towards 2015: the group strategy
Transcription
towards 2015: the group strategy
ISS Rep rter Issue 15 • March 2010 INCHCAPE SHIPPING SERVICES TOWARDS 2015: THE GROUP STRATEGY Off to the Antarctic Page 8 Solvang’s fleet renewal Page 11 Charity in the snow Page 19 Issue 15 March 2010 3 4 5 10 11 12 15 Leader CEO Claus Hyldager reports on a very satisfactory 2009 and forecasts for the year ahead Editorial On the likeness of editing a magazine to loading a ship Around the Network A Malay welcome and a Maori send-off; the Golden Cane in Montreal and an Antarctic shipment from Tierra del Fuego This is my job ISS Houston’s Robert Hawn tells of a long and rewarding career Customer Call Gas carrier, Solvang ASA of Stavanger has renewed and enlarged its fleet This page returns with more cautions from ITIC Local Expertise: Lloyd’s Agency ISS appointed in Doha Local Expertise: Iraq & Kuwait From supporting the US Navy to supplying a tower skyscraper Corporate Social Responsibility The remarkable efforts ISS and its people make for good causes Staff News Our movers and shakers Notice Board Following the festive season we catch up with staff outings and more The 2015 Strategy Plan Our Growth & Productivity Strategy will see us through all weather conditions Cook’s Corner Whilst change is constant in our lives, our values and standards must stay securely anchored 18 Shuttling to and from the Al Basra Oil Terminal 2 16 17 18 19 21 22 Legal Eagle 8 Ceremonial send-off 20 Scholarship for Kids project forges ahead Visit our website at www.iss-shipping.com Leader l ISS REPORTER MARCH 2010 Claus Hyldager Group CEO Results, forecasting and structuring for the future Dear Colleagues, A WARM WELCOME to the first edition of the ISS Reporter for 2010. As highlighted in the previous issue it looked like 2009 would, although not on the same scale as previous years, deliver a satisfactory financial result. Although at time of writing we are still preparing the audited accounts it looks like 2009 will be 10% above budget and importantly 13% above 2008 and we can consequently, all the various challenges taken into consideration, consider 2009 to have delivered a satisfactory result. With 2009 being one of the worst years on record for the world economy can we now expect the worst to be over and 2010 to deliver growth rates along similar lines as seen in 2007 and 2008? The best way to answer that very important question is by looking at what we (ISS) expect to achieve in 2010 and compare that against the global macroeconomic assumptions made by various analysts. As you would all expect, this year we again forecast ISS to grow on all fronts albeit not at a pace we have seen in years prior to 2009. Overall we look to grow our profit line with around 8%. Our 2010 growth plans are fully aligned with our 2010 – 2015 Strategy Plan, which calls for growth within our existing businesses, global roll-out of additional business streams and geographical expansion, the latter achieved from Greenfield and Acquisition investments. In addition, our success also depends on achieving the desired outcome from our “inorganic” objectives, namely in areas such as process improvement and economies of scale. With regards to what we can expect from the market I see it as a encouraging sign that global growth is expected to return to positive territory in 2010. We must not forget though that the pace of the recovery will be slow and subject to uncertainty. Global output is forecast to have contracted by 2.2 percent in 2009, but to register positive growth of 2.7 and 3.2 percent in 2010 and 2011 respectively. The main drag on global growth is coming from high-income countries whose economies are expected to have contracted by 3.2 percent in 2009. Prospects for developing countries are for a relatively robust recovery in 2010, with growth of 5.1 percent in aggregate. Output should strengthen further in 2011 but only modestly, rising to 5.1 percent for the developing aggregate as a whole and 4.2 percent for developing countries excluding China, India and Europe and Central Asia. So all in all we are expecting to grow our profit by more than double what the world is expected to grow by and consequently we will have to: • Ensure continuation of our existing business. • Improve our margins. • Increase our market share. • Increase our “Share of the wallet”. • Expand our geographical footprint. Visit our website at www.iss-shipping.com These five objectives should be of no surprise to anybody as they are all part of our Value Creation Map and thus well and truly anchored in our Group Strategy. I have in the past mentioned that we would soon be moving into phase II of our organisational development programme and you will without doubt have observed that some of the changes have already “unofficially” taken place since the beginning of the year. Most of you will by now have seen the recent communications regarding the Phase II changes and might be discussing the reason behind these changes. When we started this voyage together in February 2006 we had to apply a certain level of entrepreneurialism to our growth and development in order to examine a wide area of opportunities. We also had to develop a number of new approaches to how we do business, not least the formalisation of a well defined plan for how we would achieve our ambitions for years to come. Being entrepreneurs often also entails a less structured approach to how a particular business initiative is executed, which in turn is a threat to the long term viability of any such initiative unless you intervene by implementing well defined processes. The ISS family have grown from 1,700 to 3,500 employees since 2006 and we have within the same period more than doubled our profit. Such growth, whether this is within HR or profitability, requires a different method as to how we manage our business and I have consequently decided to change the management structure to ensure that our future growth and development plans will be implemented, executed and monitored in a fully structured fashion. This will inevitably lead to changes in areas that in the past would have been handled more casually, and could be in danger of being misinterpreted as bureaucratic. This is not the intention and will be avoided at all cost. I ask that you all embrace the changes as I am sure they will be of great value to our future development. 2010 will be full of challenges one of which will be pressure on our margins with most of these originating from companies operating in the same space as ISS and it is important that we ensure that attempts to take market share away from ISS are met with the fiercest of defence based on our ability to better control our individual financial and operational components. On behalf of the Board or Directors, our shareholders, the management team and myself, a big thank you for all your dedication and hard work. Claus Hyldager Group CEO 3 ISS Rep rter Issue 15 • March 2010 ISS REPORTER l Editorial MARCH 2010 INCHCAPE SHIPPING SERVICES TOWARDS 2015: THE GROUP STRATEGY Off to the Antarctic Page 8 Solvang’s fleet renewal Page 11 Charity in the snow Page 19 Cover: Long term planning is as much a part of corporate strategy as it is of a game of chess Editorial & PR Coordinators Head Office Isla Sinclair Europe Manu Willems Middle East/South Asia Asia Pacific Usha Sethumadhavan Darrell Wee Japan Yasuhiko Tsukamoto Australasia Annie Peterson North America Linda Clayton South America Cecilia Calderon Africa Lorna Gloster Design Dave Blake Doctors bury their mistakes but journalists . . . IN SIMPLE TERMS, editing a magazine can be likened to working a ship, the scheduled sailing time of a ship equating to the press deadline of a publication. The correct consignment of cargo (editorial material) is received for loading. Holds are cleaned (the Editor tries – and usually fails – to clear the decks and get a good run at the task ahead). Careful stowage is vital (layout of stories and pictures should flow logically, attractively and must be relevant and interesting). The terminal’s berthing window must be strictly adhered to (the printer operates to similar strict time slots). When ‘loading’ ISS Reporter every three months, substantially more material lands on the editorial desk than will fit into the space available. This means that the editing process involves a great deal of cutting as well. But the original material is still sitting in a folder of the editorial Outlook Inbox. Still in the warehouse if you like, though that’s pretty much where this analogy ends. But if you do want to know more about a particular story, there may well be more information to hand; and if not, then the source of the original material will certainly know more of the facts behind it. Don’t hesitate to email me at [email protected] if there’s something in the magazine you would like more information on. “Editing,” explains our old stalwart, Wikipedia, “is the process of selecting and preparing language and images through processes of correction, condensation, organization and other modifications in various media…... Editing is also a practice that includes creative skills, human relations, and a precise set of methods….. Editors also write headlines and work on more substantive issues such as accuracy, fairness and taste. (They) select news stories for inclusion, ….choose the layout of the publication and communicate with the printer.” This is pretty much how it works on ISS Reporter. I receive or source and then edit (often re-write) the text and images then send it to our design guru, Dave Blake with some instructions as to how I want the pages laid out. In practice, Dave has a pretty good idea of what’s needed, but there’s still a fair bit of toing and froing before the proofs are finalised. Then after a final, final proofreading, it’s signed off and goes to press hoping always to have avoided the nightmare expressed in the old adage: Doctors bury their mistakes, engineers build on their mistakes, lawyers hang their mistakes, accountants account for their mistakes, but journalists put theirs on the front page. Nick Elliott FICS Editor Printers: Holbrooks Printers Ltd., Portsmouth ISS Reporter is published