


Security Level 2


    16.42 At security level 2, the PFSP should establish the 
additional security measures to be applied to enhance the control of 
the delivery of ship's stores, which may include:
    .1 Detailed checking of ship's stores;
    .2 Detailed searches of the delivery vehicles;
    .3 Co-ordination with ship personnel to check the order against 
the delivery note prior to entry to the port facility; and
    .4 Escorting the delivery vehicle within the port facility.
    16.43 Detailed checking of ship's stores may be accomplished by 
some or all of the following means:
    .1 Increasing the frequency and detail of searches of delivery 
vehicles;
    .2 Increasing the use of scanning/detection equipment, 
mechanical devices, or dogs; and
    .3 Restricting, or prohibiting, entry of stores that will not 
leave the port facility within a specified period.


Security Level 3


    16.44 At security level 3, the port facility should comply with 
the instructions issued by those responding to the security incident 
or threat thereof. The PFSP should detail the security measures 
which could be taken by the port facility, in close co-operation 
with those responding and the ships at the port facility which may 
include preparation for restriction, or suspension, of the delivery 
of ship's stores within all, or part, of the port facility.


Handling Unaccompanied Baggage


    16.45 The PFSP should establish the security measures to be 
applied to ensure that unaccompanied baggage (i.e., any baggage, 
including personal effects, which is not with the passenger or 
member of ship's personnel at the point of inspection or search) is 
identified and subjected to appropriate screening, including 
searching, before is allowed in the port facility and, depending on 
the storage arrangements, before it is transferred between the port 
facility and the ship.
    It is not envisaged that such baggage will be subjected to 
screening by both the port facility and the ship, and in cases where 
both are suitably equipped, the responsibility for screening should 
rest with the port facility.
    Close co-operation with the ship is essential and steps should 
be taken to ensure that unaccompanied baggage is handled securely 
after screening.


Security Level 1


    16.46 At security level 1, the PFSP should establish the 
security measures to be applied when handling unaccompanied baggage 
to ensure that unaccompanied baggage is screened or searched up to 
and including 100 percent, which may include use of x-ray screening.


Security Level 2


    16.47 At security level 2, the PFSP should establish the 
additional security measures to be applied when handling 
unaccompanied baggage which should include 100 percent x-ray 
screening of all unaccompanied baggage.


Security Level 3


    16.48 At security level 3, the port facility should comply with 
the instructions issued by those responding to the security incident 
or threat thereof. The PFSP should detail the security measures 
which could be taken by the port facility, in close co-operation 
with those responding and the ships at the port facility, which may 
include:
    .1 Subjecting such baggage to more extensive screening, for 
example x-raying it from at least two different angles;
    .2 Preparations for restriction or suspension of handling or 
unaccompanied baggage; and
    .3 Refusal to accept unaccompanied baggage into the port 
facility.


Monitoring the Security of the Port Facility


    16.49 The port facility security organization should have the 
capability to monitor the port facility and its nearby approaches, 
on land and water, at all times, including the night hours and 
periods of limited visibility, the restricted areas within the port 
facility, the ships at the port facility and areas surrounding 
ships. Such monitoring can include use of:
    .1 Lighting;
    .2 Security guards, including foot, vehicle and waterborne 
patrols, and
    .3 Automatic intrusion detection devices and surveillance 
equipment.
    16.50 When used, automatic intrusion detection devices should 
activate an audible and/or visual alarm at a location that is 
continuously attended or monitored.
    16.51 The PFSP should establish the procedures and equipment 
needed at each security level and the means of ensuring that 
monitoring equipment will be able to perform continually, including 
consideration of the possible effects of weather or of power 
disruptions.


Security Level 1


    16.52 At security level 1, the PFSP should establish the 
security measures to be applied which may be a combination of 
lighting, security guards or use of security and surveillance 
equipment to allow port facility security personnel to:
    .1 Observe the general port facility area, including shore and 
water-side accesses to it;
    .2 Observe access points, barriers and restricted areas, and
    .3 Allow port facility security personnel to monitor areas and 
movements adjacent to ships using the port facility, including 
augmentation of lighting provided by the ship itself.


Security Level 2


    16.53 At security level 2, the PFSP should establish the 
additional security measures to be applied to enhance the monitoring 
and surveillance capability, which may include:
    .1 Increasing the coverage and intensity of lighting and 
surveillance equipment, including the provision of additional 
lighting and surveillance coverage;
    .2 Increasing the frequency of foot, vehicle or waterborne 
patrols, and
    .3 Assigning additional security personnel to monitor and 
patrol.


Security Level 3


    16.54 At security level 3, the port facility should comply with 
the instructions issued by those responding to the security incident 
or threat thereof. The PFSP should detail the security measures 
which could be taken by the port facility, in close co-operation 
with those responding and the ships at the port facility, which may 
include:
    .1 Switching on all lighting within, or illuminating the 
vicinity of, the port facility;
    .2 Switching on all surveillance equipment capable of recording 
activities within, or adjacent to, the port facility; and
    .3 Maximising the length of time such surveillance equipment can 
continue to record.


Differing Security Levels


    16.55 The PFSP should establish details of the procedures and 
security measures the port facility could adopt if the port facility 
is at a lower security level than that applying to a ship.


Activities not covered by the Code


    16.56 The PFSP should establish details of the procedures and 
security measures the port facility should apply when:
    .1 It is interfacing with a ship which has been at a port of a 
State which not a Contracting Government;
    .2 It is interfacing with a ship to which this Code does not 
apply; and
    .3 It is interfacing with fixed or floating platforms or mobile 
offshore drilling units on location.


Declarations of Security


    16.57 The PFSP should establish the procedures to be followed 
when on the instructions of the Contracting Government the PFSO 
requests a Declaration of Security or when a DoS is requested by a 
ship.


Audit, Review and Amendment


    16.58 The PFSP should establish how the PFSO intends to audit 
the continued effectiveness of the PFSP and the procedure to be 
followed to review, update or amend the PFSP.
    16.59 The PFSP should be reviewed at the discretion of the PFSO. 
In addition it should be reviewed:
    .1 If the PFSA relating to the port facility is altered;
    .2 If an independent audit of the PFSP or the Contracting 
Government's testing of the port facility security organization 
identifies failings in the organization or questions the continuing 
relevance of significant element of the approved PFSP;
    .3 Following security incidents or threats thereof involving the 
port facility; and
    .4 Following changes in ownership or operational control of the 
port facility.
    16.60 The PFSO can recommend appropriate amendments to the 
approved plan following any review of the plan. Amendments to the 
PFSP relating to:
    .1 Proposed changes which could fundamentally alter the approach 
adopted to maintaining the security of the port facility; and
    .2 The removal, alteration or replacement of permanent barriers, 
security and surveillance equipment and systems etc.,


[[Page 79779]]


previously considered essential in maintaining the security of the 
port facility;
    Should be submitted to the Contracting Government that approved 
the original PFSP for their consideration and approval. Such 
approval can be given by, or on behalf of, the Contracting 
Government with, or without, amendments to the proposed changes.
    On approval of the PFSP the Contracting Government should 
indicate which procedural or physical alterations have to be 
submitted to it for approval.


Approval of Port Facility Security Plans


    16.61 PFSPs have to be approved by the relevant Contracting 
Government which should establish appropriate procedures to provide 
for:
    .1 The submission of PFSPs to them;
    .2 The consideration of PFSPs;
    .3 The approval of PFSPs, with or without amendments;
    .4 Consideration of amendments submitted after approval, and
    .5 Procedures for inspecting or auditing the continuing 
relevance of the approved PFSP.
    At all stages steps should be taken to ensure that the contents 
of the PFSP remains confidential.


Statement of Compliance of a Port Facility


    16.62 The Contracting Government within whose territory a port 
facility is located may issue an appropriate Statement of Compliance 
of a Port Facility (SoCPF) indicating:
    .1 The port facility;
    .2 That the port facility complies with the provisions of 
chapter XI-2 and part A of the Code.
    .3 The period of validity of the SoCPF which should be specified 
by the Contracting Governments but should not exceed five years; and
    .4 The subsequent verification arrangements established by the 
Contracting Government and a confirmation when these are carried 
out.
    16.63 The Statement of Compliance for Port Facility should be in 
form set out in the appendix to this Part of the Code. If the 
language used is not Spanish, French or English, the Contracting 
Government, if it considers it appropriate may also include a 
translation into one of these languages.
    17 Port facility security officer
    17.1 In those exceptional instances where the ship security 
officer has questions about the validity of credentials of those 
seeking to board the ship for official purposes, the port facility 
security officer should assist.
    17.2 The port facility security officer should not be 
responsible for routine confirmation of the identity of those 
seeking to board the ship.
    In addition relevant guidance is provided under sections 15, 16 
and 18.


18 Training, drills and exercises for port facility security


    18.1 The Port Facility Security Officer should have knowledge 
and receive training, in some or all of the following, as 
appropriate:
    .1 Security administration;
    .2 Relevant international conventions, codes and 
recommendations;
    .3 Relevant Government legislation and regulations;
    .4 Responsibilities and functions of other security 
organisations;
    .5 Methodology of port facility security assessment;
    .6 Methods of ship and port facility security surveys and 
inspections;
    .7 Ship and port operations and conditions;
    .8 Ship and port facility security measures;
    .9 Emergency preparedness and response and contingency planning;
    .10 Instruction techniques for security training and education, 
including security measures and procedures;
    .11 Handling sensitive security related information and security 
related communications;
    .12 Knowledge of current security threats and patterns;
    .13 Recognition and detection of weapons, dangerous substances 
and devices;
    .14 Recognition, on a non discriminatory basis, of 
characteristics and behavioural patterns of persons who are likely 
to threaten the security;
    .15 Techniques used to circumvent security measures;
    .16 Security equipment and systems, and their operational 
limitations;
    .17 Methods of conducting audits, inspection, control and 
monitoring;
    .18 Methods of physical searches and non-intrusive inspections;
    .19 Security drills and exercises, including drills and 
exercises with ships; and
    .20 Assessment of security drills and exercises.
    18.2 Port facility personnel having specific security duties 
should have knowledge and receive training, in some or all of the 
following, as appropriate:
    .1 Knowledge of current security threats and patterns;
    .2 Recognition and detection of weapons, dangerous substances 
and devices;
    .3 Recognition of characteristics and behavioural patterns of 
persons who are likely to threaten security;
    .4 Techniques used to circumvent security measures;
    .5 Crowd management and control techniques;
    .6 Security related communications;
    .7 Operations of security equipment and systems;
    .8 Testing, calibration and maintenance of security equipment 
and systems,
    .9 Inspection, control, and monitoring techniques; and
    .10 Methods of physical searches of persons, personal effects, 
baggage, cargo, and ship's stores.
    18.3 All other port facility personnel should have knowledge of 
and be familiar with relevant provisions of the PFSP, in some or all 
of the following, as appropriate:
    .1 The meaning and the consequential requirements of the 
different security levels;
    .2 Recognition and detection of weapons, dangerous substances 
and devices;
    .3 Recognition of characteristics and behavioural patterns of 
persons who are likely to threaten the security; and
    .4 Techniques used to circumvent security measures.
    18.4 The objective of drills and exercises is to ensure that 
port facility personnel are proficient in all assigned security 
duties, at all security levels, and to identify any security related 
deficiencies, which need to be addressed.
    18.5 To ensure the effective implementation of the provisions of 
the port facility security plan, drills should be conducted at least 
every three months unless the specific circumstances dictate 
otherwise. These drills should test individual elements of the plan 
such as those security threats listed in paragraph 15.11.
    18.6 Various types of exercises which may include participation 
of port facility security officers, in conjunction with relevant 
authorities of Contracting Governments, company security officers, 
or ship security officers, if available, should be carried out at 
least once each calendar year with no more than 18 months between 
the exercises. Requests for the participation of company security 
officers or ships security officers in joint exercise should be made 
bearing in mind the security and work implications for the ship. 
These exercises should test communication, coordination, resource 
availability and response. These exercises may be:
    .1 Full scale or live;
    .2 Tabletop simulation or seminar; or
    .3 Combined with other exercises held such as emergency response 
or other port State authority exercises.


19 Verification and certification for ships


    No additional guidance.


Appendix to Part B


Appendix 1--Form of a Declaration of Security


Declaration of Security


Name of Ship:
Port of Registry:
IMO Number:
Name of Port Facility:


    This Declaration of Security is valid from---------------- 
until----------------, for the following activities----------------
---- (list the activities with relevant details) under the following 
security levels:


Security level(s) for the ship:
Security level(s) for the port facility:


    The port facility and ship agree to the following security 
measures and responsibilities to ensure compliance with the 
requirements of Part A of the International Code for the Security of 
Ships and of Port Facilities.


[[Page 79780]]






------------------------------------------------------------------------
              Activity               The port facility      The ship
------------------------------------------------------------------------
   The affixing of the initials of the SSO or PFSO under these columns
  indicates that the activity will be done, in accordance with relevant
                            approved plan, by
------------------------------------------------------------------------
Ensuring the performance of all
 security duties
Monitoring restricted areas to
 ensure that only authorized
 personnel have access
Controlling access to the port
 facility
Controlling access to the ship
Monitoring of the port facility,
 including berthing areas and areas
 surrounding the ship
Monitoring of the ship, including
 berthing areas and areas
 surrounding the ship
Handling of cargo
Delivery of ship's stores
Handling unaccompanied baggage
Controlling the embarkation of
 persons and their effects
Ensuring that security
 communication is readily available
 between the ship and port facility
------------------------------------------------------------------------


    The signatories to this agreement certify that security measures 
and arrangements for both the port facility and the ship during the 
specified activities meet the provisions of chapter XI-2 and Part A 
of Code that will be implemented in accordance with the provisions 
already stipulated in their approved plan or the specific 
arrangements agreed to and set out in the attached annex.
    Dated at----------------on the----------------.


                       Signed For and On Behalf of
------------------------------------------------------------------------
         The port facility                         the ship
------------------------------------------------------------------------
(Signature of Port Facility          (Signature of Master or Ship
 Security Officer)                    Security Officer)
------------------------------------------------------------------------




                   Name and Title of Person Who Signed
------------------------------------------------------------------------


------------------------------------------------------------------------
Name:                                Name:
Title:                               Title:
------------------------------------------------------------------------




            Contact Details (to be completed as appropriate)
 [Indicate the telephone numbers or the radio channels or frequencies to
                                be used]
------------------------------------------------------------------------
       for the port facility:                   for the ship:
------------------------------------------------------------------------
Port Facility                        Master
Port Facility Security Officer       Ship Security Officer
                                     Company
                                     Company Security Officer
------------------------------------------------------------------------


Appendix 2--Form of a Statement of Compliance of a Port Facility


Statement of Compliance of a Port Facility


(Official seal)
(State)
Statement Number
    Issued under the provisions of part B of the International Code 
for the Security of Ships and of Port Facilities (ISPS CODE).
    The Government of--------------------(name of the State).


Name of the Port Facility:---------------------------------------------
Address of the Port Facility :-----------------------------------------


    This is to Certify that the compliance of this port facility 
with the provisions of chapter XI-2 and part A of the International 
Code for the Security of Ships and of Port Facilities (ISPS Code) 
has been verified and that this port facility operates in accordance 
with the approved Port Facility Security Plan. This plan has been 
approved for the following : 
(delete as appropriate):


Passenger ship
Passenger high speed craft
Cargo high speed craft
Bulk carrier
Oil tanker
Chemical tanker
Gas carrier
Mobile offshore Drilling Units
Cargo ships other than those referred to above


    This Statement of Compliance is valid until--------------------, 
subject to verifications (as indicated overleaf).
Issued at----------------(place of issue of the statement)
Date of issue----------------
-----------------------------------------------------------------------
(Signature of the duly authorized official issuing the document)


(Seal or stamp of issuing authority, as appropriate)


Endorsement for Verifications


    The Government of  has 
established that the validity of this Document of Compliance is 
subject to .
    This is to Certify that, during a verification carried out in 
accordance with paragraph B/16.40.3 of the ISPS Code, the Port 
Facility was found to comply with the relevant provisions of chapter 
XI-2 of the Convention and Part A of the ISPS Code.


