Newspapers in Pakistan and the world are giving extensive coverage to piracy off the coast of Somalia. I had learned about this act when I had picked up a book at a stall off Regal Chowk in 1958 for only one rupee. "The history of piracy - 1932", written by Phillip Goose, who penned the story of bravery and assaults by sea robbers in the medieval age which were termed as coastal piracy.
However Atlantic open sea daring piracy in 18th century and North African and Chinese piracy in the 19th century, also the contemporary piracy in South Asian seas, crossed all limits. Indonesia and the Strait of Malacca have claimed 40% of world-wide pirate attacks in 2004. Sea piracy has tripled in the last 10 years, but Malacca Strait, according to International Maritime Bureau, is most dangerous, with 200 to 600 ships crossing daily to the Far East.
621 miles of Malacca Strait lies between Malaysia and Sumatra (Indonesia) and it narrows down to a width of only 1.5 miles near southern entrance to Port of Singapore. I was personally confronted with pirate attack whilst traversing Malacca Strait near Singapore. The pirates robbed the entire crew of cash and valuables at night, by climbing on a moving ship by putting a rope with hook and they were equipped with speedboat and latest weaponry. The best option is to surrender to avoid loss of life. I recall robberies at Chittagong and Calcutta too, but never heard of hijacking the ship or taking crew as hostage, the unprecedented acts off the Coast of Somalia.
International Maritime Organisation rightly believes that half of the attacks go unreported by shipowners due to rise in insurance premium, so was the case with my ship in 70's. With unprecedented latest seizure of Saudi tanker, Hong King and Korean ships, Somalia has made headlines. Attacks have tripled since 2005 off Somalia coast and 32 accidents were reported only last year. The busy maritime waterway between Somalia and Yemen is a major trade route traversed by about 20,000 ships per year traversing to and from Suez Canal. Somalian pirates have kidnapped over 100 crew members of different nationalities, including Pakistanis and Indians.
It is intriguing to note that release of crew and ships are negotiated mainly by London Lawyers paying 1m to 2m USD and in case of Saudi tanker 25m USD. The estimated yearly loss due to piracy is about 13/16 billion USD, as io learnt at IMO in 2005.
The increase in incidents off Somali Coast prompted the IMO (International Maritime Organisation) to adopt a resolution in the IMO assembly 2005 A 979 (24) to bring the matter to the attention of UN Security Council. I voted on behalf of Pakistan in its favour. However, I also qualified my support by stating that factory ships and deep-sea trawlers of Taiwan and Russia may not exploit the sea resources of Somalian economic zone in accordance with UNCOLAS. The UN Security Council acted by passing resolution 1816(2008) by allowing navies to enter the territorial waters of Somalia to check armed robbery and piracy at sea. This mandate expires in December, 2008.
The Indians immediately seized the opportunity of UN resolution by deploying 4 TALWAR Class destroyers to patrol entrance from Gulf of Oman to Gulf of Aden and Indian Navy claims to have destroyed a pirate ship about 528km south west of Salalah Port, by shelling from INS TABAR. Indian plea of deployment is that their merchant marine ships are suffering a loss of 450,000 USD per month due to delays and are not meeting deadlines, a food for thought for Pakistan Navy too as now not only US and Russian warships, but Indians too are controlling the main sea routes.
The reason of increased piracy is political conflict in Somalia and also Taiwan Trawlers/Factory ships are lifting big fish catch depriving poor Somalian fisherman, who have now become pirates. I am afraid if we do not stop exploitation of our economic zone by deep-sea trawlers, our poverty stricken fishermen may too resort to robbery at sea, thus no licences be issued to Taiwan and Korean trawler owners.
All conflicts arise from economic exploitation and I quote an incidence. When prisoners were brought before Napoleon, their attitude was humiliating towards the King. They said we Russians are far better than you. You fight for wealth and we fight for honour. Napoleon made history by replying, "everyone fights for what he does not have".
The maritime safety committee of IMO is meeting from 26th November to 6th December, 2008 in London where a new resolution on piracy will come up along with safety measures to post sea marshals, or electrification of ships railing and bulwarks and hosing the anchor housing etc also using shiploc, a technological device which uses a satellite tracking system to monitor the ships position to alert, authorities when a ship is under attack. UAVS can be used to monitor large areas around ships. Ship Masters be provided with non-lethal weapons, such as stun grenades, pepper spray and slippery foam dispenser. Ships should have flood lights when traversing pirate zones.
