Goal Achievement

Operating objective and target of the Group of the Company

With the will in operating the one-stop service and trading business of the Group of the Company for both tangible and intangible sustainable profit making to all stakeholders, the Group of the Company thus persists in and dedicates our intention with operating objective and target of just one group that is “care of all stakeholders for true sustainability creation” and observes the motto of “operation mainly for public interest”. That is why the Group of the Company which is the element of the society will also valuably grow and stably operate business upon prosperity and advancement of people at large, community and society.

Operating strategy of the Group of the Company

For maximum effective operation that will generate worthwhile achievement and cause interest to all stakeholders, the Group of the Company has determined the direction and policy of strategic operation by dividing into two important aspects which are service strategy and marketing strategy, as per below details.

  1. Service strategy
    The Group of the Company plans the customer service in each type of business to cover customer demand and satisfaction both in term of working quality and service. The element of such strategy includes the following.
    1. The Group of the Company focuses on One-stop Service

      As trading business unit, floating storage unite business, offshore support vessel business, and ship management service business which are the businesses requiring specification due to the operating complication and availability of set of regulations requiring strict compliance, the Group of the Company therefore focuses on being One-Stop Service Center. The service element is to give advice on supply of vessel which is appropriate for type of cargo required by the customer to ship, facilitate the information of seaports, select seafarers to be consistent with the requirement of the charter party and customer in accordance with standard and efficiency pursuant to the international requirements, and give advice on management strategy for shipment expenses of the customers for customer efficiency in shipment cost and service quality control for life, property and environment safety.

      • Focus on service of quality fleet

        The fleets of the Group of the Company include trading, FSU vessels and Offshore vessels from the size of approximately 1,000 - 300,000 DWT. This indicates the capability to supply types and sizes of the vessel to meet the different customer demand and to be appropriate for type of shipping cargo, and shipping route and seaway. Moreover, the Group of the Company is prepared and expert in adaptation of systems and equipment on board to be proper for utilization based on customer demand.

      • Focus on expert ship management

        From over than 30 years of experiences in shipment services for various types of oils, as well as petrochemical products petrochemical products and liquefied petroleum gas, these have built numerous experiences until the Group of the Company is confident that it has experienced personnel and adequate competency in effectively and safely providing Floating Storage Unit (FSU) service to customers on basis of laws, requirements and regulations consisting of: (1) relevant laws and rules of domestic organizations (2) relevant laws and rules of the countries where the vessels of the Group of the Company operate the business, (3) major conventions prescribed by International Maritime Organization (IMO) (“IMO”) and (4) Guideline and Requirements for Ship Inspection Report Program (SIRE) of Oil Companies International Marine Forum (“OCIMF”), etc.

        From the aforementioned, the fleet of the Group of the Company has been accredited by Harbour Department in the matter of standardization in accordance with international conventions in safety, prevention of pollution from ships, and seafarers. The quality control and preparedness in effective navigating operation and the fleet of the Group of the Company, have been accredited by Classification Societies such as certificates from Lloyd’s Register (“LR”), American Bureau of Shipping (“ABS”), Nippon Kaiji Kyokai (“NK”), Bureau Veritas (“BV”) and Det Norske Veritas and Germanischer Lloyd (“DNV GL”), etc.

        Moreover, the Group of the Company realizes on the importance of the personnel in leading to the expert ship management. The Group of the Company therefore determines that seafarers shall be regularly trained for knowledge and competency development and enhancement of the qualification of the seafarers of the Group of the Company, for instance, training and change in the certificate of seafarers of the Group of the Company from SCTW 1995 to be SCTW 2010 in accordance with the relevant set of regulations.

      • Focus on strict control of service quality

        The Group of the Company absolutely gives precedence to control of service quality resulting in safety of vessel operation and cargo, and punctuality of required customer schedule. The Company is strict to vessel staffs for strict compliance with relevant procedures and rules, and regular inspection of efficiency and condition of vessel to be in good condition in accordance with internal standard. The shipment-related counseling such as consulting on cargo operation and vessel technical work, and documentary execution with the government and private controlling organizations, are given so that safe and punctual cargo shipment service without error of shipment can be rendered.

    2. Focus of the Group of the Company on producing high experienced personnel team
      • Executive team

        The executive team of the Group of the Company is experienced in the industry for long time, and has knowledge and well understanding in the business, in accompany with monitoring the crucial development and change of the industry and customer feedback survey in services. The executive team therefore can apply industrial knowledge and customer comments in improvement and development of services of the Group of the Company to enhance the competitiveness in the industry.

      • Operational supporting personnel team

        The Group of the Company has the operational supporting personnel team which is experienced in the industry for long time, resulting in understanding on Trading Vessel Business, Floating Storage Unit (FSU) Business, Offshore Support Vessel Business, and Ship Management Service Business, in proper operation and execution in accordance with relevant laws, rules and standards for customer acceptance and trust. The advice on operation and compliance with relevant laws, rules and standards, can be given to the customers that have different cargo and routes of shipment.