1st Verification


Signed:----------------------------------------------------------------
 (Signature of authorized official)
Place:-----------------------------------------------------------------
Date:------------------------------------------------------------------


[[Page 79781]]


2nd Verification


Signed:----------------------------------------------------------------
 (Signature of authorized official)
Place:-----------------------------------------------------------------
Date:------------------------------------------------------------------


3rd Verification


Signed:----------------------------------------------------------------
 (Signature of authorized official)
Place:-----------------------------------------------------------------
Date:------------------------------------------------------------------


4th Verification


Signed:----------------------------------------------------------------
 (Signature of authorized official)
Place:-----------------------------------------------------------------
Date:------------------------------------------------------------------


Appendix C


Cost Analysis Report for Vessel, Facility, and Port Security, December 
20, 2002, Standards Evaluation and Analysis Division, U.S. Coast Guard 
Headquarters


Acronyms


AOR--Area of Responsibility
BLS--U.S. Department of Labor Bureau of Labor Statistics
CCTV--Closed Circuit Television
CFR--Code of Federal Regulations
COTP--Captain of the Port
CSO--Company Security Officer
DOT--U.S. Department of Transportation
FSA--Facility Security Assessment
FSO--Facility Security Officer
FSP--Facility Security Plan
GT--Gross Tons
IMO--International Maritime Organization
ISPS Code--International Code for the Security of Ships and of Port 
Facilities
ITB--Integrated Tug-Barge
MARAD--U.S. Maritime Administration
MARSEC--Maritime Security Level
MODU--Mobile Offshore Drilling Unit
MSMS--Marine Safety Management System
NAICS--North American Industry Classification System
NVIC--Navigation and Vessel Inspection Circular
O&M--Operation and Maintenance
OSV--Offshore Supply Vessel
PFSA--Port Facility Security Assessment
PFSC--Port Facility Security Committee
PFSP--Port Facility Security Plan
PFSO--Port Facility Security Officer
PSA--Port Security Assessment
PSC--Port Security Committee
PSP--Port Security Plan
PV--Present Value
SBA--Small Business Administration
SOLAS--Convention for the Safety of Life at Sea
VSA--Vessel Security Assessment
VSP--Vessel Security Plan


Contents


Executive Summary
Vessel security
    Summary
    Analysis
    Period of analysis
    Population affected
    Unit cost assumptions
    Vessel costs
    Company costs
    Total national cost of vessel security
Facility security
    Summary
    Analysis
    Period of analysis
    Population affected
    Unit cost assumptions
    Facility costs
    Total national cost for facility security
Port security
    Summary
    Analysis
    Period of analysis
    Population affected
    Unit cost assumptions
    Total national cost for port security


Tables


Table 1. Estimated U.S.-Flagged SOLAS population
Table 2. Estimated domestic population
Table 3. Unit cost of equipment
Table 4. Unit cost of personnel
Table 5. Cost per U.S.-flagged SOLAS freight ship
Table 6. Cost per U.S.-flagged SOLAS freight barge
Table 7. Cost per domestic freight ship
Table 8. Cost per domestic freight barge
Table 9. Cost per U.S.-flagged SOLAS tank ship
Table 10. Cost per U.S.-flagged SOLAS tank barge
Table 11. Cost per domestic tank ship
Table 12. Cost per domestic tank barge
Table 13. Cost per U.S.-flagged SOLAS towboat
Table 14. Cost per U.S.-flagged SOLAS fish processor
Table 15. Cost per domestic towboat
Table 16. Cost per U.S.-flagged SOLAS cruise vessel
Table 17. Cost per other U.S.-flagged SOLAS passenger vessel
Table 18. Cost per domestic passenger vessel, not ferry
Table 19. Cost per domestic ferry  500 passengers
Table 20. Cost per domestic ferry <= 500 passengers
Table 21. Cost per domestic cruise vessel
Table 22. Cost per domestic passenger vessel, not ferry
Table 23. Cost per domestic ferry  500 passengers
Table 24. Cost per domestic ferry <= 500 passengers
Table 25. Cost per U.S.-flagged SOLAS MODU
Table 26. Cost per domestic MODU
Table 27. Cost per U.S.-flagged SOLAS OSV
Table 28. Cost per domestic OSV
Table 29. Cost per U.S.-flagged SOLAS oil recovery vessel
Table 30. Cost per U.S.-flagged SOLAS research vessel
Table 31. Cost per U.S.-flagged SOLAS industrial vessel
Table 32. Cost per company by type
Table 33. Example cost for U.S.-flagged SOLAS company
Table 34. Example cost for large non-towing company (no passenger 
vessels)
Table 35. Example cost for large non-towing company (with passenger 
vessels)
Table 36. Example cost for large towing company
Table 37. Example cost for small non-towing company
Table 38. Example cost for small towing company
Table 39. Total national PV cost for vessel security, in $millions
Table 40. Total national initial and annual cost by element of 
compliance, in $millions
Table 41. Estimated facility population
Table 42. Unit cost of equipment
Table 43. Unit cost of personnel
Table 44. Initial and annual cost for a non-specific group A 
facility
Table 45. Initial and annual cost for a non-specific group B 
facility
Table 46. Estimated percentage of facilities that will purchase or 
enhance security measures
Table 47. Initial and annual cost for container or break-bulk 
facilities, group A
Table 48. Initial and annual cost for container or break-bulk 
facilities, group B
Table 49. Initial and annual cost for dry bulk facilities, group A
Table 50. Initial and annual cost for dry bulk facilities, group B
Table 51. Initial and annual cost for hazardous bulk liquid 
facilities, group A
Table 52. Initial and annual cost for hazardous bulk liquid 
facilities, group B
Table 53. Initial and annual cost for hazardous substance (other) 
facilities, group A
Table 54. Initial and annual cost for hazardous substance (other) 
facilities, group B
Table 55. Initial and annual cost for other bulk liquid facilities, 
group A
Table 56. Initial and annual cost for other bulk liquid facilities, 
group B
Table 57. Initial and annual cost for ferry terminals, group A
Table 58. Initial and annual cost for ferry terminals, group B
Table 59. Initial and annual cost for passenger terminals, group A
Table 60. Initial and annual cost for passenger terminals, group B
Table 61. Example cost for ferry terminal owner
Table 62. Example cost for dry bulk facility owner
Table 63. Example cost for petroleum facility owner
Table 64. Total national PV cost for facility security, in $millions
Table 65. Total national initial and annual cost by element of 
compliance, in $millions
Table 66. PSC meeting frequency, hours, and unit cost per 
stakeholder
Table 67. PSP planning and drill frequency, hours, and unit cost per 
stakeholder
Table 68. Total national PV cost for port security, in $millions


Executive Summary


    Note: for definition of acronyms, refer to the list at the 
beginning of the report.


    The United States has been a participant in negotiations at IMO 
developing the ISPS Code. This analysis presents the scope and 
magnitude of costs that the maritime transportation industry could 
incur for implementing


[[Page 79782]]


and complying with the ISPS Code, parts A and B, and Coast Guard issued 
NVICs (4-02, 9-02, 10-02). The purpose of this report is to present the 
broad set of assumptions that we used to develop our cost estimates, 
document our analysis, and make that information available to the 
public for comment.
    For the purposes of good business practice or regulations 
promulgated by other Federal and State agencies, many companies have 
spent, to date, a substantial amount of money and resources to upgrade 
and improve security. The costs shown in this analysis do not include 
resources these companies have already spent to enhance security.
    We realize that every company engaged in maritime commerce would 
not implement the ISPS Code exactly as presented in this analysis. 
Depending on each company's choices, some companies could spend much 
less than what is estimated herein while others could spend 
significantly more. In general, we assume that each company would 
implement the ISPS Code based on the type of vessels or facilities it 
owns or operates and whether it engages in international or domestic 
trade.
    The ISPS Code provides requirements for ``Port Facilities.'' 
Because the Coast Guard differentiates between ports and facilities in 
domestic regulations, however, we are presenting this cost analysis in 
three sections: vessel security, facility security, and port security. 
As a result, for the purposes of this cost analysis, the terms PFSC, 
PFSO, PFSA, and PFSP have been replaced with PSC and PSP for the port 
security section and FSO, FSA, and FSP for the facility security 
section.
    This analysis presents the estimated cost if vessels, facilities, 
and ports are operating at MARSEC 1 (the current level of operations 
since the events of September 11, 2001). We do not estimate costs for 
MARSEC 2 or 3 because the nature of a threat will determine the cost of 
responding to that threat. Depending on circumstances, one port, a U.S. 
coast, or the entire country could have an elevated MARSEC level. The 
costs for this vast range of threat levels are difficult to estimate 
with any accuracy. Under MARSEC 2 and 3, we would expect not just the 
immediate effects of increasing security with more personnel and more 
screening, but also ``ripple'' effects--delayed commerce, decreased 
product availability, price increases, increased unemployment, unstable 
markets worldwide, even negative psychological effects of threats. The 
recent shut-down of the West Coast ports, while not in response to a 
security threat, present a good example of the economic costs that we 
could experience under increased MARSEC levels.
    We do not anticipate that implementing the ISPS Code will require 
additional manning aboard vessels; the duties envisioned can be assumed 
by existing personnel. For facilities, we anticipate additional 
personnel in the form of security guards that can be hired through 
contracting with a private firm specializing in security.
    Based on this analysis, the first-year cost of implementing the 
ISPS Code for vessels, facilities, and ports is approximately $1.4 
billion, with costs of approximately PV $6.0 billion over the next 10 
years (2003-2012, 7 percent discount rate). Estimated costs are as 
follows.
    [sbull] Vessel Security--The first-year cost of purchasing 
equipment, hiring security officers, and preparing paperwork is 
approximately $188 million. Following initial implementation, the 
annual cost is approximately $144 million. Over the next 10 years, the 
cost would be PV $1.1 billion approximately. The paperwork burden 
associated with planning would be approximately 141,000 hours in the 
first year and 7,000 hours in subsequent years.
    [sbull] Facility Security--The first-year cost of purchasing 
equipment, hiring security officers, and preparing paperwork is an 
estimated $963 million. Following initial implementation, the annual 
cost is approximately $535 million. Over the next 10 years, the cost 
would be PV $4.4 billion approximately. The paperwork burden associated 
with planning would be approximately 464,000 hours in the first year 
and 17,000 hours in subsequent years.
    [sbull] Port Security--The first-year cost is approximately $120 
million. The second-year cost is approximately $106 million. In 
subsequent years, the annual cost is approximately $46 million. Over 
the next 10 years, the cost would be PV $477 million approximately. The 
paperwork burden associated with planning would be approximately 
1,090,000 hours in 2003, 1,278,000 hours in 2004, and 827,000 hours in 
subsequent years.


Vessel Security


Summary


    Note: for definition of acronyms throughout this analysis, refer 
to the list at the beginning of the report.


    Implementing the ISPS Code and NVICs could affect about 10,625 
vessels.
    The estimated cost of complying with the ISPS Code, parts A and B, 
and NVICs is PV $1.129 billion (2003-2012, 7 percent discount rate). 
Approximately PV $257 million of this total is attributable to U.S.-
flagged SOLAS vessels. The remaining PV $871 million is attributable to 
domestic vessels (non-SOLAS) that are affected. In the first year of 
compliance, the cost of purchasing equipment, hiring security officers, 
and preparing paperwork is an estimated $188 million (non-discounted, 
$42 million for the U.S.-flagged SOLAS fleet, $146 million for the 
domestic fleet). Following initial implementation, the annual cost of 
compliance is an estimated $144 million (non-discounted, $33 million 
for the U.S.-flagged SOLAS fleet, $111 million for the domestic fleet).
    For the U.S.-flagged SOLAS fleet, approximately 60 percent of the 
initial cost is for hiring CSOs and training, 24 percent is for vessel 
equipment, 7 percent is for assigning VSOs to ships, and 9 percent is 
associated with paperwork (VSAs, VSPs). Following the first year, 
approximately 79 percent of the cost is for CSOs and training, 3 
percent is for vessel equipment, 6 percent is for drilling, 9 percent 
is for VSOs, and 3 percent is associated with paperwork. CSOs and 
training are the primary cost driver for U.S.-flagged SOLAS vessels.
    For the domestic fleet, approximately 61 percent of the initial 
cost is for hiring CSOs and training, 25 percent is for vessel 
equipment, 8 percent is for assigning VSOs to ships, and 6 percent is 
associated with paperwork (VSAs, VSPs). Following the first year, 
approximately 82 percent of the cost is for CSOs and training, 1 
percent is for vessel equipment, 6 percent is for drilling, 10 percent 
is for VSOs, and 1 percent is associated with paperwork. As with SOLAS 
vessels, CSOs are the primary cost driver for the domestic fleet.
    We estimate approximately 140,000 burden hours for paperwork during 
the first year of compliance (36,000 hours for U.S.-flagged SOLAS, 
104,000 hours for the domestic fleet). We estimate approximately 7,000 
burden hours annually following full implementation of the ISPS Code 
and NVICs (1,000 hours for U.S.-flagged SOLAS, 6,000 hours for the 
domestic fleet).
    We assume shipping companies would apply the ISPS Code and NVICs 
differently based on the types of ships they own or operate and whether 
they operate internationally or domestically. Because an unacceptable 
amount of detail would be lost if we developed an ``average'' ship or 
an ``average'' company, this analysis calculates cost per affected 
vessel as well as cost per


[[Page 79783]]


affected company to capture characteristics unique to these entities.


Analysis


Period of Analysis
    The period of analysis is 2003-2012 (10 years). Companies must come 
into compliance with the ISPS Code in 2004, but we assume that 
companies will purchase equipment and develop security plans prior to 
the effective date. We assume, therefore, that initial costs will be 
incurred in 2003, and annual costs will be incurred each year 2004-
2012.


Population Affected


    The population of affected vessels is derived from the Coast 
Guard's MSMS database and DOT's National Ferry Database. The U.S.-
flagged SOLAS population affected is presented in Table 1. As shown, 
most of the U.S.-flagged SOLAS fleet are freight ships, tank ships, 
small passenger vessels, or OSVs. Approximately 170 companies own/
operate these vessels.


       Table 1.--Estimated U.S.-Flagged SOLAS Population1, 2, 3, 4
------------------------------------------------------------------------
                 Vessel                        Count        Percent \5\
------------------------------------------------------------------------
Freight ship............................             241            37.6
Freight barge...........................               2             0.3
Tank ship...............................             114            17.8
Tank barge..............................              14             2.2
Towboat.................................              14             2.2
Fishing.................................              39             6.1
Cruise vessel...........................               2             0.3
Other passenger vessel..................             109            17.0
MODU....................................               2             0.3
OSV.....................................              75            11.7
Oil recovery............................               1             0.2
Research vessel.........................               8             1.2
Industrial vessel.......................              20             3.1
                                         -----------------
    Total...............................             641          100.0
------------------------------------------------------------------------
\1\ All vessels engaged on international voyages (no GT threshold).
  There are 96 vessels < 100 GT; there are 112 < 300 GT.
\2\ There are 89 freight ships, 19 tanks ships, 1 MODU, and 1 research
  vessel owned by MARAD.
\3\ There are 15 ITBs. They are included in the tank ship population.
\4\ There is 1 recreational vessel that is not included in these
  estimates.
\5\ Sum may not add to total due to independent rounding.


    The domestic population (non-SOLAS) affected is presented in Table 
2. As shown, most of the domestic fleet are tank barges, towboats, or 
OSVs. Approximately 1,950 companies own/operate these vessels.


                 Table 2.--Estimated Domestic Population
------------------------------------------------------------------------
                 Vessel                        Count        Percent \1\
------------------------------------------------------------------------
Freight ship............................              99             1.0
Freight barge...........................             262             2.6
Tank ship...............................              34             0.3
Tank barge..............................           2,891            29.0
Towboat 6 meters \2\.........           4,645            46.5
Passenger, <=100 GT, not ferry..........             223             2.2
Passenger, <=100 GT, ferry, 500 passengers......................
Passenger, <=100 GT, ferry, <=500                    435             4.4
 passengers.............................
Passenger, 100 GT, cruise....               2             0.0
Passenger, 100 GT, not ferry.              67             0.7
Passenger, 100 GT, ferry, 500 passengers..................
Passenger, 100 GT, ferry,                  92             0.9
 <=500 passengers.......................
MODU....................................             159             1.6
OSV.....................................             983             9.9
                                         -----------------
    Total...............................           9,984          100.0
------------------------------------------------------------------------
\1\ Sum may not add to total due to independent rounding.
\2\ Towboats over 50 GT. This is a good proxy for towboats  6
  meters.


Unit Cost Assumptions
Equipment
    Costs of equipment are based on extensive research and analysis of 
several studies that addressed security needs. We estimate annual O&M 
cost for equipment is 5 percent of the purchase price. Not all vessels 
would install each piece of equipment. Unit costs of equipment are 
presented in Table 3.