Monday, November 24, 2008
Saturday, November 15, 2008
'A dream come true'
It was really a dream come true when I was invited onboard first Pakistani double hull tanker M.T. QUETTA built in 2003 with a summer dead weight of 107215 MT, generally termed as AFRAMAX TANKER. Pakistan has tankers, but either single hull or with segregated ballast tanks, all under CAS and phasing out schedule.
On the first sight of this beauty I could not restrain myself appreciating the good decision of the management to enter the double hull tanker fleet before existing tankers are phased out. I did find the vessel excellently maintained and managed by professionals of Pakistan Merchant Marine, inferior to none. I was particularly impressed by the good knowledge of Chief Engineer, Master and other staff of the vessel.
My attachment to new regulation of double hull tanker and phasing out of single hull tankers goes back to 2003, when I represented as expert to draft new regulations on tankers in Maritime environmental protection committee of International Maritime Organisation based at London. I can't forget the night oil burned by most professional team to adopt the definitions proposed by EU and also incorporating Oil Pollution Act of 1990 of USA.
We, at IMO agreed, bearing in mind sad incidents of Exxon valadez, Erika, prestige and also Tasman Spirit that carriage of most polluting types of heavy grades of oil need amendments to Anex I of Marpol 73/78 Convention to which Pakistan is signatory by ratification. The EU block insisted that heavy fuel oil carriage by single hull tankers be restricted by April 2005 near EU coast.
It was also agreed that, any coastal state may deny the right of entry to single hull tankers but due to our insistence, not to impose EU, restrictions and time be allowed to developing countries to phase out, we were accommodated to some extent.
The MEPC agreed to speed up gradual phasing out of single hull tankers notwithstanding a number of limited exemptions, single hull tankers will not be allowed operation beyond 2010. We agreed to enhanced inspection of single hull tankers from the age of 15 years to detect structural weaknesses.
I recall that in freezing winter of December 2003, the final decision to amend Annex I of Marpol conventions 73/78 was taken during the 50th session of MEPC on 4th December 2003 at IMO London and approved by the Assembly. The EU bloc was the driving force to enforce double hull measures and stringent safety measures as per SOLAS to entire world fleet.
The IMO through the marine pollution convention, made double hull tankers mandatory by regulation 13 F. The US OPA'90 became mandatory to world-wide fleet. It was also agreed that all new tankers will meet IMO type 2 hull as per IBCC. While debating, the MEPC also took note of defects in double hull tankers.
I was pleased to see that our first Pakistani Tanker QUETTA complies to Solas requirement of ballast tank coatings as envisaged. Double hull tankers have been seen as the safest alternative to single hull tonnage. It was interesting to see that our M.T. Quetta complies with stringent requirements of SOLAS for tankers and is fitted with inert gas systems as inert gas system is mandatory to tankers of 20000 tons DWT and above.
The new tanker is complying with equipment duplication as per SOLAS which makes steering gears of tankers to be duplicated. I was impressed to see the vessel equipped with navigational equipments also duplicated and maintained excellently.
The tanker was also fitted with mandatory towing arrangements and also complying with MARPOL 73/78 requirements of reducing the consequences of accidents ie stability /sub-division etc. I did see the protective location of segregated ballast tanks, thus reducing the spill after accident.
The world, unlike us, is very conscious of pollution and NGOs like Green Peace, in addition to Port State Control, keep a strict eye. IMO is the international clearing house and is the keeper of a body of International treaties aimed at safety, security and pollution.
I remained involved at IMO in framing safety, security ISPS code and environmental regulations along with members having specialised skill in different faculties of Maritime and environmental sciences, thus everyday was education and flow of knowledge.
I must honestly admit that in spite of framing rules and standards for world-wide shipping, it was my first experience in life physically boarding a double hull tanker and that too of my own country flying Pakistan Flag. It could be anybody's guess how proud I felt that Pakistan has entered into advanced field of double hull tankers.
I am quite sure that this vessel is just the beginning and now falling freight/market will affect the price of double hull tankers, which may have cost 70 mill USD plus to our public sector Pak Flag. The prices will come down.
