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The Maersk Group consists of a collection of companies operating within two main industries of shipping and energy. Maersk Group has four core businesses which include Maersk Line, APM Terminals, Maersk Oil and Maersk Drilling. Through these companies and several others, the group employs roughly 89,000 people.
India has emerged as one of the world’s most important new engines of growth. And as the economy seeks to find a way back to a higher gear, Maersk is repositioning itself to seize the opportunities that emerge in the wake of the changes.
Today we’re profiling Khushboo Kataruka.
Khushbo works in our legal-claims department and has been a member of our Maersk family for around a year now.
When she’s not working as a lawyer, Khushboo enjoys karaoke and a great meal after a long day’s work. It’s her idea of detoxification.
Khushboo especially enjoys working for Maersk because of the remarkable culture and great work-life balance.
We enjoy having Khushboo on our team and hope she’s with us for a long time!
Whether it’s partnering with local businesses to go global, or improving the supply chain of foreign multinational companies in China, Maersk’s activities in the country have impacted its economy and competitiveness.
Every week, up to 60 forty-foot Maersk Line containers (FFEs) make their way out of the Qingdao and Nansha ports in China. Teir destination: Nigeria, West Africa. The cargo comprises sets of electronic parts manufactured by the Chinese electronics giant Haier. Once in West Africa, the parts are transported to a Nigerian factory, jointly owned by Haier and a UK-based company.
Here the parts are assembled into a final product, and retailed on the local market. This is how someone living in Nigeria might end up with a Haier-made freezer or air conditioner.
This is a result of a partnership between Maersk Line and Haier, and it is just one of many partnerships that demonstrate how high maritime transport connectivity and advanced logistics in China have enabled Chinese firms to split up their supply chains and locate activities where they are 80 most competitive.
“With rising wages in China, shipping spare parts to a destination to be assembled enables Haier to lower their labour costs. At the same time, transportation costs are optimised since more spare parts can be shipped in the same container space, compared to finished products. Lastly, it also provides a strong joint venture partner in Nigeria to help develop the market,” says Maersk Line General Manager Andy Chu.
Going forward, Haier has set its sights on growth in the emerging markets such as Latin America and Africa. Maersk Line currently handles over 70% of shipments to these destinations, and is well poised to facilitate Haier’s business.
The Haier case captures the thrust of a new study, ‘Maersk Group in China’, produced by Group Sustainability in an effort to understand how the Maersk Group can accelerate its contributions to economic development in the countries where the Group operates.
The China Impact Assessment shows that Maersk Line alone contributes to a 0.8% increase in Chinese imports and a 1.1% increase in Chinese exports, by increasing its services and capacity by 10%.
Since 2000, Chinese imports and exports have grown by around 600%, with container volumes going through Chinese ports growing by around 500%. According to the study, this is fundamentally the result of a focused strategy deployed by the Chinese Government to invest in imports and terminals, and by opening the market for foreign shipping lines.
The study was conducted by means of external consultation with senior economist Tomas Westergaard-Kabelmann.
“We conclude that China has managed to achieve the best maritime transport connectivity in the world, defined as the access to regular and frequent liner services and the level of competition among shipping lines,” he says.
This effort has made China more competitive and boosted its imports and exports by up to 30% and 40% respectively since 2004, corresponding to trade worth USD 686 billion.
According to Westergaard-Kabelmann, with the market for maritime container transport well established, the next challenge for China is to lower its logistics costs to remain competitive, especially in the face of other Asian nations with cost advantages.
He adds: “Logistics costs in China are not only higher than many developed countries but also higher than average for China’s Asia-Pacific competitors and South American countries”.
Sourcing in China
One way of explaining China’s high logistics costs is to look at its highly fragmented logistics market and low market penetration of third-party logistics, according to the Study. This is Damco’s domain.
Later this year in Yantian, China, Damco will be handling British homeware from furniture to lifestyle products as the bulk of its inventory. These high-quality household items, sourced in China or Asia, will not be shipped straight away to their market destination in the UK. Instead, up to 85% can be consolidated in a Damco cross-dock facility. The other 15% is trucked direct to the port and shipped to the UK market. This cross-dock arrangement enables the maximisation of container space, and stocks can be stored for seasonal demand, protecting against over-supply in the market.
