I. Overview VI. Social performance  
II. Statements of the general manager VII. Economic performance  
III. Long-term prospects and strategies VIII. Report of third-party auditing advices  
IV. Framework and management system IX. A comparison of terms used in report and GRI guidelines  
V. Safety and environmental performances    
 

Part C: Report of COSCON, a pilot unit of sustainable development of COSCO

Economy
Entironment
Society
V. Safety and environmental performances
 

Safety and environmental guidelines and targets

Environment and occupation health and safety management system

Fulfillment of the international conventions

Emphasis on environmental protection, and safety and honesty

Daily and emergent mechanism for safety and environment management

Application of environmental protection technology

Prevention of air pollution

Inputs to environment costs

Reduction of environmental burden caused by office activities

Reduce the energy consumption

Discharge

 
Inputs to environment costs

a) Annual budget for environmental projects

As an international shipping enterprise, at the same time of operation, the Company has been engaged in the contribution and effort regarding environmental protection, studying and fulfilling the relevant conventions and requirements home and abroad. The Company, combining the environmental protection with the operation, sets up completed environmental protection mechanism, improves the daily operation and reduces the fuel consumption by technological innovation, so as to decrease the discharge of wasted water and wasted gas. The relevant departments of the Company formulated middle and long-term schemes for environmental protection, certain human physical resources contributed to the intensified work relating environmental protection. The effort was strongly supported by the leaders and the staff of the Company with active participation. Great progress on the work of environmental protection was made through participation of all the staff. In 2005, the investment into the cylinder oil improvement project was as follows: Research RMB 600 thousand Yuan and Equipment RMB 25.5 million Yuan. The investment into the new paint was RMB 3 million. The investment into the Oil and Liquid was as follows: Research RMB 300 thousand and Equipment RMB 10 million Yuan. Fuel Supervision System: Research and Equipment RMB 200 thousand Yuan.

 

b) Environmental improvement project of newly-built vessels

The Company places great emphasis on prevention of pollution caused by newly-built vessels to meet the requirements of the conventions and norms such as Appendix VI of MARPOL. Before Appendix VI took effect on May 19, 2005, the Newly-built Vessel Projects, such as 5100 TEUs and 10000 TEUs ordered by the Company, were paid attention and measures such as adopting low sulfur oil cabins were taken to meet the requirements of the conventions. All the 10000 TEU carriers of the Company attained the high-grade “Environmental Protection” classification symbol assessed and issued by the classification societies they belonged to and set example for vessel building afterwards. Attaining the high grade “Environmental Protection” classification symbolizes that the vessel causes the minimum environmental pollution. Although not required by the international convention organizations, the symbol is admitted by the industry and requires additional investment into the environmental protection technology. With the increasing concern on the oceanic creature pollution caused by organotin, the International Maritime Organization has forbid use of antifouling paints with organotin since 2003. And all the vessels are forbidden to use paints with organotin in 2008. On principle of emphasizing oceanic environmental protection, the Company decided to paint newly-built vessels with TBT-FREE or silicon vanish in spite of greatly increased cost. In order to protect the layer of ozone, at the meeting of the treaty powers of the Montreal Protocol in 1992, the applied volume of chlorofluorocarbon was revised and production and application of CFC were to be abolished since 1996. In order to meet the requirement of the Convention, condensing agent of no damage to the layer of ozone and of high refrigeration and heating efficiency are adopted into the vessel-applied air conditioners and refrigerating engines. Under the circumstances of fuel shortage and increased energy crisis, the Company pays more attention to the energy-saving requirements for the newly-built vessel, making every effort to build vessels with the lowest oil consumption at the same sailing speed. Take the 5446 TEU carrier for example. The engine adopts MAN B&W 10L90MC with daily oil consumption 150T, saving about 10T oil every day compared with other engines of the same power. In addition, Equipment such as ALPHA oil injector was applied in the newly-built vessels to boost full combustion of the fuel, which saves the energy to the utmost. The use life of the vessel owned by the Company is set shorter than 20 year. All the vessels out of commission are disposed of by selling.

 

 
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COSCO Group, October 2006