Wallem True North Magazine Issue 2 2013

The way forward

Issue 2 2013

The Way Forward for Wallem

In This Issue:

Wallem Opens First Hub of Expertise in Singapore

Asian Challenge 2013 First port calls in South Africa

Delivering Maritime Solutions www.wallem.com

Message from the Managing Director

It is my pleasure to introduce a revamped edition of our magazine, True North, which has been renamed to better reflect what Wallem is about today. True North – The Way Forward embodies the company’s true sense of purpose and direction as we move forward in today’s constantly-changing maritime industry.

True North – The Way Forward also better reflects Wallem’s aim to evolve from a company that many used to view as a slowmoving, elephant-like organisation to a more limber, albeit large and powerful, whale-like organisation – one that can surprise with big, powerful jumps out of the water.

I’m happy to announce that our evolution is well under way. Over the past 12 months, we have introduced a number of new offerings to our customers; have evolved how we position ourselves in the maritime and transport industry; and have introduced tools and resources to help employees to be more efficient and deliver better services to our customers.

We have also recently launched a new website that better reflects our complete set of services.

We deliver diversified maritime solutions and no company in our industry is able to match the breadth and depth of services we provide. This is a strong position and a point of difference that distinguishes us from our competitors.

True North The Way Forward

Importantly, the changes that transpire through our new website are far more than just cosmetic. They reflect a change in how all of us should approach our job on a daily basis and how we portray ourselves both internally among colleagues and externally with clients and partners. We provide solutions to our customers that can be customised and delivered separately or as a package.

And no initiative better reflects what we can do for our customers than our new office in Singapore – our first hub of expertise to provide virtually any maritime solution our customers may need. As we look to establish strategic maritime locations around the globe, this approach will help us to provide more services, closer to where our customers are and where they want to do business.

I invite all our staff to embody Wallem’s new way forward in your daily work. The company has made a true commitment to meeting our clients, employees and seafarers’ needs and we look forward to working with you to lead the way forward in the industry.

Regards,

Simon Doughty Group Managing Director

Wallem celebrates 110th anniversary in style The Group started from a small office in Shanghai and now spans 18 countries.

Starting out as a brokerage company, we now Deliver Maritime Solutions – and provide a diverse and unrivalled range of solutions to our customers.

We started the year’s festivities by celebrating this auspicious occasion with an internal birthday party on Friday 19 April – staff around the world and crew celebrated the occasion with drinks, snacks and lots of cake!

COSCO WALLEM Celebrates Wallem’s 110th Anniversary It is with great excitement that COSCO WALLEM celebrated Wallem’s 110th anniversary on 19 April. Captain Deepak Honawar was in the office to visit Managing Director Han Jianguo and joined in the celebration with cake and champagne.

Capt. Honawar delivered a speech on the Wallem Way Forward, the need for all groups to work as a united team and the company’s new promise: Delivering Maritime Solutions. MD Mr. Han expressed his hopes that Wallem would sustain its growth and continue to achieve great success alongside COSCO WALLEM.

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Cover Story

The Way Forward for Wallem In mid-2012, our management faced what might have seemed to be an insurmountable challenge: To prosper at a time when most of the world’s economies were just limping along as they slowly recovered from the toughest financial crisis since America’s Great Depression.

It is at that point in time that the Group’s collective management team comprised of almost 80 individuals, under the leadership of Group Managing Director Simon Doughty, challenged ourselves to substantially grow the profits of the Group by the 2014/15 fiscal year.

The challenge was significant, as the tough economic environment was anticipated to continue for years to come. Success in meeting

True North The Way Forward

this challenge is critical to the continued success of the Group.

With that in mind, the Group developed a three-year plan aimed at finding ways to grow and become more competitive. Management came up with a plan that provided a clear way forward for all of Wallem’s teams and served as a guide to help decision-makers move forward against measurable goals.

Better Positioning in the Marketplace One of the first initiatives undertaken as part of the Group’s new plan was to conduct a major study to help Wallem better understand how our customers, partners and employees perceived the Group.

Some of research findings were positive, including the fact that there was high awareness of the Group in the maritime and transport industry and that we were generally viewed as a respected leader in ship management. However, the study also revealed that the Group was largely known as a “ship management company”, even though Wallem provides a very broad set of maritime solutions. Most stakeholders had only a cursory awareness of Wallem’s complete set of services and most clients only used one area of the Group’s business.