[[Page 79784]]






                    Table 3.--Unit Cost of Equipment
------------------------------------------------------------------------
                Equipment                     Initial         Annual
------------------------------------------------------------------------
Hand-held metal detector................            $200             $10
Hand-held radio.........................             200              10
Lock....................................             300              15
Light...................................             400              20
Camera..................................             475              24
Auto-intrusion alarm....................             500              25
Ship security system (SOLAS only).......           2,000             100
Archway metal detector..................           5,500             275
Portable vapor detector.................           8,000             400
X-ray baggage machine...................          39,000           1,950
------------------------------------------------------------------------


Personnel, Training, Drilling, and Planning
    Costs of personnel and training are based on extensive research and 
previous Coast Guard analyses that estimated training and planning 
costs. Personnel and training costs will be incurred each year of the 
analysis. Drilling costs will be incurred annually, but not initially. 
Planning costs will be incurred initially and annually, with more costs 
incurred initially as companies develop their security plans.
    We assume costs will vary based on the types of vessels companies 
own. Companies differ by size and whether or not they are ``towing'' 
companies. For the purpose of this analysis, we assume that a large 
company owns more than 10 vessels (excluding towboats and barges). A 
small company owns 10 or fewer vessels (excluding towboats and 
barges).\1\ A ``towing'' company owns only towboats and barges. A 
``non-towing'' company is any other company (it owns only non-towing 
vessels or it owns a combination of towboats and non-towing vessels).
---------------------------------------------------------------------------


    \1\ Our use of ``large'' or ``small'' to characterize a vessel 
company does not have the same meaning as the SBA's definition. SBA 
uses NAICS, revenues, and number of employees to determine company 
size.
---------------------------------------------------------------------------


    We assume that large companies will have a dedicated CSO. Small 
companies will have a part-time CSO (we estimate 0.25 of a dedicated 
person). CSOs and key crew will have some form of training annually as 
refresher courses and to address potential employee turnover within a 
company. The ISPS Code also requires all CSOs to participate in an 
annual security exercise; for the purposes of this analysis, these 
costs have been accounted for in the ``Port Security'' section. VSOs 
will be existing personnel on board vessels that will allocate part of 
their time toward security activities. Towing vessels will not have 
VSOs. For VSAs and VSPs, we assume the company will prepare the core 
documents, and there will be an incremental cost for each vessel 
included in the assessment or plan. The incremental cost added to each 
plan will be based on the number and type of vessels. We assume each 
hour of planning costs an average of $100/hour. This is a ``loaded'' 
labor rate, which means it includes the costs of benefits and other 
overhead costs. While some employees cost more than this and some cost 
less, we believe $100/hour is a reasonable average cost of the 
employees that would conduct this work. To calculate costs for VSAs and 
VSPs, we estimated number of hours that would be required initially 
(plan development and submission) and annually (plan updates), then 
multiplied by hourly cost.
    For drilling, the time required will depend on the number of 
crewmembers aboard the vessel. We assume each hour of drilling also 
costs an average of $100/hour per crewmember (again, a loaded labor 
rate that represents an average cost of the labor performing these 
duties). Drilling for all vessels except towboats and barges will be 
conducted quarterly. Towboats and associated barges will drill under 
order of the COTP (approximately every 18 months). Table 4 summarizes 
personnel costs.


                                        Table 4.--Unit Cost of Personnel
                                              [Loaded labor costs]
----------------------------------------------------------------------------------------------------------------
                                                           Large company                   Small company
                    Personnel                    ---------------------------------------------------------------
                                                      Initial         Annual          Initial         Annual
----------------------------------------------------------------------------------------------------------------
CSO.............................................        $150,000        $150,000         $37,500         $37,500
CSO training....................................           3,500           3,500           2,000           2,000
Training of key crew............................           5,000           5,000           3,500           3,500
VSO.............................................           5,000           5,000           5,000           5,000
VSA, non-towing.................................           8,000             400           4,000             200
VSA, towing.....................................           1,600             100             800             100
VSP, non-towing.................................           8,000             400           4,000             200
VSP, towing.....................................           1,600             100             800             100
----------------------------------------------------------------------------------------------------------------


Vessel Costs
    The following is a summary of the costs for each type of vessel. 
Company costs are estimated separately. These costs reflect the current 
state of the industry and the current level of compliance with security 
rulemakings already in effect, but not cost incurred in response to the 
events of September 11, 2001. Since neither the ISPS Code nor the NVICs 
require specific equipment, we estimated what an ``average'' vessel 
within each service type would likely install.


[[Page 79785]]


Freight Ships and Barges
    Tables 5-8 present the per-vessel cost for U.S.-flagged SOLAS and 
domestic freight ships and freight barges.


                                                   Table 5.--Cost per U.S.-Flagged SOLAS Freight Ship
                                                                 [241 Vessels affected]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                            Initial                                                      Annual
              Item               -----------------------------------------------------------------------------------------------------------------------
                                         Number               Cost/item          Total cost           Number              Cost/item         Total cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Hand-held metal detector........  2...................  $200................            $400   2...................  $10................             $20
Hand-held radio.................  5...................  200.................           1,000   5...................  10.................              50
Lock............................  10..................  300.................           3,000   10..................  15.................             150
Light...........................  5...................  400.................           2,000   5...................  20.................             100
Auto-intrusion alarm............  5...................  500.................           2,500   5...................  25.................             125
Ship security system............  1...................  2,000...............           2,000   1...................  100................             100
Portable vapor detector.........  1...................  8,000...............           8,000   1...................  400................             400
VSO.............................  1...................  5,000...............           5,000   1...................  5,000..............           5,000
VSA (incremental cost)..........  16.00 hrs...........  100/hr..............           1,600   0.02 hrs............  100/hr.............               2
VSP (incremental cost)..........  4.00 hrs............  100/hr..............             400   0.02 hrs............  100/hr.............               2
Quarterly drills................  ....................  ....................  ...............  1 hr, 15 crew.......  1,500/drill........           6,000
                                 -----------------------
    Total cost per vessel.......  ....................  ....................          25,900   ....................  ...................          11,949
--------------------------------------------------------------------------------------------------------------------------------------------------------




                                                   Table 6.--Cost per U.S.-Flagged SOLAS Freight Barge
                                                                  [2 Vessels affected]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                            Initial                                                      Annual
              Item               -----------------------------------------------------------------------------------------------------------------------
                                         Number               Cost/item          Total cost           Number              Cost/item         Total cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
VSA (incremental cost)..........  4.00 hrs............  $100/hr.............            $400   0.02 hrs............  $100/hr............              $2
VSP (incremental cost)..........  0.25 hrs............  100/hr..............              25   0.02 hrs............  100/hr.............               2
                                 -----------------------
    Total cost per vessel.......  ....................  ....................             425   ....................  ...................               4
--------------------------------------------------------------------------------------------------------------------------------------------------------




                                                        Table 7.--Cost per Domestic Freight Ship
                                                                  [99 Vessels affected]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                            Initial                                                      Annual
              Item               -----------------------------------------------------------------------------------------------------------------------
                                         Number               Cost/item          Total cost           Number              Cost/item         Total cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Hand-held metal detector........  2...................  $200................            $400   2...................  $10................             $20
Hand-held radio.................  5...................  200.................           1,000   5...................  10.................              50
Lock............................  10..................  300.................           3,000   10..................  15.................             150
Light...........................  5...................  400.................           2,000   5...................  20.................             100
Auto-intrusion alarm............  5...................  500.................           2,500   5...................  25.................             125
Portable vapor detector.........  1...................  8,000...............           8,000   1...................  400................             400
VSO.............................  1...................  5,000...............           5,000   1...................  5,000..............           5,000
VSA (incremental cost)..........  8.00 hrs............  100/hr..............             800   0.02 hrs............  100/hr.............               2
VSP (incremental cost)..........  4.00 hrs............  100/hr..............             400   0.02 hrs............  100/hr.............               2
Quarterly drills................  ....................  ....................  ...............  1 hr, 15 crew.......  1,500/drill........           6,000
                                 -----------------------
    Total cost per vessel.......  ....................  ....................          23,100   ....................  ...................          11,849
--------------------------------------------------------------------------------------------------------------------------------------------------------




                                                        Table 8.--Cost per Domestic Freight Barge
                                                                 [262 Vessels affected]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                            Initial                                                      Annual
              Item               -----------------------------------------------------------------------------------------------------------------------
                                         Number               Cost/item          Total cost           Number              Cost/item         Total cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
VSA (incremental cost)..........  0.02................  $100................              $2   0.02 hrs............  100/hr.............              $2
VSP (incremental cost)..........  0.02 hrs............  100/hr..............               2   0.02 hrs............  100/hr.............               2
                                 -----------------------
    Total cost per vessel.......  ....................  ....................               4   ....................  ...................               4
--------------------------------------------------------------------------------------------------------------------------------------------------------


Tank Ships and Barges
    Tables 9-12 present the per-vessel cost for U.S.-flagged SOLAS and 
domestic tank ships and tank barges.


[[Page 79786]]






                                                     Table 9.--Cost per U.S.-Flagged SOLAS Tank Ship
                                                                 [114 Vessels affected]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                            Initial                                                      Annual
              Item               -----------------------------------------------------------------------------------------------------------------------
                                         Number               Cost/item          Total cost           Number              Cost/item         Total cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Hand-held metal detector........  1...................  $200................            $200   1...................  $10................             $10
Hand-held radio.................  5...................  200.................           1,000   5...................  10.................              50
Lock............................  10..................  300.................           3,000   10..................  15.................             150
Light...........................  5...................  400.................           2,000   5...................  20.................             100
Auto-intrusion alarm............  5...................  500.................           2,500   5...................  25.................             125
Ship security system............  1...................  2,000...............           2,000   1...................  100................             100
VSO.............................  1...................  5,000...............           5,000   1...................  5,000..............           5,000
VSA (incremental cost)..........  16.00 hrs...........  100/hr..............           1,600   0.02 hrs............  100/hr.............               2
VSP (incremental cost)..........  4.00 hrs............  100/hr..............             400   0.02 hrs............  100/hr.............               2
Quarterly drills................  ....................  ....................  ...............  1 hr, 15 crew.......  1,500/drill........           6,000
                                 -----------------------
    Total cost per vessel.......  ....................  ....................          17,700   ....................  ...................          11,539
--------------------------------------------------------------------------------------------------------------------------------------------------------




                                                    Table 10.--Cost per U.S.-Flagged SOLAS Tank Barge
                                                                  [14 Vessels affected]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                            Initial                                                      Annual
              Item               -----------------------------------------------------------------------------------------------------------------------
                                         Number               Cost/item          Total cost           Number              Cost/item         Total cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
VSA (incremental cost)..........  4.00 hrs............  $100/hr.............            $400   0.02 hrs............  $100/hr............              $2
VSP (incremental cost)..........  0.08 hrs............  100/hr..............               8   0.02 hrs............  100/hr.............               2
                                 -----------------------
    Total cost per vessel.......  ....................  ....................             408   ....................  ...................               4
--------------------------------------------------------------------------------------------------------------------------------------------------------




                                                         Table 11.--Cost per Domestic Tank Ship
                                                                  [34 Vessels affected]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                            Initial                                                      Annual
              Item               -----------------------------------------------------------------------------------------------------------------------
                                         Number               Cost/item          Total cost           Number              Cost/item         Total cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Hand-held metal detector........  1...................  $200................            $200   1...................  $10................             $10
Hand-held radio.................  5...................  200.................           1,000   5...................  10.................              50
Lock............................  10..................  300.................           3,000   10..................  15.................             150
Light...........................  5...................  400.................           2,000   5...................  20.................             100
Auto-intrusion alarm............  5...................  500.................           2,500   5...................  25.................             125
VSO.............................  1...................  5,000...............           5,000   1...................  5,000..............           5,000
VSA (incremental cost)..........  8.00 hrs............  100/hr..............             800   0.02 hrs............  100/hr.............               2
VSP (incremental cost)..........  4.00 hrs............  100/hr..............             400   0.02 hrs............  100/hr.............               2
Quarterly drills................  ....................  ....................  ...............  1 hr, 15 crew.......  1,500/drill........           6,000
                                 -----------------------
    Total cost per vessel.......  ....................  ....................          14,900   ....................  ...................          11,439
--------------------------------------------------------------------------------------------------------------------------------------------------------




                                                         Table 12.--Cost per Domestic Tank Barge
                                                                [2,891 Vessels affected]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                            Initial                                                      Annual
              Item               -----------------------------------------------------------------------------------------------------------------------
                                         Number               Cost/item          Total cost           Number              Cost/item         Total cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
VSA (incremental cost)..........  0.02 hrs............  $100/hr.............              $2   0.02 hrs............  $100/hr............              $2
VSP (incremental cost)..........  0.02 hrs............  100/hr..............               2   0.02 hrs............  100/hr.............               2
                                 -----------------------
    Total cost per vessel.......  ....................  ....................               4   ....................  ...................               4
--------------------------------------------------------------------------------------------------------------------------------------------------------


Uninspected Vessels
    Tables 13-15 present the per-vessel cost for U.S.-flagged SOLAS 
towboats and fish processors and domestic towboats.


[[Page 79787]]






                                                     Table 13.--Cost per U.S.-Flagged SOLAS Towboat
                                                                  [14 Vessels affected]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                            Initial                                                      Annual
              Item               -----------------------------------------------------------------------------------------------------------------------
                                         Number               Cost/item          Total cost           Number              Cost/item         Total cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Hand-held radio.................  1...................  $200................            $200   1...................  $10................             $10
Lock............................  3...................  300.................             900   3...................  15.................              45
Light...........................  2...................  400.................             800   2...................  20.................              40
Ship security system............  1...................  2,000...............           2,000   1...................  100................             100
VSA (incremental cost)..........  8.00 hrs............  100/hr..............             800   0.02 hrs............  100/hr.............               2
VSP (incremental cost)..........  2.00 hrs............  100/hr..............             200   0.02 hrs............  100/hr.............               2
                                 -----------------------
    Total cost per vessel.......  ....................  ....................           4,900   ....................  ...................             199
--------------------------------------------------------------------------------------------------------------------------------------------------------




                                                  Table 14.--Cost per U.S.-Flagged SOLAS Fish Processor
                                                                  [39 Vessels affected]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                            Initial                                                      Annual
              Item               -----------------------------------------------------------------------------------------------------------------------
                                         Number               Cost/item          Total cost           Number              Cost/item         Total cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Hand-held metal detector........  1...................  $200................            $200   1...................  $10................             $10
Hand-held radio.................  3...................  200.................             600   3...................  10.................              30
Lock............................  10..................  300.................           3,000   10..................  15.................             150
Light...........................  2...................  400.................             800   2...................  20.................              40
Auto-intrusion alarm............  2...................  500.................           1,000   2...................  25.................              50
Ship security system............  1...................  2,000...............           2,000   1...................  100................             100
VSO.............................  1...................  5,000...............           5,000   1...................  5,000..............           5,000
VSA (incremental cost)..........  8.00 hrs............  100/hr..............             800   0.02 hrs............  100/hr.............               2
VSP (incremental cost)..........  2.00 hrs............  100/hr..............             200   0.02 hrs............  100/hr.............               2
Quarterly drills................  ....................  ....................  ...............  1 hr, 5 crew........  500/drill..........           2,000
                                 -----------------------
    Total cost per vessel.......  ....................  ....................          13,600   ....................  ...................           7,384
--------------------------------------------------------------------------------------------------------------------------------------------------------




                                                          Table 15.--Cost per Domestic Towboat
                                                                [4,645 Vessels affected]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                            Initial                                                      Annual
              Item               -----------------------------------------------------------------------------------------------------------------------
                                         Number               Cost/item          Total cost           Number              Cost/item         Total cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Lock............................  3...................  $300................            $900   3...................  $15................             $45
Light...........................  2...................  400.................             800   2...................  20.................              40
VSA (incremental cost)..........  0.02 hrs............  100/hr..............               2   0.02 hrs............  100/hr.............               2
VSP (incremental cost)..........  0.02 hrs............  100/hr..............               2   0.02 hrs............  100/hr.............               2
                                 -----------------------
    Total cost per vessel.......  ....................  ....................           1,704   ....................  ...................              89
--------------------------------------------------------------------------------------------------------------------------------------------------------


U.S.-Flagged SOLAS Passenger Vessels
    Tables 16 and 17 present the per-vessel cost for U.S.-flagged SOLAS 
passenger vessels.


                                                  Table 16.--Cost per U.S.-Flagged SOLAS Cruise Vessel
                                                                  [2 Vessels affected]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                            Initial                                                      Annual
              Item               -----------------------------------------------------------------------------------------------------------------------
                                         Number               Cost/item          Total cost           Number              Cost/item         Total cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Hand-held radio.................  10..................  $200................          $2,000   10..................  $10................            $100
Ship security system............  1...................  2,000...............           2,000   1...................  100................             100
VSO.............................  1...................  5,000...............           5,000   1...................  5,000..............           5,000
VSA (incremental cost)..........  24.00 hrs...........  100/hr..............           2,400   0.02 hrs............  100/hr.............               2
VSP (incremental cost)..........  4.00 hrs............  100/hr..............             400   0.02 hrs............  100/hr.............               2
Quarterly drills................  ....................  ....................  ...............  1 hr, 20 crew.......  2,000/drill........           8,000
                                 -----------------------
    Total cost per vessel.......  ....................  ....................          11,800   ....................  ...................          13,204
--------------------------------------------------------------------------------------------------------------------------------------------------------




[[Page 79788]]




                                              Table 17.--Cost per Other U.S.-Flagged SOLAS Passenger Vessel
                                                                 [109 Vessels affected]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                            Initial                                                      Annual
              Item               -----------------------------------------------------------------------------------------------------------------------
                                         Number               Cost/item          Total cost           Number              Cost/item         Total cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Hand-held metal detector........  2...................  $200................            $400   2...................  $10................             $20
Hand-held radio.................  5...................  200.................           1,000   5...................  10.................              50
Lock............................  20..................  300.................           6,000   20..................  15.................             300
Auto-intrusion alarm............  5...................  500.................           2,500   5...................  25.................             125
Ship security system............  1...................  2,000...............           2,000   1...................  100................             100
Archway metal detector..........  1...................  5,500...............           5,500   1...................  275................             275
VSO.............................  1...................  5,000...............           5,000   1...................  5,000..............           5,000
VSA (incremental cost)..........  8.00 hrs............  100/hr..............             800   0.02 hrs............  100/hr.............               2
VSP (incremental cost)..........  2.00 hrs............  100/hr..............             200   0.02 hrs............  100/hr.............               2
Quarterly drills................  ....................  ....................  ...............  1 hr, 10 crew.......  1,000/drill........           4,000
                                 -----------------------
    Total cost per vessel.......  ....................  ....................          23,400   ....................  ...................           9,874
--------------------------------------------------------------------------------------------------------------------------------------------------------


Passenger Vessels <= 100 GT
    Tables 18-20 present the per-vessel cost for domestic passenger 
vessels.