I must admit that physically inspecting the state of art ship M.T. Quetta fitted with latest technology of B&W main engines and navigations equipment was education to a person who was part of framing rules at IMO for double hull tankers. Heraclitus remarked that "learning is only a means to an end, which is understanding and understanding is the ultimate value in education."
The world-wide recession is taking its toll and I would suggest that our only ship-owning company to take advantage of falling prices by replacing outdated vessels with new tonnage.
I, congratulate the entire nation and particularly maritime fraternity of Pakistan on induction of State of Art vessel and mariners must visit to see for themselves the latest technology. It sends shivers to me if I am asked to command this beauty after quitting sea about 35 years, as technology has changed so dramatically that Anachronistic or Plebeians, will get shock of their life.
TAIL PIECE There is no denying that education is an essential preparation for life and work in advanced economy and maritime faculties too. Modern economics requires skilled and motivated workers, who can only profit from the opportunities, they afford, if they are equipped to respond to their demands.
The public sector management must turn the recessionary trends, in shipping to opportunity, as it is blessed with leadership which inspires the team and commands the respect and does not demand. The present economic and financial TRS has eye positioned at US and EU.
We are facing lull before the storm and it may take 3/6 months to reach us, thus we may promptly act by inducing strict financial discipline, ban on foreign tours, reducing cost of repairs and maintenance, restraining unions and making counter demands to work 10 hours and asking all service providers to reduce their invoices by 10% so that there is no liquidity crunch and time has proved that conservative organisations can weather any storms.
I have seen the demise of private sector enterprises in my lifetime. The entire maritime fraternity in Pakistan must assist the only Pak Flag bearer public sector company by volunteering to offer solutions to the management, instead of being critical.
The future generation may not forgive Alan Green Span who is responsible for this debacle and his theory that " Profit for private sector and losses for socialisation and tax payers:. I have always subscribed to Keynes, Galbraith and Adam Smith who were balanced and emphasised the need of strong regulatory regime along with public and private sector participation. The right of common and poor be preserved. Gordon Brown has done it and now confused Bush is following.
I have made independent assessment based on my regular interaction with IMO and regional players who all agree to subscribe to stringent international accounting standards and professionally managed regulatory regime. While sighting the six monthly accounts of public sector ship-owning it gives satisfaction, however nobody knows the future, thus leadership must act by inducing austerity measures to keep the organisation afloat and growing.
On the first sight of this beauty I could not restrain myself appreciating the good decision of the management to enter the double hull tanker fleet before existing tankers are phased out. I did find the vessel excellently maintained and managed by professionals of Pakistan Merchant Marine, inferior to none. I was particularly impressed by the good knowledge of Chief Engineer, Master and other staff of the vessel.
My attachment to new regulation of double hull tanker and phasing out of single hull tankers goes back to 2003, when I represented as expert to draft new regulations on tankers in Maritime environmental protection committee of International Maritime Organisation based at London. I can't forget the night oil burned by most professional team to adopt the definitions proposed by EU and also incorporating Oil Pollution Act of 1990 of USA.
We, at IMO agreed, bearing in mind sad incidents of Exxon valadez, Erika, prestige and also Tasman Spirit that carriage of most polluting types of heavy grades of oil need amendments to Anex I of Marpol 73/78 Convention to which Pakistan is signatory by ratification. The EU block insisted that heavy fuel oil carriage by single hull tankers be restricted by April 2005 near EU coast.
It was also agreed that, any coastal state may deny the right of entry to single hull tankers but due to our insistence, not to impose EU, restrictions and time be allowed to developing countries to phase out, we were accommodated to some extent.
The MEPC agreed to speed up gradual phasing out of single hull tankers notwithstanding a number of limited exemptions, single hull tankers will not be allowed operation beyond 2010. We agreed to enhanced inspection of single hull tankers from the age of 15 years to detect structural weaknesses.
I recall that in freezing winter of December 2003, the final decision to amend Annex I of Marpol conventions 73/78 was taken during the 50th session of MEPC on 4th December 2003 at IMO London and approved by the Assembly. The EU bloc was the driving force to enforce double hull measures and stringent safety measures as per SOLAS to entire world fleet.
The IMO through the marine pollution convention, made double hull tankers mandatory by regulation 13 F. The US OPA'90 became mandatory to world-wide fleet. It was also agreed that all new tankers will meet IMO type 2 hull as per IBCC. While debating, the MEPC also took note of defects in double hull tankers.
