Corporate Social Responsibility Report · 2015. 4. 21. · the Sustainable Shipping Initiative...

U-Ming Marine Transport Corporation

2013 Corporate Social Responsibility Report

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The Far Eastern Group

U-Ming Marine Transport Corporation Corporate Social Responsibility Report

2013



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Message from the President of U-Ming 4 Green U-Ming 31

U-Ming Marine Transport 6 U-Ming Green Initiative 32

Company Vision 6 Green Policy 33

Organization Profile 7 Green Involvement 36

U-Ming Ship Fleets /

Major Cargo

8 Green Operations 37

8 Green Investment 40

Scope of Operations 9 Green Certification 43

Fleet Profile 10 Environment Performance Index 44

Business Development 13 Safe U-Ming 46

Awards and Achievements 14 Safety Policy 47

Economic Performance Index 16 Operation Safety 48

Stakeholder Management 17 Customer Commitment 52

Stakeholder Management 17 Safety Performance Index 54

Stakeholder Communication Channels 18 Happy U-Ming 55

CSR Issues 19 Happy Workplace 55

Honesty U-Ming 20 Actions 56

Corporate Governance 20 Career Opportunity 57

Management Team 20 Employee Structure 58

Company Organization Chart 21 Employee Benefits 62

Affiliated Company Organization Chart 21 Labor Performance Index 68

Board of Directors 22 Social Contribution 69

Independent Directors 23 Activity for Public Welfare 69

Supervisors 23 Pillars of the Country 71

Remuneration Committee 23 Students 71

Internal Control Management System 24 E-Management U-Ming 72

Risk Management 26 U-Ming Digital Platform 72

Ethical Corporate Management 28

CSR Management 30

Appendix 1 GRI G3.1 Guidelines Table 73

Appendix 2 DNV Assurance Statement 82



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Contact Information U-Ming Marine Transport Corp. (2606)

Address: 29F, No. 207 Tun Hwa S. Rd., Sec. 2, Taipei, Taiwan TEL: (02)2733-8000 Company website: http://www.uming.com.tw/index.htm Contact site: [email protected] Contact person: Ashlee Yang( Planning Dept.)

About the Report

This report was issued in Chinese and English. In order to conserve paper, this report is available in electronic file format at the corporate governance section of the company’s official website (www.uming.com.tw). The content includes U-Ming Maritime Transport views and strategies towards corporate social responsibility and other sustainability issues and actual achievements are disclosed in order to provide a smooth communication channel with which stakeholders can learn more about the company.

Report Basis

U-Ming applied the Global Reporting Initiative (GRI) G3.1 framework to publish our first Corporate Social Responsibility (CSR) report in August 2013 with no self-declared level. For our second CSR Report issued in 2014, the report was verified by Det Norske Veritas (DNV) in accordance with the GRI Application Level B+ application level and a GRI G3.1 Guidelines Table was provided for cross-referencing.

Reporting Period

This report mainly consists of information from 2013 (January 1, 2013 to December 31, 2013).

Boundary and Scope

The non-financial information in this report is primarily from Taipei Headquarters (Taipei Headquarters, self-owned fleet and subsidiary fleet) and financial information includes subsidiaries and consolidated subsidiaries.

Report Date

Issued regularly once every year. The publishing date is September.

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

mailto:[email protected]

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



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Message from the President

Driving Efficiency for a Sustainable Tomorrow

In today’s business environment, companies not only need to maximize profits for shareholders but also seek out avenues to sustainable growth. Due to the impact of global warming on the environment and rising public awareness, protecting the environment and safeguarding the interests of all stakeholders should be a goal of a sustainable business.

From our founding in 1968 until today, we have consistently strived to maintain sound business

Based on shipping core competency, to be world-class logistic and transportation company, to be first class for customers, employees and investors

Choo Kiat Ong President U-Ming Marine Transport Corp.



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practices and flexibly adjust company strategy to respond to changes in the marketplace. Now that the economy has turned a corner and signs of economic recovery are beginning to appear around the globe, U-Ming has seized this opportunity to place orders for high efficiency ships so that the company will have an optimal fleet composition to offer our customers more options as the economy strengthens while also protecting the marine environment in order to do our part for the Earth.

With regard to corporate governance, U-Ming has adopted rigorous standards and best-practice principles for company management including establishment of a remuneration committee and a corporate governance self-evaluation system. The highest standards are adopted for our corporate governance system to raise financial transparency and protect the interests of shareholders. Corporate Governance Principles and Ethical Corporate Management Best-Practice Principles have been introduced to shape corporate culture creation within the company in order to raise enterprise value.

As for environmental issues such as global warming, U-Ming, being the leading bulk carrier company in Taiwan, has put forth a total effort to build high efficiency ECO ships, draft related environmental protection policies such as the Ship Energy Efficiency. Management Plan (SEEMP) and Environment Management System (EMS), constantly monitor ship fuel consumption and CO2 emissions and maintain the cleanliness of the ocean environment. Corporate social responsibility best practice principles have been set up to demonstrate our determination to act as a member of civil society and implant corporate social responsibility into the corporate culture. All employees including our crews on ships and staff on land need to play a part in protecting the environment. In order to serve as an example to others, U-Ming has joined the Sustainable Shipping Initiative (SSI) to relate and share shipping experiences and jointly map out a sustainable direction for future shipping markets.

We have entered into long-term cooperation with industry members and universities, offer jobs with generous salaries and use our abundant resources to train outstanding talent to serve as pillars for our country in the future. U-Ming and its corporate group has always made goodwill a core value of their organizations and actively participates in charity work to give back to community, show concern for disadvantaged groups and provide help to those who need it in the hope that we can make progress towards becoming a fair and equal society.

I always keep in mind that our employees are our most valuable asset. There would be no U-Ming today without the hard work and dedication of our employees. This is the reason why the company provides generous salaries, comprehensive benefits and continuing education opportunities to our employees. Comprehensive training plans are drawn up for employees with different business development requirements. On-shore and onboard drills are conducted and safe work environments are created and maintained. Employee activities are held on a non-regular basis each year to acknowledge and reward our hard-working employees and also give them a chance to relax and foster camaraderie.

As a member of the global shipping industry, U-Ming has a responsibility to protect the environment and stakeholder interests. Besides maximizing shareholder profits, the company also needs to protect the environment, actively participate in social and charity work, maintain good relations with stakeholders and do our best as a company to fulfill our social responsibilities. As a manager of U-Ming, I am dedicated to making further progress towards the goal of becoming an exceptional company, leading employees company-wide on the path of sustainable growth and make further contributions to society.

President



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U-Ming Marine Transport

Corporate Vision

Our social responsibility is fulfilled o economic, social and environmental levels by being a company that society can trust and rely on. Internal and external corporate social responsibility actions are planned to enhance and expand the shared awareness of corporate social responsibility among all company personnel so that the core concepts of corporate social responsibility are firmly implanted in the hearts of company personnel.

U-Ming adheres the Far Eastern corporate spirit of sincerity, diligence, thrift, prudence and innovation and strives to achieve the vision of ‘Based on shipping core competency, to be world-class logistic and transportation company, to be first class for customers, employees and investors’. We have adopted good faith principles and transparent thinking as a driving force for operations innovation to lead our employees forward to create value for shareholders and create and maintain a healthy Earth environment together with our stakeholders.

Ecology &

Environment

Social Welfare

Employee Rights

Shareholder Profits

Demonstrate value of sustainable development

Strive to fulfill corporate social responsibility

Become a trustworthy corporate citizen in society

CSR CSR



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Organization Profile

U- Ming Marine Transportation Co., founded in August 1968, started out in the cargo transport business. The company then entered the ocean transport business after our first bulk cement carrier was delivered in 1980. After a corporate reorganization, U-Ming Marine Transport was established in July 1984. Specializing in marine transport, the company’s first Panamax bulk carrier began operation at this time. In 1990, the company was listed on the Taiwan Stock Exchange becoming one of the top eight public listed firms in the Far Eastern Group and the first Capesize bulk carrier began operation. As we became a global company, our reach extended all around the world. U-Ming Marine Transport (Singapore) Private Limited, founded in January 1994, U-Ming Marine Transport (Hong Kong) Limited, founded in March 2003 and U-Ming Marine (Xiamen) Service Corporation, Ltd., founded in 2011, further expanded our company’s bulk transport business.

Today, U-Ming in engaged in the shipping, ship sale and purchase and ship agency businesses and also may engage in businesses that are not prohibited or restricted by law, except those that are subject to special approval. Being the bulk shipping company with the largest total deadweight in Taiwan, our corporate headquarters is located in Taiwan but our operations are global in reach. U-Ming embraces the Far Eastern spirit of sincerity, diligence, thrift, prudence and innovation and strives to achieve the vision of ‘Based on shipping core competency, to be world-class logistic and transportation company, to be first class for customers, employees and investors’.


Headquarters 29F, No. 207 Tun Hwa S. Rd., Sec. 2, Taipei City,

Taiwan

Founding Date August 29, 1968

Capital 8.58 billion NTD

Chairman Douglas Tong Hsu

President Choo Kiat Ong

Major

Businesses

Shipping, ship sale and purchase, ship agency,

businesses that are not prohibited or restricted by

law, except those that are subject to special

approval



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U-Ming Fleet / Major Cargo

U-Ming is primarily engaged in bulk goods transport, ship purchase and sale, ship agency and businesses that are not restricted or prohibited by law. The company currently have a broad range of bulk carriers in its fleet including Capesize bulk carriers, Panamax bulk carriers, Supramax / Handymax bulk carriers and auto loading / unloading cement carriers. In order to seek out more profit-making opportunities, U-Ming decided to expand into the oil tanker market and enter into strategic alliances and other forms of cooperation with companies in related industries. As a result, U-Ming formed a joint venture called Global Energy Maritime Co., Ltd. with reputable partners CPC Corporation, Taiwan and China Maritime Transport to further improve our operating performance and fulfill the expectations of investors and shareholders.

U-Ming crossed over into dry bulk and oil transport businesses and transports commodity goods including iron ore, coal cement, grain and crude oil. Of these, iron ore and coal are the main goods transported by the company. Our expertise and flexibility in dispatching ships has won the support and admiration of commodity transport customers. In order to provide better service quality, the company has strengthened ship security and information management and closely monitors economic cycles for bulk shipping markets. Due to our outstanding business performance, the company delivers high rate of returns on investment and has received consistent high marks from shareholders and investors.

U-Ming has ample capital which the company can flexible deploy and a sound financial structure. All



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information is supplied in a transparent manner. The company has invested U-Ming Marine Transport (Singapore) Private Limited and U-Ming Marine Transport (Hong Kong) Limited and established U-Ming Marine (Xiamen) Service Corporation, Ltd. in 2011 to extend our reach into the China market. U-Ming expands its operation based on our global business strategy and macro perspective outlook. The company keeps a watchful eye on changing markets and retires ships regularly to keep its fleet young and nimble so that U-Ming can respond to rapidly changing market environments. Plans are actively made to expand our bulk carrier fleet with a goal of multiplying the size of our fleet. Robust business growth is sought through a spirit of ‘good can always be better’ in order to make progress towards the goal of becoming a world-class dedicated logistics company.

Scope of Operations

The primary business operation of U-Ming is transport of iron ore, coal, grain, cement, crude oil and other commodity goods. U-Ming is dedicated to providing high quality transport services, a wide selection of ships and satisfying the specific requirements of customers. Scope of Operations

As a dedicated provider of global tramp shipping and transportation services, our fleet service network extends all over the globe including major commodity trading regions in Asia, Europe, Africa and Oceania. Our broad service network and youthful fleet has greatly improved our shipping quality. The professional management team at U-Ming carefully evaluates economic conditions, constantly monitors changes in market supply and demand and actively engages in strategic cooperation with other industry members. U-Ming has raised overall profitability by crossing over into the dry bulk and crude oil shipping markets and diversifying profit sources.

Our seamless transport network and optimal fleet allocation in the spot and long-term contract markets reduces operation risk caused by environmental changes and market fluctuations. U-Ming is committed to developing stable and high quality cooperative relations with major corporate customers. Besides their stable financial structure, good customer relations shows that the excellent service quality provided by U-Ming has won their trust. Providing trustworthy and excellent transport services is the prime mission of U-Ming to shareholders and customers.

Fleet Profile

U-Ming is currently the largest public-listed bulk carrier company in Taiwan with respect to deadweight tonnage (DWT). The company operates a broad range of bulk carriers which provides a wide selection for cargo owners to choose from. After entering the crude oil transport market, U-Ming offers crude oil transport service by Very Large Crude Carrier (VLCC). This broad range of ship types not only gives U-Ming an advantage in transportation service provision but also allows the company to share in the benefits when the market and economic conditions favor certain types of ships as well as diversify risks when market conditions are poor which helps even out the effects of market volatility on financial performance.

1. Capesize Bulk Carriers

2. Panamax Bulk Carriers

3. Supramax / Handymax Bulk Carriers

4. Oil / Chemical Tankers

5. Self- Loading / Unloading Carriers



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U-Ming Marine Transport’s fleet numbered 33 vessels as of the end of 2013. In anticipation of the future economic recovery, U-Ming has ordered 19 new vessels to add to the fleet to bring our deadweight tonnage (DWT) up to 6 million tons. The company shall work to achieve our fleet expansion plans, place new ship orders at opportune times, continue to retire older ships to keep our fleet young and agile and minimize risks from unforeseen events to provide the best service to our customers. Quality transport is the basic obligation and responsibility of U-Ming Marine Transport.

