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SUSTAINABILITY ACTION PLAN 2013 - Maersk Tankers

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<strong>SUSTAINABILITY</strong><br />

<strong>ACTION</strong> <strong>PLAN</strong><br />

<strong>2013</strong>


January <strong>2013</strong><br />

Content<br />

Endorsement 4<br />

Technical Operations: Vision and mission 5<br />

<strong>Maersk</strong> <strong>Tankers</strong> A/S and Broström Sustainability Policy<br />

Sustainability compass 8<br />

Roadmap <strong>2013</strong>: Sustainability Strategy Update 6<br />

At <strong>Maersk</strong> <strong>Tankers</strong> and Broström we recognize that a<br />

sustainable future is integral to the way we conduct<br />

our business. We place a high priority on the health,<br />

safety and security of our employees and assets as<br />

well as on the wellbeing of all those contributing to<br />

or affected by our operations. We are committed to<br />

the protection and conservation of the environment<br />

and we aim to integrate sustainable thinking and<br />

corporate social responsibility into all our business<br />

processes and business relationships. Employee skills<br />

and competencies are developed by continually raising<br />

awareness and impartment of training.<br />

We promote the health, safety and security of all our<br />

employees through managing risks and changes with<br />

prudence and promoting a strong safety culture. It is the<br />

objective of <strong>Maersk</strong> <strong>Tankers</strong> and Broström to provide<br />

a safe workplace with zero work-related injuries. We<br />

promote good occupational health and a healthy<br />

lifestyle for all our employees.<br />

development by means of management commitment<br />

and motivating our employees. We aim to continuously<br />

reduce emissions, optimise our operations, have zero<br />

spills, zero incidents, avoid harm to the environment, and<br />

to find innovative and timely solutions for improvement.<br />

We recognize that our operations are far reaching and<br />

have a global influence. With this in mind, we work<br />

diligently with our employees, local communities and<br />

internationally recognized bodies to ensure that social<br />

factors are integral to our business principles.<br />

We assure consistent and best-in-class quality in our<br />

services to external and internal customers through<br />

efficient yet safe operations and the continuous<br />

monitoring of our performance. We promote continual<br />

improvement as a principal driver by knowledge-sharing<br />

practices and the timely review of our management<br />

systems while always meeting or exceeding all applicable<br />

legislative and regulatory requirements.<br />

Health, Safety, Security, Quality and Vetting 10<br />

Fuel optimisation: Working with innovation 14<br />

Environment and CSR 16<br />

Crewing 20<br />

Technical Operation 22<br />

Group core values 24<br />

It is our policy that no employee, contractor or visitor<br />

shall be under the influence of alcohol or drugs while<br />

onboard our vessels.<br />

We continue to maintain our strong focus on the<br />

protection of the environment and sustainable<br />

This Policy statement is in support of the <strong>Maersk</strong><br />

Principles of Conduct. The <strong>Maersk</strong> <strong>Tankers</strong> and Broström<br />

Sustainability Action Plan supports the ambitions of<br />

this policy.<br />

Tommy Thomassen<br />

VP, Head Of Technical Operations.<br />

<strong>Maersk</strong> <strong>Tankers</strong><br />

Hanne B. Sørensen<br />

Chief Executive Officer<br />

<strong>Maersk</strong> <strong>Tankers</strong> A/S


Page 4<br />

Page 5<br />

Endorsement<br />

At <strong>Maersk</strong> <strong>Tankers</strong> we recognize that a sustainable<br />

future is integral to the way we conduct our business.<br />

With this in mind, we work diligently with our<br />

employees, local communities and internationally<br />

recognized bodies to ensure that environmental and<br />

social factors are integral to our business principles.<br />

During the last years, <strong>Maersk</strong> <strong>Tankers</strong> has worked<br />

continuously in improving our sustainability performance<br />

and reaching targets. Up to now, 80 percent<br />

of our focus has been on risk, making sure that we<br />

are always fully covered, and only 20 percent focus<br />

on the actual opportunities lying within. Today we<br />

can conclude that our efforts shows good results,<br />

having programs in place, leadership within the<br />

tanker industry established and cost savings on<br />

resilience and risk managed – in other words, MT are<br />

ready to take the next step and increase opportunity<br />

focus, starting by engaging external partners and<br />

customers.<br />

The time to position ourselves is now, if we want<br />

to be a competitive company in the future. <strong>Maersk</strong><br />

<strong>Tankers</strong> need to ensure that our performance<br />

results and focus on sustainability is presented<br />

to customers. This focus on sustainability is not a<br />

waste of time, but rather a matter of timing.<br />

For most companies, sustainability is still a nascent<br />

discipline. However, it is a fact that a sustainable<br />

“change-of-attitude” has evolved significantly over<br />

the past decade, and the interest is becoming<br />

more and more inevitable; an increasing number of<br />

our customers are now implementing responsible<br />

procurement programs of their own and increasingly<br />

turn to suppliers with high sustainability ratings and<br />

standard.<br />

As we have our own house in order, MT can now move<br />

towards engaging customers on this issue and align<br />

ourselves with their ambitions and strategies. Activities<br />

involves among other things establishment of<br />

partnerships with e.g. NGO’s, local government units<br />

and piers, to set minimum levels of requirements<br />

as well as discuss and agree with customers on a<br />

definition of responsible tanker business.<br />

By asking customers how they are going to manage<br />

their sustainability strategy when it comes to<br />

choosing suppliers, we can learn how to hook them<br />

on <strong>Maersk</strong> <strong>Tankers</strong> initiatives and projects and get<br />

