MARTIN JONES

Projects / Marine Logistics / Time Critical

Wednesday 13th June 2018 Emergency LNG STS Forum, London

Safety Moment

‘It’s not the heat, it’s the humidity’, is more than a cliché, it’s a danger signal

It’s true that when you sweat, perspiration

evaporates and actually helps cool the body.

But if you’re working in an environment that’s

both hot and humid, that humidity can actually

reduce the degree to which the body can lose

heat by evaporation. The harder it is to cool off,

the easier it is to suffer a heat related illness.

Wearing light, loose-fitting clothes, such as

cotton and light colors, can help. But it’s best

to keep the basics in mind, too, like wearing a

proper hat to keep the sun off your head and

neck. Drink lots of water to stay hydrated. And

if you’re doing strenuous work, take breaks

often to cool down.

Safety Moment

• Stress is part of normal life, but

becomes negative when it leads to

physical symptoms, including chest

pain, elevated blood pressure and

problems sleeping.

• Stress is also harmful when people

turn to alcohol or drugs to try to

relieve stress. In fact, substance

abuse keeps the body in a stressed

state and can cause more problems.

• Stress can induce emotions such as

becoming easily

agitated/frustrated/moody/depressed/

low self esteem etc.

Stress Test

Managing symptoms;

• Speak to your Doctor

• Spend time with family and

friends doing activities you

enjoy

• Make the effort to exercise

• Spend time in the fresh air

• Time Management – to

achieve the lifestyle

balance you want

Safety Moment

▪The test uses the rotating stress pictures to test

the level of stress a person can handle.

▪For a normal person, the pictures below should

all move at a slow pace, barely rotating.

•Allegedly, criminals see stress test images

moving and Spinning Around Madly

•Seniors and children See Them Still The

Slower The Pictures Rotate, The Better

Your Ability Of Handling Stress

Martin Jones

June 2018

Oil & Gas / Projects / Marine Solutions - London

Kuehne + Nagel

Project Logistics

Introduction - Global Project Logistics

▪ Global leader in project logistics innovation

▪ Financially strong partner (highest rating)

▪ Industry leading Q-SHE and Compliance procedures and processes

▪ Part of a global network of ~1,300 locations in over 100 countries with more than 74,000 employees

▪ KN Established in 1890

400EXPERTS

50COUNTRIES

TOP 5GLOBALLY

TECHNOLOGY

LEADER

Our global Project Logistics

structure is a key division in

one of the Strongest Global

Logistics Networks in the

market

Comprehensive Global Logistics SolutionsWorld Class Capabilities and Positioning

Seafreight

No.1 globally

3.8 million

TEUs shipped

Airfreight

Top 2 globally

1.25 million

tons handled

Overland

Top 3 in Europe

22.5 million

road orders

Contract

Logistics

Top 2 globally

9.5 million m2

Logistics Centre

footprint

Integrated

Logistics

No.1 globally

750 experts in

7 global Logistics

Control Centres

Project,

Logistics

Top 5 globally

+400 dedicated

staff in over 50

countries

400EXPERTS

50COUNTRIES

TOP 5GLOBALLY

74,000WORLDWIDE

1,300LOCATIONS

TOP 2GLOBALLY

Project LogisticsPart of a Strong Global Logistics Network

Project | Oil & Gas | Marine LogisticsPart of a Strong Global Logistics Network

846EXPERTS

61COUNTRIES

TOP 5GLOBALLY

74,000WORLDWIDE

1,300LOCATIONS

TOP 2GLOBALLY

Project Industry FocusTailored Supply Chain Solutions

Oil & Gas,

Petro-

chemicals

• Up-stream

• Midstream

• Downstream

• De-commissioning

Mining &

Metallurgy

• Greenfield

• Brownfield

• Steel and

aluminium

• De-commissioning

Water

• Sewage

• Desalination

• Water &

wastewater

treatment

Maritime

• Supply ships

• Ship Yards

• Commercial Ships

• Cruise Vessel‘s

Power &

Renewable

Energy

• Power generation

and renewables

• Power

Transmission

and Distribution

Industrials

• Cement

• Breweries

• Pulp & Paper

• Production

facilities (other)

Government

& Defence

• Defence Industry

• Ministriy of

Defence

• International

Organisations

• Life Support

Industry

Infrastructure

• Mobility

• Airports

• Ports

• Other civil

construction

(stadium‘s,

hospitals, …)

