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2012 U-Ming Corporate Social Responsibility Report| 1

Transport Corp

Corporate Social Responsibility Report

CSR report

2012 CSR report

U-MING MARINE TRANSPORT CORPORATION

U-MING

2012 U-Ming Corporate Social Responsibility Report| i

U-Ming Marine Transport Corp 1

Company Profile 1

Corporate Vision 4

Operations Overview 4

Financial Performance 12

Award & Outstanding Performance 13

Corporate Governance 16

Company Organization Chart 17

Organization Chart for Affiliated Companies 18

Board of Directors 18

Remuneration Committee 19

Internal Control 19

Risk Management 20

Stakeholders Interaction and Operation 15

Table of Contents

Message from the President I

Happy Workplace 23

Recruitment 26

Employee Structure 27

Employee Welfare 30

Advanced Studies for Employees 32

Safe Navigation 34

2012 Work Environment KPI 35

Social Welfare 37

Care for Public Welfare 37

Customer Commitment 40

Service Quality 40

Green Management and Logistics 42

Energy Conservation 42

Reduction of Carbon Dioxide (CO2) 43

Reduction of SOx、NOx 44

46

Green Corporate Culture 47

48

49

Ballast Water Management

(BWM) Systems

Environmental Protection

Related Certification

2012 Green Management

and Logistics KPI

2012 U-Ming Corporate Social Responsibility Report| I

Message from the President 2012 was a very difficult and arduous year for shipping industry due to worldwide slow economic growth and the U.S. and European debt crisis. While facing an unbalanced supply and demand bulk market, U-Ming Marine Transport Corp. upheld its flexible business strategy all the time to not only seize market opportunity in a positive manner but also overcome strict challenge, striving to create steady business performance in the economic recession.

While the impact of global warming is increasing, each individual’s responsibility on

environmental protection is more and more important. As a part of the society, each business

should personally and actively contribute efforts to the protection of the environment. With the

concept of sustainable business, U-Ming Marine Transport Corp. starts with itself to create

green offices internally and to minimize the impact on marine ecosystem caused by vessel

operations externally. U-Ming also enforces relevant environmentally friendly policies in order

to establish deeply rooted green culture. In addition, U-Ming is planning to purchase new

generation vessels which have the features of energy saving and carbon reduction to reduce

greenhouse gas emission and fuel consumption with devoted efforts for making a contribution

to environmental sustainability. Furthermore, U-Ming also takes a part in the “Sustainable

Shipping Initiative” (SSI) to devote energies to the promotion of concept and technology of

environmental protection. Through the forum, U-Ming is capable of cooperating with

advanced shipping companies to jointly bring out the direction for marine sustainable

operation.

Apart from its commitment to environmental protection, U-Ming Marine Transport Corp.

makes every endeavor in community involvement. Long-term cooperation with colleges is an

effort that U-Ming has for providing its professional marine ability and abundant resources to

cultivate college students hoping that they will become the future professionals in the shipping

industry. U-Ming also participates in social welfare activities from time to time in order to give

back to the society and support more disadvantaged groups so that U-Ming will continue to be

the mainstay of social and humane care.

2012 U-Ming Corporate Social Responsibility Report| II

Choo-Kiat Ong President

“Employees are the most valuable asset of the company” is the core value of U-Ming

Marine Transport Corp. Therefore, the company strives to provide generous remuneration and

benefit plan as well as develops sound training programs for colleagues according to their

needs. Each office of the company conforms to relevant laws and regulations by setting up

safety equipments and conducting safety drills periodically. In the meantime, company

activities will be held from time to time in employees’ spare time for promoting better

relationship among colleagues as well as mental and physical health of employees. Provision

of a safe and harmonious work environment is our commitment to all employees.

We understand that corporate responsibility not only is established on shareholders but

also should be a long-term investment for the entire society and environment. U-Ming Marine

Transport Corp. manages the company with honest attitude, fulfills the spirit of U-Ming,

actively plays a part in social responsibility and keeps the channel of communication open for

maintaining good interactive relationship with the stakeholders, and further protects the

environment with concrete actions in order to build sustainable and harmonious ecosystem.

U-Ming Marine Transport Corp. has set the goal of 2012 to have business strategy

developed combining with marine environmental protection as well as energy saving and

carbon reduction. We will continue to make commitment to protect environment and

community in the future by taking actions to demonstrate our decision. Our own expectation is

to improve continually, strive to develop green shipping, fulfill corporate social responsibility

and obligation, and move towards the goal of sustainable business with dedicated efforts.

2012 U-Ming Corporate Social Responsibility Report| III

U-Ming Marine Transport Corp. 1 U-Ming Marine Transport Corp.,

formerly known as Yue Ming

Transportation Co., was established

in 1984, specializing in marine

transportation, trading of vessels

and agency services. U-Ming was

publicly listed at the Taiwan’s Stock

Exchange on December 8, 1990 and

is one of the eight listed public

companies within the Far Eastern

Group.


U-Ming Marine Transport Corp. Company Profile

U-Ming Marine Transport Corp., formerly known as Yue Ming Transportation Co., was established in 1984, specializing in marine transportation, trading of vessels and marine agency services. U-Ming was publicly listed at the Taiwan’s Stock Exchange on December 8, 1990 and is one of the eight listed public companies within the Far Eastern Group.

The main business operation of U-Ming is transportation of raw materials, including cement, iron ore, coal and petroleum, and vessel chartering in order to create diverse profits for shareholders.

Main goods shipped by U-Ming

Coal

Others

Iron ore

Cement

Crude Oil


Cement

U-Ming owns six cement carriers with automatic loading/unloading facilities, forming the most advanced self-loading/unloading fleet to undertake services for Asia Cement’s west-bound cement shipments and export market as well as to provide delivery services for cement and limestone.

Dry bulk goods, such as iron ore, coal, grain and steel products

In order to expand global bulk transport services and develop diverse business, Panamax bulk carriers started to join our operations in 1984. As of the end of 2012, there were nine Panamax bulk carriers, four Handysize bulk carriers and twelve Capesize bulk carriers.

Crude Oil

While holding the strategy of diversified operation and optimized assets, U-Ming purchased one Very Large Crude Carrier (VLCC) “Starlight Venture” and acquired one small chemical carrier through joint venture for a total of two carriers, which enabled U-Ming to officially enter the transport market of crude oil and chemicals.


Till the end of 2012, U-Ming owns 33 vessels, including self-owned and jointly-owned vessels. The company is going to purchase 13 more new vessels in the future, where procurement contracts have been signed, to make the gross Dead Weight Tonnage (DWT) reach more than 5 million tons. The company will continue to retain young age of the fleet, maintain market advantages and market share, replace the old vessels with new ones in good time, and continue to expand the fleet to provide better services.

With professional management team and flexible vessel scheduling, the company is able to gain trust and support from customers of bulk materials, such as iron ore, coal, etc. The company also is dedicated to enhance vessel safety and information management, and to grasp prosperity cycle of bulk shipping market. With excellent performance and high return on shareholders’ investment, performance of U-Ming is well recognized by the industry.

With ample self-owned capital and sound financial structure, U-Ming is headquartered in Taiwan for its business operation. In order to master global planning and development, U-Ming invested in two other companies, the U-Ming Marine Transport (Singapore) Private Limited and U-Ming Marine Transport (Hong Kong) Limited. U-Ming Marine (Xiamen) Service Co., Ltd. also was established in 2011 for rooting in mainland China market. Marine transport company is established through strategic alliance with the industry for expanding business size and moving forward for the sustainable growth of the company.


Corporate Vision

In order to move towards sustainable business, U-Ming Marine Transport Corp. upholds the Far Eastern Group’s motto,

“sincerity, diligence, thrift, prudence and innovation,”

and implements the vision of

“Based on shipping core competency,” “To be world-class logistics and transportation company”, “To be first choice for customer, employees and investors”.

U-Ming is to enhance and improve consensus of all employees to have the Far Eastern Group’s motto deeply rooted in the heart as well as transform principles and thinking into the driving force of business innovation to lead all employees to create values for shareholders and communicate with stakeholders on the subject of U-Ming business spirit.

Operations Overview Business Description

Our main business operation is transportation of bulk goods. U-Ming currently owns various types of dry bulk carriers to take charge of transporting bulk goods, including iron ore, coal, grain and cement. In order to gain greater profit margins, we makes strategic alliance with relevant industry to work together to expand the size of the fleet. U-Ming also steps into the oil tanker market for shipping more profitable commodities. Subsidiaries are established in Singapore, Hong Kong and China. Through the concept and grand view of the Headquarters, U-Ming expands business across the globe.

By replacing the old vessels with new ones and keeping the fleet young, U-Ming is actively planning the expansion of bulk fleet. The goal is set to have the fleet expanded with exponential growth in order for the company business to thrive and grow, hoping that U-Ming will become a world-class logistics company.


Business Scope

Transport of raw materials is the main business of U-Ming Marine Transport Corp. Transport service is our focus for providing our customers with the best services, the safest transport and the best quality.

