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APM Terminals Sustainability Report 2012 1SustainabilityReport 2012
APM Terminals Sustainability Report 2012 APM Terminals Sustainability Report 20122 3CEO StatementContents“Sustainability m...
APM Terminals Sustainability Report 2012 5APM Terminals Sustainability Report 20124About the Business in 2012Our goal is t...
APM Terminals Sustainability Report 2012 APM Terminals Sustainability Report 20126 7Embedding social, ethical and environm...
APM Terminals Sustainability Report 2012 APM Terminals Sustainability Report 20128 9Health, Safety and SecuritySafety is m...
APM Terminals Sustainability Report 2012 APM Terminals Sustainability Report 201210 11EnvironmentOur business activities c...
APM Terminals Sustainability Report 2012 13APM Terminals Sustainability Report 201212Global TransformationSustainable Lead...
APM Terminals Sustainability Report 2012 APM Terminals Sustainability Report 201214 15Social ResponsibilityOur PeopleEvery...
APM Terminals Sustainability Report 2012 APM Terminals Sustainability Report 201216 17Our CommunitiesAPM Terminals is an i...
APM Terminals Sustainability Report 2012 APM Terminals Sustainability Report 201218 19New TerminalsGrowth can bring consid...
APM Terminals Sustainability Report 2012 APM Terminals Sustainability Report 201220 212012 Global Sustainability in Action...
APM Terminals Sustainability Report 2012 APM Terminals Sustainability Report 201222 23Financial Performance (2012 IFRS)	 U...
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APM Terminals sustainability report 2012

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APM Terminals sustainability report 2012

  1. 1. APM Terminals Sustainability Report 2012 1SustainabilityReport 2012
  2. 2. APM Terminals Sustainability Report 2012 APM Terminals Sustainability Report 20122 3CEO StatementContents“Sustainability means doing our business withthe care and due diligence that allows us tolook ourselves in the mirror every morning.”We are in the business of investing in,owning and operating large fixed assetswith long lifetimes, specifically containerterminals and inland facilities. Our goal is tobe the most efficient and profitable terminaloperator in the industry, with 70 operatingterminals by 2014.We are especially focusing on advancing ourcore businesses in emerging markets, whereeconomic growth, the needs of growingpopulations and rising affluence meanincreased demand for efficient port andterminal infrastructure. So our business hasby nature long-term positive effects on trade,growth and economic and social development,particularly in emerging market areas.However, we also recognise that our activitiescan have strong impacts on the communitieswhere we work. We understand thatmanaging our local social, environmental andeconomic impact is a key component of APMTerminals’ license to operate.So to be able to “look ourselves in the mirrorevery morning” we should be sustainablein all that we do. It is in our best interestto focus on mitigating impacts and drivingefficiency today, while maintaining a long-termperspective on how global challenges willshape the world of tomorrow.It is for these reasons that I am proud ofour sustainability achievements in 2012,described in the report you are reading now.Some of the highlights are:• We have further integrated sustainabilitythrough a new governance structure.• We have improved our safety performanceas well as our energy efficiency.• By focusing on berth productivity we haveimproved our turnaround times, loweringour carbon footprint and operating costs.• Our employees are more engaged thanever and we continue to drive diversity andinclusion within our workforce.• We have scaled up the number ofimpact assessments to improve ourunderstanding of the positive and negative impacts of terminals on local communitiesand the environment.Nevertheless, much work remains to bedone, particularly in the area of safety.We are still experiencing fatalities in ouroperations and until we are able to achieveour targets of zero incidents and zerofatalities, we will continue to drive improvedsafety culture and performance within eachand every facility.At APM Terminals we want to be transparentabout what we do, why and how. That is whywe committed to the principles of the UnitedNations Global Compact (UNGC) as part ofA.P. Moller-Maersk Group. We see increasedtransparency on strategy, performance andindustry challenges as an important partof our competitive advantage and integralto achieving our vision of becoming theleading port operator. Working towardssustainability and transparency increasesvalue for our company, our customers andsociety as a whole.On this note, I am pleased to introduce you toAPM Terminals’ 2012 Sustainability Report.Kim FejferCEO4 About the Business in 20126 Sustainability at APM Terminals8 Health, Safety and Security10 Environment13 Responsible Business14 Social Responsibility18 New Terminals20 2012 Global Sustainability in Action22 2012 Sustainability Performance23 AwardsAPM Terminals Sustainability Report 2012 3Algeciras, SpainCover image: Zeebrugge, Belgium
