•M aersk to invest a billion in China •C EO: We need a performance culture •M aersk Tankers’ rising star
2/2008
Dear Colleagues,
2008 has come off to a good start. Our first quarter results, with an increase in net
profit from USD 390 million last year to USD 1050 million, were well received by the 足financial market. The progress in result was mainly driven by increased profits in Maersk Oil due to the high oil prices, but performance was good across the Group.
Maersk Line progressed compared to last year in spite of high bunker prices, but
equally important the last changes from streamLINE have been communicated, and we can now concentrate on running the business and serving our customers.
It is worth noting that customer satisfaction has improved markedly, also during the
reorganisation, and I wish to thank the employees for the extra effort during the difficult time.
The global market outlook for the rest of 2008 is difficult, but we continue our efforts
to grow in all areas. As an example, in the offshore sector we have started production in Alvheim at the FPSO Volve field placed in the Norwegian part of the North Sea, and
a jack-up drilling rig is now working in the Persian Gulf. We expect two more drilling
rigs, a semisubmersible drilling unit as well as five large anchor handling vessels to be delivered this year.
So the start has been good and we have strong business initiatives for the rest of
the year. This is the best possible basis to continue our efforts to prepare for future 足challenges.
By outperforming our competitors, we will increase shareholder value and create
the basis for profitable growth and future investments, but equally important we will
motivate everybody in the A.P. Moller - Maersk Group. It is more fun to be working on a winning team.
I wish you all a great summer.
Published by:
Volume 47, No. 2
Printed by From & Co., an environmentally certified
A.P. Moller - Maersk, Copenhagen
June 2008
printing house. The paper is certified according to
Editor: Marie Damsgaard
ISSN 1395-9158
Programme for the Endorsement of Forest Certification.
Layout: Yellow
Cover: Dock workers in Shanghai East Container Terminal
Reproduction permitted only after
Copies: 68,000
pulling the ropes of container vessel MAERSK GIRONDE.
agreement with the editor.
e-mail: grpcom@maersk.com
2
Contents 2/2008
Creating a winning team
Mr Møller passes
the torch to his daughter . . . . . . . . . . . 4 Calendar on the go . . . . . . . . . . . . . . . 5 It is all about winning
in the marketplace . . . . . . . . . . . . . . . 6 No slowboat in China . . . . . . . . . . . . . 8 Svitzer
175 years of safety and support at sea . . . 16 Greater efficiency
Success is measured by your performance in regards to customers and competitors. This is why the Group has to drive a high performance culture says Nils S. Andersen, Group CEO.
page 6
through better technology . . . . . . . . . . 18
LNG
– a small area with a large potential . . . . 20 Virtual savings equal real value . . . . . . . 22 Around the world . . . . . . . . . . . . . . . . 24
Cover story
Namegivings . . . . . . . . . . . . . . . . . . . 29 Personalia . . . . . . . . . . . . . . . . . . . . . 30 In its 175th year of operation, the towage and response company Svitzer is looking to expand its growth – both organically and through acquisition.
page 16
“Innovation is not
simply a fashionable strategy but a way of life
”
APM Terminals’ ECO crane cuts cost by more than 40%, reduces emissions and eliminates u nnecessary engine idling.
page 18
Made in China. This familiar label illustrates how China has become a significant player within world economy and the impressive growth rates are not to stop anytime soon. The A.P. Moller - Maersk Group will invest more than USD one billion in China in the coming years.
page 8
3
Mr Møller told Danish broadcast that his daughter, Ane Mærsk Mc-Kinney Møller, will take over the responsibility of the family foundation when he retires. It was the first time that Mr Møller commented on his successor in public.
Mr Møller passes the torch to his daughter T
his year’s Annual General Meeting will be
Ane Mærsk Mc-Kinney Uggla will take over the reins
was once again held near Svendborg, the small
mented on who should succeed him as Chairman
it was raining cats and dogs which delayed the meet-
Foundation, the majority shareholder of A.P. Moller -
stuck on muddy roads causing traffic jams. Third, and
Chairman of A.P. Moller - Maersk’s Board of Directors
remembered for three things. First, the meeting
Funen town where the company has it origin. Second, ing by almost half an hour because shareholders got
most importantly, Mr Møller said in a TV interview
with Danish broadcast that his youngest daughter
Some people claim that one difference between men and women is women’s ability to multitask, which these knitting female shareholders clearly illustrate.
4
when he retires. Mr Møller has not previously com-
of The A.P. Møller and Chastine Mc-Kinney Møller
Maersk. Today, the 59-year-old Mrs Uggla is Viceand the family foundations.
Thomas Grøndorf, Group Communication
Michael Pram Rasmussen, Chairman of A.P. Moller - Maersk, repeatedly commented on the Group’s environmental performance in his report at the Annual General Meeting. For instance, he said that the Group had launched more than 100 projects which all focus on minimising the environmental impact and reducing fuel consumption.
After ten years as a Maersk Line employee, Maria Fernanda Poveda gets to see where the Maersk wall calendar is born.
Calendar on the go – or how a little blue square most unexpectedly brought tears to the eyes
of a seasoned Maersk Line professional in an industrial Rotterdam suburb. You are probably familiar with the
regional, national and religious holidays). Johan
which adorn the walls of most
Van As, located near Rotterdam in Holland, has
traditional Maersk wall calendars Maersk offices – and those of many
Van As, owner and manager of the printing house overseen the process every year since 1983 when
business partners – around the world. But have
his company first started printing the calendars. “A
calendars are devised and produced?
our facilities and to make sure that the quality lived
you ever considered where the more than 400,000
Maria Fernanda Poveda, temporary Brand Man
ager for Maersk Line, has ordered thousands of
calendars every year since she started working for
whole delegation came from Copenhagen to inspect
up to the company’s standard,” he explains. “We are very proud to still be the publisher of choice.”
Every year since, a representative of Maersk Line
Maersk Line in her native country of Ecuador in 1998,
has travelled together with an employee of Group
ceded the calendars being ordered through the Stock
quarters to oversee the first print of the pictures;
but she never once considered the process that pre-
Department in Copenhagen. One Thursday in May
2008, that changed, as she was called to participate in the approval of the images for next year’s calendar
at the printing house in Holland. “I never imagined that I would be part of this process, and signing my
approval on the blue colour of the calendar nearly brought tears to my eyes,” she says. “It was quite emotional,” she laughs.
The calendars are currently produced for seven
of the business units within the A.P. Moller - Maersk
Group in a total of 52 versions (covering various
The large printing press can print 15,000 sheets per hour. Two million sheets are needed to make the 400,000 calendars produced for A.P. Moller - Maersk each year.
Communication and the Stock Department at headensuring that colours, pictures and logos look just
right. But before the calendars are ready to make
their final journey to destinations around the globe, they will have gone through the countries of Holland
(for print), Belgium (for assembly) and Poland (for packaging). “The journey of the calendars is a perfect
illustration of the global nature of our company,” says Maria Poveda, “and the fact that an Ecuadorean
and a Dane were there at the birth of the first copies just underlines this point.”
Marie Damsgaard, Group Communication
When the first sheets are ready, the quality is checked by the printers. The exact colour varies from machine to machine, which makes on-site approval essential. 5
It is all about winning in the marketplace Performance and the bottom line go hand in hand. This is why the A.P. Moller – Maersk Group has to drive a performance culture with focus on beating competitors in our marketplaces says Nils S. Andersen, Group CEO.
Photo: Artist’s impression
A company that outperforms its competitors will attract both employees and investors.
W
inning and performance are closely linked. This goes for winners at the upcoming Olym-
“As a starting point, each business unit must
focus on beating their competitors in the market-
pics as well as for global corporations like A.P. Moller
place. This means that the business units should be
engagement of the athletes or employees. Unfortu-
want to pay for our products and services, and our
- Maersk. High performance is also linked to the nately, the Group’s average employee engagement
is not within the top quartile of leading companies and this has been reflected in the Group’s finan-
cial results. So, to boost earnings the Group needs
to build a high performance culture explains Nils S.
growing faster than their peers, customers should
cost levels should be competitive. When our businesses deliver satisfying results, investors are more willing to invest in the Group and this will provide us
with more opportunities to create shareholder value. Furthermore, when we outperform competitors we
Andersen, Group CEO.
will also motivate ourselves. We all want to work for
project. It is the difference between going on a diet
However, he adds that creating a high perform-
of our problems in the short term, but we need to
“For example, the simplification of the way we do
value to our shareholders”, says Andersen.
performance”, says Andersen.
“Creating a high performance culture is not a
and leading a healthy lifestyle. A diet might fix some make lifestyle choices in order to deliver long term
What is a high performance culture?
