12
PAGE 1 TMILLAN / OCTOBER 2011 CONTENTS / TMILLAN / 6 th EDITION / OCTOBER 2011 Dear Colleagues, The first quarter of the TMILL group also ended with the same momentum as that of the previous year with all divisions clocking reasonable turnovers and profits. Here I must make a special mention of ISL, which did more than a million tonne of cargo and their profit was also a record figure for the quarter ended June 2011. Freight Forwarding India was not far behind in achieving record turnover and profit and the ports division has commenced its O&M activities in Dhamra. TMILL occupies a very critical position in the value chain of Tata Steel’s project imports. We must, therefore make every effort to live up to the expectations of the customers so that the tight schedules for the current expansion programme are fully met. The second quarter has thrown up quite a few challenges with Haldia port restricting TMILL’s activities (it is a victim of its own success) and our harbour mobile crane developing a major breakdown. I am quite certain that we have the necessary adaptability and flexibility to deal with these challenges and draw lessons of the benefits of pro-activity rather than reactivity. To integrate all activities of the HR domain, we are implementing HRIS through the TCS BPO platform. The project aims to digitize and add value to all HR processes at TMILL group and covers all companies under the TMILL group banner. The group will shortly be engaging with you on various aspects of the project. It is once again that time of the year, when we shall be joined by the TBEM assessors to try & re-evaluate our journey towards business excellence. We are in the third year of our application & the cycle is drawing to a close. TMILL Group is in the early stages of obtaining results from the deployed approaches. It is thereby imperative now that we aim higher & graduate to the next band. This is a collective target & I would urge you take up the initiative as an individual & also as a part of a greater process. I am hopeful that each individual will make a positive contribution & with every “delta” improvement, we will be that much closer to our target. I take this opportunity of wishing you & your families a very happy and fun-filled festive season which is round the corner. Dibyendu Bose Page 1 > Message from the MD ........................................... Page 2 > Raichak Meet ........................................... Page 3 > News from SBU’s ISL Dhamra TKM ........................................... Page 4 > From the HR Desk ........................................... Page 6 > CSR ........................................... Page 7 > Safety ........................................... Page 7 > Employee Corner Page: 7 - A Visit to Meghalaya: Shilong & Sohra (Cherapunjee) “Untouched Beauty” by Tridib Sircar - TKM, Global, Bhubaneshwar Page: 9 - Visionary Leadership: A Key to Green Sustainable Shipping Future by Ashish Baghel ........................................... Page 12 > Congratulations ........................................... Page 12 > New Joinees

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Page 1: TMILLAN Newsletter VI

PAGE 1TMILLAN / OCTOBER 2011

CONTENTS

/ TMILLAN / 6th EDITION / OCTOBER 2011

Dear Colleagues,

The first quarter of the TMILL group also ended with the same momentum as that of the previous year with all divisions clocking reasonable turnovers and profits. Here I must make a special mention of ISL, which did more than a million tonne of cargo and

their profit was also a record figure for the quarter ended June 2011. Freight Forwarding India was not far behind in achieving record turnover and profit and the ports division has commenced its O&M activities in Dhamra.

TMILL occupies a very critical position in the value chain of Tata Steel’s project imports. We must, therefore make every effort to live up to the expectations of the customers so that the tight schedules for the current expansion programme are fully met.

The second quarter has thrown up quite a few challenges with Haldia port restricting TMILL’s activities (it is a victim of its own success) and our harbour mobile crane developing a major breakdown. I am quite certain that we have the necessary adaptability and flexibility to deal with these challenges and draw lessons of the benefits of pro-activity rather than reactivity.

To integrate all activities of the HR domain, we are implementing HRIS through the TCS BPO platform. The project aims to digitize and add value to all HR processes at TMILL group and covers all companies under the TMILL group banner. The group will shortly be engaging with you on various aspects of the project.

It is once again that time of the year, when we shall be joined by the TBEM assessors to try & re-evaluate our journey towards business excellence. We are in the third year of our application & the cycle is drawing to a close. TMILL Group is in the early stages of obtaining results from the deployed approaches. It is thereby imperative now that we aim higher & graduate to the next band. This is a collective target & I would urge you take up the initiative as an individual & also as a part of a greater process. I am hopeful that each individual will make a positive contribution & with every “delta” improvement, we will be that much closer to our target.