      • Seafarers

        The Group of the Company is able to recruit seafarers such as captain, chief officer, second officer, etc. who are qualified as prescribed in relevant laws, rules and standards and appropriate for type and size of vessel, as well as route of shipment, such as qualifications in educational background, work experience, license for professional practice in specific related field, etc. The ability to recruit seafarers causes the Group of the Company enable to provide effective shipment and storage services for cargo to the customers under shipment punctuality and safety of cargo and vessel, resulting in more confidence of customers on use of services of the Group of the Company.

    3. Focus of the Group of the Company on maintain the domestic shipment leadership

      The Group of the Company has currently been the shipment leader for oil, refined oil products, semi-refined oil products, and liquefied petrochemicals, with continuous growth of revenue and shipment volume due to customer confidence on its quality and services.

      However, the Group of the Company remains continually aiming at developing its services and business to maintain the leadership in long term, and has the service quality development plan by ordering new vessels and overhaul vessel to be able to transport more volumes, or ordering vessel with low life for replacement of old vessel which will be out of commission. This can reduce average life of the fleet and enhance the serviceability to the customers in shipment and floating storage unit in term of more volume and quality, resulting in ability to increase revenue from customer service, and decrease vessel maintenance expense. The Group of the Company also select the potential and experienced staffs for growth support, retain staffs with good working performance, and seek for opportunity to increase the shipment proportion in the domestic oil trader companies, etc.

    4. Focus of the Group of the Company on enhancement of potential in foreign market business

      The Group of the Company has continually grown in Floating Storage Unit (FSU) Vessel Business. It therefore has established the subsidiary in Singapore where is regional oil Trading Hub. In the past, the operating standard of the Group of the Company is internationally standardized and accepted by the foreign customers. Thus, the Company has planned to expand its business and enhance the potential of the fleet of FSU in Singapore and Malaysia to support more customer demands on the services of the Group of the Company.

    5. Focus of the Group of the Company on customer care in term of Long-Term Partnership

      The Group of the Company focuses on building customer relationship in term of Long-Term Partnership through preparedness of human resources and capital that can enhance the serviceability and increase navigating routes in both domestic and international regions. The personnel of the Group of the Company are knowledgeable and experienced whether in navigation, geography, and relevant rules and standards. The Group of the Company also has strong financial position that can enhance the potential of the fleet to support the continuous growth of the customer businesses.

      Moreover, the Group of the Company also takes care of its customers throughout service period, and closely coordinates and works with customers, resulting in the ability of the Group of the Company to immediately recognize the customer problems. The Group of the Company therefore can rapidly fulfill the customer demand. The customers can contact the Group of the Company round the clock to be ready for coping with the contingent problems, and ready for giving counsel and solving problems upon customer requirement.

    6. Availability of operating cost management strategy by the Group of the Company

      The Group of the Company focuses on effective operating cost management under purchase planning of materials and equipment, and maintenance service by (1) purchasing materials, spare parts, and equipment on board for large quantity in each purchase, and (2) planning the maintenance service and strict implementation in accordance with maintenance service plan for each trading, contributing to decrease in expenses related to materials and spare parts of the vessel, and extension of useful life of trading.

      Moreover, in purchasing materials, spare parts and equipment by the Group of the Company, business partners are requested to offer materials, spare parts and equipment and the Group of the Company shall evaluate the price and quality in making decision on selection of business partner by considering on comparison of more than two business partners in order to enhance price negotiation in another way.

  2. Marketing strategy
    The marketing strategy of the Group of the Company is to retain and expand customer base to create the business partner to be long-term business alliances and reduce risk from price cutback competition as follows.
    1. Focus of the Group of the Company on retention of potential brokerage network

      The Group of the Company has both domestic and foreign potential brokerage network that performs the supply of vessels or cargo particularly in Singapore where is the Major Maritime Hub with large seaport whereas the brokers and the Group of the Company will regularly contact to share the information of both domestic and foreign market situations in order to supply vessels and works for services in the existing and new customer groups.

      The potential brokerage network of the Group of the Company can enhance competitiveness to the Group of the Company and increase efficiency in seeking for new vessels and works in the supplying market of trading, FSU vessel and Offshore vessel.

    2. Focus of the Group of the Company on marketing management to enhance the efficiency of ship utilization and competition potential

      The Group of the Company focuses on ship management for shipment of cargo in the Group of the Company by increase in efficiency of maximum ship utilization. Upon acknowledgement of the Commercial Department of the Group of the Company on timetable of outbound shipment of the customer, the Group of the Company shall seek for customer that requires to transport cargo in Backhaul voyage to add revenue value and efficiency of maximum ship utilization for shipment of cargo, resulting in the ability of the Group of the Company to offer shipment cost both outbound and backhaul voyage which is competitive with other shipping companies and useful both for customers and operations of the Group of the Company.

    3. Focus of the Group of the Company on customer feedback survey on services for improvement of services before, during and after shipment of cargo

      The executive team of the Group of the Company gives high precedence to improvement and development of customer services the Group of the Company. Thus, the survey of customer satisfaction on service, cargo shipment, planning of cargo shipment, compliance with relevant laws, rules and standards, and abroad operation and facilitation of consulting throughout the shipment, is conducted.