I was pleased to see that our first Pakistani Tanker QUETTA complies to Solas requirement of ballast tank coatings as envisaged. Double hull tankers have been seen as the safest alternative to single hull tonnage. It was interesting to see that our M.T. Quetta complies with stringent requirements of SOLAS for tankers and is fitted with inert gas systems as inert gas system is mandatory to tankers of 20000 tons DWT and above.
The new tanker is complying with equipment duplication as per SOLAS which makes steering gears of tankers to be duplicated. I was impressed to see the vessel equipped with navigational equipments also duplicated and maintained excellently.
The tanker was also fitted with mandatory towing arrangements and also complying with MARPOL 73/78 requirements of reducing the consequences of accidents ie stability /sub-division etc. I did see the protective location of segregated ballast tanks, thus reducing the spill after accident.
The world, unlike us, is very conscious of pollution and NGOs like Green Peace, in addition to Port State Control, keep a strict eye. IMO is the international clearing house and is the keeper of a body of International treaties aimed at safety, security and pollution.
I remained involved at IMO in framing safety, security ISPS code and environmental regulations along with members having specialised skill in different faculties of Maritime and environmental sciences, thus everyday was education and flow of knowledge.
I must honestly admit that in spite of framing rules and standards for world-wide shipping, it was my first experience in life physically boarding a double hull tanker and that too of my own country flying Pakistan Flag. It could be anybody's guess how proud I felt that Pakistan has entered into advanced field of double hull tankers.
I am quite sure that this vessel is just the beginning and now falling freight/market will affect the price of double hull tankers, which may have cost 70 mill USD plus to our public sector Pak Flag. The prices will come down.
I must admit that physically inspecting the state of art ship M.T. Quetta fitted with latest technology of B&W main engines and navigations equipment was education to a person who was part of framing rules at IMO for double hull tankers. Heraclitus remarked that "learning is only a means to an end, which is understanding and understanding is the ultimate value in education."
The world-wide recession is taking its toll and I would suggest that our only ship-owning company to take advantage of falling prices by replacing outdated vessels with new tonnage.
I, congratulate the entire nation and particularly maritime fraternity of Pakistan on induction of State of Art vessel and mariners must visit to see for themselves the latest technology. It sends shivers to me if I am asked to command this beauty after quitting sea about 35 years, as technology has changed so dramatically that Anachronistic or Plebeians, will get shock of their life.
TAIL PIECE There is no denying that education is an essential preparation for life and work in advanced economy and maritime faculties too. Modern economics requires skilled and motivated workers, who can only profit from the opportunities, they afford, if they are equipped to respond to their demands.
The public sector management must turn the recessionary trends, in shipping to opportunity, as it is blessed with leadership which inspires the team and commands the respect and does not demand. The present economic and financial TRS has eye positioned at US and EU.
We are facing lull before the storm and it may take 3/6 months to reach us, thus we may promptly act by inducing strict financial discipline, ban on foreign tours, reducing cost of repairs and maintenance, restraining unions and making counter demands to work 10 hours and asking all service providers to reduce their invoices by 10% so that there is no liquidity crunch and time has proved that conservative organisations can weather any storms.
I have seen the demise of private sector enterprises in my lifetime. The entire maritime fraternity in Pakistan must assist the only Pak Flag bearer public sector company by volunteering to offer solutions to the management, instead of being critical.
The future generation may not forgive Alan Green Span who is responsible for this debacle and his theory that " Profit for private sector and losses for socialisation and tax payers:. I have always subscribed to Keynes, Galbraith and Adam Smith who were balanced and emphasised the need of strong regulatory regime along with public and private sector participation. The right of common and poor be preserved. Gordon Brown has done it and now confused Bush is following.
I have made independent assessment based on my regular interaction with IMO and regional players who all agree to subscribe to stringent international accounting standards and professionally managed regulatory regime. While sighting the six monthly accounts of public sector ship-owning it gives satisfaction, however nobody knows the future, thus leadership must act by inducing austerity measures to keep the organisation afloat and growing.
Monday, November 10, 2008
Port performance indicators: an important management tool
An individual port is one of many links in a transport chain with its own complex operational system. If this system does not function efficiently or lacks sufficient capacity, the total transport chain will be affected. A control instrument has to be established from which the port management can easily recognise where capacity problems are likely to arise in future.