The low point in the dry bulk shipping has passed. Demand for shipping is increasing along with expanding Chinese economy so the economy is certain to steadily recover in the future. In addition to pursuing profits, U-Ming has also made environmental protection and energy conservation a key element of our operations. Focusing on future market opportunities, U-Ming will continue to order new energy efficient and environmentally friendly vessels to fully prepare for the next wave of economic growth.

Capesize Bulk Carriers

Capesize bulk carriers are the second largest type of dry bulk carrier. Dry bulk carriers with a deadweight tonnage (DWT) of 100,000 tons or greater are categorized as capsize vessels. Iron ore is the primary cargo for these vessels. Since large vessels could not pass through the Suez Canal and had to go around the Cape of Good Hope, these dry bulk carriers were given the name ‘Capesize’. As of the end of 2013, the company has 10 Capesize carriers and an additional two Capesize jointly constructed with Hong Kong ship owners so our Capesize fleet comprises of 12 vessels.

No. Name of Vessel DWT Nationality

1 Cape Cathay 152,042 Singapore

2 Cape Oceania 152,025 Hong Kong

3 Cape Venus 172,612 Singapore

4 Cape Jupiter 172,480 Singapore

5 Cape Mercury 165,819 Singapore

6 Cape Mars 175,882 Singapore

7 Cape Saturn 175,882 Singapore

8 Cape Globe 206,095 Singapore

9 Cape Neptune 206,012 Singapore

10 Cape Stars 206,068 Singapore

11 ◎Cape Victory 177,000 Hong Kong

12 ◎Cape Asia 176,000 Hong Kong

Note: ◎ indicates jointly invested vessel



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Panamax Bulk Carriers

These dry bulk carriers were given this name because they are the largest vessel which can pass through the Panama Canal. Their tonnage ranges from 60,000 to 100,000 tons and their main cargo is iron ore, coal and grain. The company has a total of these 10 vessels as of the end of 2013.


1 Cemtex Sincerity 79,999 Hong Kong

2 Cemtex Diligence 79,999 Taiwan

3 Cemtex Thrift 80,230 Singapore

4 Cemtex Prudence 80,226 Singapore

5 Cemtex Pioneer 77,598 Singapore

6 Cemtex Wisdom 77,598 Singapore

7 Cemtex Venture 74,000 Hong Kong

8 Cemtex Orient 98,000 Hong Kong

9 Cemtex Innovation 81,326 Singapore

10 Cemtex Creation 81,326 Singapore

Supramax Bulk Carriers

The tonnage of Supramax bulk carriers range from 50,000 to 60,000 tons. As of the end of 2013, the company has a total of two vessels which provide iron ore, coal, grain and steel bulk transport services.


1 Asian Champion 57,000 Singapore

2 Asian Triumph 57,000 Singapore

Handymax Bulk Carriers

The tonnage of Handymax bulk carriers is 50,000 tons and under. As of the end of 2013, the company one of these vessels which provides iron ore, coal, grain and steel bulk transport services.


1 Asian Excelsior 45,190 Singapore



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Oil / Chemical Tankers

Very large crude carrier (VLCC) are vessels with a tonnage of 250,000 or more which can transport two million barrels of crude oil. The Starlight Venture is U-Ming’s first crude oil tanker. As of the end of 2013, the company has one VLCC and one chemical tanker, Gem No. 8. U-Ming will continue to add vessels to this fleet so that the company can provide a more diverse range of services to our customers. Note: ◎ joint

venture vessel


1 Starlight Venture 318,824 Hong Kong

2 ◎ Gem No. 8 3,382 Taiwan

Self-Loading / Unloading Carrier

The company has six vessels of this type in its fleet. Asia Cement No. 1, Asia Cement No. 2, Asia Cement No. 3, Asia Cement No. 5, Asia Cement No. 6, Asia Cement No. 7 make up our auto loading / unloading carrier fleet.


1 Asia Cement No. 1 6,169 Taiwan






U-Ming Marine Transport Fleet

Type of Vessel Number 2013 Carrying Capacity 1,000 Tons

Capesize Bulk Carrier 12 Iron Ore 10,222

Panamax Bulk Carrier 10 Coal 13,422

Supramax / Handymax Bulk

Carriers

3 Cement 3,388

Oil / Chemical Tankers 2 Crude Oil 1,317

Self-Loading / Unloading Carrier 6 Other 1,244

Orderbook 19 Total 29,593

Total 52 Growth over same period

10 %



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Operations Development

The market and environment today still remains in a state of oversupply but the worst has already past. The economy is on the road to recovery. As one of the leading providers of the maritime logistics services in Taiwan, our comprehensive Customer Relationship Management (CRM) system records customer and industry developments and up-to-date market information may be accessed at any time through our versatile e-platform. By staying informed of customer actions and market trends, U-Ming is able to flexible adjust our company operation strategy to raise operations efficiency.

There is no room for complacency about finance and capital. Maintaining a good financial system is the basis of any sustainable business. U-Ming makes use of broad range of financing channels, strictly controls financing costs and keeps a close eye on trends and changes in foreign exchange rates and interest rates to avoid related risks.

U-Ming also considers its employees to be a valuable asset. In addition to providing non-periodic training to onshore and ship personnel, the company has established U-Ming Marine (Xiamen) Service Co., Ltd. to perform ship crew recruiting and ship management in conjunction with our expansion into the China market. Our ships are another valuable asset of U-Ming. In order to honor our commitments to our customers, regular maintenance and upkeep is performed, shipboard environments are kept in good and safe condition and safety management systems have been established. Additionally, international law and port inspection procedures are strictly followed.

Everyone should play a part in protecting and maintaining the environment. As a member of the civil society, U-Ming decided to adopt “spare no effort to protect the ocean environment and ecology” as its code of responsible business practice. Environmental protection policies have been established for our offices and ships. Energy saving and carbon reduction devices have been installed on our ships and low-speed sailing has been introduced to reduce emissions of harmful gases. Effective green environment measures have been introduced internally and externally to keep U-Ming travelling on a sustainable green path.

In addition to conserving energy and reducing carbon, the introduction of low-speed sailing in response to current market changes has also lowered fuel consumption which reduces costs. The long-term contract percentage will also be raised at appropriate times to ensure stable profits and lower operating risk. The fundamental consideration for the customers with which the company conducts business is reputation and financial stability. U-Ming has adopted strategies such as replacing ships when prices are relatively low, steady fleet expansion, keeping our fleet of ships youthful and maintaining competitiveness in the industry to maximize shareholder profits and create a win-win situation.

The fleet is also modernized and expanded at suitable times to raise fleet operation efficiency and keep fleet age low. U-Ming is currently strengthening our cooperation with many outstanding companies, evaluating investment or acquisition of sound companies and asset renewal and integration to strengthen cost controls, lower risk, increase overall operating efficiency, strengthen industry competitiveness and further expand our scale of operations and services in the marketplace. The company hopes to provide a broader range of choices and more comprehensive service to its customers with its upgraded fleet and expanded operations.



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Awards and Outstanding Achievements

Awards Received from 1990 to 1999

1990 Granted First Place Ocean-Going Regular Shipping Line Award by MOTC.

1991 Named Outstanding Vessel-Operating Carrier by MOTC

1992 Granted Outstanding Achievement, Outstanding Operating Performance and Fleet Expansion Awards by MOTC

1993 Granted Outstanding Achievement, Outstanding Fleet Expansion, Model Ship and Port Crew Award, Model Seafarer Award by MOTC at 39th Maritime Festival

1994 Received Class Three Transport Industry Award and Certification from MOTC at 40th Maritime Festival

1996 Cemtex Orient and Cemtex Frontier granted AMVER award by US Coast Guard

1996 Granted Outstanding Fleet Expansion Award by MOTC

1997 Granted AMVER award by American Institute in Taiwan

1998 Granted Outstanding Fleet Expansion Award by MOTC at the 43rd Maritime Festival

1999 Given Vessel-Operating Carrier Fleet Expansion commendation by MOTC


2002 Granted Outstanding Contribution Award by Keelung Harbor Bureau

2003 “Yi Feng Ke Xing” plaque presented to Asia Cement No. 1 by rescued crew members for the assistance provided during ship rescue.

2005 Ranked 59th on the list of Asia’s 150 Best Companies compiled by BusinessWeek Asian Edition

2005 U-Ming Marine Transport on list of Asia’s 200 Best Under a Billion Companies compiled by Forbes Asia, received Top 200 Award for Corporate Excellence / Special Award

2007 Ranked no. 6 on list of 2006 Asia’s Best Shipping Companies compiled by Marine Money

2008 Presented Outstanding Operations Growth award by MOTC at 54th Maritime Festival


2009 Presented Outstanding Operations Growth award by MOTC at 55th Maritime Festival



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2010 Receives CG6005 Corporate Governance System Evaluation certification from the Taiwan Corporate Governance Association

2010 Selected as one of Taiwan’s Most Admired Companies by Commonwealth Magazine


2011 Presented 2010 Green Shipping Development Award and 2010 Second Place Award for Number of Onboard Interns and Internship Days for Domestic Maritime School Students by MOTC

2011 Awarded Green Flag certification by U.S. Port of Long Beach

2011 Awarded ISO-14001:2004 certification to enhance the image of U-Ming, expand into shipping markets and demonstrate our continued contribution in the field of environment protection.

2012 Presented 2011 Green Shipping Development Award and 2011 Third Place Award for Number of Onboard Interns and Internship Days for Domestic Maritime School Students by MOTC

Awards Received in 2013

2013 Presented 2012 Green Shipping Development Award by MOTC at 59th Maritime Award to acknowledge U-Ming’s contribution in the field of environment protection

2013 Receives Far Eastern Spirit Excellence Award for its fleet replacement and expansion plan which greatly enhanced the competitiveness of U-Ming’s fleet.

▲MOTC’s 2012 Outstanding Green

Shipping Development Award

▲2013 Far Eastern Spirit Excellence

Award



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Economic Performance Index

Since our company was listed on the stock exchange, the operations and financial performance of U-Ming has improved steadily in order to honor our commitment to maximize profits for our shareholders. 2013 sales decreased by 4% compared to 2012 due to the overall economy. The economy has now passed its low point and U-Ming will take advantage of opportunities to maximize shareholder profits and make progress towards our goal of creating a sustainable business.

Note: All company financial data has been audited by Deloitte & Touche.

(Unit: NTD) 2013 2012 2011

Operating income 7,407,948 7,963,624 8,683,502

Operating expenses 6,364,360 6,760,237 5,763,266

Employee

Remuneration and

Welfare

1,029,637 1,003,438 881,958

Cash Dividend 1,716,033 2,145,042 2,574,050

Income tax expenses 64,886 -81,259 67,586

Retained earnings 17,554,744 18,162,354 18,941,215

Earnings per share 1.83 2.12 3.18

Dividend yield 4% 5% 6%

EBITDA margin (%) 45% 43% 52%

Source of data 2013 Annual Report 2012 Annual Report

Accounting standard International Financial Reporting Statement

Versions, International Accounting Standards,

interpretations and interpretation

pronouncements (abbreviated as International

Financial Reporting Standards (IFRSs))

ROC Generally

Accepted Accounting

Principles

Note: According to the Accounting Standard Framework Used by ROC Companies by the Financial Supervisory Committee (FSC) announced on May 14, 2009, listed, OTC, and emerging stock companies prepare consolidated financial reports using International Financial Reporting Statement Versions, International Accounting Standards, interpretations and interpretation pronouncements (International Financial Reporting Standards (IFRSs)) approved by the FSC in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers beginning in 2013.



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Investors

Customres

Employees Suppliers

Local Community

and NGOs

Governments

Stakeholdes

Stakeholder Management Stakeholder Management

As a leader in Taiwan’s bulk shipping industry, U-Ming realizes that it needs to uphold its corporate social responsibility. The chart below shows the six stakeholders identified and classified by U-Ming. Stakeholders include governments, investors, customers, employees, suppliers and the local community and NGOs. Two-way transparent communication channels have been established with the following stakeholders to understand their needs. Corporate social responsibility objectives and directives are determined based on their individual needs to achieve total and complete communication.

U-Ming



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Stakeholder Communication Channels

U-Ming actively listens to stakeholder concerns and provides smooth-operating communication channels for stakeholders to report their concerns and allow more efficient communication. The table below contains the various issues that stakeholders are concerned about and the different forms of communications used by the company and stakeholders.

Counterpart Key Issues Forms of Communication

Investors General shareholders Corporate shareholders Rating agencies

1. Profitability 2. Transparency of

information disclosure 3. Corporate governance 4. Fulfillment of corporate

social responsibility

1. Shareholders’ meeting / investor conference

2. Company annual report 3. Regularly posted

information of Market Observation Post System

Customers Cargo owners Charterer

1. Shipping / chartering price

2. Service quality 3. Ethical corporate

management

1. Regular customer visits 2. Dedicated public mailbox

Employees Management General employees

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

1. Public mailbox of the Human Resource Section

2. Company internal website 3. Employee welfare

committee

Suppliers Fuel, parts and material suppliers

1. Price competitiveness 2. Environmental

management

1. Supplier evaluations 2. Contract specifications

Local communities NGOs

Local and international civic groups

1. Social welfare feedback 2. Ocean environment

protection 3. Ship crew welfare / safe

work environment

See pages 31-70

Government Supervisory agencies All levels of government

1. Compliance with laws and regulations

2. Participation in public policy

3. Local feedback

1. Company annual report 2. Regular communication

with related agencies



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CSR Issues

In consideration of overall stakeholder needs, U-Ming has discussed and organized the various issues that stakeholders are concerned about and evaluated the materiality of the key issues. These evaluation results serve as a basis for company sustainable development strategy. U-Ming is concerned about all stakeholder needs. In addition to striving to understand these needs, different ways are used for response and interaction. We believe that establishing good interaction with stakeholders creates more value for the company and helps us make progress towards sustainable development.