  3. 3. APM Terminals Sustainability Report 2012 5APM Terminals Sustainability Report 20124About the Business in 2012Our goal is to be the most efficient andprofitable terminal operator in the worldInland ServicesOperationsImprovedSustainabilityGovernanceStructure25,000Employees5 continents68 countries 1706%62$4.84% increase in overallcontainer throughputPort Terminals$723Million Profit(USD)Billion Revenues(USD)reduction in CO2emissions perTEU since 2011LTIFperformance furtherimproved in 20128%crane-lift per hourimprovement acrossthe portfoliomillion TEU throughput35.415.2%ROIC14New terminaldevelopments andexpansions underwayROIC = Return On Invested CapitalTEU = Twenty-foot Equivalent UnitAPM Terminals Sustainability Report 2012 5
  4. 4. APM Terminals Sustainability Report 2012 APM Terminals Sustainability Report 20126 7Embedding social, ethical and environmental considerationsinto our day to day business will create value for our stakeholdersand foster our long term success.Our ApproachSustainability is not a new concept to APMTerminals, and our approach to sustainabilityhas been long founded in our core values, thepolicies of the A.P. Moller - Maersk Group andmore recently by the Group’s commitment tothe principles of the UN Global Compact.The UN Global Compact is a strategic policyinitiative for businesses that are committedto aligning their operations and strategieswith ten universally accepted principles in theareas of human rights, labour, environmentand anti-corruption.Our sustainability strategy focuses onfour core areas:• Health, Safety and Security• Environment• Responsible Business• Social ResponsibilityFor each core area we develop programs toaddress specific topics and the needs of ourvarious stakeholders. We integrate thesesustainability programs into the business andas such many of our sustainability programssit within the functional departments to whichthey relate.Prioritised Sustainability Issues for 2012*Employee SafetyThe safety of our employeescontinues to be of paramountconcern to usCommunitiesAPM Terminals invests in buildinglong-term relationships with localcommunitiesDiversity and InclusionIncreasing diversity across APMTerminals remains a long termobjectiveSustainability Governance StructureGovernanceTo achieve our globalsustainability objectives andtargets, we have establisheda clear governancestructure for sustainability.A key milestone changein 2012 has been theestablishment of an APMTerminals SustainabilitySteering Group. The group,chaired by Tiemen Meester,Vice President, BusinessImplementation, providesstrategic direction andleadership on sustainabilityacross our business. TheSustainability SteeringGroup comprises key seniormanagement and leadersfrom the areas of Safety,Communications, HumanResources, Sustainabilityand Project Implementation.Health, Safetyand SecurityEnvironmentResponsibleBusinessSocialResponsibilityKim FejferCEO, APM TerminalsTiemen MeesterVice PresidentBusiness ImplementationAPM TerminalsSustainabilitySteering GroupAPMT TerminalsSustainability FunctionRegional CEO andrelevant functionsLocal relevant functionsA.P. Moller-MaerskGroup Executive BoardMember of A.P. Moller-Maersk Group SustainabilityCouncil and reportsquarterly to CEOGlobal APM Terminalsgovernance and oversight ofsustainability strategyImplementation, drivingtargets, global objectives,report performanceRegional performanceand implementationLocal implementation,driving and reportingperformance and progressA.P. Moller-Maersk GroupSustainability FunctionA.P. Moller-Maersk GroupSustainability CouncilWhat does our staffthink about oursustainability efforts?In the 2012 EmployeeEngagement Surveywe assessed ouremployees’ views of oursustainability initiatives;84%of respondents statethat APM Terminalsis making a genuineeffort to be sociallyand environmentallyresponsible75%of respondents state theirmanager encouragesthem to consider socialand environmentalimpacts of their decisionsTangiers, MoroccoOur four core areas*as defined in our 2012 materiality assessmentAPM Terminals Sustainability Report 2012 7Sustainability atAPM Terminals
  5. 5. APM Terminals Sustainability Report 2012 APM Terminals Sustainability Report 20128 9Health, Safety and SecuritySafety is managed using a dedicated safetyteam. Although the number of accidents wasreduced in 2012, fatalities remain an issueof concern. Fatal accidents occurred last yearin Pipavav, (India), Mobile (USA), Cai Mep(Vietnam) and two occurred in Callao (Peru).All fatalities are unacceptable and APMTerminals has made strong commitmentsto improve safety performance. Thecommitments entail aggressive safetyactivism, increased on-site visits and anew approach to communication. TheSafety Activist is a representative from thesenior management team that continuouslyengages port and inland facilities to exploresafety issues and discuss action plans withlocal managers. Selected staff have beentrained in incident investigation to increasethe efficacy of risk assessment, preventionprocedures and information dissemination.In 2012 APM Terminals also introducedfour new global safety commitmentsand associated minimum requirements.Facilities which are not yet in compliancehave been charged with preparing anaction plan to meet these standards, whichwill be monitored during 2013.The increasing focus on safety has beenfelt by the organisation and in the yearlyEmployee Engagement Survey 94% ofemployees agreed that APM Terminals iscommitted to employee safety.Health and security are currently primarilymanaged locally. However, a review of thisstructure and the underlying procedures areplanned to take place in the future.