Service network of our fleet covers areas throughout the world, including Asia, Europe, Africa, America and Oceania. Apart from cooperating with young vessel policy and excellent business team, U-Ming conducts prudent assessment on marine prosperity and situation of market supply and demand, actively engages in strategic alliance with the industry and provides cargo owners with seamless transportation network. The fleet is properly configured to the spot and long-term contract market in order to reduce the risk of market volatility. With stable and high-quality customer base, our service quality is well received by our customers.


Current Fleet

U-Ming Marine Transport Corp. is currently a publicly listed company with the largest deadweight tonnage in Taiwan. The company not only uses diverse vessel type as a competitive advantage but also can share the gains of each vessel type in the booming market and disperse the risk in the depressed market. Till to the end of 2012, there are 33 vessels in the currently operated fleet, including Capesize bulk carriers, Panamax bulk carriers, Handysize bulk carriers, VLCC and self-Loading/Unloading carriers. 13 new vessels, where contracts are already signed, will be added to the fleet in succession in the future to make gross DWT reach more than 5 million tons. U-Ming spares no efforts to keep young kinetic energy, improve transport safety and efficiency, reduce the risk of unexpected situation and guard transport quality for customers. New customized vessels will be ordered successively in the future to prepare for the sustained kinetic energy of growth and to welcome the next wave of good opportunity to maximize profits for shareholders.

Capesize

Capesize bulk carrier has the largest tonnage among bulk carriers. Any bulk vessel with tonnage of more than 100,000 is a Capesize carrier. Its primary transportation commodity is iron ore. Till the end of 2012,, U-Ming owns 9 Capesize bulk carriers and

additional 3 Capesize carriers which are built through joint venture with Hong Kong ship owners. Capesize fleet currently has 12 vessels.


SHIP NAME D.W.T NATIONALITY CAPE EUROPE 152,034 SINGAPORE CAPE CATHAY 152,042 SINGAPORE CAPE OCEANIA 152,025 HONG KONG CAPE VENUS 172,612 SINGAPORE CAPE JUPITER 172,480 SINGAPORE CAPE MERCURY 165,819 SINGAPORE CAPE MARS 175,882 HONG KONG CAPE SATURN 175,882 HONG KONG CAPE GLOBE 206,095 SINGAPORE CAPE SHANGHAI 175,700 HONG KONG CAPE VICTORY 177,000 HONG KONG CAPE ASIA 176,000 HONG KONG

Panamax

Panamax bulk carrier was named because it could pass through the Panama Canal. Its tonnage ranges from 60,000 tons to 100,000 tons. The bulk carrier mainly transports iron ore, coal and grain. Till the end of 2012,

U-Ming owns its own Panamax fleet, including nine bulk carriers: “Cemtex Renaissance,” “Cemtex Sincerity,” “Cemtex Diligence,” “Cemtex Thrift,” “Cemtex Prudence,” “Cemtex Pioneer,” “Cemtex Wisdom,” “Cemtex Venture” and “Cemtex Orient.”

▲Capesize 12vessels


SHIP NAME D.W.T NATIONALITY

CEMTEX RENAISSANCE 71,663 R.O.C. CEMTEX SINCERITY 79,999 HONG KONG CEMTEX DILIGENCE 79,999 R.O.C.

CEMTEX THRIFT 80,230 SINGAPORE CEMTEX PRUDENCE 80,226 SINGAPORE

CEMTEX PIONEER 77,000 SINGAPORE CEMTEX WISDOM 77,000 SINGAPORE CEMTEX VENTURE 74,000 HONG KONG CEMTEX ORIENT 98,000 HONG KONG

Handysize

The tonnage of Handysize bulk carrier ranges from 40,000 tons to 60,000 tons. Till the end of 2012, U-Ming currently owns four Handysize bulk carriers, including “Asian Glory,” “Asian Excelsior,” “Asian Champion” and “Asian Triumph,” providing transport service for dry commodities, such as ore, coal, grain and steel products.

SHIP NAME D.W.T NATIONALITY ASIAN GLORY 45,194 SINGAPORE

ASIAN EXCELSIOR 45,190 SINGAPORE ASIAN CHAMPION 57,000 SINGAPORE ASIAN TRIUMPH 57,000 SINGAPORE

▲Panamax 9vessels

▲Handysize 4vessels


Tanker/ Chemicals Carriers

Very Large Crude Carrier (VLCC) refers to oil tanker exceeding 250,000 DWT, which can transport 2 million barrels of crude oil. “Startlight Venture” is the first VLCC owned by U-Ming. Till the end of 2012, U-Ming Marine Transport Corp. owns one VLCC and one “Gem No. 8” chemicals carrier. The number will continue to increase in the future in order to provide our customers with more diverse services.

SHIP NAME D.W.T NATIONALITY STARLIGHT VENTURE (VLCC) 318,824 HONG KONG

GEM NO. 8 3,382 R.O.C.

Self-Loading/Unloading Carriers

SHIP NAME D.W.T NATIONALITY

ASIA CEMENT NO.1 6,169 R.O.C. ASIA CEMENT NO.2 11,999 R.O.C. ASIA CEMENT NO.3 12,332 R.O.C. ASIA CEMENT NO.5 12,340 R.O.C. ASIA CEMENT NO.6 12,283 R.O.C. ASIA CEMENT NO.7 19,651 R.O.C.

▲Self-loading unloading 6vessels

Till the end of 2012, this type of fleet includes “Asia Cement No. 1,“Asia Cement No. 2,“Asia Cement No. 3,“Asia Cement No. 5,“Asia Cement No. 6” and “Asia Cement No. 7” for a total of six vessels, which form the self-loading/unloading carrier fleet exclusive to U-Ming.

▲Tankers 2vessels


VESSEL TYPE NUMBER OF VESSEL Capesize Bulk Carrier 12 Panamax Bulk Carrier 9 Handysize Bulk Carrier 4 Oil Tanker/Chemicals Carrier 2 Self-Loading/Unloading Carrier 6 Orderbook 13 TOTAL 46 CARRYING CAPACITY 1,000 TONNES Iron Ore 11,510 Coal 10,593 Cement 2,697 Crude Oil 1,310 Others 618 TOTAL 26,728

Operation and Development (Continued) As one of the leaders of professional marine logistics service industry in

Taiwan, U-Ming Marine Transport Corp. is able to instantly master market information through the use of internal e-platform even under the condition of oversupply in the current market. A barrier-free information flow intranet is created via online real-time communication and sharing. The system of “Customer Relationship Management” (CRM) also is established to understand customer needs and industry status in order to adjust strategy at any time so as to improve operational efficiency and maintain the best condition under any circumstances.

U-Ming Marine Transport Corp. takes advantage of preferential measures on taxation offered in Taiwan and overseas subsidiaries to effectively reduce the effective tax rate of the company, and to control the risk of exchange rate and interest rate by attaching close attention to the trend of foreign currency exchange rate and interest rate. In addition, English training program for staff is held internally and periodically in order to enhance second language skills of staff and cultivate professional and outstanding personnel to improve service quality. Apart from training ashore and onboard talents, U-Ming Marine (Xiamen) Service Co., Ltd. also is established in Xiamen to expand operational scope in mainland China. In order to ensure the safety of transport, U-Ming conducts maintenance of vessels on a regular basis, improves working environment on the ship and strictly abides by port inspection to reduce the risk of an accident in the transport process.


Operation and Development(Ending) U-Ming Marine Transport Corp. takes advantage of preferential measures on

taxation offered in Taiwan and overseas subsidiaries to effectively reduce the effective tax rate of the company, and to control the risk of exchange rate and interest rate by attaching close attention to the trend of foreign currency exchange rate and interest rate. In addition, English training program for staff is held internally and periodically in order to enhance second language skills of staff and cultivate professional and outstanding personnel to improve service quality. Apart from training ashore and onboard talents, U-Ming Marine (Xiamen) Service Co., Ltd. also is established in Xiamen to expand operational scope in mainland China. In order to ensure the safety of transport, U-Ming conducts maintenance of vessels on a regular basis, improves working environment on the ship and strictly abides by port inspection to reduce the risk of an accident in the transport process.

However, U-Ming does not forget its responsibility as a social corporate to protect marine environment while facing challenging and tough market conditions. U-Ming develops comprehensive plan for its ships to have the best economic speed in order to save fuel consumption. Replacement of old vessels with new ones also is conducted for its fleet in a timely manner. U-Ming continues to expand the size of its fleet in order to increase operational efficiency of the fleet and maintain a young fleet. At the present time, the company is gradually taking the action of replacing old ships as well as purchasing and chartering ships in good time. In the meanwhile, the company is also enhancing cooperation plans with relevant good businesses and assessing sound constitution corporate that is suitable for purchasing shares or mergers and acquisitions. Through asset renewal and integration synergy plus enhancement of cost control and management of reducing risk, U-Ming is able to improve overall business performance, strengthen industry competitiveness and continue to deepen the scale of business service in the market.

It is our hope to provide customers with more diverse choices and better services through upgrades of our fleet and business expansion in the future.

