World - GAC

For professionals in shipping and logisticsworldNo.3 Jul 2010FrontlineResponsesTo GlobalChallengesThe Mobile Agentpage 6South Africapage 14PrecisionMagicianpage 16JULY 2010 | GAC WORLD

EDITORIALShiftingPerspectives...The USA defies predictions of its imminent demise. Singapore continues tore-invent itself. It has been a tough couple of years for these two markedlydifferent economies and yet both have endured – and in the case of Singapore,even prospered.We look in this edition at how Bob Bandos and his team in the UShave handled the downturn and for contrast we’ve asked Ivo Verheyen inSingapore to give us a ground-level perspective on all the punditry abouteconomic collapse and turmoil. The result is a close-up view of how twoGAC locations have dealt with the economic crisis. Our report begins onpage 10.Into South AfricaIt’s World Cup time people! South Africa isbuzzing as all eyes look southward to TableMountain. Buzzing too are our shippingand logistics businesses which have notnoticed the economic woes that bedevilmuch of the world.Pirate activity in the Gulf of Aden issending more vessels around the Cape ofGood Hope which has meant more workfor GAC Shipping. And our logistics jointventure, GAC Laser International hasentered a very ‘fruitful’ line of business.See our roundup starting on page 14-15.Business buzzI do not possess a crystal ball. I did notpredict the volcanic ash cloud coming outof Iceland. But I know what I see and Iam seeing new business and a new spiritof positivity and growth around the GACGroup and our customers. The energymajor Statoil has signed a global shipagency contract with GAC, and we haveconcluded a Master Service Agreementcovering the North Sea and Arctic withWestern Geco, the world’s biggest seismicsurvey company. Another global deal hasbeen sealed with Gazprom Marketing &Trading, a producer and global trader ofLNG. These are welcome signs at a timewhen business people are still nervous.Over in Bob Bandos’s territory wehave recently opened a major logisticsfacility catering for the offshore marinesector. The warehouse and storage yard arelocated in Houston, close to the airport.The full story is located on Page 11.Sent a telex lately?Do you remember when a mobile phonewas about the size of a brick? It wasn’t solong ago. In the past 20 years, the world hasbecome lighter, faster and so much smaller.Telexes are no longer heard. Even faxes areold hat.Now it’s all digital and sleek andtotally portable. Hans Barto, our IT managerin the UK, uses the Insight section on page6 to reflect on how new technologies haveimpacted the ship agency business.The Boatman’s CallGAC’s Technical Manager of Marineoperations in Abu Dhabi is Bengt Olsson– and so it has been for the past 35 years orso. Here is a man who has put his stamp ofQuality on all that GAC Marine does.His contribution to the Group hasbeen significant and it continues. We profilethe man and his mission in this edition.Can-do man!While Bengt has been busy shaping thestandards and technical competencies ofour Marine operations, Bill Hill has spenthis past 25 years in GAC building up aglobal logistics network. Bill’s energy andpositivity are contagious and now he ispouring his efforts into his new role asGroup Vice President - Commercial.“Can’t” and “won’t” are not words youhear often from Bill. “Can do” and “Will do”are more likely phrases. See page 18.LegacyOn a sadder note, in recent weeks two GAClegends, K.O. Mathews and Rolf Muchardt,have passed away. To their families go ourdeepest sympathies. I know there are manycolleagues and many customers too whohad the privilege of dealing with these twogentlemen when they were active playerson the GAC team.Tough when they needed to be, butyou would have to travel a long way tofind two more competent, courteous andgenuinely caring people.The year so farWe seem to be packing a lot of big eventsinto 2010. Disasters have come hard andfast from Chile to Iceland to the Gulf ofMexico. On the positive side, we have theShanghai Expo and football’s World Cupin South Africa. With several months ofthe year still to come, who knows whatjoys and wonders await us down the track.Meanwhile, those of us in the northare getting ready to enjoy summer. Oursouthern friends are praying for winter rainsand for our tropical brothers and sisters it’ssimply another day in paradise. Such is thereach of GAC and our customers. It’s apleasure to be of service.Neil GodfreyEditorneil.godfrey@gacworld.com GAC WORLD | JULY 2010

For professionals in shipping and logisticsJULY 2010 | GAC WORLD CONTENTSEditorial informationLEADEditor:Neil Godfrey,GAC Services Ltd,London, UKArt & Production:BANG Public Relations SingaporeCorrespondence to:Amanda MillenEmail:gacworld@gacworld.comInformation quoted in this publication has beenobtained from several sources. Whilst every carehas been taken to ensure that details are correct,GAC cannot provide guarantees thereof.Material in this publication may be freely quoted,provided the source is clearly identified. GACWorld is printed on environmentally-friendlymanufactured paper.Contacting GACWant the contact details for a GAC office or staffmember? Please visit the Directory section of:www.gacworld.comBack copies of GAC World are available fordownload at www.gacworld.com. Click on ‘News’and then on ‘GAC World magazine’.REGULAR FEATURESTwo Perspectives 10GAC’s men in the USA and Singapore give their view from thefront line.Insight: The Mobile Agent 6Hans Barto considers how technology has revolutionised the wayin which ship agents work.Wherever You Go: GAC Laser Logistics, South Africa 14GAC Laser Logistics meets the need for efficient air, sea and roadimports to South Africa and elsewhere in the continent.Precision Magician 16Greg Newbold profiles GAC Marine’s Technical Manager,Bengt Olsson.Q&A 18In conversation with Bill Hill, Group Vice President - CommercialGAC WRAPFrontlineResponsesTo GlobalChallengesThe Mobile Agentpage 6worldNo.3 Jul 2010World-class sailing boats to Bahrain Showcase 4GAC Bahrain successfully completed all logistics requirements forthe Bahrain 2nd Boat Show International.Massive goods delivered 9GAC Kuwait had what it took to deliver four huge transformersto the Jaber Al Ahmed “W” Substation.South Africapage 4PrecisionMagicianpage 6Seatrade Asia Awards 2010... Best again! 20GAC has won the prestigious “Best Ship Agent” title for thesecond time at the Seatrade Asia Awards in Singapore.JULY 2010 | GAC WORLD

