Emerging countries are playing an increasingly important role in the global economy. The ocean transport industry is involved in the import and export of resources, energy sources and products, which are indispensible to the nation-building process and industrial development in emerging countries as well as to improving the overall quality of life of citizens. By providing optimal services to these ends the MOL Group will also be able to achieve further growth. Acceleration of business development in growing markets is one of the overall strategies of our midterm management plan, "GEAR UP! MOL
," which covers the period from fiscal 2010 to fiscal 2012. This feature section profiles some of the initiatives we are implementing based on this strategy and how we will extend them to help create sustainable and synergistic growth of both emerging countries and the MOL Group.
Major business activities
India and Pakistan
To cater to increasing demand in Asian market by enhancing direct service network in rapidly growing emerging market, MOL established its container transport service linking China and India, and connecting Singapore with Pakistan and India in May 2011.
Vietnam
Established joint venture with two local companies in Vietnam and started a tugboat service in November 2010. In addition, received approval from the government of Vietnam to establish a new joint terminal operation company. The new company started to operate terminal in Cai Mep in January 2011.
China
Signed LNG transportation project agreement with an oil major in March 2010. MOL will provide long term LNG transportation in the Asia Pacific and Middle East regions.
Philippines
Introduced the Third Year Program in the MOL's training center in Philippines in order to cultivate seafarers who support for high level of safety standards in vessel operation. The program is licensed as equivalent to university-level education under the system promoted by the Philippine government, and started to introduce in June 2011.
Brazil
Signed a long-term contract for transporting iron ore to China using VLOCs (300,000 DWT-class) with a major mining company in November 2010. New-building vessels will serve the Brazil-China shuttle service, transporting iron ore for 25 years.
Social Contribution Activities
Burkina Faso
Photo provided by Japanese Embassy in Burkina Faso
Provided transportation of desks and chairs which were used at the elementary school in Aichi Prefecture to Burkina Faso, inland country in West Africa in April 2011. The desks and chairs were transported to elementary school in Burkina Faso. In September 2011, MOL received commendations from Japanese Ambassador to Burkina Faso and Principal of the elementary school in Aichi Prefecture.
South Africa
Provided transportation of mobile library vehicles from Japan in order to support NPO's project which is one component of an ambitious plan to increase literacy led by South Africa's Ministry of Education. MOL shipped 12 vehicles in fiscal 2009, 12 more in fiscal 2010, and aim to donate 100 vehicles in total by fiscal 2014.
Tanzania and Zambia
Provided transportation of nine 20-foot equivalent units of containers of children shoes from Japan to support the project by NPO in fiscal 2010. Along with the donation of containers for shipment, MOL cooperates in ocean transport to the South African port of Durban, which serves as the gateway port to Zambia.
In addition, provided transportation of material assistance from Hong Kong to Tanzania in January 2011 to support Hong Kong-based charitable organization.
Kenya
MOL offered assistance in support of the project which collects unneeded shoes in Japan and donate to children forced to go shoeless in Kenya. Provided transportation of 20-foot container filled with children's shoes to Kenyan port of Mombasa in January 2011.
Pakistan
Donated monetary contribution and provided transportation of aid supplies for Pakistan, as an emergency relief for extensive flooding caused by record-breaking rainfall during July and August 2010.
Sri Lanka
Support a Sri Lankan student in Japan who donate used sports equipment to his homeland. Provided transportation from Hakata to Colombo in April 2011.
Cambodia
Provided transportation of medical vehicles from Japan to support NPO's project to build a first-aid system in Cambodia. Shipped 34 medical vehicles yearly as of June 2011 and earned commendation from the Cambodian government in August 2011.
Thailand
Provided transportation of medical masks and other medial and health supplies from Japan as a part of measures to counter infectious disease by NPO. Shipment of medical masks for distribution to healthcare providers at hospitals and clinics was requested from the Thailand government, and MOL shipped three 20-foot equivalent units of containers of these materials.
China
Chile and Peru
Support NPO in USA which deliver wheelchairs to disabled persons in developing countries. By 2009, MOL provided transportation of twelve 40-foot containers of wheelchairs, and shipped eight 40-foot containers of wheelchairs from China to Chile and Peru in fiscal 2010.
Paraguay
Cooperated with NPO and provided transportation of two 40-foot containers of children's wheelchairs from Japan in February 2011. Wheelchairs were donated to FUNDACION TELETON, a government-certified NPO in Paraguay. In May 2011, His Excellency of the Embassy of the Republic of Paraguay in Japan visited MOL to express his appreciation for the company's cooperation.
Enhancing Business Activities Globally
- Meeting Growing Demand in Emerging Countries
The demands of emerging countries are varied, ranging from importing and exporting resources and energy to exporting products and building distribution infrastructure. By quickly ascertaining demand by strengthening business intelligence systems and other measures, MOL is accommodating that demand through timely investments and service expansion. Moreover, we have stationed more employees overseas to deal with this on the front line. Developing diverse and talented people in emerging countries and other centers of distribution and trade and facilitating their performance on the job will be critical to MOL's sustainable growth and will also provide additional employment opportunities in the respective countries.
An in-house seminar
Strengthening Business Intelligence
We are working to strengthen business intelligence systems by holding in-house seminars and enhancing information, both quantitatively and qualitatively, via a shared portal site that can be accessed by MOL Group staff in Japan and overseas. These initiatives are designed to allow the group as a whole to more quickly meet demand in growth markets.
Helping Achieve the United Nation's Millennium Development Goals
-Contributing to Economic and Social Development in Emerging Countries
For a country to really take off as an emerging nation, education and medical care must first be widely available. Even in countries with burgeoning growth, the society there does not always reap the benefits and often remains mired in an array of problems. One of the principles of MOL's social contribution activities is contributing to the United Nations Millennium Development Goals. Acting on the basis of this principle is the responsibility of a company that grows in step with global economic and social development. And, over the long term, development of the regions and countries we support will underpin our growth as well.
Increasing and Ensuring Awareness of the Global Compact
-Rigorously Ensuring Compliance at the Global Level
The Global Compact emblem
With operations that span the globe, MOL participates in the Global Compact, promoted by the United Nations since March 2005, as a global corporate citizen. We work to support and practice the compact's 10 principles, which cover four areas: human rights, labor, the environment and anti-corruption. With MOL accelerating business development in growing markets, we believe it is necessary for the entire MOL Group to rigorously comply with laws and social norms at the global level. Based on this commitment, we administered a survey in January 2011 to 58 Group companies overseas on awareness and practice of the Global Compact. The survey looked into the initiatives of these companies in the four areas covered by the Global Compact. The survey found that, in addition to complying with national laws and regulations, the companies have formulated their own rules of conduct, are fully respecting human rights and rigorously managing occupational safety and health, have established their own compliance rules, and have set up internal advisory service desks for consulting on and reporting human rights abuses. We found that adequate CSR-related practices are in place even in emerging countries like Brazil, India and the Philippines. The results of this survey will be shared with MOL Group companies in Japan and overseas, in the hope that this will lead to even greater awareness and improved measures relating to CSR across the entire group.
(far right)
Increasing and ensuring awareness of policies related to protecting human rights
Masaru Satose, Managing Director, MOL (Singapore) Pte. Ltd.
The guidebook issued to our staff covers employment, compliance with antitrust law, rules of conduct, valuing diversity and dignity at work, occupational safety, business continuity planning, confidentiality, conflicts of interest, staff counseling, disciplinary actions, responding to discontent and other policies related to protecting human rights.
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