1. Industry – Maritime Seminar Manpower Planning Shipmanagers’ Perspective Capt. Navin Passey Chairman, FOSMA Managing Director, Wallem Shipmanagement (India) Pvt. Ltd. Manpower Planning Shipmanagers’ Perspective Capt. Navin Passey Chairman, FOSMA Managing Director, Wallem Shipmanagement (India) Pvt. Ltd. INDUSTRY - MARITIME SEMINAR, MUMBAI, 19-DEC-08 1

2. Manpower Planning Global Shipmanagers’ Perspective CONTENTS 1.Five Wise Questions 2.Global Skills Shortage – Cause & Effects 3.The Way Forward – Critical Success Factors CONTENTS 1.Five Wise Questions 2.Global Skills Shortage – Cause & Effects 3.The Way Forward – Critical Success Factors INDUSTRY - MARITIME SEMINAR, MUMBAI, 19-DEC-08 2

3. Five Wise Questions WHY ? To maintain Demand & Supply balance. To facilitate planning of Career Path from grass- roots level. To bolster seafarers’ social wellbeing, perception in public opinion and personal professional pride. To make “Seafaring” a “Career of Choice”. All above, to build a highly skilled, motivated and dedicated work-force as the bedrock of marine transportation. WHY ? To maintain Demand & Supply balance. To facilitate planning of Career Path from grass- roots level. To bolster seafarers’ social wellbeing, perception in public opinion and personal professional pride. To make “Seafaring” a “Career of Choice”. All above, to build a highly skilled, motivated and dedicated work-force as the bedrock of marine transportation. INDUSTRY - MARITIME SEMINAR, MUMBAI, 19-DEC-08 3

4. Five Wise Questions HOW ? By accurate prediction of swings in world trade, their effects on world tonnage and demand for seafarers. By investment in creation of captive pipeline for supply of future officers – Structured Cadetship Programs. By creating awareness of importance of “seafaring profession” on the value chain of marine transportation and world trade. By recognition, respect, remuneration, rewards and commitment to continuous value addition. HOW ? By accurate prediction of swings in world trade, their effects on world tonnage and demand for seafarers. By investment in creation of captive pipeline for supply of future officers – Structured Cadetship Programs. By creating awareness of importance of “seafaring profession” on the value chain of marine transportation and world trade. By recognition, respect, remuneration, rewards and commitment to continuous value addition. INDUSTRY - MARITIME SEMINAR, MUMBAI, 19-DEC-08 4

5. Five Wise Questions WHEN ? NOW is already too late ! As long as there are consumers there will be world trade, as long as there is world trade there will be ships, and as long as there are ships they will need skilled manpower. People move cargoes, not ships, and not stock markets. It must be recognized that Manpower Planning is a long term business; linking it to vagaries of stock markets is commoditization of our “Seafarer Assets” WHEN ? NOW is already too late ! As long as there are consumers there will be world trade, as long as there is world trade there will be ships, and as long as there are ships they will need skilled manpower. People move cargoes, not ships, and not stock markets. It must be recognized that Manpower Planning is a long term business; linking it to vagaries of stock markets is commoditization of our “Seafarer Assets” INDUSTRY - MARITIME SEMINAR, MUMBAI, 19-DEC-08 5

6. Five Wise Questions WHO ? Every stakeholder in marine transportation Regulators – ILO, IMO and National Administrations Ship owners, Ship managers, Ship operators ITF and affiliates Industry Bodies – G4, IMEC, IMMAJ, InterManager, Nautical Institute METs Shipping Finance Sector Underwriters Classification Societies Research Groups e.g. Warwick University, MAIB, etc. WHO ? Every stakeholder in marine transportation Regulators – ILO, IMO and National Administrations Ship owners, Ship managers, Ship operators ITF and affiliates Industry Bodies – G4, IMEC, IMMAJ, InterManager, Nautical Institute METs Shipping Finance Sector Underwriters Classification Societies Research Groups e.g. Warwick University, MAIB, etc. INDUSTRY - MARITIME SEMINAR, MUMBAI, 19-DEC-08 6