One of three core areas
According to William Lee, Head of Supply Chain Development, North Asia, this is just one of three core focus areas that Damco has explored with a British global homeware retailer, a partnership that was secured late last year after an 18-month tender process. Together with other identified initiatives, a potential annual cost saving of USD 16.6 million is projected.
Damco Head of Strategic Sales in North Asia, James Savagar, adds: “In today’s economic environment, the pressure on cost and reluctance to change are high, but through extensive supply-chain development workshops both in Hong Kong and in the UK, we convinced the client to partner with us.”
Article by Tan Yi Hui from the Maersk Post
When Typhoon Yolanda devastated the Philippines last year, Maersk personnel worked hand-in-hand with competitors to provide logistics expertise and aid.
It is 8 am in Benin, West Africa. Another busy day in the office lies ahead for Karl Gnonlonfin, customer service and CSR manager of APM terminals. He is a world away from Tacloban City, a once rustic sea- side town in the Philippines, but the memories of his time there over three months ago are still vivid.
On 31 December 2013, Gnonlonfin landed in Manila en-route to Tacloban, ground zero of Typhoon Yolanda, one of the largest ever recorded in history. Yolanda had hit the Philippines over a month earlier, and laid waste to the Samar and Leyte region. Buildings crumbled, shorelines were ravaged and millions of homes flattened by the fury of Mother Nature.
Gnonlonfin was in Tacloban as a member of the Logistics Emergency Team (LET), a partnership created to support the Logistics Cluster of the World Food Programme and the wider humanitarian community. Four companies – TNT, Agility, UPS and Maersk – make up the LET, which when called upon in large-scale disasters lend assets to necessary relief operations.
Health and Safety Expert
Gnonlonfin’s job was to function as a health and safey expert – an area in which he has trained in APMT – for the central warehouse in Tacloban, managed by the local government and WFP. It was here that the packing and storage of relief items to be trucked out to other affected regions has been taking place since the disaster struck. This was Gnonlonfin’s first mobilisation since his training, and his role was to enforce health and safe procedures within these operations.
“I had to train local NGOs and government staff, especially supervisors, so that when the LETs are gone they can still manage the warehouse operations safely,” he says.
On-site were LET representatives from the other member companies, including three Maersk Group colleagues from Damco. While LET companies have supplied assets such as forklifts and containers for the operations, manpower such as themselves were on the ground to provide logistics expertise and warehouse supervision for local volunteers and officials.
An uphill battle
Gnonlonfin found the situation an uphill battle. Trucks and forklifts were in operation while people walked around nearby, and proper use of safety equipment such masks, helmets, gloves or reflective vests was not enforced. This was coupled with insufficient fire protection measures. “Many of the volunteers were homeless and desperate to get food and money in return for their work.” They did not care so much about their health and safety,” explains Gnonlonfin.
Full-day training workshops were conducted to get everyone up to speed. Other LET members also attended, and the training closed with an exam that participants had to pass to be certified.
Living conditions were spartan. Gnonlonfin shared a tent with the three Damco personnel.
“We cooked our own food and shared two bathrooms with over 100 people. We woke up very early each morning to queue for the bathroom and bathed in very cold water,” he recalls.
What wasn’t lacking however, was sprit aplenty. Under the LET collective, members of the four companies worked hand in hand, and every morning members gathered in a cramped tent for their briefing, conducted by a lead coordinator from UPS. At the warehouse, TNT, Agility and Maersk personnel took turns supervising workers and checking inventory.
Throughout the training workshops, I wore shirts with the LET logo and the brand logos of all the other companies under the LET. This is to send the message that the LET was conducting this as one collective effort,” says Gnonlonfin.
Learning from the survivors
Now, safely back in West Africa, Gnonlonfin reflects on his time in the Philippines wearing the LET hat rather than a corporate one:
“It is amazing to see different companies coming together as one for a greater good, even though we are competitors in business,” he says.
