Dan Sten Olsson - June 2019
REMARKABLE EVENTS AND CONTINUOUS IMPROVEMENTS
Every year meets its fair share of events. Some seem to be remarkable as they arrive. Others turn out not to be so remarkable in retrospect. This year we have taken big steps into being active in logistics, which, I believe, will remain a remarkable step forward.
Our investment in the road-haulier company N-Tex , even if it is only 25 per cent, has increased our awareness of how goods are moving from door to door. As a consequence we have been capable to attract more traffic via our routes. We are also active in creating traffic to our routes by sharing responsibility with railway operators to our ports in Rotterdam, Kiel, Rostock, Gdynia and Karlskrona. Last quarter we acquired two thirds of NMT a company active in transporting second hand vehicles and rolling equipment in Europe and overseas mainly from Europe. In consequence we have this quarter been entrusted with setting up a joint venture with Glovis called Stena Glovis. Glovis is a company active in transporting cars, lorries and rolling equipment mainly from South Korea. The task for the joint venture is to fill the Glovis ships with return cargo from Europe to the Far East also calling the Middle East and Africa. The joint venture also has the task to transport Huyndai and Kia cars in Europe. Part of these cars will be shipped on existing Stena Line routes. By our activities in moving cars and other rolling equipment called OEM cargo, Stena Line has got the opportunity and has already completed a few new contracts for our routes. In Latvia Stena Line has acquired 25 per cent of a small forwarding company, which will help us to better understand Baltic and Russian logistic business.
ENVIRONMENT AND SUSTAINABILITY
Preparing ourselves for a future without any fossil fuels has just started. Our investment in partly running Stena Jutlandica on battery power has just been implemented. Our next generation of new-buildings for Stena Line in the 2030 ies will probably be driven by electricity stored in batteries. Electricity is considered to be a carrier of energy, free from fossil fuel. It is not completely true, but it will probably be so in a very near future. To that effect Stena Renewable has plans to build three hundred windmills to be run by totally fossil free wind. Paired with storage by battery we believe electricity by wind will be cost competitive in a very near future. In consequence Stena is also one of the original investors in Northvolt a project to build the first large scale Battery producer in Sweden. Stena Recycling is joining in with the technology and capacity to recycle batteries built on Lithium and Cobalt. Fuel cell technology built on cheap electricity with hydrogen as the energy carrier might be another venue in the future. We are just starting to explore this technology, but have done nothing so far. Thinking about the environment and sustainability Stena are so far fulfilling the following projects:
Increase the recycling rate of our overall material. In recent years, we have improved it by 30 per cent. By innovations concerning circular economy, among other things talking to our customers already in the design phase and finding new, efficient ways to recycle all kinds of materials are very effective methods. Have also subscribed to a Green Bond.
By relationship management which creates value for both our tenants and for Stena. Innovations for new housing concepts. Nursing homes and homes for people with disabilities in our areas can also create jobs. Youth employment.
Sustainable development of wind turbines. Innovations for waste disposal in large cities.
Innovation for new fuels such as methanol and battery power. Vessels will be more efficient by innovative development of hull shapes, propellers, etc. The use of AI to optimize sailing. Looking at material usage – reducing plastics. If an innovation is demanded by the market, if it is economically profitable and if it creates more benefit than damage than it is considered sustainable by our criterias.
WHITE BOOK NINTH EDITION
Maybe you have noted I have rewritten my White Book. The main new thoughts are:
Decisiveness and duality. Our ability to prioritize and find the right balance between opposites creates successful decisions. Every initiative normally has two sides to consider – in other words, duality. Our future success depends on our ability to handle duality with good judgement, care and determination.
The work in each business unit must be based on set systems and processes.
(The complexity and size of every business unit today makes this a necessity).
Effective use of time means we are prepared for decisions that have to be made. It is the well-prepared person who wins. In situations where no decision is needed, normally no decision is made. Never hesitate though to make a decision in a situation, when a decision has to be made – It is a failure not to make a decision on time. Caring is about using the power you are entrusted with.
Nothing is done by itself. For every problem there is room for improvement and every new initiative creates an opportunity for us to improve our future.
Delegating responsibility and power to act is the key to our success.
We strive for happy customers who are served by a happy organization.
HARSHENING ECONOMIC TIMES
For ten years we have benefitted from a positive economic cycle. This is one of the longest of its kind remembered. That harsher times are approaching we can see at our volumes of trade being less almost everywhere. British trade will loose freight carryings on Brexit although our routes might be slightly compensated by gain in market share. We have to prepare ourselves. Adding any further comments on Brexit I think is useless for the moment.
Nevertheless, our future depends on us living up to our promise to support each other. So please continue taking care of Stena and take care of yourself.
Dan Sten Olsson
Göteborg 31 May 2019
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