                                                Table 18.--Cost per Domestic Passenger Vessel, Not Ferry
                                                                 [223 Vessels affected]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                            Initial                                                      Annual
              Item               -----------------------------------------------------------------------------------------------------------------------
                                         Number               Cost/item          Total cost           Number              Cost/item         Total cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Hand-held metal detector........  1...................  $200................            $200   1...................  $10................             $10
Hand-held radio.................  5...................  200.................           1,000   5...................  10.................              50
Lock............................  10..................  300.................           3,000   10..................  15.................             150
Light...........................  5...................  400.................           2,000   5...................  20.................             100
VSO.............................  1...................  5,000...............           5,000   1...................  5,000..............           5,000
VSA (incremental cost)..........  8.00 hrs............  100/hr..............             800   0.02 hrs............  100/hr.............               2
VSP (incremental cost)..........  4.00 hrs............  100/hr..............             400   0.02 hrs............  100/hr.............               2
Quarterly drills................  ....................  ....................  ...............  1 hr, 5 crew........  500/drill..........           2,000
                                 -----------------------
    Total cost per vessel.......  ....................  ....................          12,400   ....................  ...................           7,314
--------------------------------------------------------------------------------------------------------------------------------------------------------




                                              Table 19.--Cost per Domestic Ferry 500 Passengers
                                                                  [43 Vessels affected]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                            Initial                                                      Annual
              Item               -----------------------------------------------------------------------------------------------------------------------
                                         Number               Cost/item          Total cost           Number              Cost/ item        Total cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Hand-held metal detector........  2...................  $200................            $400   2...................  $10................             $20
Hand-held radio.................  5...................  200.................           1,000   5...................  10.................              50
Lock............................  10..................  300.................           3,000   10..................  15.................             150
Light...........................  5...................  400.................           2,000   5...................  20.................             100
Auto-intrusion alarm............  5...................  500.................           2,500   5...................  25.................             125
Archway metal detector..........  2...................  5,500...............          11,000   2...................  275................             550
Portable vapor detector.........  1...................  8,000...............           8,000   1...................  400................             400
VSO.............................  1...................  5,000...............           5,000   1...................  5,000..............           5,000
VSA (incremental cost)..........  8.00 hrs............  100/hr..............             800   0.02 hrs............  100/hr.............               2
VSP (incremental cost)..........  4.00 hrs............  100/hr..............             400   0.02 hrs............  100/hr.............               2
Quarterly drills................  ....................  ....................  ...............  1 hr, 15 crew.......  1,500/drill........           6,000
                                 -----------------------
    Total cost per vessel.......  ....................  ....................          34,100   ....................  ...................          12,399
--------------------------------------------------------------------------------------------------------------------------------------------------------




                                                   Table 20.--Cost per Domestic Ferry <=500 Passengers
                                                                 [435 Vessels affected]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                            Initial                                                      Annual
              Item               -----------------------------------------------------------------------------------------------------------------------
                                         Number               Cost/item          Total cost           Number              Cost/item         Total cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Hand-held metal detector........  2...................  $200................            $400   2...................  $10................             $20
Hand-held radio.................  5...................  200.................           1,000   5...................  10.................              50
Lock............................  10..................  300.................           3,000   10..................  15.................             150
Light...........................  5...................  400.................           2,000   5...................  20.................             100


[[Page 79789]]




Portable vapor detector.........  1...................  8,000...............           8,000   1...................  400................             400
VSO.............................  1...................  5,000...............           5,000   1...................  5,000..............           5,000
VSA (incremental cost)..........  8.00 hrs............  100/hr..............             800   0.02 hrs............  100/hr.............               2
VSP (incremental cost)..........  4.00 hrs............  100/hr..............             400   0.02 hrs............  100/hr.............               2
Quarterly drills................  ....................  ....................  ...............  1 hr, 10 crew.......  1,000/drill........           4,000
                                 -----------------------
    Total cost per vessel.......  ....................  ....................          20,600   ....................  ...................           9,724
--------------------------------------------------------------------------------------------------------------------------------------------------------


Passenger Vessels  100 GT
    Tables 21-24 present the per-vessel cost for domestic passenger 
vessels.


                                                       Table 21.--Cost per Domestic Cruise Vessel
                                                                  [2 Vessels affected]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                            Initial                                                      Annual
              Item               -----------------------------------------------------------------------------------------------------------------------
                                         Number               Cost/item          Total cost           Number              Cost/item         Total cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Hand-held radio.................  10..................  $200................          $2,000   10..................  $10................            $100
VSO.............................  1...................  5,000...............           5,000   1...................  5,000..............           5,000
VSA (incremental cost)..........  16.00 hrs...........  100/hr..............           1,600   0.02 hrs............  100/hr.............               2
VSP (incremental cost)..........  4.00 hrs............  100/hr..............             400   0.02 hrs............  100/hr.............               2
Quarterly drills................  ....................  ....................  ...............  1 hr, 20 crew.......  2,000/drill........           8,000
                                 -----------------------
    Total cost per vessel.......  ....................  ....................           9,000   ....................  ...................          13,104
--------------------------------------------------------------------------------------------------------------------------------------------------------




                                                Table 22.--Cost per Domestic Passenger Vessel, not Ferry
                                                                  [67 Vessels affected]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                            Initial                                                      Annual
              Item               -----------------------------------------------------------------------------------------------------------------------
                                         Number               Cost/item          Total cost           Number              Cost/item         Total cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Hand-held metal detector........  1...................  $200................            $200   1...................  $10................             $10
Hand-held radio.................  10..................  200.................           2,000   10..................  10.................             100
Lock............................  20..................  300.................           6,000   20..................  15.................             300
Camera..........................  5...................  475.................           2,375   5...................  24.................             120
Auto-intrusion alarm............  10..................  500.................           5,000   10..................  25.................             250
VSO.............................  1...................  5,000...............           5,000   1...................  5,000..............           5,000
VSA (incremental cost)..........  8.00 hrs............  100/hr..............             800   0.02 hrs............  100/hr.............               2
VSP (incremental cost)..........  4.00 hrs............  100/hr..............             400   0.02 hrs............  100/hr.............               2
Quarterly drills................  ....................  ....................  ...............  1 hr, 10 crew.......  1,000/drill........           4,000
                                 -----------------------
    Total cost per vessel.......  ....................  ....................          21,775   ....................  ...................           9,784
--------------------------------------------------------------------------------------------------------------------------------------------------------




                                              Table 23.--Cost per Domestic Ferry 500 Passengers
                                                                  [49 Vessels affected]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                            Initial                                                      Annual
              Item               -----------------------------------------------------------------------------------------------------------------------
                                         Number               Cost/item          Total cost           Number              Cost/item         Total cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Hand-held metal detector........  2...................  $200................            $400   2...................  $10................             $20
Hand-held radio.................  10..................  200.................           2,000   10..................  10.................             100
Lock............................  20..................  300.................           6,000   20..................  15.................             300
Camera..........................  5...................  475.................           2,375   5...................  24.................             120
Auto-intrusion alarm............  10..................  500.................           5,000   10..................  25.................             250
Archway metal detector..........  2...................  5,500...............          11,000   2...................  275................             550
Portable vapor detector.........  1...................  8,000...............           8,000   1...................  400................             400
X-ray baggage machine...........  1...................  39,000..............          39,000   1...................  1,950..............           1,950
VSO.............................  1...................  5,000...............           5,000   1...................  5,000..............           5,000
VSA (incremental cost)..........  8.00 hrs............  100/hr..............             800   0.02 hrs............  100/hr.............               2
VSP (incremental cost)..........  4.00 hrs............  100/hr..............             400   0.02 hrs............  100/hr.............               2
Quarterly drills................  ....................  ....................  ...............  1 hr, 15 crew.......  1,500/drill........           6,000
                                 -----------------------


[[Page 79790]]




    Total cost per vessel.......  ....................  ....................          79,975   ....................  ...................          14,694
--------------------------------------------------------------------------------------------------------------------------------------------------------




                                                   Table 24.--Cost per Domestic Ferry <=500 Passengers
                                                                  [92 Vessels affected]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                            Initial                                                      Annual
              Item               -----------------------------------------------------------------------------------------------------------------------
                                         Number               Cost/item          Total cost           Number              Cost/item         Total cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Hand-held metal detector........  2...................  $200................            $400   2...................  $10................             $20
Hand-held radio.................  5...................  200.................           1,000   5...................  10.................              50
Lock............................  20..................  300.................           6,000   20..................  15.................             300
Auto-intrusion alarm............  5...................  500.................           2,500   5...................  25.................             125
Archway metal detector..........  2...................  5,500...............          11,000   2...................  275................             550
Portable vapor detector.........  1...................  8,000...............           8,000   1...................  400................             400
VSO.............................  1...................  5,000...............           5,000   1...................  5,000..............           5,000
VSA (incremental cost)..........  8.00 hrs............  100/hr..............             800   0.02 hrs............  100/hr.............               2
VSP (incremental cost)..........  4.00 hrs............  100/hr..............             400   0.02 hrs............  100/hr.............               2
Quarterly drills................  ....................  ....................  ...............  1 hr, 10 crew.......  1,000/drill........           4,000
                                 -----------------------
    Total cost per vessel.......  ....................  ....................          35,100   ....................  ...................          10,449
--------------------------------------------------------------------------------------------------------------------------------------------------------
MODUs
    Tables 25 and 26 present the per-vessel cost for U.S.-flagged SOLAS 
and domestic MODUs.


                                                       Table 25.--Cost per U.S.-Flagged SOLAS MODU
                                                                  [2 Vessels affected]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                            Initial                                                      Annual
              Item               -----------------------------------------------------------------------------------------------------------------------
                                         Number               Cost/item          Total cost           Number              Cost/item         Total cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Hand-held radio.................  5...................  $200................          $1,000   5...................  $10................             $50
Lock............................  10..................  300.................           3,000   10..................  15.................             150
Light...........................  5...................  400.................           2,000   5...................  20.................             100
Auto-intrusion alarm............  5...................  500.................           2,500   5...................  25.................             125
Ship security system............  1...................  2,000...............           2,000   1...................  100................             100
VSO.............................  1...................  5,000...............           5,000   1...................  5,000..............           5,000
VSA (incremental cost)..........  16.00 hrs...........  100/hr..............           1,600   0.02 hrs............  100/hr.............               2
VSP (incremental cost)..........  4.00 hrs............  100/hr..............             400   0.02 hrs............  100/hr.............               2
Quarterly drills................  ....................  ....................  ...............  1 hr, 10 crew.......  1,000/drill........           4,000
                                 -----------------------
    Total cost per vessel.......  ....................  ....................          17,500   ....................  ...................           9,529
--------------------------------------------------------------------------------------------------------------------------------------------------------




                                                            Table 26.--Cost per Domestic MODU
                                                                 [159 Vessels affected]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                            Initial                                                      Annual
              Item               -----------------------------------------------------------------------------------------------------------------------
                                         Number               Cost/item          Total cost           Number              Cost/item         Total cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Hand-held radio.................  5...................  $200................          $1,000   5...................  $10................             $50
Lock............................  10..................  300.................           3,000   10..................  15.................             150
Light...........................  5...................  400.................           2,000   5...................  20.................             100
Auto-intrusion alarm............  5...................  500.................           2,500   5...................  25.................             125
VSO.............................  1...................  5,000...............           5,000   1...................  5,000..............           5,000
VSA (incremental cost)..........  16.00 hrs...........  100/hr..............           1,600   0.02 hrs............  100/hr.............               2
VSP (incremental cost)..........  4.00 hrs............  100/hr..............             400   0.02 hrs............  100/hr.............               2
Quarterly drills................  ....................  ....................  ...............  1 hr, 10 crew.......  1,000/drill........           4,000
                                 -----------------------
    Total cost per vessel.......  ....................  ....................          15,500   ....................  ...................           9,429
--------------------------------------------------------------------------------------------------------------------------------------------------------


OSVs
    Tables 27 and 28 present the per-vessel cost for U.S.-flagged SOLAS 
and domestic OSVs.


[[Page 79791]]






                                                       Table 27.--Cost per U.S.-Flagged SOLAS OSV
                                                                  [75 Vessels affected]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                            Initial                                                      Annual
              Item               -----------------------------------------------------------------------------------------------------------------------
                                         Number               Cost/item          Total cost           Number              Cost/item         Total cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Hand-held metal detector........  1...................  $200................            $200   1...................  $10................             $10
Hand-held radio.................  3...................  200.................             600   3...................  10.................              30
Lock............................  10..................  300.................           3,000   10..................  15.................             150
Light...........................  2...................  400.................             800   2...................  20.................              40
Auto-intrusion alarm............  2...................  500.................           1,000   2...................  25.................              50
Ship security system............  1...................  2,000...............           2,000   1...................  100................             100
VSO.............................  1...................  5,000...............           5,000   1...................  5,000..............           5,000
VSA (incremental cost)..........  8.00 hrs............  100/hr..............             800   0.02 hrs............  100/hr.............               2
VSP (incremental cost)..........  4.00 hrs............  100/hr..............             400   0.02 hrs............  100/hr.............               2
Quarterly drills................  ....................  ....................  ...............  1hr, 4 crew.........  400/drill..........           1,600
                                 -----------------------
    Total cost per vessel.......  ....................  ....................          13,800   ....................  ...................           6,984
--------------------------------------------------------------------------------------------------------------------------------------------------------




                                                            Table 28.--Cost per Domestic OSV
                                                                 [983 Vessels affected]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                            Initial                                                      Annual
              Item               -----------------------------------------------------------------------------------------------------------------------
                                         Number               Cost/item          Total cost           Number              Cost/item         Total cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Hand-held metal detector........  1...................  $200................            $200   1...................  $10................             $10
Hand-held radio.................  3...................  200.................             600   3...................  10.................              30
Lock............................  10..................  300.................           3,000   10..................  15.................             150
Light...........................  2...................  400.................             800   2...................  20.................              40
Auto-intrusion alarm............  2...................  500.................           1,000   2...................  25.................              50
VSO.............................  1...................  5,000...............           5,000   1...................  5,000..............           5,000
VSA (incremental cost)..........  8.00 hrs............  100/hr..............             800   0.02 hrs............  100/hr.............               2
VSP (incremental cost)..........  4.00 hrs............  100/hr..............             400   0.02 hrs............  100/hr.............               2
Quarterly drills................  ....................  ....................  ...............  1hr, 4 crew.........  400/drill..........           1,600
                                 -----------------------
    Total cost per vessel.......  ....................  ....................          11,800   ....................  ...................           6,884
--------------------------------------------------------------------------------------------------------------------------------------------------------


Other U.S.-Flagged SOLAS Vessels
    Tables 29-31 present the per-vessel cost for other U.S.-flagged 
SOLAS vessels.