It should also be a tool for the evaluation of daily operations with a view to achieving an optimal allocation of resources and higher efficiency rates. Nowadays, such a control instrument or management information system is an absolute necessity for port management's.
One part of this information system should provide accurate performance statistics which would help management translate forecast demand into ship calls and therefore berth requirements.
In every operating port there are always possibilities of improvement of various performances especially those relating to cargo handling productivities. This clearly indicates that planning based on existing levels of achievement would result in costly redundancies.
There are cases where massive new extensions have been executed while existing facilities operate at low levels of productivity. It can be argued that a port should not be contemplating adding or introducing new facilities until it has made full use of all possibilities for maximising the throughput with existing resources.
An investigation of port optimisation should always be conducted before planning new facilities. It was shocking to see a newspaper clipping in which a Pakistani port manager stated that we were operating at 50% capacity after having lost few berths, then logic denies building new capacities.
Port performance indicators are necessary tools for port management for the continuous evaluation of future capacity requirements which must be developed to monitor operational efficiency of varying combinations of port activities. The performance indicators can be classified into two main groups: the physical performance indicators and the financial indicators. Physical performance indicators include berth occupancy, which covers the period of time during which a vessel actually occupies a berth.
This indicator is very important as it influences the decision for investments in new berths. Planning on the basis of standard berth occupancy cannot be termed a very good means of accurate planning. The berth occupancy rate includes many factors which are beyond control and concern the cargo operation itself. Another factor is berth throughput, which relates to the actual tonnage loaded/discharged for each berth, expressed per current meter of quan and time.
For container terminals, the berth throughput is measured in TEU per current meter and time. Ship's turnaround time is regarded as an important performance indicator by the shipping lines to calculate the port's efficiency. The ship's turnaround time is directly related to berth occupancy and berth throughput.
The productivity of a ship refers to the volume of tons/units loaded/discharged per hour/shift/day. In the container traffic guaranteed minimum operating performance standards are used nowadays. These are normally related to the services provided to the vessels of a particular ship operator or consortia and are generally laid down as minimum container handling rates per ship working day or minimum container handling rates per hour.
On the other hand, cargo handling productivity is referred to as an indicator for all commodities separately for each operational unit. This productivity is defined as tonnage handled per man/hour or per gang/hour. This indicator makes it also possible to calculate the handling costs per commodity or commodities group and this will enable the port management to activate a flexible price policy.
Financial indicators play a vital role in port management. These are based on a cost accounting system which gives each month's information about the costs per ton/unit of commodity/commodities group discharged/loaded and will enable the management to allocate the resources in an optimal manner. Another key indicator is "contribution" which is defined as revenue less itemised costs. This is the amount of revenue which serves to cover overheads.
For an effective cost/revenue control it is necessary to calculate and compare the contribution figures per ton/unit for each commodity group regularly. Regular monitoring of performance indicators provides efficiency levels attained and therefore it is essential that ports should collect the range of statistics necessary for the effective monitoring and management of operations and for planning purposes.
Performance can be monitored in terms of output quality of service utilisation and productivity (cost per tonne). One important source of information for monitoring performance is the record of cargo handled which should provide a useful means of examining ship time in port and the progress of cargo handling. The time on berth will comprise operational time and non-operational time.
The idle time may be due to poor management of resources which could be for waiting for tugs, pilots, labour, equipment, repairs, information, documents and transport for onward movement of cargo. Practical use of performance indicators for operations and capacity planning is the performance review which can only be executed when an appropriate management information system is available.
Due to the complexity of the port and the variety of services which often require fast management decisions, it is necessary to provide the management with reports and analyses about the operational performance on a regular basis.
Ports are largely considered to be service providers and they are not expected to make huge profits. However, they must not incur operational loss due to poor management. Performance indicator is now the key tool of management of a port. All successful ports have cost accountants who monitor the cost per ton.
The success story of Hong Kong, Singapore, Dubai and Rotterdam is attributed to excellent port management and making use of all tools available to monitor performance.
Port Qasim has emerged as industrial port with maximised public and private sector participation. The port has handled 27 mill tons, an excellent record indicating optimum performance with zero waiting time. The other port can take the example of Port Qasim as a model, as the operation department is using port performance indicators.
