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Adsteam welcomes federal inquiry into maritime salvage in Australian waters.

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ADSTEAM MARINE LIMITED ABN 87 065 888 440 An ISO 9001: 2000 Quality Assured Firm

Level 22, Plaza 2, 500 Oxford Street, Bondi Junction NSW 2022 Australia PO Box 644, Bondi Junction NSW 1355 Australia

Tel: +61 2 9369 9200 Fax: +61 2 9369 9288 y

media release

27 January 2004

Adsteam welcomes Federal inquiry into maritime salvage in Australian waters

The nation’s largest tug boat operator, Adsteam Marine Limited, has welcomed the inquiry into maritime salvage in Australian waters announced today by the House of Representatives’ Transport and Regional Services Committee.

The inquiry - which is seeking submissions by Friday, 8 April, 2004 - will examine • Government responsibility to provide salvage infrastructure: • The inclusion of a defined level of salvage capability in harbour towage

service agreements; • The provision of relief tugs when salvage tugs are engaged in a salvage operation; • Minimum standards of salvage tug safety, training and operational

capability, and • The need for public interest obligations to release tugs for marine emergencies.

“For many years, Adsteam’s tug fleet has provided ongoing protection for Australian waters and our coastline,” the Company’s Chief Operating Officer, Mr Clay Frederick, said late today.

“Adsteam has shouldered this responsibility almost alone,” Mr Frederick said.

“What is more, there has been no cost to the Australian taxpayer in Adsteam’s commitment, with any ship being salvaged meeting the cost through international conventions.

“Australian governments, both Federal and State, have had no reason to intervene or take national responsibility for salvage because the system has worked so well.

“Now, with increasing regulation of port towage, and the very real possibility that port tugs will be unavailable or incapable of performing salvage, the effectiveness of the system is under threat.

“While we believe that the regulators have not meant to create this potentially disastrous situation, the end result is that governments can no longer ignore the issue.”

Mr Frederick said the inquiry would provide the opportunity to examine Australia’s coastal protection requirements, and to find a timely solution for a looming problem.

He said Adsteam commended the Committee and the Federal Minister for Transport and Regional Services, Mr John Anderson, for the initiative.

The report has been requested by the Minister following a report by the Productivity Commission on economic regulation of harbour towage and related services.

Mr Frederick said the Committee’s announcement today of the inquiry acknowledged that the Productivity Commission report could have a direct effect on the provision of maritime salvage services and salvage coverage in Australia - and Adsteam’s role as the major provider of tugs for salvage services.

“Adsteam looks forward to making a substantial contribution to the inquiry as it progresses,” Mr Frederick said.

Adsteam Marine operates a fleet of 95 tugs in Australia across 37 ports.


Clay Frederick Paula Wilson

Chief Operating Officer Manager, Corporate Communication Adsteam Marine Limited Adsteam Marine Limited 02 9369 9200 02 9369 9257 or 0419 489 959