He relates the most meaningful lesson learnt from his experience:
“What really touched me was the fact that despite all the pain and loss incurred by the local people, they still kept their smiles and always had a positive attitude.
Those guys are survivors, and we should all learn from them,” Gnonlonfin says.
Story and image by Tan Yi Hui
Article from the Maersk Post (April 2014)
Learn more about Maersk’s efforts during Typhoon Yolanda here
Posted on Monday, April 14th 2014
Maersk employs roughly around 89,000 people around the world, an increasing number of which are based in India.
Sagar Kubal is one of our India-based employees, currently working for Maersk’s Trade and Marketing department.
Read our interview with him below:
How long have you been with Maersk now?
Almost nine years.
Why do you enjoy working for Maersk ?
Maersk understands that employees are crucial for corporate success so they ensure they’re satisfied with the work culture and opportunities offered to them.
Along with acknowledging hard work, Maersk also makes sure to reward the most deserving employees and remain concerned with employees’ health.
My colleagues are also very passionate and supportive.
What’s the best part of your role in the Trade and Marketing department?
The best part is liaising with different departments to ensure the vessel space is fully utilised. I also enjoy working in stake holder management.
Where do you see yourself in the future?
I’m aiming to become a man of value rather than success.
Read more on Maersk’s activities in India:
In a ceremony held on March 21, 2014 at the Keppel FELS shipyard in Singapore, Karen Tiffen, wife of Martin Tiffen, Managing Director of Total E&P Norge AS, had the honour of naming the ultra harsh environment jack-up rig - Maersk Intrepid.
Maersk Intrepid is the first in a series of four ultra harsh environment jack-up rigs to enter Maersk Drilling’s rig fleet. The four jack-up rigs represent a total investment of USD 2.6bn. The first three jack-up rigs, including Maersk Intrepid, will be delivered from the Keppel FELS shipyard in 2014-2015, and the fourth will be delivered from the Daewoo Shipbuilding and Marine Engineering (DSME) shipyard in South Korea in 2016.
After delivery from the yard, Maersk Intrepid will mobilise to the North Sea and commence a four year firm contract with Total E&P Norge AS for drilling the demanding and complex wells on the Martin Linge field development in the Norwegian North Sea. The contract includes four one-year options. The estimated contract value for the firm contract is USD 550 million.
“With the naming of the Maersk Intrepid, we are opening a new chapter in Maersk Drilling’s Norwegian history. We have invested in the Maersk Intrepid and its three sister rigs in order to continue to grow and leverage our market leading position in Norway. The Maersk Intrepid is the first of the four rigs being delivered and I am very pleased that it is going to Norway to work for one of our key customers, Total E&P Norge AS,” says Claus V. Hemmingsen, CEO of Maersk Drilling.
Facts about the new ultra harsh environment XL Enhanced jack-ups from Maersk Drilling
With a leg length of 206.8 m (678 ft) the rigs are the world’s largest jack-up rigs and are designed for year round operation in the North Sea, in water depths up to 150 m (492 ft). Uptime and drilling efficiency are maximised through dual pipe handling. While one string is working in the well bore, a second string of e.g. casing, drill pipe or bottom hole assembly can be assembled/disassembled and stored in the set-back area, ready for subsequent transfer for use in the well bore thus reducing the non-productive time. The drill floor features Multi Machine Control - a fully remote operated pipe handling system allowing all standard operations such as stand building and tripping to be conducted without personnel on the drill floor thus ensuring a high level of consistency across crews and an improved efficiency.
Read more on Maersk Driling
Maersk Drilling recently took delivery of its first ultra deepwater drillship Maersk Viking - read about it here
Gain an overview of Maersk Drilling here
Maersk recently launched a new sustainability strategy with the aim of accelerating the company’s positive impacts. The purpose is to address significant sustainability challenges in society which at the same time constitute bottlenecks to Maersk’s growth strategy.
One of the three key focus areas is Education.
“Education is at the core of sustainable economic development. Individuals and societies need access to high quality education and training to develop and prosper, not least in the emerging market economies.” says Lene Serpa, Head of Governance and Research in Maersk Group Sustainability.
