Burando sustainability report2012 by Robin Baris

Sustainability Report 2012

Burando Maritime Services

Delivering on our â&#x20AC;&#x153;one-stop-shopâ&#x20AC;? promise.

June 2013

ONE-STOP-SHOP BURANDO MARITIME SERVICES

Our services

Customs Services

Rental Services

Fendercare

Service Terminal Roterdam

Provider of customs consultancy and IT solutions for logistical, administrative and fiscal challenges

Rental of power packs and hydraulic-driven pumps

Hose and fender rental and deployment of personnel for board-to-board activities

Ship-to-ship transshipments and lay-by services, onshore storage of heavy fuel, and delivery of utilities

SERVICE SHIP TO SHIP PURGING LAY-BY

SHIP SPARES LOGISTICS CUSTOMS

N O

S M O K I N G

CRANE BARGE 2

FTS HOFFTRANS

Ship Spares Logistics

FTS Hofftrans

Transport, forwarding and hoisting/ rigging of goods; delivery of ship supplies and equipment by road, sea and air for shipping, petrochemical and offshore industries

Oil transportation (bunker deliveries and inter-refinery transport)

N O

S M O K I N G

Trefoil Trading

Nature Group plc

Global gasoil trading and delivery

International Slop Disposal (Collection, transportation and storage of liquid and solid shipâ&#x20AC;&#x2122;s waste) Ecoscrub Solutions (Provider of solutions for odour and emissions treatment)

Table of Contents Our services (in brief) 3 About this report 7 About us 9 - Who are we 9 - Our purpose 9 - Our Organisation 12 - Our History 14 - Our Fleet 17 CEOâ&#x20AC;&#x2122;s Report 20 Policy 24 Highlights 27 Our Services 28 - Burando Oil Logistics 28 - Burando Maritime Logistics 29 Our Achievements 32 - People 32

- Sustainability and Business Assurance

Operations 48 - Burando Oil Logistics 48 - Burando Maritime Logistics 54 Future Developments 58 Final Words 61 Annexes 63 - Facts and Figures 64

BMS Sustainability Report 2012

About this report Following on from the success of our previous Sustainability Reports, we are pleased to present our Sustainability Report 2012. It again reflects all business activities of Burando Maritime Services (Burando), which consists of Burando Maritime Logistics (BML) and Burando Oil Logistics (BOL). This report details and evaluates our performance in all those operational aspects and activities that have the potential to affect – whether positively or negatively – the quality of our work, the health and safety of our employees, the environment, or society at large. It covers all subsidiaries and legal entities of Burando that were operational for more than one full month in 2012. As with last year’s report, this report reflects our sincere commitment to openness and transparency about what we have achieved. It provides insight not only into our operational figures, but also into the sustainability and social responsibility of our businesses. In the interests of offering our stakeholders the most up-to-date and relevant information, this report also includes a discussion of our expected deliverables for 2013, all of which aim to strengthen our market position and underline our “one-stop-shop” promise. In this report, you will find everything you need to know about Burando Maritime Services: who we are, what we do, what we have achieved in 2012, and how we plan to grow as the most reliable partner to the maritime industry – now and in the future. Arjan Donatz Chief Support Officer

BMS Sustainability Report 2012

About us Sustainability “Burando Maritime Services continued to build on our commitment to corporate social responsibility (CSR) – a commitment which long predates the CSR hype that has emerged in recent years. For Burando, behaving responsibly towards society, our stakeholders and the environment has always been a central tenet of our philosophy, and we look forward to investing further in our community as our business continues to grow.” Andreas Drenthen, CEO

BMS Sustainability Report 2012

Who we are Burando Maritime Services is the leading service provider in the maritime industry. Thanks to our up-to-date knowledge and experience in the sector and our highly customer-oriented way of doing business, we have become a trusted partner to inland and maritime shipping, and oil & gas companies. Burando Maritime Services has a team of roughly 250 enthusiastic and highly trained employees working around the clock to provide proactive and result-driven solutions to its customers – and we continuously strive to further improve our services and products. Our main objective, in everything we do, is to achieve maximum customer satisfaction. Our purpose Burando Maritime Services is a “one-stop-shop” service provider for the maritime industry. Our concept is simple yet unique: in the many harbours we operate in across the world, our combinations of products and services guarantee our inland and maritime shipping customers the most reliable, convenient, and comfortable visit possible.

BMS Sustainability Report 2012

Our organisation in brief Burando Maritime Services is made up of two divisions: Burando Oil Logistics (BOL) and Burando Maritime Logistics (BML).

Burando Oil Logistics Burando Oil Logistics handles the transportation and storage of heavy fuel products, and the supply and trade of marine gasoil products. The companies within the group are: Service Terminal Rotterdam (STR) With its unique location in the Botlek area, STR provides efficient and reliable maritime/transshipment services to ship owners, charterers, traders and port agents. In a joint venture with the Russian oil major Lukoil, STR operates a 240,000m3 fuel oil tank storage facility, which serves the ARA bunker market. FTS Hofftrans FTS Hofftrans guarantees its customers excellent services, flexible operations and timely delivery, thanks to its state-of-the-art double-hull bunker barge fleet, with a total capacity of over 80,000 MT. Trefoil With global gasoil trading and physical supply activities in the ARA region, Trefoil is your trusted gasoil supplier. Trefoil has a modern fleet of dedicated gasoil supply barges to guarantee smooth, flexible and on-time delivery.