an early advantage compared to our competitors.<br />

It can be difficult to determine the exact value<br />

from engaging sustainability, although we do see<br />

commercial benefits from addressing strategic<br />

planning and programs for risk and resilience; cost<br />

savings from e.g. implementation of new efficient<br />

technologies reducing fuel consumption, or less<br />

lost-time accidents increase our on-board productivity.<br />

We feel confident that by leading the way, <strong>Maersk</strong><br />

<strong>Tankers</strong> will not only be able to help lift the bar in the<br />

industry but actually also create future standards,<br />

giving our organization a strong competitive edge<br />

and commercial advantage at an early stage.<br />

Best regards<br />

Tommy Thomassen<br />

VP, Head Of Technical Operations.<br />

<strong>Maersk</strong> <strong>Tankers</strong> A/S


Page 6<br />

Page 7<br />

"Our vision is to be best in class and be<br />

the recognised industry leader by our<br />

customers, providing second-to-none<br />

safe, sustainable and cost-efficient cargo<br />

transport solutions through innovative<br />

design and engaged employees"<br />

Technical Operations: Vision and mission<br />

Technical Operation<br />

Maintain a high communication level<br />

of all information required for safe<br />

and efficient operations to management<br />

team<br />

To ensure optimal vessel management<br />

and operational efficiency<br />

Align operational management with<br />

business goals and strategy<br />

<strong>Maersk</strong> <strong>Tankers</strong> Technical Operations consists<br />

of the Technical Fleet Groups focusing on daily<br />

technical operations of the fleet, Marine Standards,<br />

which provides support on matters related to HSEQ,<br />

vetting and Sustainability, and a Crewing function<br />

which manages our daily crewing activities.<br />

We will deliver best-in-class technical management<br />

by meeting or exceeding customer and industry<br />

requirements. Our fleet will be operated cost-effectively<br />

with a focus on reducing our environmental<br />

footprint and ensuring the health and safety of our<br />

employees.<br />

Crewing<br />

To maintain competitive advantage<br />

in the marketplace by creating a<br />

more customer-focused organization<br />

and finding new ways of<br />

lowering costs.<br />

To gain access to the most<br />

attractive customers and cargoes by<br />

ensuring to offer top-quality services.<br />

CRW<br />

TO<br />

ENV &<br />

CSR<br />

HSSQ<br />

& VET<br />

Health, Safety,<br />

Security, Quality<br />

and Vetting<br />

Promoting the health of our<br />

employees through suitable working<br />

conditions and healthy lifestyle<br />

options.<br />

Ensuring a safe and controlled<br />

working environment for our<br />

employees and those associated<br />

with our business.<br />

Maintaining the security and safety<br />

of<br />

our employees, their personal<br />

property and our assets at all times.<br />

Improving process effectiveness.<br />

Environment<br />

and CSR<br />

Fully integrating Sustainability into<br />

the <strong>Maersk</strong> <strong>Tankers</strong> organization.<br />

Being the sustainable leaders in<br />

our industry and standardising the<br />

quality of our pools.<br />

Collaborating with strategic partners<br />

to raise the bar in our industry.


Page 8<br />

Page 9<br />

Industry Profile: Illustration of the tanker shipping market and the factors that drive demand and supply.<br />

Factors that affect the transport market<br />

Factors driving demand<br />

Macroeconomic and political factors<br />

• Economi growth • Industrial production<br />

• Trade patterns • Energy & environmental policies<br />

• Trade policy issues• War & conflicts<br />

Factors driving supply<br />

Newbuildings<br />

Shipyard capacity • Labour costs<br />

• Prices of input goods • Vessel prices<br />

• Interest rates • Access to capital<br />

Energy market<br />

Oil • Coal • Natural gas • Nuclear power<br />

• Hydroelectric power<br />

Transport capacity<br />

Size of global fleet • Newbuilding rate<br />

Scrapping rate • Age structure<br />

• Environmental and safety issues<br />

Roadmap <strong>2013</strong><br />

Sustainability Strategy Update<br />

<strong>Maersk</strong> <strong>Tankers</strong> Technical Operation strives<br />