He says that the Group has to find what he calls “the
virtuous circle” before a high performance culture is
created. 6
a winning team”, tells Andersen.
ance culture alone will not drive profitability.
business is equally important in driving our financial
An external focus is necessary
According to Andersen, “winning” is not simply
meeting the budget. “This can clearly be one benchmark for measuring performance since you also
must measure the competitiveness of your products
or your cost structure. Primarily, success is measured
by your performance in regards to customers and competitors”, says Andersen.
“Creating a high performance culture is not a project. It is the difference between going on a diet and leading a healthy lifestyle
”
Nils S. Andersen, Group CEO
Maersk Tankers has an edge W ith a net profit of USD 322 million, Maersk
Tankers was a top performer among a group
of leading listed tanker owners in 2007. Only
Frontline’s net profit of USD 574 million was better. However, Maersk Tankers’ return on assets are second to none from 2003-2007. Kristian Mørch, Senior
Vice President of Maersk Tankers, explains that the
high performance is due to relatively low cost of assets, a low administration cost structure, a large
fleet focused within a few key segments and a lean
organisation.
New performance metrics
To support the creation of a high performance
culture, Group Finance, Group Strategy and Group
HR are working together closely and are reviewing the Group’s performance metrics and compensation systems to ensure that they sufficiently drive be haviour and reward performance and results. For
instance, “rewarding performance” scores low in the Employee Engagement Survey which may make
leaders and employees hesitate to go the extra mile. Bill Allen, Head of Human Resources, explains that
the recent implementation of a share options
programme for top management is an example
of a compensation system that rewards high performance.
“The share options programme strengthens
shareholder value as top management will now have a direct incentive to ensure that their busi-
nesses consistently deliver high performance over
the long-term”, says Allen.
In the future, the Group CEO and Group CFO will
use external benchmarks to guide overall targets for A.P. Moller - Maersk. These benchmarks will then be
cascaded to each business unit and in turn to each
“We are able to squeeze more money out of the
same dollar because of the large fleet we operate in each of our segments. For instance, if you only have
a few tankers and you have to transport oil from oil
producing countries like Saudi Arabia to USA, you will probably end up sailing empty on the way back
to the loading area in the Arabian Gulf. With a large fleet we can optimise our vessels so we on average end up discharging our cargoes closer to the next
loadport, and thereby increase utilisation”, says Kristian Mørch.
He adds that another important reason for
Maersk Tankers’ top spot has been the ability to build, buy and sell vessels at the right time.
“In the past couple of years some of our listed
competitors have been generating a lot of cash and
have been under pressure to re-invest in new vessels at a time where the price of a newbuilding is his-
torically high. As part of a conglomerate, we have not been under the same pressure and have there-
fore been able to have a more strategic view on our investment- and divestment strategy and have
ended up with a fleet which is costing us less than the competitors”, explains Kristian Mørch.
employee’s individual key performance indicators. Allen explains that the benchmarks will be regularly
reviewed during the year to ensure that the targets are still valid and realistic to achieve.
“Today, we have thousands of employees that as
individuals deliver a fantastic performance. This is
great but their performance may not be valuable to
the Group’s overall targets. Therefore, everything we do must always be linked to winning in the market-
place”, says Allen.
Maersk Tankers is a top performer in the tanker market.
Thomas Grøndorf, Group Communication 7
8
No slowboat in
China With years of double digit economic growth rates China has become an economic focal point for the world. But how long will growth in China continue and what will China’s rise mean to A.P. Moller Maersk? Tom Behrens-Sørensen, Chairman of Maersk China Ltd., says that China’s impressive economic performance is not about to stop anytime soon and that China will continue to provide unique opportunities for the Group. This is why A.P. Moller - Maersk’s investment programme exceeds USD one billion.
E
very day 1,500 new cars hit the streets of Beijing. Today 3.5 million privately owned cars are regis-
tered in the capital city of China. 30 years ago there were only 20 privately owned cars in the city. The pre-
cipitous increase in the fleet of cars is a symbol of the
impressive growth China’s economy has experienced. And the growth just seems to continue. China’s gov-
ernment estimates that GDP will grow 9.5% while the US economy is only expected to grow 0-1%.
“Growth has been exceptionally high in recent
years with GDP growth hitting 11.9% in 2007. The
growth might be a bit lower in coming years, yet
it is realistic that China’s economy can maintain a
steady growth above 8% for a relatively long period”,
says Tom Behrens-Sørensen, Chairman of Maersk China Ltd.
9
Maersk LINE
The blue Maersk Line vessels have been known by sight in China since 1924 when the first vessel called a Chinese port. Today, an average of 82 vessels call ports in mainland China and Hong Kong per week, which account for 30% of Maersk Line’s total export cargo. Maersk Line has 42 offices and more than 2,000 employees in mainland China and Hong Kong making it among the largest carriers in China.
China has become an engine of Asian and global
growth and a major owner and global competitor
in energy and other resources. As a market, China’s
“China is the centre for world trade and this has made competition among ocean carriers stiff. Despite our market leading range of services, price has become one of the most important factors to customers making it difficult for us to differentiate ourselves from other carriers. To keep and enhance our position as a leading ocean carrier we will focus on further developing our organisation and services in order to achieve greater cost effectiveness, enhance productivity and make unmatched reliability a key differentiator in the eyes of our customers”, says Tim Smith, Regional Manager for North Asia for Maersk Line.
consumers are the dominant buying force in Asia. Add to all this China’s leaderships’ aspiration for the country and its economy to “Go Global”.
“Hence, we have no intensions of slowing down
our expansion and investments in China. On the contrary, we hope and expect to do much more which
our USD 1.1 billion investment programme clearly illustrates”, says Behrens-Sørensen.
Climbing up the value ladder
He adds that the days when China was primarily
a manufacturer of low value added products like clothes or a supplier of parts to high value products
“The future for Maersk Tankers includes further developing the relationships with Chinese customers and positioning ourselves best possible towards opportunities arising from the rapidly expanding Chinese energy market. A market that by the end of next decade is expected to see annual import of liquid oil and gas products increase with as much as 400-500 million metric tonnes”, says Morten Pilnov, Maersk Tankers China.
1975
M.S. Sally Maersk
First Maersk Line service between the Far East and the United States calling at Shanghai
Maersk Hong Kong Limited established
made the first call ever of a Maersk Line vessel in China
10
panding on its position as a leading global exporter
China’s energy consumption is increasing rapidly and so is Maersk Tankers’ business in the Chinese area. The first Very Large Crude Carrier (VLCC) from Maersk Tankers called mainland China in 1999 and today the VLCC, product tankers and Liquefied Petroleum Gas (LPG) carriers are calling more frequently, primarily discharging crude oil, liquefied petroleum and fuel oil. With orders for more than USD 3 billion, Maersk Tankers is one of the largest customers to the Chinese shipbuilding industry.
1928
China continues to move up the value ladder exexplains Behrens-Sørensen.
Maersk tankers
1924
like sophisticated electronic devices are long gone.
1979
First containerised shipment leaves Mainland China – by Maersk Line
“China is rapidly acquiring the know-how and
technology to engage in the production of all man-
ners of technically complex and advanced products.
Moreover, China is flush with capital to be employed
towards further enhancing manufacturing cap
abilities. As such China is rapidly closing the gap to
traditional high-tech powered export economies”, says Behrens-Sørensen.
He continues: “This is not to say, however, that
China is not competitive within the lower value added segments also. As land prices and salaries are rising in China’s coastal provinces, the interior prov-
inces are continuously providing plentiful access to competitive labour resources and inexpensive
land. As such, the tendency of many manufacturing companies to consider establishment in the interior provinces is expected to accelerate in the coming years”.
1984
1994
First repre sentative office estab lished in Guangzhou
Maersk (China) Shipping Co., Ltd. established (in Mainland China)
1994
Investment in Yantian International Container Terminal Ltd.
China’s impact on global business is evident from the fact that in excess of 30% of all containers ex-
ported globally in 2007 originated in China. This is of
course impacting the Group’s activities in China. For
instance, 43% of Maersk Logistics’ volumes and 30%
of Maersk Line’s export cargo hails from China.
According to Behrens-Sørensen, the Group’s activ
ities have great potential to expand further as there are still many unexploited business opportunities – particularly in inland China.
“As a Group, A.P. Moller - Maersk has been suc-
cessful in seizing many of the opportunities within the transportation industry exemplified by the position of Maersk Line, Maersk Logistics and APM
Terminals in China today. Moreover, the Group has played a pioneering role in bringing about the
success of the Chinese shipbuilding industry. Close
to 100 large ocean going vessels have been ordered
in China, more than any other foreign buyer, and the Group has a very significant procurement pro-
Maersk Logistics
gramme in China”, says Behrens-Sørensen.