Burando Maritime Logistics Burando Maritime Logistics offers vessels a unique “one-stop-shop” for a wide range of services through its subsidiaries. Ship Spares Logistics Ship Spares Logistics is the leading maritime logistic service provider in the ARA region. Our network of efficient warehouses, our fleet of modern road trucks and minivans, our four Crane Barges and our motivated and proactive employees ensure high-quality, reliable and on-time delivery of your (bonded) stores, provisions and spare parts – 24 hours a day, 7 days a week. Fendercare Benelux A joint venture between Burando Maritime Services and Fendercare Marine Solutions, Fendercare Benelux is the global leader in transshipments on behalf of oil majors, suppliers and traders. With Fendercare, Burando manages all your operational needs for fender and hose rental services. Burando Customs Services The independent customs service provider and broker Burando Customs Services offers the best customs solutions for all your logistic, administrative and fiscal challenges. Burando Rental Services Burando Rental Services provides various power packs and hydraulic-driven pumps. Our quick response team is available to both maritime and industrial clients 24/7 to offer advice or solve any liquid bulk cargo problems. Nature Group plc Nature Group, supported by full subsidiaries NISD and NESS, is the leading offshore waste collection and treatment service provider in the maritime industry. Nature Group plc reports its annual results separately (see www.ngrp.com).

BMS Sustainability Report 2012

Key Figures Hamburg

Our Locations Burando Maritime Services operates in: - Rotterdam, the Netherlands (head office) - Amsterdam, the Netherlands - Antwerp, Belgium - Hamburg, Germany.

Amsterdam

Workforce employed

112

BML 10.0% BOL 7.9% Absence rate 2012

Rotterdam As of December 2012, our workforce stood at 112 employees. In addition, we made use of the services of some 120 contracted staff on a regular and/or permanent basis.

Antwerpen

BMS Sustainability Report 2012

Our History

Our Fleet Phase 2 tank storage expansion at Service Terminal Rotterdam in operation

Acquisition of Trefoil Trading ISD and ESS shares sold to Nature Group plc, Burando becomes largest shareholder in Nature Group

2012

As of December 2012, we had 28 (16 owned and 12 chartered) inland tankers, vessels and/or (crane) barges in operation.

2010-2011 FTS HOFFTRANS

Start of new company, Burando Rental Services

2009 CRANE BARGE 2

Acquisition of Van Esch International & Ship Spares Logitics, merged into Ship Spares Logistics (SSL) Start of new company, Burando Customs Services

JV Fendercare Benelux founded (Fendercare Marine & Burando)

Service Terminal Rotterdam in operation Ecoscrub founded

2004

2003

2002

2001

2008

2007

2005

Rebuilding of Rotterdam Terminal as a Fuel/Oil Terminal

Burando moves to Service Terminal Rotterdam

Acquisition of Service Terminal Rotterdam and International Slop Disposal

Burando founded by merging FTS & Hofftrans

BMS Sustainability Report 2012

CEO’s Report Burando Maritime Services is a great company with a wealth of talent – and that is why,

Ship Spares Logistics (SSL) had the best year since its creation in 2008. With the acquisition of new projects, more than 10,000m2 of storage has been rented to serve our customers in Rotterdam. The plans for restyling our current warehouse and offices are currently being executed, and will hopefully be completed in 2013.

Burando Customs Services has increased the number of declarations by 25%, and is truly becoming the leading customs brokerage company for the Rotterdam fuel oil industry. With the design and construction of the Buncare computer program, Burando Customs Services has created a unique customs solution for its fuel oil trading customers.

despite the challenging and volatile economic environment, we were nonetheless able to improve our annual result in 2012. Our market position remains very good, and the Burando brand is becoming stronger by the day. In 2012, we also took our first steps outside the ARA region, starting activities in the port of Hamburg.

Burando Oil Logistics -

At the request of customers who are very satisfied with our services in the ARA region, FTS Hofftrans also started to operate barges in the ports of Hamburg and London. In order to accommodate the further growth, FTS/Hofftrans added 5 barges, some owned and some chartered, to its fleet: mts Iris, mts Zaria, mts Bonaire, mts Patricia and mts Zeeland. The expansion of tank capacity at Service Terminal Rotterdam (STR) was completed in March 2012. STR now has 240,000m3 of Fuel Oil storage capacity, resulting in a tripling of the terminal throughput to 500,000m3/month. The terminal’s services revenue also increased due to more board/board transhipments and nitrogen deliveries. The trading volumes of Trefoil kept growing in 2012 towards 30,000m3/month. In addition to the supply of gasoil products, Trefoil has also expanded its services to include fuel oil delivery for one international customer.