I take this opportunity of wishing you & your families a very happy and fun-filled festive season which is round the corner.

Dibyendu Bose

Page 1 > Message from the MD...........................................Page 2 > Raichak Meet...........................................Page 3 > News from SBU’s

ISLDhamraTKM

...........................................Page 4 > From the HR Desk...........................................Page 6 > CSR...........................................Page 7 > Safety...........................................Page 7 > Employee Corner

Page: 7 - A Visit to Meghalaya: Shilong &

Sohra (Cherapunjee) “Untouched Beauty” by

Tridib Sircar - TKM, Global, Bhubaneshwar

Page: 9 - Visionary Leadership: A Key to Green

Sustainable Shipping Future by Ashish Baghel

...........................................Page 12 > Congratulations...........................................Page 12 > New Joinees

Page 2: TMILLAN Newsletter VI

PAGE 2TMILLAN / OCTOBER 2011

RAICHAK MEET

TMILL organized a TBEM Action Planning Session from the 3rd to 5th of May, 2011 at Ffort Raichak near Kolkata. The session was chaired by the Managing Director, Mr. Dibyendu Bose. The entire senior leadership team as well as a cross-section of officers from all SBUs participated in the workshop. Course was conducted by TQMS.

The objective of the workshop was to discuss the way forward in TBEM journey of TMILL, action planning and implementation of the action points derived from last year’s feedback of the Application.

• The entire congregation was divided into groups based on Key processes as per TBEM Categories – with the Head of the Function as the Category Champion,

• At least 1 or 2 people from every function was present in each team,

• Each team used their knowledge of having read all the documents as inputs to the team & TBEM criteria manual, Feedback report and the Enterprise Process Model Document provided as inputs for the workshop,

• 3 to 4 hours was given to the groups to discuss and work on templates for presentation in standard formats,

• Detailed discussion ensued on adequacy of action plans for achieving the key objectives.

A consolidated Action Plan summary was drawn up

at the end of the session detailing Key actions to be taken, Process Owners and the Review frequencies for both the Process Owner and the Managing Director for each of the plans. A sign off on the same was taken from all Process Owners and SBU heads. The session came to a close with the Managing Director emphasizing the need to continually focus on trailing the path of Quality while improving our processes and services.

The objective of the workshop was to discuss

the way forward in TBEM journey of TMILL,

action planning and implementation of the

action points derived from last year’s feedback of the

Application.

Page 3: TMILLAN Newsletter VI

PAGE 3TMILLAN / OCTOBER 2011

NEWS FROM SBU’S

ISL

This quarter saw ISL carrying wheat for the first time from Karachi to Abu Dhabi. Record “First Quarter” Cargo volume of 1.26 million tones has been achieved. ISL has started ‘Liner’ and ‘Break-bulk’ desk with focus on cargoes like Steel, Log and Project cargoes. It has also managed to fix the first liner cargo from China to India.

It was an honour to have Mr. Partha Sengupta in the ISL office in Dubai. He met all the employees there and exchanged ideas on the Shipping industry with them. Also, ISL was lucky to be able to celebrate the 50th birthday of the Chairman during his visit.

PORTS

The Dhamra Port, which became commercially operational in May, has received its first cape size vessel with the arrival of MV. CHINA STEEL RESPONSIBILITY from Australia. The vessel carried around 1.46 lakh tonnes of coal for M/s. Tata Steel Limited. The ship has a capacity of 1,80,000 DWT (dead weight tonnage) and its length is around 290 metres. This is the largest vessel that Orissa, as well as neighbouring West Bengal, have received so far. The ship, which berthed at the Dhamra Port jetty on 24th of July 2011, came at a draft of 15.8 mtr.

TMILL, as the O & M operator has successfully completed the vessel in 98 hours. Apart from handling the vessel TMILL Group has contributed in the area of vessel agency and providing Tug services to bring/sail the vessel from anchorage to berth and vice-versa. This is the first cape-vessel handled on account of Tata Steel India by TMILL.

Dhamra Port welcomes its first cape

TKM

TKM has opened a new office in Frankfurt that will handle airfreight not only ex Germany, but also from some of the neighbouring countries.