▲ U-Ming CSR Materiality Matrix Analysis

Primary Issues Business strategy Corporate governance Risk management Economic performance Energy management Investments in environmental

protection equipment Waste management Environment management

policy Greenhouse gas emissions Occupational safety and health

policy / management system Environmental safety and

health Customer commitments Transportation quality Employee recruitment /

retention Employee welfare /

remuneration / rights

Secondary Issues Labor – management relations Career development and

training Supplier management Impact of business operation on

the ecology and environment Community participation and

social / public welfare activities Stakeholder communication

channels Compliance with environmental

laws Compliance with local laws and

regulations Impact of business operations

on local communities Labor complaint system Routine health exams

Honest U-Ming

Chapters in the Report

Green U-Ming

Safety U-Ming

Happy U-Ming



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Honesty U-Ming Corporate Governance

The corporate governance framework of U-Ming is shown in the chart below. The primary goal of corporate governance is to build trust between a company and its shareholders, monitor through public mechanisms whether results conform to forecasts and protect the inalienable rights of shareholders. The company received CG6005 corporate governance system assessment certification in June 2010.

The company’s corporate governance principles, drafting with reference to the Corporate Governance Best-Practice Principles for TSEC/ GTSM Listed Companies, were passed by the Board of Directors on March 17, 2011. These principles were then established and implemented as U-Ming Maritime Transport Corporation Corporate Governance Best-Practice Principles. U-Ming’s Board of Directors and senior management actively promote corporate governance, focus on core businesses, carefully evaluate risks, place fleet replacement plans and raise market competitiveness. With regard to internal audits, the Chairman actively conducts internal audits which are reported to the group for internal review. U-Ming outstanding operations and management was recognized by international investment ratings agencies and the company was named a constituent stock on the MSCI Index. A remuneration committee has been established which is responsible for setting evaluation standards for the company board of directors and management to uphold shareholder interests and establish a more comprehensive corporate governance system.

In order to uphold our principles of integrity, U-Ming established the U-Ming Ethical Corporate Management Best Practice Principles, the U-Ming Code of Ethical Conduct and U-Ming Corporate Social Responsibility Best Practice Principles to introduce ethical and corporate management best practice principles to the company and create a corporate culture based on integrity. U-Ming is not just responsible to its shareholders. The company also has fulfilled its obligations to stakeholders. Core concepts regarding corporate social responsibility best practice principles can be communicated to all employees be means of this code. In addition to performing our duty to maximize shareholder profits, the resources of U-Ming may also be utilized to give back to the society and contribute to marine environment protection in order to fulfill our corporate social responsibility together with company personnel.

Management Team

Position Name

President Choo Kiat Ong

Senior Vice President Robert Kao

Senior Vice President Jefferson Hsu

Business Department Vice President James Chu

Finance Department Vice President Stephen Chen

Accounting and Planning Department Vice President Bismark Chang

Maritime Department Special Asst. to the President Alan Hsieh

Human Resource and Secretarial Department General Manager

Simon Peng

Auditing Department General Manager Alex Chen

E & M Department Special Asst. to the President Huan-Chang Chen



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Company Organization Chart

Affiliated Company Organization Chart

Marine Div

Ma rin e D ept

E & M Dept

Business Div

Business I Dept

Business II Dept

Finance Div

F i n a n c e D e p t

P l a n n i n g D e p t

Adm. Div

Accounting Dept.

Secretarial Dept

HR Dept.

Board of Directors

Chairman

Vice Chairman

Shareholders’ Meeting

S u p er v i so r s

President Auditing Dept

Remuneration

Committee

U-Ming Marine

Transport Corp.

U-Ming Marine Transport

(Singapore) Pte .Ltd.

Yue-Li Investment

Corp

Yue-Tung

Investment Corp

Falcon Investment

Pte. Ltd.

Eagle

Investment Pte. Ltd.

U-Ming Marine

Transport (HK) Ltd.

U-Ming Marine

(Xiamen) Service Co. Ltd

Overseas Shipping

Pte. Ltd.



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Board of Directors

The Board of Directors play an essential role in corporate governance implementation. Directors are responsible for determining the business direction of the company, undertaking operation risks and upholding shareholder interests. U-Ming assesses the talents and expertise of various persons and determines if their knowledge of economics and awareness of social and environmental issues. Nine directors and three supervisors are selected to serve on the board of directors. Representatives of company departments and internal auditors are also asked to attend board of directors meetings. A total of six board meetings were convened in 2013 and the director and supervisor attendance rate was 88%. Directors mainly perform supervision over economic affairs and discussions usually focus on economic issues. Minutes are kept of each meetings and directors will recluse themselves if there is any conflict of interest regarding a certain issue in accordance with the provisions of Article 11 of the Rules of Procedure for Meetings of the Board of Directors.

Under the leadership of Chairman Douglas Hsu, directors perform their duties to the best of their ability and demonstrate a high degree of integrity and commitment toward the organization to act based on common interest and maintain a cautious outlook in order to make current judgments which create maximum value for all shareholders.

▼Chairman, Director and Supervisor Information

Position Name Gender Work Experience / Educational

Background

An Instructor of High Position in a Department of Commerce, Law, Finance, Accounting or Other Academic Department Related to the Business Needs of the Company in a Junior College, College or University

Have Work Experience in the Fields of

Commerce, Law, Finance Accounting or

Shipping

Board of Directors

Douglas Tong Hsu

Male Masters of Economics, Columbia University

■

Directors

Tsai-Hsiung Chang

Male President, Asia Cement Corporation

■

Kun-Yen Li Male Chairman, Ya Tung Ready-Mixed Concrete Corp.

■

Douglas Jefferson

Hsu Male

MBA, Mendoza College of Business, University of Notre Dame

■

Chee-Chen Tung

Male Masters, Mechanical Engineer, Massachusetts Institute of Technology

■

Yun-Peng Chu

Male Ph.D., Economics, University of Maryland

■ ■

Wen-Yen Pan

Male Ph.D., Chemical Engineering, University of Wyoming

■

Choo Kiat Ong

Male Nanyang Business School, Nanyang Technological University

■

Kuan-Chun Lee

Male MBA, Texas A&I University ■

Supervisors

Virginia Shao

Female Department of Accounting, Soochow University

■

Peter Hsu Male Masters, Operations Research, Stanford University

■

Tzu Pong Chang

Male Department of Electrical Engineering, National Taiwan University

■



23

Independent Directors

Chee-Chen Tung, Yun-Peng Chu and Wen-Yen Pan are the three external directors on the company’s board of directors. The articles of incorporation are scheduled to be revised in 2015 and independent directors will be elected to the board in 2015. Later in 2016, independent directors which comply with Corporate Governance Best-Practice Principles for TWSE/GTSM Listed Companies regulations.

Supervisors

U-Ming has three supervisors: Virginia Shao, Peter Hsu and Tzu-Pong Chang who assist the decision-making of the board of directors through their specialization and independence to create a sound corporate governance system. In addition to the periodic review of company finances and business operations, supervisor also ask management to submit reports and communicate at non-regular intervals with company employees, shareholders, internal auditors and CPAs. The following items describe how supervisors communicate with shareholders, employees, internal auditors and CPAs.

1) Communication between supervisors, employees and shareholders: Company employees and shareholders may communicate at any time through the company website.

2) Communication between supervisors and internal auditors: Supervisors convene a supervisor meeting each quarter. Minutes are prepared following the meeting and the company president and department supervisors are notified of major discussion items and resolutions. Five related meetings were convened last year. The internal audit supervisor attended each meeting and reported the audit implementation status and major internal audit events and implementation, reporting and tracking of the items instructed by the supervisors were completed.

3) Communication between supervisors and CPAs: Supervisor review meetings are regularly convened by supervisors and CPAs. A total of two meetings were convened last year. The internal audit supervisor and accounting supervisor both attended these meetings. Related issues were discussed and implementation, reporting and tracking of the items instructed by supervisors were completed.

Remuneration Committee

The Remuneration Committee is primarily tasked with the drafting and review of remuneration policy for company directors and management as well as creation of a sound remuneration management system and complete corporate government framework. The company established the Remuneration Committee in accordance with the law on December 26, 2011. The Remuneration Committee convened twice in 2013. The attendance rate was 100%. Major topics of discussion were the company employee remuneration plan, disclosure and explanation of senior management remuneration and ensuring that there is a fair relationship between remuneration and services performed in accordance with the law. In addition, company management remuneration and employee profit sharing amounts are determined based on job position and performance and pass Board of Directors resolution before being submitted to the Remuneration Committee for review and approval.



24

Control Environment

Risk Assessment

Control Activities

Information and Communications

Monitoring

Internal Control Management System

Auditing Department

In order to uphold shareholder interests, U-Ming has established an Auditing Department tasked with promoting sound and ethical company management and achieving the following goals:

1. Ensure that operation results and efficiency reach target levels

2. Examine reliability of financial reports and oversee company legal compliance

3. Assist the company’s board of directors and management understand the effectiveness of the internal control system

There are four employees working in the company’s Auditing Department, each with their own respective duties. Internal controls are divided into nine main cycles: sales and receipt cycle, purchase and payment cycle, maritime affairs cycle, labor and wage cycle, finance cycle, fixed asset cycle. R&D cycle and information system cycle. These internal systems can help modify current systems to raise efficiency, eliminate unsuitable processes in organization operation processes, create an E-work environment, strengthen computer audits, quantify audit results and track / verify improvement conditions. A total of 50 items are found during the physical implementation of 2013 audit plan and improvements were made to all of them to raise operating efficiency and work quality, reduce costs and ensure asset security.

Judgment of the effectiveness of the internal control system and internal control system design and implementation effectiveness is performed in accordance with the Regulations Governing Establishment of Internal Control Systems by Public Companies. The internal control system judgment criteria used in the regulations are based on management control procedures. The internal control system is comprised of the following elements: 1.Control environment 2. Risk assessment 3. Control activities 4. Information and communications 5. Monitoring.

▲Internal control system judgment criteria



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Internal Control Statement

The Internal Control Statement issued each year verified the establishment, implementation and maintenance of the internal control system and provide reasonable assurance of achievement of objectives regarding operations effectiveness and efficiency (including profit, performance and asset security), financial reporting reliability and compliance with relevant laws and regulations.

U-Ming Marine Transport Corporation Internal Control Statement

Date: May 5, 2014

The Company states the following with regard to its internal control system in 2013 based on the results of its self-inspection:

一、 The Company is fully aware that the board of directors and management are responsible for the establishment, operation and maintenance of the internal control system. The Company has established such a system which is directed at providing reasonable assurance of the achievement of objectives regarding operation effectiveness and efficiency (including profit, performance and asset security), financial reporting reliability and compliance with relevant laws and regulations.

二、 Internal control systems have inherent limitations. Regardless of how perfectly the systems are designed, effective internal control systems may only provide reasonable assurance regarding the achievement of the above three objectives. Moreover, the effectiveness of internal control systems may vary along with changing environments and circumstances. However, the Company’s internal control systems contains self-monitoring mechanisms which allows the Company to take corrective actions once a deficiency is identified.

三、 The Company judges the effectiveness of the internal control system and internal control system design and implementation effectiveness in accordance with the criteria in the Regulations Governing Establishment of Internal Control Systems by Public Companies (hereinafter referred to as the Regulations). The internal control system judgment criteria used in the Regulations are based on management control procedures and divide the internal

control system into the following five elements：1. Control environment 2. Risk assessment 3. Control activities 4.

Information and communications 5. Monitoring.

四、 The Company has evaluated the design and operating effectiveness of its internal control system using the above internal control system judgment criteria.

五、 Based on the results of the evaluation mentioned in preceding item, the Company believes that its internal control system (including subsidiary monitoring and management) consisting of awareness of achievement of operation effectiveness and efficiency objectives, financial report reliability and compliance with applicable laws and regulations was designed and implemented effectively and provides a reasonable assurance of achievement of the above objectives.

六、 This Statement shall be made an integral part of the Company’s Annual Report and Prospectus and will be made available to the public. Any falsehood, concealment or other illegality in the above publicly disclosed content will be subject to legal liability under Articles 20, 32, 171 and 174 of the Securities and Exchange Law.

七、 This Statement was passed at the Company’s Board of Directors meeting held on March 5, 2014 where none of the nine attending directors expressed a dissenting opinion and all affirmed the content of this Statement.


Chairman： Signature / seal

President： Signature / seal



26

Risk Management

In order to strengthen corporate governance and make progress towards sustainable operations, U-Ming has actively organized all potential risks to operations and profitability. Inside our corporate organization, each department has its own functions and is responsible for their risks. In line with our corporate vision and commitment to social responsibility, the Board of Directors approved risk management policy and procedures on March 17, 2011 for implementation and appropriate risk quantification is performed to assist with prevention.

Risk Management Organization Framework

The organization framework for U-Ming risk management is related management units are assigned responsibility based upon business characteristics. The Auditing Department evaluates the existing or potential risks of various work. Risk-oriented annual audit plans are drafted and the bodies responsible for managing various risks are as follows:

Board of Directors

The Board of Directors is the highest risk management body in the company with a mission to comply with relevant laws, implement overall company risk management, clearly understand the risks facing the bulk shipping industry and assume ultimate responsibility for risk management.