by: Inchcape Shipping Services 5/7 Lakeside Business Village Fleming Road, Chafford Hundred Essex, RM16 6YA UK. Email: [email protected] Tel: +44 1375 484900 No part of this publication may be reproduced in any form without the written permission of the publisher. © Inchcape Shipping Services 4 Visit our website at www.iss-shipping.com MARCH 2010 Around the Network l ISS REPORTER Accolades like the one below don’t come every day and ISS Mackay’s Craig Harris together with ISS Australasia’s Royce Brain were quick to praise ISS Mackay’s Auckland Cruise Manager, Douglas Colaco, Napier Port Operations Manager, Ken Lowe and the team. It should be pointed out that regulations and inspections applying to such voyages are extremely stringent and ISS Mackay’s prompt action resulted in a saving of some US$1m. All involved, including the owners, were looking for, and found, a solution – not just a shortcut. The arrival in Penang of the cruise ship DISCOVERY on the morning of 1 January heralded in the New Year. It was her maiden call and she was welcomed by traditional Malay dancers whilst ISS Country GM, Capt.LH Khoo exchanged momentos with the Master, Capt. Derrick Kemp. Riccardo Tommasi (second from right), Shipping Manager of Nigerian Agip Oil Company, signs a contract with ISS Senior Operations Manager, Western Ports - Victor Nwabu, accompanied by Precious Okwu Manager Eastern Ports. The signing followed the award to ISS of a tender for provision of shipping terminal agency services in Nigeria. Visit our website at www.iss-shipping.com Gentleman I am the Programme Manager Outlying Islands for the New Zealand Department of Conservation based in Invercargill and oversee the day-to-day management of the New Zealand subantarctic islands including tourism at the islands. As such I had the responsibility for the on-the-spot management of the recent incident where the CLIPPER ODYSSEY didn’t pass her hull inspection putting her voyage to the subantarctics at risk. From the time we got notification that the vessel had not passed her inspection I worked closely with Doug Colaco, the ship’s agent, to try and find a mutually acceptable solution where the expedition could continue while not putting the unique marine environment around the islands at an unacceptable risk. As you will be aware we came up with a suitable solution, getting experts in to do a specific risk assessment for this voyage. In part we were fortunate that we were able to get a suitably experienced and skilled dive team to carry out the work at such short notice and that the organisms on the hull were low risk. However a large part of why we were able to get to a satisfactory end point was Doug's approach to the problem - put simply he didn't waste time trying to argue or debate what the standards were or to try and weaken them, he focused on finding a solution. As you will appreciate this is not always the case, with some operators/agents spending more time arguing with us over technicalities than dealing with the issue. It was a pleasure working with Doug on this issue and we have already discussed working more closely together in the New Year to develop a more formal contingency plan should a similar situation occur in the future. I also thank you for supporting Doug in this instance over what was a stressful time for all involved with a lot at stake both financially and environmentally. Pete McClelland, Programme Manager Outlying Islands, Department of Conservation 5 ISS REPORTER l Around the Network NCC SUDAIR docked at Sprague terminal in Searsport, Maine during the first major snow storm of the winter. Captain and crew wanted a taste of Maine's cuisine and, reports ISS’ Roman Józefiak: “Lobsters were, as always, fresh and available.” Chris Stone and team were welcomed at the new Cochin office in the traditional way of Chendamelam. “The guys in their traditional attire use drums and sticks to make the rhythmic welcome music,” writes Usha Sethumadhavan, “and young girls carry flowers and dab sandal paste and kumkum (red powder from the temple) on the guests’ foreheads. Chris then cut the ribbon and he and Pradeep Mishra lit the lamp in the traditional Kerala way after which Chris made a short speech. It was a very different experience altogether for all the non-Keralites present!” MARCH 2010 ‘To reach the highest standards we depend on our people - their welfare, training and expertise’ says our Mission Statement so ISS Qatar’s Rohan D’Souza conducted a field trip for the back office staff in all streams, to the port of Ras Laffan. “The purpose of the trip was to educate our back office staff on day-to-day operations” says Rohan. “They were given an overview of vessel, cargo and crew related issues and operations. They met the port authorities, officers and crew of the PACIFIC RAPIER who were extremely hospitable and took our staff on a guided tour of the vessel explaining their responsibilities. And we organised a question/answer forum to further enhance their understanding after the tour. It was extremely pleasing to see the participation that our staff showed including the interest and excitement in wanting to learn more. We shall certainly continue to conduct such educational trips in future as we believe truly that……‘In our race for excellence there is no finish line!’ The POSEIDON LEADER made her maiden call into Baltimore. L-R: Scott Sanko - NYK Baltimore Port Captain; Cristian Nicolae - Chief Engineer; Don Maney - ISS Port Manager; Cindy Burman - Maryland Ports; Capt.Kawasaki – Master; Capt. Matsushige - Senior Manager Operations NYK RoRo; Bill Wade - Stevedore Ceres Marine Training ships from the navies of eight Latin American countries paraded in front of the shore of the Carioca in Rio for the Regatta: Sails South America 2010. Through the southern waters of the sunny Cariocan capital, and towards the port, the eight great sailing ships paraded with huge flags – past the famous beaches of Ipanema and Copacabana. Training Ship JUAN SEBASTIAN ELCANO of the Spanish Navy was attended by ISS throughout the Regatta. 6 Visit our website at www.iss-shipping.com Around the Network l ISS REPORTER MARCH 2010 On board OOCL BELGIUM, the first ship to enter Montreal Port Limits in 2010. As is tradition, the Master is presented with the Golden Cane by Montreal Port Authority. The OOCL BELGIUM was also the first of OOCL’s fleet under our new representation contract in Canada, reports Jason C. Skorski. L-R: Tony Behemy - Port of Montreal; Capt. Jean Luc Bedard - Montreal Harbour Master; Lenard Coull - ISS; Chee Leong Ch’Ng Chief Engineer; Capt. Steven Lloyd - Master; Michael O’Morchoe - OOCL Canada Inc.; Kevin Doherty, Michael Fratianni, Migo Kanondjian Montreal Gateway Terminals USS SWIFT visited Mombasa under ISS agency, as part of an Africom initiative in which US Navy and other military forces are at work with African countries aiming to improve maritime safety and security generally. The high speed vessel has previously visited a number of West African nations on similar missions. ISS Operations Representative in Ushuaia, Walter Travaglinni, presents a commemorative plaque to the Commander of the Brazilian Navy’s Navio Polar ALMIRANT MAXIMIANO, CMG Sergio Ricardo Segovia Barbosa. L-R: Global Shipping’s Ernan De Leon - Vice President for Operations, ISS’ Ariel Dumapit, Capt. Ryan White of USNS BRUCE HEEZEN (3PSC vessel) and Eric San Pedro during the vessel’s visit in South Harbour, Manila. Growth & Business Development in 2010 & Beyond was the theme for the Middle East & India managers meeting in Cochin. And port representatives made a presentation to the meeting on Cochin as an emerging hub port in the Indian Ocean region. Visit our website at www.iss-shipping.com 7 ISS REPORTER l Around the Network MARCH 2010 ISS arranged for the barge CRISTINA POLAR to be transported from Ushuaia on Tierra del Fuego to the Antarctic to assist in discharging materials for the Antarctic International Bases. ISS Cape Town was appointed as representative in Simons Town – South Africa for the US Navy whose submarine SAN JUAN visited for rest and recreation. GRAND VOYAGER, of Ibero Cruceros Espana, docks in Rio before starting the cruise season to see to problems with her bow thruster. ISS Rio de Janeiro provided clearance services and the connection of vital spare parts for the prompt completion of the job. ISS and Hapag Lloyd India have signed an MOU for us to take on the husbandry, port operations and counter facilities for Hapag Lloyd in India from April this year. Peter Bradel, MD Hapag-Lloyd Middle East/India and ISS’ Eddie Filus signed with, from left, Anil Thakkur, Glen Fernandes and Gladis Dsouza (all from HL) and ISS’ Pradeep Mishra and Larren Fernandes, standing. ISS-KUM did ISS-Mackay a favour by securing them the agency for Korea’s first Polar Research Vessel, ARAON, in Lyttleton, Christchurch on her way to the Antarctic. A traditional ceremony was held before her departure. ISS-KUM’s John Song persuaded her owners to change their planned agency arrangements in favour of ISS-Mackay who have extensive experience in handling such calls. ISS Kuwait conducted an in-house H1N1 Awareness Campaign for all its staff to enhance employee awareness and understanding of the symptoms of H1N1, precautionary measures to be taken, and maintaining business continuity in emergency situations. The seminar covered an Introduction and Objectives, Background on Swine Flu (H1N1) Virus, Signs and Symptoms, 10 Swine Flu Preventions and Treatment / Medication / Vaccination Forum Keelung Harbour Bureau awarded a commendation medal to COSTA on their 64th Anniversary thanking the line for its contribution to passenger volume growth in 2009. Joeson Wei and Jeff Lee of ISS Taiwan (on right) accepted on behalf of COSTA. 