TKM earlier had an office in Frankfurt till 2003 from where over 100 million tonnes per month of air cargo to destinations in India was handled. Frankfurt remains the single largest gateway airfreight origin for Indian air imports. Most of TKM’s big group customers like Tata Steel, Tata Motors, and TELCON have significant air imports ex Frankfurt. This will form the basis on which TKM will grow weekly consolidation service to all major Indian destination including Delhi, Mumbai, Kolkata, Bangalore and Chennai.

Mr Tobias Hillenbrand has joined the Frankfurt office as Manager – Air Freight. Tobais grew up in Stuttgart and was also educated there. He is a trained forwarder with over 15 years of work experience having worked for Panalpina in Germany and Luxembourg .Tobias is a keen American football lover and plays the game.

Ms. Mariana Kovaceviv has joined the Frankfurt office as Executive – Air Freight. Mariana has Croatian roots but she was born and brought up in Frankfurt where she also studied. She has over 13 years of work experience having worked with air cargo handling agent LUG , Cathy Pacific ( Cargo) , Average Cargo (Cargo airline) and National Air Cargo ( Forwarders), all based in Frankfurt, Germany .Mariana is an avid reader and is interested in world history.

We wish both of them good luck and look forward to a fruitful association with TKM.

Tobias Hillenbrand & Mariana Kovaceviv

Page 4: TMILLAN Newsletter VI

PAGE 4TMILLAN / OCTOBER 2011

FROM THE HR DESK

HRISA Brief Overview

A Human Resource Information System (HRIS) refers to the systems and processes at the intersection between Human Resource Management (HRM) and information technology (IT) by using SAP. Simply put, the HRIS is an effective method in the management of HR information, the end objective being to make available the right information to the right person at the right time.

The HRIS project, ‘HRO Platform BPO Services’ at TMILL is being implemented by Tata Consultancy Services Limited to provide end-to-end managed HR services. The scope of the project covers approximately 400 employees in India and approximately 50 employees outside India. The pricing for the same is approximately INR 600/- for the first 500 employees & a fee of INR 535/- needs to be paid for every additional employee thereafter. Presently, contractual employees of the organization are also being brought within the purview of the project at a cost of INR. 35.00 per contractual employee.

The project is spread over a period of five years and the Roll out period is divided into four broad phases:

DIS

COVE

RY

PHASE

DESIGN PH

ASE

DEPLOY PHASE

DEVEL

OP

PH

ASE

1. Discovery Phase: This can roughly be categorized as the initiation phase where the team from TCS along with Subject Matter Experts from TMILL gain an understanding of the company’s structure and requirements. The sharing of the project plan along with key milestones is also undertaken at this stage. The Discovery Phase was kicked –off at the HO on the 13th of July, 2011 and has been completed.

2. Design Phase: Post the Discovery phase, the project moves into a detailed data gathering of the business requirements. The final Business Blueprint documents comprising the requirement data and the system requirements were also signed off during this period. The Design Phase of the project is scheduled to end by October 2011.

3. Develop Phase: At this stage the first practical application of the project will be made by executing User- Acceptance Tests on specific samples which has to be provided by TMILL to check the efficacy of the newly configured system. The same is slated for the months of November 2011 and December 2011.

4. Deploy Phase: The final stage in the HRIS project, the Deploy phase would involve parallel run of certain modules, ‘Train the Trainer’ activities for people to get accustomed with the new system. The ‘Go-Live’ of the project is slated to be on the 9th of January, 2012.

Simply put, the HRIS is an effective method in the management

of HR information, the end objective being to

make available the right information to the right person at the right time.

Page 5: TMILLAN Newsletter VI

PAGE 5TMILLAN / OCTOBER 2011

Other salient features of the HRIS project are as follows:

• All activities and processes related to workforce administration, payroll, time and attendance, compensation and performance management will be handled through the HRIS using:

1. Employee Self-Service (ESS) Portal: Every employee of the organization would have a unique ID and password through which the employee can log into the system and access information related to his/her payroll, leave approvals, family details, etc.

2. Management Self-Service (MSS) Portal: Managers within the organization would be given a unique ID and password in addition to ESS wherein he/she can access information and approve decisions with respect to his reportees.