NEW BUSINESSWorld-classsailing boatsto BahrainShowcaseGAC Bahrain successfully completed alllogistics requirements for the Bahrain 2ndBoat Show International, for which it wasappointed the Official Logistics Providerfor the second time.The job required GAC to bring inthe largest fleet of luxury boats ever seenin the Kingdom to showcase it as a premiersailing and leisure destination.End-to-endGAC handled all the logistics from originto delivery on site. This included exhibitionstands, equipment and accessories, plus the17 iconic boats, some more than 70 metreslong, which were moored at the AmwajMarinas.Among the fleet was the world’sfastest conventional-powered boat SilverZwei (the longest known aluminum boatbuilt), as well as luxury yacht Linda Louand the specially-made sailing boat builtfor inspirational quadriplegic yachtswomanHilary Lister, sponsored by the Sail Bahrainproject.Satisfied ClientWael Juju, CEO of Knotika Holding,owner of the BSSI, gave GAC top marksfor their service, saying: “Logistics is amajor factor in the success of any eventof this calibre, but especially so for a BoatShow. It requires a highly specialisedand skilled team with good knowledgeto handle the network of offices involvedthroughout the chain, the legal aspects, thetechnical know-how and the competenceto understand how all these areas form aweb which holds the starting and finishingpoints together.“GAC has proven to be experts intheir field showing professionalism andexpertise under all circumstances. Wewant to say a big thank you to GAC as ourpartner who has continually gone aboveand beyond to ensure the success of thisyear’s Bahrain Boat Show International.”WesternGeco is conducting surveys innorthern waters using sophisticated seismicvessels like the ones pictured.The business relationship began withan initial contract with GAC Norway in2008. During 2009 and 2010 negotiationswere concluded for an ‘all-in-one’ MasterService Agreement.Supporting North Seaenergy searchGAC has been contracted by theworld’s biggest seismic survey company,WesternGeco, to support its North Sea andArctic operations. GAC offices in Norway,the UK and the Netherlands are workingtogether to provide ship agency, marinelogistics, freight forwarding and any relatedservices required by WesternGeco.Cross-border support“GAC had to revise and upgrade its Qualityand Safety certification to meet the highstandards required by WesternGeco,” saysGAC Norway’s Herman Jorgensen. “We’vealso established new offices and warehouses,relocated other offices and employed morestaff to meet our customer’s needs. Thisincludes a sub-agency arrangement inDenmark.“The effect of working withWesternGeco has been two-fold: we havecreated an effective cross-border supportteam and we have pushed our operatingstandards to a higher level.”It’s summer in the North Sea, thebusiest time for seismic work. Probablynot much chance of summer vacations forHerman and his colleagues this year. GAC WORLD | JULY 2010

NEW BUSINESSOslo office expandsNorwegian reachNorwegian ReachGAC Norway has opened it newest logisticsoffice – at Oslo International Airport – tooffer a wider range of integrated services toits clients.Located in the Oslo Air Cargo(OAC) building, the new office provides awide range of warehousing, logistics and airfreight solutions. It is manned by a team offour headed by Logistics Manager AlexanderOlsen, who has more than a decade oflogistics experience including three and ahalf years with GAC Singapore.Expansion & opportunitiesGunnar Lundgren, GAC’s RegionalLogistics Manager for Europe, says GAC’sgeographical expansion in Norway has beendriven by increased business opportunitiesfrom existing and new customers: “Weexpect to see a continuous positive trendin the Norwegian market, with greaterdemand for shipping and logistics services– especially from clients involved in oil &gas operations.”The opening of the GAC Oslo Airportoffice brings the total number of branchesacross Norway to 12, from Oslo northwardsto Spitsbergen in the Arctic Circle. ManagingDirector Ahmet Ozsoy says the next stepwill be to explore further opportunities inthe energy sector, as well for as ship spareslogistics, together with other GAC officesand partners world wide.GazpromGlobalLNG inksworldwidemulti-servicedealGAC has signed a multi-service agreementwith Gazprom Global LNG Ltd, a majortrader and shipper of LNG cargoes andalso a big developer of LNG projects.Diverse servicesThe deal is built on GAC’s diversesuite of global services for the oil andgas industry, ranging from ship agency,bunkers, weather routing and vesselperformance management to maritimetraining.Sami Younis, GAC’s MarketingManager – Shipping, based in London,says: “This deal bears witness to the valueof having a full range of services to offerthe energy industry that can be tailoredand integrated to meet the evolvingrequirements of every client.”Work has already commenced withGazprom Global vessels being handled inthe UK and Japan.Statoil signsworldwide agencycontractEnergy group Statoil has appointed GACto provide hub agency services covering allports outside Norway.The contract extends GAC’srelationship with Statoil through GACNorway which began in the 1980s.“GAC won Statoil’s confidencethrough a combination of teamwork,flexibility in our service offering and plentyof sweat,” says GAC’s Marketing Managerfor Scandinavia, Peter Österman.Another factor was GAC’s abilityto meet Statoil’s IT demands throughGACShip, the Group’s Global HubServices’ IT application. The applicationis under continuous development withinputs from Hub customers, agents andpersonnel.JULY 2010 | GAC WORLD