for continuous development of the business´<br />

sustaina¬bility strategy and it is our belief that this<br />

work needs to be championed from all parts of the<br />

organization, including top- management commitment:<br />

Social and environmental decisions need<br />

to be integrated in every business aspect,<br />

both technically, commercially and operationally,<br />

and the communication of our sustainability<br />

strategy needs to be strong and consistent. This will<br />

eventually be the key in evaluating the success of<br />

integration as well as identifying the areas that still<br />

need improvements.<br />

Living our own Group Core Values, we are working<br />

on leading the industry´s way towards greater and<br />

sustainable performance, first and foremost by<br />

ensuring good and responsible business practices<br />

throughout our value chain.<br />

Oil market<br />

Refinery utilisation • Refinery locations • Regional<br />

imbalances • Stock levels • Spot and forward prices<br />

• Industry structure<br />

CARBON PACT, 3D<br />

In April 2012, <strong>Maersk</strong> <strong>Tankers</strong> became the<br />

first tanker company to sign a Carbon Pact<br />

agreement with a major oil company – our<br />

customer Statoil. The pact calls for a 10%<br />

relative reduction of the footprint of Statoil’s<br />

voyages over a three year period (2012-<br />

2014). As part of the pact we will engage<br />

with Statoil in technical, operational and<br />

commercial workshops to optimise the<br />

shared benefits of the pact.<br />

The tanker shipping market<br />

BENKERT ENVIRONMENTAL<br />

AWARD WINNING<br />

US Coast Guard’s Admiral William M.<br />

Benkert Environmental Protection<br />

Award, Florida USA, May 2012:<br />

<strong>Maersk</strong> <strong>Tankers</strong> wins a silver award<br />

in this prestigious competition<br />

based on “outstanding efforts to<br />

protect the marine environment”<br />

in the category “ Foreign Vessel<br />

Operations, Large Business”.<br />

Shipowners and logistics operators<br />

Service offer • Contract forms<br />

• Geographic concentration • Ownership<br />

MACN WORKGROUP<br />

DESCRIPTION<br />

As co-founder and active<br />

participant in the Maritime<br />

Anti-Corruption Network (MACN),<br />

<strong>Maersk</strong> <strong>Tankers</strong> are taking the<br />

lead on developing information,<br />

training material and courses<br />

for ship owners and seafarers,<br />

focusing on bribery, facilitation<br />

payments and agents.<br />

First HSE report<br />

Membership of<br />

Global Compact<br />

signed<br />

Anti Corruption<br />

Programme<br />

launched<br />

Member<br />

of WEF<br />

Global Labour<br />

Principles<br />

launched<br />

Member of<br />

the Logistics<br />

Emergency Teams<br />

(LET)<br />

Responsible<br />

Procurement Member of UN<br />

Programme Global Compact<br />

launched<br />

LEAD<br />

Climate Change<br />

Strategy approved<br />

BP<br />

Award x2<br />

2012 Carbon<br />

Pact with Statoil<br />

USCG, Benkert<br />

Environmental<br />

Award<br />

Member<br />

of WOC<br />

(World Ocean<br />

Council)<br />

Member<br />

of MACN<br />

(Maritime Anti<br />

Corruption Network)<br />

Combpack Risk<br />

Assortment in CSR<br />

(Corporate Social<br />

Responsibility)<br />

2008<br />

2009<br />

2010 2011<br />

2012<br />

<strong>2013</strong><br />

Environmental<br />

Strategy<br />

Sustainability<br />

Action Plan<br />

published<br />

Materiality issue<br />

and stakeholder<br />

identification<br />

First Annual<br />

Group Sustainability<br />

Conference<br />

Whistleblower<br />

Programme<br />

launched<br />

Mærsk Sustainability<br />

Reporting<br />

Guidelines<br />

First Annual<br />

Executive Sustainability<br />

Day - focus<br />

on Safety<br />

Group Health and<br />

Safety Strategy<br />

approved<br />

3D Thinking introduced - Carbon Pact<br />

concept published as story example in<br />

Group Sustainability Report 2012<br />

New CO 2<br />

target set:<br />

20% reduction<br />

by 2020<br />

(2010 baseline)<br />

Follow up on<br />

materiality<br />

assessment<br />

10.9% CO 2<br />

reduction<br />

(2010 baseline)<br />

Development of<br />

new Environment &<br />

CSR strategy


Page 10<br />

Page 11<br />

Sustainability<br />

compass<br />

TECHNICAL OPERATION<br />

Performance<br />

2011<br />

Performance<br />

2012<br />

CAPs 0,85% 4,33% 0,85%<br />

Rejections per vessel per year 0,70 0,48 0,70<br />

Main Engine SFOC 103,24 103,52 106<br />

ME Cylinder Oil Consumption 2,08 1,9 3,00<br />

Target <strong>2013</strong><br />

New York<br />

Copenhagen<br />

Paris<br />

Mumbai<br />

Seoul<br />

Shanghai<br />

Tokyo<br />

Our Sustainability Performance is being monitored<br />

through the Marine Standards Balanced Scorecard and<br />

KPI (Key performance indicator) system.<br />

The Sustainability Compass is the visual appearance<br />

of the balanced scorecard which reflects <strong>Maersk</strong> <strong>Tankers</strong>’<br />

performance throughout the year and highlights our areas of<br />

improvement and risk when it comes to sustainability issues.<br />

Technical Off-service 0,99% 0,44% 0,55<br />

Rio<br />

Singapore<br />

TO<br />

CREWING<br />

Performance<br />

2011<br />

Performance<br />

2012<br />

Performance related terminations - - 0,008<br />

Sea Staff attrition rate 7,50 0,065 0,075<br />

Target <strong>2013</strong><br />

CRW<br />

HSSQ<br />

& VET<br />

HEALTH, SAFETY, SECURITY,<br />

QUALITY AND VETTING<br />

Performance<br />

2011<br />

Performance<br />

2012<br />

LTI Frequency 1,12 0,97 0,8<br />

TRC Frequency 3,37 2,56 2,5<br />

Target <strong>2013</strong><br />

Back to Back crewing for officers<br />

( Same ship)<br />

0,60 0,64 0,7<br />

On Time Relief 0,90 0,97 0,95<br />

Matrix Compliance - 0,98 0,96<br />

Document compliance<br />

(Red Flag error report)<br />

0,75 0,96 0,95<br />

ENV &<br />

CSR<br />

Security Observation & Non -conformities - - 2<br />

PSC Deficiencies per inspection 0,8 1,1 0,5<br />

No. of ISM deficiencies - 3,40 0,5<br />

SIRE observations per inspection - - 5,5<br />

PSC inspections with NIL deficiencies - - 70%<br />

*The target is based on Technical Vessel Index and relative to 2007<br />

baseline<br />

**Internal Inspection Frequency” should be 2 inspections per year at<br />

intervals not exceeding 6 months<br />

ENVIRONMENT AND CSR<br />

Performance<br />

2011<br />

Performance<br />

2012<br />

Oil Spill Frequency 0,002 0,016 0,005<br />

Relative CO2 emissions* 4,38 0,045 -0,08<br />

% Garbage Landed at Green Ports 8,15% 27,3% 30%<br />

Average waste generated per vessel<br />

per day<br />

0,211 0,180 0,172<br />

No. of Supplier CSR audits - 3,00 5,00<br />

Target <strong>2013</strong><br />

"What you don’t measure<br />

you cannot manage."