“Our goal of zero incidents and zero fatalities will neverchange and our commitment to safety is higher than ever”Kim Fejfer, CEODuring 2012 a number of Safety Initiatives were started to support APM Terminals’Safety goals and targets.Our commitments:1. Safety is our license to operateWe will not stop until we are sure all ourpeople return home without harm at theend of each day.2. Safety has no hierarchyEveryone has the right andresponsibility to raise issuesand to stop unsafe operations.3. Safety means no compromiseWe will not participate inbusinesses where we needto lower our standards.4. Safety is not optionalThose not actively committedto safety will have no place inour organisation.The Safety Activist has been introducedto provide senior level support andleadership to our global safety efforts. TheSafety Activist is not a Safety Managerrole in the traditional sense. Rather, theSafety Activist has a strategic task toinfluence the organisation positively, findthe weak spots, be the critical voice ofconscience, facilitate debate and dialogue,challenge old ways of working and makingthe organisation think and act differently.The Safety Activist program is supportedby visual communications and socialmedia campaigns to systematically raisesafety awareness in our terminals.doyou?I am Martin Poulsen.I am your Safety activist.I am on Facebookwww.facebook.com/SafetyActivistSAFETYACTIVISTThe Global Safety Day took place on 16thOctober 2012. The theme of the 2012edition was Intervention. According toresearch, 40% of us do nothing aboutan unsafe act or condition when we seeit, 25% do not intervene because theother person might become defensiveor angry, and 20% do not intervenebecause they do not think it will makea difference. It is when we see unsafesituations that we can actually act and dosomething about it. By focusing on thetheme of intervention, we reinforced ourcommitment to building a culture of safety.By intervening we can avoid accidents andeven fatalities.Global Safety Day 2012October 16INTERVENE!IT’S TIME FOR YOU TO40%25%20%60%of us do nothing about anunsafe act or conditionwhen we see itdo not intervene becausethe other person mightbecome defensive or angrydo not intervene becausewe don’t think it willmake a differencedo not realize somethingwas unsafe when they dosomething unsafeGLOBAL SAFETYDAY 2012GLOBAL SAFETYCOMMITMENTS2.153.822.47201225LTIF PerformanceAPM TerminalsInland ServiceCombined20103.128.534.453.593.313.542011LTIF = Lost-time Injury FrequencyFatalities (within operational control)APM TerminalsInland ServiceTotal2010 2011 2012373106410APM Terminals GlobalSafety CommitmentsThe Global Minimum Requirements(GMRs) comprise of 45 items and setthe minimum threshold of what mustbe in place in all facilities regardless ofsize, product offering and location. TheGMRs are the outcome of four key riskareas identified in APM Terminals. Not allfacilities are in compliance but each facilityhas set actions to close their areas of non-compliance and this is reviewed by seniormanagement on a quarterly basis.GLOBAL MINIMUMREQUIREMENTS (GMRs)
  6. 6. APM Terminals Sustainability Report 2012 APM Terminals Sustainability Report 201210 11EnvironmentOur business activities carry environmentalrisk and we have identified three primaryenvironmental risk categories: climate change(emissions to air), soil and water pollutionand biodiversity impacts. We monitor andreport data across our global portfolio to helpunderstand and manage these risks to reduceany adverse impact on the environment.Climate changeAPM Terminals is a key node in the shippingvalue chain. However, research by Garratand Rowlands (2011) indicates that thecontribution to supply chain CO2emissionsfrom terminal operators is low, withapproximately 2-3% of the total CO2emitted inthe intercontinental supply chain attributableto terminals. Nevertheless, as part of oursustainability strategy we have committedto reduce our global terminal CO2emissionsby 25% per TEU by 2020, based on a 2010baseline, and in 2012 we achieved a further4% reduction in CO2emissions per TEU,compared to the previous year.Climate change impacts can be addressedmost effectively by working together withour customers, port authorities and industrypeers. In support of this, in 2012 APMTerminals contributed to the developmentof Guidance for Greenhouse Gas EmissionFootprinting for Container Terminals, as part ofa project developed by the EU Ports EuropeanEconomic Interest Group.Soil and water pollutionSpillage of environmentally harmfulsubstances such as oil or lubricants is a riskof our activity, and facilities are thereforerequired to have procedures in place tomitigate and manage this risk. We alsorequire each facility to report on spillages andin 2012 we had no reported significant spills,compared to 2 reported in 2011.BiodiversityIn 2012 APM Terminals, as part of an A.P.Moller-Maersk Group project, worked with theUN Environment Programme (UNEP) - WorldConservation Monitoring Centre to undertakea study to assess our global operating sitespotential exposure to biodiversity sensitivities.The assessment considered threatenedand vulnerable species and ecosystems,protected areas and areas of conservationimportance. This project provided a first stepin understanding biodiversity in the context ofour global operations.In 2012 we reported:0significant spills1,585,000m3water used24,000tonnes of wasteAPM Terminals Sustainability Report 2012 11Performance – GHG Emissions (Absolute)Includes figures for both terminals and inland services1,000 tonnes 2010 2011 2012Direct (Scope I) 359 358 356Indirect (Scope II) 226 258 252Innovation for climate changeWe are working to identify new