INSIGHTInsight:The Mobile Agent GAC WORLD | JULY 2010

INSIGHTHans Barto, GAC’s IT Managerresponsible for the UK,considers how technologyhas revolutionised the way inwhich ship agents work.Let’s take a trip back to theearly 1990s. Mobile phones arerare – usually a brick-sized status symbolcarried by the young elite. The World WideWeb is newly invented by British scientistTim Berners-Lee. A ship’s agent’s job stillinvolves a lot of running: from office toport authority; from authority to berth;up and down ladders; then back to theoffice to sort through the paperwork andcommunicate with the customer.Many ship agencies use VHFequipment to talk to the vessels approachingthe port or at anchor. Staff might also havewalkie-talkies to send arrival and sailingdetails to their offices faster. In turn, theoffice informs interested parties by telex(when was the last time you saw a telexmachine in regular use?).Such communication equipment isused as a marketing tool, making the shipagency stand out from its competitors inmeeting the needs of vessel owners andoperators. But this is a time when ownersand operators themselves are limited inhow they can communicate directly withtheir vessel. The ship agent is the link.A very different pictureNow fast forward a couple of decades andsee the impact of mobile technology andsatellite communications systems.Vessel operators no longer needagents to act as communications bridges.They contact their vessel anytime andanywhere. These days, it is not unusualfor operators to see their ship’s ‘in port’details on screen before the ship agent atthe scene has got back to the office. Theycan often see the vessel in the actual portvia satellite imagery.ForesightNot so long ago, it was rare (and evenfrowned upon) for an agency to handlevessels in a port where they did not havean office. Those who did were referred toas ‘car boot’ operators.But that too has changed with the use ofmobile communications tools and with theincreasing pressure on agency fees (in someplaces agents earn less per vessel today thanthey did 10 years ago). As a consequence,marginal ship agency operations in somesmaller ports, have been squeezed out byoperators with the foresight to harness thepower of IT to effectively create mobileoffices, wherever their agent goes.ClickAt GAC Shipping UK we spotted thepotential of the new communicationstools and equipped ourselves so we couldimprove performance and serve vessels inports where we had no physical office. Thekey developments are:• Improved mobile phone technology• Wireless 3G communication advanceswhich extend coverage further yearon year• Ever lighter and more powerful laptopcomputers• Portable scanners• Battery-operated printers and ‘in-car’power supplies.These are now part of the agent’sarsenal to provide better service, faster, atthe click of a mouse.OutsourcedMobile technology has allowed boardingofficers effectively to become outsourcedassets: on the spot where they are needed,when they are needed. There’s no morereturning to the office to order up anyservices or equipment a vessel requires.We’re talking about a mobile office– one that can relocate to wherever itis needed. Onboard or in port, it is thephysical presence of the agent – not hisoffice building – that ensures customersand authorities get the information theyneed in ‘real time’.JULY 2010 | GAC WORLD

GAC WRAPMassive goods deliveredThese four transformers (pictured) each weighed 210 tonnes and they didn’t get anylighter on their journey to Kuwait’s Jaber Al Ahmed “W” Substation. But the GAC Kuwaitteam handling the move didn’t break a sweat.Night movesThe transformers arrived in Shuweikh port from Japan and were hoisted on to heavy-lifttrailers and driven throughout the night - the safest time to move such mammoths – tothe substation.GAC Kuwait made all arrangements with the authorities and engaged a specialescort for the 20 kilometre journey.PRESENTED:GAC Kuwait, with a special award byExcelerate Energy, in recognition of itsoutstanding contribution to the successof the LNG Import Project at Mina Al-Ahmadi, the site of Kuwait’s first LNGimport terminal Mina Al Ahmadi GasPort. GAC was entrusted with the doorto-doorhandling of all the shipments -900,000 kg of cargo and 125 containers- from a variety of origins, includingcustoms clearance, through to delivery at Mina-Al-Ahmadi about 40 kilometres fromKuwait City.CELEBRATED:A 39% rise in GAC Marine Logistics shipments in the first quarter of 2010, compared tothe same period last year. The achievement was marked when GML’s global team - madeup of representatives from the UAE, Korea, Hong Kong, Singapore, India, Netherlands,UK, Greece and Germany - gathered in Dubai recently for their global meeting. Thetwo-day meeting also focused on the ways in which GAC’s Customer Service, Sales andOperations offices and agents around the world work together to promote GML’s door-todeckship spares logistics service.DELIVERED:By GAC Bahrain, works of art for the firstexhibition staged by renowned architectZaha Hadid in the Middle East. Thecompany was entrusted with the logisticsand safe shipment of the exhibits, valued atmillions of dollars, to the Shaikh Ebrahimbin Mohammed Al Khalifa Center forCulture and Research, as part of Bahrain’sSpring of Culture.PINNED:Andhika GAC’s RonyKurnia. He was presentedwith an honourary ‘CrewPin’ from the vessel “CostaAllegra” in recognitionof his efforts to ensure her 38 calls atIndonesian ports, over a four month period,went as smooth as silk. Throughout theship’s tour of the Indonesian Archipelago,Rony worked tirelessly with his colleaguesSuprijanto Widodo and Adin Dawih toiron out all security, communication andimmigration issues.INSPIRED:27 teenage students from Doha College,sponsored by GAC Qatar, for theirexpedition to India as part of theInternational Award scheme. The schemepresents students with challenges tohelp them develop as young adults, andtheir recent Indian adventure includedtrekking in the foothills of the Himalayas,mountaineering, and white water raftingon the Ganges River. GAC WORLD | JULY 2010