Page 12<br />

Page 13<br />

Health, Safety,<br />

Security,<br />

Quality and<br />

Vetting<br />

CRW<br />

TO<br />

ENV &<br />

CSR<br />

HSSQ<br />

& VET<br />

Where we’re aiming in <strong>2013</strong><br />

In <strong>2013</strong>, we shall concentrate on following initiatives:<br />

• Continue development of ‘<strong>Maersk</strong> <strong>Tankers</strong>’<br />

standards incorporating our values, best industry<br />

practices, learning from audits & inspection and<br />

our experience in the past.<br />

• Detailed analysis of our Ship Inspection Report<br />

Program (SIRE), Tanker Management and Self<br />

Assessment (TMSA), Incident and accident data<br />

to spot trends and formulate action plan for<br />

continuous improvement.<br />

• Education of our sea and shore based colleagues<br />

in carrying out detailed risk analysis for routine/<br />

non-routine activities shall go long way in having<br />

resilient operations.<br />

Two editions of Safety Awareness Week<br />

(SAW) were launched this year with slight<br />

amendment to the format basis the<br />

feedback received from the vessels. This<br />

continues to be a success story with<br />

accidents showing sharp dip in the<br />

immediately following weeks.<br />

• Continuous improvement of our processes and<br />

development of employees to lay strong foundations<br />

for building resilience into our operations.<br />

Onus is onto us to eliminate avoidable expenditure<br />

and avoid rejections which cause financial and<br />

reputational grief to the company.<br />

Key Actions and Success in 2012<br />

• Safety performance is headed in the right direction<br />

with LTIF and TRCF showing the lowest ever<br />

figures for us. With an industry average of an LTIF<br />

of 1.2, we are well below this figure and close to<br />

our targets.<br />

• 8 of our vessels getting NIL observation during<br />

SIRE inspection. This gives us the assurance that<br />

we have both men and machines within our fold to<br />

deliver absolute perfect results.<br />

• SIRE Helpline continues to lead our actions for<br />

lowering the frequency of repeat SIRE observations.<br />

• Vetting bonus incentive scheme (VBIS) launched<br />

to reward good performance during SIRE inspections.<br />

• A revamped version of Vessel concise guide to<br />

SIRE inspections launched to provide unified<br />

reference document for structured preparation for<br />

SIRE inspections.<br />

• <strong>Maersk</strong> <strong>Tankers</strong> continued to contribute towards<br />

Best Management Practices for protection against<br />

Somalia based piracy (BMP) publication.


Page 14<br />

Page 15<br />

Health, Safety and Quality Projects <strong>2013</strong> Vetting and Marine Operation Projects <strong>2013</strong><br />