technologies,improved operational efficiencies andalternative energy sources that can helpus achieve our ambitious CO2reductiontarget. These are applied in many of ourterminals, for example the selection ofautomated and electrified yard equipmentat Maasvlakte II in the Port of Rotterdam,the planned implementation of shore sideelectric power at Pier 400 in Los Angelesand the implementation of Electric-RTGsat the Port of Tanjung Pelepas in Malaysia.The goal is to reduce our carbon footprintand to contribute to better local air qualityconditions surrounding our ports.Hurricane SandyIn late October, Hurricane Sandy batteredthe East coast of the US, closing theports of New York and New Jerseyincluding APM Terminals’ Port Elizabethfacility. Operations were impacted formore than a week in the entire port,however, APM Terminals was the firstterminal in the area to recommenceoperations after the hurricane and wasable to contribute to some of the reliefefforts following the hurricane.CO2EmissionsTarget: reduce TerminalCO2emissions by25%per TEU by 2020Performance (since 2011):4%reduction in CO2per TEU(financial scope)Tanjung Pelepas, Malaysia
  7. 7. APM Terminals Sustainability Report 2012 13APM Terminals Sustainability Report 201212Global TransformationSustainable Leadership in action,generating value for our company, ourcustomers and society as a whole.In 2012, APM Terminals experiencedrenewed interest from shipping lineswishing to secure access to moderncontainer terminals with cranespecifications and operational capabilitiesto match future market requirements.Responsible BusinessAPM Terminals works ethically and lawfully inall aspects of our business, complying withnational and international regulations. Webelieve conducting business in a sustainableand responsible way upholds our reputationand the way we are viewed as industryleaders. We focus our responsible businesssustainability programs on Anti-Corruptionand Procurement.Corruption is considered a major hindranceto sustainable development. Corruptionpromotes inequality, usually impacts poorcommunities and impedes the socio-economic development of societies throughthe distortion of competition. APM Terminalsis committed to working rigorously against allforms of corruption and minimise our legaland reputational risks. We have implementedcompliance self-assessments for our globalfacilities and developed e-learning modules tohelp us meet our aims.As a global company with a large fragmentedsupplier base, responsible procurement is ofstrategic importance. Our approach combinessupplier commitment to our Code of Conduct,auditing of key suppliers and training of ourprocurement staff. We also promote ourhealth, safety and security considerations andbest practices throughout our value chain.In 2012 we conducted625 Anti-Corruptiontrainings worldwidethrough e-learning, webExand face-to-face trainings12GT Project in a nutshellThe program follows a process ofdiagnostics, implementation andexecution and seeks to achieve significantoperational improvements in terms ofefficiency and effectiveness. Key focusareas are:• Increase and stabilise berthproductivity• Eliminate waste• Identify cost efficiencies• Reduce waiting timesSustainability effectsEnvironment: By reducing waiting times,driving distances and over-processing,we positively impact the consumption offuel and electricity thus saving costs, andlowering our CO2emissions per TEU.People: Local teams take responsibilityfor the program in the long term andtherefore a large part of the programis focused on sharing knowledge andbuilding local capability.APM Terminalslaunches the GlobalTransformation ProgramPerformance data20128% improvement in crane-lift per hourproductivity compared with previous year =quicker turnaround for our customers2013Target: 15% improvement from2011 baselineResult:efficient modernterminal facilitiesAarhus, Denmark
  8. 8. APM Terminals Sustainability Report 2012 APM Terminals Sustainability Report 201214 15Social ResponsibilityOur PeopleEvery year we assess the level of employeeengagement and satisfaction through theEmployee Engagement Survey. Kenexa’sEmployee Engagement Index allows us tobenchmark our performance versus 100’sof other companies. The global benchmarkfor engagement (top quartile) in 2012 was75% favourable responses, while APMTerminals’ result was 79%. Our goal is tomaintain our position in the top quartile ofcompanies we benchmark against.We believe strong employee engagementdrives performance, continuous improvementand retention within our organisation. Thegoal of the survey is to identify the key issuesthat need improvement to foster engagement,commitment and performance across theboard. In 2012, more than 5,000 employeesprovided feedback to the online survey andmore than 11,000 to the paper-based survey.Diversity and InclusionIncreasing diversity across APM Terminalsremains a long term objective. We havecontinued implementing various initiativesto promote diversity and inclusiveness. Forexample in 2012, 28 employees completedthe company’s Magnum programme, a premierleadership acceleration programme designedfor the most talented general managers.The 2012–2013 graduating class includedmultiple nationalities, 70% of which are fromgrowth markets. Furthermore, 8 employeesjoined the Women’s International Networkingand One Young World conferences.Analysis of data in 2012 shows a continual acontinual steady increase in cultural diversityin the Director population of APM Terminals,with