PRECIOUS SHIPPING PUBLIC CO., LTD. ( PSL )

Transcription

1 PRECIOUS SHIPPING PUBLIC CO., LTD. ( PSL ) CSR Awards th August 2013 Website: psl@preciousshipping.com ir@preciousshipping.com 1

2 COMPANY S S BRIEF PROFILE Symbol: PSL Founded: Dec 1989 Listed: Sep 1993 Authorized Capital: THB 1,039,520, (fully paid up) Par Value: THB 1 Sector: Transportation & Logistics Business: Shipowner (Dry Bulk Carrier) & Holding Company Operations Area: International Fleet size (as of 31 Jul 13): 40 ships of 1,350,726 DWT of avg. years Employees (as of 31 Jul 13): 1,106 persons (officers & crew members) Shareholders (as of 31 Jul 13): 4,818 persons Total Revenues (F/S end 30 Jun 13): THB 2, million Net Profit (F/S end 30 Jun 13): THB million EPS (F/S end 30 Jun 13): THB

3 PSL S S VESSELS TRADING AREAS 3

4 MISSION STATEMENT & CORE VALUES MISSION STATEMENT To be the most respected Shipping Company in the world, providing best services and solutions to facilitate International dry-bulk trade CORE VALUES We will manage all our business affairs in accordance with the highest principles of Good Governance. As a part of Good Governance, we have outlined our Corporate Governance Policy which will be strictly followed without any compromise. We will provide efficient, reliable and professional service to all our customers. We will comply with all rules and regulations and follow the highest safety standards in operating our ships with a view to eliminating or at least minimising human injury, loss of life and environmental damage. We will strive to create, preserve and enhance long term value for our shareholders. We will carry out the Company's affairs in a transparent, honest and faithful manner in the best interests of all stakeholders. We will provide a stimulating and rewarding working environment for all our employees with opportunities for self-development and growth. 4

5 OUR CSR & SUSTAINABILITY The Company is committed to conducting business under Good Corporate Governance principles; doing business ethically and striving for the betterment of the society and the environment. The Company acknowledges that its unique character, of having all its ships trade all over the world flying the Royal Thai Flag, obliges it to act as the country s ambassador to the world and the Company takes this responsibility very seriously. The Company places highest priority on Corporate Social Responsibility (CSR) and has built it into the Company s Mission Statement and Core Values. The Company allocates a budget of 0.50% of net profit every year towards CSR activities. This budget is cumulative and is subject to a minimum of Baht 1.75 million and a maximum of Baht 25 million per year. The actual disbursements out of this budget are decided by the Company s senior management, which is periodically or at least once a year reported to the Board of Directors. 5

6 OUR CSR & SUSTAINABILITY

7 CORPORATE GOVERNANCE The Company is committed to conducting business under Good Corporate Governance principles; doing business ethically and striving for the betterment of society and the environment. The Company acknowledges that its unique character, of having all its ships trade all over the world flying the Royal Thai Flag, obliges it to act as the country s ambassadors to the world and the Company takes this responsibility very seriously. PSL has been classified in Companies with Excellent CG scoring category by Thai Institute of Directors in association with National CG committee in CG Rating of Thai listed Companies for 3 consecutive years 2010, 2011 and

8 CUSTOMERS The Company recognises that it is in the sea transportation industry and its success depends on adding value to customers by way of transporting goods from place of production to the place of consumption The Company is committed to provide substantive reply to any query from a Customer promptly, but in any event within 24 hours including weekends and national/international holidays. Further, whilst operating within the scope of the agreed contract, the Company tries to provide solutions to any situation/problem the Customer may face, even if any of our vessels are not involved at that moment. New computer-based Management Information System: The Company has implemented a new Computer Program which covers all the operations at the Company and also links all the vessels in the fleet. This software gives realtime information on vessel operations, costs, etc. and keeps the Company in close contact with the Master of each and every vessel; and assists in effective decision making on all issues. This System has enhanced the Company s ability to better serve its Customers, and to provide support to its employees serving onboard the ships. 8