43% of Maersk Logistics’ volumes hail from its Chinese activities which employ more than 2,300 people at Maersk Logistics’ 15 Chinese branches (supply chain solution service) and Damco’s 12 branches (forwarding service). In addition, Maersk Logistics is engaged in six joint ventures, supporting traditional warehouse and distribution and import export logistics as well as CFS (cargo freight station) business. “The importance of an efficient supply chain is increasing concurrently with the growing global trade. We therefore need to continue to deliver innovative supply chain solutions to meet our customers’ demands and expectations. Furthermore, we see significant focus on flexible routes to market which will allow our customers to optimise their distribution networks and inventory to meet their own customer needs”, says Steffen SchiøttzChristensen, Head of Maersk Logistics in China.
However, large opportunities exist for other
Group activities. China’s significant and growing
imports of crude oil, refined products and chemicals will provide significant opportunities for Maersk
Tankers as will the growing tendency towards
“The Chinese economy will continue to grow significantly and the Group will therefore keep a high focus on growing our existing businesses in China as well as exploring new opportunities”, says Tom Behrens-Sørensen, Chairman of Maersk China Ltd.
switching to less polluting energy forms, such as LNG. Due to the strategic importance for China to
control a larger share of its energy imports, the coun-
try is aggressively pursuing concessions globally.
China will consider concessions at locations and
under conditions that cannot presently be served by China’s domestic petrochemical industry. This could
provide opportunities for Maersk Oil and Maersk Contractors. To support economic development
China will continue to invite partners of good standing and with the required expertise to participate in local and overseas investments.
1998
1998
1998
1998
2003
2005
2006
President Jiang Zemin receives Mærsk Mc-Kinney Møller
Mercantile (China) Logistics Services Co. established (Maersk Logistics)
Shanghai Tie Yang Multimodal Transportation (TMT) established
Maersk Container Industry acquires factory in Qingdao
Greater China Area established comprising Mainland China, Taiwan, Hong Kong, Macau and Mongolia
Maersk China Limited established
Maersk Shipping Hong Kong established
11
Maersk Container Industry Every third minute a new twenty foot dry container comes out of MCI’s production plant in Dongguan which annually produces 180,000 dry containers to Maersk Line. In Qingdao, MCI has another plant that produces reefer containers and StarCool reefer machines. All together, MCI employs in the region of 4,000 people in China.
“In the next decade the real constraint on enter-
“We have two main challenges. First of all, we have to ensure that we further develop our high quality containers so they continue to be a competitive advantage to Maersk Line. For instance, we are looking at the wooden floors of the containers to see if we can use other materials which are more wearresistant and environmentally friendly. Secondly, by 2010, we want to double our share of the reefer unit market to 12% by introducing our new StarCool machine to be the global market”, says Irving Hultengren, Managing Director of MCI Dongguan.
prise growth in China will not be demand, capital or opportunity but the smooth development of organ-
isational capability and corporate agility. A clear vision and comprehensive, ambitious strategy that
addresses the new China requires resources and
expertise inside and outside China more than ever before”, says Behrens-Sørensen.
Maersk has a unique position
The Group has a unique position in China explains Jens Eskelund, head of Maersk China’s External
Relations and Communication office which handles the contact to Chinese politicians, authorities and
A.P. Moller – Maersk is that the Group has invested
company. Instead of simply repatriating profits, we
media. He believes that one of the strengths of
time and resources into understanding the Chinese government’s priorities and towards becoming a
value adding business partner. An example is APM Terminals that started its Chinese activities in 1994
with a share of the container terminal in Yantian.
reinvest in terminals, intermodal services, production plants etc. Furthermore, we purchase many products
and spare parts in China, e.g. to Dansk Supermarked
and APM Terminals. Finally, we have entered into a number of commercial partnerships with Chinese
Today, APM Terminals is actively involved in 15 ter
companies such as the domestic appliances pro
terminal operators in China. Maersk Line and Maersk
do business with for a nation like China. Through our
minals in China and is amongst the largest foreign Logistics are also leading foreign companies within
container transport and supply chain management.
APM Terminals In 2007, the total mainland China container throughput broke the threshold of 100 million TEU underlining the growing terminal market in China. Including Hong Kong and Taiwan the total container throughput reached 148 million TEU. The container volumes are expected to nearly double in the next five years. This will naturally benefit APM Terminals which has invested in 14 terminals in the Chinese area. “Our ambition is to grow with the market and hopefully even more. This means we have to further develop our existing terminals and establish new terminals in some areas. For instance, we are looking at investment opportunities in the eastern region as well as up the Yangtze River. To achieve our future goals, it is of utmost importance we continue building on our good relationship with the local, regional and central government authorities. They are the key to continued success”, says Kim Gadegaard, President of APM Terminals China.
12
“Our long history of successful business boils
down to our ability to be more than just a service
ducer HAIER. Altogether this makes us attractive to
activities, we can make positive contributions to the country’s development”, says Eskelund.
Think the unthinkable
However, hardening competition is challenging the
Group’s unique position. Domestic companies have
become formidable competitors and the oppor
tunities in China are no longer unknown to foreign competitors. China is on everybody’s mind.
“To win in this marketplace we have to be at the
forefront of the development locally, regionally and
nationally. This means that we must ensure to con-
tinuously nurture and expand upon key relationships with business and government partners that will be essential to future growth” says Eskelund.
He continues: “Someone has said that China is
the place where history does not repeat itself. The scale and speed of what is happening here is with-
out parallel and so are the opportunities. As such, we
must also be able to think the unthinkable. We have to think big and out of the box when it comes to China”, says Eskelund.
Thomas Grøndorf, Group Communication
CSR
China Global Service Centres were set up in 1997 (Guangzhou) and 2000 (Shenzhen) and have 1,580 employees. The centres primarily offer back office services including import and export documentation for Maersk Line, Safmarine, Maersk Logistics and Damco, some liner operations and most recently finance and accounting (FACT) services to Maersk Line, Maersk Logistics and Damco in Greater China, Latin America and Asia Pacific regions. There is also a small team dedicated to providing online live help to external customers on systems and processes. “We are currently exploring the opportunities for gathering even more services in the Global Service Centres. I am confident that our ability to provide high quality service at a much lower cost than the local offices will allow us to do this over time. Our focus remains on improving our productivity through the process excellence methodology while at the same time providing better customer service – in fact, we are currently doing our tasks with 300 employees less than the budget,” says Webster Shao, Senior Director China Global Service Centres.
Photo: Scanpix
Global Service Centres
Within the first day of the 12 May earthquake in China about 2,000 colleagues had made donations, and several offices spontaneously organised donation drives within hours of the incident.
Emergency response and ongoing efforts O
n 12 May this year, the largest earthquake since 1976 hit the Sichuan Province in China. The earthquake caused significant loss of lives, as
well as damage to property and infrastructure. More than 65,000 people
have been reported dead.
Immediately following the event, a nationwide collection of employee
donations was organised via e-mail and the company intranet. Within the
first day, about 2,000 Maersk colleagues had made donations. Some offices spontaneously organised donation drives within hours of the
incident, including the Maersk Global Service Centre in Guangzhou.
“It is amazing that all 1,600 co-workers in China GSCs contributed to
the cash donation and some were also involved in the blood donation. The
engagement and willingness to help out is simply remarkable. I am very
proud of being part of this team,” says Webster Shao, Senior Director of Maersk Global Service Centres in China.
ROSTI What has ATM and photocopy machines to do with Rosti? Well, actually quite a bit because Rosti produces many of the plastic devices you find in these machines. Since 2003, Rosti has experienced average annual growth rates of 15-20% in China, and today its two Chinese production plants, Rosti Integrated Manufacturing Solutions and Rosti Technical Plastics, in Suzhou employ 480 people. The two plants cover the whole spectre of manufacturing services from tooling design, supply chain management, moulding, customisation and assembly of finished products. “Our Chinese activities are expected to play a “locomotive role” in the future expansion plans for Rosti towards 2010 and beyond. We aim at doubling our turnover in China over the next three years. But our growth is impacted by the slowdown in the US economy and the development in the dollar rate”, says Pat Williams, Managing Director of Rosti China.
As of 1 June, more than RMB 3.5 million (USD 500,000) had been donated
towards relief efforts. The company assisted by doubling employee donations, coordinating efforts and by liaising with authorities in the Sichuan
Province and the central government. Due to the massive damage, a long term effort is also needed and the options in this respect are currently being
evaluated by the CSR coordinators present in all the larger offices.
The main focus areas within CSR in China are education and the
environment. To date, Maersk China Ltd. has contributed towards the
construction of about 25 schools in China and expects to do more in this respect. Also, work is being done to increase environmental awareness in
the offices, and many offices have organised their own activities related to the environment.