3. People: The reputation our people have for delivering quality services with the highest level of professionalism, and for going the extra mile, is unsurpassed.

4. Progressive: Our story has been and will continue to be one of constant development and growth.

Developing and implementing new technologies and solutions for our customers drives us forward as a leader in our industry and being progressive and innovative must be our constant aspiration.

Hub of Expertise The company’s new positioning, while important, can only be successful if we help employees to work together more closely across business units and teams.

That’s why we also undertook to create new offices that would serve as hubs of expertise, housing all of the company’s services under one roof.

These valuable findings helped guide the management team in repositioning the Group in a way that more accurately reflects our full array of maritime solutions.

We developed a new brand story that clearly outlined what values Wallem holds dear and what attributes we want to be recognised for.

By merging all services within a single location, we can be more aware of the services provided by other business units; we can work more easily together to package, cross-market and cross-sell solutions; and we can deliver better value for our customers through packaged or stand-alone solutions.

Our brand story comprises four key attributes that are important to us and differentiate us from our competitors:

That’s why, earlier this year, we opened our new Singapore office, which became Wallem’s first hub of expertise. Singapore was selected for its strategic location, which provides access to clients with diverse maritime needs and serves as a cross-road for the north/south and east/west trades in Asia.

1. Heritage: Our long history and rich heritage in the maritime industry is universally recognised and acknowledged. The Wallem reputation for being trusted and reliable in our business remains one of the most important elements of our brand story.

2. Diversified: Wallem is the most diversified services organisation in our industry today. We can deliver on just about every maritime need that our customers, or potential customers, might have.

Capt. Deepak Honawar was appointed Singapore Wallem Group Managing Director and heads this important new office. He has responsibility for all of Wallem’s associated Group companies in Singapore, including: Wallem Shipping Singapore; and Wallem Ship Management Singapore. He is also accountable, as Wallem’s representative, for the joint venture with Nanjing Tanker Corporation, NW Shipmanagement.

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Feature

WallemPeople for Better Employee Performance One of the main attributes that Wallem is recognised for in the industry is the quality of our people. People will always be the most important part of Wallem and ensuring that we are well-trained, happy and able to pursue opportunities to grow within the Group are fundamental to our success.

That’s why we have recently launched WallemPeople, a talent management system that helps our people to be more informed, better connected and able to grow professionally to build their career in the longterm.

WallemPeople will help better align our goals, abilities and desires with opportunities to grow within the Group. The system has been designed to create transparency, visibility of performers and rewards for people who deliver good results.

WallemPeople has multiple modules to help manage our performance as employees: 1. Goal management: Create goals and align them with your manager’s expectations.

Monitor and update the status of goals at any time to ensure that our accomplishments are tracked. Goals can be modified as business needs evolve and our staff progress.

2. Performance management: Use an online performance appraisal form in collaboration with managers to discuss and appraise performance, celebrate achievements and identify learning needs. Access and refer to performance forms at any time.

3. Employee profiles: Use WallemPeople as a self-service portal to update credentials and include any new expertise or experiences. Special skills, languages and career aspirations can be added as well, making it possible for senior management to find the most appropriate employees to fill positions internally.

WallemPeople is an exciting tool that will help to closely align our performance with ambitions, so go ahead and update your profile, goals and expertise! WallemPeople is the first step in taking our careers to the next level.

True North The Way Forward

Three-Year Strategy At Work Over the past 12 months, we have undertaken a number of initiatives that illustrate how we are putting the three-year strategy to work. Through our marine buying services, we deliver procurement expertise to a wider base of clients. We offer turnkey procurement for owners of vessels that are not technically managed by Wallem, creating value through lower costs and more efficient processes. We now offer our procurement expertise to new clients, increasing our revenues whilst improving pricing for our ship owners.

delivering value to ship owners through a better and more practical focus on safety requirements and minimising vessel delays, detentions and unnecessary costs.

We have also started offering contract catering services, which enables us to deliver healthier food options for our seafarers through increased control on food quality and menu variety. Contract catering also leads to cost savings for owners through better inventory management, reduced waste and lower administration costs.

Since we have launched our three-year strategy, the Group has seen increased collaboration among business units, between markets and across teams. It is very pleasing to see that our new approach is bearing fruit and we encourage everyone to continue to work in that direction.

