LEGAL SERVICES
Article VII of MLC, 2006 for countries that do not count with organisations representing shipowners and seafarers. AMP expects to conclude the process of legal unification and adaptation by the end of 2011, after which owners and operators of Panama flag vessels will be able to apply for voluntary certification. The Panama’s Public Registry for ship and mortgage registrations has moved in to the AMP building and works around the clock since January 2011. The change has made it much easier to deal with Asian and European shipowners. Before the move into the AMP building, Panama Consulates would have to call in advance to request a Public Registry employee’s availability in the middle of the night, during Asian or European business hours. ‘It was a positive decision. The system is working well,’ lawyers have said. The 1998 law creating the AMP contemplated incorporation of the Public Registry, but this didn’t happen until January 2011. ‘Having everything under the same roof has proved to be a fantastic
improvement,’ says lawyer Tomas Avila of Avila & Co. ’The Public Registry’s efficiency also forces us [lawyers] to be more efficient,’ he adds. However, there are still some adjustments needed to make the hardware and software of the Public Registry, the AMP’s merchant marine department and maritime security compatible, he notes.
In 2006, Spain’s INDRA Sistemas was awarded the contract to design and implement the digitisation of the AMP. This included fitting offices with fibre optics, allowing video calls between Panama’s headquarters and regional merchant marine offices and consulates as well as creating a 24-hour call centre for AMP customers and producing the digitised ‘seafarers passport’. As INDRA’s contract ended in July 2011 and, with the installation complete, AMP will now have the opportunity to harmonise the electronic systems and create one model for hardware and software. As a contribution to AMP’s
harmonisation goals, the PMLA plans to propose to the Public Registry unified forms of applications for preliminary registration of ownership titles and mortgages, using a format more suited to shipowners and consular officials. ‘We also want to update the Panama standard form Bill of Sale,’ explained PMLA president Jazmina Rovi, who took office in April 2011.
One of the most important PMLA goals is basically to put the Maritime Arbitration Centre (CECOMAP, Centro de Conciliacion, Mediacion y Arbitraje Maritimo de Panama) to work. This has been in the making for some years, with
PANAMA MARITIME REVIEW 2011/12 83
all the side work completed, i.e. legal framework duly approved by supervising Government bodies and drafting of regulations and tariffs. CECOMAP rules for administration of maritime arbitration processes were approved by its Board of Directors on August 2011 with the strong support of both the PMLA and the Panama Chamber of Shipping. Several programmes are being put together, by local and foreign academic entities, to offer continued training on arbitration to those willing to be included in CECOMAP’s list of arbitrators. Law 8 of 1982 as further modified by Law 11 of 1986 and more recently by Law 12 of 2009, details the mechanisms of the Maritime Courts, the Maritime Courts of Appeal and the Arbitration Centre on maritime procedures and establishes the bases for modern and friendly procedures. Although lawyers have been pressing the judiciary to establish the Court of Maritime Appeals, there is only one final step to make it a reality: getting the budget necessary to give life to the Court created by the last modification to the Maritime Code of Procedure in 2009, says leading maritime litigator Juan Felipe Pitty, who was a former PMLA president twice. The Court of Maritime Appeals functions under a Magistrate, who among other requirements must be a lawyer with specialised studies in maritime law, be fluent in English and have no less than 10 years of professional practice in the field of maritime law as a practioner, teacher or member of the Judiciary system. However, the Judge of the Maritime Court only requires five years of similar professional experience. The Court of Maritime Appeals is expected to strengthen the maritime judicial system and to expedite, solving maritime cases that have been lagging in the system. ‘Maritime litigation in Panama results in one of the swiftest judicial procedures, with only two legal instances for any case,
first being tried at the Maritime Court, and now under the new law, going up on final appeal to the Tribunal of Maritime Appeals, which should result in final decisions within two years. By comparison competitive jurisdictions take three years or substantially more,’ says Pitty. Closer teamwork between the AMP and the PMLA is profitable for the industry say experts of the trade. The association has been keen to work harmoniously and closely with the AMP that oversees the sector.
Most maritime lawyers feel that there are still issues to address, which have lingered because of the change of administration. One in particular is the activation of the AMP International Maritime Advisory Council, which was included in Decree Law 7 of 1998 that created the Maritime Authority, with professionals of the sector and which is designed to improve and develop Panama’s merchant marine. The maritime sector business has significantly grown in activities related to ports, cargo and bunkering as well as the demand for legal services and migration affairs, that have increased substantially. The Canal expansion, when concluded, will drive more shipping companies to Panama making the country the prime transhipment regional centre, with prospects for a strong growth in legal services. Juan Felipe Pitty has already expanded into this area with the creation in early 2011 of Easter Star Management Inc. dedicated to ship management and back office needs for international vessels from Panama.
‘The future of Panama as a maritime centre is brighter than ever, and our ability to attract ship management services to complement our logistical platform following the Singapore model, as we are beginning to do, is a natural fit that can benefit the industry,’ says Pitty. •
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