non-western Directors almost doublingfrom 14% in 2010 to 27% in 2012. We alsosee a gradual increase in gender diversitywithin both the director and general managerpopulation, however there still remains roomfor improvement. One of the key challengesremains attracting women to the portssector. As part of the 2013 action plan,there will be a global roll-out of a recruitmenttraining program focused on interviewingtechniques, proper use of assessment toolsand other means of eliminating bias in thestaffing process. By having diverse candidateslates for leadership positions, we seek toaccelerate the number of women and local-nationals in our leadership ranks.72% of employees findthe APM Terminalsleadership to be genuinelycommitted to attracting,training and retaining adiverse workforceThe target for 2013 isto achieve a 77% scoreon this indicator, whichrepresents the “topquartile” in externalbenchmarks88%85%62%of our employees indicatethey are proud to be workingfor APM Terminalsof our employees state theyare extremely satisfied withAPM Terminals as a placeto workof our employees arepositive about theircareer opportunitiesat APM TerminalsEmployee Engagement %2010 201179%201277%72%Key highlights in 2012:127trainings completed onGlobal Labour StandardsAPM Terminals Sustainability Report 2012 15APM Terminals’people are the most important key to success for ourcompany. Therefore a strategic priority for the company is to ensurethe recruitment and retention of talent across the organisation.“Diversity is crucial to us. We need the best people in the world andif the whole world is our talent pool, it would be foolish to only fishin part of it.” Steve Bird, Vice President HRGender and Cultural Diversity in 2012DenmarkNetherlandsUSAOther WesternNon-WesternCultural Diversity – Director population17%Gender Diversity – Director populationOther Western is defined as: Canada, Australia,New Zealand and all other European TerritoriesDenmarkNetherlandsUSAOther WesternNon-WesternCultural Diversity – General Manager population6%14%20%17%43%FemaleMale84%Gender Diversity – General Manager population16%Gender Diversity – Manager populationFemaleMale84%16%NetherlandsUSAOther WesternNon-WesternCultural Diversity – Manager population8%54%31%7%FemaleMale6%94%15%12%28%27%18%80%of our employees indicatethat APM Terminalstreats people equally withrespect to gender, race,nationality, religion andother differences
  9. 9. APM Terminals Sustainability Report 2012 APM Terminals Sustainability Report 201216 17Our CommunitiesAPM Terminals is an integral part of manylocal communities. Understanding andmanaging local social, environmental andeconomic impacts is a key component ofAPM Terminals’ license to operate.As we become more engaged, particularlyin emerging markets where the socio-economic impacts of new investments can beconsiderable, this principle has become evenmore important. The presence of terminalscan become a significant positive influencethrough the introduction of new technologies,employment and educational opportunities,implementation of global safety, health andoperating standards, increased tax revenue,economic expansion through employmentand payments to local suppliers. The nextchapter further elaborates on this topic withregard to our new terminals.In recognition of the importance of localcommunities, we introduced a set ofCommunity Investment Guidelines in2012. These guidelines help us to directlocal investments in line with our threestrategic areas:1. Supporting safety in oursurrounding communities2. Health promotion and awareness3. Education and training programsThese principles help us to make realpositive impacts as a result of ourinvestments, as demonstrated in Monrovia,Liberia, where APM Terminals hascollaborated with partners and alocal NGO to invest in education throughthe construction of a new school fordisadvantaged local children.A better understandingof the effects of localinvestment in terminalswill help to foster strongpositive relationships withlocal stakeholdersTwo terminal impactstudies were initiatedin 2012 in Callao, Peruand Moin, Costa Ricawhere APM Terminals hascommitted to invest USD749 million and USD 992million respectivelycore jobs estimated once fully operational7.5%of gross income will go tothe regional developmentof the Province of LimonUSD 992minvestmentover 33 yearsEconomic growth in Costa RicaAPM Terminals will design, finance, construct and maintain anew container terminal in the Caribbean port of Moin in CostaRica. It is the largest single investor infrastructure project inthe country. The investment is likely to attract other investors,business activities and development efforts that will stimulateeconomic growth.Health and educationAPM Terminals Moin’scommunity programmefocuses on improvinghealth and digital skillsin the community.Indirect effectsMany more jobs are expected to be createdlocally as a knock on effect of the investment.Foreign investmentsAPM Terminals Moin has co-founded theLimon Development Agency to support theeffort of attracting foreign investors forindustrial growth.Inland infrastructureThe terminal will be theproperty of the Costa Ricangovernment. The governmenthas committed to invest inroads, an oil refinery plant,electricity and water services.400APM Terminals Sustainability Report 2012 17Jump-starting Digital Skillset, MoinElementary School, Costa Rica