Additionally, we launched lifeboat servicing and testing to provide quality lifeboat inspections and repairs,

In March we launched our new website, www.wallem.com, which reflects our broad set of maritime solutions and makes it easier for partners or potential customers to learn about the full array of services we deliver.

If we continue moving forward as we have over the past 12 months, there is no doubt that we will prosper and grow in spite of the challenges, and emerge stronger than before the economic crisis began.

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news

New Office in Singapore As part of our “Way Forward� strategy, we will be combining all our businesses in Singapore into one team operating from a single new location. Wallem Singapore has moved to new premises and this office will house Ship Agency, Ship Management and NW Ship Management. Our new address is The Wallem Group 991 Alexandra Road #02-04/05 Singapore 119964 Tel +65 6271 2611 Fax +65 6271 9569

Wallem Europe We are pleased to announce that Wallem has taken over 100% ownership of our German operation and the existing team will now become Wallem Europe. The new organisation will be responsible for ship management and all Group activities in Europe as we are looking to actively promote and deliver our wide range of maritime solutions in the region. We expect to move into new offices in Hamburg as soon as suitable premises are located.

True North The Way Forward

New South Africa Offices Provide Springboard to Key Markets Wallem has recently established two offices in South Africa, a key maritime location for us. The new offices enable us to meet client demand, provide a wide array of services and to give the Group a footprint in an important strategic location.

The offices are located in Durban and Cape Town, where we will provide ship agency and logistics services for all ports in South Africa.

The offices will also handle client business for other markets in Africa, including Mozambique, Namibia and other destinations in southern parts of the Indian Ocean.

The offices will be run by veteran maritime professionals Nils Warner and Iain Leckie, who have rich experience in both the industry and the region. They have both been working in the South African ship agency business and maritime industry for more than 30 years, forming one of the most experienced teams in the country.

Both South Africa offices have already had their first port calls since they were established in May. The first vessel in Durban to fly the Wallem flag was Hai Kuo, a project cargo / general cargo discharger for our Chinese clients. The first vessel in Cape Town was John Lethbridge. Both port stays went well and clients were happy with our services. Well done to all who were involved!

Good Start for Procurement in 2013 Wallem’s Marine Buying Services (MBS) business is off to a strong start in 2013 and has recently won a contract that extends the Group’s sourcing and procurement business beyond the Wallem fleet.

In a bid to further bolster our offerings to clients, Wallem launched MBS last year, a company that offers procurement services to third party vessels that are not technically managed by Wallem. The new contract has us handling all procurement matters for a fleet of ten ships for a German ship owner. In addition to the ten ships, Wallem will be managing the owner’s eight new buildings.

Great job team MBS!

Wallem Fleet Officers Meeting A Wallem Fleet Officers Meeting (WFOM) was held in March in Chennai and in New Delhi, India. 156 officers attended these two meetings. The themes for this year’s WFOMs were Accountability and Mentoring.

Presentations were prepared on these topics and we saw enthusiastic response from our officers. We asked the officers to take back their experiences and share these with their colleagues on board Wallem vessels.

The next sets of WFOMs in India are being planned for Kolkata and Mumbai in September/October 2013. In

China over 100 officers attended the Qingdao WFOM in April, where we had an LTI specialist from China to talk about his injury experience while working on board.

Breakbulk China in Shanghai A team from the Ship Agency and Ship Broking departments, representing the Indo China, Taiwan, Hong Kong and China offices, attended the Breakbulk China Exhibition in Shanghai in March. Over 700 visitors came through the Wallem stand, showing interest in a variety of solutions offered by the company.

Breakbulk China is the largest conference in Asia addressing the needs of traditional breakbulk and project cargo logisticians. This year, it featured more than 150 exhibitors and almost 4600 attendees, and it was a great opportunity to meet current and potential customers.

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news

Cambodia Logistics The PetroVietnam seismic project has commenced and our team in Cambodia is busy with the logistics arrangements for the equipment to be moved to site in Kampong

Celebrity Visitor at New Hong Kong Cruise Terminal

True North The Way Forward

Thom. Wallem Cambodia is the appointed contractor for all logistics arrangements, as well as providing vehicle rentals, manpower and bore-hole drilling for this project.