Burando Maritime Logistics -

Burando’s 22.5% shareholding in Nature Group (listed on the London Stock Exchange) was increased to 25%. It remains the largest single shareholder in the company. Nature Group is not included in this report; it has its own annual report and CSR report, which are available at www.ngrp.com BMS Sustainability Report 2012

- Burando Rental Services is still successfully testing its closed hose cleaning system, which can clean hoses without having a negative impact on the environment. This unique solution was designed and tested over the course of 2012 and we hope to start production in 2013. - Fendercare Benelux had a tough year in 2012. Until September, the number of ship-to-ship operations remained very low, but the last three months showed an incredible increase, which continued into 2013. Burando Maritime Services is a successful company that wants to share its success with the community. In 2012, the decision was made to donate a fixed percentage of our revenue to charity. In the coming years Burando will sponsor both the Florentina Foundation, supporting a primary and secondary school in Tanzania, and the Amyotrophic Lateral Sclerosis Foundation, supporting the search for a cure for this horrible disease. Besides the financial support provided by the company, Burando employees have also contributed their own time and energy to these projects. In April 2012, one group of employees visited Tanzania to help build a boarding house next to the Elisabeth Centre, a school at the foot of Kilimanjaro. The trip proved an unforgettable experience for all those involved. Employees have also been involved in fundraising activities for the ALS foundation, including the Amsterdam City Swim, where teams swam through the canals of Amsterdam. BMS Sustainability Report 2012

In addition, Burando supports several local communities and sporting clubs, and is the main sponsor of the â&#x20AC;&#x153;Burando Production Openâ&#x20AC;?. As part of this major car racing event, spread over eight weekends between April and October, a wide variety of cars within different divisions compete for the Burando Production Open Cup. For Burando, behaving responsibly towards society, our stakeholders and the environment have always been a central tenet of our philosophy, and we look forward to investing further in our community as our business continues to grow. June 2013

Andreas Drenthen Luc Braams CEO CEO

BMS Sustainability Report 2012

Policy Burando Maritime Services (BMS) is a one-stop-shop service provider for inland and maritime shipping, and oil & gas companies, ensuring its clients and partners a worry-free visit to any foreign or domestic harbour where BMS is active. BMS achieves this through a unique range of first-class products and services in the maritime service sector. These are delivered by: Burando Oil Logistics - FTS Hofftrans (FTS) - Service Terminal Rotterdam (STR) - Trefoil Trading (TRT) Burando Maritime Logistics - Fendercare Benelux (FCB) - Ship Spares Logistics (SSL) - Burando Rental Services (BRS) - Burando Customs Services (BCS) - International Slop Disposal (ISD) and EcoScrub Solutions (ESS) – subsidiaries of Nature Group plc. This full range of services ensures the efficient, effective and continuous improvement of the performance, comfort and enjoyment of interested parties (clients, purchasers, suppliers, authorities, investors, employees, etc.) with whom BMS has a relationship and seeks to collaborate. BMS is a solutions- and service-oriented company, characterised by a proactive and supportive mentality that fits our motto: we deliver what we promise.

BMS is aware of the impact it can have on its surroundings and its stakeholders, in terms of safety and the environment as well as image. In order to control this impact as much as possible, we have implemented a management system in line with internationally recognised standards. At the same time, we have set goals to ensure that risks or liabilities in the area of quality, the environment and safety, as well as internal operational procedures, are dealt with appropriately and efficiently and that they are continuously improved wherever possible. BMS considers that its responsibility goes beyond simple compliance with laws and regulations concerning the environment, safety and the prevention of (environmental) incidents, damage and oversights. BMS has made the individual, its clients and its community a central concern – but sustainability is also a priority. The company has therefore joined widely recognised programmes and collaborative sustainability efforts and/or signed relevant covenants. This enables us to introduce new technologies that contribute to the reduction of CO2 emissions and/or which help address other challenges in the quickly changing markets where BMS is – or will be – active. The management of BMS has learned from experience that a focus on these issues can contribute to the optimisation, the reputation and the continuity of Burando Maritime Services. May 2012 Andreas Drenthen Luc Braams CEO CEO

BMS naturally aims to continue its own development, while staying up to date on new developments and potential future services and products in both foreign and domestic markets. This will ensure that we can continue to provide optimal service for our stakeholders, perfect our one-stop-shop business model, and improve customer satisfaction. 24

BMS Sustainability Report 2012

Highlights

BMS Sustainability Report 2012

FTS Hofftrans, further fleet expansion achieved. New bunker barge Luana launched December 2012.

STR: â&#x20AC;&#x153;Phase 2â&#x20AC;? of the tank storage expansion at Service Terminal Rotterdam started operations, March 2012. Storage capacity expanded to 240,000m3

Ship Spares Logistics realised further growth in its logistics services to the oil & gas industry. An additional 4,000 m2 became available for dedicated handling and warehousing of offshore equipment.

Trefoil Trading moved to a new office in the second quarter of 2012 to underline and expose their continuous ambition.

BMS Sustainability Report 2012

Our Services Burando Oil Logistics

Trefoil Trading

Service Terminal Rotterdam (STR)

Trefoil Trading BV, founded in 1982, is a trusted provider of marine gasoil supply services and sustainable logistics in Europe’s leading bunker hubs. Together, our five high-tech double-hull MGO supply barges supply an average of over 350,000m3 of marine gasoil annually – with all deliveries in full compliance with the ISO 8217-2010 quality standards.

