JAPANESE SHIPOWNERS ASSOCIATION

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JAPANESE SHIPOWNERS ASSOCIATION Kaiun Building, 2-6-4, Hirakawa-cho Chiyoda-ku,Tokyo 102-8603, Japan Tel : +81-3-3264-7180 Fax : +81-3-5226-9166 E-mail: int@jsanet.or.jp 6 December 2017 Press Release on JSA s Panama Visit in November The JSA delegation, headed by its Vice President, Mr Yuji Isoda, with representatives of its three member companies (KL, MOL and NYK), visited Panama in mid-november and held fruitful discussions with the Panama Canal Authority (ACP) and Panama Maritime Authority (AMP). The Secretary General of the Asian Shipowners Association (ASA) also participated in the meeting with ACP, while Director of International Shipping Division, Maritime Bureau of Ministry of Land, Infrastructure, Transport and Tourism (MLIT-Japan) also attended both meetings. Major topics discussed at each meeting are as follows: 1. Meeting with the ACP (1st Dialogue Meeting JSA-ASA-ACP) The meeting was named as the 1st Dialogue Meeting JSA-ASA-ACP and held at the ACP headquarters in Panama City on Monday, 13 November 2017, having materialized in accordance with discussion on the table during previous visit to JSA by the Vice President of Panama. From the ACP, Mr Jorge Quijano, Panama Canal Administrator, Mr Manuel Benitez, Vice Administrator, and other top-ranking officers attended. (Please see attached attendance list) After a cordial welcome to Panama from Mr Quijano, participants discussed current issues such as safety measures at new set of locks, future plans to increase the number of slots as well as tolls. With regard to future number of slots, the ACP confirmed that they plan to increase the booking slots (current: 6/day) to 7 from December this year. The JSA/ASA and the ACP recognised that there will be an increase in the demand from LNG vessels, considering the new US-LNG projects which will start in full from 2018. With regard to efficient use of the Canal, the JSA praised ACP s tremendous efforts to plan, construct and open the new set of locks, congratulating them on a remarkable record transit in FY2017 of up to 400 million Panama Canal tons. The JSA emphasised its basic thought that the Panama Canal was a global asset that was a precious life-line for the world, and that maximum usage of the Canal confers benefits to the entire world. With regard to tolls, the JSA emphasised its belief that reliable and stable tolls were necessary for the Canal as a global infrastructure and repeated that sufficient prior consultation period, i.e. 12 months in -1-

general, but at least 6 months, is required. The ACP stated they understood industry s voice and would take this request in consideration. ************ The Secretary General of ASA added that the Asian shipowners were still struggling to survive under the bearish shipping market and shipowners had no choice but to bear the financial burden due to upcoming maritime regulations such as CO2 emission, ballast water management and global sulphur cap. He expressed his determination that ASA would contribute to a regular dialogue with parties concerned through close cooperation with the JSA, one of ASA s core association members. The Director of MLIT-Japan commented that the meeting this time was very fruitful and that the MLIT would continue to facilitate such dialogue. As for the next Dialogue meeting, after coordinating the items to be further discussed, all participants agreed that it would be held in Tokyo or Panama next year at an appropriate level. The ACP expressed that they looked forward to inviting top JSA officials to Panama in the near future. On the same day, the ACP kindly invited all the JSA/ACP/MLIT delegation to Cocoli Locks and Miraflores Locks and offered a detailed explanation on the Canal s operations and facilities as well as its history. We deeply appreciated these opportunities. 2. Meeting with the AMP Meeting was held at the AMP headquarters in Panama City on Tuesday, 14 November 2017. From AMP, Mr Jorge Barakat Pitty, Administrator; Mr Fernando Solorzano, General Director; Ms Magdalena Carrera Ledezma, General Director; and other top-ranking officers attended. (Please see the attached attendance list) After a cordial welcome to Panama and expressing sincere gratitude for the use of the Panamanian flag by JSA members from Mr Barakat, the participants commented and confirmed the following, among others: The JSA expressed its appreciation for AMP s follow-up being in accordance with the JSA requirements that international maritime rules as well as ratification of Hong Kong Convention be reflected in all actions taken. With regard to Radio certification issues, the AMP clarified that they could carry out the certification process for the corresponding Japanese radio qualifications. With regard to the issuance of Panamanian licences and certifications for seafarers in Japan, the AMP revealed that they will have completed the necessary IT set-up by the end of this year and that it was expected that various Panamanian certifications would be issued in Tokyo and Kobe in Spring 2018. The participants also discussed the issue of the maritime agreement between Panama and China, change of required language in documentation and digitalisation. In this connection, the AMP underlined the benefit of the issuance of the technical certificates, which can be printed electronically and directly by the interested parties in any -2-