8 Visit our website at www.iss-shipping.com Around the Network l ISS REPORTER MARCH 2010 ISS Kuwait recently conducted workshops on Managing Team Performance for its managers and supervisors facilitated by Balram Srinivasan - HR Executive. The programme, comprising of interesting role play, case studies and learning In support of the Anchor Aweigh programme, ISS India conducted a Swift workshop in Mumbai facilitated by Sandeep Pande, Regional Operations Manager and Nishant Louis, Business points, helped participants develop personal skills involved in performance improvement; understand a motivating approach to giving feedback, identifying and resolving performance issues. Systems Analyst. Participants came from across India for this important initiative towards ISS ADSTEAM operational integration which now functions as one entity. The intricacy of heavy lift and abnormal indivisible load (AIL) operations. ISS helped oversee the discharge of a gantry crane at Terminal Pacifico Sur, Valparaiso completing a five crane delivery representing an investment of US$ 8m. The operation, assisted by four tugs, took three hours. Next port was San Nicolas in Peru, also with ISS in attendance, both calls on behalf of Zhen Hua. Also pictured are Rodrigo Soto and Felipe Hernandez, both ISS operators, with Captain Capt. Xiong Wei. Luciano Oliveira, GM ISS Brazil, chaired the annual lunch of the Chamber of Shipping, paying tribute to the Brazilian Navy with senior officers and officials as guests. Visit our website at www.iss-shipping.com 9 ISS REPORTER l This is my Job: Robert Hawn MARCH 2010 My name is Robert Hawn and I am General Manager - Greater Houston, charged with overall responsibility of operations and administration both ISS Houston and ISS Jacinto Port, two of the busiest and most strategically important offices in all of North America. WE HAVE A diverse team of professionals here, divided into two stand-alone offices, and committed to uphold the ISS standards of providing outstanding service to our customers. In my years working in different offices, I have to say this is one of the best groups of people I’ve ever been associated with, both in my offices and throughout the Company. I feel at home here, being a native Texan. And it’s almost as though I have worked my entire career with Inchcape because prior to 2003 when I actually joined ISS, I spent 21 years working with two other agencies later purchased by ISS in their expansion across North America. I started as a boarding agent back in 1978, employed by a regional shipping agency with a broad client base and excellent reputation. This was in Beaumont TX, nearby where I was raised. That company, still in operation today, had both agency and stevedoring operations under one roof, but since they had need of an agent, that’s where I was assigned. A skinny 20-year old single guy, tired of taking boring classes at the university and working “normal” jobs, was just what they needed to jump into the non-stop business of steamship agencies that supports the world of international commerce. In those days we handled a wide variety of vessel calls at various terminals along the Sabine/Neches Waterway. The products were as diverse as the vessels too: crude, clean and dirty product, petrochemicals, LPG, grain, dry and liquid bulk sulphur, fishmeal, petcoke and general cargo such as bagged flour, wood, paper and project cargoes. When things were busy, I was lucky to catch three or four hours of sleep a night. I had no backup except in time of emergency, when the stevedores would help cover a boarding, but otherwise worked every vessel, weekends, holidays, and planned days-off included. I learned the job the old-fashioned way, working long hours, doing all the paperwork by hand or with a manual typewriter in the office; no 10 A native Texan cellular phone, no pager, no radio, and only the telex with a paper tape for recording a message instead of typing it on a live connection. When I presented my first set of entry paperwork to the Customs officer, she scanned the first page and handed it back with a stern look and told me I could bring it back when it was right. My boss laughed and threw me another set of completed paperwork as an example. There was no formal training offered; it was truly on the job, and a virtual trial by fire as I learned when only seven months into my new career, I was called out early on a Sunday morning with the news that the fully-laden molten sulphur tanker I had sailed only two hours previously had been rammed by an inbound tanker laden with crude oil and had sunk in the river less than two miles from her loading berth, sitting in the mud, broadside to the current where she remained for over a week while salvage operations were conducted. I re-boarded her, walking decks fully awash with dirty river water and commiserated with the American skipper about the sorry state of his beautiful vessel. When things slowed down on the agency side, I would ride with the stevedores, learning all I could about that aspect of the business as well. I loved getting involved with the ship’s personnel and supercargoes, listening as they worked to resolve problems with cargo stowage and operations. Over the years I’ve worked in dozens of ports across several states and held numerous positions, boarding agent, general manager, accounting manager, IT, and vice president. It’s never boring! My wife and I have raised two fine sons, both with families of their own now. I purchased my first computer in 1987, and still enjoy tinkering and gaming on them, along with movies, reading and physical training. We also attend church regularly and usually sing in the choir wherever we are; right now that’s contemporary Christian Praise music such as you hear on the radio. I’ve had the pleasure of developing many lasting friendships with ship’s personnel from all nations, especially a double-handful of truly exceptional captains, customers, local officials, port and terminal personnel, and vendors providing some of the most diverse services you can imagine. The friendships I truly value the most are with my past and present co-workers, although we’re sometimes spread across locations many miles apart. Visit our website at www.iss-shipping.com Customer Call: Solvang ASA l ISS REPORTER MARCH 2010 Newbuildings reduce fleet age profile ESTABLISHED IN 1936,Stavanger-based Solvang ASA specialises in the transport of Liquid Petroleum Gas and Petrochemical Gas. The Company’s fleet of some 18 owned and managed vessels trade across all continents and ISS acts as Solvang’s agent globally. Solvang has embarked on a major fleet renewal programme recently with 10 newbuildings delivered in the past two years. This has reduced the fleet age profile from 17 to just seven years. Most recently Solvang and its partners contracted with Korea’s Hyundai Heavy Industries for construction of six LPG tankers with a capacity of up to 82,268 cbm and Meyer Werft, Germany for four ethylene tankers of 17.000 cbm. All vessels were delivered in 18 months from July 2007 until January 2009. “We are building the business for the long run,” says MD Magne Morken. The Company also took delivery of three 60.000 cbm newbuildings from Kawasaki, Japan in 2003/4. Solvang ASA is the managing owner of the vessels with an ownership share of 20% to 30%. ‘ . . . even more important is how the ships are managed, how they are operated and how people put the ships to usess ’ Magne Morken, Solvang’s MD “Our ships are built according to the latest specifications,” says Mr Morken, “adopting new and functional technology. But even more important is how the ships are managed, how they are operated and how people put the ships to use. In this area we are getting better all the Visit our website at www.iss-shipping.com time. We are always improving on our already high competence levels and our broad experience. Our strength is achieving reliable deliveries to the highest quality. Our aim is to continue looking ahead while making use of our past experience. We build for the customers of tomorrow under our motto: ”Reliability and Flexibility through Knowledge and Experience.” As time passed Solvang saw itself become more and more specialised and skilled within its chosen sectors. “We know the nature of the assignments and we can focus on all the details that have to be in place to secure a good assignment. The size of our company also makes us able to adapt to all assignments within this field.” Marketing of the Solvang fleet is done through two joint venture companies; both owned 50% by Solvang. International Gas Carriers based in Oslo is marketing the fleet from 57,000 cbm to 82,268 cbm whilst Eitzen Solvang Ethylene based in Copenhagen and with another office in Singapore, is marketing the ethylene vessels from 12,000 cbm to 17,000 cbm. Solvang will continue investing in the several segments which make up the gas market, and the newbuildings are all part of that strategy. 11 ISS REPORTER l The 2015 Strategy Plan MARCH 2010 2010-2015 Strategy Plan ISS AS A GROUP has adopted a Growth & Productivity Strategy: the Growth Strategy ensures that we expand revenue opportunity and enhance customer value, whilst the Productivity Strategy ensures that we reduce our production cost and increase asset utilization. Growth & Productivity The Group Strategy Division is headed by an Executive Vice President, Terry Gidlow who reports directly into the Group Chief Executive Officer. The Group Strategy Division is responsible for defining the Group Strategy, ensuring it is executed across all levels within the company. The Group Strategy Division is also responsible for rolling out and managing the Balance Score Card system. A Strategy Plan is a dynamic document; there are bound to be changes as the landscape within which we operate varies. Given the time span covered by the Strategy Plan (2010–2015) we have ensured that the fundamentals are flexible enough to cater for unforeseen events that could effect the way in which we or our customers do business. While maintaining the flexibility to react to such events we need be sure that the underlying fundamentals are rigid enough to ensure that we retain a laserlike focus on our Vision to make certain we are not managing a moving target. The Group Strategy Division is also responsible for the Groups Merger & Acquisition (M&A) activities. A significant part of the 2015 Group Strategy is leveraged off an extensive acquisition programme over the next six years. The Strategy Process There are eight key steps to achieve and deliver our Strategic Outcomes. Starting with our Group Mission Statement. which