Title Description Actions<br />

Superintendent’s vessel visit Package<br />

Unified Checklist for audits<br />

Risk Assessment Library<br />

Root cause analysis tool<br />

Safety Campaigns<br />

MLC<br />

Oil Spill Campaign<br />

* CR: Change request<br />

#<br />

VIMS: Vetting Inspection Management System)<br />

Superintendent to be actively involved in<br />

imparting training to ship staff during the<br />

visit to raise awareness and impart necessary<br />

practical education in a shipboard<br />

environment.<br />

Unified checklist to be develop to cover all<br />

aspects of MIRE, ISM, ISPS, ISO and MLC to<br />

avoid duplication<br />

A generic risk assessment library to be<br />

created from shore side for reference by<br />

the vessels for undertaking routine tasks.<br />

Root cause analysis tool to be improved<br />

to capture various issues that are raised<br />

from a drill down approach.<br />

Safety Campaigns to be run as part of<br />

the Safety Awareness week to increase<br />

awareness and engage the seafarers.<br />

MLC shall come in force in Aug <strong>2013</strong>. Vessel<br />

audits need to be performed for verifying<br />

compliance<br />

An oil spill campaign to be run to reduce<br />

the number of contained oil spill<br />

incidents.<br />

Training department to prepare catalogue<br />

of training to be imparted during vessel<br />

visit. Where required Superintendent to<br />

be trained in the subject.<br />

CR* has been created for VIMS # software<br />

update to allow tagging of questions to generate<br />

different checklists from same source<br />

questionnaire<br />

Generic risk assessment library to be<br />

created from shore side and rolled to the<br />

vessels. Vessels to make it ship specific<br />

Root cause analysis tool to be re-developed<br />

within ShipNet and released for use<br />

by end 2012 for more detailed trending.<br />

Campaigns on matters such as Working<br />

at Height, safe manual handling to be run<br />

during the course of Safety Awareness<br />

week run every quarter.<br />

Superintendents to be trained in MLC<br />

audits. Checklist to be incorporated in<br />

ShipNet for performing audits.<br />

Run an oil spill campaign to raise awareness<br />

and preventive measures for oil<br />

spills.<br />

Title Description Actions<br />

Customer like analysis of data and<br />

trends from SIRE & PSC* inspections,<br />

TMSA reviews and Incidents.<br />

Best Practice Sharing<br />

VIMS & ShipNet<br />

VCR<br />

Customer visits and visibility<br />

* PSC: Port State Control<br />

To carry out exhaustive trending of data, as<br />

done by our customers to get an outside-in<br />

view of our performance<br />

To share best practices observed during<br />

internal audits<br />

The switch between VIMS and ShipNet to<br />

be turned on to have one mean of follow<br />

up.<br />

Vessel conditions report (VCR) module<br />

in ShipNet for ‘at a glance’ view of vessel<br />

hull condition<br />

Increase visibility as a quality operator<br />

and seek feedback for improvement of<br />

the system.<br />

Templates to be created and handed over<br />

to GSC to carry out detailed analysis. Action<br />

plan on the analysis to be developed<br />

by Marine Standards.<br />

To generate visual templates for various<br />

locations on board and share best practices<br />

coming from industry and internal audits.<br />

Each observation to be raised during audits/inspections<br />

to be followed up either<br />

in ShipNet or VIMS to avoid duplication<br />

of efforts.<br />

VCR module to be rolled out in ShipNet<br />

as means of monitoring of ship’s hull and<br />

deck condition on monthly basis.<br />

Once in a year visit to major customers’<br />

vetting department to be made by Marine<br />

Standards. Participate in joint sales meetings,<br />

workshops, conferences arranged by<br />

<strong>Maersk</strong> <strong>Tankers</strong> or customers.<br />

Security Projects <strong>2013</strong><br />

Title Description Actions<br />

CSO** Drill Module<br />

ISPS ## Audits<br />

CSO drill module for all vessels to be completed,<br />

where vessels can select scenario<br />

and initiate drill without CSO intervention<br />

ISPS internal and external audits to be<br />

closely monitored<br />

Procedure to be created in ShipNet.<br />

Internal audits - 2 or less observations per<br />

inspections. External Audit – NIL observation<br />

** CSO: Company Security officer om<br />

##<br />

ISPS: International Ship and Port Facility Security


Page 16<br />

Savings in Total, Year-to-date October,<br />

Environmental Baseline 2010-2012<br />

Total Fuel Oil Savings<br />

= 71.000 MT HFO<br />

Total Emission Savings = 224.000 MT CO 2<br />

Page 17<br />

Hull Cleaning Reduce the excess consumption due to hull fouling<br />

by a combination of scheduled visual inspections<br />

3600 mt FO<br />

and structured monitoring the vessels speed<br />

11200 mt CO 2<br />

performance and taking action when required.<br />

Propeller Polish Reduce the excess consumption due to Propeller<br />

fouling by a combination of scheduled cleaning<br />

2200 mt FO<br />

VLCC SSS<br />

intervals, visual inspections and a structured<br />

7000 mt CO 2<br />

monitoring the vessels speed performance.<br />

21300 mt FO<br />

66900 mt CO 2<br />

Continuous Super Slow<br />

Steaming around 10% MCR<br />

(Max Continuous Rating)<br />

primarily in Ballast.<br />

Base Load<br />

reduction<br />

15000 mt FO<br />

46900 mt C0 2<br />

Reduction of the normal power demand of running<br />

the vessel by monitoring the and daily comparing<br />

the base load to a temperature dependent model<br />

value.<br />

Fuel optimisation<br />

Working with<br />

innovation<br />

Innovation is a fundamental part of modern<br />

business. If you don’t innovate, you stand<br />

still. In today’s world, standing still means<br />

going backwards as others keep moving<br />

ahead.<br />

At <strong>Maersk</strong> <strong>Tankers</strong>, we are working together with the<br />

innovation department consisting of a team of<br />

Marine Engineers, Naval Architects, who work on<br />

“outside the box” ideas and projects of varied nature.<br />

A strong focus is energy efficiency, which goes hand<br />

in hand with improved environmental performance.<br />

"The chart shows the total savings on carbon<br />

emissions (CO 2<br />

) and Fuel Oil (FO) for some of the<br />

major 2012 projects."<br />

Non VLCC SSS<br />

6500 mt FO<br />

20600 mt CO 2<br />

Primarily Non Continuous<br />

Super Slow Steaming around<br />

10% MCR (Max Continuous<br />

Rating) primarily in Ballast,<br />

where vessels with Mechanical<br />

Engines perform SSS when<br />

possible using a 20hr/4hr split<br />

between SSS and ECO speed.<br />

Projects and<br />

savings YTD<br />

October 2012<br />

Propeller Boss<br />

Cap Fin<br />

270 mt FO<br />

840 mt C0 2<br />

CLO Cons<br />

800 mt<br />

Others<br />

2400 mt FO<br />

7500 mt C0 2<br />

Speed<br />

instructions<br />

20000 mt FO<br />

63000 mt CO 2<br />

Installation of PBCF’s on existing vessels to reduce<br />

the Main Propellers losses due to the Vortex<br />

effects. 5 vessels are presently fitted with PBCF<br />

and we expect more to be installed.<br />

Reduction of CLO consumption, by closely monitoring<br />

the specific CLO consumptions and comparing<br />

to model values. Advising Fleet groups and vessels<br />

on correct adjustments when necessary.<br />

• Reduction of Fuel consumption on Boilers at sea.<br />

• Improvements on the ME and AE SFOC (Specific<br />

Fuel Oil Consumption)<br />

• Reduction of Inert gas consumption in Port.<br />

• Reduction of Boiler fuel consumption on voyages<br />

with heated cargo.<br />

Reduction of speed by improving speed instructions,<br />

better voyage planning, Optimizing Slow<br />

speed performance (40 – 60 % MCR), Challenging<br />

Normal CP speeds.


Page 18<br />

Page 19<br />

Environment<br />

and CSR<br />

CRW<br />

TO<br />

ENV &<br />

CSR<br />

HSSQ<br />

& VET<br />

Where we are aiming in <strong>2013</strong><br />

It is recognized that a strategic approach to Environment<br />

and CSR, with a long-term perspective, can<br />

have a positive effect on our bottom-line, help<br />

us maintain our good image and strong customer<br />

base which should increase our top line. In working<br />

more strategically and formalized with CSR, we can<br />

get a competitive edge in attracting new<br />

business opportunities.<br />

• Raise internal Environment and Climate Change<br />

(E&CC) awareness through communicating initiatives<br />

and performance, awareness & specific<br />

training programmes.<br />

A Ship Energy Efficiency Management<br />

Plan (SEEMP) has been developed for all<br />

<strong>Maersk</strong> <strong>Tankers</strong>’ vessels to be in compliance<br />