Auditing Department

The Auditing Department is an independent body which reports directly to the Board of Directors. The duties of this department are to ensure the effective operation of the internal control system to implement risk management functions, promote sound company management, offer timely recommendations for improvement, guarantee that internal self-checks continue to be implemented effectively so that they may serve as a basis for review and correction of the internal control system.

Finance Department

The Finance Division determines short, mid and long-term planning and investment strategy for the company. With regard to investment risk, the department performs operation risk evaluations of investments and manages investment portfolios. Derivatives and other instruments are used to hedge against exchange rate and interest rate risks. Hull, war risk, protection and indemnity (P&I) club insurance are used to avoid and transfer operation risk. Other insurance including kidnap & ransom, loss of hire, charterer’s liability are also planned in accordance with business requirements.

Business Department

The Business Division is primarily responsible for evaluation of various sales and business risks, analysis of customer credit risk prior to undertaking business, monitoring of market risk, cargo transport and weather risks when undertaking business, speed up account receivable collection after undertaking business and ensuring that the risk control system and procedures are implemented effectively.



27

Engineering and Materials Department

The Engineering and Materials Department closely monitors and supervises the construction of newly ordered ships to reduce operation risk for new ships. By strengthening maintenance and upkeep of existing ships and keeping track of ship and shipyard status, ship breakdown risk is reduced and ship operation periods are extended to achieve maximum turnaround efficiency for the fleet.

Labor Safety and Health Department

In order to implement national occupational and health regulations and International Safety Management Code (ISM CODE) and adhere to the safety management policies of “embracing a spirit of sincerity, diligence, thrift and prudence, promotion of safe operation of ships, ensuring the safety of personnel at sea and avoiding marine environment pollution, the company established the Labor Safety and Health Office responsible for safety and health work and ship safety inspection matters, providing safe ship operation and work environments and devising preventative measures for foreseeable risks to reduce operation risk and strengthen customer trust.

Marine Department

Instruction and training on ISM code is held at regular times each times to familiarize onboard and on-shore personnel with their work environment, improve safety management and reduce risk. The company has completed International Ship and Port Facility Security Code (ISPS) for each class of ships to comply with International Convention for the Safety of Life at Sea (SOLAS). Certification is approved and issued by related sections so onboard and on-shore personnel are familiar with their individual security duties and the securities measures that need to be taken to prevent illegal activities from occurring.

Efforts to promote ISO-14001 Environmental Management System Certificate, implement the Ship Energy Efficiency. Management Plan and perform overall fleet environment quality system operation demonstrate our commitment to the environment and fulfill our responsibilities as a global citizen. The Maritime Labour Convention 2006 (MLC2006) system was also established to ensure the health and welfare of all ship personnel are protected.



28

Ethical Corporate Management

U-Ming has taken the initiative to establish U-Ming Ethical Corporate Management Best Practice Principles and U-Ming Code of Ethical Conduct to set down ethical standards and good faith principles and create a corporate culture based on integrity. By promoting a spirit of integrity and ethical concepts among all personnel, U-Ming can proceed down a path of sound and sustainable development. U-Ming Ethical Corporate Management Best Practice Principles and the U-Ming Code of Ethical Conduct apply to all personnel at the company and are disclosed on the company website and inside our annual reports and prospectus.

U-Ming Ethical Corporate Management Best Practice Principles: When engaging in commercial activities, directors, supervisors, managers, employees of U-Ming shall not directly or indirectly offer, promise to offer, request or accept any improper benefits, nor commit unethical acts including breach of ethics, illegal acts, or breach of fiduciary duty for purposes of acquiring or maintaining benefits. The following preventative measures were included when the company established the code of conduct to prevent unethical behavior.

1. The offering and acceptance of bribes is prohibited

When conducting business, company personnel shall not directly or indirectly offer, promise to offer, request or accept any improper benefits, including rebates, commissions, grease payments, or offer or accept improper benefits in other ways to or from customers, contractors, suppliers, public servants, or other interested parties, unless the laws of the territories where the companies operate permit so.

2. Offering illegal political donations is prohibited

When directly or indirectly offering a donation to political parties or organizations or individuals participating in political activities, company personnel shall comply with the Political Donations Act and their own relevant internal operational procedures, and shall not make such donations in exchange for commercial gains or business advantages.

3. Improper charitable donations or sponsorship are prohibited

When making or offering donations and sponsorship, company personnel shall comply with relevant laws and regulations and internal operational procedures, and shall not surreptitiously engage in bribery.

4. Offering or acceptance of gifts, benefits or special treatment is prohibited

The company prohibits its personnel from directly or indirectly requesting gifts, benefits or special treatment from the suppliers, contractors or customers with which the company conducts business and seeks to conduct business including special or lavish meals or other forms of entertainment which are uncustomary or unrelated to business.

Company personnel may not accept any form of gift or benefit from suppliers, contractors or customers. However, commemorative or promotional gifts of a customary or ceremonial nature with a value of NTD2000 or less or stamped with the company seal are not included in this prohibition. Company personnel shall politely refuse any other item or cash by stating company regulations. If refusal is not permitted, the item should be handed over to the Secretarial Department for proper handling. Company personnel may not accept prizes or gifts from suppliers at company ceremonies and friendship activities unless advance written notification is submitted to the section supervisor.

Company personnel may not borrow money from suppliers, contractors or customers or receive any other form of repayable or carefree leases or loans.



29

Personnel on business trips may not accept dining invitations or entertainment from their counterparts that is improper or results in misconduct. Personnel shall be especially careful and discrete about their actions and language while away on business since the personnel are representing the company.

The company shall engage in ethical business practices in a fair and transparent manner. Prior to conducting business, the company shall consider the legality and the past unethical conduct of contractors, suppliers, customers or other business counterparts and avoid conducting business with another party with a record of unethical conduct. The content of contracts signed with other parties should include ethical corporate management policies and provisions about termination or cancellation of the contract in the event of unethical conduct.

Board of directors and management commitments at U-Ming are actively carried out. Ethical corporate management practices must be followed in internal management and external business activities. Developments in domestic and international ethical corporate management practices are closely followed and company personnel are encouraged to submit recommendations for the review and refinement of practices to improve ethical corporate management.

U-Ming Code of Ethical Conduct: This code was primarily set up to provide ethical standards that govern the conduct of company directors, supervisors, management and other employees and allow stakeholders to better understand the ethical standards of the company. The ethical conduct principles will be adopted when following these guidelines.

1. Prevent conflict of interests

2. Do not pursue self interest

3. Confidentiality obligation

4. Fair trade

5. Proper safekeeping and use of company assets

6. Legal compliance

7. Encourage reporting of illegal actions or conduct which violated the code of conduct



30

Perform corporate

governance

Create a sustainable

environment

Uphold employee rights

Customer and Supplier

Management

Promote Social Welfare

Strengthen Disclosure of Corporate Social

Responsibility Information

Corporate Social Responsibility Management

Corporate Social Responsibility Best Practice Principles

Protecting the ecology and environment and enriching society is the duty and responsibility of the corporation. As a member of the global community, U-Ming has a duty to protect the ecology and environment and use our own resources to improve social welfare. In order to fulfill our social responsibility, U-Ming seeks to promote economic, social and environmental balance as well as sustainable development to manage environmental and social risks. Our Corporate Social Responsibility Best Practice Principles passed Board of Directors resolution in August 2013. These best practice principles apply to all employees at U-Ming. The main purpose of the following principles is to fulfill social responsibility.

1. Exercise corporate governance

2. Foster a sustainable environment

3. Uphold employee rights

4. Customer and supplier management

5. Preserve social welfare

6. Enhance disclosure of corporate social

Responsibility information

CSR



31

Green U-Ming

In addition to upholding shareholder interests, the company also cares about the environmental protection. As a member of the shipping industry which calls the ocean home, how to keep the earth healthy is an issue that U-Ming is deeply concerned about.

U-Ming devised “Driving Efficiency for a Sustainable Tomorrow” as a differentiation strategy with a goal of protecting the ocean ecology and environment. The four prongs of this strategy are green environment investment, green policy creation, green involvement and green environment operations which are implemented for environment protection and zero pollution. The target achievement rate is reviewed to gauge environmental protection performance to ensure that U-Ming continues to make progress towards sustainable operations through continuous review and addressing environment protection issues which stakeholders are concerned about. Below are descriptions of the concrete actions taken by U-Ming to protect the environment.

Driving Efficiency for a Sustainable Tomorrow

Green Investment Green Policy

Green Involvement

Green Operation

15% reduction in ship fuel consumption per nautical mile 15% reduction in ship CO2 emissions per nautical mile (2010 baseline)

EEOI per bulk carrier reaches IMO standards EEOI total average year-on-year reduction of 1%(main bulk carrier)

2015 Goals



32

U-Ming’s Green Initiatives

U-Ming Marine Transport Corp., a subsidiary of the Far Eastern Group, has set out its vision and aspirations to use resources more efficiently and responsibly thus minimizing the impact on marine ecosystem caused by vessel operations; in particularly striving to reduce greenhouse gas emission and fuel consumption with devoted efforts for making a contribution to the environmental sustainability.

We have been pursuing individual and collective actions to work towards this vision. We have worked in partnership with industry leading organizations like classification societies and shipyards to help improve standards and practices in the environmental management.

U-Ming has taken 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 and related industry players to jointly lay out the vision and the implementation for marine sustainable operations.

We strive to protect the marine environment by preventing the release of harmful substances to the marine ecosystems. And we continue to minimize the production of unnecessary liquid and solid waste onboard our vessels.

Our environmental management systems are certified as per international ISO 14001 standard and we ensure full compliance with all environmental regulations.

In 2013, the greenhouse gases created from our shipping operations decreased by 8% due to the lower fuel consumption in our fleet; placing us on track to reach U-Ming’s target of 25% CO2 reduction in 2020.

Since 2012, U-Ming has ordered 16 new generation vessels which have the features of energy-saving and carbon reduction as well as environment friendliness to reduce greenhouse gas emission and fuel consumption up to 20-25%. It is partly proven by the newly delivered 188K fleet in March and April 2014.

Some of U-Ming’s green initiatives include:

1. ME electronic injection engine to increase efficiency and super slow steaming capability

2. Engine de-rating for promoting the engine and propeller efficiency

3. Hull form optimization

4. Apply low friction self-polishing anti fouling coating

5. Class notation for IHM-Green passport

6. Ballast water management system with Class notation

7. Propeller boss cap fin

8. Fuel oil homogenizer

9. Duct + Pre-swirl fin or Flipper fin+ Pre-swirl fin

10.Trim optimization tool

Rising fuel costs, onslaught of technology and environmental awareness are among the forces that are driving the shipping industry to reinvent itself. This tsunami of challenges demand an urgent need to transform the way the shipping business is done. Only by making radical changes can the industry survive and thrive in the new and increasingly volatile global shipping environment.

U-Ming will continue its efforts to save fuel and carbon emissions by focusing on crew awareness, training, vessels’ retrofit programmes and economic operations such as voyage optimization etc.



33

Green Investment

Environmental Protection Equipment

Equipment No. of fleet

Self-polishing coating without Organic tin

33

Fuel oil homogenizer 11

Cargo hold carbon dioxide fire extinguishing system

33

Mewis Duct 6

Propeller/ PBCF 10

Alpha lubricator installation 20

Ballast water management system

1

◎ No. of U-Ming vessels not including joint

venture and managed fleet: 33

▼Fuel oil homogenizer ▼Mewis Duct/PBCF

▼Cargo hold carbon dioxide fire

extinguishing system

▼Alpha lubricator installation

▼Self-polishing coating without Organic tin



34

Newbuilding

1. In order to achieve our carbon reduction, energy conservation and marine environment protection goals, U-Ming started to order energy efficient ship in 2012. Generally speaking, it takes about two to three years to construct a ship so the 8 Eco-designed Capemax ships, 4 Eco-designed Panamax, 4 Eco-designed Handymax ships and 2 VLCC will be added to U-Ming’s fleet from 2014 to 2017 to strengthen our green transport capability and proactively fulfill our responsibility as a protector of the oceans.

2. All of the new ships being delivered after 2012 are equipped with energy conservation devices. Fuel consumption savings of 5 – 6% have been verified for Asian Champion and Asian Triumph (57,000 DWT) and 6-8% savings for Cemtex Innovation and Cemtex Creation. Sea trials will be conducted for other newly constructed ships to measure energy conservation percentages. We are very optimistic about these results.

3. The company’s newly ordered ships include four 186,300DWT Capesize, four 84,000DWT Panamax and four 62,000DWT Supramax bulk carriers which are scheduled to be delivered in the period from 2014 to 2017. By using special shipping routes and energy conservation equipment, energy conservation and carbon reduction effects of reduced fuel use and increased carrying capacity can reach up to 20% or above compared to conventional ships. In order to optimize the ECO-design ships, this ship series and the two newly ordered VLCC are equipped with ballast water management systems to prevent ships from transporting organisms into different sea regions which can result in ecological damage.

Type of Ship DWT/vessel Number

Capesize 186,300 8

Panamax 84,000 4

Handymax 62,000 4

VLCC 320,000 2

Sulfur Oxides

The MARPOL Convention Annex VI passed in 1997 places restriction on ship sulfur oxide emissions and establish Emission Control Areas (ECA) .