Uniquely located in the Botlek area, STR offers multiple jetties and quay facilities, including a fully utilised berth with a total quay length of over 450m. We provide a range of 24/7 solutions when transshipment, nitrogen or lay-by services are required: - Ship-to-ship (transshipment) and lay-by services. STR meets the increasing need of ship owners, charterers and port agents for reliable and efficient port services. Thanks to multiple jetties and its strategic location in the Rotterdam-Botlek area, STR can provide the logistic services to speed up the port turnaround time of your vessels. - Storage of heavy fuel oil products through its joint venture with Russian oil major Lukoil. Through its import, storage and export activities, STR serves the Antwerp-Rotterdam-Amsterdam (ARA) bunker market. STR has a total fuel oil storage capacity of 240,000m3 and, with our new ocean jetty, we are able to receive vessels with a maximum LOA of 270m. ISO 9001, ISO 14001 and ISPS certified, STR also offers nitrogen for purging cargo tanks and N2 blankets, tank cleaning and disposal services via our collection barges, and transfer hoses and fenders (Yokohama Type) on 24-hour stand-by. FTS Hofftrans Service and quality are the watchwords of FTS Hofftrans. We maintain the highest quality standards for our barges and crew through a program of stringent internal inspections and on-going training schemes. We are ISO 9001 and ISO 14001 certified, and fully compliant with EBIS requirements. In a reflection of our market leadership, we recently achieved our objective of having a 100% double-hull bunker fleet. We’re also ready for the future: by the time the new Sulphur Emissions Controlled Area (SECA) regulation came into force, FTS Hofftrans had already launched dedicated Low Sulphur barges in the ARA region. 28

BMS Sustainability Report 2012

Our experienced and well-trained operations and trading team fully understand the needs of our customers in terms of quality and logistic services, and based on long standing relationships with oil majors and local refineries, Trefoil supplies marine gasoil at highly competitive prices.

Burando Maritime Logistics Ship Spares Logistics (SSL) With more than four decades of experience, Ship Spares Logistics (SSL) can handle all your maritime logistical needs. SSL is the leading maritime logistics company in the ARA Region, serving primarily the Shipping, Oil & Gas and Petro Chemical industries. We provide reliable, on-time services – within your budget – 365 days a year. Our customers receive the very best personal service and attention, all via a single telephone line and one familiar customer service representative. Based in the ports of Rotterdam and Amsterdam, SSL combines excellent direct road and waterfront connections with bonded and free warehouses. Our warehouses allow for the consolidation of shipments from multiple suppliers, ensuring efficient onboard delivery and short- and long-term storage. We also boast four modern Crane Barges – the essential link for onboard delivery! SSL is ISO 9001 certified, and its Crane Barge 2 is certified by the Safety, Health and Environment Checklist Contractors (SCC) to work on tank terminal jetties and quays.

BMS Sustainability Report 2012

Fendercare Benelux

Burando Rental Services

Fendercare Benelux is a global provider of ship-to-ship transfer operations and related STS equipment to the inland and maritime shipping, and offshore industries.

Burando Rental Services offers rental equipment, solutions and expert advice for dealing with difficulties with liquid bulk cargoes â&#x20AC;&#x201C; 24 hours a day, 7 days a week. Our qualified mechanics and field technicians are ready to rent or operate a wide variety of pumps and power packs in order to minimise the down-time of our maritime and industrial customers in the event of:

We supervise ship-to-ship transfers in their entirety, and we can also provide individual components for your liquid bulk transfer via our rental service. Our multiple depots in the ports of Rotterdam and Amsterdam can supply the right equipment for STS transfer of crude oil, mineral (CPP and DPP), chemical and alcohol products at any time. All supplied equipment meets the highest standards as prescribed by the OCIMF and ISGOTT.

Emergency breakdowns

Onboard pump failures

New systems tests

Burando Customs Services

Accidental damages

Burando Customs Services is an independent customs consultant and broker. Thanks to our extensive experience, specialised expertise and in-house software development team, we offer a state-of-the-art, tailor-made customs handling system that complies with all Ecustoms requirements. Our key services include:

Short- and long-term rental periods

Repairs and maintenance.

In-bond transportation (T-1 documentation) and storage customs reporting

Inward and outward process relief

Simplified import and export clearance

Excise licences (AAD documentation)

Automated periodic declarations

AEO certified.

BMS Sustainability Report 2012

Our Achievements Delivering on our “one-stop-shop” promise. Despite the challenges of continued volatility in the ongoing global economic environment, 2012 saw performance improvements across the board for Burando Maritime Services. Each of our subsidiaries maintained or strengthened their positions in comparison with the previous financial year – and a number of new and interesting opportunities were explored. This section reports on our achievements in 2012, illustrating our growth and underlining our strategic vision.

“Investing in communities: Our commitment to society”

Two teams of 4 swimmers each from International Slop Disposal joined over 1100 participants in taking the plunge for ALS, swimming the Amstel river and the canals of Amsterdam city to raise money for the cause. Burando is also actively committed to broader social initiatives. In 2012, for example, we sponsored the Florentina Foundation in their bid to support an education centre for local Masai children in Kolila Village, Tanzania, and actively participated in building a new multi-functional community house, also in Tanzania. For further information see www.florentinafoundation.org. In the future, we aim to further strengthen our community involvement activities in a more targeted way, along themes that relate to our core activities, competences and interests. We are also investigating cooperative agreements with other organisations, such as knowledge institutions and NGOs, to see how we can best add value to society. Earth Hour

People Community involvement Burando recognises that it is an influential part of, and has a responsibility towards, the communities in which it operates. As a consequence, we make it a key aspect of our mission to be actively and positively involved in these communities. In 2012, Burando donated both time and money to numerous kinds of local and charitable initiatives. A particular highlight was our support for the Dutch ALS Foundation. ALS stands for Amyotrophic Lateral Sclerosis, an incurable nerve and muscle disease. During the course of this dreadful disease, all of the muscles in the body progressively fail, until the heart itself stops. An average patient has only three years to live after being diagnosed with ALS. To support the work of the Dutch ALS Foundation, which provides assistance to ALS sufferers and strives to increase public understanding of the disease, Burando participated in the first inaugural Amsterdam City Swim on September 9, 2012.