In many growth markets, Maersk is facing a shortage of local expertise and skills. This makes local hiring and procuring difficult – which then again makes it tougher to live up to the expectations of many host nations.
That’s why Maersk is stepping up its focus on Education. The benefits for Maersk and society are evident: Maersk gets to attract and retain qualified staff in highly competitive talent markets. In return, the local community gets job creation and development opportunities.
“Our host nations want to make sure that jobs are created, local enterprise developed and new skills and technologies acquired, so that society as a whole benefits from the development of offshore and maritime industries and activities.” says Serpa.
Besides investments in training and education initiatives in collaboration with universities and secondary schools, Maersk will expand on its current training centers.
Growth markets, in particular, will be those benefiting. Moreover, the strategy aims at improving social inclusion by attracting more women and youth from low income communities who may not normally be able to afford an education.
“We hope to see a lot of young bright people put their talents to use in our business. Investing in their capabilities simply makes good business sense. It helps everybody grow and prosper” concludes Serpa.
Learn more about Sustainability in Maersk:
Read Maersk’s full Sustainability Strategy 2014-2018 here
See how a group of bright young Angolan graduates swaped sun for snow and spent a month getting to know the oil and gas industry here
See how Maersk is training seafarers in Angola here
A nova iniciativa da Maersk tem como objetivo tornar a educação o caminho para sair de áreas de baixa renda do Rio de Janeiro.
O Brasil está entrando em um dos momentos mais estimulantes da sua história, mas o pano de fundo está a armadilha da pobreza das favelas. Para um grupo de homens jovens, existe agora uma chance de ganhar uma mão amiga para sair da pobreza.
Vinte e cinco jovens de famílias pobres no estado do Rio de Janeiro foram selecionados para embarcar em um projeto para treinar técnicos de segurança para a crescente indústria de petróleo e gás do país.
Os alunos têm todos idade superior a 18 anos e são provenientes de famílias de baixa renda. Eles vão passar dois anos, um total de 1.320 horas, sendo treinados em um programa apoiado por oito empresas do grupo Maersk que têm interesses no Brasil.
Os projetos oferecem treinamento de segurança e aulas de inglês, juntamente com palestras sobre petróleo e gás, logística e indústrias de construção naval. Os cursos oferecem conhecimentos teóricos e práticos.
Como parte do programa de responsabilidade social corporativa, a Maersk Training fornecerá as aulas de inglês e workshops de conduta que os alunos possam conhecer profissionais experientes que podem compartilhar experiências e responder a perguntas sobre a indústria.
Os estagiários serão acompanhados por um assistente social, que vai assumir a responsabilidade primária para acompanhar o desenvolvimento dos participantes durante todo o curso.
A Maersk Oil e as empresas do Grupo acreditam que iniciativas de formação profissional como esta, representam uma importante estratégia para reverter a baixa renda e as condições de desemprego dos mesmos, contribuindo para o aumento da mão de obra no país.
Artigo retirado da revista eSea da Maersk Training aqui
Maersk Oil’s hugely important and technically challenging Culzean gas project on the UK Continental Shelf is successfully navigating the project maturation process and is on track to deliver first gas.
At a spot beneath the North Sea, almost equidistant between Denmark and the UK, a giant gas field, capable of producing up to around 5% of the UK’s domestic needs, awaits development.
For the team at Maersk Oil UK’s Aberdeen headquarters, this is a particularly exciting opportunity.
“As well as being an important energy and revenue provider to the UK, there is no doubt that Culzean is a key component of Maersk Oil UK’s contribution towards the 2020 target of 400,000 barrels of oil equivalent a day of entitlement production. With first gas expected well before the turn of the decade, there’s no shortage of focus on Culzean,” comments Martin Rune Pedersen, Managing Director of Maersk Oil UK.
Gas field lives up to high expectations
Culzean was one of the top five projects presented by Maersk Oil at last year’s Capital Markets Day. The field will be Maersk Oil’s first operated High Pressure, High Temperature (HPHT) gas development and has the UK and Copenhagen teams fully energised.