                                               Table 29.--Cost per U.S.-Flagged SOLAS Oil Recovery Vessel
                                                                   [1 Vessel affected]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                            Initial                                                      Annual
              Item               -----------------------------------------------------------------------------------------------------------------------
                                         Number               Cost/item          Total cost           Number              Cost/item         Total cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Hand-held radio.................  3...................  $200................            $600   3...................  $10................             $30
Lock............................  10..................  300.................           3,000   10..................  15.................             150
Light...........................  2...................  400.................             800   2...................  20.................              40
Auto-intrusion alarm............  2...................  500.................           1,000   2...................  25.................              50
Ship security system............  1...................  2,000...............           2,000   1...................  100................             100
VSO.............................  1...................  5,000...............           5,000   1...................  5,000..............           5,000
VSA (incremental cost)..........  8.00 hrs............  100/hr..............             800   0.02 hrs............  100/hr.............               2
VSP (incremental cost)..........  2.00 hrs............  100/hr..............             200   0.02 hrs............  100/hr.............               2
Quarterly drills................  ....................  ....................  ...............  1hr, 3 crew.........  300/drill..........           1,200
                                 -----------------------
    Total cost per vessel.......  ....................  ....................          13,400   ....................  ...................           6,574
--------------------------------------------------------------------------------------------------------------------------------------------------------




                                                 Table 30.--Cost per U.S.-Flagged SOLAS Research Vessel
                                                                  [8 vessels affected]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                            Initial                                                      Annual
              Item               -----------------------------------------------------------------------------------------------------------------------
                                         Number               Cost/item          Total cost           Number              Cost/item         Total cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Hand-held radio.................  3...................  $200................            $600   3...................  $10................             $30
Lock............................  10..................  300.................           3,000   10..................  15.................             150
Light...........................  2...................  400.................             800   2...................  20.................              40
Auto-intrusion alarm............  2...................  500.................           1,000   2...................  25.................              50
Ship security system............  1...................  2,000...............           2,000   1...................  100................             100


[[Page 79792]]




VSO.............................  1...................  5,000...............           5,000   1...................  5,000..............           5,000
VSA (incremental cost)..........  8.00 hrs............  100/hr..............             800   0.02 hrs............  100/hr.............               2
VSP (incremental cost)..........  2.00 hrs............  100/hr..............             200   0.02 hrs............  100/hr.............               2
Quarterly drills................  ....................  ....................  ...............  1 hr, 5 crew........  500/drill..........           2,000
                                 -----------------------
    Total cost per vessel.......  ....................  ....................          13,400   ....................  ...................           7,374
--------------------------------------------------------------------------------------------------------------------------------------------------------




                                                Table 31.--Cost per U.S.-Flagged SOLAS Industrial Vessel
                                                                  [20 vessels affected]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                            Initial                                                      Annual
              Item               -----------------------------------------------------------------------------------------------------------------------
                                         Number               Cost/item          Total cost           Number              Cost/item         Total cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Hand-held radio.................  1...................  $200................            $200   1...................  $10................             $10
Lock............................  3...................  300.................             900   3...................  15.................              45
Light...........................  2...................  400.................             800   2...................  20.................              40
Ship security system............  1...................  2,000...............           2,000   1...................  100................             100
VSO.............................  1...................  5,000...............           5,000   1...................  5,000..............           5,000
VSA (incremental cost)..........  8.00 hrs............  100/hr..............             800   0.02 hrs............  100/hr.............               2
VSP (incremental cost)..........  2.00 hrs............  100/hr..............             200   0.02 hrs............  100/hr.............               2
Quarterly drills................  ....................  ....................  ...............  1 hr, 5 crew........  500/drill..........           2,000
                                 -----------------------
    Total cost per vessel.......  ....................  ....................           9,900   ....................  ...................           7,199
--------------------------------------------------------------------------------------------------------------------------------------------------------


Company Costs
    The cost per company depends on the number and type of vessels a 
company owns. For this analysis, companies are defined as follows.
    [sbull] Large non-towing company--company owns more than 10 
vessels, none is a towboat or barge; there are 19 companies in our 
population
    [sbull] Large towing company--company owns more than 10 vessels, at 
least one is a towboat or barge; there are 10 companies in our 
population
    [sbull] Small non-towing company--company owns 10 or fewer vessels, 
none is a towboat or barge; there are 616 companies in our population
    [sbull] Small towing company--company owns only towboats or barges, 
regardless of the number; there are 1,398 companies in our population
    [sbull] U.S.-flagged SOLAS company--treated as a large non-towing 
company; there are 167 companies in our population
    The cost per company by type is presented in Table 32.


                   Table 32.--Cost per Company by Type
------------------------------------------------------------------------
              Company type                    Initial         Annual
------------------------------------------------------------------------
Large non-towing company:
    CSO.................................        $150,000        $150,000
    CSO training........................           3,500           3,500
    Training of key crew................           5,000           5,000
    VSA.................................           8,000             400
    VSP.................................           8,000             400
                                         -----------------
        Total cost......................         174,500         159,300
                                         =================
Large towing company:
    CSO.................................        $150,000        $150,000
    CSO training........................           3,500           3,500
    Training of key crew................           5,000           5,000
    VSA.................................           1,600             100
    VSP.................................           1,600             100
                                         -----------------
        Total cost......................         161,700         158,700
                                         =================
Small non-towing company:
    CSO.................................         $37,500         $37,500
    CSO training........................           2,000           2,000
    Training of key crew................           3,500           3,500
    VSA.................................           4,000             200


[[Page 79793]]




    VSP.................................           4,000             200
                                         -----------------
        Total cost......................          51,000          43,400
                                         =================
Small towing company:
    CSO.................................         $37,500         $37,500
    CSO training........................           2,000           2,000
    Training of key crew................           3,500           3,500
    VSA.................................             800             100
    VSP.................................             800             100
                                         -----------------
        Total cost......................          44,600          43,200
------------------------------------------------------------------------


    To calculate total costs per company, we added the company-level 
costs (above) and the vessel-level costs (equipment, VSO, incremental 
VSA and VSP costs, drilling). Example calculations are presented below. 
The companies in these examples are good representations of the types 
of companies affected.
Example 1--U.S.-Flagged SOLAS Company
    Company A owns 2 freight ships, 4 industrial vessels, 20 OSVs, and 
4 research vessels, all of which are U.S.-flagged SOLAS vessels. The 
initial and annual costs for this company are presented in Table 33.


                             Table 33.--Example Cost for U.S.-Flagged SOLAS Company
----------------------------------------------------------------------------------------------------------------
                                                     Initial                                  Annual
              Cost              --------------------------------------------------------------------------------
                                     Number         Cost/item       Total cost       Cost/item      Total cost
----------------------------------------------------------------------------------------------------------------
Company (Table 32).............               1        $174,500        $174,500         $159,300        $159,300
Freight ships (Table 5)........               2          25,900          51,800           11,949          23,898
Industrial vessels (Table 31)..               4           9,900          39,600            7,199          28,796
OSVs (Table 27)................              20          13,800         276,000            6,984         139,680
Research vessels (Table 30)....               4          13,400          53,600            7,374          29,496
                                -----------------
    Total company cost.........  ..............  ..............         595,500   ..............         381,170
----------------------------------------------------------------------------------------------------------------


Example 2a--Large Non-Towing Company (No Passenger Vessels)
    Company B owns 19 MODUs and 25 OSVs (i.e., no passenger vessels). 
The initial and annual costs for this company are presented in Table 
34.


                              Table 34.--Example Cost For Large Non-Towing Company
                                             [No Passenger Vessels]
----------------------------------------------------------------------------------------------------------------
                                                             Initial                          Annual
              Cost                   Number     ----------------------------------------------------------------
                                                    Cost/item       Total cost       Cost/item      Total cost
----------------------------------------------------------------------------------------------------------------
Company (Table 32).............               1        $174,500        $174,500         $159,300        $159,300
MODUs (Table 26)...............              19          15,500         294,500            9,429         179,151
OSVs (Table 28)................              25          11,800         295,000            6,884         172,100
                                -----------------
    Total company cost.........  ..............  ..............         764,000   ..............         510,551
----------------------------------------------------------------------------------------------------------------


Example 2b--Large Non-Towing Company (With Passenger Vessels)
    Company C owns 9 ferries 100 GT or less carrying fewer than 500 
passengers, 11 ferries over 100 GT carrying more than 500 passengers, 
and 14 ferries over 100 GT carrying fewer than 500 passengers. The 
initial and annual costs for this company are presented in Table 35.


                              Table 35.--Example Cost For Large Non-Towing Company
                                            [With Passenger Vessels]
----------------------------------------------------------------------------------------------------------------
                                                             Initial                          Annual
              Cost                   Number     ----------------------------------------------------------------
                                                    Cost/item       Total cost       Cost/item      Total cost
----------------------------------------------------------------------------------------------------------------
Company (Table 32).............               1        $174,500        $174,500         $159,300        $159,300
Ferries, <= 100 GT, <= 500                    9          20,600         185,400            9,724          87,516
 pass. (Table 20)..............
Ferries,  100 GT,                 11          79,975         879,725           14,694         161,634
  500 pass. (Table
 23)...........................
Ferries,  100 GT, <=              14          35,100         491,400           10,449         146,286
 500 pass. (Table 24)..........
                                -----------------


[[Page 79794]]




    Total company cost.........  ..............  ..............       1,731,025   ..............         544,736
----------------------------------------------------------------------------------------------------------------


Example 3--Large Towing Company
    Company D owns 12 OSVs and 5 towboats. The initial and annual costs 
for this company are presented in Table 36.


                                Table 36.--Example Cost For Large Towing Company
----------------------------------------------------------------------------------------------------------------
                                                             Initial                          Annual
              Cost                   Number     ----------------------------------------------------------------
                                                    Cost/item       Total cost       Cost/item      Total cost
----------------------------------------------------------------------------------------------------------------
Company (Table 32).............               1        $161,700        $161,700         $158,700        $158,700
OSVs (Table 28)................              12          11,800         141,600            6,884          82,608
Towboats (Table 15)............               5           1,704           8,520               89             445
                                -----------------
    Total company cost.........  ..............  ..............         311,820   ..............         241,753
----------------------------------------------------------------------------------------------------------------


Example 4--Small Non-Towing Company
    Company E owns 3 ferries 100 GT or less carrying more than 500 
passengers and 6 ferries 100 GT or less carrying fewer than 500 
passengers. The initial and annual costs for this company are presented 
in Table 37.


                              Table 37.--Example Cost For Small Non-Towing Company
----------------------------------------------------------------------------------------------------------------
                                                             Initial                          Annual
              Cost                   Number     ----------------------------------------------------------------
                                                    Cost/item       Total cost       Cost/item      Total cost
----------------------------------------------------------------------------------------------------------------
Company (Table 32).............               1         $51,000         $51,000          $43,400         $43,400
Large ferries (Table 19).......               3          34,100         102,300           12,399          37,197
Small ferries (Table 20).......               6          20,600         123,600            9,724          58,344
                                -----------------
    Total company cost.........  ..............  ..............         276,900   ..............         138,941
----------------------------------------------------------------------------------------------------------------


Example 5--Small Towing Company
    Company F owns 1 freight barge, 6 tank barges, and 6 towboats. The 
initial and annual costs for this company are presented in Table 38.


                                Table 38.--Example Cost for Small Towing Company
----------------------------------------------------------------------------------------------------------------
                                                     Initial                                  Annual
              Cost              --------------------------------------------------------------------------------
                                     Number         Cost/item       Total cost       Cost/item      Total cost
----------------------------------------------------------------------------------------------------------------
Company (Table 32).............               1         $44,600         $44,600          $43,200         $43,200
Freight barges (Table 8).......               1               4               4                4               4
Tank barges (Table 12).........               6               4              24                4              24
Towboats (Table 15)............               6           1,704          10,224               89             534
                                -----------------
    Total company cost.........  ..............  ..............          54,852   ..............          43,762
----------------------------------------------------------------------------------------------------------------


Total National Cost of Vessel Security
    The national cost of vessel security is the sum of the individual 
cost estimated for each company affected. National cost is discounted 
to its PV at 7 percent (2003-2012). The national initial and annual 
cost is presented in Table 39.


                       Table 39.--Total National PV Cost for Vessel Security, In $Millions
                                      [2003-2012, 7 Percent discount rate]
----------------------------------------------------------------------------------------------------------------
                                                   U.S.-flagged
                                                       SOLAS         Domestic          Total         PV total
----------------------------------------------------------------------------------------------------------------
2003 (initial)..................................             $42            $146            $188            $188
2004 (annual)...................................              33             111             144             135
2005 (annual)...................................              33             111             144             126
2006 (annual)...................................              33             111             144             118
2007 (annual)...................................              33             111             144             110


[[Page 79795]]




2008 (annual)...................................              33             111             144             103
2009 (annual)...................................              33             111             144              96
2010 (annual)...................................              33             111             144              90
2011 (annual)...................................              33             111             144              84
2012 (annual)...................................              33             111             144              79
                                                 -----------------
    Total cost ($m).............................             339           1,145           1,484           1,129
----------------------------------------------------------------------------------------------------------------


    Table 40 presents the national cost for different elements of 
compliance for U.S.-flagged SOLAS and domestic vessels (these costs are 
not discounted).


                                Table 40.--Total National Initial and Annual Cost by Element of Compliance, In $Millions
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                       Initial                                              Annual
                                                --------------------------------------------------------------------------------------------------------
                      Cost                          U.S.-                                                U.S.-
                                                   flagged     Percent of    Domestic    Percent of     flagged     Percent of    Domestic     Percent
                                                    SOLAS        total                      total        SOLAS        total
--------------------------------------------------------------------------------------------------------------------------------------------------------
Equipment......................................          $10           24          $36           25            $1            3           $1            1
Drilling.......................................            0            0            0            0             2            6            7            6
VSO............................................            3            7           11            8             3            9           11           10
CSO, training..................................           25           60           89           61            26           79           91           82
Paperwork......................................            4            9           10            6             1            3            1            1
                                                --------------
    Total......................................           42          100          146          100            33          100          111          100
--------------------------------------------------------------------------------------------------------------------------------------------------------


    As shown, CSOs and training are the driving costs both initially 
and annually. In the initial year, equipment accounts for approximately 
25 percent of the total cost. Following implementation, drilling and 
VSO costs are a notable portion of the costs.


Facility Security


Summary


    Note: for definition of acronyms throughout this analysis, refer 
to the list at the beginning of the report.


    Implementing the ISPS Code could affect about 4,400 facilities.
    The estimated cost for U.S. facilities to implement the ISPS Code 
is PV $4.4 billion (2003 to 2012, 7 percent discount rate). 
Approximately PV $2.4 billion of this total is attributable to 
facilities engaged in the transfer of hazardous bulk liquids 
(petroleum, edible oils, and liquefied gases). The remaining PV $2.0 
billion is attributable to facilities that receive ships on 
international voyages or carry more than 149 passengers. During the 
initial year of compliance, the cost is attributable to purchasing 
equipment, hiring security officers, and preparing paperwork. The 
initial cost is an estimated $963 million (non-discounted, $478 million 
for the facilities with hazardous bulk liquids, $485 million for the 
other facilities). Following initial implementation, the annual cost is 
an estimated $535 million (non-discounted, $300 million for the 
facilities with hazardous bulk liquids, $235 million for the other 
facilities).
    Approximately 46 percent of the initial cost is for installing or 
upgrading equipment, 37 percent for hiring and training FSOs\2\, 13 
percent for hiring additional security guards, and 4 percent for 
paperwork (FSAs and FSPs). Following the first year, approximately 4 
percent of the annual cost is for O&M for equipment, 66 percent for 
FSOs, 23 percent for security guards, 7 percent for drills, and 
approximately 1 percent for paperwork (updating FSAs and FSPs). 
Installing or upgrading equipment and FSOs are the primary cost drivers 
for the cost of facility security.
---------------------------------------------------------------------------


    \2\ The ISPS Code provides requirements for ``Port Facilities.'' 
The Coast Guard, however, differentiates between ports anf 
facilities in domestic regulations. As a result, for the purposes of 
this cost analysis, the terms PFSO, PFSA, and PFSP have been 
replaced with FSO, FSA, and FSP for the facility security section.
---------------------------------------------------------------------------


    The paperwork burden for developing FSAs and FSPs is approximately 
465,000 hours during the initial year. In subsequent years, the annual 
burden is approximately 17,000 hours.


Analysis


Period of Analysis
    The period of analysis is 2003-2012 (10 years). Implementation will 
become effective in 2004, but we assume that companies will purchase 
equipment and develop security plans prior to the effective date. We 
assume, therefore, that initial costs will be incurred in 2003, and 
annual costs will be incurred each year 2004-2012.
Population Affected
    Implementing the ISPS Code would affect about 4,400 facilities that 
engage in the transfer of hazardous substances or that service vessels 
on international voyages. The facility population affected is presented 
in Table 41. To determine the number of facilities we used data from 
the U.S. Army Corps of Engineers, DOT's National Ferry Database, and 
the Coast Guard's MSMS database.


             Table 41.--Estimated Facility Population 1 2 3
------------------------------------------------------------------------
                                                                Percent
                     Facility                         Count       \4\
------------------------------------------------------------------------
Container and break-bulk..........................        263        6.0
Dry bulk..........................................        255        5.8
Hazardous bulk liquid.............................      2,718        6.2
Hazardous substance (other).......................        565       12.9
Other bulk liquid.................................        150        3.4
Ferry.............................................        306        7.0
Other passenger...................................        108        2.5
                                                   ------------
    Total.........................................      4,365     100.0
------------------------------------------------------------------------
\1\ Facilities that transfer, store, or otherwise contain hazardous
  cargoes.
\2\ Facilities servicing vessels that carry more than 149 passengers.
\3\ Facilities receiving ships on international voyages.
\4\ Sum may not add to total due to independent rounding.




[[Page 79796]]


    Container and break-bulk facilities include container, general 
cargo, and Ro-Ro facilities. Hazardous bulk liquid facilities include 
petroleum, liquefied gases, and edible oils. Other hazardous substances 
are dry hazardous cargoes specified in 33 CFR 126, 127, and 154. The 
cargoes are further discussed in 49 CFR 172 and 46 CFR 148.
    We recognize that not all facilities will incur the same cost for 
personnel salaries, hire the same number of security guards or spend 
the same hours in drafting FSAs and FSPs. For the purpose of this 
analysis we have divided the facility population in two. One group is 
composed of one third of all facilities and would pay high salaries, 
hire more guards, and spend more time drafting FSAs and FSPs than the 
other group composed of two thirds of the total population. Facilities 
in the first group are addressed in this analysis as ``A'' and 
facilities in the second group as ``B.''
Unit Cost Assumptions
Equipment
    Costs of equipment are based on internal Coast Guard data and 
market research. We estimate annual O&M cost for equipment is 5 percent 
of the purchase price. Not all facilities will install each piece of 
equipment. The unit costs for upgrading or installing equipment are 
presented in Table 42.


