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| In order to protect the global resources, COSCO actively reduces the consumption of raw materials and implements lean management to |
| ■ Due to the business character of COSCO Group, the application of material mainly focuses on the ship-building and ship-repairing industries. |
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| ■ Green Passport |
| COSCO Group has been paying close attention to the concept of Green Passport, actively tracing classification societies' establishment of related regulations and their implementation in the industry. COSCO will continue tracing the latest progress and trends of IMO's relate rules and regulations while actively enacting the regulations according to requirements. |
| ■ Utilization ratio of spare parts & material repair |
| In principle, COSCO tries to repair old spare parts worth repairing and the damaged spare parts as much as possible with the premise of assuring the ships' operation safety and the quality of the spare parts. In 2006, COSCO Qingdao arranged the repair of diesel engine pistons, vent valves and oil heads, worth RMB500,000 in total. Other shipping companies also arranged the repair of spare parts. The utilization ratio of spare parts and material repair is included into the statistics. |
| ■ Actively driving material saving |
| COSCO's major measures in driving material saving: |
| (1) |
Ship-building and ship-repairing enterprises should strictly follow technology standards of design criteria, production procedure, construction techniques and material consumption accounting system to decrease damage and waste and improve raw material utilization ratio. The steel utilization in ship-building has been maintaining at 92%.. |
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| (2) |
Ship-building and ship-repairing enterprises are supposed to increase the utilization life of supplemental materials and colligation & underlay materials, and save wood materials, to improve replacement utilization. |
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| (3) |
Design the quota of spare parts and material consumption for ships and conduct regular evaluation. The evaluation results will be connected with the performance to achieve the goal of saving materials. |
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| Example: COSCO (Hong Kong) Shipping changed its supply concept, adopting the ”distribution and supply system“ to avoid the ”waste source“. In the past, the supply of materials of ships used the process of application by ships and approval by the company, which resulted in the waste due to too many inventories of materials or the supplies were not available when being needed by ships. In order to solve this problem, COSCO (Hong Kong) Shipping conducted in-depth surveys on the frequently used materials of ships, designing reasonable supply bases for each ship and fully implementing the “distribution and supply system” for spare parts and materials. In this way, it can regulate the management of the material supply to not only ensure the normal operation of the ships but also block the waste source. |
| After one-year implementation of the “distribution and supply system”, although the prices of the ship-use materials hiked by 7%-8% with even 30% up for hawser, the annual material fees of a single ship declined by nearly RMB30,000 year on year in 2006. As a result, COSCO (Hong Kong) Shipping was crowned the tile of ”7th Excellent Unit of National Equipment Management“ by the China Association of Plant Engineering. |
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■ Decreasing burden of office environment
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| COSCO Group continues its office modernization process, using digitalized management platform for file and information storage and trying to turn into paperless office work in a bid to maximally reduce the paper consumption. The paper saving ratio of the whole system in 2006 was 13.54%, up by 4.49 percentage points year on year. |
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