▲President

ONG, Choo Kiat


Financial Performance

Since its stock being listed, U-Ming Marine Transport Corp. has demonstrated stable growth in financial performance to truly fulfill its commitment to shareholders, and will continue to carry out the objective of maximizing shareholders value and move towards sustainable operations.

Operating Income Earnings Per Share (NT$100 million)

(NT$1)

Cash Dividend Yield Dividend Payout Ratio

6.6 7.78

3.18 2.1

0123456789

2009 2010 2011 2012

9% 8%

6% 5%

0%1%2%3%4%5%6%7%8%9%

10%

2009 2010 2011 2012

76% 64%

94%

119%

0%

20%

40%

60%

80%

100%

120%

140%

2009 2010 2011 2012

125.8 113.7

86.8 79.6

0

20

40

60

80

100

120

140

2009 2010 2011 2012


Award and Outstanding Performance

U-Ming Marine Transport Corp. makes every endeavor to fulfill the commitments to shareholders and examines internal performance in order to have continuous improvement. Over the years, U-Ming always stays humble when facing affirmation from the outside world and continues to make extra efforts. U-Ming unites centripetal force of all colleagues of the company through detailed planning and implementation to create a win-win opportunity for business and environment sustainability.

1990-1999

1. 1990 – First Prize of Ocean Regular Route Award presented by MOTC 2. 1991 – Outstanding Vessel Carrier awarded by MOTC 3. 1992 – Medals awarded by MOTC for outstanding performance, operational

merit and fleet expansion 4. 1993 – Awards presented by MOTC at the 39th Maritime Festival, including

Outstanding Performance Award, Outstanding Fleet Expansion Award, Model Maritime and Port Staff Award and Model Seafarer Award

5. 1994 – Medal and Certificate of Third Class Transport Service awarded by MOTC at the 40th Maritime Festival

6. 1996 – “Maritime Rescue Award” awarded to “CEMTEX ORIENT” and “Cemtex Frontier” by the U.S. Coast Guard

7. 1996 – Fleet Expansion Excellence Award awarded by MOTC 8. 1997 – Maritime Rescue Award and AMVER Flag awarded by American

Institute in Taiwan 9. 1998 – Fleet Expansion Excellence Award awarded by MOTC at the 43rd

Maritime Festival 10. 1999 – Award of Vessel Carrier Fleet Expansion awarded by MOTC

2000-2009 (Continued)

11. 2002 – Outstanding Contribution Award granted by Keelung Harbor Bureau 12. 2003 – A plaque with inscription “Feasible Act of Righteousness” was presented

by the rescued crew due to the search and rescue effort for a vessel in distress made by ASIA CEMENT NO. 1

13. 2005 – Ranked No. 59 in the “Asia’s 150 Best Companies” selected by the “BusinessWeek Asian Edition”


2000-2009 (Ending) 14. 2005 – “Forbes Asia” announced the list of “Asia’s 200 Best Under A Billion”

companies in the Asia Pacific region and U-Ming Marine Transport Corp. was awarded the 200 Best Companies Award/Special Award

15. 2007 – “Marine Money” presented the award “No. 6 among 2006 Asia’s Best Shipping Companies”

16. 2008 – Received “Business Growth Excellence Award” from MOTC at the 54th Maritime Festival celebration

17. 2008 – Received award “No. 2 among 2009 Asia’s Best Shipping Companies” from “Marine Money”

18. 2009 – Received “Business Growth Excellence Award” from MOTC at the 55th Maritime Festival celebration

2010-2012 19. 2010 – Received “CG6005 Corporate Governance System Evaluation

Certification” issued by Taiwan Corporate Governance Association 20. 2010 – U-Ming Marine Transport Corp. was selected as one of the “2010

Taiwan’s Most Admired Companies” by Commonwealth Magazine 21. 2010 – Received award “No. 3 among 2010 Asia’s Best Shipping Companies”

from “Marine Money” 22. 2011 –“2010 Development of Green Shipping Excellence Award” and “2010

second prize for number of students and number of days for providing onboard internship to domestic maritime college students” were awarded by MOTC

23. 2011 – Received Green Flag Award from the U.S. Port of Long Beach 24. 2011 – U-Ming Marine Transport Corp. was ISO-14001:2004 certified in this

year, which enhanced the international image of U-Ming Marine Transport Corp., expanded marine transport market and showed evidence of the company’s continuous contribution to environmental protection

25. 2012 –“2011 Development of Green Shipping Excellence Award” and “2011 third prize for number of students and number of days for providing onboard internship to domestic maritime college students” were awarded by MOTC

▲Certification of Corporate Governance System CG6005


Stakeholders’ Interaction and Operation 2 Stakeholders are divided into

investors, customers, employees,

suppliers, local communities,

non-profit organizations and the

government.


Stakeholders’ Interaction and Operation

Stakeholders of U-Ming Marine Transport Corp. include investors, customers, employees, suppliers, local communities, non-profit organizations and the government. By establishing transparent communication channel, U-Ming Marine Transport Corp. understands the needs of stakeholders and develops objective and direction of corporate social responsibility according to the needs of stakeholders in order to achieve a more comprehensive communication.

Object Key Issues Means of Communication

Investors General Shareholder, Corporate Shareholder, Rating Agency

1. Profitability 2. Transparency of information

disclosure 3. Corporate governance 4. Implementation of corporate

social responsibility

1. Shareholders’ Meeting 2. Investor Conference 3. Company’s annual

report 4. Regularly publish

information at the Observation Post

Customers Cargo Owner, Charterer

1. Shipping / Chartering Price 2. Service quality 3.Business integrity

1. Visit customer regularly

2. Exclusive public mailbox for communication

Employees Management Level, General Employee

1. Remuneration 2. Employee benefits 3. Work environment 4. Career development

1. Public mailbox of related offices

2. Company internal website

3. Employee Welfare Committee

Suppliers Fuel Supplier, Parts Supplier, Material Supplier,

1. Price competitiveness 2. Environmental Management

1. Supplier evaluation 2. Contract and

specification

Local communities Non-profit organizations (NGOs)

Local non-governmental organization, International non-governmental organization

1. Social welfare feedback 2. Donation 3. Environmental conservation

Refer to Pages 30 – 40 of 2012 U-Ming CSR Report

Government Supervising Agency Governmental units at all levels

1. Comply with laws and regulations

2. Participation in public policy 3. Local feedback

1. Company’s annual report

2. Regular communication by related units


Corporate

Governance 3 The main purpose of corporate

governance is to establish trust

between the company and

shareholders and to supervise

whether the result is in line with

expectations through open

mechanism, and to protect

rights and interests entitled to

shareholders.


Corporate Governance

The governance structure of U-Ming Marine Transport Corp. is shown in the following diagram. The main purpose of corporate governance is to establish trust between the company and shareholders and to supervise whether the result is in line with expectations through open mechanism, and to protect rights and interests entitled to shareholders.

U-Ming has passed the criteria of Corporate Governance SystemCG6005, and certification has been awarded as well. U-Ming develops its own best practice principles of corporate governance in accordance with the “Corporate Governance Best-Practice Principles for TWSE/GTSM Listed Companies,” and the proposal of “U-Ming Marine Transport Corp. Corporate Governance Practice” has been approved by the Board of Directors on March 17, 2011. The Board of Directors and high level management executives actively promote corporate governance to focus on core business, carefully evaluate risk, develop plan for replacing old vessels with new ones in the fleet and enhance market competitiveness. In addition, Chairman of the Board attaches great importance to internal audit. Therefore, an impetus has been positively given to the internal audit through the Group’s internal audit.

U-Ming has excellent business management and has been recognized by international investment evaluation organization to be included in the MSCI constituent stocks. U-Ming truly repays the society by holding welfare activities to fulfill its corporate social responsibility. A Remuneration Committee is set up to protect shareholders equity in order to establish a complete system of corporate governance.


Marine Division

Marine Dept.

Engineering & Materials

Dept.

Labor Safety & Health Office

Business Division

Business Dept. I

Business Dept. I

Finance Division

Finance Dept.

Planning Dept.

Administrative Division

Accounting Dept.

Secretary Dept.

Human Resources

Remuneration Committee

Board of Directors

Chairman Vice Chairman

Shareholders’ Meeting

Supervisor

President Auditing

Dept.

Company Organization Chart

▲Company Organization Chart


Organization Chart for Affiliated Companies

Board of Directors

A Director of the Board plays a significant role in implementing the corporate governance. The responsibility of a Director is to determine business direction of a company and assume risk of operations to seek maximization of shareholders’ profits. Currently there are nine Directors and three Supervisors at U-Ming Marine Transport Corp. A total of four Board Meetings were held in 2012, and Directors and Supervisors had an attendance rate of 96%. Under the leadership of Chairman Douglas Hsu, each Director performs individual duty, adheres to integrity and shows high commitment to the company to act for the overall interests and make careful and accurate judgment. Remuneration Committee is established and internal audit is conducted for the protection of shareholders equity. A Director also is to provide relevant information and resources to assist managerial personnel in making the best decisions to maximize interests of shareholders.