9 EMPLOYEES Safety & Occupational Health It is the Company s policy to conduct its activities in a manner that promotes the health and safety of its employees so that the actions of the Company, and its employees, promote the health and safety of others too. The Company s Safety Management System (SMS) is intended to affirm that the Company achieves its purpose in this area and is based on the philosophy that accidents can be prevented by the identification and management of risk The Company s medical fitness requirements are higher than the standards set by International Labour Organization (ILO) and other regulatory bodies. As a result, the Company finds very few cases of fitness or sickness related problems amongst its seafarers. 9

10 EMPLOYEES Training & Development It is the Company s policy to encourage and support competent and efficient seafarers and give them the opportunity to grow within the Organization. The Company is introducing a mechanism whereby the officers and crew serving onboard our ships can send in their complaints and/or suggestions to the office. This, we expect will encourage the ship-staff to make effective contribution to the shipboard operations, and help us further improve the Company s performance. In order to motivate the junior officers and also keep up with the process of learning while on board, senior officers are asked to actively interact with them. In order to measure their levels of competency, computer based competency test facility is provided on board. Based on the results of these tests, officers are able to determine their weaknesses and work to improve upon on weak areas. Maritime Training Center & Bridge Navigation Simulator : The Company has set up a full-fledged Maritime Training Center at its Head Office in Bangkok which includes a state-of-the-art Bridge Navigation Simulator. 10

11 EMPLOYEES Our Training Center Bridge Navigation Simulator 11

12 COMMUNITY & SOCIETY The Company recognizes that a solid community and society is a significant factor to support the Company s business. The Company fully recognizes its responsibility to the Community and is attentive to the consequences of the Company s conduct that affect the people around more than what the laws require, including making efforts to gradually absorb social accountability. The creation and expansion of the Company s CSR Fund will provide a permanent and formal framework to enhance the Company s CSR activities. The Company employs most of the cadets passing out from the Merchant Marine Training Center, Thailand and thus contributes to the development of qualified Thai officers. This pool of officers is available to any/all Thai ship-owners and not just restricted to the Company. NASIC Dormitory project, scholarship, blood donation, PSL Annual Maritime Day Run 12

13 COMPLIANCE WITH REGULATIONS In order to have the Company s ships sailing in international waters, the Company is legally required to be fully compliant with the following regulations imposed by the International Maritime Organization (IMO) and other regulatory bodies: Maritime Regulations for Prevention of Pollution (MARPOL). International Convention for the Control and Management of Ships Ballast Water and Sediments International Convention on the Control of Harmful Anti-Fouling Systems International Convention on Civil Liability for Bunker Oil Pollution Damage International Maritime Dangerous Goods Code. National Regional and Local regulations more stringent than the international requirements like US environment protection acts, European Union air pollution directives etcetera. In addition to the above, the most significant regulations are ISM Code & ISPS Code and the Company s efforts to remain compliant. 13

14 COMPLIANCE WITH REGULATIONS ISM Code International Safety Management Code (ISM Code): Learning from various marine casualties over the years, International Safety Management Code (ISM Code) was introduced by the International Maritime Organization, to enhance the safe operation of ships and pollution prevention. The ISM Code became mandatory on 1st July 1998 for passenger ships including passenger high-speed crafts, oil tankers, chemical tankers, gas carriers, bulk carriers and cargo high-speed crafts of 500 gt and upwards, but the Company implemented this in 1995 itself after obtaining due certification. The Code is implemented on board the vessels and offices ashore in order to provide an international standard for the following objectives: 1. Ensure safety at sea 2. Prevent human injury or loss of life 3. Avoid damage to the environment 14

15 COMPLIANCE WITH REGULATIONS ISPS Code International Ship and Port Safety: ISPS Code, The code is an amendment to the Safety of Life At Sea (SOLAS) Convention that encompasses a greater level of security arrangements for ships and ports. In implementing the ISPS Code the Company has developed standard operating procedures for vessels entering ports prone to drug smuggling, and stowaways. This includes employing sniffer dogs and armed guards where appropriate. Annual internal reviews are conducted on preventative measures including the performance of the companies providing the sniffer dogs and guards. Annual internal audits are conducted on board by a dedicated team of qualified and experienced ship auditors reporting directly to the Managing Director. All incidents of non-compliances, accidents and near misses are thoroughly investigated and analyzed, after which procedures are reviewed immediately. 15