The portals aim to provide a one-stop solution where employees, managers and HR contact points (known as HR SPOCS) would be able to carry out and monitor HR processes.

The successful implementation of HRIS can assure several benefits to the company:

• Given the expansion of business activities, there is a need to standardize all HR processes. Easy data maintenance, cost cutting, simplification of operations and timely and accurate decision

All activities and processes related to workforce

administration, payroll, time and attendance, compensation and

performance management will be handled through

the HRIS...

making are some of the most likely benefits of the HRIS.

• HRIS will serve as a one point entry for employees and managers to access key information and execute business processes.

• Streamlined Personnel Administration processes for all employee life-cycle events (New Hires, promotions, transfers, separation, etc.)

• Real time access to HR/Payroll information

• Integrated Workflows in all HR areas

• Access to HR Policies online

Having an HRIS in place will ensure that data and information within the company is system specific rather than being person-specific.

The challenge now is to ensure the smooth transition from the existing system to the new one through effective change management by building awareness and ensuring the need for change amongst the employees. This will be achieved through training workshops, open discussion forums and adequate demonstrations given to users.

But most importantly, the key to the success of the HRIS project is going to be an open mind and the willingness to accept changes in the existing system.

FOR CLARIFICATIONS / DETAILS ON HRIS CONTACT

MALINI SENGUPTA

9874631113

[email protected]

Page 6: TMILLAN Newsletter VI

PAGE 6TMILLAN / OCTOBER 2011

CSR

Child In Need Institute (CINI)

Around 6000 children die every day in India; one child every fifteen seconds. Most of these deaths are preventable.

CINI helps mothers and children in India break free from the cycle of poverty. It reaches out across all levels of Indian society by going from door to door in the villages and slums as well as talking to locally elected representatives and influencing public policy. Adopting a multi- layered, rights based approach, CINI works towards sustainable improvement in nutrition, healthcare and education while trying to protect children whose lives are blighted by poverty.

Like last year, this year also TMILL is happy to support the cause of the “Adopt a Mother and save her Child”. This programme covers identifying the need of pregnant women within 12 weeks of pregnancy and supporting them with health and nutrition care till the first two years of the new born child’s life.

TMILL is happy to be associated with the first woman from Jharkhand in her quest to scale Mount Everest.

Ms Premlata Agarwal becomes the first woman from Jharkhand and the oldest climber from India at the age of 45 years to reach the Summit. Ms. Agarwal belongs to a conservative Marwari family. A mother of two grown up daughters, she embodies the success of our goal of “Making Sports a way of life.” She was initiated into adventure through the Women’s Fitness Centre at the JRD Tata Sports Complex and has since then been a serious mountaineer.

TKM sponsors Drift Racing team for transport of their vehicle for Formulae SAE,UK

The Drift Racing Team of National Institute of

Technology, Jamshedpur has been successful in holding the Indian flag high as they recently participated in the Formula student 2011 event held at Silverstone international Racing track at London, United Kingdom.The Event organized by the World renowned Institution of Mechanical Engineers(IMechE) was held from 13th to 17th July 2011. This was a spectacular event, which saw a participation of 133 international teams from 36 different countries. From India a total of 4 teams were selected on application procedure namely IIT Kharagpur, IIT Delhi, Thapar University and NIT Jamshedpur.

The Drift racing team performed very well in the event taking into account that it was one amongst only 6 first year teams to participate in the event out of all 133 teams.

The team finished among top 5 teams nominated for the Airbus Sponsored Best Teamwork award and also happened to be the only Asian team to be short listed for the same. Rank 5 also was the highest rank achieved by an Indian team at the event.

The entire logistics chain of sending the car to Silverstone from Kolkata and its return was not only arranged but also partly sponsored by TKM.

Page 7: TMILLAN Newsletter VI

PAGE 7TMILLAN / OCTOBER 2011

SAFETY EMPLOYEE CORNER

TMILL Group recently introduced Safety Rewards and Recognition Scheme to encourage its employees to adopt safe practices at work and hence to create an environment of safety in the Group. It covers all officers, associates (unionised and non-unionised) as well as contractual employees working for the Group companies.

