VENEZUELAN READINESS FOR ISPS IMPLEMENTATION

UNCLAS CARACAS 001505 SIPDIS STATE FOR EB/TRA; ALSO FOR WHA/USOAS (CROOK-CASTAN AND FERRAO) E.O. 12958: N/A TAGS: EWWT ENRG ETRD ECON PHSA PREL VE SUBJECT: VENEZUELAN READINESS FOR ISPS IMPLEMENTATION REF: A. STATE 74894 ¶B. STATE 82638 ¶1. REFTELS REQUEST THAT POST INFORM THE GOV REGARDING USG ENFORCEMENT OF THE NEW INTERNATIONAL MARITIME ORGANIZATION INTERNATIONAL SHIP AND PORT FACILITY SECURITY CODE (ISPS). ¶2. ON APRIL 29, THIS INFORMATION WAS FORMALLY CONVEYED TO THE MINISTRY OF FOREIGN AFFAIRS, DIRECTORATE GENERAL OF INTERNATIONAL ECONOMIC AFFAIRS, WHICH COMMITTED TO CIRCULATE IT TO APPROPRIATE GOV AGENCIES. ¶3. POST HAS ALSO PROVIDED INFORMATION ON ISPS TO STATE OIL CORPORATION PETROLEOS DE VENEZUELA, S.A. (PDVSA),WHICH HAS ALREADY STATED PUBLICLY THAT ALL OF ITS SHIPS AND PORT FACILITIES WILL BE ISPS-COMPLIANT IN TIME FOR THE JULY 1 IMPLEMENTATION DATE. (SEE PDVSA PRESS RELEASE ON THE INTERNET AT HTTP://WWW.PDVSA.COM/PDVSA PBIP.HTML.) ¶4. ON MAY 3, ECON SPECIALIST MET WITH AN OFFICIAL OF THE GOV'S NATIONAL INSTITUTE OF AQUATIC SPACE (INEA, ROUGHLY MARITIME ADMINISTRATION EQUIVALENT). HE SAID ALTHOUGH VENEZUELA MAINTAINS AN OPEN REGISTRY OF SHIPS, AND SOME SHIPS ARE REGISTERED UNDER THE VENEZUELAN FLAG, THE VAST MAJORITY OF SHIPS THAT USE VENEZUELAN PORTS ARE FOREIGN FLAGGED. VENEZUELA HAS REGISTERED 458 VESSELS (OVER 500 GRT), INCLUDING 275 BARGES, 63 BULK CARRIERS, 38 FISHING VESSELS, 25 PETROLEUM CARRIERS, 24 DREDGES AND TUGS, 17 ROLL-ON, ROLL-OFF VESSELS, 6 SPECIALIZED CARRIERS, 5 CONTAINER SHIPS, 4 LIQUIFIED GAS CARRIERS, AND 1 SHORT-DISTANCE PASSENGER SHIP. ¶5. WE WOULD NOTE THAT ALTHOUGH PDVSA OWNS SEVERAL LARGE TANKERS WHICH SHIP PRODUCT TO THE U.S., MOST VENEZUELAN OIL AND GAS PRODUCTION IS SOLD FOB TO INTERNATIONAL OIL COMPANIES, WHICH ARE RESPONSIBLE FOR SHIPPING THE OIL TO THE POINT OF CONSUMPTION. SHAPIRO NNNN 2004CARACA01505 - UNCLASSIFIED