It should also be a tool for the evaluation of daily operations with a view to achieving an optimal allocation of resources and higher efficiency rates. Nowadays, such a control instrument or management information system is an absolute necessity for port management's.
One part of this information system should provide accurate performance statistics which would help management translate forecast demand into ship calls and therefore berth requirements.
In every operating port there are always possibilities of improvement of various performances especially those relating to cargo handling productivities. This clearly indicates that planning based on existing levels of achievement would result in costly redundancies.
There are cases where massive new extensions have been executed while existing facilities operate at low levels of productivity. It can be argued that a port should not be contemplating adding or introducing new facilities until it has made full use of all possibilities for maximising the throughput with existing resources.
An investigation of port optimisation should always be conducted before planning new facilities. It was shocking to see a newspaper clipping in which a Pakistani port manager stated that we were operating at 50% capacity after having lost few berths, then logic denies building new capacities.
Port performance indicators are necessary tools for port management for the continuous evaluation of future capacity requirements which must be developed to monitor operational efficiency of varying combinations of port activities. The performance indicators can be classified into two main groups: the physical performance indicators and the financial indicators. Physical performance indicators include berth occupancy, which covers the period of time during which a vessel actually occupies a berth.
This indicator is very important as it influences the decision for investments in new berths. Planning on the basis of standard berth occupancy cannot be termed a very good means of accurate planning. The berth occupancy rate includes many factors which are beyond control and concern the cargo operation itself. Another factor is berth throughput, which relates to the actual tonnage loaded/discharged for each berth, expressed per current meter of quan and time.
For container terminals, the berth throughput is measured in TEU per current meter and time. Ship's turnaround time is regarded as an important performance indicator by the shipping lines to calculate the port's efficiency. The ship's turnaround time is directly related to berth occupancy and berth throughput.
The productivity of a ship refers to the volume of tons/units loaded/discharged per hour/shift/day. In the container traffic guaranteed minimum operating performance standards are used nowadays. These are normally related to the services provided to the vessels of a particular ship operator or consortia and are generally laid down as minimum container handling rates per ship working day or minimum container handling rates per hour.
On the other hand, cargo handling productivity is referred to as an indicator for all commodities separately for each operational unit. This productivity is defined as tonnage handled per man/hour or per gang/hour. This indicator makes it also possible to calculate the handling costs per commodity or commodities group and this will enable the port management to activate a flexible price policy.
Financial indicators play a vital role in port management. These are based on a cost accounting system which gives each month's information about the costs per ton/unit of commodity/commodities group discharged/loaded and will enable the management to allocate the resources in an optimal manner. Another key indicator is "contribution" which is defined as revenue less itemised costs. This is the amount of revenue which serves to cover overheads.
For an effective cost/revenue control it is necessary to calculate and compare the contribution figures per ton/unit for each commodity group regularly. Regular monitoring of performance indicators provides efficiency levels attained and therefore it is essential that ports should collect the range of statistics necessary for the effective monitoring and management of operations and for planning purposes.
Performance can be monitored in terms of output quality of service utilisation and productivity (cost per tonne). One important source of information for monitoring performance is the record of cargo handled which should provide a useful means of examining ship time in port and the progress of cargo handling. The time on berth will comprise operational time and non-operational time.
The idle time may be due to poor management of resources which could be for waiting for tugs, pilots, labour, equipment, repairs, information, documents and transport for onward movement of cargo. Practical use of performance indicators for operations and capacity planning is the performance review which can only be executed when an appropriate management information system is available.
Due to the complexity of the port and the variety of services which often require fast management decisions, it is necessary to provide the management with reports and analyses about the operational performance on a regular basis.
Ports are largely considered to be service providers and they are not expected to make huge profits. However, they must not incur operational loss due to poor management. Performance indicator is now the key tool of management of a port. All successful ports have cost accountants who monitor the cost per ton.
The success story of Hong Kong, Singapore, Dubai and Rotterdam is attributed to excellent port management and making use of all tools available to monitor performance.
Port Qasim has emerged as industrial port with maximised public and private sector participation. The port has handled 27 mill tons, an excellent record indicating optimum performance with zero waiting time. The other port can take the example of Port Qasim as a model, as the operation department is using port performance indicators.
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