Chairman Director Supervisor Shu-Tong Hsu Chee-Chen Tung,

Yun-Peng Chu, Wen-Yen Pan, Tsai-Hsiung Chang, Kun-Yen Li, Douglas Jefferson Hsu, Choo-Kiat Ong, Kuan-Chun Lee

Shu-Ping Hsu, Ruey-Huey Shao, Tzu-Pong Chang

U-MING MARINE

TRANSPORT

U-Ming Marine Transport

(Singapore) Pte

Yue-Li Investment Corporation

Yue-Tung Investment Corporation

Falcon Investment Pte.

Ltd.

Eagle Investment Pte.

Ltd.

U-Ming Marine Transport (Hong

Kong) Ltd.

U-Ming Marine (Xiamen) Service

CO., LTD.

Overseas Shipping Pte.

Ltd.

▲Organization Chart for Affiliated Companies Chart


Remuneration Committee

Remuneration Committee primarily formulates and reviews remuneration policy

for the company directors and managers. The committee establishes sound

remuneration management system and improves corporate governance structure.

U-Ming set up the Remuneration Committee on December 26, 2011 in accordance

with laws. Two meetings were held by the Remuneration Committee in 2012 with

100% attendance rate. Subjects of the meeting mainly focused on remuneration plan

of company employees as well as disclosure and interpretation of salary status of

senior management executives. The committee also ensures pursuant to laws that

there is a reasonable connection between salary and performed service. Remuneration

of the company’s managers and amount of employees’ bonus are prepared based on

position and performance and submitted to the Remuneration Committee for

deliberation prior to delivering them to the Board of Directors for resolution.

Internal Control

An Auditing Department is set up in the company directly under the Chairman of

the Board. Auditing Department has one department head and two staff members. The

objective of auditing is to ensure operational effectiveness and efficiency to reach the

target level, check on reliability of financial report, monitor the company to be in

compliance with relevant laws and regulations as well as assist public company Board

of Directors and management level executives to understand the effectiveness of the

internal control system. Internal control mechanism does not concentrate attention on

a workaround for an error event after its occurrence but rather focus on the positive

strategic management activity to enhance corporate value and competitiveness. The

role of internal audit is a consulting service which is to perform auditing through

inspection and assist the company to adjust strategic objectives through risk

assessment. Internal control of the company is divided into nine circles, including

sales and receivables cycle, procurement and payment cycle, shipping service cycle,

payroll cycle, financing cycle, fixed asset cycle, investing cycle, R&D cycle and

computer systems cycle. Departmental cooperation is required in order to complete

internal control works, such as auditing. The internal control mechanism can be used

to help revise the current system to make it more efficient, delete inappropriate


procedures of organizational operating process, create electronic work environment,

strengthen computer auditing, quantify auditing results as well as track and confirm

improvement conditions. A total of 45 cases needing improvement were found in the

2012 auditing, and improvement was performed on all 45 items. It not only improves

operational efficiency and work quality but also saves costs and truly preserves assets.

The Statement of Internal Control, which is issued annually, shall truly establish,

implement and maintain internal control system. The statement shall provide

reasonable assurance on achieving objectives, such as operational effectiveness and

efficiency (including profitability, performance and security of assets), reliability of

financial reports and regulatory compliance.

Assessment of the effectiveness of the internal control system’s design and

implementation shall be conducted in accordance with the assessment items of the

internal control system effectiveness, which are stipulated in the “Regulations

Governing Establishment of Internal Control Systems by Public Companies.” The

assessment items of internal control system adopted by the “Regulations” divide

internal control system into five constituent elements according to the process of

management control: 1. Control environment 2. Risk assessment 3. Control activities

4. Information and communications 5. Monitoring.

Risk Management

In order to strengthen corporate governance and move towards sustainable

operation, U-Ming Marine Transport Corp. actively integrates all possible potential

risks that may cause on operation and profitability. In the light of corporate vision and

commitment to social responsibility, the Board of Directors approved and enforced

the Risk Management Policy and Measure on March 17, 2011, and properly

quantified the risk to facilitate beforehand prevention.

U-Ming uses the Control Self-Assessment System (CSA) annually to conduct statistical analysis for key risk indicators (KRI) and risk assessment of various operations, reports action program of contingency plan to Self-Assessment Committee and handles relevant policies and procedures in accordance with the company’s “Emergency Response Measures for Offices” and ISM Code on “Shipboard Emergency Plan.”


Risk management organizational structure

The organizational structure of U-Ming Marine Transport Corp. risk management is managed by relevant management unit according to the nature of operation, and Auditing Department will conduct assessment on existing or potential risk of each operation. Annual risk-oriented auditing plan is formulated based on the assessment result. Management unit for each risk is described respectively as follows:

Board of Directors

Board of Directors is the highest unit of corporate risk management. The objective of the Board of Directors is to promote and implement overall corporate risk management by following relevant laws and regulations. It is also necessary for the Board of Directors to have a clear understanding of the risk that bulk transport operation faces, ensure the effectiveness of the risk management and assume the ultimate responsibility for risk management.

Auditing Department

Auditing Department is an independent department of the company directly under the Chairman of the Board. The duty of the department is to ensure effective implementation works of internal control system in order to fulfill functions of risk management and promote sound management of the company. In addition, Auditing Department provides recommendations for improvement in a timely manner and ensures that internal self-assessment work can be implemented continually and effectively and can be used as the basis for review and revision of internal control system.

Finance Department

Finance Division makes short-term, mid-term and long-term plans for finance and investment strategies of the company and provides financial consultation and risk assessment for investment plan to top management executives. Operational risk assessment on investment object and management of investment portfolio also are the major tasks of Finance Division on the subject of investment risk. As for the risk of exchange rate and interest rate, derivative financial instruments, such as swaps, may be used to hedge risk. In the insurance planning, Hull Insurance, War Risk Insurance and P & I Insurance provided by the Ship Owners’ Mutual Insurance Association are purchased to avoid and transfer operational risk. Other insurance plans are also considered based on the needs of operations, such as Kidnap & Ransom Insurance, Loss of Hire Insurance, Charterer’s Liability Insurance, etc.


Business Department

Head of the Business Division assumes the responsibility for the first line risk management. In addition to taking charge of analysis and monitoring of relevant risk of its subordinate units, Business Division also ensures that risk control mechanism and procedures can be effectively implemented.

Engineering & Materials Department

Engineering & Materials Department strictly and meticulously supervises the construction of new vessels in order to reduce the operational risk of new vessels. The department also reinforces repair and maintenance of the existing fleet and fully grasps the state of ships and shipyards in order to reduce the risk of ship malfunction and increase the useful life of the fleet so as to bring the maximum turnover efficiency into full play.

Labor Safety & Health Department

In order to comply with the regulations of International Safety Management Code (ISM

Code) and safety management policies, including “holding the spirit of sincerity, diligence, thrift

and prudence,” “enhancing safe operation of ship,” “ensuring the safety of life at sea” and

“avoiding pollution of marine environment,” U-Ming has established the Labor Safety & Health

Office to take charge of safety and health services as well as safety inspection of ships in order to

provide safe ship operation and safe work environment. For the foreseeable danger, the office

establishes prevention measures to further reduce operational risk and enhance customer trust.

Marine Department In order to make on board and ashore personnel get familiar with their work environment,

improve safety management and reduce risk, ISM Code training must be conducted regularly

each year in accordance with regulations. All types of ships owned by U-Ming have completed

security responsibilities in accordance with the regulations of the “International Ship and Port

Facility Security Code” (ISPS Code) in order to be in compliance with the regulations of the

International Convention for the Safety of Life at Sea (SOLAS). Certification is also issued by

relevant unit so that on board and ashore employees will familiarize with their security duties and

security measures to prevent illegal activities.

The efforts of implementing ISO-14001 Environmental Management System Certification and

overall fleet environmental quality system operation can demonstrate our commitment to the

environment and fulfillment of our responsibility as part of the global village. Marine Division

also establishes the MLC2006 System to ensure that U-Ming is capable of taking care of all the

health and welfare of the fleet crew.


Happy Workplace 4 U-Ming truly believes that

employees are the greatest asset

of the company. Therefore,

U-Ming establishes long-term

plan to train outstanding talents

and creates a milestone of the

industry with employees

together. Without the support of

excellent staff, U-Ming will not

be the same.


Happy Workplace

Since its establishment in 1968, U-Ming has truly believed that employees are

the greatest asset of the company. Therefore, U-Ming sets up long-term plan to train

outstanding talents and creates a milestone of the industry with employees together.

Without the support of excellent staff, U-Ming will not be the same. A good work

environment is a commitment that U-Ming has for employees, and generous benefit

plan is to show solicitude for the hard works of employees. With the spirit of sincerity,

diligence, thrift, prudence and innovation, U-Ming nurtures honest corporate culture

and creates a quality workplace in order to improve work efficiency of employees.

With a clear vision and a solid core values, U-Ming is able to agglomerate centripetal

force of staff and lead employees to move towards sustainable business.