The areas which currently limit sulfur emissions are as follows:

1. Baltic Sea and North Sea 2. North American coast 3. United States Caribbean Sea area

SOx In the future, the north Mediterranean, Singapore and Tokyo Bay will be designated as emission control areas and South Korea, Osaka Bay and Australia are currently being reviewed. The 2008 amendments to MARPOL Annex VI place the following restrictions on the sulfur content in fuel oil for newly constructed ships:

The sulfur content in the fuel oil of ships constructed prior to January 2012 limit less

than 4.5%。

The sulfur content in the fuel oil of ships constructed on or after January 2012 limits less than 3.5%.

The sulfur content in the fuel oil of ships constructed after January 2020 limit less than 3.5%.



35

▼Ballast Water Management System(BWMS)

When ships unload cargo in port, it is necessary to consider introducing ballast water to maintain ship stability but this may cause the release of local marine organisms in other locations where it could impact the environment. Currently, there is no mandatory requirement for ballast water management systems. U-Ming voluntarily controls its ballast water release conditions to protect the marine environment from microorganism contamination. Ballast water management plans such as DNV, CR, ABS and BC approved by the Classification Society are held onboard. All newly constructed ships from 2012 onwards will be equipped with ballast water management systems that use high temperature and UV light to kill microorganisms in ballast water to reduce the potential danger of contamination through release of ballast water.

U-Ming established a new requirement that BWMS must be installed on all newly ordered ships starting in 2013. The marine environment can be protected by purifying water with this system which demonstrates our commitment to make a contribution to environmental protection.

Environmental Protection Expenditures

0

1,660,466

1,979,910

0

500000

1000000

1500000

2000000

2011 2012 2013

Environment Protection

Expenditures

S ◎ Note:

1. Expenditure items: Oil fuel homogenizer,

streamline dome, propeller / PBCF

2. Alpha lubricator installation on older

ships in the fleet was completed during

2008 – 2010.

3. Unit: US dollars



36

Green Policy

ISO-14001 Environment Management System(EMS)(1/2)

Declaration of Environment Management System

Upholding a Spirit of Sincerity, Diligence, Thrift, Prudence and Innovation

Treasure the Earth’s resource

Maintain Green environmental

U-Ming received ISO-14001 environmental management system certification in 2013 from the DNV certification agency. The company has always embraced a spirit of ‘sincerity, diligence, thrift, prudence and innovation’, treasure the Earth’s resources, commitment to green and environmental protection. The senior vice president is the management representative for the environmental management system. The Environmental Management Team, made up of the Marine Department, the E & M Department and the Secretarial Department, works to achieve environment protection targets through planning, implementation, inspection, management review and ongoing improvements. U-Ming will continue to make progress together with all company personnel in the following directions to fulfill our corporate responsibilities.

1. Be obedience to International convenience and MARPOL rules. Prevent pollution occurrence.

2. Enhance and train employee’s environment protection consciousness, knowledge, and capability

3. Enhance and improve the control of pollution source and prevent pollution occurrence

4. Resource recycling, rescue, and reduce waste

5. Save resource and avoid extensive consumption



37

ISO-14001 Environmental Management System Training and Promotion (2/2)

The company engages in ISO-14001 Environmental Management System (EMS) training and promotion at regular times each year. Company personnel training that was held in June 2013 explained how the effects of greenhouse gases on the Earth’s environment have caused extreme climatic events and harsh environment conditions which has endangered the human race, how everyone should take responsibility for environmental protection and be self-aware of their actions and also how companies need to fulfill their responsibilities. Therefore, U-Ming hopes to implement EMS to fulfill its corporate social responsibility and also enhance its effectiveness. The training course content explains the current state of economic degradation, states the management system manual, procedures and forms so that personnel can understand the operation model, organization, responsibilities, work teams, terms and environmental protection projects of the environment management system so that all personnel can work together to effectively implement the EMS.

▲2013 EMS Training and Promotion



38

Ship Energy Efficiency Management Plan(SEEMP)

Declaration of Energy Efficiency Management Policy

Upholding a Spirit of Sincerity, Diligence, Thrift, Prudence and Innovation

Promote Safe Operation of Ship

Fulfill Energy Efficiency and Maintain Environmental Protection

Over recent years, a focal issue for the shipping industry has been how to reduce environment impact. U-Ming is committed to effectively reducing carbon dioxide emissions to reduce the impact of greenhouse gases on the environment.

U-Ming has set up an effective energy efficiency management system in accordance with the IMO’s Ship Energy Efficiency Management Plan, (SEEMP), created a new ship energy efficiency standard based on the IMO’s Energy Efficient Design Index (EEDI) and disclose actual data according to Energy Efficient Operational Index (EEOI) to demonstrate and prove our commitment to energy efficiency and carbon reduction.

U-Ming understands that energy efficiency improvements can reduce global carbon emissions, lower fuel consumption and also reduce related costs and expenditures. The company complies with the environment protection requirements of customers, responds to stakeholder concerns and works to comply and even surpass the standards set forth in related regulations in order to do our part to promote environment sustainability.

SEEMP/EEDI

In 2011, the MARPOL 73/78 Convention Annex VI amendments established the EEDI and SEEMP that set down mandatory standards for ship CO2 emissions.

1. From 2015 to 2019, all new ships with a 400 tonnage of more must reduce carbon emissions by 10%.

2. From 2020 to 2024, carbon emissions must be reduced by an additional 10%.

3. After 2025, emissions must be reduced another 10% to reach the 30% emission reduction target.



39

Green Involvement

Sustainable Shipping Initiative (SSI)

Global shipping companies and non-governmental organizations jointly launched the Sustainable Shipping Initiative (SSI) which utilized the Forum for the Future to brainstorm major directions for the future sustainable development of shipping and present a shared vision for the future sustainable development of international shipping. The SSI represents ship owners, charterers, ship builders, engineers, service providers, the banking industry, insurance firms and classification societies. This is the first joint global initiative by the shipping industry to address the pressing issue of sustainable development. SSI is an industry-wide sustainability organization where members have equal standing.

The ultimate goal of SSI is to demonstrate possible joint actions and mobilize the industry to join and support the initiative to address the challenge of sustainable development together. Key representatives of the shipping industry are all member companies which shows that SSI is a ground-breaking industry-wide sustainability organization. In order not to fall behind trends in environment protection, U-Ming joined the Sustainable Shipping Initiative (SSI) so that the company could contribute its energy and resources to do our part to the environment and the shipping industry.

All SSI members have developed and signed a shared vision for 2040 called Vision 2040 to provide a solution for ever-rising oil prices and the increasing danger to environment caused by the greenhouse effect.

Through concentrating the energy of all SSI members, Vision 2040 was developed to proactively create a sustainable global shipping industry.

changing to a diverse mix of energy sources, using resources more efficiently and responsibly, and

dramatically reducing greenhouse gas intensity

providing safe, healthy and secure work environments so that

people want to work in shipping, where they can enjoy rewarding

careers and achieve their full potential

earning the reputation of being a trusted and responsible partner

in the communities where we live, work and operate

developing financial solutions that reward sustainable

performance and enable large-scale uptake of innovation,

technology, design and operational efficiencies

transparency and accountability drive performance improvements

and enable better, sustainable business decision-making

proactively contributing to the responsible governance of the oceans.

It is hoped that the above Vision 2040 will reduce the impact of the greenhouse effect on the Earth, create a healthy environment around the world and also focus all our efforts together to create greater opportunities, invigorate markets and ultimately make progress towards sustainable operation objectives.



40

Capacity Fuel Saving

Customized Green Ships

+ 6%

+10%

|

-20%

-25%

|

Green Operations

Ships

1. Perform regular maintenance on primary and auxiliary machinery, monitor machinery operation logs, and maintain optimal fuel saving conditions to reduce unnecessary fuel consumption.

2. Use marine meteorology to change to shipping routes with better meteorological conditions to reduce CO2 emissions and protect the global environment and marine ecology.

3. Use economic ship speeds and routes to reduce emissions. Combustion of heavy oil creates air pollution and suspended particles which can adversely impact air quality and harm human health. The changes made to U-Ming ship designs reduce pollution and minimizes the effect of emissions on the environment.

4. High cost low sulfur fuel oil is used as the fuel for the company fleet to reduce CO2 and ammonia nitrogen emissions to join forces with the company’s fuel suppliers do our part for environment protection and carbon reduction.

5. U-Ming complies with international standards and requires that steps be taken to reduce production of oil-polluted water. Action is taken to control wastewater and treat wastewater properly. Oily water separator monitoring devices are installed on all ships.

6. U-Ming did not experience any instances of ship arrests or oil leak environmental pollution in 2013 so no fines were paid by the company.



41

Offices

1. Raising the air conditioning temperature by 10C can save 6% in electricity. U-Ming uniformly sets the air conditioning temperature for its buildings based on the outside temperature. Office temperatures are set to 26 degrees across-the-board to reach energy conservation targets.

2. Refrigerators are kept closed and sealing strips are checked regularly for damage to reduce unnecessary electrical consumption.

3. Stipulate that energy-saving light bulbs be used in offices. Reduce number of light bulbs used as long as sufficient lighting is provided. Turn off main power during noon rest break to save energy.

4. In order to meet environmental protection requirements, office lighting fixture must be completely replaced with energy saving LED bulbs. LED light fixtures will be converted from electric energy to light energy to save energy. Energy consumption is less than one-third of conventional fluorescent lights. LED light bulbs also do not contain mercury or lead which makes them more environmental friendly.

5. Sensor faucets are used to adjust water outflow and conserve water in all bathrooms.

6. The Far Eastern Group has implemented elevator traffic controls to prevent congestion during work hours from causing delays. U-Ming fully complies with these controls. Routing controls and energy conservation measures have also been implemented.

7. U-Ming has implemented energy conservations measure to reduce carbon emissions and also has mandatory resource recycling and trash sorting regulations.

8. Actively participate in green shipping seminars, promote green concepts and create a green shipping corporate culture.



42

Plastics, plastics mixed with non-platis

Red Receptacles

Paper product, bottles, glasses, metal, dunnage, linings and packaging materials

Green Receptacles

Harmful waste and oil contaminated garbage

Black Receptacles

All food wastes and other garbage which can be disposable at sea

Brown Receptacles

Ships

U-Ming sorts all trash and waste that is produced from both ships and offices. The waste and trash from ships is first sorted and collected onboard and then handed over to a recycling company at port for handling and processing to protect the marine environment. The handing process for onboard trash can be divided into five steps: collection, processing, storage, disposal and record. The U-Ming Trash Management Plan is carefully implemented to reduce environmental pollution. There are four different colored trash containers for disposal of the trash produced onboard. These colored containers are for disposal of the following types of waste.

Offices

Trash is divided into the following three types at our offices. Trash sorting concepts are announced to personnel so trash is sorted properly into their respective categories. In addition to keeping the environment clean, trash can be sorted correctly for recycling and reuse. If trash is not sorted further, the incinerator can become clogged, break down or even have a shorter service life. U-Ming cherishes the environment and national resources and truly hopes environmental conditions may be improved. This is the reason why we are willing to sort trash. It not only can extend the service life of incinerators but also reduce the harm to the environment caused by CO2 pollution.

1. Kitchen waste

2. Recyclable area

3. Non-recyclable area



43

▲Award received on

behalf of U-Ming by Vice President Robert Kao

Green Certification

2013－Outstanding Green Shipping Award

In 2013, U-Ming was granted this Outstanding Green Shipping Award by the MOTC in recognition of our efforts to protect the marine ecology and environment. Everyone should share responsibility for environmental protection. Private enterprises that have significant resources at their disposal have a higher obligation to create a sustainable environment. Through green policy and ships installed with energy conservation and carbon reduction equipment, U-Ming can reduce the impact of pollution on the environment. Our continuing

efforts in this field were recognized at the 59th Maritime Festival held in 2013. This honor encourages us to redouble our efforts and continue to strive in the future to fulfill our environmental responsibility.

2013－Green Passport

The International Maritime Organization (IMO) announced the important Green Passport concept and formally incorporated it into the Ship Recycling Convention in May 2009. Its content includes an inventory of hazardous goods and materials that are kept onboard. The purpose is to provide safer and more environmental friendly methods for ship disassembly and construction. As of today, the Green Passport is a voluntary class notation for ship owners which is used for new ships and ships currently in operation. All of U-Ming’s new ships have received Green Passports. The ship disassembly and recycling system is determined through classification societies.

2012－ISO-14001: 2004 Certification

The company’s board of directors and management are committed to global environmental protection work, respond to international green shipping trends and spare no effort to make a contribution in this field. With regard to third party certification, U-Ming successfully obtained ISO-14001 certification from DNV in 2012. This ISO-14001 certification did much to raise the company’s international image and also meets the expectations of the Far Eastern Group to continually contribute to environmental protection. Green shipping is just not simply a goal for U-Ming. It has become an integral part of our everyday operations.

2011 － Green Flag Outstanding Achievement

The Port of Long Beach issued a Green Flag to the company’s fleet and also launched a Voluntary Vessel Speed Reduction Program in 2011. This program was introduced by the Port of Long Beach to reduce air pollution and suspended particles caused by the burning of heavy oil in the harbor area which can influence the air quality and be harmful to human health. As a member of civil society, U-Ming voluntarily reduces the speed of its ships to reduce air pollution and protect the environment. The company is grateful to earn this honor for the hard work dedicated to environment protection by our company personnel and ship crews.