BMS Sustainability Report 2012

In 2012, Burando showed its continued commitment to the environment by again teaming up with WWF to promote Earth Hour in the Port of Rotterdam. The entire inland navigation fleet, together with the offices of our fellow company Nature Group, switched off all of their non-essential lighting for an hour on March 31, 2012. The initiative to reduce the impact of global warming is in full accordance with Burando’s sustainability policy. Thinking Green Burando was an active participant and a financial sponsor of the Thinking Green Conference & Exhibition in Gibraltar, which took place in October 2012. The conference aim was to promote the concept of a green economy that sustains and advances economic, environmental and social wellbeing. The audience was encouraged to look beyond simple Gross Domestic Product as the sole measure of progress and consider broader issues – environmental, social and political – when setting business strategies.

BMS Sustainability Report 2012

Labour practice As of December 2012, we employed 112 people. Approximately 9% of our workforce is female, and approximately 11.5 % of our employees work part-time. Collective health and pension agreements are available to all our employees.

2012

Toolbox meetings Fendercare Toolbox meetings SSL Safety & Operations meetings STRFendercare Security training STR

2011 2012

Burando Oil Logistics (BOL) 0

Burando Maritime Logistics (BML)

Training sessions and meetings (#) 2011

0,00%

Education and training 2,00%

4,00%

6,00%

8,00%

10,00%

12,00%

Absenteeism 2011 - 2012

Burando Maritime Services insists upon qualified and well-trained employees. In 2012, the relevant subsidiaries in both BML and BOL therefore focused on awareness and expansion of staff competences through training, courses and field instructions.

Health & Safety Our Health & Safety activities to date include creating a single centralised safety, health and welfare service for all Burando Maritime Services subsidiaries, enabling employees to undergo preventive medical tests, and facilitating participation in company-supported fitness programmes. To underline the importance of health and safety, we have conducted periodic first aid, emergency response and security-related training and refresher courses, and toolbox meetings where applicable. In addition, we have increased the number of fire training/ emergency response drills. On-board training sessions and drills are held weekly by FTS Hofftrans.

BMS Sustainability Report 2012

Sustainability and Business Assurance Business Assurance In mid-2012, it was decided to strengthen and further improve Burandoâ&#x20AC;&#x2122;s management system. All improvements will remain focused, however, on ensuring continuous and consistent Business Assurance for all processes and locations (fleet and ashore), and compliance with all requirements laid down in internationally recognized standards. The system is defined by strong legal compliance, risk management, and group policies and guidelines. This also applies to our commitment to corporate sustainability. Management System Certification Where applicable and relevant, our management system certification was maintained in 2012. All management system certificates (ISO 9001, ISO 14001 and SCC), however, were effectively transferred from DNV Business Assurance to Bureau Veritas. More certification details are provided in the double-page illustrations in this report. SCC certificate (Safety Checklist Contractors) The SCC certificate (Safety Checklist Contractors) verifies that companies and their employees have a satisfactory safety management system in place. The petrochemical industry was one of the first industrial sectors to require a certificate from its sub-contractors as proof of effective Environmental, Health & Safety management. SSL and BRS, both of which employ a multitude of diverse sub-contractors in safety-critical industrial sectors, implemented all the necessary policies, procedures and work instructions many years ago, and have been fully SCC-certified ever since.

BMS Sustainability Report 2012

Burando Maritime Services (BMS) Service Terminal Rotterdam

0 0

Burando Maritime Services

The annual ISPS compliance audit, conducted by the authorised body, reported no major ISPS compliance issues again in 2012. The annual audit in accordance with the Seveso regulation (BRZO) reported this no major or minor issues. Appropriate actions have been taken on recommendations made.

We sponsored several international initiatives like ALS foundation, Thinking Green and donated a substantial amount of money at home base initiatives and promoted/actively participated at local cycling and football events. Community involvement

Major Hazard Prevention (BRZO) and Port Security (ISPS)

SERVICE SHIP TO SHIP PURGING LAY-BY

SHIP SPARES LOGISTICS CUSTOMS

N O

S M O K I N G

CRANE BARGE 2

FTS HOFFTRANS

N O

S M O K I N G

Burando Maritime Services

In 2012 we achieved a 100% success rate for training and education of relevant staff. Fendercare and SSL held regular toolbox meetings in accordance with SCC, and also conducted periodical drills and provided training to ensure compliance with ISPS and ISO 14001.

Our ISO 9001 and 14001 management system retained certification by our external Certification Body. Two of our entities (Fendercare and SSL) are also certified in accordance with the Safety, Health and Environment Checklist Contractors (SCC). These certifications emphasis our commitment to the welfare of our people, customers and community.