  10. 10. APM Terminals Sustainability Report 2012 APM Terminals Sustainability Report 201218 19New TerminalsGrowth can bring considerable local socio-economic benefit, but itis essential that we undertake our growth in a sustainable mannerand to design, develop, operate and maintain economically,environmentally and socially advantaged facilities.Infrastructure investment is a key part ofAPM Terminal’s business, demonstrated bythe six new terminal development projectsand fourteen expansion programs currentlyunderway.  Our focus is investment in highgrowth emerging markets and Brazil, CostaRica, Peru, India and Georgia are just a few ofthe countries where we have recently madeconsiderable investments. Infrastructure investment typically results inthe faster and safer transportation of goods,increased business activities, and overallimproved national competitiveness. Newand expanded ports and terminals have thepotential to provide positive socio-economicbenefits to societies as they ensure smoothrunning of many economic sectors, contributeto the creation of wealth, jobs and promotethe expansion of industry and cities in thevicinity of the port, as demonstrated inthe Port of Santos case study, overleaf.At the same time, new port and terminaldevelopments may cause social orenvironmental impacts due to the nature andsize of project. By instigating professionalindependent Environmental and Social ImpactAssessments (ESIA) we can get an objectiveunderstanding of potential adverse impactson the local environment and communitiesand learn how to mitigate these throughoutthe project life. APM Terminals considers it important totake sustainability criteria into account earlyin the development process and to fullyunderstand the local context of a projectso as to maximise sustainability into thedesign phase and avoid potential projectdelays. In response to this in 2012, we haveestablished an environmental and socialrisk screening process for our businessdevelopment phase. In 2013 we aim toscreen all our projects before board approvalso we can incorporate risk managementprocedures, if needed, early on.Building tomorrow’s terminal todayThe growth in Brazilian export and import isputting port capacity and productivity underpressure. With a 30% market share, the Portof Santos is Brazil’s most important port.Since 2003, the waiting time for vessels atthe port has steadily increased. During thefirst half of 2012, ships have had to waitabout 16 hours on average before berthing.The World Bank estimates that extra chargesfor delayed cargo constitute around USD 700million per year in Santos.Investing in Brazilian trade growthContainer traffic in the Port of Santos isexpected to grow by 10 –12% per year in theperiod 2010  – 2016. Maintaining the statusquo of the current container terminal capacityin Santos would lead to excess demand forcontainer transport of around 0.9 millioncontainers (TEU) by 2015, corresponding to25% of today’s total demand.Together with Terminal Investment Limited,APM Terminals is investing USD 1 billionin the construction of a new world-classcontainer terminal, Brasil Terminal Portuario(BTP). When fully operational in 2013, BTPis expected to deliver a berth productivityof up to 80 containers per hour – a 32%improvement compared to the currentaverage berth productivity of Santos’ threeoperating terminals.More containers at lower costThe development of BTP will increasecapacity in the Port of Santos by up to 40%.This will prevent further deterioration inwaiting and berth times, increases in alreadyhigh transport costs, and loss of trade anddiversion to other ports. Moreover, BTP willimprove Santos’ overall berth productivityby up to 10%. Combined, the increasedcapacity and improved productivity have thepotential to increase the annual containerthroughput by up to 12% – correspondingto an increased trade potential worth up toUSD 15.3 billion per year.But it requires better access roadsIn Brazil, most containers are transportedby trucks to and from the Port of Santos butthe current access roads are not adequateto accommodate this traffic without delays.Today, the inland transport bottlenecks addto the costs of using the port. To fully reapthe benefits of the BTP terminal project,Brazil would need to improve the roadinfrastructure around the port.BTP will improve the berth productivityof Santos Port by up to10%The increased tradepotential is worth up toUSD15.3bnper yearCombined with increased capacity thishas the potential to increase the annualcontainer throughput in Santos by up to12%Today’s emerging marketsare forecast to account for34%of the world’s wealthby 202538out of 62of our containerterminals operatein growth marketsWe strive to buildfuture-proof terminalsand incorporate climatechange risks such asrising sea-levels into thedesign of our terminalsTaxes and jobs in numbersThrough the development ofBTP the Port of Santos willbenefit annually from overUSD 100mtax income (federal, stateand municipality)BTP is expected to create3,000jobs during theconstruction phase1,500jobs during theoperational phase9,000indirect jobs onceoperationalMore information aboutthe socio-economicimpact study in Brazilcan be found in theA.P. Moller-Maersk GroupSustainability Reportwww.maersk.comAPM Terminals Sustainability Report 2012 APM Terminals Sustainability Report 201218 19New crane delivery, Port of Santos, BrazilUpgrades to Brazil’s busiest port in Santos, Sao Paolo are beingmade to ­alleviate congestion and delays. Many socio-economicimpacts can be realised from a USD 1 billion joint venturecontainer terminal project.
