Speech by Minister for Transport Khaw Boon Wan for the Second Reading of The Merchant Shipping (Wreck Removal) Bill

1.     Madam Speaker, I beg to move, “That the Bill be now read a second time.”

Rationale for the Bill

2.     Singapore is situated alongside one of the world's busiest waterways and has one of the world's busiest ports. Ensuring safety of navigation and sustainability of the marine environment is therefore of utmost importance to us. That is why we are acceding to the Nairobi International Convention on the Removal of Wrecks (“the Convention”), which was adopted by the International Maritime Organization in May 2007 and entered into force in April 2015.  

3.     The Convention provides a set of international rules for State Parties to remove wrecks in their exclusive economic zones (EEZ) that pose a danger to navigation or to the marine environment. It allows State Parties to recover the costs of locating, marking and removing wrecks from the shipowners. The Convention also requires State Parties to certify that insurance or other forms of financial security for such liability is in force for ships under their registry.

4.     The Merchant Shipping (Wreck Removal) Bill seeks to give effect to the Convention.  

Key Provisions of the Bill

5.     Let me highlight the key provisions of the Bill. 

6.     Clause 8 empowers the Director of Marine of the Maritime and Port Authority of Singapore (MPA) to remove a wreck determined by him to constitute a hazard, if the owner of the wrecked ship fails to undertake the removal or if immediate action is required. Under the Bill, the Director of Marine must use the most practical and expeditious means available, and take into consideration safety of navigation and protection of the marine environment when removing the wreck. 

7.     Clause 10 provides for the owner of a ship wrecked in Singapore's EEZ to be liable for the costs of locating, marking and removing the wreck. 

8.     Clause 15 stipulates that a ship may not enter or leave the port of Singapore unless it carries on board evidence that it is covered by wreck removal insurance. 

9.     Clause 16 provides for the registered owner of a Singapore ship to apply for, and the Director of Marine to issue, certificates to attest that the ship is covered by wreck removal insurance. 

10.    Clause 17 provides the Director of Marine with a right of direct action against the insurer of the wrecked ship, for the costs of locating, marking and removing the wreck.

Industry Consultation

11.   The shipping industry has been consulted, and they are supportive of the Bill.  Just now at the corridor, Mr Louis Ng told me that he support the Bill but gave me some feedback from one industry contact.

12.   I assured him that there would be minimal additional administrative and cost burden for shipowners as the application process for the wreck removal certificate is similar to that of other mandatory certificates. To further reduce any administrative inconvenience, MPA also has in place processes to renew the Wreck Removal Certificate as a package together with the statutory certificates required under other international conventions. The fee for the issuance and renewal of the Wreck Removal Certificate will be $60, similar to that for other certificates. We are targeting to introduce the relevant subsidiary legislation and fees in the 3Q 2017.

13.   MPA has also checked with the established marine insurance providers and understands that there will be no increase in premium for ships insured with them. The limits of liability for maritime claims provided by them to their members are already in excess of the limits required under the Convention. 

14.   In the event of an incident, MPA will work closely with the ship owner and the insurer from the onset to remove the wreck.  The deadline to remove the wreck will be determined by MPA in consultation with the shipowner and the insurer. MPA will only take over the removal of wreck if the shipowner and insurer abandons the wreck or if the wreck constitutes a hazard to navigation or to marine environment. In such instances, any surplus from the sale of the wreck will be held in trust. MPA will then call for claimants to provide evidence of their entitlement, and disburse the surplus to the rightful beneficiary as expeditiously as possible. Should there be competing claims, MPA will seek the Court's determination. 

15.   Madam Speaker, I beg to move.