16 COMPLIANCE WITH REGULATIONS MARPOL The International Convention for the Prevention of Pollution from Ships (MARPOL) is one of the most important environmental regulations in the maritime industry includes regulation aimed at preventing and minimizing pollution of the marine environment by ships from operational or accidental causes. There is a companywide acknowledgment that the risk posed to the marine environment from a marine incident is severe. The Company has adopted a great deal of preventative measures to limit this risk factor. The first is to limit human error, and the second is to maintain the vessel s machinery to the highest possible standard. In order to limit human error the Company has developed an internal training programme for all seagoing staff. This includes simulator exercises designed to improve navigational skills and awareness by putting officers through various weather, sea and port conditions. The Company also ensures that all engineers employed are put through their own specific rigorous programme aimed at enhancing their ability to maintain engines and avoid any fuel or sludge discharge while the vessel is in port or at sea. 16

17 COMPLIANCE WITH REGULATIONS The Company targets to have ZERO ISM, ISPS & MARPOL violations in

18 PROTECTION & CONSERVATION OF ENVIRONMENT COMMITMENT FROM TOP MANAGEMENT With ocean sustainability issues increasing & affecting future of shipping, shipping industries should demonstrate CORPORATE OCEAN RESPONSIBILITY Our industry being of a global nature we need to preserve the Oceans. We conduct periodic reviews to improve our SQEMS and the Company hopes to elevate environmental performance over the coming years and make significant contribution to conservation of the environment and reducing the Company s carbon footprint. Another tangible effort being made by the Company to reduce the environmental impact of the business is the adoption of new environment friendly technology on new ships acquired. Each member of the Crew is trained to stress on the importance of adopting best practices for conservation of the environment 18

19 PROTECTION & CONSERVATION OF ENVIRONMENT COMMITMENT FROM TOP MANAGEMENT Environmental Management System (EMS) based on ISO 14001:2004 standard was developed and integrated into the existing Quality Management System (QMS) based on ISO 9001 standard. The new system is now being called Safety Quality and Environment Management System (SQEMS). After successful completion of Company audit and Shipboard audit, we were awarded compliance certificate for ISO 14001:2004 in December

20 PROTECTION & CONSERVATION OF ENVIRONMENT The Company has established an Environment Protection Policy In addition to minimum requirements based on international conventions and regulations. ISO 14001:2004 provides a framework for a holistic, strategic approach to the Company s environmental policy, plans and actions, and demonstrates that the Company is an environmentally responsible organization. The Company implements an Environment Management System (EMS) complying with the ISO standards. The EMS supplements the Quality Management System, meeting ISO 9001 standard, and the ISM code. This integrated Management System is known as Safety Quality and Environment Management System (SQEMS). Through periodic review and continual improvement of our SQEMS, the Company hopes to elevate environmental performance over the coming years and make significant contribution to conservation of the environment and reducing the Company s carbon footprint. Another tangible effort being made by the Company to reduce the environmental impact of the business is the adoption of new environment friendly technology on new ships acquired. 20

21 PROTECTION & CONSERVATION OF ENVIRONMENT Carbon Footprint & Waste Generation The most recognized and constant source of CO2 comes from the burning of fuel oil onboard ships. In order to reduce CO2 emission, the only alternative available is to reduce the fossil fuel burnt. But that is not possible without sacrificing growth and development. The need therefore is to achieve higher efficiency while reducing the quantity of fuel oil burnt, and the Company has taken the following steps to achieve this. Improved voyage planning with reduced/minimized ballast passage. Weather routing. Speed Optimization. Optimized ship handling by Trim, Ballast condition. Hull Maintenance. Use of improved Hull coatings like Silicon based anti-fouling that does not release biocides like other anti-fouling paints. Improved cargo handling. Good Engine Maintenance. 21

