Hundreds of ships mysteriously left idle off the Malaysian coast during the economic downturn are posing environmental and safety hazards, port authorities and fishermen say. The ships are lying off the southeastern tip of southern Johor state which faces onto Singapore, positioned outside port limits to avoid charges and official scrutiny.
Some authorities said they believed the ships were waiting out the export slump that has deprived them of cargo, while others said they were being used to conduct illegal oil transfers. "These vessels are not supposed to anchor there. This activity is considered illegal," Johor Port Authority assistant general manager Damon Nori Masood told AFP. "All of these ships are off port limits, and some are just one metre away from the boundary line, making us unable to take action," he said, adding that the vessels are all believed to be foreign owned or flagged.
Damon Nori said the ships are anchored in a narrow strait known as the "traffic separation scheme" (TSS) -- designed as a free passage area to allow authorities to control the movement of vessels in and out of the port.
The huge flotilla is illuminated at night, presenting the illusion of a floating city off the coast. Malaysian newspaper reports have said there are several hundred vessels now gathered there. Fishermen from coastal villages have complained about seeping pollution which is threatening their livelihood, and Damon Nori said the idle ships pose a safety hazard for vessels attempting to enter the port.
EDIT
http://www.terradaily.com/reports/Malaysias_mysterious_ship_city_causes_concern_999.html