Code of conducts is explicitly stated in the “Working Rules” of U-Ming Marine Transport Corp. The focus of the management is placed on employees who should be self-disciplined and dedicated to duties. Department heads are responsible for training, leading and evaluating their staff so that employees fully understand code of conducts. Main contents of the rules are given as follows:

Working Rules(Continued)

1. All employees shall comply with all legal regulations of the Company and

reasonable guidance from their supervising personnel. A “Loyalty Statement”

shall be signed by all employees each year. Any employee shall not own

business in private or serve concurrently any job outside the Company without

approval by the President.

2. Managers at all levels shall conscientiously check on work attendance of their

staff in accordance with regulations and shall not practice favoritism and be

deceived. 3. When performing their duties, employees shall do their best to seek certainty

and shall not fear difficulty, try to get round, shift responsibilities onto others or delay without cause.


Working Rules(Ending)

4. Employees shall be dedicated to their duties and work hard, and shall not

disclose any business-related secret or other information. Without approval by

the person-in-charge, employees shall not show documents, account books and

electronic files to a third party, or shall not arbitrarily make any job-related

statement and conversation. New employees shall sign “Employee Agreement

for Using IT Equipment and Information Software” to truly abide by relevant

laws and regulations as well as network specification.

5. Employees shall properly use and keep public property, and shall not waste,

destroy, alter or take illegally for private use.

“Regulations Governing the Declaration of Donated Gifts Received by Employees” have been developed by U-Ming for establishing integrity and ethics directions for our employees in order to maintain absolute honesty and be free from corruption. It is also enacted to prevent operating activities involving the risk of acts without good faith. In addition, all political donation behaviors of the company shall strictly comply with provisions of the “Political Donations Act” promulgated by the Ministry of the Interior. The company operates based on the spirit of honesty and strictly abides by provisions of the Company Act, Securities and Exchange Act, Business Entity Accounting Act and Political Donations Act, and implements integrity management related specifications.

Employee is the most valuable asset of the company and is an essential element of operation. Provision of safe work environment is the responsibility of U-Ming Marine Transport Corp. and also a commitment to employees. Apart from developing safety policy, safety equipments also are installed and stored in accordance with government regulations. Safety drill is conducted periodically in order to enhance employee safety awareness. Safe environment coupled with employee’s own safety awareness can greatly reduce the risk at work so as to improve work safety. Employee health check also is conducted regularly to track health of employees. In addition, incident of sexual harassment is strictly prohibited at workplace, and severe punishment mechanism is also developed to prevent occurrence of the incident.

http://law.moj.gov.tw/Eng/LawClass/LawContent.aspx?PCODE=D0020049


U-Ming Marine Transport Corp. Safety Measures

Safety Measures

1. A Labor Safety & Health Office has been established by the company and

various safety measures, such as fire control equipments, emergency

evacuation route and notification system, are established as well. In the

meanwhile, for the prevention of occupational accidents and protection of

the safety and health of employees, “Code of Practice for Occupational

Safety and Health” is developed by the company in accordance with

provisions of the “Labor Safety and Health Act” and “ISM Code,” and

employees are required to truly abide by these codes.

2. In order to protect the safety and life of employees, maintenance on elevator

fire control equipments is conducted on a regular basis and access control

management is enhanced. In addition, Labor safety training and firefighting

drill is scheduled regularly.

3. Internal head of the company will take turns to serve as general duty officer

and is on 24-hour standby. If unexpected situation occurs, duty officer will

contact related personnel of the company as soon as possible to take care of

the emergency.

4. Safety equipments will be installed by the company in accordance with

regulations. Stacking stuff in the aisles is prohibited to keep passageways

unblocked in order to avoid unsuccessful escape upon occurrence of

unexpected conditions. Physical C

heckup

Health check should be implemented on a regular basis in accordance with

laws and regulations, and health management should be conducted based on

results of health check. Health talks also should be held occasionally to enhance

employees’ health concept.

Gender R

elations

In order to build harmonious relations between different genders, prevent

sexual harassment behaviors from employees, protect rights and interests of

employees and provide congenial and safe work environment, the company has

established measures of prevention, correction, complaint and punishment of

sexual harassment in order to protect employees.


Recruitment

U-Ming Marine Transport Corp. is looking for employees to cherish the same ideals and take the same course, and puts the right person in the right position in order to allow employees to play a meaningful role in the proper position and grow. U-Ming Marine Transport Corp. upholds the corporate spirit of “sincerity, diligence, thrift, prudence” and “innovation.” To strengthen the company’s future development ambitions, U-Ming needs to attract more outstanding talents who have a common goal to work together with U-Ming to create a successful future and a win-win situation for the company and employees.

Cooperative Education Programs

In order to cultivate maritime talents, U-Ming Marine Transport Corp. cooperates with National Taiwan Ocean University, National Kaohsiung Marine University and Taipei College of Maritime Technology to hold seminars and offer special industry-university cooperative classes. Arrangements are made for several department heads of the company to give lectures on their practical experiences at the schools. Cooperation also is made with Yuan Ze University to offer scholarship and guaranteed jobs to students for three years to promote social well-being.

On board internships are provided to domestic students annually. Staff will be assigned by the company to help students learn, allowing students to have an early experience of workplace culture as well as good interaction and learning with U-Ming work team. As a result, “2010 second prize for number of students and number of days for providing onboard internship to domestic maritime college students” was awarded by MOTC in 2011.

Job Affairs on Campus(Continued)

Training of new blood also is a major part in human resource management strategy of the company. With constantly changing environment of the times, the atmosphere of the company will become younger and more energetic through the ideas and creativity of freshman to synchronize with the world. By holding job fairs in the campus, the company is able to discover talented people, hoping to find talents like diamonds to be polished, who can work hard together with U-Ming and move towards the sustainable management of the future.


Job Affairs on Campus(Ending)

In addition, recruiting talented individuals through network resources also is conducted by the company. The company will not miss any chance of discovering talents, hoping that outstanding people will join U-Ming. Through trainings offered by U-Ming, talents in the same camp can be the right persons in the right positions. It is our expectation that these talented people will become the shinning diamonds making efforts together with U-Ming for the industry.

To be in compliance with Labor Standards Act, U-Ming Marine Transport Corp. does not employ any child labor under the age of sixteen.

Employee Structure

The centripetal force of U-Ming Marine Transport Corp. employees is strong.

Stable and healthy manpower structure lays a solid business foundation for U-Ming

Marine Transport Corp. The Headquarters of the company is located in Taipei City.

Subsidiary companies are established in Singapore, Hong Kong and Xiamen, and

there are also the founded Yue-Li Investment Corporation and Yue-Tung Investment

Corporation. There are 85 ashore employees and 1047 on board and ashore seafarers,

together for a total of 1132 employees.

▼U-Ming’s amount of employees

Office 85

Ship 1047


Office

Gender

Age

Educational B

ackground

64%

36%

Ratio

Male Female

54

31

0

10

20

30

40

50

60

No.

Male Female

7

19

25

21

13

0

5

10

15

20

25

30

No.

20~25 26~35 36~45 46~55 56+

1

32

43

9

0

10

20

30

40

50

No.

Ph.D Master Bachelor High School

1.2%

37.6%

50.6%

10.6%

Ratio

Ph.D Master

Bachelor High School

8.1%

22.1%

29.1%

27.9%

15.1%

Ratio

20~25 26~35 36~45 46~55 56+


Ship

Crew

Grade

Age

Nationality

464

583

0

100

200

300

400

500

600

700

No.

Officers Ratings

44%

56%

Ratio

Officers Ratings

39.0%

26.8%

16.5%

12.4%

4.9% 0.4% Ratio

30- 31~40 41~50 51~60 60~65 65+

408

281

173 130

51 4

050

100150200250300350400450

No.

30- 31~40 41~50 51~60 61~65 66+

327

598

122

0

100

200

300

400

500

600

700

No.

Taiwan China Philippine

31%

57%

12%

Ratio

Taiwan China Philippine


Employee welfare

Employees have always been the most valuable asset of U-Ming Marine Transport Corp. By upholding the philosophy of pursuing staff benefits and shareholders’ equity, the company strives to provide employees with the best benefits. Besides showing solicitude for their hard works, the company also wants to improve morale and efficiency of employees, and retains outstanding colleagues to turn talents into the best engine of corporate growth. U- Welfares Ming Marine Transport Corp. not only provides sound benefit policy to improve colleague productivity and morale but also maintain quality of colleagues’ family life to encourage them to achieve the goal of work-life balance.

Welfares(Continued)

1. The company shows respect for employees on the rights conferred by Labor Standards Act to provide days for personal leave, sick leave, maternity leave and bereavement leave pursuant to laws. In order to show solicitude for employees, all sick leaves shall be paid leaves, which is better than the stipulated provisions of the Labor Standards Act. Furthermore, the company offers wedding cash gifts for expressing congratulations and showing cares for colleagues’ dependents.

2. In Addition, the company does not prevent or hinder employees’ freedom of association, and discrimination is absolutely prohibited in order to show fair and equitable treatment of employees of different gender and country.

3. Gift certificates for the three major Chinese holidays, birthday gifts and employee bonus are offered by the company annually. In addition, scholarships for employees and their children are provided by the company. Special project bonus system also is provided in coordination with different projects.

