PANAMA MARITIME AUTHORITY MERCHANT MARINE CIRCULAR MMC-167

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PANAMA MARITIME AUTHORITY MERCHANT MARINE CIRCULAR MMC-167 PanCanal Building Albrook, Panama City Republic of Panama Tel: (507) 501-5355 jortega@segumar.com To: Ship-owners/Operators, Company Security Officers, Legal Representatives of Panamanian Flagged Vessels, Panamanian Merchant Marine Consulates and Recognized Organizations (ROs). Subject: Crew Boat Requirements Reference: Circular Letter No. 5 April 7, 1982 Merchant Marine Circular No.299 - Regulation for the Safety of Vessels under 500GRT 1- The purpose of this Circular is to inform users of the Panamanian Registry that this Administration has decided that based on the SOLAS Convention definitions, a vessel that carries more than 12 passengers is categorized as a passenger ship. Since a crew boat normally carries over 12 passengers (comprising offshore crew and marine service suppliers), it is therefore required to comply with passenger vessel s regulations. 2- However, a crew boat is unique in the sense that it is only a small coastal vessel serving offshore or marine personnel working in the offshore industry. 3- Based on Regulation 5 of Chapter I of the International Convention for the Safety of Life at Sea, (SOLAS) 1974, which establishes that Administrations may allow other provisions to be accepted if it is satisfied that the provisions accepted are; at least, as effective as the required by the regulations, and, taking into account the fact that crew boats only operate in fair weather and the reliability of search and rescue capabilities in the areas of operation, the Government of the Republic of Panama on October 1982, presented to the IMO a statement giving notification of the acceptance of the provisions of the Resolution No. 106-138-DGMM, 10 September, 2013for cargo vessels under 500 gross tons as being equivalent to the provisions of the regulations for passenger ships to allow crew boats to operate in the transport of workers between shore and offshore facilities, provided that the vessels meet the requirements of Circular letter No.5 of 07 April 1982 on Certification of Crew Boats, issued by the Directorate of Consular and Maritime Affairs. 4- Taking into consideration that since 1982 many new Regulations have come into force and that the use of Resolution No. 106-138-DGMM, 10 September, 2013 as a standard for crew boats actually is not covering some additional requirements that must apply to crew boats, this Administration has decide to elaborate new Guidelines for the Certification of Panamanian Registered Crew Boats. 5- This new Guidelines for the Certification of Panamanian Registered Crew Boats are contained this Merchant Marine Circular. Control N : F-RIN-04-01 Version: 05 Date: 21 January, 2013 Page 1 of 6

GUIDELINES FOR THE CERTIFICATION OF PANAMANIAN REGISTERED CREW BOATS The present guidelines are issued in order to clarify the technical requirements and certification procedure applicable to Panamanian crew boats in the international service. REGULATIONS The existing regulations require that: a) Vessels carrying more than 12 industrial personnel shall comply with the requirements of SOLAS 74 for passenger vessels. b) Vessels carrying 12 or less industrial personnel shall comply with the applicable Panamanian rules for cargo vessels in the international service. c) Additionally, vessels of 24m in length or more shall comply with the requirements of Load Line Conference, 1966. It must be noted that most crew boats transport more than 12 industrial personnel (offshore crew which is not engaged on the activities of the crew boat) and not passengers. Ships transporting passengers shall therefore comply with SOLAS requirements for passengers. A Passenger Ship Safety Certificate shall be issued to those vessels. However, due to the size and traditional standards of construction, crew boats fail in general to meet the requirements of SOLAS for passenger ships. APPLICATION These guidelines will apply immediately to crew boats newly registered and Panama vessels already under Panamanian flag may continue operation on the present basis until expiration of present certificates. A crew boat shall not be classified as Passenger vessel and therefore the Resolution No. 106-138- DGMM, 10 September, 2013 shall be used with additional requirements rather than complying. The following ships may be considered as Crew boats provided that, in addition to their crew and normal activities, they are engaged on the transportation of offshore crew and marine service providers to installations offshore: Utility boats for the purpose of transportation of spares; Supply boat for the transportation of offshore supplies; Security boat for patrolling offshore installations Standby boat for evacuation purposes. Control N : F-RIN-04-01 Version: 05 Date: 21 January, 2013 Page 2 of 6

CERTIFICATION Certificates will be issued on behalf of the Republic of Panama by the approved organizations. The Panamanian Administration authorizes the Recognized Organizations to issue Cargo Ship Safety Certificate (Instead of Passenger-ship Safety Certificate) using Cargo Ship other than any of the above (OSV) as type of ship. A Limitation Clause must be inserted in the Safety Certificate for the Crew boat that carries more than 12 persons, as follows: Voyages not beyond 400 miles from coast; Carriage of authorized personnel and crew/workers only for Marine Offshore Units. According to Regulation I/5 of the SOLAS Convention, 1974, the Administration can accept and apply requirements not strictly in conformance with those of the Convention as long as it is satisfied that the resulting levels of safety are equivalent to those of the Convention. For vessels up to 100 GRT, to attain such levels, the Administration will prescribe adherence to the Panamanian Rules for Cargo Vessels under 500 GRT in service outside the Jurisdictional Waters of the Republic of Panama (Resolution No. 106-138-DGMM, 10 September, 2013) to at least the same extent that would be required for cargo vessels of 100 GRT and 24 meters in length in unrestricted trade, with the following exceptions: a) For all vessels under 24 meters in length, an approved stability letter may be accepted in lieu of the trim and stability information and calculations required by Article 10 of the Rules. b) Engine tachometers shall be considered equivalent to the propeller tachometers required by Article 11 of the Rules. c) In vessels with mechanical, hydraulic or duplicated electric remote engine control, the engine room telegraph indicated in Article 11 of the Rules shall not be required. d) In twin screw vessels, the emergency steering system indicated in Article 13 of the Rules will not be required. e) In vessels of less than 24 meters in length, only two fire hydrants shall be required, instead of the three hydrants indicated in Article 14 of the Rules. f) The fixed fire-extinguishing system indicated in Article 14 of the Rules shall be required. g) Quick release life rings required to be installed at the bridge wings by Article 17 of the Rules can be installed at other suitable locations if vessel has no wings. h) In aluminum hull vessels, the main compass required by Article 23 of the Rules, can be located in the wheelhouse. i) Notwithstanding, the requirements stated in Article 17 of the Rules, the survival craft capacity shall never be less nor need to be more than three or more survival crafts of Control N : F-RIN-04-01 Version: 05 Date: 21 January, 2013 Page 3 of 6