                    Table 42.--Unit Cost of Equipment
------------------------------------------------------------------------
                     Equipment                       Initial     Annual
------------------------------------------------------------------------
Hand-held radio...................................       $200        $10
Upgrading/installing gates........................    100,000      5,000
Upgrading/installing CCTV.........................    130,000      6,500
Upgrading/installing lights.......................    200,000     10,000
Upgrading/installing communications system........    300,000     15,000
Upgrading/installing fencing......................    500,000     25,000
------------------------------------------------------------------------


Personnel, Training, Drilling, and Planning
    Costs of personnel and training are based on extensive research and 
previous Coast Guard analyses that estimated training and planning 
costs.
    We assume that group A facilities will have a dedicated FSO while 
facilities in group B will have a part-time FSO (we estimate 0.25 or 
0.5 of a dedicated person depending on the type of facility). FSOs or 
key facility personnel will have training annually as refresher courses 
and to address potential employee turnover within a facility. We also 
assume that the cost of a full time FSO is $150,000 per year. The ISPS 
Code requires all FSOs to participate in an annual security exercise; 
for the purposes of this analysis, these costs have been accounted for 
in the ``Port Security'' section.
    The cost of a security guard was determined using the annual wage 
estimate from the 2001 National Occupation Employment and Wage 
Statistics published by the BLS. We took the annual salary for the 
upper 90th percentile of $28,660 per year and multiplied (or 
``loaded'') this estimate by an assumed average benefit multiplier of 
1.4 to create a wage that reflects current industry benefits and 
administrative costs paid by owners and operators. We assumed this 
higher-than-average wage reflects a full-time, permanent wage for 
skilled labor.
    Personnel and training costs will be incurred each year of the 
analysis. Drilling costs will be incurred quarterly, but not initially. 
Planning costs will be incurred initially and annually, with more costs 
incurred initially as facilities develop their security plans.
    We assume each hour of planning or drilling costs an average of 
$100/hour. This is a ``loaded'' labor rate, which means it includes the 
costs of benefits and other overhead costs. While some employees cost 
more than this and some cost less, we believe $100/hour is a reasonable 
average cost of the employees that would conduct this work. Drilling 
for all facilities will be conducted following initial implementation 
of the ISPS Code. We assume that conducting a quarterly drill would 
take about 2 hours per facility. We also assume that group A facilities 
will use 20 people in conducting the drill and that group B facilities 
will use 5 people. Table 43 summarizes personnel costs.


                                                            Table 43.--Unit Cost of Personnel
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                      Group A                    Group B dry bulk                  Group B other
                        Personnel                        -----------------------------------------------------------------------------------------------
                                                              Initial         Annual          Initial         Annual          Initial         Annual
--------------------------------------------------------------------------------------------------------------------------------------------------------
FSO.....................................................        $150,000        $150,000         $75,000         $75,000         $37,500         $37,500
Security guard..........................................          40,000          40,000          40,000          40,000          40,000          40,000
FSA.....................................................           8,000             400           4,000             100           4,000             100
FSP.....................................................           8,000             400           4,000             100           4,000             100
Training................................................           5,000           5,000           3,500           3,500           3,500           3,500
Quarterly drill.........................................  ..............           4,000  ..............           1,000  ..............           1,000
--------------------------------------------------------------------------------------------------------------------------------------------------------


Facility costs
    Facilities differ greatly from one another, and they must do a 
variety of activities to implement the ISPS Code. Within group A or 
group B facilities, we assume that a facility will have to upgrade/
install equipment based on cargo received and current level of 
compliance with the ISPS Code. For example, to comply with the ISPS 
Code a facility may upgrade/install CCTV, lights, or fencing, but it 
does not have to do all three. For illustration purposes, Tables 44 and 
45 present potential costs for a non-specific group A facility and a 
non-specific group B facility.


                                         Table 44.--Initial and Annual Cost for a Non-specific Group A Facility
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                            Initial                                                      Annual
              Item               -----------------------------------------------------------------------------------------------------------------------
                                         Number               Cost/item          Total cost           Number              Cost/item         Total cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Communications system...........  1...................  $300,000............        $300,000   1...................  $15,000............         $15,000
Gates...........................  1...................  100,000.............         100,000   1...................  5,000..............           5,000
Hand-held radio.................  18..................  200.................           3,600   18..................  10.................             180


[[Page 79797]]




Security guards.................  9...................  40,000..............         360,000   9...................  40,000.............         360,000
FSO.............................  1...................  150,000.............         150,000   1...................  150,000............         150,000
Training........................  1...................  5,000...............           5,000   1...................  5,000..............           5,000
FSA.............................  80 hrs..............  100/hr..............           8,000   4 hrs...............  100/hr.............             400
FSP.............................  80 hrs..............  100/hr..............           8,000   4 hrs...............  100/hr.............             400
Quarterly drills................  ....................  ....................  ...............  4...................  4,000..............          16,000
                                 -----------------------
    Base cost per facility......  ....................  ....................         934,600   ....................  ...................         551,980
                                 =======================
Cost per facility with CCTV.....  1...................  130,000.............      $1,064,600   1...................  6,500..............        $558,480
Cost per facility with lights...  1...................  200,000.............       1,134,600   1...................  10,000.............         561,980
Cost per facility with fencing..  1...................  500,000.............       1,434,600   1...................  25,000.............         576,980
--------------------------------------------------------------------------------------------------------------------------------------------------------




                                         Table 45.--Initial and Annual Cost for a Non-Specific Group B Facility
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                            Initial                                                      Annual
              Item               -----------------------------------------------------------------------------------------------------------------------
                                         Number               Cost/item          Total cost           Number              Cost/item         Total cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Communications system...........  1...................  $300,000............        $300,000   1...................  $15,000............         $15,000
Gates...........................  1...................  100,000.............         100,000   1...................  5,000..............           5,000
Hand-held radio.................  18..................  200.................           3,600   18..................  10.................             180
Security guards.................  3...................  40,000..............         120,000   3...................  40,000.............         120,000
FSO.............................  1...................  37,500..............          37,500   1...................  37,500.............          37,500
Training........................  1...................  3,500...............           3,500   1...................  3,500..............           3,500
FSA.............................  40 hrs..............  100/hr..............           4,000   1 hr................  100/hr.............             100
FSP.............................  40 hrs..............  100/hr..............           4,000   1 hr................  100/hr.............             100
Quarterly drills................  ....................  ....................  ...............  4...................  1,000..............           4,000
                                 -----------------------
Base cost per facility..........  ....................  ....................         572,600   ....................  ...................         185,380
Cost per facility with CCTV.....  1...................  130,000.............         702,600   1...................  6,500..............         191,880
Cost per facility with lights...  1...................  200,000.............         772,600   1...................  10,000.............         195,380
Cost per facility with fencing..  1...................  500,000.............       1,072,600   1...................  25,000.............         210,380
--------------------------------------------------------------------------------------------------------------------------------------------------------


    The estimated percentage of facilities that would need to purchase, 
install, or upgrade security measures is presented in Table 46. The 
figure in each cell represents the percentage of facilities of that 
type that would install or employ the various security items.


                 Table 46.--Estimated Percentage of Facilities That Will Purchase or Enhance Security Measures, by Facility Type 1, 2, 3
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                     Container,                       Haz. bulk                      Other bulk                                Other
               Item                  break-bulk       Dry bulk         liquid      Haz. sub other      liquid              Ferry             passenger
--------------------------------------------------------------------------------------------------------------------------------------------------------
Hand-held radio..................               5              70               5               5              10  5                                   5
Gates............................              30              70              10               5              10  60 (A), 80 (B)                      5
CCTV.............................               5              10               5               5              10  10                                  5
Lights...........................               5              60               5               5              10  10                                  5
Coms system......................               5               0               5               5              10  0                                   5
Fencing..........................               5              20               5               5              10  50                                  5
Security guards..................              30              70              10               5              10  60 (A), 80 (B)                     5
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Facilities that transfer, store, or otherwise contain hazardous cargoes.
\2\ Facilities servicing vessels that carry more than 149 passengers.
\3\ Facilities receiving ships on international voyages.


    Tables 47 through 60 present initial and annual costs of complying 
with the ISPS Code for different types of facilities.


                                   Table 47.--Initial and Annual Cost for Container or Break-Bulk Facilities, Group A
                                                                     [87 Facilities]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                           Number (%)                        Initial                                          Annual
                  Item                    estimated to  ------------------------------------------------------------------------------------------------
                                         purchase/draft      Number         Cost/item       Total cost        Number         Cost/item      Total cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Coms system............................          4 (5%)               1        $300,000      $1,200,000                1         $15,000         $60,000
Gates..................................        26 (30%)               1         100,000       2,600,000                1           5,000         130,000
Hand-held radio........................          4 (5%)              18             200          14,400               18              10             720
CCTV...................................          4 (5%)               1         130,000         520,000                1           6,500          26,000


[[Page 79798]]




Lights.................................          4 (5%)               1         200,000         800,000                1          10,000          40,000
Fencing................................          4 (5%)               1         500,000       2,000,000                1          25,000         100,000
Security guards........................        26 (30%)              15          40,000      15,600,000               15          40,000      15,600,000
FSO....................................       87 (100%)               1         150,000      13,050,000                1         150,000      13,050,000
Training...............................       87 (100%)               1           5,000         435,000                1           5,000         435,000
FSA....................................       87 (100%)               1           8,000         696,000                1             400          34,800
FSP....................................       87 (100%)               1           8,000         696,000                1             400          34,800
Quarterly drills.......................       87 (100%)  ..............  ..............  ...............               1          16,000       1,392,000
                                        -----------------
    Total cost.........................  ..............  ..............  ..............      37,611,400   ..............  ..............      30,903,320
--------------------------------------------------------------------------------------------------------------------------------------------------------




                                   Table 48.--Initial and Annual Cost for Container or Break-Bulk Facilities, Group B
                                                                    [176 Facilities]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                           Number (%)                        Initial                                          Annual
                  Item                    estimated to  ------------------------------------------------------------------------------------------------
                                         purchase/draft      Number         Cost/item       Total cost        Number         Cost/item      Total cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Coms system............................          9 (5%)               1        $300,000      $2,700,000                1         $15,000        $135,000
Gates..................................        53 (30%)               1         100,000       5,300,000                1           5,000         265,000
Hand-held radio........................          9 (5%)              18             200          32,400               18              10           1,620
CCTV...................................          9 (5%)               1         130,000       1,170,000                1           6,500          58,500
Lights.................................          9 (5%)               1         200,000       1,800,000                1          10,000          90,000
Fencing................................          9 (5%)               1         500,000       4,500,000                1          25,000         225,000
Security guards........................        53 (30%)               4          40,000       8,480,000                4          40,000       8,480,000
FSO....................................      176 (100%)               1          37,500       6,600,000                1          37,500       6,600,000
Training...............................      176 (100%)               1           3,500         616,000                1           3,500         616,000
FSA....................................      176 (100%)               1           4,000         704,000                1             100          17,600
FSP....................................      176 (100%)               1           4,000         704,000                1             100          17,600
Quarterly drills.......................      176 (100%)  ..............  ..............  ...............               1           4,000         704,000
                                        -----------------
    Total cost.........................  ..............  ..............  ..............      32,606,400   ..............  ..............      17,210,320
--------------------------------------------------------------------------------------------------------------------------------------------------------




                                           Table 49.--Initial and Annual Cost for Dry Bulk Facilities, Group A
                                                                     [84 Facilities]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                           Number (%)                        Initial                                          Annual
                  Item                    estimated to  ------------------------------------------------------------------------------------------------
                                         purchase/draft      Number         Cost/item       Total cost        Number         Cost/item      Total cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Gates..................................        59 (70%)               1        $100,000      $5,900,000                1          $5,000        $295,000
Hand-held radio........................        59 (70%)               2             200          23,600                2              10           1,180
CCTV...................................         8 (10%)               1         130,000       1,040,000                1           6,500          52,000
Lights.................................        50 (60%)               1         200,000      10,000,000                1          10,000         500,000
Fencing................................        17 (20%)               1         500,000       8,500,000                1          25,000         425,000
Security guards........................        59 (70%)               2          40,000       4,720,000                2          40,000       4,720,000
FSO....................................       84 (100%)               1         150,000      12,600,000                1         150,000      12,600,000
Training...............................       84 (100%)               1           5,000         420,000                1           5,000         420,000
FSA....................................       84 (100%)               1           8,000         672,000                1             400          33,600
FSP....................................       84 (100%)               1           8,000         672,000                1             400          33,600
Quarterly drills.......................       84 (100%)  ..............  ..............  ...............               1          16,000       1,344,000
                                        -----------------
    Total cost.........................  ..............  ..............  ..............      44,547,600   ..............  ..............      20,424,380
--------------------------------------------------------------------------------------------------------------------------------------------------------




                                           Table 50.--Initial and Annual Cost for Dry Bulk Facilities, Group B
                                                                    [171 Facilities]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                           Number (%)                        Initial                                          Annual
                  Item                    estimated to  ------------------------------------------------------------------------------------------------
                                         purchase/draft      Number         Cost/item       Total cost        Number         Cost/item      Total cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Gates..................................       120 (70%)               1        $100,000     $12,000,000                1          $5,000        $600,000
Hand-held radio........................       120 (70%)               2             200          48,000                2              10           2,400
CCTV...................................        17 (10%)               1         130,000       2,210,000                1           6,500         110,500
Lights.................................       103 (60%)               1         200,000      20,600,000                1          10,000       1,030,000
Fencing................................        34 (20%)               1         500,000      17,000,000                1          25,000         850,000


[[Page 79799]]




Security guards........................       120 (70%)               1          40,000       4,800,000                1          40,000       4,800,000
FSO....................................      171 (100%)               1          75,000      12,825,000                1          75,000      12,825,000
Training...............................      171 (100%)               1           3,500         598,500                1           3,500         598,500
FSA....................................      171 (100%)               1           4,000         684,000                1             100          17,100
FSP....................................      171 (100%)               1           4,000         684,000                1             100          17,100
Quarterly drills.......................      171 (100%)  ..............  ..............  ...............               1           4,000         684,000
                                        -----------------
    Total cost.........................  ..............  ..............  ..............      71,449,500   ..............  ..............      21,534,600
--------------------------------------------------------------------------------------------------------------------------------------------------------




                                    Table 51.--Initial and Annual Cost for Hazardous Bulk Liquid Facilities, Group A
                                                                    [897 Facilities]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                           Number (%)                        Initial                                          Annual
                  Item                    estimated to  ------------------------------------------------------------------------------------------------
                                         purchase/draft      Number         Cost/item       Total cost        Number         Cost/item      Total cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Coms system............................         45 (5%)               1        $300,000     $13,500,000                1         $15,000        $675,000
Gates..................................        90 (10%)               1         100,000       9,000,000                1           5,000         450,000
Hand-held radio........................         45 (5%)              18             200         162,000               18              10           8,100
CCTV...................................         45 (5%)               1         130,000       5,850,000                1           6,500         292,500
Lights.................................         45 (5%)               1         200,000       9,000,000                1          10,000         450,000
Fencing................................         45 (5%)               1         500,000      22,500,000                1          25,000       1,125,000
Security guards........................        90 (10%)               9          40,000      32,400,000                9          40,000      32,400,000
FSO....................................      897 (100%)               1         150,000     134,550,000                1         150,000     134,550,000
Training...............................      897 (100%)               1           5,000       4,485,000                1           5,000       4,485,000
FSA....................................      897 (100%)               1           8,000       7,176,000                1             400         358,800
FSP....................................      897 (100%)               1           8,000       7,176,000                1             400         358,800
Quarterly drills.......................      897 (100%)  ..............  ..............  ...............               1          16,000      14,352,000
                                        -----------------
    Total cost.........................  ..............  ..............  ..............     245,799,000   ..............  ..............     189,505,200
--------------------------------------------------------------------------------------------------------------------------------------------------------