Value PropositionFreight Management Solutions

Rig Moves

International transport of land

drilling rigs, rig knock-down,

packing and crating of rig parts,

and derrick erection

Project Logistics

Customized transport and

logistics services CAPEX goods,

machinery and equipment,

managing multimodal movement

of over-dimensional and heavy

cargo

Supply Chain Services

Freight management, expediting

and associated services of

managing the global supply chain

of oilfield supplies and

government & defence supplies

MRO Material Re-supply

Inbound-to-operations freight

management and expediting of

maintenance, repair and

operations (MRO) equipment to

manufacturing plants, production

facilities and supply bases

Ship Spares Solutions

Freight management and

expediting of items for cruise and

cargo ship owners / operators,

dry-docks and new builds, ship’s

chandlers and suppliers of ship

spare parts, and ship’s

chandelling as service offering

Rig & Maritime Support

Vessel clearance, ship’s agency

and crew management,

husbandry services and shore

based support services

Supply Base Logistics

Transport and expediting

solutions, supply base

management including

warehousing, materials and

inventory control of operational

and consumable materials for

offshore operations

Lead Logistics (4PL)

Control tower concept, supply

chain automation solutions,

change management, optimizing

logistics and procurement

processes, freight management

consultancy, inventory planning

and vendor management

Regional TeamsGlobal Project Organization

NAM SCA WEU CEE MEA SAP NAP

Michael Doerpinghaus

(Houston, TX / USA)

Erwin Brockmann

(Santiago / Chile)

Leif-Arne Strømmen

(Hamburg / Germany)

Mustafa Sener

(Hamburg / Germany)

John Hanratty

(Dubai / UAE)

Kenneth Bybjerg

(Singapore)

Kan Chen

(Shanghai / China)

CANADA ARGENTINA DENMARK AUSTRIA ANGOLA AUSTRALIA CHINA

MEXICO BOLIVIA FINLAND AZERBAIJAN BAHRAIN INDIA

U.S.A. BRAZIL FRANCE GEORGIA2 EGYPT INDONESIA

CHILE GREAT BRITAIN ESTONIA GHANA JAPAN

COLOMBIA ITALY GERMANY IRAN2 KOREA

ECUADOR THE NETHERLANDS GREECE IRAQ MALAYSIA

GUYANA2 NORWAY HUNGARY JORDAN PHILIPPINES

PANAMA PORTUGAL ISRAEL KENYA SINGAPORE

PERU SPAIN KAZAKHSTAN2 KUWAIT THAILAND

TRINIDAD & TOBAGO SWEDEN LATVIA MOZAMBIQUE1 VIETNAM

VENEZUELA POLAND NAMIBIA

ROMANIA OMAN

RUSSIA QATAR

SERBIA SAUDI ARABIA

SWITZERLAND SOUTH AFRICA

UKRAINE TANZANIA

TURKEY

UAE

1 Currently dormant2 Planned for Q3/4 2018

Rio de Janeiro

Houston

Stavanger

Dubai

Singapore

Aberdeen

Rotterdam

Las Palmas

Esbjerg

Bergen

KN Oil & Gas Supply Base network

Limassol

Walvis Bay

p. 166/21/2018

IT Innovation | OGS - One Global System

▪ Visibility of shipments on line item level at any time or location

▪ Early identification of supply chain failures, triggering contingency plans

▪ Logistics budget control

▪ 24/7 access through internet

▪ Real time visibility of all

shipments or part thereof at

any time or location

▪ Early identification of supply

chain failures, triggering

contingency plans

▪ Logistics budget control

▪ Increasing control via full

visibility of each step of the

supply chain process

▪ Improving planning and

reducing safety stock thanks

to visibility of your inventory

▪ Optimizing costs through

information management that

helps to analyze operational

processes

Our Value PropositionIT Innovation

p. 186/21/2018

Marine and Transport Engineering, in-house competence

▪ Lesser dependence on sub-contractors

▪ Lower risk exposure to cargo damage

▪ Cost optimization

Our Unique Value PropositionMarine & Transport Engineering

▪ Early involvement in route surveys

▪ Evaluation of infrastructure upgrades

for heavy lift transport feasibility

▪ Preparation of lifting, lashing and

cargo stowage plans

▪ Selection of the most suitable mode of

transport equipment (type of trailer /

vessel / barge etc.)