defines our raison d’etre, or why we exist as a company, followed by the Group Value Statement, this is an affirmation of the core values that we have adopted as a Group, guiding us in the manner in which we behave and conduct our business. The Group Vision puts a flag in the ground at a point in the future and defines what and where we want to be as a Group at that point in time, in this case 2015. The Strategy Plan is the detailed road map that will enable us to achieve our vision, goals and objectives based on our core values. There is a financial model, the Strategy Model, that takes the forecasts and projections that are distilled from the Strategy Plan and gives us a detailed view of what the group will look like from a Profit & Loss, Balance Sheet and Cash Flow perspective, 12 right the way through the strategy plan. The Strategy Map, otherwise known as the Value Creation Map, is used to ensure that we achieve a balance between the Growth and Productivity Strategies, while placing an emphasis on four key perspectives: Financial; Client; Internal; Learning & Growth. The Balanced Score Card is a tool that is used to manage and influence the organisational behavior, to ensure we achieve our Vision. The Balance Score Card, as the name implies, is designed to ensure that we take a well balanced approach to quantifying and measuring the four different perspectives. From the Strategy Map we are able to define a number of Targets and Objectives at all levels within the Group. This enables Management to focus on different items and elements in the business that all dovetail with the big picture of delivering on our Group Vision. From the Targets and Objectives we are able to distill a number of Personal Objectives that are defined from top to bottom. The culmination of the steps as defined below enable us to achieve our Strategic Outcomes. The 2015 Strategy Plan Vision Statement To be the world leader in maritime and cargo services by: 1. Continuing the evolution from a partner of choice to a strategic partner 2. Offering scalable outsourcing solutions across the world 3. Offering an Enterprise Value Proposition 4. Expanding our network 5. Globalising our service range: Marine Services; Cargo Services; Government Services; ERP solutions Mission Statement We will provide a sustainable financial return above shareholders’ expectations through fulfilling our vision and leveraging on our combined financial strength. Visit our website at www.iss-shipping.com The 2015 Strategy Plan l ISS REPORTER MARCH 2010 Value Statement To reach the highest standards we depend on our people. Their welfare, training and expertise is core to our success. Our foundation for developing our people is securely anchored in health and safety policies. We foster strong ethical values and a team spirit that rewards commitment, loyalty and initiative. We embrace respect for the environment. We are committed to accountability, honesty and transparency. In 2006 Management set out to double the Group’s profit by 2010. By the end of 2009 we had nearly tripled the 2005 profit and current projections are that we will double the 2009 profit before the end of 2015. We have woven eight key Strategic Themes through our 2015 Strategy Plan and these form the foundation of our growth and productivity strategy. to benefit from the volatility in the markets by continuing to hedge our bets through expanding our geographic footprint and the scope of services we offer. Partner of Choice – Strategic Partner We are fortunate to have a large client base consisting of over 3,000 clients. The reality however is that no matter how good our service levels are, or how strong our client relationships are, or how competitive our prices are, we are always only one telephone call or email away from having a contract terminated. Hence it is imperative that we are able to make the transition from being a Partner of Choice to becoming a Strategic Partner to our clients and thereby securing our position with our clients by becoming an integral part of their workflow processes and therefore a Strategic Partner. Scalable Outsourcing Solutions By offering our principals scalable outsourcing solutions, we not only assist our clients in reducing their fixed cost and enabling them to focus on their core activities, we also take a quantum leap forward in moving from a ‘Partner of Choice’ to becoming a ‘Strategic Partner’. Enterprise Value Proposition The unique Enterprise Value Proposition that ISS is able to offer the market is a combination of the diverse scope of services that the group offers across four broad Business Streams, then leveraging these services and capabilities across the largest proprietary office network in the industry. We can therefore provide bespoke solutions for any situation, scenario or opportunity that may arise with any current or future client in any location in the world. Strategic Themes Hedging our Bets During the market turmoil of 2009 ISS posted a 15% gain in profit over 2008 which was a record year in itself. Our ability to weather the recession we believe is rooted in a combination of our solid geographic footprint and the diverse scope of services offered across the Group, hence ensuring that we were not unduly exposed to the economic health of any one country, continent, industry or commodity complex. We do not pretend to know which economies are going to flourish and when, nor do we pretend to know what commodity prices will do, but we will ensure that ISS is well placed Visit our website at www.iss-shipping.com 13 ISS REPORTER l The 2015 Strategy Plan The Enterprise Value Proposition is something that evolves and grows exponentially with the addition of services, locations, capabilities and skill sets. By focusing on the Enterprise Value Proposition, Management is able to ensure that ISS is positioned to meet the customer’s needs at any time, place and for any scenario. Business Stream Balance As a global organisation with a broad and diverse product range ISS is in a unique position whereby we are not dependent on a single Business Stream. Consequently the volatility in certain sectors is less likely to have a fatal effect on our business and more likely to give rise to new opportunities that ISS can take advantage of. It is therefore essential to ensure that the company achieves a balance between the EBITDA contributions of the four Business Streams. Geographic Expansion By 2015 ISS will have a presence in every country that has maritime activity, with the logical exception of countries that fall foul of 14 United Nations sanctions. We will achieve this geographic expansion through a combination of ‘Green Field Start Ups’ and acquisitions. The Strategic Agenda for the geographic expansion is set at a corporate level and is executed at a regional level. MARCH 2010 We have set a target for 2015 of 5% conversion of Gross Turnover into EBITDA; this will be achieved through both organic and inorganic growth to expand the scope of services currently provided by the Group. Strategy Plan roll-out Business Stream Expansion ISS today has Marine Service activities in virtually every location we are present in. However we concentrate on Cargo Services in the Middle East, Government Services in the Middle East and Africa, and ERP in N. America, Europe and Asia. Management will roll these business streams out over the scope of the proprietary office network and exploit the benefits offered by the Fixed Cost leverage that exists. Wallet Share In 2008 ISS reported revenue of circa US$ 500m and an EBITDA of $64m. The $500m was generated from a Gross Turnover in excess of US$3bn, thus an effective conversion rate of 2.13% of Gross Turnover into EBITDA. The Group 2015 Strategy Plan was completed during the 4th quarter of 2009. In January 2010 we commenced the roll-out of the Group Strategy plan. The role of Group Strategy Division in this process is that of FACILITATOR. Our primary objective is to facilitate the role-out and adoption process across the Group, to ensure there is consistency and alignment with the Group Strategy Plan. The second stage commencing in the 2nd quarter of 2010 involves the Regions cascading the strategy planning process and templates down to the individual countries. The process facilitated in the Regions by Group Strategy Division will be replicated at a country level by the regional management teams, supported by Group Strategy Division. Visit our website at www.iss-shipping.com Cook’s Corner l ISS REPORTER MARCH 2010 David Cook Vice President – Global QA & HSSE, is based in Portland, Oregon THE MARITIME INDUSTRY has a long and proud history. The improvement in the quality of human life is closely linked to the industry and the evolution of the global transportation infrastructure. By any measure, the combination of ship, barge, rail, truck and air transportation that exists in the world today is incredibly efficient. The transportation options available now to nearly any corner of the globe would be astonishing to anyone who was around as little as 50 years ago. The cost to move a ton of material has also dropped or changed dramatically in the last 50 years. So has the time that it takes to load, transport and discharge cargo. As an example even in the 1970s it was not unusual for a general cargo ship to stay in port for several days to discharge and load. Now most ships are in for hours and not days. In the background of any cargo movement there are a series of transactions and waypoints where communication plays a key role. Nearly every aspect of what an agent does pivots around timely and complete communications. These used to be sent by mail. Mail was replaced by cables and telexes. Cables and telexes by fax, then e-mail and overnight delivery services. Each method of communication facilitated the transmission of required information between the stakeholders of a transaction. E-mail and overnight delivery services are now being displaced by updating ‘live’ or real time websites and scanned document dispatching and archiving. Ship-related communications evolve and accelerate but the type of information being communicated or data elements that are related to each transaction