As a part of its new mid-term business plan, Mitsui OSK Lines (MOL) is focusing on efforts to enhance its operational safety. Moving forcefully on comprehensive safety measures, Japan’s shipping major is improving its safety performance while embarking on ambitious growth plans.
In his Tokyo office, MOL’s General Manager of Marine Safety, Captain Nemoto, is seated in the midst of challenging times. Says Captain Nemoto, “Our long-term vision is to make the MOL group an ‘excellent and resilient organisation that leads the world shipping industry’ and, as highlighted in our new three-year business plan (MOL Advance), we aim to operate 1,200 vessels and secure revenues of USD21billion at the end of the fiscal year 2012. At the same time, we need to ensure our growth is coupled with enhanced quality operations.”
Given MOL’s recent poor accident record, Captain Nemoto is fully aware of the challenges that lie ahead. As reported in the media, MOL’s reputation was severely dented last year as the result of four major accidents including the loss of the 197,060-dwt ore carrier Giant Step, the loss of 4,813 cars from the 55,328-gt car carrier Cougar Ace, an oil spill from the 261,284-dwt VLCC Bright Artemis and a fire on board the 3,400-teu containership MOL Initiative.
Back to basics
Captain Nemoto comments, “Our customers and other stakeholders suffered considerable stress and inconvenience as a result of these accidents. All MOL’s group management is taking this situation very seriously and we have gone back to basics to devote our full efforts to ensuring safe operations.”
Subsequent to the accidents, MOL management took immediate steps to find the underlying causes of the series of casualties. It established an ‘Emergency Committee for Enhancement of Operational Safety’ under the secretaryship of Captain Nemoto.
“The committee was established to analyse all aspects of the accidents and to put forward counter measures designed to improve the safety of our vessel operations,” explains Captain Nemoto. “Our investigations involved both internal and external surveys to examine group-wide operational safety systems. We concluded that the main root causes were not only related to human errors. Indeed, in addition to addressing the issue of increasing workload on the seafarers, we needed to consider the use of fail-safe equipment and facilities that exceed international standards. Also, we realised that measures must be taken to adequately monitor and respond to today’s abnormal weather conditions.”
Using the findings of its internal and external surveys as a basis for the root causes of the accidents, MOL has compiled several measures to enhance its safety systems.
Comprehensive measures
Captain Nemoto explains, “Basically, the measures are part of our efforts to realise MOL president Akimitsu Ashida’s pledge to enhance MOL’s safety performance. To this end, we are taking steps to thoroughly reinforce the safety of our ocean transport in terms of both hardware and software.”
According to Captain Nemoto MOL management has announced plans to spend a massive JPY35bn (some USD 290m) on improving the company’s safety systems. “The outlay will be spread over three years as highlighted in MOL Advance. Among the projects MOL will be spending heavily on is a central ship-safety management centre in Tokyo called Safety Operation Support Centre. This safety body will monitor MOL’s 800-strong fleet, providing each ship with critical up-to-date weather and safety information.”
Further funds will be spent on improving ship management procedures and training seafarers. “We will reinforce and improve education and training for all ranks at MOL training centres around the world. We will also introduce our competency evaluation system programme in MOL group ship management companies, manning companies, and MOL’s own training centres. We believe this comprehensive approach will enhance the competency of our seafarers in a reliable and efficient manner,” says Captain Nemoto.
Captain Nemoto also revealed MOL’s plans to employ 400-500 new graduates from maritime colleges around the globe each year. “We believe seafarer shortages are affecting safety so we need to address this by employing more graduates to serve on our vessels today and in the future. In this connection, we will use the MOL-owned Spirit of MOL vessel exclusively to train the multinational graduates. They will receive both technical and operational training on this vessel as part of their training to qualify for their deck officer and engineer licences.”
Cooperation with DNV
Commenting on DNV’s external review of MOL’s ship-safety systems, Captain Nemoto says, “We hired DNV to run a number of workshops at our Tokyo, London and Singapore offices involving company superintendents, fleet masters and engineers. The group discussions were useful and helped to identify safety issues faced by employees in their duties. We held similar workshops for our seafarers in Manila (Philippines), Mumbai (India) and Zadar (Croatia), which resulted in the identification of several issues, including communication problems and the need to enhance seafarer education and training, and restructure ship management practices.”
“This is an excellent example of the value creation that Maritime Solutions, DNV’s management and technology consulting unit for the maritime industry, is able to provide for its customers,” says Trond Hodne, DNV Maritime’s Regional Manager in Japan. “This basically involves a structural approach to safety. We find out where the owner is in terms of safety management procedures, find a base line to work from, then provide solutions and set goals,” adds Fred Yoshida, DNV Maritime’s Marketing Director in Japan.
Long-term improvements
Captain Nemoto adds, “The third-party review, combined with our own internal survey, was considered the best approach as it delivers reliable, long-term safety improvements. This is important as safety will be central to MOL’s business culture as we expand our fleet and services to meet the challenges ahead.”
MOL’s efforts are already paying dividends. No serious accident has been reported this year to date. “Safety is our primary concern,” emphasises Captain Nemoto and concludes, “Even 99% is not safe enough. We must constantly challenge ourselves to think safety in order to avoid accidents in the future.”
Date: 2007-10-25