Mr. Pravin Saraf received the first Safety Reward from Mr. D.K.Nanda, Safety Coordinator for the TMILL Group. He received a reward of INR 200/- for submission of a Safety Observation.

TMILL Group recently introduced Safety

Rewards and Recognition Scheme to encourage its employees to adopt safe practices at work

and hence to create an environment of safety in

the Group.

A Visit to Meghalaya(Shilong & Sohra - Cherapunjee)

“Untouched Beauty”

By Tridib Sircar (TKM, Global, Bhubaneshwar)

There seems to be no intrinsic connection between the North-east and my existence as I have been born in the plains of Orissa, in Cuttack on the banks of river Mahanadi. But I have always been a natural lover of the beauty of Nature and travelling in the greenery of hills and mountains has always been my passion from childhood.

Recently I planned my annual leave purposefully and took a short trip to Meghalaya with a brief itinerary ~ to explore the capital town of Shillong and Sohra. Quite expectedly, we couldn’t miss out Cherapunjee, once the world’s wettest place. I was left mesmerised after visiting Shillong and Cherapunjee. Our journey began early on 26th April from Guwahati as we reached Paltan Bazaar. Hiring a cab from Guwahati can cost between INR. 1,000 and INR. 1,500. Else one can share a cab for anything between Rs. 140 (non-AC cabs) and Rs. 200 (AC cabs). We veered past one of the busiest and shockingly polluted highways in the North-east connecting Guwahati to Shillong – with uncountable trucks plying the one –lane thoroughfare. A comfortable journey of three hours takes one to the state of Meghalaya with a brief stopover at Nangphu. There are some roadside dhabas serving breakfast and lunch. If, however, one is fond of pickles, this is the place to be; from mango to bamboo shoot pickles, it’s all available here. A quick lunch here and our cab resumed the second part of our journey to Shillong.

Waiting eagerly, we finally veered past the spot I had yearned to see – Barapani Lake. Originally known as Umiam Lake, located in Ri Bhoi district, it is widely known as Barapani, and this is the largest artificial lake in the state. It is surrounded by sylvan hills and wrapped in the beauty of an assortment of green Khasi-pines and azure blue skies. Barapani is situated just 15 kms from Shillong, on the Guwahati-Shillong National Highway, and developed upon the reservoir of the Umiam Hydro Electric Project. For the adventurous, there is a Water Sports Complex that provides a choice of row-boats, paddle-boats, cruise boats, sailing-boats, water-scooters and speed -boats. This is a very popular place for picnic, fishing

Page 8: TMILLAN Newsletter VI

PAGE 8TMILLAN / OCTOBER 2011

and water-sports. Besides, the Lum Nehru Park is a highly popular picnic spot.

It was well past noon when we reached the meandering road on the outskirts of Shillong. As planned travellers we had booked our accommodation well in advance. We were staying at one of the most reputed and picturesque hotels of the North-east ~ “Pinewood Hotel”. Located away from the heart of the town, it boasts of a cosy ambience. The flooring is wooden and the lounge is spacious with photographs of mountains of the North-east displayed on the walls. The hotel is a unit of Meghalaya Tourism Development Corporation Ltd. and the rooms stand as individual cottages. All the rooms have inbuilt chimneys and modern amenities. After a hot shower and a quick cup of refreshing tea, we stepped on the busy streets of the Police Bazaar. On offer was an array of roadside shops for street-smart shoppers as well as swanky malls, specialising in handicraft items. We decided to explore Shillong further on the third day as we decided to visit Cherapunjee the next day.

We had set aside INR. 1,500 for the cab fare . The package included an incredible sightseeing experience in Meghalaya (also known as the Scotland of the East). In the next four hours we saw the Nokhalikhai Falls, Seven Sister Falls, Eco Park, Mawsmai Cave and Ramakrishna Mission. The distance was about 55 kms from Shillong and once we entered the village of Cherapunjee, thick fog engulfed our cab during the journey through the winding hilly roads. Even a 10-foot visibility was a far cry. With clouds gathering over our heads, we walked towards the Nokhalikhai Falls. As we made our way towards the thick expanse of fog, we discovered to our utter displeasure and shock, a thick blanket of fog covering the entire hill overlooking Nokhalikhai Falls. All we could hear was the distant cry of the waterfalls falling over a hundred feet. “This is a lean tourist season. The peak season is from October to February”, said the Khasi lady owner of a Hotel and handicraft shop located next to the falls.