  11. 11. APM Terminals Sustainability Report 2012 APM Terminals Sustainability Report 201220 212012 Global Sustainability in ActionNetherlandsMalaysiaGlobalIndiaPeruBrazilJordan OmanLiberiaAqaba Container Terminalcontinues its sustainabilityjourney with transparency onperformance via its annualsustainability report.To mark World Earth Day, oildrums used to power the port’senormous machines in Salalah,have been recycled as plantersfor rare Frankincense treesaplings, used to populate a localConservation Park.In Pipavav a new sustainableapproach to waste managementhas been implemented. The costsof developing and maintaining thenew waste management facilitywere covered by selling the wastescollected in the earlier facility.For more information pleasego to www.apmterminals.comIn line with our globalelectrification process significantenvironmental benefits arepredicted at the Port of TanjungPelepas with the signing of anambitious program to electrify itsfleet of RTGs in 2012.APM Terminals Monroviacollaborates with partnersto invest in educationthrough construction of anew school for disadvantagedlocal children.In Santos, the BTP terminal isbeing constructed on an areaformerly occupied by the AlemoaDump (Lixão da Alemoa). As partof the concession to developthe terminal, BTP was requiredto undertake remediation of thecontaminated area.APM Terminals invests in thedevelopment of a new moderncommercial fishing terminal at thePort of Callao to accommodate thelocal fishing industry which had beenconcerned about potential displacementwith the ongoing construction of a newexpanded cargo facility at the port.We are currently rolling outthe Global Transformation(GT) program to increaseberth productivity and throughthat add further value to ourcustomers and shareholders.Concurrently, we reduce waitingtimes, driving distances andover-processing which positivelyimpacts the consumptionof fuel and electricity thussaving costs, and lowering ouremissions per TEU.APM Terminals Maasvlakte IIin Rotterdam became the firstcompany to order a fleet ofLift-Automated Guided Vehicles(Lift-AGVs), setting the pace forthe industry in terms of emissionsreducing, quiet and cost efficientequipment.
  12. 12. APM Terminals Sustainability Report 2012 APM Terminals Sustainability Report 201222 23Financial Performance (2012 IFRS) Unit 2010 2011 2012Revenue USD 1000 4,202,071 4,682,933 4,780,365Segment profit/loss (NOPAT) USD 1000 781,359 648,037 723,041ROIC, segment (New) % 16.1 12.9 13.6 Social Performance Unit 2010 2011 2012Number of employees  FTEs 21,146 22,538 25,000Employee engagement  % 72 77 79 Social Performance Unit 2010 2011 2012Lost Time Injuries Terminals Lost Time Injury Frequency (LTIF) 3.12 3.59 2.15Lost Time Injuries Inland Services Lost Time Injury Frequency (LTIF) 8.53 3.31 3.82Combined Lost Time Injuries Lost Time Injury Frequency (LTIF) 4.45 3.54 2.47Fatalities Terminals Number 7 6 3Fatalities Inland Services Number 3 4 2Total Fatalities Number 10 10 5 Environmental Performance* Unit 2010 2011 2012Diesel use 1,000 tonnes 112 112 109Electricity use 1,000 MWh 424 500 517GHG emissions 1,000 tonnes CO2eq 668 645 664Direct CO2emissions(Scope 1 GHG Protocol) 1,000 tonnes 359 358 356Indirect CO2emissions(Scope 2 GHG Protocol) 1,000 tonnes 226 258 252Total CO2 1,000 tonnes 585 616 608Waste total 1,000 tonnes 27 26 24Water consumption 1,000 m3 862 1,250 1,585Significant Spills (oil) m3 0 2 02012 Sustainability Performance AwardsScope:The data has been collated in accordancewith the provisions of the Greenhouse Gas(GHG) Protocol and we have reported CO2emissions under scope 1 and 2 as outlinedin the Protocol.Financial scope is applied for all sustainabilitydata, except safety and spills data, which areoperationally scoped.