with IMO requirements.<br />

Each SEEMP is unique and specific<br />

for each vessel. The plan contains all<br />

measures taken to improve energy performance<br />

of the vessel. The plans has been<br />

incorporated into VPMS which is already<br />

used to monitor and improve the energy<br />

performance of the fleet.<br />

Key Actions and Success in 2012<br />

• Total CO 2<br />

reduction of 10.9% from a 2010 baseline<br />

based on optimisation projects.<br />

• KPI’s defined and integrated for commercial and<br />

operational desks to measure CO 2<br />

efficiency;<br />

Energy Efficiency Operational Index<br />

• Introduced new KPI (EEOI) and reporting format<br />

for the Handytankers pool partners.<br />

• Submitted the first Carbon Pact Performance<br />

Report for signed-up customer Statoil.<br />

• ELearning course on Environmental Management<br />

and Compliance has been rolled out.<br />

• Developed tariff cards for the NEU region as a<br />

measure to reduce the cost of landing waste.<br />

• Rolled out the Responsible Procurement Program<br />

to selected vendors and business partners.<br />

• A structured report on facilitation payment is in<br />

place to further strengthen our commitment in<br />

tackling bribery issues.<br />

EEOI: Energy Efficiency Operational Index<br />

EEOI = g CO2 / tonnes cargo* km<br />

• Energy Efficiency of our assets to reduce environmental<br />

impacts through improvements on<br />

vessels to meet our Climate Change (CC) target.<br />

• Measures to prevent spills and increase Marpol<br />

Awareness<br />

• Reducing Environmental Impacts through<br />

improved chemical/waste management<br />

• Utilize the facilitation payment insights from<br />

2012 to create joint initiatives to reduce their<br />

demand in <strong>2013</strong><br />

• Increase the scope of vendors and business<br />

partners to be included in the Responsible<br />

Procurement program<br />

• Increase employee engagement and encourage<br />

sustainable thinking within MT by arranging<br />

periodic visits to the Non-Governmental Organisation<br />

(NGO).<br />

We will do this by:<br />

• Engaging proactively with clients and other<br />

external stakeholders communicating our initiatives,<br />

performance and value proposition and by<br />

communicating positions concerning critical<br />

environmental and climate change issues<br />

• Achieved the target of 5% reduction in average<br />

waste per day and increasing % waste landed at<br />

green ports by 5% ahead of time.<br />

Developed by IMO (International Maritime Organisation) as<br />

indicator of energy efficiency of a ship in operation<br />

• Engage in setting industry Environmental<br />

standards that will improve the performance of<br />

tanker operations


Page 20<br />

Page 21<br />

Environment Projects <strong>2013</strong><br />

Title Description Actions and target<br />

Title Description Actions and target<br />

Reduce air emissions<br />

Plan use of energy, technology<br />

and transport to achieve maximum<br />

benefit for minimum expenditure<br />

of resources.<br />

Minimise oil pollution risks<br />

Reduce oily water discharge from<br />

daily vessel operation<br />

Enhance ballast water management.<br />

Reduce environmental impact of<br />

waste disposal<br />

Chemical Management<br />

Reduce CO 2<br />

exhaust emissions per<br />

cargo unit x nautical mile by 15% by<br />

31st December 2015 from 2007 levels.<br />

Work with Technical and MMT to highlight<br />

Energy Efficient Assets<br />

SOx<br />

Continuously reduce environmental impacts<br />

of tanker vessel operation.<br />

Zero incidents which have impact on sea<br />

or land from fuel, oil transfer and operation<br />

of equipment.<br />

Ensure Environmental Compliance Training<br />

is Complete Shore side and Offshore.<br />

Evaluate ballast treatment technologies<br />

on tanker vessels.<br />

We want to reduce costs associated with<br />

waste disposal, and engage with these to<br />

develop best practice sharing and standard<br />

operating procedures between local<br />

and global units.<br />

Reduce environmental impacts from<br />

chemicals<br />

Support and Drive optimization projects in<br />

the following areas.<br />

· Mapping current initiatives and approaches<br />

· Developing a "green vision" for our assets<br />

· Cargo Heating<br />

· Load and discharge operations<br />

Implement KPI’s on Energy Efficiency for<br />

Technical, Commercial and Operational<br />

Desks.<br />

Set up best practice guidelines for use of<br />

Incinerators based on Safety and Environmental<br />

guidelines<br />

Investigate possibilities in exhaust gas<br />

recirculation and scrubber technology<br />

through the Marine Fuel Forum<br />

Ensure Quarterly trending of all MARPOL<br />

Impacts to ensure we target areas for<br />

improvement<br />

Liaise with Operational Desk to ensure we<br />

manage vessels as effectively as possible<br />

Initiate MARPOL awareness campaign<br />

focusing on minor spills.<br />

E Learning Course to be completed by all<br />

crew on board, focusing on Environmental<br />

Compliance and the on-board role of the<br />

Environmental Officer on the Safety Management<br />

Team.<br />

Ensure all vessels have anti Fouling Management<br />

Plans<br />

Update guidelines on voluntary zero<br />

dumping procedure in ShipNet<br />

Investigate the link between costs of landings<br />

and green ports and prepare proposal<br />

for cost reduction of landings.<br />

Prepare tariff cards for European and<br />

Asian ports<br />

Map the possibilities of establishing a<br />

system that monitors our chemical consumption<br />

on vessel specific basis, both<br />

in order to improve working environment<br />

and environment in terms of substitution,<br />

but also to identify possibilities of cost<br />

optimization in terms of identification of<br />

points of over consumption.<br />

Environmental reporting & industry<br />

standardization<br />

CSR Projects <strong>2013</strong><br />

Verification Audit of our Environmental<br />

Reporting Process<br />

Ensure proper and credible environmental<br />

benchmarking for tanker vessels.<br />

TC in and Pool CO 2<br />

emissions<br />

Independent verification of our Environmental<br />

Reporting System<br />

Title Description Actions and target<br />

Group Standards<br />

Anti-Corruption Programme<br />

Communication<br />

Human Rights<br />

