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Ban on SLI ships lifted in three months if ...

First Posted 15:23:00 08/18/2008

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CEBU CITY, Philippines - The ban on Sulpicio Lines Inc. (SLI) ships will be lifted in three months at the earliest if the shipping company follows conditions required by the government.

The Maritime Industry Authority (Marina) board required the SLI to implement within three months upon receipt of its order the conditions for SLI to resume its cargo and passenger operations.

SLI ships were grounded after the sinking of the MV Princess of the Stars at the height of typhoon Frank on June 21. At least 52 of the 825 passengers survived the tragedy.

Marina ordered the shipping firm to implement three main requirements ? engage the services of an ISM-certified ship management company to assist in the review, institutionalization and sustained implementation/maintenance of the Company Safety Management System (SMS); retrain their personnel and other crew; and insurance coverage to the passengers, crews and cargoes.

The Marina also required the shipping company within 21 days from receipt of the order to secure insurance coverage from duly licensed companies for their crew and cargoes. The firm was also ordered to follow the proper procedure and have proper documents in loading dangerous cargoes.

The Marina board issued the order on August 8 after considering the requests of the different chambers of commerce and local government units that urged the government to allow the full cargo operations of SLI.

The order, signed by Vicente Suazo Jr., Marina administrator, and Colonel Primo Rivera, Marina deputy administrator for operations, was also made in response to the ?extremely urgent motion to lift the cease and desist order with manifestation? filed by SLI on July 28.

The Marina said it considered the need to continue the providing cargo services within the country and help in finding means to lessen costs of goods and commodities as the world faces food and energy crisis.

But agency said it also considered the safety of life at sea especially that more typhoons were expected to hit the country before the end of the year.

?For the eventual lifting of the suspension/grounding order dated 23 June 2008 on respondent (SLI) other ships, this Authority considered fair and reasonable conditions to impose on respondent to allow full cargo operations, acknowledging the void in domestic trade services as advised by the Department of Trade and Industry (DTI) and local government officials and various chambers of commerce,? the order said.

?It also sought to balance safety of life at sea since we take notice that we are currently in the typhoon season with 14 more typhoons expected to fall in the country till year-end,? it added.

SLI, in its motion, requested that its ships be allowed to resume normal cargo and passenger operation, or if not possible, at least on cargo operations only after the ships passed the re-inspection and audit.

But the Maritime Legal Affairs Office (MLAO) on August 1 said that the lifting of the cease and desist order at this stage is still premature and has no basis.

SLI pointed out that MLAO misread the suspension order because the cease and desist order did not provide that while the case was pending, the SLI vessels should remain grounded.

The company said that MLAO?s position on the issue will bring gross injustice to SLI not to mention the harm to be suffered by the public.

The Marina board stated in its order that all the ships of SLI were subjected to re-inspection from July 24 to August 1.

On August 2, the suspension of at least two SLI ships - MV Princess of the Earth and MV Cotabato Princess were lifted.

The board did not explain why they lifted the suspension of the two ships, while it refused to allow the remaining SLI passenger/cargo vessels to sail.

Marina instead imposed the following conditions for SLI to allow its vessels to resume operations.


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