COMMERCIAL E-NEWSLETTER | MAY 2012

z.co.nz

Greetings,

This month we celebrated the 1st birthday of Z Energy. Friday 11th May marked the day a year ago when we decided to retire the 99 year old Shell brand in New Zealand in favour of a brand that New Zealand could identify with and call their own.

We have achieved a lot in this first year of being Z. We have done a lot of listening and we’ve invested in where it matters most – increasing security of supply so the wheels of New Zealand business keep turning without interruption, in community organisations doing great work in local neighbourhoods, and in bringing the service (along with a whole new customer offer) back into service stations. We have had great feedback from customers and we have almost finished rolling out the Z brand to the entire country.

We know that Kiwis expect more from local companies, and we certainly haven’t nailed everything yet. Like any one year old we have tripped and fallen on our journey. And like that one year old, we are starting to show New Zealanders the type of company we aspire to be – a world class Kiwi company.

Thank you for supporting us on our journey so far. We are looking forward to being around for many, many more years.

Regards,

Lindis JonesGM Commercial

Shell Sanson is to be completely knocked down and rebuilt. The works will start on 28 May with the new Z Sanson service station and truck stop scheduled to open towards the end of August.

This project is for a full redevelopment of Shell Sanson and will include an upgraded store offering tasty Kiwi pies, delicious espresso coffee and hotel style bathrooms. There will be an eight lane toll gate forecourt and a three lane truck stop facility.

To complete this work we’ll need to close the service station and truck stop completely for the duration of the project. This means that customers will need to refuel at alternative locations such as Palmerston North, Levin and Waiouru.

We recognise this is an inconvenience and thank our Sanson customers for their patience while we make these exciting changes. The new site will make it all worth it once it is open in August.

If you would like to know where other Z sites in the region are you can look at our Z Card directory online at http://z.co.nz/about-z/who-is-z-energy/our-brand-story/find-us/

Shell Sanson is getting a makeover

Z aviation fuel stop in Greymouth to close

Please note the Z aviation fuel stop in Greymouth will be permanently closed on 31 May.

COMMERCIAL E-NEWSLETTER | MAY 2012

z.co.nz

In past editions of The energy drop we have shared Z’s stance on sustainability. For Z, sustainability means acting in a way that benefits the future of the communities we operate in, the planet that carries us all while at the same time sustaining the long term future of our company.

Some people might be sceptical to hear a “fuel company” claiming to be sustainable. But believe it or not, as an energy company that intends to be around for the long haul, that’s exactly what we intend to do. We are going to be doing everything we can to lower our carbon footprint and support our local communities.

One of our first tasks has been to look at the vehicles our account managers use to get all around the country. They are currently in a variety of different vehicles and by swapping them to the new Toyota Camry Hybrid, we will be reducing our carbon foot print by an estimated 87 tonnes per annum. We already have some on the road and expect our entire fleet to be changed over by the end of 2013.

We’re sure by now many of you have seen our community donation boxes in all our new Z branded sites. These are to celebrate our opening and

What’s new in sustainability?demonstrate our commitment to the neighbourhoods we operate in. We have been making contributions to your neighbourhood for almost a year now.

Watch the space for regular updates on what we’re doing to become a sustainable Kiwi company.

Z Energy has welcomed the decision of Chevron to return 20 million litres of bulk storage to service in Timaru.

In May 2010, Chevron (trading as Caltex in New Zealand) closed its fuel storage terminal in Timaru. This halved the storage at Timaru and left Z with the only operational tanks servicing the South Canterbury region.

During the last year the diesel supply in South Canterbury has been insufficient to meet the region’s needs.

Prior to Chevron’s decision, Z Chief Executive Mike Bennetts said Z had been unsuccessfully trying to lease or buy Chevron’s tanks to boost fuel storage in South Canterbury and in late 2011 decided to raise the issue publicly to try and force a decision on the issue.

“The situation in Timaru was simply untenable. Port diesel supplies were insufficient to meet the region’s demand 90 per cent of the time…”

Z had started a tank swap project at Timaru to try and replace some of the lost diesel storage capacity, but this has now been halted pending the return of Chevron’s tanks.

Z welcomes change of heart on Timaru tanks

Mike Bennetts adds “Z is committed to leading the investments that the New Zealand supply chain needs and we’re committed to changing the way the industry operates to enable this to happen.”

COMMERCIAL E-NEWSLETTER | MAY 2012

At Z we are committed to doing what matters, and health and safety is the most important element of our business. With this in mind, we want to share with you how we go about keeping people and our environment safe throughout Z. Here’s what we’ve been doing with our carrier partners, Hooker Pacific (“Hookers”).

Hookers is our primary trucking company, responsible for the transportation and delivery of fuel to our retail sites, truck stops and commercial customers by road.

The delivery of fuel from terminals to our customers involves a range of risks to safety and our environment. Motor vehicle accidents, spills, product contamination and personal injury from slips and falls are all risks that need to be managed.