Education, training, and exercises (drills)

Management System Certification

Burando Maritime Services (BMS) Burando Maritime Services Major/lethal injuries Environmental incidents Damages/claims Non-compliance (permits) Fines & periodic penalties

0 2 8 6 6

| | | | |

- - -6 - -6

4 6 15 6 3

| | | | |

+4 +6 +2 +4 +3

Incidents and non compliance

SERVICE SHIP TO SHIP PURGING LAY-BY

SHIP SPARES LOGISTICS CUSTOMS CRANE BARGE 2

FTS HOFFTRANS

Burando Maritime Services Electricity [kWh] Natural Gas [m3] Oil [ltr] 3 Water [m ] Gasoil [m3] CO2 emissions [ton] Solid waste [kg] Hazardous waste (fluid) [m3] Consumptions and emissions

N O

2.386.785 2.969.335 5.206 21.305 3.409 22.538 94.508 1.118

| +4% | +18% | +36% | +31% | +6% | -4% | -1% | -18%

S M O K I N G

N O

S M O K I N G

Safety & Legal Compliance BMS gives continuous attention to preventing incidents and conforming to all legal requirements, and in 2012 we stabilised/maintained our safety performance and legal compliance. Any and all incidents are registered, investigated and documented, and we are very serious about learning all we can from such events. We also keep track of any claims, damages, fines and penalties. For the purposes of clear and accurate reporting and evaluation of incidents, we have defined six categories: Category 1: Unsafe situations / Near misses Category 2a: Material damage (human failure) Category 2b: Material damage (technical failure) Category 3a: Small incident without absence Category 3b: Medium incident with absence Category 3c: Major incident/lethal injuries Category 4a: Environmental incident (direct aspect) Category 4b: Environmental incident (indirect aspect – contractor) Category 5: Non-compliance (procedures and work instructions) Category 6: Non-compliance (legal and other requirements) Figures concerning incidents and non-conformities within both BML and BOL are given in the double-page illustrations. It is important to bear in mind that increases in reported incidents – especially “near misses” – are often related to the improvement of monitoring and reporting systems rather than to any increase in the actual frequency of such incidents. We continue to investigate and introduce further corrective and preventative measures as appropriate. These measures will not only improve the reliability of our operations, but, most importantly, they will help to create a safe and healthy environment for our employees, customers, suppliers and communities. 44

BMS Sustainability Report 2012

Legal Framework

Green Award

Both Service Terminal Rotterdam (STR) and Ship Spares Logistics (SSL) hold up-to-date environmental permits. Due to the extension of our storage capacity at the terminal a new environmental permit came into force per May 2012. Our comprehensive management system in accordance with ISO 14001 is in place to oversee compliance with all of the legal, regulatory and other requirements that apply to Burando Maritime Services and our activities. Regular inspections and tours of our premises are also conducted by our own staff, external auditors and regulatory officials in order to ensure full and proper compliance.

As a reflection of our sustainability ambitions FTS Hofftrans joins continued its commitment in 2012 to the Green Award programme.

Due to the nature of our activities at the Service Terminal we are also required to comply with Seveso-II regulations and the International Ship and Port facility Security code (ISPS). In 2012, inspections and auditing reported just observations to improve further. No major/ minor findings were issued. EBIS In addition to an ISO 14001 management system, FTS Hofftrans and Nature Group have both subscribed to the European Barge Inspection Scheme (EBIS). Established on 1 July 1998, EBIS has been developed by oil and chemical companies as part of their commitment to improving the safety of tanker barging operations. Barging is an important means of distributing oil and chemical products within Europe, and well-run barges play an important part in reducing the risk of accidents or pollution. The main aim of EBIS is to exchange objective safety and quality data on tank barges, of which an EBIS member company may consider the use or the reception at its terminal.

To date, the following self-owned ships are Green Awarded (FTS Hofftrans): -

Luana (2012)

Zaria (2012)

Marilene

Isabella

Leonore

Ariane

Laurentien

In addition, Green Award ships are entitled to various financial and non-financial benefits. Green Award certified ships are extra clean and extra safe. By rewarding high safety and environmental standards in shipping, the Green Award programme makes above-standard ship operation more attractive economically. The Green Award certification scheme is open to oil tankers, chemical tankers and dry bulk carriers from 20,000 DWT and upwards, as well as LNG carriers and inland navigation vessels.

The whole of the FTS Hofftrans fleet, including the new Luana and Zaria, meets the requirements laid down by EBIS, and is subject to periodical inspections carried out both internally and by independent EBIS inspectors.

BMS Sustainability Report 2012

Operations Burando Oil Logistics Service Terminal Rotterdam In March 2012, we commissioned the building and installation of five new onshore tanks (TP200), which became fully operational in May 2012. The five new storage tanks have an additional capacity of 175,000 MT and a maximum height of 32 metres, and are truly a spectacular new landmark for the Rotterdam Botlek area. STRâ&#x20AC;&#x2122;s onshore heavy-fuel storage activities (which began in mid-2005) improved their steady and constant rate, as demonstrated by an increased throughput/terminal ratio of approximately 18. In the graph and the double-page illustration below you will find the operational highlights of the Service Terminal Rotterdam. The supply of nitrogen to Lay-by and STS vessels is also outlined in the double-page illustration, which shows that demand for and supply of nitrogen has been steadily increasing since 2008. Taking this into consideration, in 2012 we commenced delivery of nitrogen to visiting ships by a pipeline (instead of by bulk tank). Delivery by pipeline decreases safety risks and is more environmentally friendly.