GAC WRAPOPENED:GAC Marine Logistics’s (GML) latest officein Chennai, India, to house its growingteam and support the delivery of marinespares to the growing offshore industryin India. The Chennai team is part of anetwork of GML offices located in Dubai,Singapore, Hong Kong, Piraeus, Rotterdamand Sao Paolo.APPOINTED:GAC Qatar, for the seventh year running,to handle the logistics of the Qatar Motor& Motorcycle Federation events such asMotoGP, Superbikes, F3 Cars, Speedbikes,F1 protoypes and launch of new models..The company handles the planningand execution of all logistics for such events- from freight clearance and transportationto the Losail Circuit in Doha, to on-sitedistribution of flight cases to individual pitboxes, re-building of pallets and outboundforwarding. On some occasions, GAC hasspecially chartered aircraft when scheduledflights from the origin country could notmeet tight deadlines.SIGNED:English star cricketer, Andrew “Freddie”Flintoff, as the latest sportsman to sign asponsorship deal with global logistics andshipping company GAC. Flintoff made hisinternational debut as Captain of England’sUnder-19 team for the 1996/1997 seasontest match tour of Pakistan. He was madeCaptain of the England team in 2006 andhas also served as vice-captain. At the end ofthe 2009 Ashes Series, Flintoff announcedhis retirement from Test cricket, butremains active in One Day Internationaland Twenty20 International matches.BRANCHED OUT:Staff from GAC Shanghai, who joinedpupils of the GAC Hope School for a dayof care for trees to mark Chinese ArborDay. The children represent new shootsas part of the ‘Green Bamboo’ initiativeunder which GAC sponsors to help ensurea sound education for the children of ruralfamilies who have had to move to thecity. The third-graders and seven of theirGAC friends gathered in an industrial areaoutside Shanghai to tend to and water threefully-grown trees that they have adopted.HOUSED:GAC Kuwait at its newest branch, atthe Kuwait International Airport cargoterminal. This has further improved GACKuwait’s air freight services by providingcustomers with significant time savingsfrom notification to clients, to issuanceof delivery orders, through to customsclearance. GAC Kuwait is an accreditedIATA Agent.RECOGNISED:GAC Transfer Services’ Mooring Master,John Parry, by Maersk Oil for completing500 accident/incident-free liftings at the AlShaheen Field off Qatar.NAMED:GAC Marine Abu Dhabi as “Best Sub-Contractor – Offshore” by the NationalPetroleum Construction Company (NPCC)at their annual HSE and Quality Day, inrecognition of its outstanding safety andquality track record over more than 30years. Since the late 1970s, GAC Marinehas provided NPCC with anchor handlingtugs, tow tugs and cargo barges, as wellas equipment and personnel at offshorelocations in the Arabian Gulf and India.Johan Fulke, Managing Director ofGAC Marine, says: “This award is proof thatour commitment to HSE matters on all frontshas been successful. It is also a reminder forus to not only maintain but to constantlystrive to improve our HSE system.”JULY 2010 | GAC WORLD

FRONTLINE RESPONSES TO GLOBAL CHALLENGESTwo PerspeFinancial woes and gloomy predictions continue to hit the headlines. GACWorld asked our men in the USA and Singapore for their view from thefront line.10 GAC WORLD | JULY 2010

