Bahri Annual Report-2017

Bahri Ship Management 5 Strategic Business Units 3 Sustained quality focus leads to global recognition Annual Report 2017 76

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Bahri Ship Management operates and manages the vessels owned by our Group, ensuring the safety of our people, and the environment, while serving the needs of our business and customers. It has been a year of all-round achievements for Bahri Ship Management. The growth of our fleet, our continued focus on safety and sustainability initiatives and consistent improvement in efficiency and performance led the list of Bahri Ship Management achievements.

We added seven new vessels to the Bahri Ship Management fleet in 2017: five VLCCs and two chemical tankers. These additions brought the number of vessels under our technical management to 85. In order to maintain the vessels to Bahri standards and comply with Class and Statutory requirements, we dry- docked nine VLCCs and six chemical ships during the year. We planned the dockings carefully to minimize vessel turnaround time without compromising customer needs and quality. We reflagged 36 of our vessels with the Saudi flag during the year, underlining our commitment to strengthening Saudi Arabia’s position in the international maritime sector and increasing the size and reputation of the Kingdom’s global fleet. Bahri now accounts for 84 percent of vessels carrying the Saudi flag, with nearly 5.2 million combined total gross tonnage. Bahri trained 11 employees of the Saudi Public Transport Authority at its offices in Dubai, and 15 employees from the Dammam Pilotage Department as part of the reflagging initiative.

Our core strength is our people. We now employ over 3,000 highly skilled multinational seafarers within the managed fleet. As well as employing foreign nationals, Bahri contributes to the development of the maritime industry in Saudi Arabia. As Saudi Arabia’s shipping sector grows, it is essential that the sector develops a qualified and trained national workforce for maritime jobs. Vocational training is a vital part of Bahri’s sustainability plans, and in 2017, we invested in a program of on- board safety training for seafarers. We trained 57 cadets from King Abdulaziz University and 41 from Saudi Aramco during the year, offering instructions on the most recent updates on safety and quality regulations. This training program to develop potential officers of the future will continue in 2018.

Major achievements

Awarded the ISO 9001 and 14001 certifications in recognition of its performance and quality services

We rely on teamwork, innovation and technology to achieve all-round excellence. We set ourselves challenging Key Performance Indicators (KPIs) that exceed existing industry standards or set new benchmarks. Rigorous and continuous compliance audits, preparatory drills and certification reviews are all part of our efforts to sustain excellence. This commitment brought us excellent results:

The “Lloyd’s” List Ship Operator Award

The “Maritime Standard’s” award for Ship Manager of the Year

The “QUALSHIP 21” certificate by the United States Coast Guard valid for three years due to its rigid quality and safety standards.

• Bahri was named the Ship Manager of the Year at the 2017 Maritime Standards Awards, Ship Operator of the Year at the 2017 Lloyds List Awards, and we were finalists for Safety and Environmental Compliance awards from both organizations. • Bahri improved its Ship Inspection Report Program (SIRE) performance by 12 percent, finishing the year 30 percent better than the global industry average of the Oil Companies International

Marine Forum (OCIMF). With our safety and quality achievements consistently outperforming industry benchmarks, Bahri continues to be recognized as a top quality operator for major customers such as Saudi Aramco, BP, Shell, ExxonMobil and Total. • In Port State Control (PSC) performance, Bahri’s performance in 2017 was 13 percent better than the 2016 average and again zero

detentions were recorded. Our fleet underwent 28 inspections by the US Coast Guard during the year with no negative observations. • Bahri Ship Management completed the DNV-GL ISM and ISO audits during the year, pioneering the new “Fit-For-Purpose” audit scheme. These audits confirmed the strength of Bahri’s quality management system with zero non-conformity or observation.

85 Ships managed by Bahri Ship Management

84% Of Bahri’s ships fly the Saudi flag

5.2 Total capacity of 5.2 million tons.

11 Trained 11 employees from the Saudi Public Transport Authority’s staff at Bahri’s offices in Dubai

15 Trainees from the Maritime Consulting Center in Dammam (affiliated to the Saudi Ports Authority) were also trained as part of an initiative to support the maritime industry in the Kingdom.

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