4. Safe and friendly work environment is provided to protect the rights and interests of employees. The company has established sexual harassment prevention measures, complaint, correction and punishment system in order to protect employees from sexual harassment.

▲2012 Christmas themed party


Welfares(Continued)

5. In order to process employee benefits, the company has established the

Employee Welfare Committee according to laws to coordinate and promote

welfare affairs. The company also encourages employees to form associations

to organize activities, including recreational sports, employee travels and

festival gifts and greetings in recognition of services rendered, so that

employees in their spare time can take into account the physical and mental

health as well as the promotion of friendship among colleagues. In order to care

for colleagues’ dependents, scholarships for colleagues and their children and

subsidies for weddings, funerals, celebrations and hospitalization are

established as well by the company.

6. The company will make arrangement to create a festive atmosphere for

festivals and holidays, such as the decorative landscaping for Christmas and

Chinese New Year. In addition, all employees are called on to dress for the

occasion, and food for the occasion is distributed to employees for certain

festivals and holidays, such as glutinous rice dumplings for the Lantern

Festival, to make employees feel that the company is like their home which is

nice and warm.

7. In addition to Labor Insurance, Employee Insurance and National Health

Insurance which are required by laws, the company also provides group life

insurance for employees in order to protect their rights and interests.

8. In coordination with policies made by affiliated companies, the company

cooperates with nearby kindergartens on behalf of the Group to develop

preferential measures for childcare services.

9. A restaurant for employees is established by the company serving a wide range

of breakfasts and lunches. Employees can dine at the restaurant for lunch or

bring their own lunches. Microwave, steaming machine and meal vouchers for

shopping centers also are available at the restaurant. Employees may select

meal of their choice at the restaurant to enjoy personalized service.


Welfares(Ending)

10. Seafarers of the company work at sea all year round. The company has completed MLC2006 system certification. In order to have them work without distraction, apart from offering reasonable remuneration and benefits, the company also attaches importance to crew members’ work environment, diet and daily life, purchase of equipment for leisure activity and harmonious employee-labor relations.

11. Employees can enjoy shopping discounts and multiple promotional offers from affiliated companies of the Group.

12. 12. In accordance with provisions of the Labor Pension Act, the amount of appropriated labor retirement fund of employees shall be recognized as expenses of the year during the service period of employees. Six percent of employee’s monthly wage shall be appropriated to an employee’s individual labor pension account at the Bureau of Labor Insurance.

Advanced Studies for Employee

Opportunities for advanced studies In today’s globalized and competitive environment, how to enhance the capacity and efficiency of employees has become one of the corporate core values. U-Ming Marine Transport Corp. provides employees with opportunity of advanced study in order for them to constantly learn and grow by themselves, and thereby improves business efficiency and increases competitive advantage. There are different types of advanced studies, including extensive type, hierarchical type, coordinating type, practical type and practice type. With diverse and rich learning resources, the company expects to enhance the quality and capacity of manpower.

Opportunities for advanced studies(Continued) 1. Some colleagues are selected to take EMBA courses offered by the Far Eastern

Group University, which is established by collaborative efforts of the Far Eastern Group and Yuan Ze University, in order to cultivate management professionals.


Opportunities for advanced studies(Continued) 2. In accordance with the needs of business and work of colleagues annually,

some colleagues are selected based on their development potential to participate in various study programs of annual training project offered by Learning And Development Center of Far Eastern New Century in order to achieve the objectives of combining training and practice as one.

3. In order to expand international perspective of colleagues and enhance abilities of reading, conversation and letter writing of business English, some colleagues are selected based on needs of work and proficiency in English to take courses in order to assist employees in career development.

4. In order to enhance professional capabilities of colleagues and learn the latest information, some colleagues are selected from time to time to attend various professional courses offered by related training organizations in order to improve work efficiency.

5. New employee training is conducted annually in order to pass down corporate culture and business philosophy and fulfill the objectives of nurturing talents.

6. A knowledge base of regulations has been established by the company at the corporate website in order to facilitate learning of new knowledge for employees to improve work efficiency and enhance individual competitiveness. The latest governmental ordinances, rules, regulations, and professional knowledge will be filtered and organized for browsing and inquiry.

7. Seminars are scheduled irregularly by the company in order to promote KPI Management and Remuneration Evaluation System. Articles involving changes also are available for sharing in order to achieve full communication and enhance cognition among colleagues.

8. 62 classes were offered for professional functions and training courses for employees in 2012, for a total of 1,324 course hours and NT$633,000 in total expenses with 36 participating employees.

9. ISM Code educational and fire control safety training are conducted on a regular basis by the company in accordance with laws in order for on board and ashore crews to get familiar with their work environment and enhance safety management. ISM Code training programs were offered 3 times by the company in 2012 for a total of 18 course hours and NT$238,000 training expenses. 115 ashore crews have attended the training courses.


Safe Navigation

A lot of force majeure events may occur in the course of sailing. The complicated and changeable marine environment, unexpected weather condition and homesickness caused by being unable to go home due to work can affect the safety of seafarers for a long run. In recent years, safety of the crew cannot be 100% guaranteed due to frequent pirate attacks despite armed police force. The crew is one of the important assets for operating a shipping company. Therefore, how to ensure the safety of the crew and sailing as well as to provide a safe work environment is one of the focal points in shipping and transportation management.

Safety Measures(Continued)

1. To develop safety management policies, establish sound safety culture and improve safety awareness of the crew in order to ensure the safety of life at sea

2. To truly enforce regulations of the SOLAS Code, improve environmental safety on board, establish safe work environment, file perils of the sea in the Sea Safety System instantly and truly record and archive relevant data in order to track conditions of case handling and related expenses

3. ISM Code educational training and fire control safety training are conducted on a regular basis by the company in accordance with laws in order for on board and ashore colleagues to get familiar with their work environment and enhance safety management. ISM Code training programs were offered three times by the company in 2012.

4. Severe weather conditions not only increase the risk of navigation safety but also directly affect the safety of the crew. Therefore, ships are always equipped with meteorological navigation system. With the captain’s years of sailing experience together with ashore personnel’s attention at all times, the risk can be minimized.

5. To implement risk assessment prior to dispatching crew, observe physical and mental state of the crew on the scene and strengthen pre-boarding trainings; educational training for seafarers should be implemented, and the training should be completed in accordance with training procedures to ensure that maritime personnel understand safety management system and related conventions.


Safety Measures(Ending)

6. On board emergency plan should be formulated and drills should be conducted. Drills are implemented to aim at unexpected conditions during sailing in order to enhance the crew’s crisis of consciousness.

7. Ship safety complies with ISM, SMC and DOC standards. Complete safety equipments and SOS equipments are installed on every ship to provide protection for the crew. In addition, all crew members are equipped with steel-toe safety boots and safety helmets. Protection of the crew is the responsibility of U-Ming Marine Transport Corp.

2012 Work Environment KPI

Number of injury accident, LTIF, employee training hours and employee turnover rate

Employees are the greatest asset of the company. The primary task is to protect employees and provide safe work environment. Permanent employment is the objective of the company. Apart from providing opportunity of continuing education for employees, the company also trains employees to strengthen their professional skills. The company strives to establish a sound system, provide perfect welfare, offer communication channel, care for employees from time to time and create comfortable and secure work environment. U-Ming takes number of accidental injuries, Lost Time Injury Frequency (LTIF), employee training hours and employee turnover rate as the work environment key performance indicators to examine the commitment that the company has for employees.

＊LTIF (Lost Time Injury Frequency)：

LTIF is the primary way to measure safety performance. It is measured by taking number of lost-time injuries

per working hour (only lost-time injury with at least 8 working hours is counted) multiplied by 1 million.

2013 Objective: 2012 Performance:

5 accidental injury cases 12 lost-time injury cases ( 33%)


2012 Work Environment KPI

Number of accidental injuries LTIF

Employee training hours Employee turnover rate

0

1

2

3

4

5

6

7

8

5.8

7.6

4.6

2010

2011

2012

0

2

4

6

8

10

12

14

16

18

11

18

12

2010

2011

2012

0200400600800

1000

1200

1400

1600

1800

2000

1306

1960

1342

2010

2011

2012

Note: > 5 : effective safety mechanism

2.70%

2.72%

2.74%

2.76%

2.78%

2.80%

2.82%

2.84%

2.86%

2.88%2.88%

2.80%

2.76%

2010

2011

2012


Social Welfare 5 To help more people

who need help, to care

for the disadvantaged

and fulfill the

responsibility as a

citizen. Becoming a

citizen is the philosophy

of U-Ming Marine

Transport Corp., hoping

to create more smiles

by devoting every

effort.


Social Welfare Care for Public Welfare

What is taken from the society is used on the society. There is a saying: “The stronger the ability, the greater the responsibility.” There are a lot of disadvantaged groups needing help in the world. By using the company resources, U-Ming Marine Transport Corp. assists more people who need help, cares for the disadvantaged and fulfills the responsibility of a citizen.