BMS Sustainability Report 201

BMS Sustainability Report 2012

Burando Oil Logistics (BOL) Trefoil Trading

FTS Hofftrans (100% owned) #Number of bunker barges 12 #Fuel oil supply barges 10 #Dedicated MGO supply barges 2 Fleet capacity (mt) 35.770 Average fleet age (years) 4

351.833

cbm Marine Gasoil delivered (3820 deliveries by barge)

Transshipment

SERVICE SHIP TO SHIP PURGING LAY-BY

SHIP SPARES LOGISTICS CUSTOMS

N O

S M O K I N G

CRANE BARGE 2

FTS HOFFTRANS

Service Terminal Rotterdam

N O

S M O K I N G

Service Terminal Rotterdam

Export barges 1105 | +87% Import vessels 252 | +106% Oil imported (m3x1.000) 3.289 | +80% Oil exported (m3x1.000) 3.559 | +93%

# Lay by vessels # STS vessels Transhipped (MTx1.000) Nitrogen supplied (m3x1.000)

Storage facility

Maritime Services

261 166 775 885

| -5% | -14% | -8% | +3%

FTS Hofftrans In 2012, in addition to successfully maintaining our operations with double-hull barges, we expanded our fleet with two owned barges, the Luana and the Zaria. The Zaria joined the Eloise in the port of Hamburg, where it can contribute to strengthening our business in Germany. Today, FTS Hofftrans owns and operates more than 24 such barges, the largest of which has a capacity of 6,745 tonnes. In 2012, FTS Hofftrans transported over 8,500,000 MTin total, raising our market share in the Rotterdam harbour to over 30%. # Number of Bunker barges # Fuel oil supply barges # Dedicated MGO supply barges Fleet capacity (mt) Average fleet age (years)

14 13 1 52.058 4

Trefoil Trading 2012 was a dynamic year, with many improvements implemented. We doubled the annual MGO supplies in actual barge deliveries and total volume, and expanded our service portfolio with an exclusive HFO and MGO supply contract on behalf of SK Energy Int. In addition, we moved to a new office and switched to dedicated Trefoil barges, based on long-term contracts. After contracting the Laurentien in 2011, both Isabella and Quadrans III service the dedicated Trefoil fleet. In 2012 we successfully delivered approx. 352,000 m3 to our customers.

# MGO Bunker barges Bunker barge capacity Average supply (p/Month) Supplied product / Specs.

BMS Sustainability Report 2012

3 6.000 mton 35.000 mton 0.860/0.890 DMA

BMS Sustainability Report 2012

Burando Maritime Logistics

Ship Spares Logistics

Highlights and details of 2012 performances are presented in the following double-page illustration. Fendercare Benelux Due to slight growth in demand for chemical hoses in 2012, Fendercare maintained and slightly increased their services to provide dedicated hoses for specific cargos anywhere, at any time. Meanwhile, stabilised demand for sensitive and high-quality products for the chemical trade has proven the value and effectiveness of the 2011 review of Fendercareâ&#x20AC;&#x2122;s procedures regarding hose cleaning and mobilisation prior to delivery. The cargo hose cleaning methods implemented in 2011 are still fundamental to meeting and maintaining the highest standards of quality and safety.

In continuation of trends from the previous year, 2012 saw a further increase in road transports and barge deliveries for Ship Spares Logistics. This second year of success demonstrates the added value of opening the office and warehouse facilities in Amsterdam in 2010. Burando Rental Services In 2012, Burando Rental Services provided consultancy and solutions to a range of maritime and industrial clients experiencing difficulties with liquid bulk cargoes. Thanks to our 24/7 availability and our team of qualified mechanics and field technicians, we were able to ] significantly reduce our clientsâ&#x20AC;&#x2122; down-time in cases of emergency breakdown, onboard pump failures and new system tests. Results for 2012 were stable in comparison to our 2011 performance. Burando Customs Services

Total STS operations Chemicals with att. MM Biodiesel

2012

Gasoline / Naphta

In 2012, Burando Customs Services continued as an independent entity providing solutions for customs handling and specific logistic, administrative and fiscal issues. Besides clearing customs, we also supported clients with innovative concepts for customs licensing and complex logistical issues. In 2012, we achieved the following.

2011 2011 2012

Gasoil Allowed consignor (T1 documents)

3242

3811

Allowed consignee (T1 documents)

6257

6782

Import declarations

1020

1898

Export declarations

1989

2610

Excise declarations

Fuel oil 0

STS operations

BMS Sustainability Report 2012

Burando Maritime Logistics (BML) Fendercare Benelux Fenders Hoses Total

Burando Rental Services 54 | +8% 142 | +4% 250 | -3%

873

Pumping projects

Cleaning hoses orders

Activities

Rental orders

SERVICE SHIP TO SHIP PURGING LAY-BY

SHIP SPARES LOGISTICS CUSTOMS

N O

CRANE BARGE 2

FTS HOFFTRANS

Ship Spares Logistics N O

By Cranebarge By Road

Fendercare Benelux

S M O K I N G

2.061 | +31% 4.218 | +19%

Total operations

Deliveries by cranebarge

6000

Deliveries by road

4000 2000

2012 2011

Total operations (#) Share bio diesel (#) Share fuel oil (#) 0

2011

43 | -24%

Ship-to-Ship operations

Deliveries

2012

S M O K I N G

Future developments Fleet expansion FTS Hofftrans and Trefoil will all expand their fleets in 2013 with newly built vessels. These vessels will be built according to the latest developments in safety and environmental protection technology. Update: Our newest bunker, the Luana, was christened in December 2012 and started operations in January 2013.