                                    Table 52.--Initial and Annual Cost for Hazardous Bulk Liquid Facilities, Group B
                                                                   [1,821 Facilities]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                           Number (%)                        Initial                                          Annual
                  Item                    estimated to  ------------------------------------------------------------------------------------------------
                                         purchase/draft      Number         Cost/item       Total cost        Number         Cost/item      Total cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Coms system............................         91 (5%)               1        $300,000     $27,300,000                1         $15,000      $1,365,000
Gates..................................       182 (10%)               1         100,000      18,200,000                1           5,000         910,000
Hand-held radio........................         91 (5%)              18             200         327,600               18              10          16,380
CCTV...................................         91 (5%)               1         130,000      11,830,000                1           6,500         591,500
Lights.................................         91 (5%)               1         200,000      18,200,000                1          10,000         910,000
Fencing................................         91 (5%)               1         500,000      45,500,000                1          25,000       2,275,000
Security guards........................       182 (10%)               3          40,000      21,840,000                3          40,000      21,840,000
FSO....................................    1,821 (100%)               1          37,500      68,287,500                1          37,500      68,287,500
Training...............................    1,821 (100%)               1           3,500       6,373,500                1           3,500       6,373,500
FSA....................................    1,821 (100%)               1           4,000       7,284,000                1             100         182,100
FSP....................................    1,821 (100%)               1           4,000       7,284,000                1             100         182,100
Quarterly drills.......................    1,821 (100%)  ..............  ..............  ...............               1           4,000       7,284,000
                                        -----------------
    Total cost.........................  ..............  ..............  ..............     232,426,600   ..............  ..............     110,217,080
--------------------------------------------------------------------------------------------------------------------------------------------------------




                                 Table 53.--Initial and Annual Cost for Hazardous Substance (Other) Facilities, Group A
                                                                    [186 Facilities]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                           Number (%)                        Initial                                          Annual
                  Item                    estimated to  ------------------------------------------------------------------------------------------------
                                         purchase/draft      Number         Cost/item       Total cost        Number         Cost/item      Total cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Coms system............................          9 (5%)               1        $300,000      $2,700,000                1         $15,000        $135,000
Gates..................................          9 (5%)               1         100,000         900,000                1           5,000          45,000
Hand-held radio........................          9 (5%)              18             200          32,400               18              10           1,620
CCTV...................................          9 (5%)               1         130,000       1,170,000                1           6,500          58,500
Lights.................................          9 (5%)               1         200,000       1,800,000                1          10,000          90,000
Fencing................................          9 (5%)               1         500,000       4,500,000                1          25,000         225,000


[[Page 79800]]




Security guards........................          9 (5%)               9          40,000       3,240,000                9          40,000       3,240,000
FSO....................................      186 (100%)               1         150,000      27,900,000                1         150,000      27,900,000
Training...............................      186 (100%)               1           5,000         930,000                1           5,000         930,000
FSA....................................      186 (100%)               1           8,000       1,488,000                1             400          74,400
FSP....................................      186 (100%)               1           8,000       1,488,000                1             400          74,400
Quarterly drills.......................      186 (100%)  ..............  ..............  ...............               1          16,000       2,976,000
                                        -----------------
    Total cost.........................  ..............  ..............  ..............      46,148,400   ..............  ..............      35,749,920
--------------------------------------------------------------------------------------------------------------------------------------------------------




                                 Table 54.--Initial and Annual Cost for Hazardous Substance (Other) Facilities, Group B
                                                                    [379 Facilities]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                           Number (%)                        Initial                                          Annual
                  Item                    estimated to  ------------------------------------------------------------------------------------------------
                                         purchase/draft      Number         Cost/item       Total cost        Number         Cost/item      Total cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Coms system............................         19 (5%)               1        $300,000      $5,700,000                1         $15,000        $285,000
Gates..................................         19 (5%)               1         100,000       1,900,000                1           5,000          95,000
Hand-held radio........................         19 (5%)              18             200          68,400               18              10           3,420
CCTV...................................         19 (5%)               1         130,000       2,470,000                1           6,500         123,500
Lights.................................         19 (5%)               1         200,000       3,800,000                1          10,000         190,000
Fencing................................         19 (5%)               1         500,000       9,500,000                1          25,000         475,000
Security guards........................         19 (5%)               3          40,000       2,280,000                3          40,000       2,280,000
FSO....................................      379 (100%)               1          37,500      14,212,500                1          37,500      14,212,500
Training...............................      379 (100%)               1           3,500       1,326,500                1           3,500       1,326,500
FSA....................................      379 (100%)               1           4,000       1,516,000                1             100          37,900
FSP....................................      379 (100%)               1           4,000       1,516,000                1             100          37,900
Quarterly drills.......................      379 (100%)  ..............  ..............  ...............               1           4,000       1,516,000
                                        -----------------
    Total cost.........................  ..............  ..............  ..............      44,289,400   ..............  ..............      20,582,720
--------------------------------------------------------------------------------------------------------------------------------------------------------




                              Table 55.--Initial and Annual Cost for Other Bulk Liquid Facilities, Group A (50 Facilities)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                           Number (%)                        Initial                                          Annual
                  Item                    estimated to  ------------------------------------------------------------------------------------------------
                                         purchase/draft      Number         Cost/item       Total cost        Number         Cost/item      Total cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Coms system............................         5 (10%)               1        $300,000      $1,500,000                1         $15,000         $75,000
Gates..................................         5 (10%)               1         100,000         500,000                1           5,000          25,000
Hand-held radio........................         5 (10%)              18             200          18,000               18              10             900
CCTV...................................         5 (10%)               1         130,000         650,000                1           6,500          32,500
Lights.................................         5 (10%)               1         200,000       1,000,000                1          10,000          50,000
Fencing................................         5 (10%)               1         500,000       2,500,000                1          25,000         125,000
Security guards........................         5 (10%)               2          40,000         400,000                2          40,000         400,000
FSO....................................       50 (100%)               1         150,000       7,500,000                1         150,000       7,500,000
Training...............................       50 (100%)               1           5,000         250,000                1           5,000         250,000
FSA....................................       50 (100%)               1           8,000         400,000                1             400          20,000
FSP....................................       50 (100%)               1           8,000         400,000                1             400          20,000
Quarterly drills.......................       50 (100%)  ..............  ..............  ...............               1          16,000         800,000
                                        -----------------
    Total cost.........................  ..............  ..............  ..............      15,118,000   ..............  ..............       9,298,400
--------------------------------------------------------------------------------------------------------------------------------------------------------




                                      Table 56.--Initial and Annual Cost for Other Bulk Liquid Facilities, Group B
                                                                    [100 Facilities]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                           Number (%)                        Initial                                          Annual
                  Item                    estimated to  ------------------------------------------------------------------------------------------------
                                         purchase/draft      Number         Cost/item       Total cost        Number         Cost/item      Total cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Coms system............................        10 (10%)               1        $300,000      $3,000,000                1         $15,000        $150,000
Gates..................................        10 (10%)               1         100,000       1,000,000                1           5,000          50,000
Hand-held radio........................        10 (10%)              18             200          36,000               18              10           1,800
CCTV...................................        10 (10%)               1         130,000       1,300,000                1           6,500          65,000
Lights.................................        10 (10%)               1         200,000       2,000,000                1          10,000         100,000
Fencing................................        10 (10%)               1         500,000       5,000,000                1          25,000         250,000
Security guards........................        10 (10%)               1          40,000         400,000                1          40,000         400,000


[[Page 79801]]




FSO....................................      100 (100%)               1          75,000       7,500,000                1          75,000       7,500,000
Training...............................      100 (100%)               1           3,500         350,000                1           3,500         350,000
FSA....................................      100 (100%)               1           4,000         400,000                1             100          10,000
FSP....................................      100 (100%)               1           4,000         400,000                1             100          10,000
Quarterly drills.......................      100 (100%)  ..............  ..............  ...............               1           4,000         400,000
                                        -----------------
    Total cost.........................  ..............  ..............  ..............      21,386,000   ..............  ..............       9,286,800
--------------------------------------------------------------------------------------------------------------------------------------------------------




                                             Table 57.--Initial and Annual Cost for Ferry Terminals, Group A
                                                                    [101 Facilities]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                           Number (%)                        Initial                                          Annual
                  Item                    estimated to  ------------------------------------------------------------------------------------------------
                                         purchase/draft      Number         Cost/item       Total cost        Number         Cost/item      Total cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Gates..................................        61 (60%)               1        $100,000      $6,100,000                1          $5,000        $305,000
Hand-held radio........................          5 (5%)              12             200          12,000               12              10             600
CCTV...................................        10 (10%)               1         130,000       1,300,000                1           6,500          65,000
Lights.................................        10 (10%)               1         200,000       2,000,000                1          10,000         100,000
Fencing................................        51 (50%)               1         500,000      25,500,000                1          25,000       1,275,000
Security guards........................        61 (60%)               6          40,000      14,640,000                6          40,000      14,640,000
FSO....................................      101 (100%)               1         150,000      15,150,000                1         150,000      15,150,000
Training...............................      101 (100%)               1           5,000         505,000                1           5,000         505,000
FSA....................................      101 (100%)               1           8,000         808,000                1             400          40,400
FSP....................................      101 (100%)               1           8,000         808,000                1             400          40,400
Quarterly drills.......................      101 (100%)  ..............  ..............  ...............               1          16,000       1,616,000
                                        -----------------
    Total cost.........................  ..............  ..............  ..............      66,823,000   ..............  ..............      33,737,400
--------------------------------------------------------------------------------------------------------------------------------------------------------




                                             Table 58.--Initial and Annual Cost for Ferry Terminals, Group B
                                                                    [205 Facilities]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                           Number (%)                        Initial                                          Annual
                  Item                    estimated to  ------------------------------------------------------------------------------------------------
                                         purchase/draft      Number         Cost/item       Total cost        Number         Cost/item      Total cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Gates..................................       164 (80%)               1         $30,000       4,920,000                1          $1,500        $246,000
Hand-held radio........................         10 (5%)              12             200          24,000               12              10           1,200
CCTV...................................        21 (10%)               1         130,000       2,730,000                1           6,500         136,500
Lights.................................        21 (10%)               1         200,000       4,200,000                1          10,000         210,000
Fencing................................       103 (50%)               1         500,000      51,500,000                1          25,000       2,575,000
Security guards........................       164 (80%)               2          40,000      13,120,000                2          40,000      13,120,000
FSO....................................      205 (100%)               1          37,500       7,687,500                1          37,500       7,687,500
Training...............................      205 (100%)               1           3,500         717,500                1           3,500         717,500
FSA....................................      205 (100%)               1           4,000         820,000                1             100          20,500
FSP....................................      205 (100%)               1           4,000         820,000                1             100          20,500
Quarterly drills.......................      205 (100%)  ..............  ..............  ...............               1           4,000         820,000
                                        -----------------
    Total cost.........................  ..............  ..............  ..............      86,539,000   ..............  ..............      25,554,700
--------------------------------------------------------------------------------------------------------------------------------------------------------




                                           Table 59.--Initial and Annual Cost for Passenger Terminals, Group A
                                                                     [36 Facilities]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                           Number (%)                        Initial                                          Annual
                  Item                    estimated to  ------------------------------------------------------------------------------------------------
                                         purchase/draft      Number         Cost/item       Total cost        Number         Cost/item      Total cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Coms system............................          2 (5%)               1        $300,000        $600,000                1         $15,000         $30,000
Gates..................................          2 (5%)               1         100,000         200,000                1           5,000          10,000
Hand-held radio........................          2 (5%)              18             200           7,200               18              10             360
CCTV...................................          2 (5%)               1         130,000         260,000                1           6,500          13,000
Lights.................................          2 (5%)               1         200,000         400,000                1          10,000          20,000
Fencing................................          2 (5%)               1         500,000       1,000,000                1          25,000          50,000
Security guards........................          2 (5%)              15          40,000       1,200,000               15          40,000       1,200,000
FSO....................................       36 (100%)               1         150,000       5,400,000                1         150,000       5,400,000
Training...............................       36 (100%)               1           5,000         180,000                1           5,000         180,000


[[Page 79802]]




FSA....................................       36 (100%)               1           8,000         288,000                1             400          14,400
FSP....................................       36 (100%)               1           8,000         288,000                1             400          14,400
Quarterly drills.......................       36 (100%)  ..............  ..............  ...............               1          16,000         576,000
                                        -----------------
    Total cost.........................  ..............  ..............  ..............       9,823,200   ..............  ..............       7,508,160
--------------------------------------------------------------------------------------------------------------------------------------------------------




                                           Table 60.--Initial and Annual Cost for Passenger Terminals, Group B
                                                                     [72 Facilities]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                           Number (%)                        Initial                                          Annual
                  Item                    estimated to  ------------------------------------------------------------------------------------------------
                                         purchase/draft      Number         Cost/item       Total cost        Number         Cost/item      Total cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Coms system............................          4 (5%)               1        $300,000      $1,200,000                1         $15,000         $60,000
Gates..................................          4 (5%)               1         100,000         400,000                1           5,000          20,000
Hand-held radio........................          4 (5%)              18             200          14,400               18              10             720
CCTV...................................          4 (5%)               1         130,000         520,000                1           6,500          26,000
Lights.................................          4 (5%)               1         200,000         800,000                1          10,000          40,000
Fencing................................          4 (5%)               1         500,000       2,000,000                1          25,000         100,000
Security guards........................          4 (5%)               4          40,000         640,000                4          40,000         640,000
FSO....................................       72 (100%)               1          37,500       2,700,000                1          37,500       2,700,000
Training...............................       72 (100%)               1           3,500         252,000                1           3,500         252,000
FSA....................................       72 (100%)               1           4,000         288,000                1             100           7,200
FSP....................................       72 (100%)               1           4,000         288,000                1             100           7,200
Quarterly drills.......................       72 (100%)  ..............  ..............  ...............               1           4,000         288,000
                                        -----------------
    Total cost.........................  ..............  ..............  ..............       9,102,400   ..............  ..............       4,141,120
--------------------------------------------------------------------------------------------------------------------------------------------------------


    Example cost calculations for different facility owners are 
presented below. The companies in these examples are good 
representations of the types of companies affected.
Example 1--Ferry Terminal Owner
    Company A owns 11 group A and 21 group B terminals. The estimated 
costs for this company are presented in Table 61.


                                                    Table 61.--Example Cost for Ferry Terminal Owner
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                           Number (%)                        Initial                                          Annual
                  Item                    estimated to  ------------------------------------------------------------------------------------------------
                                         purchase/draft      Number         Cost/item       Total cost        Number         Cost/item      Total cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Group A terminals:
    Gates..............................         7 (60%)               1        $100,000        $700,000                1          $5,000         $35,000
    Hand-held radio....................          1 (5%)              12             200           2,400               12              10             120
    CCTV...............................         1 (10%)               1         130,000         130,000                1           6,500           6,500
    Lights.............................         1 (10%)               1         200,000         200,000                1          10,000          10,000
    Fencing............................         6 (10%)               1         500,000       3,000,000                1        25,000 1          50,000
    Security guards....................         7 (60%)               6          40,000       1,680,000                2          40,000       1,680,000
    FSO................................       11 (100%)               1         150,000       1,650,000                1         150,000       1,650,000
    Training...........................       11 (100%)               1           5,000          55,000                1           5,000          55,000
    FSA................................       11 (100%)               1           8,000          88,000                1             400           4,400
    FSP................................       11 (100%)               1           8,000          88,000                1             400           4,400
    Quarterly drills...................       11 (100%)  ..............  ..............  ...............               1          16,000         176,000
                                        -----------------
        Subtotal.......................  ..............  ..............  ..............       7,593,400   ..............  ..............       3,771,420
Group B terminals:
    Gates..............................        17 (80%)               1          30,000         510,000                1          15,000          25,500
    Hand-held radio....................          1 (5%)              12             200           2,400               12              10             120
    CCTV...............................         2 (10%)               1         130,000         260,000                1           6,500          13,000
    Lights.............................         2 (10%)               1         200,000         400,000                1          10,000          20,000
    Fencing............................        11 (50%)               1         500,000       5,500,000                1          25,000         275,000
    Security guards....................        17 (80%)               2          40,000       1,360,000                2          40,000       1,360,000
    FSO................................       21 (100%)               1          37,500         787,500                1          37,500         787,500
    Training...........................       21 (100%)               1           3,500          73,500                1           3,500          73,500
    FSA................................       21 (100%)               1           4,000          84,000                1             100           2,100
    FSP................................       21 (100%)               1           4,000          84,000                1             100           2,100
    Quarterly drills...................       21 (100%)  ..............  ..............  ...............               1           4,000          84,000
                                        -----------------


[[Page 79803]]




        Subtotal.......................  ..............  ..............  ..............       9,061,400   ..............  ..............       2,642,820
                                        =================
            Grand total................  ..............  ..............  ..............      16,654,800   ..............  ..............       6,414,240
--------------------------------------------------------------------------------------------------------------------------------------------------------


Example 2--Dry Bulk Facility Owner
    Company B owns 7 group A and 13 group B dry bulk facilities. The 
estimated costs for this company are presented in Table 62.