haven’t changed significantly for hundreds of years. Bills of lading produced today have nearly identical wording as they had 200 years ago. Phrases like “shipped in apparent good order and condition” and “In witness whereof the master or agent has signed three original bills of lading…” for example. Even some ship designs have changed without changing. A good example is Cunard’s QUEEN MARY 2 (QM2). The original QUEEN MARY was built during the glory days of the passenger liner trades in the 1930s. The new ship does take aesthetic cues from the original QUEEN MARY and the QUEEN ELIZABETH 2, but they have added all the updated amenities that Visit our website at www.iss-shipping.com Changing without Changing are expected on a modern cruise liner. Cargo ships have changed from sail to steam and steam to diesel and their size has grown to become more efficient, but their function has not changed since the first cargo was transported. The goal of the carrier is still to make a profit. To do this the carrier must properly load, handle, stow, carry, keep, care for and discharge the goods carried, and time in port must be minimized. Inchcape Shipping Services has a long and proud history of providing port agency service excellence over the last 162 years, through its owned agent network. In our capacity as agents it is our duty to coordinate the ship’s activities to ensure that the time spent in port is efficiently utilized and kept to a minimum. This allows the ship to reduce port expenses and carry more cargoes in a given year. Good and timely communications is the key to meeting the principal’s expectation of an efficient port call. Over the ages agents have had to change and adapt to the new methods of doing the same old business. In the present day, we all must change our mindsets from typing out emails to entering data elements into our systems so the key data and documents can be seen by our principals in as near real time as possible 24/7/365 without contacting the local ISS office. Our systems will also create the basic messages and documentation required when the correct and complete data is entered. To provide Enterprise Value Solutions to our principals, timely, complete, and accurate data entry is fundamental. When done correctly this improves the communication of the required details via the methods that our principals want. The Key Performance Indicators (KPI’s) we are now tracking provide us with the means to monitor our own data integrity and ensure that we flush out and seize opportunities for improvement. The winds of change never stop blowing and we need to make sure that we adapt to the needs of the customer by maximizing the use of global systems and technologies, while at the same time maintaining that local focus, expertise and service level that our principals rely upon. This means changing without changing… Security This is a good time to check to make sure that any identity cards required by ISS, port authorities, terminals or facilities are up-to-date and valid. It is important that we possess and produce on demand the correct identity documents for the areas we need to enter in the maritime security environment Like safety awareness, security awareness is important. Please remain vigilant against security complacency. If there are any questions on this or any other topic raised in this column, they can be directed to your Regional QA & HSSE manager. Comments are always welcomed. Until next time… 15 ISS REPORTER l Legal Eagle In this issue we record, with our thanks to them, some of ITIC’s helpful advice citing situations that have arisen amongst their membership and providing guidance on some of the thorny problems that agents face on a daily basis. MARCH 2010 Legum servi sumus ut liberi esse possimus* OIL MAJOR SISTER VESSEL ARREST A ship agent arranged for the towage of an oil major’s rig through the Suez Canal. The oil major considered the cost to be high and refused to pay for the service. Agents in the Suez Canal have a bond with the Suez Canal Authority. If a shipowner does not pay for a service while transiting the Canal, the monies are immediately withdrawn from the ship agent’s bond. After several unsuccessful attempts to resolve the matter and secure payment, the agent contacted ITIC to pursue the debtor. Initially, ITIC’s messages met with no response. The oil major was the registered owner of several oil rigs and drilling ships. However, these are usually very difficult to arrest due to their lengthy stays at sea and the infrequency with which they call at port. Accordingly, the Club located a sister rig that was due to arrive in Durban for repairs. After coordinating efforts with our local correspondents, the agent and South African lawyers, the Club arrested the sister vessel in Durban, pursuant to the maritime lien created by the unpaid Suez Canal dues. Within twelve hours the debt was paid in full. OUTSTANDING DISBURSEMENT ACCOUNT A ship agent had an unpaid disbursement account of USD 20,300 following a ship’s call. The ship arrived on 27th October and departed 15th November 2007, during which time repairs were carried out in dry dock. The agent had been nominated by the charterer and appointed by the owner. Due to the unexpected repairs, the ship was unable to sail and the charterer declared her off-hire. The agent continued to act for the owner during this period. The owner paid for most of the services after receiving the disbursement account, but did not pay two of the invoices. The owner disputed the invoices without giving any reason. ITIC wrote to the owner, who was based in Russia, but the correspondence went unanswered. Therefore, the Club requested the assistance of a local correspondent. After numerous calls with the owner, a meeting was arranged and the owner’s “confusion” over the invoices was clarified. The owner then stalled once more with further questions; again they were clarified to their satisfaction and, finally, payment was received in full. 16 CONTRACTUAL RESPONSIBILITIES AND SIGNING OFF In response to the fall in global freight rates, ITIC has noticed that some port authorities are attempting to place greater responsibility on local ship agents. We have recently seen one communication from a port authority to an agent attempting to hold it responsible for port dues left unpaid by a shipowner. Although a ship agent's statutory liability varies from jurisdiction to jurisdiction, the general rule in most jurisdictions is that one who acts as an agent does not become personally bound on a contract that he makes for a principal. As such, if port dues are unpaid, the agent should have no financial responsibility for these charges. Any agent who receives such a communication from a port authority should make it clear in response that they cannot accept financial responsibility for the debts of the shipowner. The same port authority asked the ship agent to ensure that any ship not fully funded prior to departure be referred to them. This guidance was helpful because the agent could simply refer in its communications with owners to the demands of the port authority. Ultimately, if the port authority requires full prefunding for the cost of the port call, prior to departure, the ship agent cannot be responsible for any delay if the port authority decides to detain the ship. Similarly, the risk of the ship agent being left with a large bill from the port authority is removed. It is also opportune to remind you that ship agents may become involved needlessly in matters which should only concern their principals because of mistakes in the way that they represent themselves to others. If a company signs off a contract in its own name without making it clear that it is acting as agent for and on behalf of another party, there is a risk that the company will be deemed to have contracted on its own behalf. Agents can make this mistake all too frequently, but it causes problems only when the principal is unable or unwilling to meet his obligations to his contractual partner. However, lack of care can land the agent in the middle of a dispute that has nothing to do with him. The agent may have to satisfy debts or liabilities to his principal’s contractual partners. In most jurisdictions, the agent can avoid this by always signing off every communication “ABC Company, as agent only for and on behalf of XYZ Company. *We are slaves of the law in order that we may be free. Visit our website at www.iss-shipping.com Local Expertise: Lloyd’s Agency l ISS REPORTER MARCH 2010 Doha port Appointment in Doha ISS HAS BEEN appointed as Lloyd's Agent in Doha, Qatar effective 1 February. This means that, across the Arabian Peninsula, ISS now holds the coveted Agency in Doha, Umm Qasr, Kuwait, Bahrain, Abu Dhabi, Dubai, Muscat and Salalah. With this addition ISS expands its already substantial independent inspection network with offices situated in the Middle East as well as East Africa. These offices closely co-operate to cover the requirements of cargo underwriters, Protection & Indemnity Associations, and individual shippers and consignees. “Within the Lloyd's Agency network ISS employs highly qualified surveyors with years of experience in the marine industry,” says Harry Karanassos, General Manager, Lloyd's Agency, Dubai. “It is this experience, backed by the appropriate qualifications, which together produce accurate, balanced, and cost-effective results of the highest quality.” The relationship between ISS and Lloyd's goes back to 1865 when it established its first Lloyds’ Agency in Bahrain. Since then ISS has strengthened its teams of surveyors in order to serve the international insurance markets and the private sectors of the marine industry. Today ISS employs Marine Engineers and Master Mariners to respond to the most demanding situations, with its insurance services now complemented by experienced Loss Adjusters too. Visit our website at www.iss-shipping.com “The Survey Division of ISS,” Harry continues, “has recently been entrusted with significant inspection assignments such as the supervision of the discharge of all the traincars for the prestigious Dubai Metro project; and last year, successfully supervised - on behalf of DP