Responsible Procurement<br />

Focus on local content engagement<br />

in areas where employees or<br />

cadets are from.<br />

Basis the UN Global Compact and other<br />

legislative requirements, <strong>Maersk</strong> <strong>Tankers</strong><br />

must ensure all applicable programs are<br />

implemented.<br />

Reducing the financial impacts of facilitation<br />

payments.<br />

To ensure we highlight our focus on Sustainability<br />

to the top customers who have<br />

similar approach.<br />

Implement the Human Rights Programme<br />

in <strong>Maersk</strong> <strong>Tankers</strong><br />

Invite business partners and vendors to<br />

enroll in the program<br />

Solicit inputs from our employees on<br />

potential CSR projects in their local areas<br />

through the Officer's seminars.<br />

Work within Industry to ensure a methodology<br />

for environmental benchmarking is<br />

in place and available.<br />

Map of Pool Partner/TC in vessels to ensure<br />

commercial desks can view potential<br />

vessels from an Energy Efficiency point.<br />

Ensure that all Group Standards and<br />

Programs are implemented in <strong>Maersk</strong><br />

<strong>Tankers</strong> in a timely and appropriate level.<br />

Such as Human Rights Policy and more<br />

local engagement.<br />

Refocus on the Facilitation Payment Program<br />

to ensure that our current processes<br />

are well implemented and understood.<br />

Communicate to relevant stakeholders<br />

on our current sustainability performance<br />

and future initiatives<br />

Develop an sustainability communication<br />

strategy and communication plan<br />

With Group and other BU’s ensure that<br />

the Human Rights Programme is implemented.<br />

Planning audits of 3 Shipowners and 2<br />

Repair Yards, 2 major manufactures<br />

- Understand <strong>Maersk</strong> <strong>Tankers</strong>’ potentials<br />

for engagement in Local Content projects<br />

-Build in “Local Content” sessions as part<br />

of Office Seminars held in developing<br />

countries<br />

-Outline project and potentials based on<br />

suggestions from employees<br />

21


Page 22<br />

Page 23<br />

Key Actions and Success in 2012:<br />

• Identification of tasks to offshore and recruitment and<br />

training of GSC staffs were put in place as of end of July.<br />

• Briefing and debriefing costs have been reduced<br />

through implementation of online communication<br />

solution between hub places and local place of<br />

seafarers.<br />

• Execution of crew change in cost efficient ports has<br />

been started since end of January and continuously<br />

maintains across different Crewing teams to save cost.<br />

• Improving the communication as well as quality service<br />

to our customers, other business units and employees,<br />

by developing the MT Crewing website, Training web<br />

application - Competency Manager for Enhanced<br />

Training (COMET), and Seafarers’ Portal. The MT<br />

Crewing website went live on 30th March with useful<br />

contents to all stakeholders for better visibility of<br />

organization’s activities;<br />

• Furthermore, COMET serves as a platform for seafarers<br />

where they can facilitate all their training activities<br />

such as identifying training records, etc.<br />

• Seafarers’ Portal was initiated to improve the<br />

communication with seafarers by further utilizing the<br />

website as communication medium where they can<br />

access all management communication and strategies.<br />

• Managing an attrition rate of 6% and an on time relieve<br />

of 98% (+/- 30 days) regarding attrition rate and<br />

On-Time relieve<br />

Crewing Projects <strong>2013</strong><br />

Crewing<br />

Title Description Actions and target<br />

CRW<br />

TO<br />

ENV &<br />

CSR<br />

HSSQ<br />

& VET<br />

Operational Efficiency Implement MTBS Processes to be improved include the budgeting<br />

process and the training administration processes<br />

by further enhancing our COMET system.<br />

Simplification of Budgeting process<br />

Further development of training web application<br />

Development of manning offices as regional<br />

centers<br />

Improved communication<br />

Empowerment of manning offices<br />

The goal is to empower the manning offices and<br />

to develop them as regional centers.<br />

Develop communication with new hires Junior<br />

officers.<br />

Employee Engagement Further development of communication By executing more initiatives and enhance the<br />

current portals rolled out in 2012.<br />

Crew Quality<br />

Customer Satisfaction<br />

- Benchmark training activities with peers<br />

- Enhance soft skills through leadership courses<br />

and the personal Appraisals<br />

- Ensure compliance more actively with Maritime<br />

Labour Convention (MLC)<br />

- Zero rejections due to experience matrix<br />

In <strong>2013</strong>, we will benchmark our training activities<br />

with our peers to give us the ability to<br />

assess how we stand compared to our peers,<br />

and thereby further improve training plans and<br />

processes.<br />

Crewing will ensure that we meet all the requirements<br />

when MLC comes into effect in <strong>2013</strong>.<br />

Where we’re aiming in <strong>2013</strong><br />

<strong>Maersk</strong> <strong>Tankers</strong> Crewing vision is to be the leading crewing<br />

service provider in the segment that we operate in through<br />

the creation of a more customer-focused organization as<br />

well as the reduction of cost.<br />

Building on our success in 2012, Crewing aim to achieve<br />

greater success in <strong>2013</strong> in the following aspects:<br />

• Operational Efficiency: Continuously review and streamline<br />

processes<br />

• Cost Efficiency: Be conscientious in our cost management<br />

and constantly identify opportunities for savings<br />

• Employee Engagement: Constantly engage our colleagues,<br />

understand their needs and support one another<br />

• Crew Quality: Continuously review and improve the<br />

quality of our seafarers<br />

• Customer Satisfaction: Consistently strive to understand<br />

the needs of our customers and meet their expectations<br />

• In order to execute an promotion to Master or Chief<br />

Engineer, a candidate must have minimum two recommendations<br />

with approval from both the technical,<br />

nautical, crewing department and the Head of MTTO, all<br />

according to our Promotion Approval Plan.