▪ Optimized cost through reduced

double handling at site by matching

trailer equipment and delivery

sequence with site erection schedules

▪ Enhanced project expenses for heavy

lift cargoes, identifying most suitable

routes for heavy load

▪ Lower risk exposure to cargo damage

through in-house transport

engineering competences

p. 20

Our Unique Value PropositionExample: Industry Experts in Rail Infrastructure Projects

▪ In-house expertise in packing, shrink

wrapping, cocooning and spot crating for

rolling stock

▪ Supply of inflatable cushions for load

protection

▪ Supply of suitable lifting equipment for

vessel loading and unloading

▪ Supply and placement of moisture

protection

▪ Own lifting and other equipment for rolling

stock handling and transportation in many

countries

▪ Tailor made “road trailer to rail” and “road

trailer to mafi trailer” transfer solutions

▪ Development of lifting concepts, design of

flooring and load securing plans,

calculation of lashing requirements for safe

transport by road and ocean voyage

21

Break-bulk and Heavy Lift Chartering, leverage synergies

▪ Reduced risk exposure

▪ Optimized commercial results

▪ Vessel operation competence

Our Unique Value PropositionBreak-bulk and Heavy Lift Chartering

▪ Phase 1 Run full scale HUB operations in

Aberdeen, Houston and Singapore.

Within each HUB we perform:

▪ Inland pickups and deliveries

▪ Line item checking

▪ OS&D management

▪ Packing

▪ Storage (long and short term)

▪ Global forwarding (air, ocean – LCL, FCL

& bulk)

▪ Customs clearance

▪ Entire North Sea shore base operation in

Aberdeen managed by KN

▪ Ultimate objective by the client is to

remove logistics and concentrate on core

activity drilling.

Our Unique Value PropositionBreak-bulk and Heavy Lift Chartering

▪ Project specific voyage and time charter

of vessels, supply boats, barges and

landing craft tanks

▪ Customized technical standards and

economical chartering solutions

▪ Improved terms and commercial results

for our clients through direct negotiations

with operators instead of brokers

▪ Risk mitigation and reduced risk exposure

▪ Leverage control on cargo bookings

through shipment consolidation and

parceling

▪ Minimizing costs for inducement calls or

dead freight

▪ In-house vessel operation competence

▪ Excellent network of K+N approved

carriers

Our BehaviourNo harm to people and environment

HEALTH & SAFETY

▪ Managing hazards and

effects

▪ Incident reporting,

classification, investigation

and follow-up

▪ Communicating and learning

from incidents

▪ Worksite safety tools

▪ STOP work authority

▪ Competencies and training of

employees

HEALTH, SAFETY,

SECURITY, ENVIRONMENT

SECURITY

▪ Regulatory affairs and

international security initiatives

▪ Supply chain security

▪ IT security

ENVIRONMENT

▪ Reduce 15% CO2 emissions

▪ Improvement of fuel intensity

by 1% per year

▪ Reach 10% usage of electricity

from low carbon sources

▪ Increase recycling to 75% as

percentage of all waste

▪ ISO 9001 - Quality

▪ ISO 14001 - Environment

▪ OHSAS 18001 - Health & Safety

▪ SQAS - Safety & Quality

Assessment System

▪ TAPA - Technology Asset

Protection Association

▪ Cargo iQ - Quality Standard for

Air Cargo Industry

QUALITY

▪ Supplier management tool

(SMT)

▪ Integrity Due Diligence (IDD)

▪ Supplier Code of Conduct

▪ Anti Bribery / Corruption

training

▪ Trade Compliance

ETHICS AND

COMPLIANCE

Major Clients of Kuehne + Nagel

Oil & Gas Producers

Category

Drilling

Category

EPC

Category

Oil & Gas Service

Category

Subsea / Marine

Category

Industrials

Category

Marine Logistics – Ship to Ship SolutionsGlobal Door to Deck Delivery Service for Ship Owners, Ship Management Companies, Shipyards and the Marine Supply Industry

Marine Logistics Network

135 passionate experts serving +7500 commercial vessel in 22 locations!

Rig & Maritime Support

▪ Ship Agency / Vessel clearance

▪ Crew Management

▪ Husbandry Services

▪ Chartering of offshore vessels / helicopters

▪ Coordination of the mob/de-mob of vessels

▪ Procurement

▪ On /off hire management of equipment and barges

We deliver an extensive state-of-the-art support service for the offshore industry.

