CHALLENGES IN MARITIME TRANSPORTATION SEAFARERS & MANAGEMENT PERSPECTIVE BY K. SHANKAR, EXECUTIVE DIRECTOR, WEST ASIA MARITIME LIMITED, CHENNAI FOR I.Mar.E., VISHAKAPATNAM BRANCH ON 05 TH MAY, 2007

CHALLENGES FACED BY INDUSTRY / REGULATORY BODIES. INDUSTRY / REGULATORY BODIES. SEAFARERS. SEAFARERS. MANNING AGENTS MANNING AGENTS MANAGEMENT / SHIP MANAGERS. MANAGEMENT / SHIP MANAGERS. CAN IMarE DO ANYTHING ABOUT IT?

WHAT IS THE PRESENT TREND ? NEW TECHNOLOGIES INTRODUCED. NEW TECHNOLOGIES INTRODUCED. MANAGEMENT EFFICIENCY HAS IMPROVED. MANAGEMENT EFFICIENCY HAS IMPROVED. CUSTOMER SERVICE NOW A PERVASIVE FOCUS. CUSTOMER SERVICE NOW A PERVASIVE FOCUS. COST REDUCTION AS MANAGEMENT STRATEGY. COST REDUCTION AS MANAGEMENT STRATEGY. PERENNIAL MISMATCH BETWEEN SEARFARER SUPPLY & DEMAND. PERENNIAL MISMATCH BETWEEN SEARFARER SUPPLY & DEMAND. CONCERN OVER QUALITY OF SEAFARER. CONCERN OVER QUALITY OF SEAFARER. FRAGMENTED INDUSTRY /WEAK GOVERNANCE STRUCTURE. FRAGMENTED INDUSTRY /WEAK GOVERNANCE STRUCTURE. CORECTIVE ACTION BY DGS GETS CHALLENGED. CORECTIVE ACTION BY DGS GETS CHALLENGED. MARKET BOOM ENSURES BELOW PAR TOO GET JOBS. MARKET BOOM ENSURES BELOW PAR TOO GET JOBS.

CREWING CONUNDRUM SHORTAGE OF QUALITY /WELL TRAINED CREW / ESCALATING WAGES/ POACHING – PERRENIAL. SHORTAGE OF QUALITY /WELL TRAINED CREW / ESCALATING WAGES/ POACHING – PERRENIAL. CUT THROAT MARKET – HARDER TO RETAIN STAFF. CUT THROAT MARKET – HARDER TO RETAIN STAFF. PEOPLE ARE FREE AGENTS-MONEY THROWN FOR MANNING NEEDS. PEOPLE ARE FREE AGENTS-MONEY THROWN FOR MANNING NEEDS. MANAGAERS IN LURCH-MAKE DO WITH LOW QUALITY STAFF. MANAGAERS IN LURCH-MAKE DO WITH LOW QUALITY STAFF. TOUGHER REGULATIONS –PREMATURE PROMOTION -INCREASE IN ACCIDENTS- COMPANY LOYALTY?? TOUGHER REGULATIONS –PREMATURE PROMOTION -INCREASE IN ACCIDENTS- COMPANY LOYALTY?? HOW TO SOLVE THE CRISIS?? HOW TO SOLVE THE CRISIS?? DO EVERYTHING IN POWER – TO SHOW THAT YOU VALUE THE SEAFARER. DO EVERYTHING IN POWER – TO SHOW THAT YOU VALUE THE SEAFARER. STRINGENT REGULATORY CONTROLS- HOW?? STRINGENT REGULATORY CONTROLS- HOW??

SEAFARERS EMPLOYMENT CURRENT PRACTICES PROMOTES INSECURITY,POOR MOTIVATION AMONG SEAFARERS. PROMOTES INSECURITY,POOR MOTIVATION AMONG SEAFARERS. HIGH TURN OVER & LACK OF FOCUS ON JOB. HIGH TURN OVER & LACK OF FOCUS ON JOB. SUPPLY FOCUS IS ON DEMAND – NOT ON QUALITY. SUPPLY FOCUS IS ON DEMAND – NOT ON QUALITY. LACK OF EXISTANCE OF RESPONSIBILITY / ACCOUNTABILITY. LACK OF EXISTANCE OF RESPONSIBILITY / ACCOUNTABILITY. NO OBJECTIVE TOWARDS CONTRIBUTION. NO OBJECTIVE TOWARDS CONTRIBUTION. NEGETAIVE PERCEPTION OF PROFESSION. NEGETAIVE PERCEPTION OF PROFESSION. MOTIVATED WORKFORCE NON-EXISTANT - MOTIVATED WORKFORCE NON-EXISTANT - DO THEY MEET CUSTOMERS EXPECTATIONS? DEAL ON CUSTOMER-VENDOR MODE – WHERE IS THE QUALITY? MARKET BOOM – BELOW PAR TOO GETS A JOB.