FRONTLINE RESPONSES TO GLOBAL CHALLENGESctivesBalancing Act - USAThis year, many columnsof newsprint have beendevoted to the USeconomy, pronouncingon what could, should,might or must be done.Bob Bandos, Presidentof GAC USA, prefers to skip the punditryand go straight to the heart of the matter.Possessed of the natural optimismof many Americans, Bandos tends to seethe glass half full. But even he admits that2008 and 2009 were tough years.“We had to make cuts to adjust toreality,” he says. “We are strongly engagedin the tanker agency business and thattook a hit. Refineries on the east coast arerunning at 62% capacity. Across the wholecountry, the sector is at 78%. Spendingis down. People are using their cars less.Public transport use is up 18%. These arenatural responses when people have losttheir jobs.”Now the good newsOn the bright side, GAC USA’s port callnumbers rose last year. True, the ratesreceived on those calls dropped, but thevolume increase helped shore up thecompany’s income.Bandos reckons one reason is shipowners’ and charterers’ caution: “GACis known for its reliability and financialstrength. In hard times, Principals arecareful when choosing a ship agent. Theywant strength, certainty and reliability. Ourcustomer base has also expanded, followingthe closure of some smaller agents whoseclients have come to us.”Some customers trimmed costsby outsourcing to GAC. In one case, adedicated GAC staff member was evenplaced inside the offices of a major clientto ensure smooth handling of their vessels.Banking benefitUS banks are not popular with Americansthese days. They are widely blamed forstarting the whole economic mess. Oneoutcome is that many banks have seentheir loan books diminish and asset booksgrow. They now hold substantial propertyand goods, including cargoes, and theysometimes need help. “We’ve had a boostto our business by working with banks thatare holding cargoes but have no idea whatto do with them,” says Bandos.Stable – and strongerManagers and staff at GAC USA are acollegiate bunch, easy to talk to and alwayswilling to help each other. It’s a stableteam. Finance Manager Bud McNulty says:“Looking at employee turnover, in theAccounting section just one employee hasleft – and that was due to retirement aftermany years of service.”Such stability is enviable. Bandos ispositive: “We have a great team. There’s acommitment. It makes us stronger.”Extending businessUntil recently, GAC USA was a ship agencywith its head office in Philadelphia and 17branches covering the major US ports.Now, it has extended its business reachby launching a project logistics service tocater for the energy and marine sector (seearticle below).“This gives us a broader service baseand lets us integrate our shipping andlogistics capabilities in ways that are usefulto customers,” says Bandos. “We have to beflexible and take our opportunities whenwe find them. These are not easy times, butthe company is holding its balance and it’sgrowing.”Key logisticsservicelaunched in USGAC USA has stepped beyondits traditional ship agencybusiness to launch a majorLogistics initiative basedin Houston. GAC Energy &Marine Services (GEMS) wasestablished in April to provideintegrated project logisticsto the oil & gas and miningindustries.“This puts GAC in the forefront of logistics suppliers in the energy segment and is anatural development of our global project logistics business” says Bob Bandos, Presidentof GAC USA. “It connects with our existing operations in West Africa, NorthernEurope, the Middle East, Central Asia and the Far East.”GEMS operates from a substantial storage facility close to Houston Internationalairport, providing 65,000 sq ft of warehouse space, plus a open air storage area of40,000 sq ft. From here, GEMS provides in-house case packing plus integrated air,ocean, charter and project services, all supported by the latest operating systems andtrack and trace capabilities.“Houston is the hub of the Oil & Gas industry in the US, so for GAC to completeits global project logistics network, we realised that our presence in this strategicmarket was necessary,” adds Bandos. “Besides completing the global picture for GAC,it is clear that a lot of energy projects will emerge in South America which GEMSHouston is ideally positioned to handle.”GEMS will be headed by two vastly experienced people: Mark Moore and YalondaHenderson. Each has more than 20 years in global logistics in locations such as WestAfrica, Middle East, Asia, Indian Sub Continent, South America and Kazakhstan.GEMS will provide services to US-based companies and also to customers inCentral and South America.JULY 2010 | GAC WORLD 11

GAC WRAPGAC trio securemajor refitWhen Chevron Shipping Corporation needed to find an African drydockfor a major refit of its LPG FSO ‘Escravos’, a trio of GAC operationsin Nigeria, Netherlands and South Africa provided the answer.The FSO Escravos at her lay-up berth in Cape Town.Chevron Shipping wanted to extend thelife of their 40,681 ton vessel with a generaloverhaul, refit, steelworks, refurbishmentof quarters and survey. For that it neededa big dry dock and facilities to handle thejob.Chevron Superintendent BrianGoldman and GAC Nigeria’s Key AccountManager for Chevron, Thomas David,worked together to find a solution. A drydock in Cape Town, run by DORMAC, hadwhat was needed, so they contacted DavidHitchman, MD of GAC South Africa, tohelp.That was just part of the story. Therefit also required shipping a 150-ton turbogenerator and other essential equipmentand spares from Europe. That challengewas handled by David den Broeder, GeneralManager of the GAC Netherlands Logistics& Maritime Service Centre in Rotterdam.A Nigerian crew travelled to CapeTown to help with onboard tasks while indock. Ashore, workshops in the port werebusy performing hundreds of tasks for therefit.GAC South Africa’s David Hitchmansays the project was a huge success,despite the magnitude of the job and tightdeadlines.“Everything was carried out in linewith Chevron Shipping’s strict safetymantra: If it can’t be done safely, it must notbe done at all,” he says. “It was the talk of theport and Chevron Shipping’s commitmentto safety is an important legacy of the timethe ‘Escravos’ spent in dry-dock here.”David has also been busy this yearhandling a sizeable increase in port calls.These have risen because more vessels areavoiding pirates in the Gulf of Aden androunding the Cape of Good Hope instead.STS debut atnew SA portWhen the first Ship-to-Ship (STS) transferoccurred at the new port of Ngqura(Coega) in South Africa’s Eastern CapeProvince, GAC was part of the team thatmade it happen.GAC South Africa and STS specialistsSmit Amandla Marine worked closely withthe client, the national Port State Controland South African Environmental Servicesto transfer approximately 32,000 MT ofunleaded gasoline from the mother vesselto the daughter vessel quickly, efficientlyand in accordance with all regulations.Port ProfileLocated 20 km north-east of Port Elizabethat the mouth of the Coega River, Ngqurawas developed to stimulate the economyand create employment opportunitiesin the Eastern Cape. It is one of Africa’sbiggest maritime civil engineering projectscosting around 10 billion Rand.Operations started in October 2009,catering for container, bulk and liquidcargoes, with convenient links to thenearby Industrial Development Zone andthe rest of the country. It is designed toaccept vessels up to 80,000 DWT.JULY 2010 | GAC WORLD 13