“We believe in the power of example and aspire to be good corporate
citizens and role models for good business behaviour in all we do. In a
geography developing and changing as fast as China, this is very import ant,” says Jens Eskelund, Senior Director in Maersk China Ltd.
The Maersk Fundamental Business Principles outline the Group’s
position on a number of important rights questions, for example equal
opportunities, safety and rights to association. “Taking the well-being and safety of our colleagues seriously and having clear principles on matters
such as equal opportunities and our working environment is important
towards making us an employer of choice and earning the respect and loyalty of our colleagues,” Jens Eskelund concludes.
13
Maersk steps up recruitment of Chinese seafarers The maritime world is short of seafarers. Shipowners are therefore looking at China as a strategic sourcing area and Maersk Shipping Hong Kong has set up a joint venture with Shanghai Yuhai Shipping Company to recruit directly in China.
I
t is common knowledge that there is a shortage
officers to make sure that the ships sail, so we are
International Seafarers’ Federation (ISF) the mari-
and their total cost level is very competitive”, says
of qualified seafarers in the world. According to
time world is short of 10,000 seafarers, primarily officers and this is likely to increase to 30,000 seafarers by 2015 with the current global newbuilding pro“The Chinese officers are a supplement to our current seafarers. We need all the qualified officers that we can get,” says Henrik Uth, Managing Director of Maersk Shipping Hong Kong.
The 28 Chinese cadets who make up the first batch of graduates from Maersk Shipping Hong Kong. 14
gramme, if nothing fundamentally changes within recruitment and training.
To cope with this recruitment challenge and to
get closer to the Chinese seafarers, Maersk Shipping Hong Kong has established a joint venture crew
management company in Wuhan with Shanghai Yuhai Shipping Company focusing on recruiting and
looking at Chinese officers because they are skilled Captain Henrik Uth, Managing Director of Maersk Shipping Hong Kong.
He stresses that the recruitment of Chinese
seafarers will not lead to layoffs of current Maersk officers.
“The Chinese officers are a supplement to our cur-
rent seafarers. We need all the qualified officers that we can get”.
Must use Chinese agents
managing Chinese cadets and officers.
One could think that with China as sourcing area,
of 80 new vessels and that requires a lot of qualified
tunately not! Chinese legislation is strict and current
“The A.P. Moller - Maersk Group has an order book
the recruitment problem could be resolved. Unfor-
One of the many new Chinese seafarers the company will need in the coming years.
rules prevent foreign shipowners from operating freely in China. For instance, foreign shipowners are not allowed to deploy Chinese seafarers directly. They must be handled by a Chinese agent, who therefore
in reality controls them.
“There is a risk that the agents deploy the sea
farers to other shipowners. Right now the agent
market is driven by how much you pay in wages. We also want company employment to build a sense of
belonging, loyalty and quality and we expect to
accomplish this by training the Chinese seafarers
ourselves with the help of Maersk Training Centre”, explains Uth.
“Being directly established in mainland China
makes it possible for us to get much better control over the agents and be more firm when we are nego tiating with them. This way we hope to improve the
retention rate of Chinese officers” says Uth.
The first batch of Maersk Shipping Hong Kong
graduated in April. 28 Chinese cadets, including two
women, are now being deployed on Maersk vessels for 12 months before becoming officers. In total, the
Group is currently employing 228 Chinese seafarers; 83 officers, 131 cadets and 14 ratings.
Thomas Grøndorf, Group Communication
Maersk Shipping Hong Kong Maersk Shipping Hong Kong was established in 2006. The company has two purposes. Firstly, to spread the ownership risk in Asia establishing an alternative shipowning entity and have vessels sail under Hong Kong flag. Today, seven Maersk vessels are sailing under Hong Kong flag. Secondly, attracting and training Chinese seafarers and strengthening the relationship with China.
15
JOHAN SIEM after capsizing in the
Svitzer
Kieler Canal on 5 October 1896.
175 years of safety and support at sea
While not the largest, but undoubtedly the oldest, business unit in the A.P. Moller - Maersk Group, Svitzer celebrates an impressive anniversary this year. Ever since 1833, when the company was founded by Danish entrepreneur Emil Zeuthen Svitzer, the towage and response company has been pursuing business opportunities within “safety and support at sea.”
C
ompanies do not survive for 175 years without frequently having to adjust and change. For
Svitzer this was initially in response to new technol-
ogies (steam engines and steel ships) and later on to
political and economical turmoil (World Wars I and II and the oil crisis). In many ways, the only constant
seems to have been change.
In recent years, acquisitions have been an import
ant part of Svitzer’s expansion, and amongst the 16
Svitzer in brief From its start in 1833, Svitzer focused on salvage, initially only in Denmark, but later on also in Scandinavia, and as early as 1889 and 1906 in the Mediterranean and China. Svitzer entered the towage market in 1872 when it acquired a shareholding in the Danish operator “Det Forenede Bugserselskab”, and was amongst the emergency response and rescue pioneers in the 1880s. A.P. Moller - Maersk gained 100% control of Svitzer in 1979. Offshore activities beyond emergency response and rescue vessels (ERRV) were left with Maersk Supply Service to develop, and Svitzer set about focusing on becoming a global towage (harbour/terminal/ocean) and response (ERRV/ salvage) operator. When Svitzer acquired Roda Bolaget in 1999, it became a regional (Scandinavian) player, and with the acquisition of Wijsmuller in 2001 and Adsteam in 2007, it became truly global.
companies that comprise the Svitzer Group today
In its 175th year of operation, Svitzer has become the leading towage and response company with more than 4,000 colleagues operating some 500 vessels in more than 40 countries.
are several towage and salvage companies with fas-
cinating century-old histories of their own.
“Four of our five business segments – terminal
towage, ocean towage, salvage and emergency
response – offer solid opportunities for organic
growth. The nature of harbour towage, however, necessitates growth through acquisition. We con-
tinue to look for attractive opportunities in what is
still a rather fragmented industry,” says Jesper Lok, CEO of Svitzer.
Craftsmanship and experience
Saving people from fast rescue crafts in 14 metre
waves and near zero water temperatures in the
North Sea, rescuing grounded or distressed vessels, towing offshore installations half way around the globe and assisting vessels safely in and out of port
requires great craftsmanship.
Every year, crews on board more than 475 tugs
and workboats carry out more than 150,000 jobs
in some 90 ports and at almost 40 terminals. And
while salvage teams attend to casualties all around the world, crew on board almost 30 emergency
response and rescue vessels and ocean-going tugs
stand ready to guard, assist or safely tow offshore installations.
“What we offer our clients is quite unique and
difficult to copy. It requires true craftsmanship and
experience to tow, assist and salvage vessels, installations and people at sea – safely or not at all. We are
all proud to be part of an organisation that does this
every second of the day all over the world,” Jesper Lok concludes.
Jens Viby Mogensen, Svitzer 17
Greater efficiency through better technology APM Terminals’ ambitious growth strategy requires that all business conditions need to be optimally utilised to achieve the company’s vision for 2020. Minimising the environmental footprint and creating sustainable processes are crucial for the future growth as a global company. With a fuel reduction of over 40%, APM Terminals’ new Eco-RTG crane represents an innovative solution to both safeguard the environment and cut energy costs.
18
“A crane is not just a crane.” That’s the firm declar
ation of the proud gentlemen of APM Terminals’ Technical Services department. Among this group of
accomplished and passionate crane enthusiasts, the
crane, in all its variations, has earned a special status,
and is spoken of only in the most respectful and gracious terms.
These crane experts comprise a group of highly
experienced international colleagues all with solid
backgrounds in the crane and port industries. They
are known in the corporate head office of APM Ter-
minals for the obligatory handshakes with which they greet each other politely every morning, their
interesting colorful tie-and shirt combinations and
also for their profound knowledge of and dedication to cranes and crane technology. The people of
Siemens devised a system originally designed for
buses, which could be adapted to APM Terminals’ RTGs. This system saves energy in a different way.
the Technical Services Department are pioneers of
Remarkably, it turned out that by doing this, APM
not simply a fashionable strategy but a way of life.
industry and machinery and to them “Innovation” is
With their engineering acumen, the members
of the APM Terminals Tech-Team are also experts in
translating new ideas into practical applications. At
least one of their inspirations has been of great sig-
nificance to the company and to the environment.
Terminals could save more than 40% on RTG fuel.
“The important lesson learned from this success
story is how to approach a problem. It is common to go straight for the solution to the immediate
problem, but we must not skip a crucial step in the
process, which is just to ask questions. The solution originally envisioned is still not practical today, but
Since its implementation, this radical engine system
because we questioned whether we could find a
efficient Rubber-Tired Gantry Crane (RTG) now in use
nificant new development that benefits the bottom
advancement has been developed into an energyat container terminals around the world.