The Khasi tribal community is women centric and gender sensitive. According to the Khasi tradition, the youngest girl of the family does not go away once she is married away. Instead, the groom comes and settles with the bride’s family. Gita is based in New Delhi and has come to her parent’s house on a vacation. She has three sisters and all are engaged in the family

business. “How do you earn your living in such difficult climate?”, we asked. “We don’t face much difficulty. The flow of tourists from the North-east, the rest of the country and abroad is good enough to sustain our business. There is also a steady sale of handicraft items” , she confidently replied.

Next on our agenda was the Eco Park, which is the source of the Seven Sister Falls. The entire park is an undulating landscape with lush verdant grass and flowers and a stream running across. The “charming” fog accompanied us. The park was established by the Meghalaya government in the plateau and there is an abundance of several hybrid and indigenous orchids in the Green House donated by Shillong Agri-Horticulture Society. The park offers a breathtaking view of the plains of Sylhet in neighbouring Bangaldesh which is hard to miss. After visiting the “Khoh Ramhah” – a table hillock which resembles a “Siva-Lingam” and

“Mawsmai Caves” (natural Caves where 150 meter below ground level one can see the beautiful Stalactites and Stalagmites formed naturally by rainwater) it was time for lunch and then the journey back to Shillong. Being the district head-quarters of East Khasi Hills district, Shillong is located at an altitude of 1,496 meters above sea level. It has a good climate throughout the year. The capital city has been the seat of the government since the consolidation of the British administration in this part of India. Shillong is also the headquarters of

the North Eastern Council, The Eastern Air Command, the Assam Regimental Centre, the North Eastern Hill University, Martin Luther Christian University. A bench of Guwahati High Court also functions from Shillong. The city is also the regional head quarters of Power Grid for north-eastern region. NEIGRIHMS, the first and only post graduate medical institute in the North-eastern and third in the country was established in Shillong.

Our return journey started with a view of the Shillong Golf Course. Developed in 1898, as a nine-hole course, it was later converted to 18 holes in 1924 by Captain Jackson and CK Rhodes. It is the third oldest golf course in India and was surveyed in 1933. After the Shillong Cathedral Church, we visited the highest peak in town ~ Shillong Peak. The view from the top will leave one speechless. Next we had to descend to the “Elephant Falls”. Tourists can also get photographed in traditional Khasi attire for just Rs. 50.

Page 9: TMILLAN Newsletter VI

PAGE 9TMILLAN / OCTOBER 2011

Visionary LeadershipA Key to Green Sustainable

Shipping Future

By: Ashish Baghel

Shipping plays a critical role in the global economy. More than one lakh commercial ships transport 90% of global trade. IMO Secretary-General, Mr Efthimios Mitropoulos rightly said that, “Without the shipping industry, half of the world would freeze and the other half would starve.” Shipping is a measuring device for world trade, and it has seen record expansion in the past two decades. Ton-miles of cargo have doubled between 1990 and 2008. The industry’s vision for future has changed from SAFETY approach by the development of SOLAS in 1914, to the SUSTAINABLE approach a century later. Various global players have incorporated sustainable approach into their core business activities and aim to achieve the same throughout their supply chains. Strong leadership will help shipping industry to develop innovative ideas with long term perspective taking into account social and environmental obligations.

Both within and outside shipping industry various leaders have started building up fortunes with sustainable approach in their minds. GE made revolutionary move by developing more than 80 new sustainable products under the ‘ecomagination’ banner after foreseeing customer demands for energy efficient products which increased the revenue of the company by USD 17 billions. Maersk pioneered the concept of ‘slow steaming’ in 2007 and booked cost savings of USD 300 million with a 7% reduction in CO2 emissions. Today Slow steaming has become a new industry standard wherein half of the global container fleet is now slow steaming. This innovation will result in an annual CO2 reduction of about 10 mn MT.