22 PROTECTION & CONSERVATION OF ENVIRONMENT The Company has consciously opted to acquire larger ships, of 54,000 57,000 tons deadweight; these ships can carry almost twice the amount of cargo, i.e. 100% more, compared to smaller ships in the fleet. However, more importantly, the larger ships burn just about 40-45% more fuel than the smaller ships per day of sailing. On this basis, the fuel burnt per unit load of cargo reduces drastically; this is yet another example of the Company s efforts towards sustainability and to reduce the carbon footprint. The Company s stated goal is to own approximately ships in the near future, and as such the aim is to endeavor to reduce the fuel and diesel oil consumption on a progressive basis every year. To accomplish this, the Company continuously looks at new technologies available in the market and examines their applicability for our type & size of ships. Ship builders the world-over are actively marketing their vessels as eco friendly and describing them with speed and consumption figures that were previously never achieved. The Company seriously evaluates all new developments, but realized that the builders claims are often sensationalised to grab attention and when technical parameters such as calorific value of fuel, design and scantling draft and sea margins are taken into consideration, the so-called benefits simply do not exist or they are not cost-effective. In any event, the Company looks very closely at the machinery installed on all new acquisitions, whether new buildings or second hand vessels, and monitor their performance very carefully to arrive at optimum speed and consumption variables, while ensuring that emissions are kept to a minimum. 22

23 PROTECTION & CONSERVATION OF ENVIRONMENT Another source of harmful substances generated by our ship s consumption of fuel and diesel oil is sludge. Sludge is a product of on board fuel oil purification and as an alternative to incinerating sludge and releasing even more harmful gasses into the environment. The Company has made a substantial effort to dispose of such material to shore based reception facilities. This is a much more expensive way for dealing with this issue but the Company is committed to reducing its carbon footprint and reflects the Company s efforts towards environmental conservation. Between 2011 and 2012, the Company increased the disposal of sludge ashore by 9% from 532 tons to 579 tons of sludge. This accounts for the highest quantity of sludge disposed ashore in recent years. By delivering sludge to a suitable reception facility, this waste can be recycled to make products like grease which is a lubricant widely used in multiple industries. 23

24 PROTECTION & CONSERVATION OF ENVIRONMENT Our Achievements & Environmental performance Reduced fuel consumption Reduced Environmental incidents /complaints Increased sludge disposal ashore Reduced garbage and plastics generated Reduced Electricity consumption Reduced Paper consumption 24

25 PROTECTION & CONSERVATION OF ENVIRONMENT Our Achievements & Environmental performance Saving of fuel is achieved by implementing following good practices: Improved voyage planning with reduced Minimize ballast passage Weather routing Speed Optimization Optimized ship handling by Trim, Ballast Hull Maintenance Use of improved Hull coatings like the Silicon based fouling release which does not release biocides like other anti fouling paints. Improved cargo handling Good Engine Maintenance 25

26 PROTECTION & CONSERVATION OF ENVIRONMENT Our Achievements & Environmental performance Minimum incineration of Waste oil and Oil Sludge. Disposal ashore has been encouraged on our vessels where ever suitable reception facilities are available. Data collected from the last 12 months show that our vessels have disposed to shore facilities about 370 Tons of sludge (370,000 Liters) That amounts to 1100 tons of carbon dioxide NOT being emitted into the atmosphere! Empirical research suggests that every liter of oil burnt generates approximately 3 kg of CO2. Waste oil or sludge generated on each ship is about 1% of all fuel burnt. Vessels are also encouraged to Minimise Garbage generated and maximize disposal of Garbage ashore. 26

27 PROTECTION & CONSERVATION OF ENVIRONMENT Our Achievements & Environmental performance Engine Efficiency Operational Indicator (EEOI): An index of the amount of Carbon dioxide produced for every Ton-Mile of cargo carried is being implemented through a software to enable measure our carbon foot print. 27

28 CONCLUSION Conclusion and Environmental Objectives and Goals We have had no major contingency situations causing significant environmental damage. The Future Possibilities: Use of Greener fuel like Natural gas, Use of Fuel cells & Sail assisted ships. 28