Rig & Maritime support

Introduction to Global Marine LogisticsCargo Flow & General Concept

CUSTOMER

KN ShipsparesProprietary and purpose build order management system

▪ Online system for purchase order control and order management

▪ Retrieving inventory lists of all orders in stock globally

▪ Advising Kuehne + Nagel of new orders & shipments by data entry, data upload or EDI

▪ View shipments status & copies of all commercial and transport documentation

• Marine Logistics offices are available 24/7, 365 and provide fast options & solutions to support the further decision process in case of

emergency

• The dedicated network in key origins of ship spare parts allows reliable first mile support and local interaction

• Our experienced staff hold close relation to all major airlines and specialized overland providers, to obtain quick quotes and options for

pick up and delivery

• Kuehne + Nagel holds relations to all major air charter companies world wide and does have a centralized air charter department in

Frankfurt to ensure fast and reliable feedback

• On Board Currier shipments can be checked either through our internal setup and/or specialized OBC providers

Marine Logistics

Emergency Setup

Marine Logistics

Example: Process On-Board Carrier EmergencyGeneral Information

– Dedicated 24/7 service telephone for customer

– Global pickup 24/7

– KN Staff will be able to act as courier in some cases

– Global agreements with OBC provider

– All offices handle frequently OBC shipments

– Risk and Compliance followed with no deviations

– VISA required countries will be reached

– Overweight payment as per outlay if needed

– Cargo value under and related customs clearance neds to be evaluated

– Below rules of thumb for handcarries in general

Maximum Dimensions: Compartment

80 x 60 x 60 cm (Bulk parcels on request)

Maximum Weight: 32 kg per parcel

Maximum Quantity: Subject to airline and aircraft

Maximum Dimensions: Cabin

55 x 40 x 20 cm

Maximum Weight: 8 kg

Maximum Quantity: 1 Bag in Economy class

2 Bags in Business / First class

• Our dedicated Marine Logistics team have more than 30 years experience in the market

• Combination of Kuehne + Nagel’s global strength and buying power with small flexible teams focusing on your demand

• KN Shipspares – your powerful logistics cockpit

• Corporate Management, extended direct reporting lines and commitment to invest into the product

• Clear accountability and simplified invoicing process according to industry needs

• Integrated setup will decrease admin. fleet cost and increase commercial control

Marine Logistics

Summary

KNTimeCritical - Introduction

Service Fundamentals

▪ Dedicated 24/7/365 team

▪ Immediate response time

▪ Customer relationship management

▪ Real time tracking

▪ Pre-clearance

▪ Clear and transparent pricing

▪ Next Flight Out (NFO), On Board

Courier (OBC), charter, helicopter,

dedicated vehicles

KNTimeCritical was developed to support

our customers in meeting the growing

demands of today's fast-paced business

environment. Our resources and globally

positioned partners means we can offer

unparalleled flexibility and reliability when it

comes to urgent non standard international

deliveries.

All it takes is one phone call, from that

moment on we take personal responsibility

for the safe and timely delivery of your

shipment. Our team genuinely care and

realise that peace of mind, trust and

reliability are what our customers rely on.

KNTimeCriticalCreating superior value through expertise and

customer excellence

Speed, Security, Peace of mind

Emergency and time-critical shipments picked up

and delivered the same day or within 24 hours

wherever possible

Managed through dedicated Time Critical team

based at LHR. Available 24 hours a day, 7 days a

week, 365 days a year

Door-to-door delivery via network infrastructure

and independent service partners working to pre-

defined service standards and performance levels

On-Board Courier (OBC)

Accompanied door to door Air solution

For deliveries that require extra special

care, we provide worldwide on-board

couriers.

These specially trained staff hand-carry

shipments on commercial flights and

personally deliver the shipment, providing

greater safety and peace of mind.

Pickup within 60 minutes of booking

confirmation

Specially trained couriers

Real time tracking

Immediate notification of delivery

Expedited customs clearance

For larger items we offer a secure container

services with accompanying courier

Next Flight Out (NFO)Un-accompanied door to door

Air solution

When speed is paramount our service

ensures shipments are delivered in the

quickest possible time.

Pickup within 60 minutes of booking

confirmation

Earliest delivery possible <24hrs

Max. weight & dims per airline restrictions

Full on-line tracking

Inbound, outbound and triangle shipments

DG shipments

Expedited customs clearance

24/7 365 collection and deliveries

THANK YOU