World - the transfer of two container gantry cranes from Port Rashid to Jebel Ali Port in Dubai. “This latest appointment as Lloyd's Agents in Doha is both a great honour as well as recognition of the highest standards of service that ISS upholds.” Train-cars for the Dubai Metro project Harry Karanassos Lloyd’s Agency, Dubai ‘ . . . Survey Division of ISS has recently been entrusted with significant inspection assignmentsss ’ 17 ISS REPORTER l Local Expertise: Iraq MARCH 2010 Inchcape-14 supports ABOT INCHCAPE 14 IS an ISS owned supply vessel presently under the operational command of the US Navy. The vessel shuttles daily between Kuwait and Al Basra Oil Terminal (ABOT) in Iraq. The US Navy personnel at ABOT solely depend on INCHCAPE 14 to support their requirements of fresh food and vegetables, personnel, equipment and stores. Logistical support to INCHCAPE 14 is provided by ISS Kuwait and the day-to-day activities associated with this vessel are monitored and coordinated by the ISS Government Services team in Bahrain. Earlier known as Mina Al Bakr Oil Terminal, ABOT is a Deep Sea Island Offshore Terminal located 31 land miles southeast of the Iraqi port of Al Faw in the Shat Al Arab Iraqi territorial waters. Cdr Nevil Malao, ISS Government Services Manager at Bahrain, and Ravi Ramachandran, ISS Liner, Marine & Government Services Manager for Kuwait & Iraq, recently visited ABOT on the INCHCAPE 14 to review the supply chain logistics, streamline certain operational issues and evaluate new business opportunities at ABOT. They had very constructive meetings with the Maritime Expeditionary Security Force in Iraq represented by Commodore James Autrey, Officer in Charge ABOT, and LT CDR Michael Conroy, Logistics Support Officer ABOT. The INCHCAPE 14 crew, ably led by Capt. Hasham Hussain and Capt. Rajendran Vasu, played gracious host. ISS REPORTER l Local Expertise: Kuwait MARCH 2010 The Al Hamra Tower A towering achievement ISS ENGINEERING SERVICES, a division of Kuwait Maritime & Mercantile Company KSC (KMMC) has been working closely with Cantnic of the UK to supply their building components to some of the most prestigious developments in the sovereign Arab State of Kuwait. Amidst tough competition, KMMC and Catnic were selected to supply stainless steel plaster stop beads and angle beads to Kuwait's most celebrated development – the Al Hamra Tower, a super-tall skyscraper in downtown Kuwait City. The tower will become the tallest building in Kuwait on completion this year at 412 m (1.350 ft). It will also be the tallest sculpted tower in the world. The Al Hamra Tower will 18 have over 70 floors of office space, a rooftop restaurant, a spa and an adjoining shopping centre with a 10-screen cinema complex. ISS Engineering Services also worked closely with consultants Al Jazera and the contractor Ahmadiah to secure the business. KMMC along with Catnic has also supplied Rib Lath to over 1,000 houses at Sa'ad Al Abdullah City in Amghara on a development which also includes the construction of 19 schools, 12 community shopping centers and two banks. Rib lath is widely used as a plaster backing on ceilings, walls and stud partitions. In addition, KMMC along with Catnic has supplied Rib Lath to over 200 houses for the Al Sulaibikhat housing project. Visit our website at www.iss-shipping.com Corporate Social Responsibility l ISS REPORTER MARCH 2010 "I can think of no other edifice constructed by man as altruistic as a lighthouse. They were built only to serve." George Bernard Shaw As we have said before, whilst altruism is an unselfish concern for the welfare of others, symbiosis is a relationship of mutual benefit. With CSR these two essentials come together. So here’s a run-down of CSR initiatives that both the company and our staff have been busy with lately. Lending a helping hand Sailors’ Society thanks ISS for continued support International Seafarers’ charity grateful for corporate and individual fundraising International seafarers’ charity the Sailors’ Society has thanked global shipping agent Inchcape Shipping Services (ISS) for their continued support both on a corporate and individual level. ISS has been involved with a number of Sailors’ Society projects and events in recent months including the sponsorship of the running and upkeep of the Southampton minibus for two years. The minibus is seen as a valued resource for visiting seafarers who wish to visit the Seafarers’ Centre in the heart of the city, to contact families, seek practical advice and spiritual support. Director of Fundraising and Marketing Jan Webber said: “We are really grateful to ISS for their support and as a sign of our gratitude the company logo features on the minibus. Inchcape Shipping Services has a strong presence in Southampton and Fawley and I have no doubt that their generosity will benefit some of their own seafarers when they visit the UK.” Inchcape Shipping Services Manager Tormod Ognedal, based in Norway, is also supporting the charity, along with colleagues Isla Sinclair and Ruud Meuldijk, by running the 2010 London Marathon, pledging to raise over £4,000. Tormod, who also ran for the charity last year, said: “It is a privilege to run the marathon for the Sailors’ Society. I am warmed by their efforts to make life more bearable for seafarers, who spend many months away at sea far away from families.” Inchcape Shipping Services was also involved in the Sailors’ Society’s Dragon Boat Challenge and plan to participate in a Three Peaks Challenge in the Summer, again raising vital money that will go towards resources and support for seafarers across the world. Jan Webber added: “Inchcape have really embraced the fundraising projects we strive for. The Sailors’ Society is very lucky and extremely grateful not only for their corporate sponsorship, but also for their willingness, enthusiasm and consistency in their support.” Crew members took advantage of warm transport offered by the Sailors Society recently during almost blizzard like conditions in Southampton. M/T METHANIA under ISS agency from Exmar, Antwerp provides the backdrop to this photo marking the commissioning of the Sailors Society vehicle, partially funded by ISS. L-R: Greg Speed - ISS Southampton, four crewmembers, Mark Hudson - ISS Southampton, Capt Serge Verheyden - Exmar, Kevin Cool - ISS GM UK, Frans Sahetapy - Sailors Society Port Chaplain “ISS Mackay’s Cruise team were approached via Cruise NZ by the Lions of Dunedin to assist chronically ill kids to visit a cruise ship,” reports Richard Carvalho. “A group of about 30 kids and their parents visited the DAWN PRINCESS. Captain Todd McBain and his crew always go out of their way to help and the kids had a great experience. Dunedin Port Manager David Ferguson and Agent David McLean did a great job getting the group organised and security cleared. The Lions received a lot of letters thanking the industry and we were really happy to see these kids, who have had a really rough time, come off with smiles on their faces – the parents as well who live through the hard times with their kids. Princess Cruises/Carnival must be Visit our website at www.iss-shipping.com commended on a lot of Charity work quietly done behind the scenes – mainly for kids. We are proud to assist in any way we can.” Bexleyheath Boys Football Club, sponsored by ISS, “are performing well individually,” reports coach Richard Poole, “but at the start of the season two players moved away from the area, two had to give up playing, one had appendicitis, one a broken foot and one a badly pulled thigh! On a positive we have been joined by three new players but we are finding it challenging balancing the team. Now with injured players returning in the coming weeks we can hope for more favourable results.” Watch this space…. It was a memorable Movember for ISS Australia (male) employees who grew moustaches last November to raise awareness of men’s health issues. Over A$3,200 was raised. www.au.movember.com 19 ISS REPORTER l Corporate Social Responsibility MARCH 2010 Scholarship for Kids project forges ahead The Scholarship for Kids (SfK) project was conceptualized to address the rising cases of children from informal settlements not accessing education due to “barriers to entry”.Some of the barriers to entry included the requirements for uniforms and the level of stigma associated with being in informal settlements. The children that go to the public schools on the outskirts of the informal settlements are often stigmatized and therefore do not maximize their potential. The SfK project therefore had the objectives of enhancing the Kenya Independent Schools Association in its advocacy role for budget private schools and to enhance the KISA scholarship programme. The KISA Scholarship Programme had been piloted to demonstrate how orphans and other vulnerable children can be given places in budget private schools. The SfK project caters for over 1,000 underprivileged children in Kenya and focuses only on children from low budget private schools that are rigorously monitored by the Scholarship Coordinator. SfK was joined by Inchcape Shipping Services in this worthy cause of enabling children from disadvantaged backgrounds access to education. Inchcape Shipping Services, a company with a worldwide coverage, sponsored 40 children from four different schools from Term 3 of 2009. KISA appreciates this support and looks forward to continued collaboration. At the behest of CEO Claus Hyldager to assist the underprivileged from the Kibera slums in Nairobi, and as part of our involvement in the Scholarship for Kids project, Mombasa office interviewed a number of 17-20 year olds and selected two promising candidates, Paul Onyango Oluoch (the short one) and Mathew Muchiri (the tall one) pictured here with their guide and mentor Rose Nduku and at their desks. “So far so good,” reports Rose. “They have settled in well and all the staff in our organization have been friendly and supportive. They both passed their IMA general agency training very well,so they appear to be very dedicated and hard working. We are also throwing them in at the deep end and have had them up at three in the morning to board vessels together with an experienced