7. Five Wise Questions WHERE ? Seafaring is, historically, espoused in underdeveloped economies. Seafarer breeding grounds have, historically, moved away with industrialization and increase in per capita GDP of crew supplying countries. Following in OECD footsteps, the major crew supplying countries - Indian Subcontinent, Eastern Europe, Philippines and China are fast becoming unreliable and expensive. Reconnaissance of alternate crewing markets, establishment of training infrastructure and development of crewing resources need to be considered with some urgency. WHERE ? Seafaring is, historically, espoused in underdeveloped economies. Seafarer breeding grounds have, historically, moved away with industrialization and increase in per capita GDP of crew supplying countries. Following in OECD footsteps, the major crew supplying countries - Indian Subcontinent, Eastern Europe, Philippines and China are fast becoming unreliable and expensive. Reconnaissance of alternate crewing markets, establishment of training infrastructure and development of crewing resources need to be considered with some urgency. INDUSTRY - MARITIME SEMINAR, MUMBAI, 19-DEC-08 7

8. Global Skills Shortage Cause & Effects CAUSES Radical changes in world economy. Resultant mercurial growth in world merchant fleet. Speed and volume of increase in world merchant fleet not matched by production of skilled seafarers. Shipping industry taken by surprise with enormity of officers shortage.CAUSES Radical changes in world economy. Resultant mercurial growth in world merchant fleet. Speed and volume of increase in world merchant fleet not matched by production of skilled seafarers. Shipping industry taken by surprise with enormity of officers shortage. INDUSTRY - MARITIME SEMINAR, MUMBAI, 19-DEC-08 8

9. Global Skills Shortage Cause & Effects EFFECTS Consequences of “People Asset” negligence grossly under-estimated. Effects of reversal of Demand & Supply equation. Depletion of skills and competence. Industry forced into dangerous compromises.EFFECTS Consequences of “People Asset” negligence grossly under-estimated. Effects of reversal of Demand & Supply equation. Depletion of skills and competence. Industry forced into dangerous compromises. INDUSTRY - MARITIME SEMINAR, MUMBAI, 19-DEC-08 9

10. The Way Forward Critical Success Factors 1.Grass-root Recruitments 2.Training & Best Practices 3.Retention 4.Image of Shipping making “Seafaring” a “Career of Choice” 1.Grass-root Recruitments 2.Training & Best Practices 3.Retention 4.Image of Shipping making “Seafaring” a “Career of Choice” INDUSTRY - MARITIME SEMINAR, MUMBAI, 19-DEC-08 10

11. The Way Forward Critical Success Factors Grass-root Recruitments Legislation for mandatory carriage of cadets Investment in Creation of additional Global Cadet Training Capacity Identification of upstream crew supplying sources Emphasis on English Language proficiency Allocation of nationality quotas Grass-root Recruitments Legislation for mandatory carriage of cadets Investment in Creation of additional Global Cadet Training Capacity Identification of upstream crew supplying sources Emphasis on English Language proficiency Allocation of nationality quotas INDUSTRY - MARITIME SEMINAR, MUMBAI, 19-DEC-08 11

12. The Way Forward Critical Success Factors Training & Best Practices Modernization of existing training infrastructure Training for Trainers Best Practices Continuous Competence Management Consolidation of Private Sector Investment Training & Best Practices Modernization of existing training infrastructure Training for Trainers Best Practices Continuous Competence Management Consolidation of Private Sector Investment INDUSTRY - MARITIME SEMINAR, MUMBAI, 19-DEC-08 12

13. The Way Forward Critical Success Factors Retention Paradigm shift from “Contract Labor” to “Long Term Careers” Competitive Wage/Benefit Packaging Better BondingRetention Paradigm shift from “Contract Labor” to “Long Term Careers” Competitive Wage/Benefit Packaging Better Bonding INDUSTRY - MARITIME SEMINAR, MUMBAI, 19-DEC-08 13

14. The Way Forward Critical Success Factors Image of Shipping making “Seafaring” a “Career of Choice” Industry campaigns in public media Career awareness campaigns in schools & colleges Image of Shipping making “Seafaring” a “Career of Choice” Industry campaigns in public media Career awareness campaigns in schools & colleges INDUSTRY - MARITIME SEMINAR, MUMBAI, 19-DEC-08 14

15. Manpower Planning Global Shipmanagers’ Perspective Thank You ! INDUSTRY - MARITIME SEMINAR, MUMBAI, 19-DEC-08 15