WHAT ARE THE CHALLENGES ? RELIANCE ON MANNING AGENT FOR SUPPLY OF CREW. RELIANCE ON MANNING AGENT FOR SUPPLY OF CREW. LACUNA IN THE DISCHARGE OF HIS RESPONSIBILITY. LACUNA IN THE DISCHARGE OF HIS RESPONSIBILITY. LOOSE REGULATORY FRAMEWORK. LOOSE REGULATORY FRAMEWORK. POOR INDUSTRY GOVERNANCE. POOR INDUSTRY GOVERNANCE. FRAUDULENT CERTIFICATES & ABUSIVE PRACTICES. FRAUDULENT CERTIFICATES & ABUSIVE PRACTICES. SUB-STANDARD CREW PERFORMANCE. SUB-STANDARD CREW PERFORMANCE. WEIGHTAGE TOWARDS PAPER QUALIFICATIONS. WEIGHTAGE TOWARDS PAPER QUALIFICATIONS. AIMLESS CORRECTIVE ACTIONS BY DGS CHALLENGED BY METs. AIMLESS CORRECTIVE ACTIONS BY DGS CHALLENGED BY METs. DGS DIKTATS THROUGH AMENDEMNTS – ARE WE GETTING ANYWHERE? DGS DIKTATS THROUGH AMENDEMNTS – ARE WE GETTING ANYWHERE? CAN WE BE TOLERANT ANY MORE? CAN WE BE TOLERANT ANY MORE?

SHIPMANAGER/MANNING AGENT RELATIONSHIP-DRASTIC CHANGE FROM TRANSACTIONAL TO GOVERNANCE STRUCTURE. FROM TRANSACTIONAL TO GOVERNANCE STRUCTURE. CONTRIBUTE TOWARDS POSITIVE EFFORTS FOR CREW RETENTION/CAREER SATISFACTION. CONTRIBUTE TOWARDS POSITIVE EFFORTS FOR CREW RETENTION/CAREER SATISFACTION. ALIGN SEAFARER ASPIRATION WITH EMPLOYER. ALIGN SEAFARER ASPIRATION WITH EMPLOYER. INCLUSION OF SEAFARER IN THE PLANNING PROCESS OF EMPLOYER. INCLUSION OF SEAFARER IN THE PLANNING PROCESS OF EMPLOYER. CLARITY IN CONTRACT/PRE-CONTRACTUAL/RE- EMPLYMENT/PROMOTION BENEFITS TO CREW. CLARITY IN CONTRACT/PRE-CONTRACTUAL/RE- EMPLYMENT/PROMOTION BENEFITS TO CREW. SUPPORT TO CREW FAMILY IN HIS ABSENCE. SUPPORT TO CREW FAMILY IN HIS ABSENCE. STRATEGIC & INTELLIGENCE INFORMATION ON FACTORS INFLUENCING SEAFARERS MARKET. STRATEGIC & INTELLIGENCE INFORMATION ON FACTORS INFLUENCING SEAFARERS MARKET. GOOD WORKING ENVIRONMENT/REMUNERATION & CAREER GROWTH FOR PERFORMANCE. GOOD WORKING ENVIRONMENT/REMUNERATION & CAREER GROWTH FOR PERFORMANCE.