place, thus speeding up the process. The AMP clarified that at this time the certificates that could be applied under this modality were: Declaration of Maritime Labour Compliance Part I (DMLC), Financial Security in Respect of Civil Liability for Oil Pollution Damage (CLC), Ballast Water Management Plan (BWMP) and the International Ballast Water Management Certificate (IBWMC). It was also revealed that all existing certifications would be incorporated next year. It was noted by the participants that the AMP was working in new platforms that had an impact on the automation of more processes, which would enable printing via online. The JSA expressed its most sincere thanks for each of AMP s positive actions and also conveyed its appreciation for local efforts in Japan by the Embassy of Panama in Tokyo, headed by Ambassador Diaz, as well as Segumar Tokyo. The Director of MLIT-Japan expressed his appreciation for the long-time cooperation with the Japanese government by the Panamanian government, and commented that Japan would continue to maintain and enhance such a good relationship. ----------------------- -3-

1st Dialogue Meeting JSA-ASA-ACP 13 November, 2017 ACP headquarters, Panama Attendance List Representatives of the Panama Canal Authority (ACP): Mr. Jorge Quijano Panama Canal Administrator Mr. Manuel Benítez Deputy Administrator Mr. Esteban Saénz Executive VP, Operations Mr. Oscar Bazán Executive VP, Planning and Business Development Mr. Alexis Rodríguez Specialist in Environmental Protection Capt. Guillermo Manfredo Executive Manager, Transit Operations Mr. Abraham Saied Manager, Marine Traffic and Admeasurement Mr. César Lau Supervisor, Marine Traffic Control Ms. Argelis Ducreux Leader, Container Liner Segment Mr. José Ramón Arango Leader, Liquid Bulk Segment Mr. Max Olivares Supervisor, Tolls and Pricing Ms. Marianela Dengo Manager, Strategic Relations Management Section Representatives of the Japanese Shipowners Association (JSA): Mr. Yuji Isoda Vice President Ms. Keiko Kosugi Chair of JSA International Affairs Sub-Committee / Deputy General Manager, Corporate Planning Group, Nippon Yusen Kabushiki Kaisha Mr. Keiji Tomoda Member of JSA International Affairs Sub-Committee / Associate Director, Kawasaki Kisen Kaisha, Ltd. Mr. Tsuyoshi Aoki Member of JSA International Affairs Sub-Committee / Associate General Manager, Corporate Planning Division, Mitsui O.S.K. Lines, Ltd. Mr. Hiroyuki Yamagami Manager, Planning Division Representative of the Asian Shipowners Association (ASA): Mr. Kwang-Ho (Harry) Shin, Secretary General -------- Representative of Ministry of Land, Infrastructure, Transport and Tourism(MLIT) : Mr. Teruki Yamada Director, International Shipping Division, Maritime Bureau

Meeting between JSA and AMP 14 November, 2017 AMP headquarters, Panama Attendance List Representatives of the Panama Maritime Authority (AMP): Mr. Jorge Barakat Administrator of AMP Mr. Fernando Solorzano General Director of Merchant Marine Ph D. Magdalena Carrera Ledezma General Director of Seafarers Capt. Jovani González Deputy Director of Seafarers Ing. José Luis Ortega Head of Department of Navigation and Maritime Safety Ms. Rina D. Berrocal Chief of Segumar, Merchant Marine General Directorate Representatives of the Japanese Shipowners Association (JSA): Mr. Yuji Isoda Vice President Ms. Keiko Kosugi Chair of JSA International Affairs Sub-Committee / Deputy General Manager, Corporate Planning Group, Nippon Yusen Kabushiki Kaisha Mr. Keiji Tomoda Member of JSA International Affairs Sub-Committee / Associate Director, Kawasaki Kisen Kaisha, Ltd. Mr. Tsuyoshi Aoki Member of JSA International Affairs Sub-Committee / Associate General Manager, Corporate Planning Division, Mitsui O.S.K. Lines, Ltd. Mr. Hiroyuki Yamagami Manager, Planning Division -------- Representative of Ministry of Land, Infrastructure, Transport and Tourism(MLIT) : Mr. Teruki Yamada Director, International Shipping Division, Maritime Bureau

JSA s Panama Visit in November 2017 (Pictures) 1st Dialogue Meeting JSA-ASA-ACP (Presentation by Administrator Quijano) Mr Isoda at Cocoli Lock

Meeting with the AMP Gift Exchange between Mr Isoda and Mr Barakat