As operator of the field, and in conjunction with its stakeholder partners, JX Nippon, ENI UK and BP, the team in Aberdeen are eager to see this technically challenging high-pressure and high-temperature gas field live up to expectations.
In Culzean, the subsurface conditions are complex, the pressure is around three times as great as an ordinary reservoir, and the temperature will be around 170 degrees Celsius, 70% hotter than normal. This combination of factors impacts the design and evaluation of the subsurface, the wells, creates significant drilling challenges and ultimately tests the design of the surface production facilities.
“The main challenge for the team is that all the solutions typically employed to mitigate the various development risks at normal pressures and temperatures are being pushed to the limit of what the supply chain can provide in order to cope with the high pressure and high temperature environment,” comments Martin Urquhart, Culzean Project Manager, Maersk Oil UK.
It’s at a very exciting point in the development cycle where we are weighing up the options and are taking a major decision with regard to whether the infrastructure we produce Culzean from will be a tie-back to existing North Sea infrastructure or a stand-alone option, both of which have pros and cons as well as risks and opportunities,” he adds.
The Culzean team’s transition to its new permanent home at Maersk House in Aberdeen continues to build overall project momentum, explains Urquhart.
“We know we have the full support of the Corporate functions in Copenhagen, which is truly reassuring, but the planned relocation has certainly helped the teams integrate and allowed the project to establish its identity more firmly here in the UK.”
“We have made a significant number of Maersk Oil colleagues members of the Culzean team, and recruited new professionals to Maersk. The additional team members are just the start of a phased ramp up, from about 40 now to around 50 in the next stage, and depending on the contracting situation, around 100 people in the coming years,” he remarks.
Signal of intent going foward
Making such headway in the current marketplace is encouraging, and Urquhart adds:
“There is a lot of competition for good people. We can’t be complacent and we must make the most of the fact that we have an exciting HPHT development to sell. We must look to build as much internal experience as possible within Maersk Oil and look to retain it.”
Martin Rune concludes: “It’s a flagship project; we are adding an entire asset stream to the UK business, which in itself is a significant thing to be part of. This and other projects have led us to invest in new office facilities here in the UK to accommodate our current and future needs. In terms of our commitment to the UK, it’s a major signal of our intent going forward.”
With the potential to produce between 200 million and 500 million cubic feet of gas per day, interest in the Culzean project will intensify as each step on its journey to commercial first gas is cleared.
By Daniel Canty
Read the article in the Maersk Post here
Discover more on Maersk Oil:
Meet the CEO of Maersk Oil here
Watch Maersk Oil’s video ‘Explore More’ here
A new initiative from Maersk aims to make education the route out of Rio de Janeiro’s low-income areas.
Brazil is entering one of the most stimulating times in its history, but in the background there lies the poverty trap of the favelas - the shanty towns. For a handful of young men there is now a chance to gain a helping hand to move out of these.
Twenty-five young men from families in the Rio de Janeiro state have been selected to embark on a project to train safety technicians for the country’s booming oil and gas industry.
The students, all over the age of 18, come from families with low incomes. They will spend two years, a total of 1,320 hours, being educated in a programme backed by the eight Maersk group companies that have interests in Brazil.
The projects offer safety training and English classes along with lectures on oil and gas, logistics and shipbuilding industries. The courses will offer theoretical and practical knowledge.
As part of the corporate social responsibility programme, Maersk Training will provide the English classes and conduct workshops so students can meet experienced professionals who can share experiences and answer questions about their industry.
The trainees will be monitored by a social assistant who will take the primary responsibility for following the participants’ development throughout the course.
Maersk Oil and Group companies believe that professional training initiatives such as this, represent an important strategy to reverse low incomes and poor unemployment conditions while contributing to the increase of manpower in the country.
Article taken from Maersk Training’s eSea magazine here
Read more on Maersk’s activities in Brazil:
See how we’re MAXimising trade in Brazil here
APM Terminals declares new Brazilian facility open here
Learn how we’re unlocking opportunities for shared value here