To repay the society with a grateful heart is the philosophy held by U-Ming Marine Transport Corp. The company expects to create more smiles by devoting every effort and will continue doing it, hoping to bring love and force to the society with the advanced industry and work together to provide the society with more stable and harmonious caring force.

Ecological Environment & Medical Facilities(Continued) 1. Protection of the marine environment is everyone’s responsibility. The

shipping industry, where ocean is like a home, should make every effort to protect the environment. It is our mission to do our best to protect the marine environment. U-Ming Marine Transport Corp. participates in beach cleaning activities held by the port authority from time to time in response to events of environmental protection, cleaning homes and cherishing the ocean. The company protects the ocean by taking concrete actions to fulfill the responsibility of a global village citizen and build a clean, sustainable and quality ecological environment.

2. U-Ming Marine Transport Corp. makes donation to Far Eastern Y. Z. Hsu Science and Technology Memorial Foundation and Far Eastern Medical Foundation to help improve service quality of the Far Eastern Memorial Hospital. In recent five years, an average of NT$66,349,066 was donated as social welfare funds annually, which accounts for 0.56% of combined turnover. U-Ming spares no effort to repay the society.

3. .In addition to occasional monetary donations to repay the society, U-Ming also plays a part in the Welfare Institutions for the Disabled, Ministry of the Interior, and the group subscription activity for the Moon Festival gifts. Through the subscription activity, the company shows its caring strength for the society and makes a contribution to the disadvantaged groups.


Ecological Environment & Medical Facilities(Ending)

4. U-Ming participated in the ceremony to donate the Far Eastern EcoArk to Taipei City Government. The green building concept of “FE EcoArk” is well-received by the international societies. It is expected that this architecture will be used to maximize benefits.

Pillars of Our Country

5. In order to nourish better talents for Yuan Ze University, U-Ming Marine Transport Corp. establishes scholarship system for the university. The scholarship will be granted to two students for each semester for an amount of NT$20,000 respectively. Scholarship for graduate school student will be NT$30,000. The scholarship is set up to encourage students to strive forward for success and become the future pillar of our country.

6. The company provides job opportunities to university graduates in accordance with current employment environment to bring the corporate strength into full play in order to protect the right to work of the new graduates.

▲Seminars regarding work opportunities on Yue Ze University


Our Students

7. In order for students to better

understand the mode of

operation in the practice circles,

U-Ming Marine Transport Corp.

is invited to give keynote

speeches now and then at

domestic maritime colleges and

universities. By establishing

mutual aid and cooperation

relations with schools, the

company can help students

better understand bulk shipping

business and features of the

industry so that the students can

smoothly engage with works of

the industry to do what they are best at and grow together with U-Ming Marine

Transport Corp.


6

Customer Commitments

U-Ming Marine Transport Corp. establishes

the culture of “customer first” by

providing the best service quality, which is

our commitment to customers.


Customer Commitment

Service Quality

Provision of best quality service is the commitment we have for our customers. U-Ming Marine Transport Corp. adopts service strategies to build the culture of customer first. Through service knowledge education, employees can grasp required concept and skills to do their best on customer relation management. Improvement of customer satisfaction is the primary business objective of the company. U-Ming Marine Transport Corp. strives to enhance professional skills to create customer values. Excellent quality service is a guarantee of public praise for the company.

Best Services(Continued) 1. Excellent Team: The finest business team grasps market opportunity at all

times. Since customers of U-Ming Marine Transport Corp. are all over the world, the company is on 24-hour standby online for providing domestic and foreign customers with the most immediate services, and flexibly adjusts the ratio of spot goods and long-term contract to pursue profit maximization.

2. Transport efficiency: To provide perfect shipping service. The fleet owns various types of bulk carriers and replaces old vessels with new ones in a timely manner in order to keep the fleet young and optimize transport efficiency.

3. Transport quality: To select and cultivate outstanding crew. Maintenance of ship is conducted on a regular basis, and all ships are certified by international standards (RightShip). RightShip certification has become a quality guarantee for bulk carriers. Many charterers must have ships certified by RightShip in order to carry goods. By the end of 2012, 100% of U-Ming owned bulk carriers were awarded with5-star RightShip rating. The quality of U-Ming ships is excellent and is the best choice for charterers and cargo owners. U-Ming ensures the safety of navigation and provides customers with the best transport quality.

4. Superior fleet: Repair and maintenance are conducted on ships regularly. Vessel is to be dry-docked twice every five years in order to keep the hull in the best condition. Maintenance is conducted to the hull on a regular basis. The best docking schedule is arranged to improve turnover efficiency of the vessel.


Best Services(Ending) 5. Strain capacity: Emergency response training is implemented regularly by the

company. The crew is required to stay alert at all times when facing rapidly changing crisis situation at sea, such as pirate attack. By the end of 2012, the company has a 100% success rate for preventing pirate attack due to solid emergency response training.

6. Environmental protection: U-Ming carries the mission of protecting the environment. Energy saving is the top priority in ship design. Emission of waste gas is constantly controlled in order to maintain good ecological environment.

7. Real-time information: A complete information knowledge base has been established. Information collection by the professional team and instant sharing of the latest market information can facilitate grasping of industry trends for the company and make the best decision to create competitive advantages for U-Ming.


Green Management and Logistics U-Ming Marine Transport Corp. starts with

itself to create green offices in order to

minimize the impact on marine ecosystem

caused by vessel operations and work hard to

reduce greenhouse gas emission and fuel

consumption with devoted efforts for making

a contribution to environmental sustainability.

7


Green Management and Logistics Energy Conservation

OFFICE SHIP

Energy Conservation

1. Since power consumption of air-conditioner can be saved by 6% for raising the temperature setting by 1 degree Celsius, U-Ming Marine Transport Corp. adjusts temperature of the building’s central air-conditioning system according to the outdoor air temperature in order to achieve the purpose of energy saving. Refrigerator should remain closed and door gaskets should be checked to reduce unnecessary power consumption.

3. Only energy-saving light tubes are used in the offices, and number of light tubes should be adjusted to maintain proper illumination. The main light source should be turned off during lunch break to save electricity.

4. In response to environmental demands and making effort to environmental protection, all lighting fixtures in the office are replaced by energy saving and environmentally friendly LED tubes. LED fixtures can convert electrical energy into light energy to save energy. Its power consumption is less than 1/3 of the traditional fluorescent lamp. In addition, LED tube does not contain mercury and lead, which has a protective effect on the environment.

5. The toilet uses sensor faucet to adjust water yield and save water use.

6. U-Ming has a large number of employees. To avoid blocking the elevators during working hours and being late for work, the company implements elevator load diversion control to conserve electricity.

7. For ships acquired after 2012, the company installs energy saving devices on all ships. The facts of Asian Champion and Asian Triumph (57,000 DWT) show that fuel consumption for the two ships can be saved by 5~6%. Sea trials will be conducted on other ships under construction to test ratio of fuel economy.

8. The newly purchased and signed ships are all in optimized eco-design by using various energy saving equipments. It is estimated that these ships will do better on fuel conservation and loading than the traditional ships.

9. The ship hull’s outer plates of our fleet

use auto-polish varnish, which does not contain organotin, and propeller is polished regularly to reduce ship resistance and improve propulsive efficiency.

10. Regular maintenance is conducted on main and auxiliary engines, and attention is paid to records of engine operation in order to maintain the optimal fuel economy to reduce unnecessary fuel consumption.

0

10000

Fuel CO2

Savings with Eco-Design

Cape(17.6%)* Pana(19.1%)*

Note：*means % of efficiency


Reduction of Carbon Dioxide (CO2) OFFICE SHIP

Carbon R

eduction

1. U-Ming Marine Transport Corp. achieves the goal of carbon reduction through energy saving and implements resource recycling to have compulsory garbage separation.

2. U-Ming actively participates in green shipping seminars to promote green concept and build corporate culture of green shipping.

3. Additional fuel homogenizer is added to the company fleet; propeller cap is switched to PBCF and Alpha Lubricator is modified in order to save fuel and lubricant consumption. Some marine fuel oils are low sulfur fuel oil with high costs to reduce emission of CO2 and ammonia. The company makes dedicated efforts to environmental protection, energy saving and carbon reduction together with the suppliers.

4. Marine meteorology is used to guide the ship to a route with better marine weather in order to save fuel of the voyage, and CO2 emission is also reduced in order to protect marine ecology and environment of the earth.

5. The fire control system in the engine room is changed from the CFCs system to CO2 system in order to avoid damage to the ozone layer.

6. The newly purchased and signed ships under construction adopt the optimal ECO-DESIGN by using various energy saving equipments. It is estimated that its carbon reduction benefits will reach more than 20%. ▼Eco-Design benefits for the newly acquired ships

7. Economic speed is adopted for the sailing of the fleet to reduce emissions of waste gas. The suspended particulates and air pollution generated through burning of fuel oil will cause a decline in air quality and endanger human health. Therefore, U-Ming changes the design of its ships to reduce pollution and protect environment of the earth by minimizing the damage caused by exhaust emissions.