44

Environment Performance Index

Greenhouse Gas Emission Rating

RightShip has established an Existing Vessel Design Index (EVDI) for greenhouse gas emissions and this EVDI is used to determine a greenhouse gas emission rating for ship fuel efficiency and CO2 emissions. The ratings range from A to G with A having the highest fuel efficiency and lowest CO2 emission. D and above are considered average. RightShip greenhouse gas emission ratings combine the fuel efficiency and greenhouse emission gas data to provide cargo owners and charterers with a basic standard for finding excellent cargo carriers.

From the table below, one can see that the greenhouse gas emissions of U-Ming’s self-owned bulk carriers have earned average or above ratings through excellent management and steady improvements even though some of our vessels are over 15 years old. In fact, 50% of our capsize carriers have earned A ratings and 80% of our Panamax carriers have received B ratings. From these ratings, it can be said that U-Ming’s self-owned bulk carrier fleet is an outstanding green fleet.

Note：Exclude joint venture and managed vessels

Unit: Vessels

Ship type / Rating A B C D E F G Total Fleet

Capesize 5 2 0 3 0 0 0 10

Panamax 0 8 1 1 0 0 0 10

Supramax / Handymax

0 0 0 3 0 0 0 3

Cement Carriers 0 0 1 3 1 0 0 5

Within average range



45

0 50000 100000 150000 200000 250000

2011

2012

2013

Total fuel consumption (tonnes)

0 200000 400000 600000 800000

2011

2012

2013

Total CO2 emissions (tonnes)

37

15 10

6

42.89

10.4 7.99 5.2

Cement Supra/Handy Panamax Capesize

EEOI IMO

Bulk carriers main force All meet IMO requirements (Capesize, Panamax,

Supramax/Handymax)

0 2 4 6 8 10

Cape

Pana

Supra/Han

dy

Cement

Carriers

A B C D E F G

EVDI 等級

EEOI=𝑥 =Total Fuel Consumption x CO2 Coefficient

Total Carrying Capacity x Total Distance

(tonne CO2/tonne-nautical mile)

Note: Ships rated as A, B, C & D are within the

acceptable range of energy efficiency ratings

0 50 100 150

2011

2012

2013

Fuel Consumption(kg/nautical miles)

0 100 200 300 400 500

2011

2012

2013

CO2 emissions(kg/nautical miles)

8%▼ 8%▼

(Based in 2010) (Based in 2010)



46

Human Safety / Ship Safety / Port Safety / Cargo Safety

Safety Policy

Safe Operation

Commitment to Customer

Safe U-Ming A lot of force majeure events may occur in the course of sailings. The complicated and changeable marine environment, unexpected weather conditions, 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 could not be 100% guaranteed due to frequent pirate attacks despite having 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 provide a safe work environment is one of the focal points in shipping and transportation management.

U-Ming Marine Transport takes “human safety,” “ship safety,” “port safety” and “cargo safety” as its objective. Apart from complying with international safety regulations, U-Ming strictly implements various ashore and onboard drills in order to do a good job on prevention efforts in advance to reduce the risk of accidents. While taking the three specific actions, which are “developing safety policy,” “safe operation” and following the international norms “commitment to quality transport services for our customers,” rate of target completion is reviewed at all times through safety performance to strengthen environmental safety of navigation, to ensure that U-Ming moves towards sustainable business, and to create a sustainable safe U-Ming. Specific actions on safety of U-Ming Marine Transport are introduced as follows:

PSC’s inspection without deficiencies 70%

RightShip rating meets requirements of consignors

2013 Goals



47

Safety Policy

The safety Management Policy

Uphold the Spirit of Sincerity, Diligence, Thrift, Prudence and Innovation

Promote the Safe Operation of Ships

Ensure Safety of Life at Sea

Avoid any Pollution to the Marine Environment

U-Ming Marine Transport has established an effective and appropriate Safety Management System (SMS) in accordance with the International Safety Management Code (ISM Code) to manage and maintain the quality of ship management business.

Implementation of Objectives:

1. To establish safety culture that encourages

continuous improvement in safety and

environmental protection

2. To improve the safety consciousness of

personnel ashore and seafarers abroad

3. To save the cost through the minimization of

disruptions to the operation of the ship that

may cause delaying

4. To get greater confidence from clients



48

Safe Operation

Ships

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 as well as 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 the laws in order for on board and ashore personnel to get familiar with their work environment and enhance safety management. ISM Code training programs were offered three times by the company in 2013.

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 since they cooperate with each other.

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 conducted and completed according to stipulated training

procedures to ensure that maritime personnel understand safety management system and related

conventions.

6. The U-Ming Fleet examines ship safety assessment, develop and implement the “Ship Security Plan” in

accordance with the International Ship and Port Facility Security Code (ISPS Code). The Shipboard

Emergency Procedure is conducted and reported back to the onshore unit every month. The drill aims

at the occurrence of unexpected situation, and simulation of encountering pirate attack is practiced as

well, for the purpose of enhancing the crisis consciousness of the crew.



49

7. In order to enhance the environmental safety of ships, each ship is equipped with razor barbed wire fence to increase height and difficulty of climbing for reducing the risk of allowing privates to board a ship.

8. Global Positioning System (GPS), Automatic Identification System (AIS) and Ship Security Alert System (SSAS) are installed in every ship of the company to increase the safety of navigation and environmental safety on board.

9. In order to protect the safety of the crew and carried cargo, U-Ming Marine Transport hires international armed security personnel for ships passing through high-risk areas to enhance overall safety of onboard environment so that ships can have a smooth sailing.

10. All crew members are equipped with safety helmets and steel-toe work boots to prevent the crew from getting occupational injuries.

11. Ship safety conforms to the ISM, SMC and DOC specifications, and security system complies with the ISPS Standards. Furthermore, perfect security facilities are provided by the company. Complete SOS equipment are installed on every ship to provide protection for the crew.

▲2013 Annual ISM Code Training and Fire Control Safety Training Programs



50

▲Reflective vests for

increasing the safety

of working at night

▲Safety helmets and cabin escape doors ▲Check normal functions of the liferaft on a regular

basis

▲Fire drill ▲Abandon ship drill



51

Offices

1. The company has set up a Labor Safety & Health Office to establish various safety measures, including

fire control facilities, emergency evacuation routes and the notification system. In the meanwhile, in

order to prevent occupational hazards and protect the safety and health of employees, “Code of

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

provisions of the “Labor Safety and Health Act,” and employees are required to truly abide by these

codes.

2. In order to protect the safety and life of employees, maintenance on elevators and fire control

equipments is conducted on a regular basis, and access control management is enhanced as well.

Moreover, labor safety trainings and firefighting drills are scheduled regularly.

3. Internal managerial personnel of the company will take turns to serve as general duty officers and are

on 24-hour standby. In case of an unexpected emergency situation, the duty officer will contact related

personnel of the company immediately to take care of the situation.



52

Commitment to Customers

U-Ming Marine Transport promises customers with the best transport quality to achieve its objective of Human Safety / Ship Safety / Port Safety / Cargo Safety, and truly abide by the Port State Control (PSC) and RightShip risk ratings for guaranteed quality transport services. PSC and RightShip risk ratings are introduced respectively as follows:

Port State Control (PSC)

In order to ensure the safety of navigation and to protect the marine environment as well as the work environment of the crew, International Maritime Organization (IMO) established Port State Control (PSC) procedures, which are to be used as a basis for different countries to implement the PSC operations, to implement inspection of status and equipments of foreign vessels to see whether they are in compliance with international conventions, and conduct control and inspection on vessel safety and pollution prevention so as to phase out substandard ships.

1. The main PSC inspection standards are as follows:

International Convention Chinese name

SOLAS 74/78/88

(International Convention for the Safety of Life at Sea

74/78/88)

國際海上人命安全公約

LOAD LINE 66/68 國際載重線公約

MARPOL 73/78

(International Convention for the Prevention of Pollution

From Ships 73/78)

國際防止船舶汙染公約

STCW 78/95

(International Convention on Standards of Training,

Certification and Watchkeeping for Seafarers 78/95)

國際船員訓練授證值班標準公約

TONNAGE 69 國際船舶噸位測量公約

COLREG 72

(International Regulations For Preventing Collisions At

Sea 72)

國際海上防止碰撞規則

ILO 147

(International Labour Organization 147)

商船(最低標準)公約

2. Principles of Management for Deficiencies:

If deficiencies of a ship are found by a PSC inspection officer, different handling measures are adopted,

subject to nature and level of severity of the deficiency. There are two types: rectification of

deficiencies and ship detention.

(1) Rectification of Deficiencies: Level of deficiency of a ship does not pose a threat to the safety



53

of the ship, health of the crew and maritime environment. However, rectification for each

deficiency must be rectified within the specified timeframe.

(2) Ship Detention: Level of deficiency of the ship forms a hazard to the safety of the ship,

health of the crew and maritime environment, and the PSC inspection officer has the right to

detain the ship in port until the respective deficiencies have been rectified and resurveyed.

RightShip Risk Ratings

RightShip was established in Melbourne, Australia in 2001. It is a ship vetting company in the global maritime industry with credibility. The joint venture company was formed by two Australian mining giants, Rio Tinto and BHP. Cargill, a grain trading and maritime transport giant company, later joined RightShip as a corporate shareholder in 2006. With Cargill as a partner, RightShip is able to make a breakthrough in extending services throughout the world.

RightShip has established a set of advanced ship rating systems. At present, it is known as the world’s most comprehensive risk management system, and is used as a standard of review for dry bulk carriers. The RightShip system rating primarily is implemented with reference to the method of inspecting oil tankers by major oil suppliers to evaluate conditions of ships. The purpose is to provide ship owners, consignors or charterers with impartial and third-party certified ship vetting services. According to the following information, RightShip performs analysis and rating for a ship with ratings of one to five stars. A ship with a rating of 3-star is a “low risk” vessel, which is regarded as an acceptable ship.

1) Report of the port terminal

2) PSC inspection report of the ship

3) Accidents and bad records that have occurred to the ship

4) Change of international norms on ships

5) Status of the ship owner’s report

The vessel type of U-Ming ship main force includes Cape Size, Panamax Size and Supramax/Handymax Size. The following Table shows that among dry bulk cargo fleet owned by U-Ming, Capesize carriers are “low risk” vessels, and all Capesize bulk carriers are rated as 5-star vessels. 90% of Panamax carriers belong to “low risk” vessels with 5-star ratings, and all Supramax/Handymax carriers are “low risk” vessels as well. It can be seen that quality of the main force of U-Ming dry bulk carrier fleet is excellent, and U-Ming is the first choice of customers when choosing excellent transport service providers.

Vessel Type RightShip 5-Star Ratio No. of 5-Star Vessel/

Total No. of Vessel

Capesize 100% 10/10

Panamax 90% 9/10

Supramax/Handymax 100% 3/3

Note: Excluding joint-venture vessels and hosting vessels



54

外部檢

75% 70% 69%

0%

20%

40%

60%

80%

2011 2012 2013

PSC Inspections without deficiencies

69.12% Inspections without deficiencies

2013

18

12

10

0

5

10

15

20

2011 2012 2013

Number of accidental injuries of the crew

1.13%

0.65%

0.93%

0.00%

0.50%

1.00%

1.50%

2011 2012 2013

Crew accidental injury ratio

Number of accident events reduced by 17%

100% 90% 100%

0%

50%

100%

RightShip 5-star risk rating

Main force of bulk carriers RightShip Low risk rating

2013

Number of accidental injury ratio 𝑥 =No.of Deaths+No.of Injured People

Total No. of People =

◎Note: A vessel with a 5-star rating is a

low-risk vessel

Safety Performance Indicator



55

Happy U-Ming Happy Workplace

U-Ming truly believes that employees are the greatest asset of the company. Therefore, U-Ming sets

up long-term plan to cultivate outstanding talents and creates a milestone of the industry with employees

together. Without the support of excellent employees, 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 quality work environment in order to

improve work efficiency of employees. With the clear vision and solid core values, U-Ming is able to

agglomerate centripetal force of staff and to lead employees moving towards sustainable business.

Code of conducts is explicitly stated in the “Working Rules” of U-Ming Marine Transport. 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 as follows:

“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. These regulations also are 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 the 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 the

provisions of the Company Act, Securities and Exchange Act, Business Entity Accounting Act and Political

Donations Act, and implements integrity management related specifications.

Working Rules

1. 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 written approval from the company.

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 any cause.

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

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



56

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 Internet

norms.

5. Employees shall properly use and keep public property, and shall not waste, destroy, alter or take

illegally for private use.

Actions

Employee is the most valuable asset of the company and is an essential element of business operation.

Provision of safe work environment is the responsibility of U-Ming Marine Transport 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 safety awareness of employees. Safe environment coupled with employees’ own safety awareness

can greatly reduce the risk at work so as to improve work safety. Employee health check also is conducted

on a regular basis to track health conditions of employees. In addition, incident of sexual harassment is

strictly prohibited at workplace, and severe punishment mechanism is also developed to prevent

occurrence of such incidents.

Health Check

Health check shall be implemented on a regular basis pursuant to laws and regulations, and health

management shall be conducted based on results of health check. Health talks also shall be held

occasionally to enhance employees’ health concept.

Gender Relations

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.



57

Career Opportunities

U-Ming Marine Transport upholds the corporate spirit of “sincerity, diligence, thrift, prudence” and

“innovation.” To strengthen the ambitions of the company’s future development, 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.