* The reported data includes Port Terminals andInland Services activitiesLloyd’s List Global Awards 2012“Port Operator of the Year”The annual award is presented toAPM Terminals in recognition of “thecompany or port authority that hasmaintained the highest standards foroperational efficiency and customerservice throughout the year”.The judging panel were impressedby the $3 billion in infrastructureinvestments made during the past yearand cited APM Terminals’ commitmentto “the highest standards of ethicaland sustainable business practices”,praising the tangible results inimprovement of Safety Performanceand reduction of CO2emissions.Containerisation International 2012“International Terminal Operator ofthe Year”APM Terminals was awarded for the“ongoing investment programs at itsterminals and its ability to implementand adapt very effectively global safety,security and environmental guidelinesat the local level, and successfullycombining development withcontinuous improvements in its CSRand environmental policies”.Containerisation International2012 Award for CorporateSocial ResponsibilityThe Port of Salalah, managed byAPM Terminals, was named winnerof the 2012 ContainerisationInternational Award for CorporateSocial Responsibility.Nigeria Maritime Excellence Awards“Best Terminal Operator of the Year”APM Terminals Apapa was named thewinner of the 2012 Terminal OperatorAward by the Maritime Reporters’Association of Nigeria (MARAN) at theirannual Maritime Excellence Awardsceremony held in December.All-India Maritime and LogisticsAwards 2012APM Terminals Mumbai was honouredas the “Container Terminal of the Year”as well as winning the Port/TerminalOperator of the Year – Safety & Qualityaward. This was their third consecutivewin as “Container Terminal of the Year”.Jordan 2011 Social SecurityExcellence Award for OccupationalHealth and SafetyAqaba Container Terminal (ACT), ajoint venture between the AqabaDevelopment Corporation and APMterminals, which manages the facility,was honoured with the Kingdomof Jordan’s 2011 Social SecurityExcellence Award for OccupationalHealth and Safety, the only safetyaward of its kind to be offered tocompanies by the Jordanian SocialSecurity Corporation.Pacific Maritime AssociationSafety AwardsFor the fifth consecutive year APMTerminals Pier 400 in Los Angeles wasnamed winner of both the CategoryA Southern California Area ContainerTerminal Safety Award, and theCoast Award for the safest terminalon the Pacific Coast by the PacificMaritime Association (PMA). APMTerminals Tacoma was named winnerof the Washington area’s Category CContainer Terminal Safety Award andthe Coast Award for Category C for thesafest terminal on the Pacific Coast.APM Terminals Tacoma also won theaward for the “Greatest reduction ininjury rates for the Washington Area”.The Signal Mutual Gerald H. HalpinSafety Excellence AwardAPM Terminals was presented withThe Gerald H. Halpin Safety ExcellenceAward for 2010-2011 by the SignalMutual Indemnity Associationrecognising APM Terminals’ operationsin the United States with Signal’shighest honour.The Signal Mutual IndustryLeader Safety AwardAPM Terminals Pacific Ltd., wasnamed winner of the annual SignalMutual Industry Leader Safety Awardin the category of large stevedoringoperations (over 500,000 man hoursworked) for demonstrating the mostimprovement in safety performance.India Maritime Week GatewayAward of ExcellenceAPM Terminals Chennai, Ltd., partof APM Terminals Inland Servicesoperations, was named “ContainerFreight Station of the Year” of 2011at the India Maritime Week GatewayAwards of Excellence Ceremony.USD = United States DollarROIC = Return on Invested CapitalFTE = Full-time EmployeeGHG = Greenhouse GasCO2= Carbon DioxideSignificant Spill = a function ofdistance to shore and volume ofindividual spill
  13. 13. We welcome any questions, commentsor suggestions you might have for thisreport and our performance.Please send your feedback tothe Sustainability department atthe World headquarters.You can also send an email directly to:Claire BryantHead of Sustainabilityclaire.bryant@apmterminals.comRutger VerkouwSustainability Managerrutger.verkouw@apmterminals.comWorld headquartersAPM TerminalsTurfmarkt 1072511 DP The HagueNetherlands+31–70–304–3100Regional officesAfrica – Middle EastAPM Terminals AMI ManagementDMCESTSuite 1809, Executive HeightsTECOM Site C, Al BarshaP.O. Box 361007DubaiUnited Arab Emirates+9714–4327550Fax: +9714–4327540Americas APM Terminals1000 APM Terminals Blvd.Portsmouth, Virginia23703-2631United States+1–757–686–6500Asia – PacificAPM Terminals (Singapore) Pte LtdSuite #41-0280 Raffles PlaceUOB Plaza, Tower OneRepublic of Singapore 048624+65–6692–2180EuropeAPM TerminalsBoompjes 403011XB, RotterdamNetherlands+31–10–4401900www.APMTerminals.com April 2013

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