                                                   Table 62.--Example Cost for Dry Bulk Facility Owner
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                           Number (%)                        Initial                                          Annual
                  Item                    estimated to  ------------------------------------------------------------------------------------------------
                                         purchase/draft      Number         Cost/item       Total cost        Number         Cost/item      Total cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Group A facilities:
    Gates..............................         5 (70%)               1        $100,000        $500,000                1          $5,000         $25,000
    Hand-held radio....................         5 (70%)               2             200           2,000                2              10             100
    CCTV...............................         1 (10%)               1         130,000         130,000                1           6,500           6,500
    Lights.............................         4 (60%)               1         200,000         800,000                1          10,000          40,000
    Fencing............................         1 (20%)               1         500,000         500,000                1          25,000          25,000
    Security guards....................         5 (70%)               2          40,000         400,000                2          40,000         400,000
    FSO................................        7 (100%)               1         150,000       1,050,000                1         150,000       1,050,000
    Training...........................        7 (100%)               1           5,000          35,000                1           5,000          35,000
    FSA................................        7 (100%)               1           8,000          56,000                1             400           2,800
    FSP................................        7 (100%)               1           8,000          56,000                1             400           2,800
    Quarterly drills...................        7 (100%)  ..............  ..............  ...............               1          16,000         112,000
                                        -----------------
        Subtotal.......................  ..............  ..............  ..............       3,529,000   ..............  ..............       1,699,200
Group B facilities:
    Gates..............................         9 (70%)               1        $100,000        $900,000                1          $1,500         $45,000
    Hand-held radio....................         9 (70%)               2             200           3,600                2              10             180
    CCTV...............................         1 (10%)               1         130,000         130,000                1           6,500           6,500
    Lights.............................         8 (60%)               1         200,000       1,600,000                1          10,000          80,000
    Fencing............................         3 (20%)               1         500,000       1,500,000                1          25,000          75,000
    Security guards....................         9 (70%)               1          40,000         360,000                1          40,000         360,000
    FSO................................       13 (100%)               1          75,000         975,000                1          75,000         975,000
    Training...........................       13 (100%)               1           3,500          45,500                1           3,500          45,500
    FSA................................       13 (100%)               1           4,000          52,000                1             100           1,300
    FSP................................       13 (100%)               1           4,000          52,000                1             100           1,300
    Quarterly drills...................       13 (100%)  ..............  ..............  ...............               1           4,000          52,000
                                        -----------------
        Subtotal.......................  ..............  ..............  ..............       5,618,100   ..............  ..............       1,641,780
                                        =================
            Grand total................  ..............  ..............  ..............       9,147,100   ..............  ..............       3,340,980
--------------------------------------------------------------------------------------------------------------------------------------------------------


Example 3--Petroleum Facility Owner
    Company C owns 7 group A and 13 group B petroleum facilities. The 
estimated costs for this company are presented in Table 63.


                                                  Table 63.--Example Cost for Petroleum Facility Owner
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                           Number (%)                        Initial                                          Annual
                  Item                    estimated to  ------------------------------------------------------------------------------------------------
                                         purchase/draft      Number         Cost/item       Total cost        Number         Cost/item      Total cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Group A facilities:
    Gates..............................         1 (10%)               1        $100,000        $100,000                1          $5,000          $5,000
    Security guards....................         1 (10%)               9          40,000         360,000                9          40,000         360,000
    FSO................................        7 (100%)               1         150,000       1,050,000                1         150,000       1,050,000
    Training...........................        7 (100%)               1           5,000          35,000                1           5,000          35,000
    FSA................................        7 (100%)               1           8,000          56,000                1             400           2,800
    FSP................................        7 (100%)               1           8,000          56,000                1             400           2,800


[[Page 79804]]




    Quarterly drills...................        7 (100%)  ..............  ..............  ...............               1          16,000         112,000
                                        -----------------
        Subtotal.......................  ..............  ..............  ..............       1,657,000   ..............  ..............       1,567,600
Group B facilities:
    Coms system........................          1 (5%)               1        $300,000        $300,000                1         $15,000         $15,000
    Gates..............................         1 (10%)               1         100,000         100,000                1            5000           5,000
    Hand-held radio....................          1 (5%)              18             200           3,600               18              10             180
    CCTV...............................          1 (5%)               1         130,000         130,000                1           6,500           6,500
    Lights.............................          1 (5%)               1         200,000         200,000                1          10,000          10,000
    Fencing............................          1 (5%)               1         500,000         500,000                1          25,000          25,000
    Security guards....................         1 (10%)               3          40,000         120,000                3          40,000         120,000
    FSO................................       13 (100%)               1          37,500         487,500                1          37,500         487,500
    Training...........................       13 (100%)               1           3,500          45,500                1           3,500          45,500
    FSA................................       13 (100%)               1           4,000          52,000                1             100           1,300
    FSP................................       13 (100%)               1           4,000          52,000                1             100           1,300
    Quarterly drills...................       13 (100%)  ..............  ..............  ...............               1           4,000          52,000
                                        -----------------
    Subtotal...........................  ..............  ..............  ..............       1,990,600   ..............  ..............         769,280
                                        =================
        Grand total....................  ..............  ..............  ..............       3,647,600   ..............  ..............       2,336,880
--------------------------------------------------------------------------------------------------------------------------------------------------------


Total national cost for facility security
    The national cost of the facility security aspects of the ISPS Code 
is the sum of the individual costs estimated for each facility 
affected. National cost is discounted to its PV at 7 percent 
(2003[dash]2012). The total national initial and annual cost is 
presented in Table 64.


                                          Table 64.--Total National PV Cost for Facility Security, in $Millions
                                                          [2003-2012, 7 Percent Discount Rate]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                     Other
                        Year                          Container,   Dry bulk  Haz. bulk   Haz. sub     bulk      Ferry      Other      Total     PV Total
                                                      break-bulk               liquid     other      liquid              passenger
--------------------------------------------------------------------------------------------------------------------------------------------------------
2003 (initial)......................................         $70       $116       $478        $90        $37       $153        $19       $963       $963
2004 (annual).......................................          48         42        300         55         19         59         12        535        500
2005 (annual).......................................          48         42        300         55         19         59         12        535        467
2006 (annual).......................................          48         42        300         55         19         59         12        535        437
2007 (annual).......................................          48         42        300         55         19         59         12        535        408
2008 (annual).......................................          48         42        300         55         19         59         12        535        381
2009 (annual).......................................          48         42        300         55         19         59         12        535        356
2010 (annual).......................................          48         42        300         55         19         59         12        535        333
2011 (annual).......................................          48         42        300         55         19         59         12        535        311
2012 (annual).......................................          48         42        300         55         19         59         12        535        291
                                                     -------------
    Total...........................................         502        494      3,178        585        208        684        127      5,778      4,447
--------------------------------------------------------------------------------------------------------------------------------------------------------


    Table 65 presents the national cost for different elements of 
implementing the ISPS Code for facilities (these costs are not 
discounted).


            Table 65.--Total National Initial and Annual Cost by Element of Compliance, in $Millions
----------------------------------------------------------------------------------------------------------------
                                                                    Percent of                      Percent of
                     Element                       Initial cost        total        Annual cost        total
----------------------------------------------------------------------------------------------------------------
FSA.............................................             $23               2              $1               0
FSP.............................................              23               2               1               0
FSO.............................................             335              35             335              63
Training........................................              17               2              17               3
Drilling........................................               0               0              35               7
Security guards.................................             124              13             124              23
Equipment.......................................             441              46              22               4
                                                 -----------------
    Total.......................................             963             100             509             100
----------------------------------------------------------------------------------------------------------------




[[Page 79805]]


    As shown, upgrading/installing equipment is the driving costs of 
implementing the ISPS Code initially. Annually, FSOs are the driving 
cost. In the initial year, FSOs account for approximately 35 percent of 
the initial cost and increase in significance to 66 percent annually.


Port Security


Summary


    Note: for definition of acronyms throughout this analysis, refer 
to the list at the beginning of the report.


    Implementing the ISPS Code and NVICs could affect stakeholders in 
47 COTP AORs containing 361 ports.\3\ The following analysis details 
preliminary costs to public and private stakeholders and does not 
include costs to the Coast Guard.
---------------------------------------------------------------------------


    \3\ The ISPS Code provides requirements for ``Port Facilities.'' 
The Coast Guard, however, differentiates between ports and 
facilities in domestic regulations. As a result, for the purposes of 
this cost analysis, the terms PFSC and PFSP have been replaced with 
PSC and PSP for the port security section.
---------------------------------------------------------------------------


    The preliminary cost estimate of implementing ISPS Code as it 
pertains to port security is PV $477 million (2003-2012, 7 percent 
discount rate). The initial cost of the startup period (June 2003-
December 2003) for establishing PSCs and creating PSPs in all AORs is 
estimated to be $120 million (non-discounted). Following the startup 
period, the first year of implementation (2004), consisting of monthly 
PSC meetings and PSP drill exercises for all AORs, is estimated to be 
$106 million (non-discounted). After the first year of implementation, 
the annual cost of quarterly PSC meetings and PSP drills for all AORs 
is estimated to be $46 million (non-discounted). The startup period 
cost associated with creating PSCs and PSPs for each AOR is the primary 
cost driver of implementing the ISPS Code at U.S. ports. Both the 
startup and implementation year period (2003-2004) combined is nearly 
half of the total 10-year PV cost estimate, making initial development, 
planning, and testing the primary costs of port security.
    Implementing the ISPS Code and complying with NVICs would require 
all COTPs to develop security committees, plans, and training drills 
for their AORs, with the participation of maritime transportation 
stakeholders in their AORs. The above costs to stakeholders would be 
paperwork, travel, and communication costs associated with 
participation in PSP implementation.
    We estimate 1,090,400 hours of paperwork and other associated 
planning activities during 2003, the initial period of port security 
meetings and development. In 2004, the first year of implementation, we 
estimate the value will rise slightly to 1,278,400 hours of paperwork 
and other related information and communication activities related to 
monthly PSC meetings. In subsequent years, we estimate the hours will 
fall to 827,200 hours annually associated with PSC meetings, PSP 
revisions, and information drills.


Analysis


Period of Analysis
    The period of analysis is from mid 2003 (the startup year) to 2012 
(approximately 10 years). The port security aspects would be effective 
in 2004, so we assume the last 6 months in 2003 of the project to be a 
startup period of establishing PSCs and creating PSPs for all COTP 
AORs. We assume, therefore, that initial costs will be incurred in 
2003, and annual costs will be incurred each year 2004-2012.
Population Affected
    Implementing the ISPS Code would affect stakeholders nationally in 
47 COTP AORs containing 361 total ports. The Army Corps of Engineers 
Navigation Data Center and MARAD provided the data for total ports 
affected. For this analysis, ``ports'' include all areas located within 
or adjacent to a marine environment through which maritime commerce is 
conducted or people are transported. Consistent with NVIC 9-02, 
Guidelines for Port Security Committees and Port Security Plans 
Required for U.S. Ports, and parts A and B of the ISPS Code, PSPs will 
be developed by PSCs headed by COTPs. COTPs also determine the size and 
composition of the PSCs. The affected population per COTP AOR is 
assumed to be stakeholders who participate in the PSC, planning, and 
drilling. A stakeholder is considered to be any business, organization, 
(non-Federal) government entity, or individual involved with maritime 
commerce in a given port area.
    We believe the composition and number of stakeholders will vary 
greatly from AOR to AOR and will be determined by the commercial scope 
of the ports in each AOR. For the purpose of estimating average costs, 
we assumed the average level of meeting, planning, and drilling 
participation to be 200 stakeholders per AOR, based on discussions with 
COTPs and estimates of average U.S. facility and vessel presence per 
port. We understand that some AORs may have higher participation levels 
and other AORs have very lower participation levels; however, we 
believe this to be a reasonable national estimate of stakeholder 
participation per AOR.
Unit Cost Assumptions
    The port security implementation cost per stakeholder is expected 
to be small in comparison to facility and vessel security 
implementation. Stakeholders are not required to purchase or upgrade 
materials or services, as in the implementation of the ISPS Code for 
facilities or vessels. Some companies and facilities are required to 
have CSOs and FSOs (as detailed in the vessel and facility security 
sections) attend at least one of the quarterly PSC meetings a year; 
however, we expect few stakeholders to fully participate in all of the 
implementation or annual activities for a given COTP AOR. Finally, most 
stakeholders in large to medium-sized ports have already completed or 
adopted appropriate and transferable PSPs before the ISPS Code will 
become effective.
    All costs for ISPS Code implementation for port security are 
related to personnel. Stakeholder hourly costs are assumed to be $100 
per burden hour for managerial personnel and $35 per burden hour for 
administrative/clerical personnel. These costs are ``loaded'' wage 
rates, which means they include benefits, local travel, and other 
overhead costs. These rates are based on BLS data and previous Coast 
Guard analyses that estimated meeting and planning costs. While some 
employees cost more than this and some cost less, we believe these 
estimates for the two labor types are reasonable average costs of the 
employees that would conduct this work.
    The stakeholder costs are divided into three hourly activities: PSC 
meetings, PSP development, and drilling, which include tabletop 
management drills and administrative drills. PSC meetings are estimated 
to consume an average of 6 hours for office preparation and meeting 
time, plus 2 hours of travel time. PSC meetings are monthly for the 
first 18 months and quarterly thereafter. Initial PSP development and 
planning is estimated to be a maximum of 80 hours (2 weeks) of non-PSC 
meeting time in 2003. PSP administrative and management drills are 
information and communication exercises that will take place at the 
stakeholder site. Administrative drills will occur twice a year for 2 
hours to update company and facility contact information. Management 
drills will occur four times


[[Page 79806]]


a year for 4 hours to exercise PSP information and communication 
readiness. These activities collectively involve meetings, planning 
coordination, and communication drills that are information-gathering 
events. Costs to stakeholders, therefore, are determined by the labor 
rates and the number of hours each type of labor will be involved in 
each activity.
    The frequency of the PSC meeting activity, estimated hours, and 
unit cost per stakeholder at a full participation level is presented in 
Table 66, and the frequency of the PSP planning and drill activities, 
estimated hours, and unit cost per stakeholder at a full participation 
level is presented in Table 67.


                                         Table 66.--PSC Meeting Frequency, Hours, and Unit Cost per Stakeholder
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                     Initial                          Annual
                                                                                        ----------------------------------------------------------------
       Stakeholder meeting           Hours per        Frequency \1\       Cost per hour    Total hours                      Total hours
                                      meeting                                                  per        Total cost per        per       Total cost per
                                                                                           stakeholder     stakeholder      stakeholder     stakeholder
--------------------------------------------------------------------------------------------------------------------------------------------------------
Startup PSC meetings--2003......               8  1/month..............            $100              48          $4,800   ..............  ..............
Annual PSC meetings:
    2004........................               8  1/month..............             100  ..............  ...............              96           9,600
    2005-2012...................               8  4/year...............             100  ..............  ...............              28          2,800
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Startup meetings (July-December 2003) consist of monthly planning meetings; the first year of implementation beginning 2004 consists of 12 monthly
  meetings; meetings for future years will be quarterly.




                                    Table 67.--PSP Planning and Drill Frequency, Hours, and Unit Cost per Stakeholder
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                     Initial                          Annual
                                                                                        ----------------------------------------------------------------
      Stakeholder activity           Hours per          Frequency         Cost per hour    Total hours                      Total hours
                                     activity                                                  per        Total cost per        per       Total cost per
                                                                                           stakeholder     stakeholder      stakeholder     stakeholder
--------------------------------------------------------------------------------------------------------------------------------------------------------
PSP Planning--Year 2003.........              80  1/year...............            $100              80          $8,000   ..............  ..............
PSP Drilling (2004-2012):
    Management..................               4  4/year...............             100  ..............  ...............              16             400
    Administrative..............               2  2/year...............              35  ..............  ...............               4             140
--------------------------------------------------------------------------------------------------------------------------------------------------------


Total National Cost for Port Security
    We estimated national cost (both initial and annual) to public and 
private stakeholders for implementation of the ISPS Code for port 
security. Each cost is discounted to its PV at 7 percent for years 
2003-2012. National cost for port security is presented in Table 68.


                        Table 68.--Total National PV Cost for Port Security, In $Millions
                                      [2003-2012, 7 percent discount rate]
----------------------------------------------------------------------------------------------------------------
                                       PSPs          Meetings         Drills           Total         PV total
----------------------------------------------------------------------------------------------------------------
2003 (initial)..................             $75             $45               $            $120            $120
2004 (annual)...................  ..............              90              16             106              99
2005 (annual)...................  ..............              30              16              46              40
2006 (annual)...................  ..............              30              16              46              38
2007 (annual)...................  ..............              30              16              46              35
2008 (annual)...................  ..............              30              16              46              33
2009 (annual)...................  ..............              30              16              46              31
2010 (annual)...................  ..............              30              16              46              29
2011 (annual)...................  ..............              30              16              46              27
2012 (annual)...................  ..............              30              16              46              25
                                 -----------------
    Total cost ($m).............              75             375             144             594            $477
----------------------------------------------------------------------------------------------------------------


    As shown, the initial cost associated with creating a PSP and 
holding development PSC meetings for each AOR is the primary cost 
driver for implementing the ISPS Code at U.S. ports. In addition, both 
the startup and implementation year periods (2003-2004) combined are 
nearly half of the total 10-year PV cost, making initial development 
and planning the primary costs to port security. These estimates are 
conservative because most COTP AORs have already done some security 
planning and organization. Furthermore, the level of stakeholder 
participation may not be as high as 200 per COTP AOR, and stakeholders 
will not be required to participate in all of the port security 
activities and drills in a given year.
[FR Doc. 02-32845 Filed 12-24-02; 11:41am]

BILLING CODE 4910-15-P