Wallem Cambodia has also been appointed by EFCO Malaysia to handle the shipments for the Sumitomo - Mitsui Neak Lueong Bridge Project for all shipments arriving from Vancouver, Canada.

Our Hong Kong Ship Agency team handled the MV Celebrity Millennium on 17 March, the first cruise ship to berth at the new Hong Kong Cruise Terminal on a trial basis. The new state of the art terminal is situated at the old Kai Tak Airport.

We handled 2,200 guests for this turnaround call and as the terminal is not yet officially opened, a large marquee was set up on the quayside for luggage claim and Customs clearance.

People

Internet on Board Wallem Ship Management (WSM) has been searching for the right and most responsible way to introduce Internet on board our technically managed vessels. In March the optimum solution was in place and we have now started to introduce crew Internet on board.

Wallem recognises that to be able to compete in recruiting and maintaining the best seafarers in today’s market, it is essential to offer an intelligent and attractive employment package and offering Internet on board is a very important part of this.

Already 11 ships have downloaded the software to access the new service. In collaboration with vessel owners, we plan to have the majority of our crew on technically managed ships accessing the Internet by Christmas 2013.

Charles Eddie Cricket Premier League During their long laden 48-day passage from Jose, Venezuela to Zhoushan, China, the crew on MT Charles Eddie organised their own cricket tournament: Charles Eddie Cricket Premier League. The tournament was a great success and resulted in enhanced performance of entire crew on board.

Heavy-lift in Myanmar As the heavy lift experts in Yangon, our Myanmar office handled the discharge of two Gottwald MHC’s quaycranes for the terminal development at MIP Terminal.

Each unit weighed around 306 tonnes and the whole operation was completed successfully in one day.

Standing from left: Capt. Mondal, MM Pereira and MM Subhash Seating from left: OS Pankaj, OS Ganeshu, 3/O Anup, Tr OS Pinkle and TNO Sumit.

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People

Nick Tonkinson to Retire in 2013

Wallem Strengthens Management Team Paul Moore

Paul Moore has joined the Hong Kong office as the Group’s new Finance Director. He replaces Nick Tonkinson, who retires this year from Wallem after 14 years with the Group. Nick has been a big part of the success of Wallem during his time with us and we thank him for his contribution. We wish him and his wife Angela all the best for their retirement. Also a warm welcome to Paul!

Wallem recently made two major additions to its leadership team: Ray McNamara is the Group’s new Managing Director of Ship Management and Andrew Stephens will join as COO in August. Andrew will ensure that the Group operates smoothly in providing solutions to our wide range of customers, while Ray will be responsible for the oversight and strategic planning of all ship management activities globally.

Welcome on board, Ray and Andrew Stephens Ray McNamara Andrew!

Appointments In connection with Wallem’s expertise hub approach and the appointment of Capt. Deepak Honawar as Singapore Wallem Group Managing Director, the Group has made four additional appointments:

Capt. Deepak Honawar

• Frankie Tan, General Manager, assumes the leadership role of Wallem Shipping Singapore. Frankie has led the Singapore Agency team since October 2012 and will support Ashley Mawby (Managing Director, Wallem Ship Agencies) in helping Wallem Ship Agencies to widen its client base within the Southeast Asia region.

• Agnes Yue assumes the role of Singapore Wallem Finance Controller.

Agnes, who joined Wallem in 2006, has been a pillar of stability and has now been promoted to the Singapore Wallem Group team.

• Jamie Wrightson was promoted to the role of Regional Sales Manager Singapore. Jamie joined the Wallem Shanghai team in 2009 as Commercial Manager for China. In this new role, he will work closely with Nigel Moore (General Manager, Business Development) and will sit in the Singapore Wallem Group team.

• Praveen Shukla now serves as Fleet Manager for Wallem Ship Management Singapore. Praveen joined Wallem in 2007, and in his new role will lead the operations and development of the Wallem Ship Management Singapore fleet.

True North The Way Forward

Social

Germany Office in Charity Dragon Boat Race On 1 June staff from our Germany office congregated with their families and friends in Itzehoe, 50km north of Hamburg, for a dragon boat race, as part of the different events organised in “Itzehoe Week” to raise money for local charities.

Our team, the Wallem Warriors, was a mixed team with most of the members never having set foot in a dragon boat before. Despite the inexperience, the team managed to get good results in the heat races and came second in the B final.