Academia-Industry Cooperation

In order to cultivate maritime talents, U-Ming Marine Transport cooperates with National Taiwan

Ocean University, National Kaohsiung Marine University, Taipei College of Maritime Technology, National

Keelung Maritime Vocational High School, National Suao Marine & Fisheries Vocational High School,

National Tung Kang Maritime & Fishery Vocational High School and National Penghu Marine & Fishery

Vocational High School to hold “U-Ming Marine Transport Workshops” and offer “Special

Academia-Industry Cooperative Programs.” Arrangements are made for several department heads of the

company to give lectures at the schools regarding their practical experiences. Cooperation also is made

with Yuan Ze University to offer scholarships and internship opportunities to reward outstanding students.

Onboard 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 the U-Ming workforce. 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.

Campus Recruitment

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 and can be in line with the world’s latest

information. 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 in the future.

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.

▲2013 Campus Recruitment Seminar at the National Taiwan Ocean University



58

To be in compliance with labor laws and regulations, U-Ming Marine Transport

does not employ any child labor under the age of sixteen.

Employee Structure

Employees of U-Ming Marine Transport have strong centripetal force. Stable and healthy manpower structure lays a solid business foundation for U-Ming Marine Transport. As of the end of December 2013, there were 91 ashore employees and 1028 (as of 01/05/2014) onboard and ashore seafarers, together for a total of 1,119 employees.

Office

Gender

Age

Education

16

39 35

1 0

20

40

60

Education

42% Bachelor:Majority 2013

35

56

0

20

40

60

Female Male

Gender

61% Male Ratio 2013

4

27 22

25

12

1 0

10

20

30

Age

30% Age 26-35: Majority 2013



59

Office (new hire × leaving office)

Newly hired employees (new employee ratio: 15%)

Staff leaving offices (staff turnover rate: 5%)

64%

36%

0%

50%

100%

Male Female

Gender

71%

7%

21%

0%

50%

100%

Nationality

29%

50%

7% 7% 7%

0%

50%

100%

29

-

30

-39

40

-49

50

-59

60

+

Age

80%

20%

0%

50%

100%

Male Female

Gender

80%

0%

20%

0%

50%

100%

Nationality

20%

60%

0%

20%

0% 0%

50%

100%

29

-

30

-39

40

-49

50

-59

60

+

Age



60

Crew (in active service)

Rank

Age

Nationality

0%

20%

40%

60%

Officers Ratings

Rank

53% Officers Ratio 2013

41%

27% 26%

11% 5%

0%

20%

40%

60%

29- 30-3940-4950-59 60+

Age

78% Youth ratio

2013

27%

60%

13%

0%

50%

100%

Taiwan China Philippine

Nationality

27% Taiwanese crew 2013

Def. of Youth：WHO

Range of Youth’s age：14-44

TW



61

Crews (new hire × leaving office)

Newly hired seafarers (new seafarer ratio: 19%)

Crew leaving posts (crew turnover rate: 9%)

62%

26%

9% 2% 1%

0%

50%

100%

Age

25%

65%

10%

0%

50%

100%

Nationality

68%

11% 21%

0%

50%

100%

Nationality

31%

25%

15%

20%

9%

0%

10%

20%

30%

40%

Age



62

Employee Benefits

Onshore Staff

Employees have always been the most valuable asset of U-Ming Marine Transport. 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 wishes to improve morale and efficiency of employees, and retains outstanding colleagues to turn these talents into the best engine of the corporate growth. U-Ming Marine Transport not only provides sound benefit policy to improve colleague productivity and morale but also maintains quality of colleagues’ family life to

encourage them to achieve the goal of work-life balance.

1. The company shows respect for employees on the rights conferred by laws to provide days for personal leave, sick leave, maternity leave and bereavement leave pursuant to the 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 dependents of employees.

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 for employees of different genders and countries.

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 as well as complaint, correction and punishment system in order to protect employees from sexual harassment.

5. In order to process employee benefits, the company has established the Employee Welfare Committee pursuant to laws to coordinate and promote welfare affairs. The company also encourages employees to form associations to organize activities, including recreational sports, employee tours and festival gifts and greetings in recognition of services rendered, so that employees in their spare time can take into account their physical and mental health as well as the promotion of friendship among colleagues. To show care for dependents of employees, scholarships for employees 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

Hsinchu

Neihu

I-Lan

▲No. of U-Ming’s employee outing in 2013：3 times



63

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 the 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.

10. Employees of U-Ming Marine Transport can enjoy shopping discounts and multiple promotional offers from affiliated companies of FE Group.

11. In accordance with the 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.

Offshore Crew

12. Seafarers of the company work at sea all year round. In order to let them work without distraction, apart from offering reasonable remuneration and benefits, the company also attaches importance to the work environment, diet and daily life of the crew, equipments for leisure activity and harmonious employee-labor relations. In order to protect labor rights and interests of the crew, U-Ming Marine Transport has created good working and living conditions for employees, and has completed the “2006 Maritime Labour Convention (MLC, 2006)” System Certification on a regular basis to effectively provide the crew with financial guarantee and healthcare based on the following five aspects:

Minimum requirements for seafarers to work on a ship

Minimum age / Medical certificate / training and qualification / Recruitment and placement

Conditions of employment

Seafarers’ employment agreement / Wages / Hours of work and break / Entitlement to leave / Repatriation / Seafarer compensation for the ship’s loss or foundering / Manning levels f / Career development, skill development and opportunities for seafarers’

Accommodation, recreational facilities, food and catering

Accommodation and recreational facilities / Food and catering

Health protection, medical care, welfare and social protection



64

Medical care on board ship and ashore / Shipowner’s liability / Health and safety protection and

accident prevention/ Access to shore-based welfare facilities / Social security

Compliance and enforcement

Flag State Responsibility / Port State Responsibility / Labour-supplying Responsibility

13. In order for the crew to take refuge in life and work, U-Ming Marine Transport has developed the Fleet Administration Manual. The purpose of the manual is to set up a set of sound workflows and regulations for seafarers to comply with. The manual also is used as a criterion to evaluate the performance of daily work of the crew. Content of the manual includes the following scope:

Job position / wage Retirement Rewards and punishments Promotion Occupational hazards, injuries and

diseases treatment, compensation matters

Education and training Labor-employer communication Onboard safety and hygiene

▲The Crew Common Room ▲The Crew Laundry Room

▲One of the leisure activities of the crew ▲The Crew Entertainment Hall



65

Inheritance Activity & New Colleagues Welcome Party

In order to enhance colleague friendship as well as inherit good corporate culture and proud operating guidelines of integrity, U-Ming held an orientation event for new colleagues of 2013, hoping to promote exchange of feelings between senior colleagues and newcomers, and to know each other through self-introduction of newcomers.

After the gathering, newcomers will have a better understanding of U-Ming and continue to pass down the U-Ming Culture by upholding the spirit of “pupil surpasses the master.”

▲2013 U-Ming Marine Transport inheritance activity and new colleagues welcome party

Advanced Studies for Employees

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 provides employees

with opportunities of advanced studies in order for employees to constantly learn and grow by themselves,

and thereby improves business efficiency and increases competitive advantages. 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.

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.

2. According to needs of business and work of colleagues, some colleagues are selected each year based

on their development potential to participate in various study programs of annual training projects

offered by the Manpower Development Center of Far Eastern New Century in order to achieve the

objective of combining training and practice as one.



66

▲U-Ming Marine Transport employees attending classes offered by the Manpower Development Center of

Far Eastern New Century

3. 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 of colleagues.

4. In order to expand international perspective of colleagues and enhance abilities of reading, conversation and letter writing of business in English, some colleagues are selected based on needs of work and proficiency in English to take courses or participate in international English speech clubs, such as Toastmasters, which can provide channels and assist employees in career development.

▲In order to improve English proficiency, U-Ming Marine Transport employees participated in Taipei Metro Toastmasters.



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50% 50%

0%

20%

40%

60%

Female Male

Gender

79%

7% 14%

0%

20%

40%

60%

80%

100%

Nationality

5. New employee training is conducted annually in order to pass down corporate culture and business

philosophy, and fulfill the objective of nurturing talents.

▲General Manager Wang Shu-Chi personally conducted the orientation training for new hires.

6. A knowledge base of rules and regulations has been established by the company at the corporate

website to facilitate learning of new knowledge for employees in order to improve work efficiency and

enhance individual competitiveness. The latest governmental ordinances, rules and regulations as well

as professional knowledge will be filtered and organized for employees to browse and search the

knowledge base.

7. All employees of the company will take the performance measurement and self-skill development plan

on a regular basis. Seminars are scheduled irregularly by the company in order to promote human

resource performance management and remuneration system project. Articles involving changes also

are available for sharing in order to achieve full communication and enhance cognition among

colleagues.

8. The company systematically trains employees for the purpose of developing employee knowledge and

skills, and at the same time, brings employees’ potentials and their skills into full play. A total of 497

employees participated in the training in 2013. The number of training hours taken by employees is as

follows:

(1). Office: 53 classes were offered to employees on professional competence and training in 2013, for a total of 1,608 course hours with 150 participating employees. Details are as follows:



68

37%

55%

8%

0%

10%

20%

30%

40%

50%

60%

Nationality (2). Crew: ISM Code educational training and fire control safety training are conducted on a regular basis by the company in Taipei, Xiamen and Philippine in accordance with the laws in order for onboard and onshore colleagues to get familiar with their work environment and enhance safety management. ISM Code training programs were offered six times by the company in 2013 for a total of 94 course hours. 347 onshore seafarers attended the training courses. All participating seafarers were males. Therefore, male ratio accounted for 100%. Details regarding nationality are as follows:

Labor Performance Indicator

Total number of employees participating in training

Total training hours of office staff

Office staff turnover rate

20% Total number of employee training hours 2013

2032 1414

1702

0

1000

2000

3000

2011 2012 2013

Hours

5% Staff turnover rate 2013

2.8% 2.8%

5%

0.0%

2.0%

4.0%

6.0%

2011 2012 2013

Turnover rate

目標 14% Number of trainees growth rate 2013

436 437 497

0100200300400500

2011 2012 2013

Total number of employees



69

Social Contribution 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 assists more people who need help, cares for the

disadvantaged and fulfills the responsibility as a citizen.

To repay the society with a grateful heart is the philosophy held by U-Ming Marine Transport. 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.

Activity for Public Welfare

Since 2008 －

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 the best to protect the marine environment. Since 2008, U-Ming Marine Transport has participated 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 practical actions to fulfill the responsibility of a global village citizen, and to build a clean, sustainable and quality ecological environment.

Since 2008, U-Ming Marine Transport has made donations from time to time to Far Eastern Y. Z. Hsu Science and Technology Memorial Foundation as well as Far Eastern Medical Foundation to help improve service quality of the Far Eastern Memorial Hospital. In recent six years, an average of NT$55,535,103 was donated as social welfare funds annually, which accounted for 0.5% of combined turnover. U-Ming spares no effort to repay the society.

In addition to occasional monetary donations to repay the society, U-Ming Marine Transport 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 on a regular basis. Through the subscription activity, the company shows its caring strength for the society and makes a contribution to the disadvantaged groups. From 2010 to 2013, total subscription amount was NT$300,000.



70

In 2012 －

The Far Eastern Group invested in building the world’s first green building with zero carbon emission – EcoARK - by combining the concept of environmental protection and fashion. 1,500,000 PET bottles and bottle caps were used when building the EcoARK to make the building have good thermal insulation effect and high degree of transparency, and moreover, coupled with the design of solar panels, electricity consumption also is significantly reduced. National Geographic Channel in particular produced a documentary film “Megastructures: EcoArk” for this building which demonstrated the possibility of sustainable architecture. U-Ming Marine Transport contributed efforts by donating NT$43,000,000 in 2010 to help build the EcoARK which had a total construction cost of NT$300,000,000. The donation accounted for 14.3% of the total cost of building the EcoARK. In addition, U-Ming was invited in 2012 to attend the Donation Ceremony, where FE EcoARK was donated as a gift to the Taipei City Government. The concept of green building is internationally recognized, hoping that the EcoARK can be used to achieve its maximum efficiency in the future.

In 2013 －

In order to strengthen publicity campaigns with respect to getting uniform invoices for purchased merchandise, the Ministry of Finance organized the Uniform Invoice Cup Race from 2010 onwards. So far it is the fourth year of this running activity. Far Eastern Group is invited every year to take part in this event. In response to public interest, U-Ming Marine Transport sent five colleagues to join the race to make a contribution to the society. It is hoped that this event can extend love to help more social welfare organizations which are in need of help.

▲FE EcoARK

▲Far Eastern Group was invited to participate in the Uniform Invoice Cup Race, and U-Ming Marine Transport sent 5 colleagues to join the special event for contributing efforts to social welfare

activities.力。



71

National Taiwan

Ocean University

National Kaohsiung

Marine University

Taipei College of Maritime

Technology

National Keelung Maritime Vocational

High School

National Suao Marine & Fisheries

Vocational High

School

National Tung Kang Maritime & Fishery

Vocational High

School

National Penghu Marine & Fishery Vocational High

School

Pillars of Our Country

Students

In order for students to better understand the mode of operation in the practical circles, U-Ming Marine Transport is invited to give keynote speeches now and then at domestic maritime colleges and universities. For the promotion of maritime professionals, the company cooperates with National Taiwan Ocean University, National Kaohsiung Marine University, Taipei College of Maritime Technology, National Keelung Maritime Vocational High School, National Suao Marine & Fisheries Vocational High School, National Tung Kang Maritime & Fishery Vocational High School and National Penghu Marine & Fishery Vocational High School to hold “U-Ming Marine Transport Workshops” and offer “Special Academia-Industry Cooperative Programs.” Arrangements are made for several department heads of the company to give lectures with regard to their practical experiences at these schools. 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 good at and grow together with U-Ming Marine Transport.