How did it all start?
more energy-efficient solution, we arrived at a sig-
line of our global business”, advises Søren Søe, Vice President of Technical Services.
The idea originated with the Technical Services
head of Technical Services and now Director of
Siemens to convert an existing RTG crane at the
Jaschob, previously Project Manager in Technical
fied RTG became fully operational in 2005 and dem-
Department in The Hague. Simo Hoite, previously
Innovation and Research & Development, and Roland Services and now Project Manager of Technical Ser
A team of proud parents
In 2004, APM Terminals entered into a contract with
Algeciras terminal into the ECO system. The modionstrated its performance abilities when compared
vices in Shanghai, were the two driving forces behind
with unmodified but otherwise identical cranes.
reason to be proud of the new offspring. The Eco-
the project.
“When a diesel driven RTG crane lowers a contain-
er, the electrical motors generate the same energy
used to lift it, but because there is no way to use it,
APM Terminals and the Tech-Team have good
wonder cuts costs by more than 40%, reduces
harmful emissions such as noise and fumes and
this energy simply burns off as heat” explains Simo
eliminates unnecessary engine idling. This is good
gineering and manufacturing partner Siemens devise
Terminals benefits from lower fuel and energy costs.
Hoite. The orginal intention was to have German ena system to transfer this energy to the truck, charging
for the environment and good for business as APM
The Eco-RTG system is much smaller and lighter
it sufficiently to allow it to drive to the quay crane
than standard RTG Drive systems and requires less
new technologies that do not exist today: induction
brated the fourth birthday of the Eco-RTG and the
and back. However, this would require a number of charging, super-capacitors and electrical trucks.
For the members of the APM Terminals Tech-Team, a crane is not just a crane. This mindset has helped create the Eco-RTG crane which both cuts cost and reduces harmful emissions. (Left to right): Walter Oostwouder, Theo Scheijven, Klaus Pohl, Maarten Verheijen, Søren Søe, Lars Højbjerg Jensen, David Skov, and Nikolaj Kellum.
maintenance. In April 2008, APM Terminals cele ordering of the 100th Eco-RTG unit.
Louise Kjærgaard, APM Terminals 19
LNG – a small area with large potential As energy reserves are shrinking and prices soaring the newest and still rather small segment in Maersk Tankers is going for
MAERSK METHANE, one of the new LNG carriers, which form the basis for a new growth segment for Maersk Tankers.
growth. By the end of next year, the number of LNG (Liquefied Natural Gas) carriers will have increased to eight vessels as part of the strategy to create profitable and c ontinued growth.
N
atural gas is an energy source which attracts increasing
attention these days. While the oil
wells are predicted to run dry in the
not too distant future, natural gas is
forecast to last a lot longer. The Middle
East oil reserves will last 80 years, while
the proven natural gas reserves are sufficient
for almost three times as long, according to BP
Statistical Reviews of World Energy. Not only is it
reassuring for the world’s energy consuming population, but for the LNG carriers in Maersk Tankers it
forms the basis for a new growth segment.
up phase, in which many new
2001 it was decided to give the business segment a
being said, LNG is one of the fastest growing seg-
After three decades with varying attention, in
revival. Following a slow start, today the LNG depart-
ment is working at full speed with four LNG carriers
in operation and an investment plan of around USD
1 billion. In addition to two vessels on long term char-
“LNG is one of the fastest growing
ter to Qatar delivered in 2004
and 2006, two of a series of six
segments in the shipping business new LNG carriers have been with an impressive order book reaching delivered this year with one 50-70% of existing fleet.
”
more scheduled for delivery
this year and the remaining three in 2009 bringing
the fleet to a total of eight vessels.
Although this will not turn Maersk Tankers into
a major player in the LNG industry, it is a significant
investment. By the end of 2009 when all eight ves-
ments in the shipping business with an impressive order book reaching 50-70% of the existing fleet. The
industry expects LNG volumes to increase by 8-12% per year until 2012, with even higher growth rates
after 2012, earning LNG the nickname “the fuel of the future”.
Expensive and advanced ships
In several ways the LNG business differs from sea
transport of crude or refined products. The LNG vessels represent the most expensive and technically
most advanced vessels in Maersk Tankers. To put this
into perspective, a VLCC (Very Large Crude Carrier) in today’s market, costs about USD 155 million where-
sels have been delivered, LNG carriers though only
as the average price of an LNG carrier today is USD
Tankers, makes up a significant amount of Maersk
constituting 8 out of 62 vessels owned by Maersk
Tankers’ estimated assets (book value) due to the
240-250 million.
Like the simpler oil tankers, the LNG carriers are
also double-hulled ships, but are specially designed
significant costs of an LNG carrier. This willingness
and insulated to prevent leakage or rupture in an
in an interesting growth market.
thane, is cooled down to its boiling point of about
to invest signals the intention to establish a position
The LNG market remains fragmented, which is a
natural consequence of an industry being in a build-
20
players are trying to get their share. That
accident. The liquid natural gas, being mainly me minus 163 degrees, stored in a special containment system and kept at atmospheric pressure.
The technically complex design is a notable win for
of the total price of the delivered product, the cost of
Maersk Tankers. It places the business unit in the
transporting LNG amounts to 25-35% of total costs,
new technology in the industry. These vessels are also
optimise their tonnage requirement.
forefront when it comes to exploring and introducing
more environmentally friendly and thereby add to the Group’s agenda of reducing the environmental impact of our shipping operations.
“The LNG carriers have a completely new propulsion technology, Dual Fuel Diesel Electric, which is both more fuel efficient
Years
Natural gas reserves
220
which makes it very important for charterers to
It is also noteworthy that the industry is a long
term business with the risk associated with negoti-
200
ating and entering into contracts of 20 years or more
and securing that vessels are constructed to last up
to 40 years. In comparison liner shipping is fundamentally differently structured, and contracts with
180
larger customers normally run one year.
Looking ahead
Today most of the eight LNG vessels in Maersk
160
Tankers are on charter. Five vessels have been chartered out on long term
employment (15-25 years) with
two on two years charter.
140
Only the last one
120
100
traditional steam turbines commonly used on LNG
vessels,” says Thomas Colding-Jørgensen, Director
still without any short or long term charter.
we have a prime task to secure business for our
of LNG.
Furthermore these vessels require a skilled and
competent crew both ashore and at sea to ensure
“Taking a helicopter view of our business today
ment. Simultaneously we have a task to review our
earned A.P. Moller - Maersk a first-class name in the
the LNG industry’s growth potential,” says Thomas
industry with no off-hire days in the first five years of operation.
Floating pipelines
Another distinction for the LNG market is the basic
business system which differs significantly from other tanker segments. LNG carriers are often
strategy and define how we can capture our share of
As in many other growth businesses, the LNG
market is also confronting bottlenecks and chal-
lenges, such as increasing prices in construction of LNG plants, lack of skilled workers in all areas of the
business, difficulties in financing billion dollar
projects, and gas reserves located in challenging
areas of the world. But there is a huge demand for
different ports throughout their entire lifetime.
the difficulties that the industry has experienced in
Another distinct difference is the cost of trans-
porting LNG. For example compared with the crude
market where transportation costs amount to 5-7%
40
Colding-Jørgensen.
referred to as “floating pipelines” because histor ically they have primarily traded between only a few
60
existing vessels ordered without secure employ-
safe and reliable operation. This is a key customer
requirement, and strong technical operations have
80
in the pipeline, to be delivered in December 2009, is
LNG in the future which eventually will overcome 2005-2007. As Colding-Jørgensen puts it: “Incontro-
vertibly the LNG industry will grow over the next 20 years, and we aim to be part of that potential.”
Source: BP Statistical Reviews of World Energy 2007
and reduces the CO2 emissions compared with
Oil reserves
20
0
Middle East Africa
Europe & Eurasia
S. & Cent. America Asia Pacific
North America
Ghita Borring, Group Communication 21
Virtual savings equal real value A
t Maersk Training Centre’s Svendborg head- quarters, the instructors keep a computerised
log book in the basement. It does not make pretty
reading, but unlike almost every other log book it is
over the past decade.
“We have a saying whenever there is an accident
– ‘that’s on the house’ – because in real life it’s not,”
a work of fiction rather than fact. In it are recorded
explains Frank Tügel Madsen, one of the team of
handling simulator have been involved in, all the
how it drives the message home.”
details of every ‘accident’ students on the anchor bits they would have broken in real life and what it
instructors specialising in anchor handling. “Some
Maersk Supply Service seafarers are now working
could have cost the company. If it were fact rather
in deeper waters with more highly advanced drilling
20 million – every year.
ever. In response to this, the simulators have been
than fiction the cost of the accidents would be USD
The log book was started shortly after the simu-
lator was installed in 1999 and beyond the financial 22
aspect it reflects the way the industry has developed
rigs and with vessels bigger and more powerful than continously upgraded to always match industry needs.