IS CURRENT SYSTEM FLAWED ?? ADMINISTRATION – MINIMUM REGULATORY STANDARDS – MERE FACILITATOR?? ADMINISTRATION – MINIMUM REGULATORY STANDARDS – MERE FACILITATOR?? SEAFARER QUALITY DEPENDENT ON MANNING AGENT- HIS SUCCESS A MEASURE OF MOTIVATION & LOYALTY. SEAFARER QUALITY DEPENDENT ON MANNING AGENT- HIS SUCCESS A MEASURE OF MOTIVATION & LOYALTY. LACK OF SUCCESSFUL COLLABORATION – MANNING AGENT & SHIP OPERATOR. LACK OF SUCCESSFUL COLLABORATION – MANNING AGENT & SHIP OPERATOR. INDUSTRY SILENT SPECTATOR TO FLAWED SYSTEM. INDUSTRY SILENT SPECTATOR TO FLAWED SYSTEM. SEAFARER ORIENTATION & DEVELOPMENT NEED TO BE THE FUTURE NATIONAL SHIPPING POLICY. SEAFARER ORIENTATION & DEVELOPMENT NEED TO BE THE FUTURE NATIONAL SHIPPING POLICY. ONLY PROFESSIONAL LONGEVITY CAN STRIKE BALANCE BETWEEN SUPPLY & DEMAND. ONLY PROFESSIONAL LONGEVITY CAN STRIKE BALANCE BETWEEN SUPPLY & DEMAND. INVESTMENT IN TRAINING – NEED FOR CREW DEVELOPMENT. INVESTMENT IN TRAINING – NEED FOR CREW DEVELOPMENT. SHORT SIGHTED APPROACH IN TACKLING HR ISSUES. SHORT SIGHTED APPROACH IN TACKLING HR ISSUES. LACK OF FOCUS IN HUMAN CAPITAL COMPROMISED FOR SHORT TERM PROFITS. LACK OF FOCUS IN HUMAN CAPITAL COMPROMISED FOR SHORT TERM PROFITS. WORK CULTURE /PSYCHOLOGICAL STRESS LEAD TO LACK OF MOTIVATION TO PURSUE SEA CAREER. WORK CULTURE /PSYCHOLOGICAL STRESS LEAD TO LACK OF MOTIVATION TO PURSUE SEA CAREER.

ROLE OF MANNING AGENT MARKET TREND –FINDING JOB NOT ACONSTRAINT. MARKET TREND –FINDING JOB NOT ACONSTRAINT. SHIPMANAGER HAS TO SELECT A PROPER AGENT. SHIPMANAGER HAS TO SELECT A PROPER AGENT. SUCCESS OF ABOVE IS MOTIVATION MEASURE. SUCCESS OF ABOVE IS MOTIVATION MEASURE. MORE FOCUS REQUIRED ON RETENTION OF STAFF. MORE FOCUS REQUIRED ON RETENTION OF STAFF. TIGHTER CONTROL OVER AGENT & GOVERNANCE WITH COLLABORATIVE PLANNING. TIGHTER CONTROL OVER AGENT & GOVERNANCE WITH COLLABORATIVE PLANNING. INVESTMENT IN CREW TRAINING IS HIS JOB. INVESTMENT IN CREW TRAINING IS HIS JOB. POACHING BY FLY BY NIGHT OPERATORS TO BE PROHIBITED BY LAW. POACHING BY FLY BY NIGHT OPERATORS TO BE PROHIBITED BY LAW. FOCUS ON HUMAN CAPITAL & ITS VALUE LOST. FOCUS ON HUMAN CAPITAL & ITS VALUE LOST. LONG TERM GAIN SACRIFICED FOR PROFITS. LONG TERM GAIN SACRIFICED FOR PROFITS. A TRIPARTITE AGREEMENT WITH OWNER / MANAGER. A TRIPARTITE AGREEMENT WITH OWNER / MANAGER. DO EVERYTHING – TO LET SEAFARER KNOW – YOU VALUE THEM. DO EVERYTHING – TO LET SEAFARER KNOW – YOU VALUE THEM.

BENCHMARKING OF SHIPMANAGERS TODAYMARKET DEMAND QUALITY PERFORMANCE. TODAYMARKET DEMAND QUALITY PERFORMANCE. SELF REGULATION BY MANAGERS SHOW RESULTS. SELF REGULATION BY MANAGERS SHOW RESULTS. HEALTHY TREND FOR PERFORMANCE CULTURE. HEALTHY TREND FOR PERFORMANCE CULTURE. INTRO OF KEY PERFORMANCE INDICATORS. INTRO OF KEY PERFORMANCE INDICATORS. INTER MANAGERS INITIATIVE FOR COMMON SET OF KEY PERFORMANCE INDICATORS. INTER MANAGERS INITIATIVE FOR COMMON SET OF KEY PERFORMANCE INDICATORS. CONTRIBUTION OF NORWEGIAN RESEARCH COUNCIL. CONTRIBUTION OF NORWEGIAN RESEARCH COUNCIL. KNOWLEDGE – HOW TO MEASURE SHIP/MANAGER PERFORMANCE & AWARD A RATING. KNOWLEDGE – HOW TO MEASURE SHIP/MANAGER PERFORMANCE & AWARD A RATING. BENCHMARKING OF SHIPMANAGER WILL BENCHMARK CREW COMPETENCE AS WELL. BENCHMARKING OF SHIPMANAGER WILL BENCHMARK CREW COMPETENCE AS WELL. NO ROOM FOR CHEATERS/EVASION OF RULES. NO ROOM FOR CHEATERS/EVASION OF RULES.