Marine Terminal Management and Self Assessment (MTMSA) / Tanker Management and Self Assessment (TMSA) The (M)TMSA programme encourages operators to assess their safety management systems against listed requirements / key performance indicators, and provides best practice guidance. It can help to create opportunities for improvement in those areas which are relevant for operational excellence, and is an effective way to minimise the reoccurrence of non-conformities. Both Service Terminal Rotterdam and FTS Hofftrans decided to use this programme to assess the effectiveness of their management systems for berth operations, ship/shore interface and operations of vessels. The first assessments for both STR and FTS Hofftrans are planned in 2013, and the follow-up will last till 2014. Update: The MTMSA and TMSA assessments were conducted in March 2013.

Following developments on liquefied natural gas (LNG) (unchanged since 2011) The upcoming tightening of the emission regulations for the North Sea SECA (Sulphur Emission Control Area) in 2015 will undoubtedly heavily influence the marine bunker business in the ARA region. Further introduction of NOx reductions for new ships in 2016 has forced the maritime industry to look into different compliance options. Ship owners are considering the installation of scrubbers (to combat sulphur emissions) combined with selective catalytic reduction systems (to reduce NOx), in addition to switching to gasoil (an expensive option from an operational perspective) and introducing LNG as an energy source to fuel ships.

BMS Sustainability Report 2012

Final words Accuracy and materiality Our systems allow us to measure and monitor many aspects of our operational performance in detail. Where such measurements are not yet possible, we have used recognised, publically available conversion factors for presenting data calculations. Conversion factors have been used to calculate our carbon footprint, our electricity, water and paper consumption, and the waste produced in our offices. To avoid under-estimation of these figures, we have, on this occasion, added 10% to our calculated figures. All measured and/or calculated non-financial data presented in this report are unaudited. Transparency Burando’s 2012 Sustainability Report aims to provide a full and transparent picture of the company’s performance for the year. In drafting the Annual Report 2012 the following guidelines and standards have been considered. This has all been completed in accordance with the principles of transparency: -

GRI Sustainable Reporting guidelines

Greenhouse Gases Protocol

EcoChain (www.ecochain.com) for calculating our carbon footprint. EcoChain’s calculations are based on Defra/DECC’s guidelines and greenhouse gas conversion factors for company reporting

In addition, this report provides relevant data in accordance with the Transportation of Dangerous Goods Act (ADN).

BMS Sustainability Report 2012

Annexes

BMS Sustainability Report 2012

Annex A: Facts & Figures

2) Emissions and consumption

1) Safety and compliance Burando Maritime Logistics - BML Incidents and non - conformance

2011

2012

2011

2012

(2,165,861 kWh/1,772,125 m3 =)

(2,302,478 kWh/1,827,797 m3 =)

(2,386,785 kWh/3,559,000 m3 =)

1.22 kWh/m3

1.26 kWh/m3

0.67 kWh/m3

Electricity consumption SSL3

201,762 kWh

278,366 kWh

308,589 kWh

Electricity consumption ratio1

Category 1 - Near miss

Category 2 - Small, without absence

Category 3 - Medium, without absence

Category 4 - Major/Lethal injuries

Category 5a - Environmental incidents own activities

Category 5b - Environmental incidents activities by other parties

Damages

Gas consumption1

1,348,470 m3

1,104,595 m3

2,963,046 m3

2010

2011

2012

Gas consumption3

9,335 m3

4,251 m3

6,289 m3

Category 1 - Near miss

Oil (heating consumption SSL)

5,523 lt

3,302 lt

5,206 lt

Category 2 - Small, without absence

Category 3 - Medium, without absence

Category 4 - Major/Lethal injuries

Category 5a - Environmental incidents own activities

Category 5b - Environmental incidents activities by other parties

Odour nuisance

Noise pollution

Non - compliance

Damages - behavioural

Damages - technical

Burando Oil Logistics - BOL Incidents and non - conformance

2010

Energy and utility consumption

BMS Sustainability Report 2012

(defined as: electricity consumption per exported ton)

1Consumption by STR 2 Consumption by FTS Hofftrans 3 Consumption by SSL (Râ&#x20AC;&#x2122;dam, Aâ&#x20AC;&#x2122;dam)

Water consumption1

20,589 m3

15,679 m3

21,034 m3

Water consumption3

144 m3

141 m3

271 m3

Gasoil consumption ratio2 (defined as: gasoil consumption per transported ton)

(5.763 m3/9.087.290 MT=)

(6.076 m3/7.975.061 MT=)

(6.680 m3/ 8.503.019 MT=)

0.63 ltr/MT

0.76 ltr/MT

0.79 ltr/MT

610 m3

323 m3

339 m3

Gasoil consumption BML

BMS Sustainability Report 2012

3) Carbon footprint Process related emissions in 2012 Burando Maritime Services

CO2 (Ton)

SO2 eq (Ton)

C2H4 (smog) (KG)

34,812

60.4

1623

4) Quantity transshipped per ADN class ADN Class

2010

2011

2012

675,800 MT

513,333 MT

445,498 MT

6,1

75,568 MT

53,672 MT

60,523 MT

57,976 MT

28,693 MT

53,042 MT

2,140 MT

Other

237,931 MT

242,270 MT

222,241 MT

Total

1,047,275 MT

839,696 MT

781,306 MT

Reported by J. N. Verhoef (XBA0004657), Safety Advisor Transportation of Dangerous Goods.

BMS Sustainability Report 2012

www.burando.eu Burando Maritime Services Torontostraat 20 3197 KN Botlek-RT portnumber 4540 info@burando.eu