The year is 2000. Back in the old days when the first simulator arrived instructors and seamen alike marveled at the 72° vision offered. Today’s simulator is 360°, but the third generation, when it comes online in January, will go several stages further by running several vessels in unison, giving it a fourth dimension.
There is no doubt of the value to the supply ves-
sel fleet in terms of increased safety and efficiency
but the time has come to rethink the whole simulator set-up. The current simulator housed in the
basement was a world first when it was built and
has continued to lead the field, but it has done more
than just service a need. It has highlighted just how
effective simulator training can be. However, tech-
and other floating installations. Anchor handling with buoys, J-hook and Grapnel as well as five different anchors.
The original AH simulator was built by Kongsberg
Maritime A/S, Norway and was, as is the new one, done in close collaboration between Maersk Supply Service and Maersk Training Centre.
Keeping abreast of developments, Maersk Train-
nology expands daily as do the demands on crews,
ing Centre instructors have been to Kongsberg’s
a desire to gain experience in controlled situations in
hardware and offer suggestions.
fit into the present set-up and a space the size of a
and amongst others A Class officers have expressed manoeuvring their heavier vessels.
So just as vessels displace more and are expected
Norwegian base to monitor progress on the new
The project is so physically big that it would not
to do greater tasks, so too has Maersk Training
handball court was needed. Another design feature
and the first soil was turned in April for a specialist
deeper foundations were an early priority.
Centre’s maritime department responded to the call simulator complex.
The new complex will break more ground than
just the rich Funen earth. For the first time there will
be integrated manoeuvres with participants in sat-
ellite vessels able to take part in the same exercises. Short of throwing salt water on the screens it will be as close to real-life as is possible.
was that the simulators vibrate so strongly that
For those attending today’s courses it has become
a compulsory tour to see where they will carry out
their training come January 2009. The tours are
more or less an extension of the input from all previous courses, which in turn has been used in deciding
Maersk training centre Maersk Training Centre came about because of a human error offshore acci dent on a rig and over three decades it has grown to be a major supplier of skill and safety courses. Its Svendborg home has five departments, Maritime, Oil & Gas, Safety & Security, People Skills and Terminals and is the headquarters for a global training network with subsidiaries, or rep resentation, in the United Kingdom, India, China and most recently Romania.
the make-up of the new complex.
Richard Lightbody, Maersk Training Centre
“Here we have had tremendous help from the
crews, we could not have done this without them” says Frank Tügel Madsen. “They have shot footage of operations and these have formed the basis of the simulated graphics we will use. I think those
who were impressed by the current simulator will be blown away by the new one.”
The main bridge will have 360º visibility with the
Dynamic Positioning connected satellites having
210º and all bridges having full interaction and impact on each other. Four vessels can interact with
each other as well as an independent tow master. The list of possible operations is also expanded from
“They say there’s no such thing as a free lunch, at Maersk Training Centre we extend that to accidents and tours,” says Frank Tügel Madsen as he shows, and listens to, his course participants standing in the mud as the new complex is being built around them.
the current basement situation. When the simu
lators come on line in early 2009 they will be able to
tow and install Semi-subs, Jack-ups, Lay barges, FPSO 23
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Expected growth in Mexico Mexico is the fifth largest country in the Western
Hemisphere and is rich in natural resources such as
petroleum and natural gas. Manufacturing, tourism,
and assembly industries in northern Mexico are now
also important sectors of the economy, as is the
production and export of fruits and vegetables. The country presents significant opportunities for the
Group and many of the Group’s activities already
have a foothold in the country.
Maersk Mexico, headquartered in Mexico City,
represents Maersk Line with offices in eight major cities and ports in the country. During 2007, Maersk
Line shipped more than 1,200 containers weekly to and from Mexico and that number is expected to
grow in 2008. Furthermore, export loads are ex
pected to grow with around 30%, mostly for Mexican shippers of reefer cargo, grains, soy, corn and domes-
ness activities in Mexico furthermore span Damco
entered into a non-commercial cooperation agree-
tically manufactured white goods. Container Busiand Maersk Logistics, Trucking, Inland Depot oper ations and Equipment Maintenance and Repair.
APM Terminals is interested in developing and
operating container terminals in the country and has
declared that it will participate in the bid for a second concession in the port of Lazaro Cardenas, which has almost unlimited expansion potential, and is the primary port of call for Maersk Line in Mexico.
Maersk Oil has strong interests in participating
in the Mexican hydro-carbon industry, and recently
ment with the Mexican state oil company, Pemex, concerning exchange of technology and know-how
focused on deep-sea exploration and exploitation. Maersk Contractors is likewise poised to support the Mexican oil industry.
Finally, Svitzer operates harbour tugs in the port
Erik Bo Hansen, Maersk Mexico
of Progreso on the Yucatan peninsula.
Mexico is a country rich in culture and traditions, much of which traces back to the Aztec and Mayan empires in the pre-Colombian era, as well as the Spanish influence primarily from the 16th and 17th centuries. Palenque, an ancient Maya site in Chiapas, was rediscovered by Spanish explorers in the 16th century.
Her Majesty Queen Margrethe II of Denmark and her husband His Royal Highness Prince Henrik visited Mexico on an official state visit in February 2008. They were accompanied by the Danish Minister of Economic and Business Affairs and Deputy Prime Minister, Bendt Bendtsen, as well as a delegation from the Confederation of Danish Industries. (Left to right): Jakob Plagborg-Møller, Maersk Oil; Ross Ensley, Maersk Oil; Erik Bo Hansen, Maersk Mexico; HRH Prince Henrik; Per Jørgensen, A.P. Moller - Maersk; Robert Bosman, APM Terminals; Henrik Lundgaard Pedersen, APM Terminals; Jens H. Hoffmark, Maersk Contractors; Carsten Følbæk, A.P. Moller - Maersk. 24
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Living our business – in Cambodia The fifth “Living Our Business” course was held in
Phnom Penh, the capital of Cambodia, this February. The course is a three-day workshop for Maersk Logistics and Damco employees letting the partici-
pants gain knowledge by actively playing with the course material. The course in South East Asia was
extended to four days in order to facilitate the language barriers and include a client visit.
24 participants from the APA region (the new Asia
Pacific region, merging South-East Asia and Oceania) On 6 March Eivind Kolding, CEO of Maersk Line, visited the office in Hamburg and the terminal in Bremerhaven. Among the events was committing to ONE BRIDGE which all managers in the office did by signing this poster.
ONE BRIDGE
Adding science to the art of selling An important milestone has been reached in Maersk Line’s streamLINE effort – and in becoming a more effective and efficient sales organisation. Over the past 24 months, a new approach to managing customers and market opportunities has been introduced to more than 3,000 sales people in over 130 countries.
With the finalisation of the official implementation activities, we
were actively engaged in the various group assignments, ranging from mapping the Maersk world to
exploring customers’ needs, and finding out how to grow our business with them, to checking out our competitive landscape.
The participants then had a chance to integrate
the various sessions in a hands-on experience of running their own logistics company through a
simulation called ‘Glocalien’ whereby each participant competed on a virtual market place against five other logistics companies.
Finally, each participant was asked to think about
how they could each make a difference towards ful-
filling the KPIs set for Maersk Logistics and Damco until 2011 – the red thread of the workshop – once back in their daily jobs.
Annabelle Deken, Damco
now enter a new phase of adoption and execution. A phase with focus on increasing sales performance and driving lasting change in both
behaviour and mindset. In every way this marks the end of the beginning! Effectively – and for the first time ever – we now have a
common platform and approach to how we manage our customers, our sales pipeline and sales performance in Maersk Line. Now we need to leverage it to positively impact the customer experience, vessel utilisation and our bottom line.
The approach to driving change – coupled with the global scale of
implementation – has been ambitious. The sales organisation has in
general responded very favourably – recognising the need for change – and with more than 300 sales managers leading the transition and
becoming performance coaches in the process. There is still a long way to go but by sharing our change management experience with
different parts of the organisation – ranging from HR, Finance,
Strategy, Education and Logistics – we hope that our best practices
will benefit future projects and the whole organisation.