Boarding Officer. “We also had a meeting with the CEO of the Kenya Independent Schools Association yesterday who works closely with Paul Norman (SfK) on the schooling programme that we support.The latest plan is to see if ISS can arrange a sponsored walk with all staff participating to raise a second fund of US$5,000 through the staff and double the amount of children we can support through basic schooling.” Eddie Filus, the ISS team’s eldest member, came first among the team in the Dubai 10k with an excellent time of 47 minutes. “It was truly so motivating for others,” writes Usha Sethumadhavan. “Many have already vowed to beat him next time. I and Sangeetha, Eddie’s PA, were the only ladies among the 42 participants. Dan Whysall and Zahid attended from the corporate office, Robert Walker from ISS Oman and the rest were from Dubai.” “The race gave the ISS team an opportunity to bring forward the spirit of sportsmanship amongst fellow colleagues,” writes Sangeeta Lewis. “It sure was a lot of fun but challenging for most, all finished the race in fairly good time. After the marathon, ISS had arranged a sumptuous breakfast.” Meanwhile Zahid ran the Mumbai Half Marathon in support of a child welfare charity. The occasion was the only time the Marathon Torch has left Greece, except for the Boston Marathon A fitting symbol for our CSR initiatives The Bell Rock Lighthouse built on the Inchcape Reef and completed in 1811 by famed lighthouse builder Robert Stevenson, was Scotland’s greatest engineering feat at the time. A huge construction challenge and a testament to human ingenuity and endurance, it was reckoned to be one of the seven wonders of the industrial world. Upon its centenary in 1911, our founder, James Lyle Mackay, took his title, the first Earl of Inchcape, from the reef on which the lighthouse stood - the Inchcape Rock, 11 miles off the coast of his home town of Arbroath on the east coast of Scotland. As we approach the bicentennial of this remarkable feat, the lighthouse - now fully automated and being smartened up for the occasion by its owners, the Northern Lighthouse Board - still serves as a welcome beacon to mariners, embodying the same values of service and care that ISS holds close today. The bicentennial will be marked next February as 2011: The Year of the Light. ISS will be there to participate in this important anniversary. A milestone in our remarkable history, the lighthouse, with its altruistic values, is a fitting symbol for our ongoing CSR programme in support of worthwhile causes. 20 Visit our website at www.iss-shipping.com Staff News l ISS REPORTER MARCH 2010 Group Commercial appointments Dan Whysall has been appointed Vice President, Group Business Development. Dan has more than 10 years experience with ISS in general management roles and more recently as a successful member of the GBD team looking after our Offshore product. Captain Gopal Sethi has been appointed Senior General Manager, Group Business Development - Vessel Supply Chain, and will take over commercial responsibility for our Crew Logistics Services (CLS) and Vessel Lay up Services (VLUS) products in addition to the Door to Deck Logistics (DTD) product. Gopal has been with us since 2008 and has a strong track record prior to joining us in Port Agency, Liner and Cargo management positions following an earlier career at sea. Gopal reports to Dan Whysall. Christian Barth has joined us as General Manager, Group Business Development - Liner, based out of Chafford Hundred. Christian has extensive experience within NYK prior to joining ISS. Christian will also report to Dan Whysall. Peter Verner Kristensen has been appointed Vice President, Marketing & New Growth Platforms, a role which also incorporates commercial analysis. Jeremy Brightman has joined us as General Manager, Field Sales for UK. Jeremy’s most recent experience was a senior sales role with Wallenius Wilhelmsen Logistics UK. Jeremy reports to Jan Bak, VP Field Sales. Visit our website at www.iss-shipping.com Raymond Belanger has been appointed Government Services Manager for ISS Qatar. His recent experience has been as a Forward Logistical Services member in support of Canadian Naval operations in numerous overseas locations. Jonathan Mapp has been appointed Manager of ISS Qatar’s newly formed Surveyors and Adjusters Division which has already handled a number of claims including two major casualties on behalf of a leading UK based P&I Club. Jonathan was at sea with SAFMARINE before obtaining a degree in Private Law & History with a postgraduate diploma in Shipping Law. Jonathan is also a member of the Maritime Law Association. Prior to joining ISS Qatar he worked as a Marine Surveyor and P&I Club Correspondent in South Africa and Namibia. Matthew Russell has taken on the additional responsibility of Hub Manager for Maersk and Exmar. Nicky Foster remains as a point of contact for Maersk and Exmar but will step away from the daily operations in order to concentrate further on her new role of Service Centre Manager. Sheila Armstrong has passed a series of exams to gain her Professional Certificate in Marketing from the Chartered Institute of Marketing. North & Central America appointments Helge HestoAndersen has been appointed VP Central America & South Caribbean. Helge will continue the development of new areas in Central America as well as the Southern Caribbean area. He will also be responsible for Puerto Rico and St. Croix. David Ferencsik has been appointed VP South Atlantic & the Bahamas, based in Savannah, GA.. His area of responsibility will be from Morehead City through Port Everglades as well as the Bahamas and the US Offshore division. Elaine Dearmon is now VP US Gulf Coast with responsibility from Corpus Christi in the Southwest through Tampa in the East. Chuck Carmichael is now VP US North Atlantic & Eastern Canada with responsibility from Norfolk through Portland, Maine along with Eastern Canada, and ISS subsidiary, CESI. 21 ISS REPORTER l Notice Board ISS Cambodia organised a family outing to the Kirirom Resort for barbecues, horse riding, rocking climbing and canoeing; then on to the Koh Kong Resort to enjoy a bird show and a crocodile show. Kirirom Resort is in Kompong Speu province two hours drive from Phnom Penh while Koh Kong Resort is close to the Thai border. On the journey they viewed rice fields, forests and, being the rainy season, waterfalls. MARCH 2010 Some of our customers enjoy themselves at a reception hosted by ISS Group Commercial ISS Mombasa staff got together with the Dodwell Container Yard team for a party to celebrate the yard’s first anniversary. The Spirit of Togetherness & One Company, One Team was the theme for ISS’ Christmas party, reports Usha Sethumadhavan. “To add some glamour employees decided to include red as part of the dress code making it a colorful and joyous occasion. The day was rather relaxed as the tempo of business had slowed down giving our colleagues a much-needed break to interact socially and indulge in a bit of gossip about plans for Christmas Day, New Year etc. Our Christian / Catholic colleagues also chipped in with the individual contribution to buy “Christmas Breakfast” for the entire office. It was an enjoyable day.” 22 Visit our website at www.iss-shipping.com MARCH 2010 Notice Board l ISS REPORTER “ISS Valparaiso Staff celebrating holidays of December 2009… there is always a time to share and rest… lucky ones enjoying the summer of the Southern Hemisphere!!!!” On Thursdays the ISS Valparaiso Soccer Team gets together to play a “pichanga” (a soccer game played with friends). Our staff usually plays against suppliers and other local shipping agents. Andrew Boaz, Group Commercial, ISS Houston, hosted a friendly gathering between the Houston Service Centre and Teekay Houston while David Lindsell, Global Service Centres, ISS UK, was in town. The ISS Cochin office inauguration (see P. 6) produced vivid and vibrant colours, and at least one puzzled expression. Usha Sethumadhavan is second from left. Visit our website at www.iss-shipping.com This colorful Hawaiian theme lightened the spirits of the ShipNet Software Solutions team in Chennai. “In spite of the threat of monsoon, writes Sudha Vijayakumar. “The day started off with loads of excitement mounting up the stalls of face painting , hair coloring and palmistry and then by release of balloons by the Director, Mr. Kasi. The families had a wonderful opportunity to get along with each other and interact with other members as well. The thundering drum circle event boosted the energy of employees, spouses and children alike. The distribution of Awards like the Champion of the Quarter and Best Manager were interspersed with cultural and other team activities. We also had a Beautiful Bride ramp walk which created much amusement amongst the audience.” 23 Inchcape Shipping Services A World of Local Expertise Inchcape With some 245 offices in 63 countries, Inchcape Shipping Services provides a global resource delivered locally and tailored to customers’ individual needs across the oil, cruise, container and bulk commodity sectors as well as serving naval, government and NGO clients. Shipping Services Services include port agency, transits, offshore support and landside logistics as well as outsourcing services such as global hub agency and vessel supply chain management; the latter including crew and marine spares logistics and Enterprise Resource Planning (ERP) solutions. We publish a comprehensive range of country brochures detailing the key features and benefits of our services as well as frequently asked questions, trade data and a useful map. The brochures are available on request from: [email protected] Our Value Proposition ISS in Fujairah FAQ Iraq A World of Local Expertise 160ºE 30ºS 170ºE 180º Since entering Iraq as the first international ships agency with a permanent presence in the country, ISS has gained invaluable experience and expertise. This enables us to offer our clients a portfolio of port and marine services to facilitate the development and smooth running of their business interests. Forwarding, haulage, equipment rentals, surveys, stevedoring services, project cargo management, launch operations, samples deliveries, work-camp management and procurement are among the wide range of services offered. As more international companies are looking to expand their activities in Iraq and as well-known restrictions and problems of operating there continue to ease, our experience will be a critical success factor for these new entrants. Our services can be provided either as tailor-made for specific projects, or on an ad hoc basis. 