The day was full of fun, and thoroughly enjoyed by all who took part, be it on the boat or those cheering on the shore. Well done to the team!

Wallem Football Team Reaches Semi-final Congratulations to our Wallem Hong Kong team that played in the PB Soccer Sixes on 31 May. They reached the semi-final of the cup game after beating the host Pacific Basin on penalties. Unfortunately we didn’t get to the finals but it was a fantastic result to get this far.

Well done!

Food Delivery Programme in Philippines – Paul Gresham Each year Wallem provides the bulk of the sponsorship for AWAM gift giving events. One weekend in May, the staff in Wallem Clark worked with the team from AWAM to prepare about 250 food parcels to feed a grand total of 700 people. Our staff worked with AWAM to select the food distribution location. A few days before the event, an intrepid few headed out to speak with the village chiefs to allocate one ticket per child and to ensure an orderly event.

It was important for us to work closely with AWAM to ensure that 100% of the money went toward the kids and their families. All efforts are entirely voluntary and 39 staff from the office in Clark joined to help. It was just amazing!

After an hour’s journey in a large jeepney with no air conditioning on a tremendously hot day, we delivered the first batch of parcels to the families, who are mostly Aeta people, who often suffer from social exclusion, exploitation and discrimination.

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Social

Asian Challenge 2013 – Climbing Mount Kinabalu and Raising USD17,600 for the Sailors’ Society When it comes to fun trips and an opportunity to raise money for the Sailors’ Society, Team Wallem never hesitates.

Two teams from Wallem this year participated in the Asian Challenge, climbing Southeast Asia’s highest mountain and raising thousands of US dollars for the Sailors’ Society to provide a lifeline for seafarers and their families.

True North The Way Forward

Both challenges proved to be difficult but thanks to great team efforts, were met with great success. The teams raised a total of USD 17,600 (USD 8,800 per team) for the Sailors’ Society and both reached the top of the mountain.

To raise the required funds, both teams received help from colleagues. They also sold handmade items at events and “pestered” colleagues, clients, suppliers, former colleagues and friends to donate money for the good cause.

Team members: Joanna Sawh, Maarten Van den Broeck, Senthamil Krishnaswamy, Tamara Chen, Wiebke Schuett, Winnie Liu

The Challenge But raising money was only part of the challenge. At the same time, the teams had to work hard on their physical training, as several sources warned that the climb that was awaiting them wouldn’t be a “walk in the park”. Various gym and hiking sessions prepared the teams and soon they set off for Mount Kinabalu and its impressive 4,100 metre height.

On 4 April, the teams embarked on their adventure with a feeling of pride and excitement. On day one, the Sailors’ Society treated the teams to lunch and after a 3-hour bus ride in the rain, arrived at the starting point of the mountain climb. The teams spent the night at an idyllic resort, where they prepared for the hike with a hot pot dinner and some beers.

The next morning, the teams got up in high spirits, as the rain had made way for a view of the mountain’s peak, 8.5 km away. The first part of the hike was six km.

Both Wallem teams did tremendously well and reached base camp after only about four hours of hiking.

After a short night on very squeaky bunk beds, the alarm clock went at 2:30 a.m. and the final climb to the peak started at 3 a.m. Armed with warm clothing and head torches, the teams climbed up the mountain guided by shimmering stars and moonlight. Getting closer to the top, the sun started to peek behind the clouds and displaying an amazing scenery of colours.

Numerous pictures were taken but none can convey the amazing views of that morning. Around 6 a.m., both Wallem teams reached the top and group photos were taken.

Many thanks to all of those who participated, donated and worked hard to accomplish the fundraising and for making Wallem proud by raising USD 17,600 toward the total of USD 750,000 raised for the Sailors’ Society.

This is an experience that will never be forgotten.

Many thanks to these partners for their support:

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Headquarters (Hong Kong) T +852 2876 8888 E group@wallem.com Ship Management & technical services T +852 2876 8200 E wsmhk@wallem.com Ship Agencies & logistics T +852 2876 8500 E wshk@wallem.com Commercial Services & Ship Broking T +852 2876 8800 E wcshk@wallem.com Innovative Solutions T +852 2876 8050 E wishk@wallem.com

Delivering Maritime Solutions www.wallem.com