Søren Stig Nielsen, Centre Commercial
One of the highlights of the “Living Our Business” workshop was a visit to Sabrina, a Taiwaneseowned garments manufacturing company on the outskirts of Phnom Penh. The owners had flown in from Taiwan to host the group and presented a clear lay-out of the various manufacturing flows and logistics challenges that Sabrina faces. The visit helped the participants to see the benefits of thinking pro-actively with the client in a partnership approach. 25
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Donations to children’s hospitals When supply vessel MÆRSK RELIANCE was sold and handed over
Hedemand and Captain Torben Hestbæk donated presents
the Ship’s Club remained, and the crew had to decide how to
hospital in Odense on behalf of the Ship’s Club.
to its new owners in February, a large amount of money in
distribute the money. The grandchild of Torben Hestbæk, Captain of MÆRSK RELIANCE, had previously undergone treatment
at Odense University Hospital, which the crew had followed
closely. Several of the crew members then suggested that the
money should be donated to the children’s ward, which was
and the check of DKK 19,800 (USD 4,000) to the children’s
The crew of another supply vessel, MAERSK PUNCHER, also
had a profit from their Ship’s Club to donate. Several suggestions were made and eventually Rigshospitalet, the largest
hospital in Denmark, was selected. More specifically, the surgical division for children received the money.
unanimously agreed upon. In March, Ship’s Assistant Mikael
(Left to right): Captain Torben Hestbæk and Ship’s Assistant Mikael Hedemand hand over the donation on behalf of MÆRSK RELIANCE to Head Nurse Britta Skov Jensen and Managing Chief Physician Arne Høst at Odense University Hospital.
(Left to right): Functional Manager Trine Spiegelhauer and Nurse Ann-Sophie Brik of Rigshospitalet with Captain Jens Holmelund Poulsen at the presentation of the donation from MAERSK PUNCHER.
Captain Torben Hestbæk and Captain Jens Holmelund
New development offshore Qatar In 2004, Maersk Oil was awarded an
Extension Area to Block 5 offshore Qatar to appraise development op-
portunities. Qatar Petroleum and
Maersk Oil have now agreed on a plan
for development of the Block 5 Extension Area.
The 2008 Field Development Plan
comprises of drilling of up to six hori-
zontal wells from the Al Shaheen Field “I” location in Block 5 into the Exten-
sion Area. Oil production from the Ex-
tension Area has commenced from
two existing wells and is expected to reach a level of up to 6,000 barrels per day in early 2010. 26
Fiona Dickie, Maersk Oil
His Excellency, Abdulla Bin Hamad Al-Attiyah, Deputy Premier and Minister of Energy and Industry and Thomas Thune Andersen sign the Extension Area agreement.
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New cooperation enables worldwide movement of oilfield equipment A 30 foot crane boom to Egypt by ocean freight and 15 tonnes of wire reels to Trinidad by air are among the equipment Maersk Contractors in Aberdeen has already transported by way of the new cooperation between Danbor Service and Damco. A new cooperation allows Danbor
yard management and container hand
firms holding leading positions in the
oilfield equipment to advise on how to
at the Altens Industrial Estate.
able to offer these services from the
Service to use its experience in handling
ship one-off cargoes and out of gauge
equipment, while Damco offers its glo
bal network of vendors and agents to ensure that shipments are expedited efficiently and at best cost.
In January this year, Danbor Services
Ltd. established in Aberdeen. Danbor Service is primarily engaged in the
oil and gas industry. A part of the A.P.
ling operations for Maersk Contractors
The facility in Aberdeen provides
outset and the idea of teaming with
area, a 4,500 square metre warehouse
seemed the best way of entering the
some 16,000 square metres of yard and some 500 square metres of of- fices. Danbor Service plans to extend
this service to other firms engaged in
the oil and gas industry in Aberdeen, while replicating aspects of the current
service offered in Esbjerg. It is also the
Moller - Maersk Group and established
intention of Danbor Service to establish
company executes logistics services
firms in Northeast Scotland.
in Esbjerg, Denmark, for 30 years, the
a supply base operation for oil and gas
and provides management for offshore
ation in Aberdeen started with Danbor
This is a highly competitive market in
contractors and producers. The oper Service taking over the warehousing,
market. Danbor Service needed to be
A vital component of Danbor Ser
vice’s portfolio is freight forwarding. Aberdeen with some long established
a global leader in forwarding, Damco, market.
Damco did not have a presence in
Aberdeen, at the time, so the partner-
ship has created benefits for both
organisations. Danbor Service has the
back-up, operational experience and
global reach of Damco to offer their oil and gas clients. Damco now has the
client base to start operations in
Aberdeen and a platform from which to develop further business in other industries.
Steen Hansen, Danbor Service
To confirm and clarify the cooperation between Danbor Service and Damco a letter of intent has been issued and signed by the two parties. (Left to right): Stuart Kennedy, Branch Manager Damco; Paul Gallagher, Managing Director Damco; Colin MacIsaac, Assistant General Manager Danbor Ltd.; Steen Hansen, CEO Danbor Ltd.; Chris Sharman, Ocean Manager Damco.
27
AROUND
THE
WORLD
AROUND
THE
WORLD
AROUND
THE
WORLD
Green and greener trucks In keeping with the environmental com-
mitment of Norfolkline Logistics, we are
constantly trying to reduce the average age of our trucks which in turn helps us
in reducing the environmental pollution.
For example, at the end of 2008 the average planned age of a trailer in our continental region will be 1.6 years.
Our vehicles are fitted with the latest
in vehicle stability and braking systems which increases road safety, and we are
minimising the impact on the environ-
ment by buying reefer trailers that are
100% recyclable, trucks with the latest
euro compliant engines and curtain trailers that can be used directly on rail, taking freight off the roads thereby reducing road pollution.
Mervyn McIntyre, Norfolkline
The Maersk Kenya team hands over donations to a Kenya Red Cross official.
A helping hand in Kenya
In February, the staff of Maersk Kenya in Mombasa and Nairobi came
together to support some of the many citizens of Kenya who had been affected by the unrest which broke out following the general election
held in December 2007. The unrest saw hundreds of thousands displaced from their homes, and as a result camps were set up all over
the country.
In the spirit of brotherhood, local staff made donations over two
weeks. The funds raised were then matched equally by the company
and the total sum of Kshs 80,000 (USD 1,300) was used to purchase food stuffs and toiletries greatly needed at the camps.
During the unrest in January, the Kenya team often had to stay
home all day, unable to access the office and Maersk’s customers, to-date, continue to feel the impact and pressure of the unrest on
their business. The theme of the campaign was “A Helping Hand”. Thank you to all who participated.
Growing a moustache for the team Norfolkline Irish Sea co-sponsored the event “SKAL Travel Comedy Awards” held in April earlier this year. The event was attended by Norfolkline customers; travel agents for the
passenger service of the Irish Seas. While it was a great way to build strong relationships with customers it also provided an oppor tunity to have some fun and grow some
moustaches.
It was an evening of comedy, awards
and dancing – “skal!” being an old
Scandinavian greeting offered as a
sign of friendship. For Norfolkline it
proved to be a successful night with two awards. 28
Lorraine McKeown, Norfolkline
Evelyne Karanja, Maersk Kenya
Norfolkline Irish Sea Belfast team sporting false moustaches for a good cause.
NAMEGIVINGS
NAMEGIVINGS
NAMEGIVINGS
NAMEGIVINGS
NAMEGIVINGS
MARGRETHE MÆRSK On Saturday 8 March 2008 Odense Steel Shipyard
(Left to right): Captain Ebbe Larsen; Managing Director Finn Buus Nielsen, Odense Steel Shipyard; Sponsor of MARGRETHE MÆRSK, Maud Andersson; Partner and CEO of Maersk Line Eivind Kolding, A.P. Moller - Maersk and Chief Engineer Søren Bjerre.
presented its latest newbuilding, a 7,000 TEU container ship, for the A.P. Moller - Maersk Group.
Maud Andersson, married to Bo I. Andersson,
Group Vice President, Global Purchasing and Supply
Chain, General Motors Corporation, honoured
A.P. Moller - Maersk and the Yard by naming the newbuilding MARGRETHE MÆRSK.
MARGRETHE MÆRSK is the first in a series of six
container ships. The ship is designed and built to
onmentally friendly and economic transportation
engine which develops 93,000 BHP, the ship will, after delivery, enter Maersk Line’s
meet the highest demands for safe, precise, envir
of goods all over the globe. Among other things,
a waste heat recovery system has been installed to optimise the use of the energy produced.
MARGRETHE MÆRSK is a rational and highly automated ship thoroughly moni-
tored by advanced computer systems. With her 12-cylinder Wärtsilä RT-flex diesel worldwide liner service.
MARGRETHE MÆRSK is registered in Copenhagen and will be commanded by
Captain Ebbe Larsen with Søren Bjerre as Chief Engineer.