1. In order to nourish better talents for Yuan Ze University, U-Ming Marine Transport has established scholarship system for the university. The scholarship will be granted to two students for each semester for an amount of NT$20,000 for one undergraduate student and NT$30,000 for one graduate student. It is hoped that the scholarship is set up to encourage students to strive forward for success and become the future pillar of our country. From 2010 to 2013, a total of NT$90,000 has been granted as scholarship to students of the Yuan Ze University.

2. The company provides internship and job opportunities to university graduates based on current employment environment to bring the corporate strength into full play in order to protect the right to work of the new graduates.

College • 20,000

Graduate

School • 30,000

▼Scholarship

▲Schools cooperatively organizing keynote

speeches



72

Integration Environmental

Protection

Benefit Competiveness

U-Ming Digital Platform

Short-term

• Establish good onshore and onboard communications to

improve efficiency

Mid-term

• Integrate IT system and enhance the concept of automation to reduce operational

deficiencies

Long-term

• Complete e-platform and then make continuous

improvement

E-Management U-Ming U-Ming Digital Platform

As the Internet advances, PC computing capacity also gets stronger. How to use latest technology to enhance the company’s operational efficiency and reduce unnecessary costs is the basic model for corporate operations. With the assistance of U-Ming Digital Platform, the effect of environmental protection is enhanced by making use of the paperless concept. The most important part is the reduction of economic costs, including fuels and operations, and moreover, onshore and ship operation and management efficiency also are increased, resulting in the comprehensive promotion of overall safety and communication efficiency. It is hoped that the platform can create a win-win situation for the environment and interested parties, such as employees, customers, suppliers, and the society.

Currently, the company is working with the vendors on subsequent matters. It is hoped that the company is able to improve its competitiveness in all aspects through the establishment of the U-Ming Digital Platform in order to achieve the ideal objective of sustainable business.

▼ U-Ming Digital Platform construction timesheet

▼ U-Ming Digital Platform’s objective

Reduce fuel consumption

Reduce operating costs

Enhance operating flexibility and

efficiency

Strengthen ship safety management

and communication

Improve fluency in communications

Minimize human errors

Enhance efficiency of operational

management

Strengthen information storability



73

GRI Indicators Description Status Note Page

1. Strategy and Analysis

1.1 Statement from the most senior decision-maker of the organization ● P.4-P.5

1.2 Description of key impacts, risks, and opportunities. ● P.4-P.5

2. Organizational Profile

2.1 Name of the organization. ● P.7

2.2 Primary brands, products, and/or services. ● P.8-P.13

2.3 Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures.

● P.20

2.4 Location of organization's headquarters. ● P.7

2.5 Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report.

●

P.9

2.6 Nature of ownership and legal form. ● P.7, P.20

2.7 Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries).

● P.21

2.8 Scale of the reporting organization. ● P.9

2.9 Significant changes during the reporting period regarding size, structure, or ownership.

N/A

2.10 Awards received in the reporting period. ● P.14-P.15

3. Report Parameters 3.1 Reporting period (e.g., fiscal/calendar year) for information provided. ● P.3

3.2 Date of most recent previous report (if any). ● P.3

3.3 Reporting cycle (annual, biennial, etc.) ● P.3

3.4 Contact point for questions. ● P.3

3.5 Process for defining report content. ● P.3

3.6 Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers). See GRI Boundary Protocol for further guidance.

●

P.3

3.7 State any specific limitations on the scope or boundary of the report (see completeness Principle for explanation of scope).

N/A

3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations.

●

P.21

GRI G3.1Guideline ●Full disclosure ◎Partial disclosure ○No disclosure N/A not available



74

3.9 Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report.

● CO2 emissions were calculated according to international standards, and economic data was verified by Deloitte Touche Tohmatsu Limited.

3.10

Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement (e.g., mergers/acquisitions, change of base years/periods, nature of business, measurement methods).

N/A

3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report.

N/A

3.12 Table identifying the location of the Standard Disclosures in the report. ● P.73-P.80

3.13 Policy and current practice with regard to seeking external assurance for the report.

● Third-party verification by DNV GL P.81

4. Governance, Commitments and Engagement

4.1 Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight.

●

P.20,P.22

4.2 Indicate whether the Chair of the highest governance body is also an executive officer.

● P.20

4.3 For organizations that have a unitary board structure, state the number and gender of members of the highest governance body that are independent and/or non-executive members.

● U-Ming Marine Transport expects to set up Independent Directors in 2016.

P.22-P.23

4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body.

● P.18

4.5

Linkage between compensation for members of the highest governance body, senior managers, and executives.

● Content of performance focuses on economic performance, and is not connected to the environment and social performance.

Please link to the 2013 Annual Report

4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided.

● Article XI of the Rules of Procedure of the Board of Directors

P.22

4.7 Process for determining the composition, qualifications and expertise of the members of the highest governance body and its committees, including any consideration of gender and other indicators of diversity.

● Review criteria mainly focus on economic aspects.

P.22

4.8 Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation.

●

P.6,P.16,P.30-P.31,P.45-P.46,P.63

4.9 Procedures of the highest governance body for overseeing the organization's identification and management of economic, environmental, and social performance, including relevant risks and

● Directors of U-Ming Marine Transport perform supervision primarily on economic issues.



75

opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles.

4.10 Processes for evaluating the highest governance body's own performance, particularly with respect to economic, environmental, and social performance.

● Review criteria mainly focus on economic aspects.

P.22

4.11 Explanation of whether and how the precautionary approach or principle is addressed by the organization.

● P.24-P.27

4.12 Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses.

● U-Ming Marine Transport participates in the international organization SSI.

P.36

4.13 Memberships in associations (such as industry associations) and/or national/international advocacy organizations.

● U-Ming Marine Transport participates in the international organization SSI.

P.36

4.14 List of stakeholder groups engaged by the organization. ● P.17-P.18

4.15 Basis for identification and selection of stakeholders with whom to engage.

● P.17-P.18

4.16 Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group.

● P.17-P.18

4.17 Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting.

●

P.18-P.19

Economic Performance Indicators

EC1

Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments.

● P.16,P.64

EC2 Financial implications and other risks and opportunities for the organization's activities due to climate change.

● In order to protect the environment and reduce the risk of environmental pollution, U-Ming Marine Transport implements the SEEMP Project in accordance with international norms to perform energy saving and carbon reduction, but does not conduct analysis on financial impact caused by greenhouse gases.

P.31-P.46

EC3 Coverage of the organization's defined benefit plan obligations. ● P.62-P.68

EC4 Significant financial assistance received from government. ○

EC5 Range of ratios of standard entry level wage by gender compared to local ○



76

minimum wage at significant locations of operation.

EC6 Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation.

○

EC7 Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation.

○

EC8 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement.

○

EC9 Understanding and describing significant indirect economic impacts, including the extent of impacts.

○

Environment Performance Indicators

EN1 Materials used by weight or volume. ○

EN2 Percentage of materials used that are recycled input materials. ○

EN3 Direct energy consumption by primary energy source. ● P.45

EN4 Indirect energy consumption by primary source. ○

EN5 Energy saved due to conservation and efficiency improvements. ● P.31-P.45

EN6 Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives.

●

P.31-P.45

EN7 Initiatives to reduce indirect energy consumption and reductions achieved.

○

EN8 Total water withdrawal by source. ○

EN9 Water sources significantly affected by withdrawal of water. ○

EN10 Percentage and total volume of water recycled and reused. ○

EN11 Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas.

○

EN12 Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas.

● Scope of operations of the company does not involve Ecological Conservation Zone.

EN13 Habitats protected or restored. ○

EN14 Strategies, current actions, and future plans for managing impacts on biodiversity.

● Scope of operations of the company does not involve Ecological Conservation Zone.

EN15 Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk.

○

EN16 Total direct and indirect greenhouse gas emissions by weight. ● P.45



77

EN17 Other relevant indirect greenhouse gas emissions by weight. ○

EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved. ● P.31-P.45

EN19 Emissions of ozone-depleting substances by weight. ○

EN20 NOx, SOx, and other significant air emissions by type and weight. ○

EN21 Total water discharge by quality and destination. ○

EN22 Total weight of waste by type and disposal method. ○

EN23 Total number and volume of significant spills.

● In 2013, U-Ming Marine Transport had no occurrence of oil pollution incident and was not subject to any financial penalty.

P.37

EN24 Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally.

○

EN25 Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organization's discharges of water and runoff.

○

EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation.

●

P.31-P.45

EN27 Percentage of products sold and their packaging materials that are reclaimed by category.

○

EN28 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations.

● In 2013, there was no record of breaching environmental laws, such as detention of ship and oil spills.

P.37

EN29 Significant environmental impacts of transporting products and other goods and materials used for the organization's operations, and transporting members of the workforce.

N/A

EN30 Total environmental protection expenditures and investments by type. ◎ P.41

Labor Practices and Decent Work Performance Indicators LA1

Total workforce by employment type, employment contract, and region broken down by gender.

● Due to industry characteristics, all seafarers employed by the company must sign an employment agreement. In 2013, there were two contract employees working in the office. Both of these two employees were Taiwanese, one female and one male.

P.58-P.61



78

LA2 Total number and rate of new employee hires and employee turnover by age group, gender, and region.

● P.59,P.61

LA3 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations.

● Due to industry characteristics, all seafarers employed by the company must sign an employment agreement. Benefits that seafarers should have shall be provided by the company pursuant to the MLC2006 regulations. The only difference on benefits between office full-time employees and contract personnel is the bonus.

P.62-P.67

LA4 Percentage of employees covered by collective bargaining agreements. ○

LA5 Minimum notice period(s) regarding significant operational changes, including whether it is specified in collective agreements.

○

LA6 Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programs.

○

LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region and gender.

◎ P.53

LA8 Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases.

○

LA9 Health and safety topics covered in formal agreements with trade unions. ○

LA10 Average hours of training per year per employee by gender and by employee category.

●

P.67-P.68

LA11 Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings.

○

LA12 Percentage of employees receiving regular performance and career development reviews by gender.

● Regardless of gender, all company employees must have the performance evaluation and career development assessment on a regular basis.

P.67

LA13 Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity.

○

LA14 Ratio of basic salary of men to women by employee category. ○



79

LA15 Return to work and retention rates after parental leave, by gender. ● In 2013, there was no record of employee taking the parental leave.

Human Rights Performance Indicators

HR1 Percentage and total number of significant investment agreements and contracts that include human rights clauses or that have undergone human rights screening.

○

HR2 Percentage of significant suppliers, contractors, and other business partners that have undergone human rights screening and actions taken.

○

HR3 Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained.

○

HR4 Total number of incidents of discrimination and corrective actions taken. ○

HR5 Operations and significant suppliers identified in which the right to exercise freedom of association and collective bargaining may be at significant risk, and actions taken to support these rights.

● U-Ming Marine Transport has never conducted risk analysis on possible violation of freedom of association.

HR6 Operations and significant suppliers identified as having significant risk for incidents of child labor, and measures taken to contribute to the elimination of child labor.

● The Labor Standards Act has stipulated to prohibit employment of any child worker under the age of 16. To be in compliance with labor laws and regulations, U-Ming Marine Transport does not employ any child labor under the age of sixteen. In addition, U-Ming has never conducted risk analysis on employment of child workers.

HR7 Operations and significant suppliers identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of all forms of forced or compulsory labor.

○

HR8 Percentage of security personnel trained in the organization's policies or procedures concerning aspects of human rights that are relevant to operations.

○

HR9 Total number of incidents of violations involving rights of indigenous people and actions taken.

○

HR10 Percentage and total number of operations that have been subject to human rights reviews and/or impact assessments.

HR11 Number of grievances related to human rights filed, addressed, and resolved through formal grievance mechanisms.

Society Performance Indicators

SO1 Percentage of operations with implemented local community engagement, impact assessments, and development programs.

● Since business scope of the company is marine environment, which does not



80

directly impact communities, impact assessment has not been conducted by the company.

SO2 Percentage and total number of business units analyzed for risks related to corruption.

○

SO3 Percentage of employees trained in organization's anti-corruption policies and procedures.

○

SO4 Actions taken in response to incidents of corruption. ● In 2013, there was no record of

corruption incident. P.28

SO5 Public policy positions and participation in public policy development and lobbying.

○

SO6 Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country.

○

SO7 Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes.

○

SO8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations.

● In 2013, there was no record of breaching environmental laws, such as detention of ship and oil spills.

P.37

SO9 Operations with significant potential or actual negative impacts on local communities.

SO10 Prevention and mitigation measures implemented in operations with significant potential or actual negative impacts on local communities.

Product Responsibility Performance Indicators

PR1 Percentage of operations with implemented local community engagement, impact assessments, and development programs.

○

PR2 Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes.

○

PR3 Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements.

○

PR4 Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes.

○

PR5 Practices related to customer satisfaction, including results of surveys measuring customer satisfaction.

● There was no record of customer satisfaction survey, but the company visited customers from time to time in order to maintain good relationship.

P.18



81

PR6 Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship.

○

PR7 Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes.

○

PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data.

○

PR9 Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services.

○



82

DNV GL Assurance Statement (1/2)



83

DNV GL Assurance Statement (2/2)



84


Founding Date August 29, 1968

Address 29F, No. 207 Tun Hwa S. Rd., Sec. 2,

Taipei City, Taiwan

Official Website www.uming.com.tw

Contact person Ashlee Yang 楊惠伶

Contact Information 02-27338000-6107 [email protected]

The Far Eastern Group

mailto:[email protected]

Date post:	11-Oct-2020
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