Few of the pioneering moves by some of the industry leaders have given significant impact to achieve sustainable shipping and carbon friendly environment in future:

E-E-E ships

Rendition of the Triple E-Class

Triple-E ships, designed by DSME for Maersk, will be the world largest container ships. Triple E, which stands for economy of scale, energy efficiency and environmentally improved, will consume 50% less fuel and CO per container moved than the industry average. The hull of these vessels is designed for lower speeds, and the energy-efficient engine is combined with a waste-heat recovery system that uses exhaust gas to produce extra energy that contributes to the propulsion of the ship. This vessel being a masterpiece of sustainable concept will come with a ‘cradle-to cradle passport’, which means that vessel is designed to deliver more 90% of recyclability. This concept will greatly improve the value of materials and their reusability for future vessels. Maersk Line with their sustainable approach has a vision for 100% recyclable ships in future.

Various global players have incorporated sustainable approach into their core business activities and

aim to achieve the same throughout their supply

chains.

Page 10: TMILLAN Newsletter VI

PAGE 10TMILLAN / OCTOBER 2011

Virtual arrival

The standard shipping approach is to proceed at full CP speed (full RPM) and wait at discharge port i.e. regardless of known delays at port. The new approach which is now changing the way commercial shipping works is “Virtual arrival” system, which is similar to KANBAN or “just in time” approach. For example in manufacturing industries or say TATA motors, we reduce huge inventory keeping costs by adopting JIT system with suppliers/vendors and reducing overall lead time, similarly in virtual arrival system applying JIT results in lesser fuel consumption and hence less carbon/sulphur emissions and it also eases congestion and enhances safety.

Virtual Arrival is all about managing time and managing speed. Virtual arrival is about identifying delays at discharging/loading ports, then managing the vessel’s arrival time at that port through well managed passage speed, resulting in reduced emissions.

How it works: A new CP clause known as ‘virtual arrival clause’ is being adopted wherein If it is clear, that at the contractual speed vessel will be kept waiting at the discharge port, the voyage counter parties can trigger the ‘virtual arrival clause’. The ship then steams at a slower speed to arrive ‘just in time’. This radically reduces bunker consumption and emissions. Virtual arrival then calculates the time at which the vessel would have arrived without intervention, and calculates the resulting demurrage which would have occurred, as if the vessel had arrived at this time. Post voyage, any savings in bunker costs and in turn carbon credits are shared between the counter parties. Ship owner saves on bunker and loses on demurrage whereas charterer saves on demurrage i.e. Laytime is calculated basis virtual arrival at earlier time and benefit of bunker saving by the shipowner is transferred to the charterer as a reduction in demurrage making a win-win situation for both counter parties. More than that, as the emissions are reduced drastically, our environment

is actually a winner and thanks to all of us, which makes the approach more sustainable.

This approach is already adopted in tanker industry by international bodies’ such as OCIMF & INTERTANKO. British Petroleum (BP) has initiated and promoted this concept throughout its fleet. It is estimated that the application of this approach to whole of tanker and bulk carrier sectors could result in GHG emissions reductions in the industry by 5% or 25 MT of CO2 annually.

Environmental accounting

Nothing in this world can be managed well, if it is not measured properly. Similarly to manage and regulate the emissions and disposal of wastes from ships in line with the present international regulations for a sustainable future, industry call for some accounting device or measuring system. Understanding the importance of same, Gearbulk has developed a very comprehensive environmental accounting system (EAS) to accurately track waste disposal and emission from its fleet. This EAS system is aligned with Gearbulk’s in house Vessel Reporting System (VRS). This system gives automatic alarms and signals when various parameters deviate from their preset values which includes all major air emissions and waste streams such as CO, NOx, SOx, sludge, bilge water, garbage, cargo residues, tank washings, lube oil consumption, accidental oil leakage and refrigerant gases. The system can generates various reports for the fleet including trend analysis and comparison between vessels, voyages and trades. Industry wide adoption of such a system will prove to be boon and an important tool to gauge the success of emission/waste-reducing initiatives for a sustainable future.