WHEREVER YOU GOGAC Laser Logistics,South AfricaAs imports to Africa have grown, so too has the need for efficientair, sea and road freight solutions to get those imports to their finaldestination. In South Africa, GAC Laser International Logistics (GACLaser) handles imports for the domestic market, re-exports goodsto other African countries and exports African goods to the world.SpringboardThis joint venture between the GACGroup and South Africa’s Laser Group is aspringboard for trade with Africa, centredon its bases in Cape Town, Durban andJohannesburg.Through GAC’s global networkand Laser’s local expertise, the companyoffers complete supply chain solutions toSouth African importers and exporters.Services include specialist clearing andforwarding, value-added warehousing, and24/7 customer support. These are built onflexible solutions, modern IT capabilitiesand compliance with international securitystandards.Navigating the minefieldCEO Simon Hayes says: “Trading andexporting into Africa can be like navigatinga minefield – essentially it’s aboutmanaging the risk. Each country has itsown unique customs, banking, legislationand documentation requirements. Rulesof trade can change overnight and it’snot unusual to have freight in the air to adestination only to learn that an embargohas been announced.”GAC Laser has the know-how andcontacts to guide freight safely to its final14 GAC WORLD | JULY 2010

GAC WRAPBeating thesqueeze withrecord citrusshipmentdestination. Approximately 46% of theservices provided by its Johannesburgbranch (in the province of Gauteng), just5 minutes from O R Tambo InternationalAirport, are export based.Africa’s mineral riches also representan important sector of GAC Laser Logistics’business. The company has successfullyhandled the complete export process forclients in the African mining industry.Diamonds from Angola and copper fromZambia are just some of the commoditiesthe company sends to markets as far afieldas China and South America.GAC Laser also handles imports ofchemicals and other commodities essentialfor developing the continent’s infrastructureand its growing industrial sector.GAC Laser will handle a record 2,800,000 cartons of Valencia oranges - just monthsafter entering the South African citrus market.Prior to 2010, a strictly-controlled cold chain was required for all SouthAfrican fruit exports, adding significant costs to the supply chain.Now, however, the local citrus industry has new regulations that significantlyreduce the cost of shipping their juicy loads to European, Middle Eastern and FarEast destinations.The Perishable Products Export Control Board (PPECB) now allows certaincitrus produce (including Valencia oranges) to be handled and stored at ambienttemperatures provided that the fruit is packed into reefer containers or vesselswithin 10 days of inspection at the farms or pack houses.Around the clockCEO Simon Hayes says that to meet the challenges of the new business, GACLaser will be working around the clock during the peak season to ensure that all2,800,000 cartons of fruit are handled in accordance with PPECB regulations.The company’s new warehouse, completed at the end of last year, is 12kmfrom the Port of Durban. The facility has 14 covered container bays and excellentvehicle receiving areas, WI-FI scanning capabilities and top-grade security. To speedup the handling process, double pallet handling forklift attachments have beenfitted and individual pallet positions demarcated for accurate and speedy locationbased on FIFO (First In - First Out) principles and specific target market loading.A PPECB Officer will also be based at the warehouse to ensure compliance withthe 10-day rule.Simon Hayes adds: “We believe the competence of our team in effectivelyplanning and communicating with the growers, transporters, shipping lines andlocal authorities will establish us as a leader in this new market.”JULY 2010 | GAC WORLD 15

GAC FACESPrecision MagicianContinuing our occasional series on GAC people who have contributed significantly to the past,present and future of the Group, Greg Newbold profiles GAC Marine’s Technical Manager,Bengt Olsson.Marine engineers measure their work andperhaps their whole lives in millimetres.They work with the tiny tolerances thatseparate the thing that works from the onethat doesn’t; the thing that lasts from theone that fails.Bengt Olsson has that millimetregaze. He also has another quality found insuccessful engineers. Some call it creativity,others improvisation. To non-engineers, ithas a touch of magician about it.“My first voyages to the Gulf in the1960s were in an old rust bucket,” saysOlsson. “We had a Norwegian First Engineerwho taught me how to improvise, how tosolve problems when you don’t have theexact tools or materials on hand. I havebeen practicing his lessons ever since.”By the time Olsson joined GAC in1974 as Marine Technical Manager, hehad a solid store of experience and a fewscars too – including a permanent limp,courtesy of a youthful encounter with aSwedish gravel road after parting companywith his motorbike. However, he has allhis fingers, and in Olsson’s world of metaland machines, that’s the sign of a carefulworker.Boat peopleOlsson comes from a family of boat peoplein Western Sweden. His uncles had ashipyard, mainly building and working onfishing boats.“If a fisherman wanted to build a newboat, my uncle would create a woodenmodel so the man could hold it and see itslines, rather than just looking at marks andnumbers on paper. My uncle would cut themodel lengthwise along the centerline andmount one half of it so the owner couldput it on his wall. The other half he keptto measure and check the lines and shapeduring construction. ”On the BeachOlsson started his GAC career in AbuDhabi, where he has stayed ever since.Back in 1974, the place was small andunder-developed. Olsson loved it.“We set up on the beach, and thelocal fishermen based there welcomed us,”16 GAC WORLD | JULY 2010