International Maritim

e

2011 Amendments to Marpol 73/78 Annex VI introduced two mandatory mechanisms intended to ensure an energy efficiency standard for ships: (1) the Energy Efficiency Design Index (EEDI), for new ships, and (2) the Ship Energy Efficiency Management Plan (SEEMP) for all ships. 1. The regulations enter into force from January 1, 2013 and apply to all ships of and above

400 gross tonnage to reduce carbon emission by 10%. 2. Carbon emission is to be reduced again by 10% from 2020 to 2040. 3. 10% reduction again is required after 2040 in order to achieve the goal of 30% emission reduction.

17.6% 19.1%

Cape Pana


Reduction of SOx、NOx

SOx Emission NOx Emission

Ships Part of the marine fuel oil of the company fleet uses the high-cost low sulfur fuel oil to reduce emission of sulfur dioxide and nitrogen. The company contributes its efforts to environmental protection, energy saving and carbon reduction together with the fuel suppliers. The fuel sulfur content and diesel engines all comply with Marpol Convention, and sulfur oxide and nitrogen oxide emissions all meet emission requirements.

International Maritim

e Organization

1997 Marpol Annex VI introduced regulations for sulfur oxide emission control for ship’s exhaust emission and sulfur emission control areas. The currently available emission areas are:

1. Baltic Sea and North Sea of Europe

2. North American Coast

3. U.S. Virgin Islands in the Caribbean Sea

In the future, Mediterranean Sea, Singapore and Tokyo Bay will be included in succession in the emission control areas. South Korea, Osaka Bay and Australia are still under discussion.

2008 Amendments to Marpol Annex VI set limits on sulfur content in new ship’s fuel oil, which are described as follows:

1. Sulphur content of fuel oil must not exceed 4.5% for ships built before January 2012.

2. Sulphur content of fuel oil must not exceed 3.5% for ships built after January 2012.

3. Sulphur content of fuel oil must not exceed 0.5% for ships built before January 2020.

In 2008, International Maritime Organization (IMO) revised MARPOL Annex VI with amended regulations for NOx emission control for ship’s diesel engine, and the revised NOx Technical Code 2008 includes the following 3 tiers:

Present Value of Emission (g/kWh)

Present Value of Emission (g/kWh)

Tier I Applicable after 2000 17.0 45xN-0.2

9.8

N≦130 130<N<2000 N≧2000

Tier II Applicable after 2011 14.4 44xN-0.23

7.7

N≦130 130<N<2000 N≧2000

Tier III Applicable after 2016 3.4 9x N-0.2

2.0

N≦130 130<N<2000 N≧2000


Ballast Water Management (BWM) Systems

International Maritime Organization

“BWM Convention” was enacted in 2004. In order for the convention to take effect, 30 member states of the International Maritime Organization must sign the convention, and total DWT registered for ships of the Member States must exceed 35% of the world’s gross tonnage. Up to now, 36 Member States have signed the convention accounting for 29.07% of the world’s gross tonnage. The convention will become effective soon.

Ships

When loading cargo at port, ballast water may be added in order to maintain the balance of the ship. However, this may bring aquatic organisms from local sea and discharge them into a different sea area, which will impose ecological impact on the environment. There is no compulsory requirement for the current ballast water control system.

U-Ming Marine Transport Corp. controls ballast water discharge of its own accord in order to protect marine ecosystem from microbial contamination. Every ship holds a “Ballast Water Management Plan” which is approved by Classification Societies, such as DNV, CR, ABS and BC. Ships built after 2012 will install “BWM System” to kill microorganisms in the ballast water with high-temperature ultraviolet rays in order to reduce the risk of contamination.


Green Corporate Culture

OFFICE SHIP

Policies and Measures

1. To promote the concept of “the less paper you print, the more trees you save.;” the company encourages employees to print required number of paper in order to avoid the waste of paper by repeatedly checking whether there is a misprint.

2. To encourage employees to use reusable chopsticks to not only reduce the chance for bamboo being cut down but also protect the health of colleagues

3. To enforce indoor air quality management measure to reduce emission of carbon dioxide and maintain indoor environment quality; inspection of carbon dioxide content in the office is conducted regularly every year in order to fulfill the mission of a green shipping company. 2012 inspection of carbon dioxide concentration complies with CO2

content requirements for Category 2 Office Building regulated by the Environmental Protection Agency, Executive Yuan.

4. Each ship of the company holds the International Oil Pollution Prevention (IOPP) Certificate and International Air Pollution Prevention (IAPP) Certificate issued by the Classification Societies, and meets requirements of the ISO Code and MARPOL to effectively and positively enhance contribution to environmental protection and truly fulfill the responsibility of a marine citizen.

5. Since 2012, the company has planned the SEEMP and CEEMP Ship Energy Efficiency Management Projects to push forward comprehension management of ship energy saving and carbon reduction, hoping to further improve ship efficiency and carbon reduction performance through the promoted projects.


6. The company has been awarded with the ISO14001 certification and has

established the environmental management task force to take charge of

environmental protection affairs. The top management executives review

the environmental management system on a regular basis. The

environmental management task force is composed of Marin Department,

Engineering & Materials Department and Secretarial Department.

Through traditional PDCA management model, the implementation result

is guaranteed to coincide with the goal and thereby reduce the impact on

environment during production and operation process of the company. It

not only enhances employees’ awareness of the environment but also

acquires the green pass to enter the international market.

7. U-Ming plays a part in the “Sustainable Shipping Initiative,” which is formed by large shipping companies, charterers, cargo owners, classification societies and shipbuilders, to make every effort to promote and develop energy saving and carbon reduction of sustainable business and various strategies, new technology and concept for the promotion of environmental protection. Through common deliberation of the “Forum for the Future,” the future direction “Vision 2040” will be set out to push the shipping industry towards the future sustainable business.

Environmental Protection Related Certification

ISO-14001: 2004 Certificate

The Chairman of the company and the management level are all committed to the global environmental protection works in response to the international trend of green shipping by doing the best for their parts. Through a third-party certification, the company successfully acquires the DNV-certified ISO-14001 certification.

The ISO-14001 certification improves the international image of U-Ming and further demonstrates the contribution to environmental protection by the Far Eastern Group. Green shipping is not just a slogan for U-Ming but an implementation of environmental protection on every part of daily operation of the company.


Green Flag Award

The U.S. Port of Long Beach awarded U-Ming fleet a Green Flag in 2011. In addition, the Port of Long Beach launched the “Voluntary Vessel Speed Reduction Program,” which was a program implemented for reducing ship’s speed within the scope of the port area in order to minimize suspended particulates and air pollution generated through burning of fuel oil from ships.

The exhaust emissions not only cause a decline in air quality but also endanger the health of people. As a citizen of the society, protecting the earth is an obligation of the company. Therefore, U-Ming Marine Transport Corp. voluntarily reduces speed, hoping to minimize air pollution caused by burning of fuel oil and to protect environment of the earth with devoted efforts. U-Ming is fortunate and proud of receiving this Green Flag Award. It is also the effort made by the company and all crew of the fleet.

▲ISO-14001：2004 Certificate

▲Green Flag Award


2012 Green Planning & Management KPI Ship fuel consumption, CO2 emission, percentage of inspections without

deficiencies, number of environmental pollution accidents

As a part of the marine industry, protecting the environment from pollution is our basic responsibility. According to statistics, annual CO2 emission of international marine transport accounts for about 3% of total CO2 emission worldwide. With the increase in international trade volume, carbon emissions of international marine transport also will increase substantially. Therefore, for fuel efficiency and environmental pollution, reduction of waste gas emission is the primary goal of company operation. U-Ming takes the ship’s total fuel consumption per nautical mile, total CO2 emissions per nautical mile, percentage of inspections without deficiencies and number of environmental pollution accidents as the key performance indicators for green planning to always detect whether the company truly performs the responsibility for protecting the environment.

2015 Objectives: (based on 2010) 2012 Performance:

Ship’s fuel consumption per nautical mile 15%

Ship’s fuel consumption per nautical mile 9.5%

Total CO2 emissions per nautical mile 15%

Total CO2 emissions per nautical mile 8%

Percentage of inspections without deficiencies: 70%

Percentage of inspections without deficiencies: 70%

Number of environmental pollution accidents: 0 case

Number of environmental pollution accidents: 0 case


2012 Green Planning & Management KPI

Fuel Consumption (ton/nautical mile CO2 emission (kg/nautical mile)

Percentage of inspections without deficiencies

Number of Inspections without deficiencies

340

350

360

370

380

390

400

410

397 404

365

2010

2011

2012

67%

68%

69%

70%

71%

72%

73%

74%

75%74%

75%

70%

2010

2011

2012

0

2

4

6

8

10

12

14

16

18

11

13

18 2010

2011

2012

106108110112114116118120122124

126

128

124 126

114

2010

2011

2012


U-MING MARINE

TRANSPORT CORPORATION

Based on the shipping competency. To be world class logistics and transportation company.

To be first choice for customers, employees and investors.

http://www.uming.com.tw/

Sincerity, Diligence, Thrift, Prudence, Innovation

http://www.uming.com.tw/

csr report u-ming marine transport corporation … · 2015. 4. 21. · to environmental...

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