9 ISS provides port agency services across all the ports of Iraq for owners and charterers of all types of vessel: supply boats and inshore vessels, navy ships, bulkers and tankers, and for all types of commodity ranging from grains, cement and containers into Umm Qasr, to fuel imports at Khor Al Zubayr, and crude oil exports at the offshore terminals. ISS is as familiar with the procedures and requirements for Government and NGO clients in Iraq as with commercial cargo and customers. 9 Clearance and transportation of all types of goods from the smallest fuel samples to project heavy-lifts to destinations throughout Iraq - whether by land or air carrier, from the Kuwait free zone hub, or direct from the Iraq gateway ports. 9 ISS staff enjoy close and cooperative relations with the various authorities in Iraq at all levels and work with 9 As a major global agent we offer security and peace of mind to our customers with business in Iraq. We can demonstrate financial robustness and integrity; we work to well defined QMS & HSSE procedures, and we conduct extensive internal and external audits. We also have disaster recovery and business continuity plans in place. 9 ISS Iraq manages a 24/7 service using its in-house, state-of-the art operational and financial management application in place across the ISS network and supporting the processes outlined in our global QMS system. This means our customers can be sure of the same high level of service from ISS both in Iraq and across the world. It also allows us to manage and control the D/A process meaning our principals receive more accurate D/As more quickly. 9 A key measure in ensuring high service levels is through setting and monitoring of KPIs. We benchmark response times to enquiries, estimates, D/A turnaround times, customer praise and complaints, and other information requested by our clients so they can make informed and accurate decisions pertaining to their own operations. Iraq’s Trading Partners EXPORTS Syria 30.5% Italy 16.3% 4.2% 4.4% 6.3% Top Commodities • Crude oil • Petroleum products • Food and live animals 5.2% Turkey South Korea Taiwan 12.6% 9.5% IMPORTS US 36.8% US 28.8% 19.8% Spain 11.1% Canada Netherlands Others Jordan China 4.7% France North Cape T a s m a n S e a Top Commodities • Food • Medicines • Manufactures 5% 4.8% The port operational process in Iraq is supported by POPDA – the ISS global port operations and finance application. With POPDA we ensure accurate and timely reporting and issuance of disbursements. ISS is able to reduce the delays in finalizing port disbursement accounts by working closely with the relevant authorities. WHANGAREI AUCKLAND Bay of TAURANGA Plenty NE W Hamilton New Plymouth ZEA LA ND Wanganui 2797 40ºS NELSON 9 Can crew changes be carried out in Iraq? Can visas be obtained? Westport Crew changes can be effected at most Iraq ports and visas are readily obtainable for most nationalities. However, insurance issues mean most crew changes are still effected elsewhere. South Island 9 Does ISS Iraq hold any internationally recognized quality accreditation? ISS holds ISO 9001 2000 accreditation and is part of the ISS global Quality Management System undergoing regular quality audits to ensure highest standards. All ISS Iraq business processes are established and performed in accordance with global ISS HSSE procedures and standards. Milford Sound 9 Will coalition naval operations delay my ship or entail boarding and inspections? The security concerns of the Coalition naval forces in the northern Gulf have eased such that they no longer consider it necessary to board and inspect every vessel which enters Iraq waters. With the establishment of contingents tasked with liaising between the merchant and naval maritime communities, they recognize and actively support the need to foster and simplify Iraq’s international trade and commerce. While they still reserve the right to inspect vessels in Iraq waters, a report by ISS to the navies’ liaison offices concerning a vessel’s Iraq call-plan will normally suffice. This reporting process also allows the coalition naval command to keep a watching brief over merchant vessels until they complete their calls and depart from Iraq waters. 9 How does ISS cope with security issues in Iraq? While the ports in Iraq have been safe for several years, there are still areas of the Iraq hinterland where security remains a real and high-profile concern. ISS recognizes this and takes very seriously its responsibilities for its clients and their interests and also for its own staff and operations. To this end, the ISS team in Iraq includes several staff who served with western military forces and whose security and safety expertise is key in the provision of appropriate precautionary procedures for ISS Iraq’s operations, and for those of its clients. Such security issues are nowadays most relevant for goods and personnel in transit within Iraq outside the port facilities and here ISS has well-established relationships with a number of specialist providers of security services through whom such services can be arranged for ISS Iraq’s clients. . 9 Are communications with Iraq a problem? The process of restoring the public communications infrastructure after years of neglect and damage is not yet complete and on occasion the needs of military security operations can disrupt the public communications system and can also prevent travel by staff from inland offices to attend operations and calls in the ports. However, ISS Iraq staff based full-time at their secure offices and accommodation within Umm Qasr, are online and in touch 24/7 at [email protected] Others Whilst every effort has been made to ensure the accuracy of the information contained herein, Inchcape Shipping Services accepts no liability nor makes any representations or warranties of any kind, express or implied, as to its completeness, accuracy, reliability or suitability. V1.1 www.iss-shipping.com Kermadec Is. (N.Z.) L’Esperance Rock Curtis I. C. Providence Stewart I. Aoraki (Mt. Cook) 3754 rn the Sou Al it Stra ok Co 9 The only international ships agency with expatriate staff resident in Iraq, and the only one with a presence within the country’s major import gateway port, Umm Qasr. This means we can address issues quickly and communicate in real time on the progress of the port call. preferred and vetted service providers. We actively manage our relationships with third parties to ensure that our customers benefit fully. 9 The ISS team in Iraq work closely with their colleagues providing support and assistance from other regional offices and when required, call in expertise from the ISS Global Network. This means any customer issue new to ISS Iraq management can be handled under the guidance of an experienced hand from elsewhere in the Group. 30ºS Lord Howe I. (Aust.) There have been no incidents compromising the security of international vessels calling at Iraq ports, or their crews, for several years. The ISS team on the ground keeps close contact with the ships they handle, providing advice and guidance, and with the coalition and Iraqi civilian and military services operating in the northern Gulf, to ensure the most up-to-date information is at hand. 9 Are disbursement accounts handled effectively? Key Features and Benefits 9 Senior expatriates based full-time in Iraq and with long term experience of living and working there, together with Iraqi nationals who bring a lifetime of seagoing and shore-based maritime experience and insight, to create an unrivalled team. In a difficult to operate location, the ability to navigate the local way of working yet maintain international standards, has time and again enabled us to reduce incidents, turn around vessels faster and minimize the costs for our customers. 9 Will my ship be safe? Palmerston North 40ºS WELLINGTON CHRISTCHURCH ps Chatham Is. (N.Z.) Timaru DUNEDIN Bounty Is. (N.Z.) Invercargill Antipodes Is. (N.Z.) 50ºS 160ºE East Cape North Island Gisborne NAPIER Auckland Is. (N.Z.) ISS offices 170ºE www.iss-shipping.com Auckland The Shipping Exchange, 2 Akaroa Street, Parnell, Auckland 1052 Postal Address: PO Box 1372, Auckland 1140 Phone: +64 9 3094266 Fax: Email: auckland@iss-mckay.+64 9 3092930 co.nz Christchurch Level 1, Maritime House, 25 Oxford Street, Lyttelton Postal Address: PO Box 8082 222, Lyttelton 8841 Phone: +64 3 3287734 Fax: Email: christchurch@iss-mc+64 3 3287738 kay.co.nz Dunedin (Port Chalmers) 1st Flr, Trevian House, 60-66 Tennyson St, Dunedin 9016 Postal Address: PO Box 706, Dunedin 9054 Phone: +64 3 4771201 Fax: Email: dunedin@iss-mckay. +64 3 4771226 co.nz 50ºS © Oxford Cartographers 96967 E&OE/jp Mount Maunganui/PASS (Tauranga) ISS-McKay Ltd, Suite 10, Nikau Nikau Crescent, Mt Maunganu House, i 3116 Postal Address: PO Box 4095, Mt Maunganui 3149 Phone: +64 7 5742154 Fax: Email: tauranga@iss-mckay.+64 7 5757101 co.nz Napier ISS-McKay Ltd, 1st Flr, NZWTA Building, cnr Lever & Bridge Streets, Napier 4110 Postal Address: PO Box 56, Napier 4140 Phone: +64 6 8352155 Fax: Email: [email protected]+64 6 8344511 Nelson ISS-McKay Ltd, Cnr Wildman Avenue & Hay Street, Nelson 7010 Postal Address: PO Box 1537, Nelson 7010 Phone: +64 3 5467121 Fax: Email: [email protected]+64 3 5468121 .nz 180º Wellington ISS-McKay Ltd, Level 7, Fulbright House 120 Featherston Street, Wellington 6011 Postal Address: PO Box 921, Wellington 6140 Phone: +64 4 4983750 Fax: Email: wellington@iss-mcka+64 4 4995250 y.co.nz Whangarei (Marsden Point) ISS-McKay Ltd, Unit B2, North Port Building, Ralph Trimmer Dr, Marsden Point, PO Box 48, Whangare i 0151 Postal Address: PO Box 48, Ruakaka, Whangarei 0140 Phone: +64 9 4328050 Fax: Email: whangarei@iss-mcka+64 9 4328190 y.co.nz
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