Managing these risks is a key priority for Z and Hookers and we approach this by having a strong collaborative partnership with the same focus of zero harm.

The three key components of our management system include drivers, vehicles and journey management:

• All our drivers go through an induction period where they are “buddied” with an existing experienced driver. The induction includes managing dangerous goods, loading and unloading tankers, fatigue management and defensive driving. Following the induction period driver safety continues with regular coaching, assessments and audits of policies and safe practices such as speed compliance, correct completion of logs books, taking rest breaks and completing daily vehicle inspections.

• A similar approach is taken in managing all phases of vehicle life. Z adheres to vehicle standards that are above normal legislative requirements including features such as speed limiting and reverse warning beepers. Once in service, all vehicles are subject to a preventative maintenance programme that includes

Hooker Pacific and Z working together

the truck itself and all equipment on the truck such as fire extinguishers, delivery hoses and overfill protection systems. If a breakdown or failure were to occur, then an analysis takes place to prevent a reccurrence.

• The last component is journey management. For every customer delivered to, a site and trip plan is documented. This includes information on how to get to the site, how to access the site, any hazards and hazard mitigation steps. For longer journeys, details also include safe stopping areas for driver breaks. All trucks are monitored by a global positioning satellite system that can be overlaid on maps so we can see exact details of speed and truck locations from second to second. An additional key component of journey management is that Z schedules all deliveries. This means we determine where our drivers are going and how many deliveries they are to carry out per shift.

Z and Hookers are proud to work together to do all we can to keep people and our environment safe from harm. We know that safety is something that is important to our commercial customers too, so get in touch with us to share your learnings or best practice.

COMMERCIAL E-NEWSLETTER | MAY 2012

z.co.nzz.co.nz

And if you have any questions about what is an approved container then you can visit www.epa.govt.nz or contact your Z Account Manager.

We have the right legally to close any Z Card account for any reason. While we wouldn’t make this decision lightly, we definitely would look to do it in the case of customers not complying with our health and safety rules and putting other people or themselves in danger.

Z is committed to Zero Harm. This means that we do everything we can to reduce the risk of an incident happening where someone gets hurt. One of the ways we do this is by having rules we need our customers to follow, especially at our service stations and truck stops.

Recently, a Z Card customer came onto one of our service stations. They tried to fill a 60 litre metal drum in the back of their 4x4. The customer was asked to cease from doing this as it was creating three serious safety concerns.

When filling containers it is imperative to only use approved containers. Filling non-approved containers is illegal and unsafe. The second safety hazard is it is Z policy that we fill up to 25 litre containers only. Fuelling large containers could result in injuries when moving them from the vehicle to the ground and back again.

What is most worrying with this incident, is that the container was being filled in the back of the vehicle. Containers should not be filled on a truck deck, trailer, ute, or in car boots. Doing so can create static electricity and result in a fire. Under certain conditions, static discharge from some types of clothing and material in your vehicle may ignite petrol vapours. The container must be grounded on the forecourt to reduce the risk of static electricity reacting with the fuel vapours.

Of even more concern, was that the Forecourt Concierge asked the customer to stop what they were doing, but they refused. Our staff are trained in the safety and environment risks of operating on a forecourt and any requests they make need to be followed for the safety of all those on the forecourt.

You can fill some containers at our sites, and in a safe way. To ensure you do this you must:

• Fill into an approved container. This is a container that has an appropriate sealing cap, is made of metal or a durable plastic that will not react with the fuel and is clearly labelled or marked to identify the fuel and the potential hazards eg “petrol – highly flammable”. Remember this also has to be under 25 litres in capacity.

• Place the container on the forecourt to fill. This reduces the risk of vapours reacting with static electricity which could cause a fire.

• Make sure containers can be transported safely once filled.

If you need any help or advice about filling your container safely then you can ask one of our Z Forecourt Concierges who are on site between 10am and 5pm daily.

Safe refuelling –are you doing the right thing?

Meet Jenna FergusonPosition:Marine Co-ordinator

Z career: I have been with the company for almost four years. I was taken on as a contractor originally while the business was going through a lot of change. Now we are Z, I sit in the Marine team.

Favourite part of the job: The people I get to deal with on a daily basis really make the job for me, I love to chat and I get to do plenty of it in this role!

Vision for future of Z Energy: I am really looking forward to the day when people start to realise that we are not some big petrol company just in it for the money. That they see what we are giving back to the community and working hard to make this a sustainable Kiwi company.

Hobbies/interests outside work: My partner Jas and I spend a lot of time exercising our two dogs, Sally and Gee. In the weekend we try and go to a beach, park or river to play frisbee and run them ragged as a change from pounding the pavements during the week. The rest of my time is spent with friends, family or renovating our house… or dreaming of winning Lotto so I can pay someone else to renovate for me!

People profile

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