GAC FACEShe says. “We built a slipway to land anddrydock our boats, and soon enough thefishermen were landing their boats as well.Later, the Abu Dhabi Navy dropped by andwe started helping them too.”The collectorIn Abu Dhabi, his task was simple butdemanding: keep GAC’s growing fleet ofsupply boats, tugs and barges in the bestcondition possible.Olsson learned to improvise andcollect. Wood, metal, old oil pipes, whateverwas lying around or could be salvaged fromthe shallow Gulf waters, was all put to gooduse in Olsson’s expanding workyard.“If you look after something properly,it will serve you well for a long time,” hesays. In an age where so much is made tofall apart, such an attitude is the goldenthread that ties a reputation together. GACMarine is known as a quality provider ofvessels and men. Much of this stems fromthe influence of Olsson, making sure themillimetres are measured and that thesolution fits the problem.The menOlsson’s world is full of men: captainsand crews, operations staff and draftsmen,dockyard workers, welders, cutters, fitters,electricians, machinists and carpenters. Inthe early days, his team was drawn mainlyfrom the Maldives & India, and he has thehighest regard for those who joined him onthe beach and started to build a world-classtechnical operation.“They were fast learners and reliableworkers,” he says. “We now have workers,staff, sailors and officers from 13 differentcountries. They’re the cogs that turn thewheels. Thanks to them, and to thosebefore them, GAC Marine is in the topleague of Marine Operations in the Gulf.”The movesOlsson’s operations in Abu Dhabi are now attheir fourth location. A government ownedcompany got a lease on his beach so hemoved offshore to a small island. That lastedfor more than a decade until Abu Dhabi’sruler looked out of his beachside palace oneday to see one of Olsson’s crane tops stickingup over the sand dunes. That led to a visitfrom His Highness’s people, some quietchats with his Navy friends and a move backto the mainland, south of Abu Dhabi city.He stayed there for another decade beforemoving – again - in 2006 to the GAC Marinebase’s present location, where the companyholds a renewable 30-year lease.The lady’s name is GunThey say that behind every great man is agreat woman. In Olsson’s case you shouldchange ‘behind’ to ‘beside’. Olsson’s wifeGun has been in Abu Dhabi nearly as longher husband, and has quietly and steadilykept the Olsson ship afloat and in trim.She is an essential part of Olsson’s storyand of his success in making GAC Marinea quality icon in Gulf waters. To leaveher out of Olsson’s story would be likechopping off his right hand.The boat builderNot content simply to maintain GAC’sGulf fleet, he decided in the 1990s toadd to it. From a slipway, he progressedto a dockyard and fabrication unit withcomputer guided steel cutters and welders;a place of blueprints and wiring diagrams,marine engines and winches. He has builta fleet of tugs and supply boats for GAC,at standards and prices that make captainssmile and accountants tremble.Even today, as he works on finishinghis fourth Anchor-Handling Tug for GAC,he remains restless. That attitude hastested the patience of more than one GACmanager and even Björn Engblom, hislong time colleague and GAC’s ExecutiveChairman, knows how stubborn Olsson canbe when he sets his mind on something.“Bengt is unique and special, and hehas given so much of himself to GAC,” saysEngblom. “He has pushed me to my limitson more than one occasion, and there areothers who have simply thrown up theirhands and walked away. But the thing is,what Bengt aims for is what we all want – todo something that’s worthy, that’s quality,that you’re proud to put your name on.”The next moveThere is no telling what Olsson will donext when his tug is finished. One thing iscertain, he won’t stop being a maker andmaintainer of metal and machines. Thereare big plates of steel in his dockyard, anda glint of the same metal in his eyes. He’sa millimetre man with a magician’s touch.Always will be.JULY 2010 | GAC WORLD 17

GAC FACESQ & A:Bill Hill, Group Vice President- CommercialReflections on a 25-year contribution to the upward march ofthe GAC GroupBorn:20 April 1960 in Manchester, UK.Before GAC:Worked for International Express Co.Ltd. from 1976 to 1979, then RHFreight Group from 1979 to 1984.Joined GAC:Joined as Sales Manager for GACKuwait in 1984. Served from 1988 to1995 as Marketing Manager for GACForwarding Dubai, then as RegionalLogistics Manager for Asia (1995-2002),and Group Vice President Logistics(2002-2009), before being appointedGroup Vice President Commercial in2010.your career? And the scariest?Funniest: A customer once resigned in themiddle of a sales call in Kuwait. Though notfunny at the time, upon reflection it was alittle like being in a Monty Python sketch.Scariest: I was once caught up in a broaddaylight ‘hold-up’ in Down Town Karachi,Jesse James style with a gun held to myhead. Fortunately, I had no possessions onme and the matter passed without furtherincident but it shows how vulnerable weall are.What are the five most importantmilestones that have shaped yourcareer?• Getting my first job at my first interview,aged 16 years.• Studying seven years at night school,to pass my Forwarding & Marketingexaminations.• Getting my first job with GAC, afterinitially being told I was too young.• Being given the empowerment andGroup support to develop the logisticsbusiness in Asia, almost from scratch.18 GAC WORLD | JULY 2010• Being appointed a member of the GACGroup’s Main Board.What would you say has been yourmost significant contribution to GACthus far?Being part of a team that has helpeddevelop the logistics business within GACfrom a small local/regional Middle Eastenterprise to a truly global player.What is the funniest thing that’s everhappened to you during the course ofWhen you consider your 25 years withGAC and the global logistics industry,what have been the major shifts in thebusiness?The world is now much smaller, figuratively.Communications and E-Commerce havechanged forever the way business is done.Transparency is the key word for thefuture.You drove GAC’s foray into sportssponsorship since 2004. What has sportsgot to do with business?The initial plan was to build GAC’s brandusing sports as the platform. However,as we got more involved, we found that