QUALITY OF SHIP PERFORMANCE IT REFLECTS ON QUALITY OF SEAFARER. IT REFLECTS ON QUALITY OF SEAFARER. SEAFARER MOTIVATION IS THE CHALLEMGE. SEAFARER MOTIVATION IS THE CHALLEMGE. HENCE FOR SHIPMANAGER- GROOMIMG,TRAINING AND RETAINING THE SEAFARER IS VITAL. HENCE FOR SHIPMANAGER- GROOMIMG,TRAINING AND RETAINING THE SEAFARER IS VITAL. CONFIDENT & COMPETENT EMPLOYEES ENSURE OPERAIONAL EXCELLENCE. CONFIDENT & COMPETENT EMPLOYEES ENSURE OPERAIONAL EXCELLENCE. HENCE COMPETENCE BUILDING THROUGH ENHANCED TRAINING MODULES. HENCE COMPETENCE BUILDING THROUGH ENHANCED TRAINING MODULES. COMPETENCE MANAGEMENT SYSTEN DEFINES MINIMUM STANDARDS FOR A COMPANY. COMPETENCE MANAGEMENT SYSTEN DEFINES MINIMUM STANDARDS FOR A COMPANY. ENHANCED TRNG NOT SOLN FOR COMPETENCE. ENHANCED TRNG NOT SOLN FOR COMPETENCE. BUSINESS STRATEGY NEED TO CONNECT WITH COMPETNECE & TRAINING MODULES. BUSINESS STRATEGY NEED TO CONNECT WITH COMPETNECE & TRAINING MODULES. WHAT GETS MEASURED CAN BE MANAGED. WHAT GETS MEASURED CAN BE MANAGED.

HOW TO ACHIEVE COMPETENCE STANDARDS? HAVE YOU HEARD OF TMSA DEVELOPED BY OCIMF? HAVE YOU HEARD OF TMSA DEVELOPED BY OCIMF? EFFECTIVE MGMNT NEEDS GOOD MEASUREMENT. EFFECTIVE MGMNT NEEDS GOOD MEASUREMENT. COMPANYS WORTH CAN BE MEASURED BY THIS. COMPANYS WORTH CAN BE MEASURED BY THIS. PROFESSIONAL BODY CERTIFY THESE STANDARDS. PROFESSIONAL BODY CERTIFY THESE STANDARDS. STAFF ON BOARD AND ASHORE HAVE BOTH BENEFITED THROUGH AUDITING PROCESS. STAFF ON BOARD AND ASHORE HAVE BOTH BENEFITED THROUGH AUDITING PROCESS. CERTIFICATION CALLS FOR MOTIVATION FROM SHIPOWNERS. CERTIFICATION CALLS FOR MOTIVATION FROM SHIPOWNERS. SHIPBOARD AUDIT MEASURES ACTUAL COMPETENCE AND NOT JUST DOCUMENTATION. SHIPBOARD AUDIT MEASURES ACTUAL COMPETENCE AND NOT JUST DOCUMENTATION. TMSA BUILDS ON ISM – NEED TO DEVELOP TOOLS TO DEMONSTRATE COMPETENCY. TMSA BUILDS ON ISM – NEED TO DEVELOP TOOLS TO DEMONSTRATE COMPETENCY. TMSA CERTIFICATION ENSURES RECOGNITION. TMSA CERTIFICATION ENSURES RECOGNITION.

Business Goals How to get there? Focus areas? KPIs Competence requirements Safety: We shall have zero accidents Customer: We shall have zero complaints from vetting inspectors What plans for competence building/crewing will help us achieve these goals? E.g.: We will focus on coaching top officers, and crew endurance management and operational risk management 30% less lost time incidents then industry average Percentage of crew undergone training in operational risk management What company specific competence requirements are critical to achieve our business goals? (to create success and avoid failure) Business Goals FinancialPeopleEtc Action Plan KPI - 1 KPI - 2 KPI - 3 KPI - 1 KPI - 2 KPI - 3 KPI - 1 KPI - 2 KPI - 3 Critical Competences got Risk Risk Assessment MEASURE OF COMPETENCE MANAGEMENT

