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Corporate flag state governance

From EPSA - European Public Sector Award

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The mobility actively required by society has to remain available in a sustainable, safe, secure, and environmentally friendly way. In order to achieve this, the new policy for implementing regulations concerning maritime mobility is based on a management model inspired by corporate governance. This management model, known as corporate flag state governance (CFSG), aims to ensure that entrepreneurship and inspection go hand in hand, with the involvement of the three principal actors: ship owners, authorised classification companies and the Flag State Administration. These three actors provide competitive quality shipping from the ships flying the Belgian flag, meeting the highest quality standards. By applying the corporate governance philosophy, and considering the assurance of maritime mobility, there are two pillars which must be upheld: entrepreneurship and maritime mobility inspection.

The Port State Controls of the IMO Member States (International Maritime Organisation) carry out inspections on board foreign boats subject to their ports. Serious shortcomings are being identified in the compliance with regulations that the IMO supports. Recurring incidents are considered to be failures by the Flag State Administration of the flag flown by the ships concerned. On this basis, Flag States are put on the appropriate white, grey or black lists. The flag’s shipping quality is measured in view of the Flag State’s position on these lists. This quality, therefore, is one of the most important parameters in determining the competitive position of the merchant fleet of a country in the sea transport market. The target is to reach the top of the white list and to stay there, thus bringing an integral quality management system that is applied by the three above-mentioned actors.

The CFSG integral quality control system is made up of four components: the inter-role arrangements between the three main actors, a management tool in the risk-based Flag State responsen system, the dynamic regulatory policy, and ultimately, the internal quality management system by all of the actors. In order to reach the CFSG targets, the actors’ roles must go hand in hand and be clearly specified. To that end the formal arrangements and used instruments will be specified. The integral CFSG quality control system requires all players, also working internally, to manage their own adapted quality management systems. This internal system must ensure that the services provided meet RFSR standards, which remain in the domain of the basic inspection framework.

For the CFSG to function fully, a steering committee of representatives from the ship owners, classification societies and the Director General of maritime transport was set up. Under the chairmanship of the authorities, the steering committee evaluates annually the guiding flag state policy, to review the quality of services of each actor and the functioning of the risk-based flag state response.

Award info
Award category: opening up the public sector
Award type: diploma
Award year: 2011
Project type
Sector: Transport and infrastructure
Type of activity:
Keywords: Corporate, flag state, governance, innovation, public concern, sustainability, impact, financial performance
Short English description: The CFSG integral quality control system is made up of four components: the inter-role arrangements between the three main actors, a management tool in the risk-based Flag State response system, the dynamic regulatory policy, and ultimately, the internal quality management system by all of the actors.
Further information
Organisation: Federal Public Service Mobility and Transport
Other applicants:
Homepage:
Level of government: national level
Size of organisation: >100
Number of people involved: >15
Country: Belgium
EU membership: EU member
Language code: en
Start date:
End date:


Corporate flag state governance (50.8577002, 4.3596653)
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