GAC WRAPsports offered many logistics opportunities,so the branding and business went handin-hand.As we have experienced throughour relationships with Formula One racingteams, we need to learn from their workethics:- the meticulous planning, carefulcoordination, clinical efficiency with nomargin for error, enthusiastic people, thebest possible equipment and the will toWIN. We must want to be the best tosucceed in our business.What are the most meaningful lessonsyou’ve learnt from your decades inbusiness?Honesty with colleagues, honesty withcustomers, honesty with suppliers. It’s notalways easy, but life is simpler if you onlyhave to remember the truth.You are heading GAC’s new CommercialUnit. What are your priorities? Whatchallenges do you foresee? What valuedo you think the Commercial team canbring to the rest of GAC?The priorities are to bring together ourSales, Marketing and IT capabilities. TheCommercial Team should be at the ‘sharpend’ of our business, cutting a smooth pathfor the operational and financial experts tomake their jobs easier. We must act as theradar.What must GAC do better to continueto build and grow?We must maintain our company valuesand, at the same time, create a successfulenvironment for our staff, customers andsuppliers.To what extent do you think GAC’sintegrated services have served theGroup and its customers?So far, we have done well, but we have muchmore to do and create in the future as weidentify more areas where we can integrateour service offerings to customers.In business, does size matter? And, ifso, why?Yes and no. Yes, as a certain volume ofbusiness does bring economies of scalewhich are necessary to be competitive.And no, as we can never believe that ‘onesize fits all’ – we are GAC and our cultureis to look after all our customers, big andsmall.What do you see on the horizon for theglobal Logistics industry?Infinite growth, as logistics expands toencompass all services up and down thesupply chain.Woolly hats forwinter sailorsAs the maritime world marks the Yearof the Seafarer, GAC is working withthe international maritime welfarecharity, the Sailors’ Society to deliver20,000 donated woolly hats to sailorsworldwide.The Sailors’ Society is part ofthe worldwide support network thatseeks to safeguard the welfare of sailors.Every year, the Society receives woollyhats knitted bycaring volunteers.This year, theywill be sent– free of charge– to seafarers atMoves &AppointmentsGAC DubaiMike CamaraCompany Sales ManagerPreviously:Sales & Customer Service Manager,Freight Service.GAC Norway - OsloCapt Bjørn KongslieMarine AdvisorPreviously:Master of many vessel typesincluding tankers, bulk carriers,support vessels and tugs.GAC Corporate Communications, SingaporeNikki TaylorCorporate CommunicationsManagerPreviously:Senior Communications Executive.Corporate Communications, HoustonMagen SingletonCommunications Executive,AmericasPreviously:Marketing Director for a localarchitecture firm.locations as far flung as Brazil and Russia,courtesy of GAC’s global distributionnetwork.Strategic support“Many GAC managers started their workinglives at sea, so we appreciate the essentialrole that sailors play in our industry andunderstand the challenges they face,” saysGAC Group President Lars Säfverström.“We have been supporting the Sailors’Society for some years, participating infundraising events and making Christmasdonations. Now, as we welcome the Yearof the Seafarer, this new partnership takesthat support a step further.”GAC JapanYuichi AdachiMarketing Manager, ShippingPreviously:Manager, Marine & Crane Division,ABB K.K. Japan.GAC QatarRavindu Rodrigo- Commercial Manager forLogistics & Shipping ServicesPreviously:Manager, Freight Services &Claims.Corporate Communications, DubaiSalman SiddiquiCommunications Executive, GACSolutionsPreviously:Assistant Manager for CorporateCommunications for a globallogistics firm in Pakistan.LOOKING FOR CONTACT DETAILS?Many GAC staff are listed in the directorysection of the GAC website: www.gacworld.comJust type in the surname of the person you arelooking for in the Name Search field in the“Directory” section of the site.JULY 2010 | GAC WORLD 19

GAC WRAPSeatrade Asia Awards 2010...Best again!GAC has won the prestigious“Best Ship Agent” title for thesecond time at the SeatradeAsia Awards in Singapore.Rewarding excellenceThe event, now in its third year, presents17 awards to companies in the Asianshipping industry, recognising excellenceand innovation across the region.In particular, the awards recognisecompanies taking steps to improve maritimesafety, strengthen ship security and portfacilities, and protect the environment.GAC received the inaugural “Best ShipAgent” award in 2008.www.gacworld.com20 GAC WORLD | JULY 2010