MAERSK ALGOL On 25 March 2008 Samsung Heavy Industries
presented its latest newbuilding, the fourth and final in a series of 9,000 TEU container vessels, for the A.P. Moller - Maersk Group. Sys Rovsing, partner
at Danish law firm Bech-Bruun and wife of Hans
Skov Christensen, Director General of the Confeder ation of Danish Industries, honoured A.P. Moller -
Maersk and the shipyard by naming the newbuild-
The container vessel MAERSK ALGOL will be part of
ing MAERSK ALGOL. Søren Skou, Partner and CEO of
the A10 string servicing the Asia-Europe trade. The
including the CEO and President of Samsung Heavy
manded by Captain Min Swee and Chief Engineer
Maersk Tankers, hosted the event where 50 guests, Industries, participated.
(Left to right): J.W. Kim, President and CEO of Samsung Heavy Industries Co. Ltd.; B. R. Ahn, wife of J.W. Kim; Sponsor of Maersk Algol, Sys Rovsing; Hans Skov Christensen, Director General of the Confederation of Danish Industries; Lene Skou, wife of Søren Skou; Søren Skou, Partner and CEO of Maersk Tankers.
vessel will be registered in Singapore and com Goh Thian Eng.
MARCHEN MÆRSK On Saturday 10 May 2008 Odense Steel Shipyard presented its latest newbuilding, a 7,000 TEU container ship, for the A.P. Moller - Maersk Group.
Mrs Ingrid Steenstrøm Nielsen, married to Mr
Finn Buus Nielsen, Managing Director, Odense Steel
Shipyard, honoured A.P. Moller - Maersk and the
Yard by naming the newbuilding MARCHEN MÆRSK.
More than 500 employees and companions from
A.P. Moller - Maersk and the Yard were invited to celebrate the event.
MARCHEN MÆRSK is the second ship in a series of six
container ships – its specifications equalling those of MARGRETHE MÆRSK (see above).
MARCHEN MÆRSK is registered in Dragør and will be
(Left to right): Lars-Erik Brenøe, Executive Vice President, A.P. Moller - Maersk and Chairman, Odense Steel Shipyard; Finn Buus Nielsen, Managing Director, Odense Steel Shipyard; Sponsor, Ingrid Steenstrøm Nielsen; Captain Hans P. Henryson and Chief Engineer Michael Skov Refslund.
commanded by Captain Hans Pauli Henryson with Michael Skov Refslund as Chief Engineer.
29
Esplanaden
Personalia
25 years Anniversary Merete Holton 20 June 2008
25 years Anniversary Flemming Kabbel Nielsen 21 July 2008
25 years Anniversary Michel Deleuran 1 August 2008
25 years Anniversary Henrik Henriksen 1 August 2008
40 years Anniversary Poul Bjerregaard 1 August 2008
40 years Anniversary Lars Holger Kjær 1 August 2008
40 years Anniversary Niels Torben Hansen 1 August 2008
40 years Anniversary Ole Mortensen Technical Organisation 10 August 2008
25 years Anniversary Søren Houman 1 August 2008
25 years Anniversary Ole Lund Madsen 1 August 2008
25 years Anniversary Lars Robert Brøgger Pedersen 1 August 2008
25 years Anniversary Mikael Povlsen 1 August 2008
40 years anniversary Herluf Petersen 28 July 2008
40 years anniversary Henning Bisgaard Lillesø 6 August 2008
40 years anniversary Søren Mogensen 6 August 2008
40 years anniversary Niels Verner Nørby Pedersen 6 August 2008
The Yard
25 years Anniversary Søren Skou CEO, Maersk Tankers 1 August 2008
25 years Anniversary Ingelise Laursen 4 August 2008
25 years Anniversary Jan Herluf Mouritzen 10 August 2008
40 years anniversary Jørn Kirk Christensen 11 July 2008
Maersk Contractors
25 years anniversary Abid Iqbal 25 July 2008
25 years anniversary Ole Helberg Jensen 25 July 2008
25 years anniversary Inge-Lise Nielsen 1 August 2008
25 years anniversary Kenneth Brian Hansen 2 August 2008
25 years anniversary Thomas Bo Winkler 3 August 2008
25 years anniversary Klaus Egeskov 4 August 2008
25 years anniversary Britta Lykke Pedersen 1 August 2008
25 years anniversary Kennet Vilhelmsen 1 August 2008
40 years anniversary Jens Lykke Sørensen 1 August 2008
40 years anniversary Lars Munch Nielsen Chief Engineer 5 August 2008
25 years anniversary Jens Gregersen Captain 7 February 2008
25 years anniversary Emil Andersen Chief Engineer 24 June 2008
25 years anniversary Lars Skov Engdam Captain 21 July 2008
25 years anniversary Danjal Pauli Lisberg Captain 21 July 2008
25 years anniversary Henrik Riddersholm Petersen Captain 21 July 2008
The Fleet
40 years anniversary Jan Larsen Chief Steward 6 April 2008
Maersk Supply Service
25 years anniversary Lars Langendorff Rosenbæk Captain 21 July 2008 30
25 years anniversary Rene Nolsø Fischer Chief Officer 27 July 2008
25 years anniversary Torben Dam Hjortshøj Chief Engineer 1 August 2008
25 years anniversary Per Bo Røngaard Chief Steward 5 August 2008
Retiring Rene Pedersen Ships Assistant 30 April 2007
Retiring Jack Holger Hansen Chief Engineer 31 July 2008
25 years anniversary Peter Johan Christiansen Project Manager 2 August 2008
Organisations Abroad
Obituary The A.P. Moller Maersk Group is sorry to announce the following deaths: Jesper Rasmussen The Yard 5 February 2008
40 years anniversary Brian Fitzgibbon Maersk Inc. 11 July 2008
40 years anniversary Erik Scherning Maersk Inc. 1 August 2008
25 years anniversary Robert Porche Maersk Inc. 2 May 2008
25 years anniversary Randy White Maersk Inc. 23 June 2008
25 years anniversary Colin Green Maersk Inc. 27 June 2008
25 years anniversary Henrik Friis Maersk Inc. 1 July 2008
Norfolkline
25 years anniversary Mark Baker Maersk Inc. 5 July 2008 Danbor
Jørgen Valentine Husted The Fleet 9 February 2008 Mogens Høgsberg Toft The Fleet 18 February 2008 Setty Ntuuli Nyota Tanzania Ltd 14 May 2008
25 years anniversary Ann-Li Tao Maersk Taiwan Ltd 5 August 2008
Peter Lumu Sekabembe Maersk Uganda Ltd 14 May 2008
Retiring David Rosen Maersk Israel Ltd 1 March 2008
Retiring Søren Steen Hansen Maersk Israel Ltd 30 March 2008
Retiring Mohammed Akram Maersk Kuwait 10 April 2008
25 years Anniversary Thomas Woldbye 1 August 2008
Retiring Brian Jeffries 1 August 2008
25 years anniversary Marie Kristensen Finance Department 1 June 2008
40 years anniversary Tonny Aage Ditlev Hansen 30 July 2008
40 years anniversary Ingvert Beier Jensen 5 August 2008
40 years anniversary Ole Dyhrberg Andersen 6 August 2008
25 years anniversary Verner Rolschau Badstue 1 February 2008
25 years anniversary Flemming Ring Nielsen 1 February 2008
25 years anniversary Jens Kruger Olsen 1 February 2008
25 years anniversary Mogens Dam Petersen 1 February 2008
25 years anniversary Benny Hansen 15 February 2008
25 years anniversary Bent Laugesen 1 March 2008
25 years anniversary Kurt Normann Nielsen 1 April 2008
25 years anniversary Kurt Jensen 5 April 2008
25 years anniversary Gunnar Hyldahl Lauritsen 5 April 2008
25 years anniversary Otto Rønde 5 April 2008
25 years anniversary Jan Kaelsbøl Hansen 19 April 2008
25 years anniversary Jens Busk Rønnest 19 April 2008
25 years anniversary Tommy Munkebæk 25 April 2008
25 years anniversary Jens Varming 28 April 2008
25 years anniversary Jimmy Koldig 1 May 2008
25 years anniversary Per Bagge Angelo 1 May 2008
25 years anniversary Tom R. ElmstrømChristensen 1 May 2008
25 years anniversary Per Richardsen 1 May 2008
25 years anniversary Anders Diemer 2 May 2008
25 years anniversary Preben Collin 31 May 2008
25 years anniversary Tonny Sørensen 16 June 2008
25 years anniversary Finn Schweitz Christensen 21 June 2008
25 years anniversary Marianne Hannesbo 27 June 2008
25 years anniversary Flemming Skaarup 1 July 2008
25 years anniversary Hans Ebbesen Knudsen 1 July 2008
25 years anniversary Birgitte Eybye Fonnesbæk 25 July 2008
25 years anniversary Kurt Rasmussen 1 August 2008
25 years anniversary Niels Ankjær Jacobsen 1 August 2008
25 years anniversary John Jensen 4 August 2008
Maersk Oil
31