1027 - 03/15 - Sampling of Bauxite Cargoes, Update - Malaysia

Further to our LP Bulletin 1025, we have received the following update from the local correspondent in Singapore.

The new regulations mentioned in LP Bulletin 1025 have now come into effect.

The recently published Port Circular No.6/2015 stipulates that all surveyors should meet the following requirements before entering the port operation area:

• All surveyors must be in possession of an appointment letter, issued either by the ship owners (to allow the appointed surveyor access to the cargo inside the vessel) or by the shipper (to allow the appointed surveyor to survey the cargo at KPC stockpile which belongs to the particular shippers).

• All surveyors must be accompanied by the appointed shipping agent or shipper to enter into KPC's operation area. The shipping agent or shipper must complete the form provided at the main gate prior entry to the operation area.

• All surveyors must be escorted by KPC security guard throughout their stay inside the operation area. Charges for the appointment of KPC security guards shall be paid by the respective surveyors/agents/shippers at the rate of RM 15.99 per hour or part thereof.

The circular does not entirely affect the Owners' ability to appoint surveyors, as was initially feared when the port advised that a letter from BOTH the owner and shipper would be required. The circular does however affirm that unless agreed by the Shipper, no access to the cargo can be obtained until it is in the vessel's holds.

Another issue to note is that the cost of RM 15 per hour for a security guard might result in a substantial bill of a few thousand dollars at the completion of the survey.

Should the Owners/Charterers require further assistance that they not hesitate to contact Spica Malaysia:

SPICA SERVICES (M) SDN BHD Phone : (60) 03-7947 7440

M-03 & M-04 Mezzanine Floor Fax : (60) 03-7947 7441

Wisma LYL, Jalan 51A/223

46100 Petaling Jaya E-mail :

kl_claims@spica.com.my

Selangor Darul Ehsan, Malaysia

Source of Information

SPICA SERVICES (S) PTE LTD

Singapore

Tel : +65 6225 5711

Fax : +65 6221 2053