Turning Wind into profit

Wind is everywhere out at sea and that too free of cost, then why not use it. With this idea in mind, Skysails Gmbh has developed an innovative technology that uses a kite which flies ahead of the vessel and generates enough propulsion to reduce consumption of bunker fuel by up to 35 percent in ideal sailing conditions. Saving of fuel reduces costs and more than that reduces GHG emissions. In July 2011, Skysail is honoured with the prestigious Sustainable Shipping Award for their pioneering innovative technology, which combines inventiveness, trendsetting design and environmental benefits. Best part of the technology is that, whatever the course of vessel may be 0/90/180/270 degrees, kite helps in improving

Page 11: TMILLAN Newsletter VI

PAGE 11TMILLAN / OCTOBER 2011

the speed of the vessel.

Cargill, one of the world’s largest charterers of dry bulk freight , has signed an agreement with a Greek ship owner Anbros Maritime to install the world’s largest kite on its 5 years time chartered dry bulk vessel, MV Aghia Marina. This 1994 built, 28,500 MT DWT vessel with service speed of 14 kts will be the first largest vessel to use the wind power technology created by SkySails. The ship owner is highly excited for environmental innovation project. Once the technology is fully operational, Cargill estimates fuel reduction upto 20% and reduction of emissions upto 3200 MT of CO2 per year. Adopting best environmental practices to achieve sustainable growth makes good business sense, especially when it is commercially profitable.

Small initiatives makes world of difference

IMO has estimated that various small energy efficiency measures if adopted can result in huge savings of fuel and can be cost efficient and carbon friendly. Few such possible arrangements with fuel reduction efficiency are Waste heat recovery: 4 –10% ; Autopilot adjustments: 4% ; Ship speed reduction: 23% ; Efficiencies of scale (per 10% increase): 4% ; Hull surface coatings: 5%; Bow thruster scallops/grids location: 5% ; Propeller blade design: 2%; Lightweight construction: 7%; Energopac (rudder and propeller design to reduce drag): 4%; Delta tuning(using rail technology to tune the engine): 1%; Air lubrication (an air carpet beneath the hull to reduce drag): 5%; Voyage planning for weather and sea conditions: 10%; Wind power (sails, skysails or Fletner rotors): 20%; Hull cleaning (to reduce resistance): 3%; Optimum main dimensions (eg. slender hulls): 9% .

All above pioneering innovative approaches adopted by General Electric (GE), Maersk, British Petroleum, Cargill and Gearbulk are made possible only because of visionary leadership which aimed to create a profitable sustainable future by exploring new business models. To continue this growth trend, there is a need for strong leaders across the industry to take a step forward and face the challenges of future.

Leadership is not only about achieving the mission, vision and goals of a particular organization, but it is also about foreseeing and shaping the entire industry for tomorrow. Shipping is a complex business which needs a strong platform of change management, which can eliminate all the barriers to thrive sustainable growth for the industry. To effect this change management, industry demands for strong leadership at various levels and verticals. A strong visionary approach is required to shape up the future of the industry and to secure a winning future in a sustainable world.

In the nutshell, Successful companies will be those which will ride on the wave of future challenges and opportunities with a more sustainable and green approach. A visionary approach aiming to adopt environment friendly innovative models will be the essence for sustainable growth of an agile, green and profitable shipping industry.

Adopting best environmental practices to achieve sustainable growth

makes good business sense, especially when it is commercially profitable.

Page 12: TMILLAN Newsletter VI

PAGE 12TMILLAN / OCTOBER 2011

CONGRATULATIONS NEW JOINEES

Heartiest Congratulations to Mr.Sumit Kumar of TMILL Kolkata, on his marriage. We wish him a happy & prosperous life ahead.

Congratulations to Ms. Dipannita Kundu, D/o Achintya Kumar Kundu (TMILL Haldia) for scoring in 92%

& Mr Varun Kumar S/o Rajesh Kumar (TKM Delhi) for scoring in 95% in the Indian Certificate of

Secondary Education Examination 2011 (ICSE)

ISL DUBAIParag Gandhi

TKM KOLKATAAmit Chatterjee

HR, IR & CSRSreejeta Basu

TKM JAMSHEDPURDilip Chowdhury

TKM BANGALOREAshwini Kumar Samal

TKM VIZAGArijit Mazumder

Also joining us at TMILL Dhamra

Please send your suggestion/feedback [email protected]

G. Satyanarayana

Shiba Shanakar Dash

Sitanshu Bhusan Sahani

Anil Prasad Samal

Rajesh Kumar Panda

Sudhir Ranjan Pattanaik