Article by Sharon Cunningham
From : "Fit & Forty" - Prepared for the Associations's 40th anniversary supplement.

Celebrating its 40th anniversary this month, the Hong Kong Shipowners Association is in great shape, writes Sharon Cunningham.

At 40 years of age, the Hong Kong Shipowners Association -- one of the most proactive and forward thinking organisations of its kind -- shows no sign of slowing down.

Since its inception back in the 1950s, the association has grown significantly over the years and today boasts a combined ordinary and associate membership of more than 200 companies from every facet of the maritime industry, making it one of the largest shipowners associations in the world.

But it's not just a case of 'bigger is better'. Much of HKSOA's success lies in the fact that it has also matured over the past four decades. Today it is much more than just a shipowners association: rather, its mission is to promote Hong Kong as Asia's premier maritime hub by drawing attention to the extensive network of shipping services available. For a centre to attract shipowners, it recognises that that centre must provide the necessary ancillary services.

This ideology is exemplified by the association's membership, which comprises all walks of maritime life from owners, operators and managers to ship finance banks, maritime lawyers, insurers and P&I Clubs, shipbrokers, classification societies and even journalists. Within this community strong relationships are fostered and plenty of business gets done.

The move to admit non-shipowning or 'associate' members to the executive committee was made in 1985 with a change to the association's articles. Says HKSOA director Arthur Bowring: "It was a pioneering move and the reason we did it was because shipowners will be attracted to a centre where there is a concentration of support industries. We now see the association as still representing shipowners but also as a representative for Hong Kong's shipping industry as a whole. And we hope that this will attract business to Hong Kong."

Of course, when the association started out life 40 years ago things were different. The association found its roots back in the 1950s as a forum for shipowners to get together and discuss common industry problems and goals.There were 11 founder members, including Great Southern Steamship, Western Steamship, World Wide Shipping, Wah Kwong, Fir Line, Shun Cheong Steam Navigation, Pan Pacific Transport, Nan Yang Shipping Enterprises, Tai Yip and Jebshun Shipping. The first first secretary, P. C. Chen, and chairman, Andrew Lam of Jebshun Shipping, were appointed in 1957.

In 1975, the association entered a new and more social era when a shipowners executive club, chaired initially by Dr Frank Chao of Wah Kwong, was established in the Hong Kong Hilton. The shag-pile carpets and social glamour of the Hilton, however, were abandoned in the late 1980s when HKSOA set up in its own premises on Queen's Road East, where it can still be found today.

The past 40 years have marked some commendable achievements for the Association, achievements which have gone a long way to putting HKSOA on the map as the flagship maritime association not only of Hong Kong but of Asia.

These achievements are too many to list, though some are especially noteworthy. HKSOA's liaison with the Royal Navy during the Iran/Iraq conflict of 1987 to 1989 in order to obtain protection for its members' vessels whilst in the Arabian Gulf was certainly an achievement of some proportion. Likewise, during the lead up to Operation Desert Storm in 1991, the association arranged for member vessels to join convoys in the Arabian Gulf, protected by the allied navies against Iraqi mines and missiles.

The ongoing battle against piracy has always been an area of succes for the Association. In fact its vigorous and prolonged press campaign for the suppression of piracy in the Malacca Straits in 1991 to 1992 most probably played a significant part in bringing those troubles under control, while it has also made much progress in suppressing piracy in Chinese waters.

On the manning and training front, perhaps the Association's greatest endeavour was to set up the Seamen's Training School, which ran from 1970 until 1975. This was achieved by the initial acquisition of the Far East Seamen's Training Evening School. The school turned out some 1,200 seamen for deck duties per year to cater to Hong Kong shipowners' expanding fleet. Other training initiatives established by the association included evening classes at the Hong Kong Polytechnic University, which led into chartered shipbroking exams, a course which the association founded and funded.

In the early 1990s, the Association, under the leadership of former director Michael Farlie, spent a great deal of time overturning the Hong Kong Government's rule against the training of non-Hong Kong seafarers in the territory. Having achieved success in this respect, the association then suggested and promoted the training of ex-Gurkha soldiers as seafarers in Hong Kong.

More recently, the Association has succeeded in influencing the government to provide funding for residential quarters at the Seamen's Training Centre, a move which is intended to enable the centre to attract trainees from mainland China in particular.

HKSOA's role in the establishment of the autonomous Hong Kong Register of Shipping was particularly invaluable. The association's shipowning membership has a wealth of experience with other flags and therefore was able to provide a great deal of input into how the register should be established and what form it should take. The association also persuaded the Hong Kong Government that it should have a permanent representative in London primarily to attend IMO meetings. This co-operation between HKSOA and the Government Marine Department proved the foundations of the strong relationship that exists between them today.

The Association has always displayed an unswerving dedication in its efforts to promote the importance of the shipping industry in Asia as a whole, mainly through its keen participation in the Asian Shipowners Forum (ASF). HKSOA hosted the 5th ASF meeting, back-to-back with INTERTANKO's AGM in May last year. For a region whose shipowners control some 40% of the world fleet, Asia has historically lacked a unified voice on international maritime matters. But the ASF, under the guidance of such established organisations as HKSOA, has now established a voice that is recognised and respected in the international maritime community.

But while the Shipowners Association has seen many exciting and challenging times over the past four decades, it should not be forgotten that 1997 itself has been a landmark year. For the months preceeding Hong Kong's return to Chinese sovereignty in July, the Association's biggest concern was whether Hong Kong-flagged vessels would be allowed to continue calling Taiwanese ports. The issue was expertly handled and resolved not a moment too soon thanks to careful negotiation by the members and particularly chairman George Chao.

HKSOA has also developed strong links with China, in particular the Ministry of Communications in Beijing. A delegation made to the minister last year was able to influence the abolition of a 17.5% VAT on scrapping, so long as the steel was re-exported. Although the scrapping industry in China has not really taken off since, Bowring says the achievement "was a great precedent to set".

Due to its high-profile and proactive nature, HKSOA has always managed to attract some of the most respectable names in the industry to address its members at monthly luncheons and seminars. These include former governor of Hong Kong Christopher Patten, IMO's William O'Neil and Hong Kong Special Administrative Region chief executive Tung Chee-Hwa, himself a former chairman of the association.

For the future, HKSOA's intention is to enhance Hong Kong's participation in regional and global affairs and maintain its position as Asia's maritime hub. And judging by past experience, that's exactly what it will succeed in doing.