Managing Director's Message

The China Navigation Company (CNCo) is committed to promoting sustainable development within the shipping industry. The Sustainable Development Report (for the year 2012) has been prepared in accordance with the Global Reporting Initiative’s Sustainability Reporting Guidelines in order to provide standardised data for ease of comparison with industry peers.

I would like to thank everyone involved in the preparation of this comprehensive report which has been externally assured as C+ against the criteria set out in the GRI application levels.

China Navigation’s vision is to be the leading provider of sustainable shipping solutions and our customers’ partner of choice. With operational excellence as its guiding principle, the Vision sets out clear objectives which, combined with the values, will help to guide the Company and its employees - ashore and afloat - in all our operational and business decisions. Our Vision serves as the framework for our strategy and describes what we need to achieve in order to grow and develop our business along sustainable lines.

We pride ourselves on being original and forward-looking – qualities that have guided our operations for over 140 years. We are confident that, if we continue to put our customers first, our stakeholders will also benefit, especially if they are willing to take the long term view.

The Sustainable Development Report (for the year 2012) highlights the steady progress made over the last 12 months on our improvement journey towards achieving “net zero” environmental impact. We are determined to reduce harmful emissions through technological innovation and we have made substantial capital investments in modern, eco-design, highly fuel efficient ships for deployment in our regional liner and global dry bulk operating divisions. Our bulk logistics division continues to develop highly customised, innovative seaborne logistics solutions which represent sustainable alternatives to traditional land based infrastructure.

I am pleased to report that there was no incidence of non-compliance with environmental laws and regulations during the period covered by this report.

CNCo’s progress towards the development of a diverse, industry leading workforce continues to build momentum. Significant resources have been allocated to provide training and development opportunities to develop a professional and skilled workforce at sea and ashore. In support of our commitment to “zero harm” to colleagues or the Environment the safety governance structure is now embedded and extends to regional third party contractors and service providers. The challenge for the next 12 months will be to improve and sustain our safety performance on a global basis.

We have made some encouraging progress in meeting our responsibilities to the Communities in which we operate. Specifically the establishment of a Centre of Excellence, in partnership with the Maritime College in Madang, Papua New Guinea, represents a significant opportunity to raise the standards of health, safety and environmental practices in the Papua New Guinea marine sector.

Management regularly review the risks to our operations from all causes. The main risks are associated with the vagaries of the weather which impact upon the agricultural sector. CNCo remains a signatory to Hong Kong’s Fair Winds charter as well as a founding member of the Sustainable Shipping Initiative, founded in 2011, to address the three principal challenges facing our industry: rising oil prices, structural shifts in world trade and growing scrutiny of the industry’s social and environmental performance. CNCo continues to play an active role in supporting the SSI, specifically as a key sponsor of the “Closed Loop Materials Management” workstream.

Established in 1872, CNCo celebrated its 140th anniversary in 2012. In 2013, in collaboration with Forum For the Future, CNCo completed a multi-stage “Futures Scenario Planning” exercise to identify long term strategic risks and opportunities and to reach consensus on a long term strategic plan, Vision 2020. The 2012 Report highlights some of the key outcomes and their contribution to CNCo’s sustainable development performance.



Tim Blackburn