Page 24<br />

Page 25<br />

Technical<br />

Operation<br />

CRW<br />

TO<br />

HSSQ<br />

& VET<br />

Where we’re aiming in <strong>2013</strong><br />

<strong>2013</strong> will be another year for <strong>Maersk</strong> <strong>Tankers</strong><br />

Technical operation team to ensure smooth vessel<br />

management and operational efficiency. This we will<br />

do by maintaining focus on the areas of responsibility<br />

from 2012 as well as keep focus on:<br />

• Purchasing Logistics <strong>Maersk</strong> <strong>Tankers</strong> will assume<br />

responsibility for the freight budgets, KPI´s to be<br />

developed for benchmarking purposes. This to<br />

ensure further optimization of deliveries to most<br />

optimal ports.<br />

ENV &<br />

CSR<br />

• Best Practice Sharing across the fleets<br />

• Enhance focus on timely close outs of CAPS<br />

(Corrective Action Process)<br />

• Completion of all MIRE (<strong>Maersk</strong> Inspection Report<br />

Program) Inspections on time and updates to<br />

system within less than 3 days<br />

• Development of leading Key Performance Index<br />

(KPI’s) for Technical Department<br />

• Continued development of P200 initiatives and<br />

continued follow-up with vessels.<br />

• Vendor rating of onboard received orders with<br />

amongst other KPI’s packing material, product<br />

quality etc.<br />

• LMS training of all buying personnel with regards<br />

to company standards within the area of Responsible<br />

Procurement.<br />

Technical Operation Projects <strong>2013</strong><br />

Key Actions and Success in 2012<br />

Technical Operation take the role and responsibility<br />

of informing and making of recommendations for<br />

<strong>Maersk</strong> tankers Management team, concerning<br />

abnormal deviations to budgets, vessel operations<br />

etc. which may be required for safe operations or as<br />

requested by managers.<br />

Throughout 2012, we have maintained focus on the<br />

below areas:<br />

• At all times ensure that the vessel is maintained in<br />

line with <strong>Maersk</strong> <strong>Tankers</strong> sustainability and<br />

commercial goals<br />

• Work with ship managers to manage vessels in the<br />

best way possible, both efficiently and economically.<br />

• Ensure standard of maintenance onboard is<br />

understood and implemented by managers<br />

• Share knowledge, ideas and advice as found<br />

necessary with ship managers<br />

• Visit and inspect vessels at regular intervals<br />

• Greater focus on Low Value Orders to ensure<br />

better consolidation, thereby reducing transport,<br />

packaging and administration<br />

• P200 Best Practice onboard requisition handling<br />

including consolidation, optimal delivery points,<br />

RACI model (defining roles and responsibilities)<br />

providing timely delivery of spares needed for<br />

onboard maintenance of equipment.<br />

• Establishing Pembroke hub to reduce number of<br />

truck deliveries from central Rotterdam warehouse.<br />

• Measurement tools on ordering habits created<br />

and shared with each vessel.<br />

Title Description Actions and target<br />

Retrofit<br />

Fuel efficiency<br />

Daily Running Cost (DRC)<br />

Vessel Specific Dashboard<br />

Freight Cost<br />

Research shows saving can be up to 7% for<br />

VLCCs. End 2012 pilot has been planned if the<br />

results confirm the study, we will look at retrofitting<br />

large parts of our entire fleet, starting with<br />

our VLCCs.<br />

Improve our own and TC fleet performance<br />

both at sea and in ports through focus on speed<br />

instructions, base load, hull cleanings, boiler<br />

consumption at sea, port consumptions, etc.<br />

Continue focus on DRC that assures quality<br />

standards<br />

Develop Dashboard and work with vessels to<br />

continue improvements<br />

Further optimize deliveries to most optimal<br />

ports.<br />

Testing and if positive retrofitting part of VLCC<br />

fleet throughout <strong>2013</strong><br />

Continue with fuel efficiency focus in technical,<br />

operational and commercial areas<br />

Maintain focus on DRC<br />

Maintain focus on ordering habits<br />

Purchasing Logistics to take over responsibility<br />

for freight budget


Page 26<br />

Page 27<br />

Car Carriers<br />

Where we are aiming in <strong>2013</strong><br />

During the year <strong>2013</strong>, <strong>Maersk</strong> <strong>Tankers</strong> will operationally<br />

and technically manage 9 PCTC for Hoegh Auto<br />

liners.<br />

As across the board the car carriers are applied and<br />

managed to same standards of safety and quality<br />

that of the tanker industry. Furthermore, KPI’s for<br />

the car carriers’ vessels as well as the fleet group are<br />

similar to the tanker vessels.<br />

Key Actions and Success in 2012<br />

During 2012, we elongated 3W class PCTC (Pure car<br />

and Truck Carried) cargo spaces, thereby increasing<br />

the cargo capacity without increase in emission, but<br />

with a drop in speed. Some of the car carriers’ key<br />

actions in 2012 as well as top performances are<br />

highlighted in the below:<br />

• Three DSME class vessels elongated by 20 meters<br />

(179.9mtrs to 199.1mtrs)<br />

• Increased cargo capacity (standard car units) by<br />

about 20% (from 4303 to 5208)<br />

• One year LTI (Lost Time Injuries) free in 2012.<br />

• Total 55 inspections by Port State Control with<br />

only 20 observations in 2012.


Group core values<br />

CONSTANT CARE<br />

Take care of today, actively prepare for tomorrow<br />

HUMBLENESS<br />

Listen, learn, share, give space to others<br />

UPRIGHTNESS<br />

Our word is our bond<br />

OUR EMPLOYEES<br />

The right environment for the right people<br />

OUR NAME<br />

The sum of our values, passionately striving higher

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