ARE YOU A LEADER IN YOUR FIELD ?? CAN LEADERSHIP BE LEARNED ?- CAN IT HAVE AN EFFECT ON SUCCESS? LET US LOOK AT SIX ATTRIBUTES TO SUCCESSFUL LEADERSHIP: CAN LEADERSHIP BE LEARNED ?- CAN IT HAVE AN EFFECT ON SUCCESS? LET US LOOK AT SIX ATTRIBUTES TO SUCCESSFUL LEADERSHIP: LATERAL THINKING: TRY DIFF. PERCEPTIONS /CONCEPTS / MUTIPLE POSSIBILITIES TO APPROACH A PROBLEM TO HANDLE IT SUCCESFULLY. LATERAL THINKING: TRY DIFF. PERCEPTIONS /CONCEPTS / MUTIPLE POSSIBILITIES TO APPROACH A PROBLEM TO HANDLE IT SUCCESFULLY. EMPOWERMENT:DEVELOP SUBORDINATES TO BE LEADERS. SUCCESFUL LEADERS ARE ABLE TO MOTIVATE,ENERGISE AND EMPOWER OTHERS. EMPOWERMENT:DEVELOP SUBORDINATES TO BE LEADERS. SUCCESFUL LEADERS ARE ABLE TO MOTIVATE,ENERGISE AND EMPOWER OTHERS. ACTIVE OPTIMISM: OPTIMISTIC PERSON THINKS POSITIVE. POSITIVE THINKING TRANSLATES INTO EFFECTIVE ACTION. ACTIVE OPTIMISM: OPTIMISTIC PERSON THINKS POSITIVE. POSITIVE THINKING TRANSLATES INTO EFFECTIVE ACTION. DETERMINATION TO IMPROVE: SELF EVALUATION HAS TO BE A PROCESS TO IMPROVE - IMPROVEMENT REAPS RESULTS. DETERMINATION TO IMPROVE: SELF EVALUATION HAS TO BE A PROCESS TO IMPROVE - IMPROVEMENT REAPS RESULTS. ENCOURAGEMENT OF DELEGATION: MOTIVATE & ACCOMPLISH TASKS THROUGH OTHERS. THIS MOTIVATES SUBORDINATES TO ACHIEVE THEIR POTENTIAL. ENCOURAGEMENT OF DELEGATION: MOTIVATE & ACCOMPLISH TASKS THROUGH OTHERS. THIS MOTIVATES SUBORDINATES TO ACHIEVE THEIR POTENTIAL. REAL POTENTIAL:BE INSPIRED BY REAL POTENTIAL & STRATEGIES FOR COMPANYS FUTURE & ACHIEVE THIS VISION. REAL POTENTIAL:BE INSPIRED BY REAL POTENTIAL & STRATEGIES FOR COMPANYS FUTURE & ACHIEVE THIS VISION.

BENCHMARK OF A GOOD SHIP MANAGER IS BASED ON SHIP STAFF COMPETENCY, PROFESSIONALISM,HR SKILLS & VALUE ADDITON TO COMPANY. IS BASED ON SHIP STAFF COMPETENCY, PROFESSIONALISM,HR SKILLS & VALUE ADDITON TO COMPANY. THE NEED TO HAVE A SENSE OF BELONGING. THE NEED TO HAVE A SENSE OF BELONGING. TREAT THE SEAFARER AS AN ASSET TO A SHIPPING COMPANY- THE SHIPPING BUSINESS REVOLVES AROUND HIM. TREAT THE SEAFARER AS AN ASSET TO A SHIPPING COMPANY- THE SHIPPING BUSINESS REVOLVES AROUND HIM. HE NEEDS TO BE LOOKED AFTER, TRAINED, GROOMED WITH GREAT CARE – RESULTS WILL FOLLOW. HE NEEDS TO BE LOOKED AFTER, TRAINED, GROOMED WITH GREAT CARE – RESULTS WILL FOLLOW. HAVE A TRIPARTITE AGREEMENT WITH THE MANNING AGENT & MET – DEFINE MANNING STRATEGY & TRAINING PROGRAMS. HAVE A TRIPARTITE AGREEMENT WITH THE MANNING AGENT & MET – DEFINE MANNING STRATEGY & TRAINING PROGRAMS.

TO MEMBERS OF I.MAR.E VISHAKAPATNAM BRANCH & GUESTS A BIG THANK YOU