approved type (lifeboats, life crafts or combination of either) with an aggregate capacity for 125% of the persons on board. The equipment and launching appliance of these crafts shall comply with the requirements of the Rules. No rescue boat shall be required. j) The vessel shall have a collision bulkhead located at a distance of not less than 5% and not more than 15% of the length of the vessel abaft the item at the loaded waterline. The bulkhead shall be of strong construction in which only watertight pipe or cable penetrations may be permitted. The vessels shall have additional internal watertight subdivisions complying with the following requirements: 1) Vessels carrying more than 150 industrial personnel shall meet the damage stability requirements of Chapter II-1 of SOLAS 74 with a subdivision factor equal to unity. 2) Vessels carrying up to 150 industrial personnel may either comply with 1, above or alternatively be fitted with watertight bulkheads spaced so the lengths of the compartments do not exceed the maximum permissible lengths indicated in Annex I to this circular. k) A Safety Management System based in the ISM Code is to be implemented in the Company following recommendations specified in IMO Res A.863(20), Code of Safe Practice for the Carriage of Cargoes and persons by Offshore Supply Vessels (OSV Code). l) The requirements of the ISPS Code may be applied to the Company. m) Panama crew boat less than 300 GRT and carrying more than 12 personnel has to comply with Resolution No. 106-138-DGMM, 10 September, 2013. In addition, equipment regardless of the size, such as the following: VHF (or VHF with DSC) radiotelephone SSB (or MF with DSC) radiotelephone (for voyage exceeding 20 miles from coast) A satellite EPIRB (as secondary alert system) Radar Transponder (for pin-pointing vessels in distress) Crew boat of 300 GRT will need to comply with SOLAS registration pertaining to GMDSS requirement corresponding with the tonnage. Notwithstanding the provisions above a. Crew Boats that have been built under specific regulations for this type of ship to sail without restrictions and; comply with the provisions of the Resolution No. 106-138- DGMM, 10 September, 2013 for cargo vessels under 500 gross tons; will not be restricted by this circular. These crew boats should show evidence of the Class regulations under which they were built and their class certificate. b. Utility, supply, security and standby boats that are also engaged on the transportation of offshore crew and; are capable of providing sheltered inclining seats for each worker/offshore personnel being transported to offshore units will not be restricted by this circular provided that they comply with the SOLAS or Resolution No. 106-138-DGMM, 10 September, 2013 provisions for cargo ships according to their tonnage. Control N : F-RIN-04-01 Version: 05 Date: 21 January, 2013 Page 4 of 6

ANNEX I SIMPLIFIED METHOD FOR DETERMINING TRANSFERSE WATERTIGH SUBDIVISION For vessels carrying not more than 150 passengers, the required transverse watertight bulkheads shall be located so the lengths of the compartments do not exceed the maximum permissible lengths indicated and the following formula: Where: 1=FxfxL D 1 = The maximum permissible length of the compartment in feet, except that in no case, is this length to exceed one-third of the length of the vessel measured over the bulkhead deck. F = Effective freeboard in feet. This is the mean of the freeboards measured from the load waterline to the top of the bulkhead deck at the side in way of the bulkheads bounding the compartment concerned. For vessels having a raised deck forward the height measurement in way of bulkheads forward of the break shall be taken to a straight line extending from the break to the raised deck at the bow. For vessels which have portlights of the opening type. The height measurement in way of the bulkhead shall not be taken higher than up to a line at least three inches below the portlights in way thereof and thence extending straight to the bulkhead deck at the bow and at the stern. L D = Length-Depth Factor. This is the length of the vessel in feet, measured over the bulkhead deck, divided by the depth, in feet, measured amidships of the vessel at a point onequarter of the beam out from the centerline, from the inside of the planking or plating to the level of the top of the bulkhead deck at the side. F = Floodable Length Factor for the compartment as listed in Table 1. Control N : F-RIN-04-01 Version: 05 Date: 21 January, 2013 Page 5 of 6

TABLE 1 Midpoint of Compartment in Percent length from bow Floodable length factor* 0-10 0.33 15.33 20.34 25.36 30.38 35.43 40.48 45.54 50.61 55.63 60.58 65.53 70.48 75.44 80.40 85.37 90-100.34 * Intermediate values of floodable length factor can be obtained by interpolation. May, 2015 Executive Decree No.45 replaced by Resolution 106-138-DGMM, 10 September 2013. April, 2013 form modification and addition of missing Annex I August, 2012 General modification of entire text July, 2008 Inquiries concerning the subject of this Circular or any request should be directed to: Directorate General of Merchant Marine Panama Maritime Authority Phone: (507) 501-5033 Fax: (507) 501-5083 Control N : F-RIN-04-01 Version: 05 Date: 21 January, 2013 Page 6 of 6