China Ocean Shipping Company (COSCO) is one of the flagship enterprises in China and the second largest shipping company in the world. Currently, COSCO owns and operates a merchant fleet of some 600 vessels with a total carrying capacity of up to 35 million dwt. Specialising in shipping and modern logistics, COSCO acts as a shipping agency, providing services relating to freight forwarding, shipbuilding, ship repair, terminal operation, trade, financing, real estate and the IT industry. In addition, it aims to play a leading role in each of these areas.
Innovative management system
President and CEO Captain Wei and his senior management team are dedicated to the building of an innovative management system and are keen to implement new concepts to take an international lead within shipping.
Describing DNV’s role in COSCO’s success in building an innovative management system, Captain Wei comments, “The external audits are one of the most important contributing factors to COSCO’s success.”
“COSCO’s senior management puts great emphasis on management innovation and expects DNV to provide value-added services that go beyond traditional compliance audits based on certification standards,” Sangem Hsu, DNV’s country manager in China explains.
DNV’s Risk Based Certification approach provides audits tailor made for a particular company. Before each audit, the audit team carries out organisational surveys to identify the relevant business risk and the focus areas of COSCO. Based on the results of the survey, the relevant criteria from Baldridge National Quality Award, COSO ERM, Global Compact, and Global Reporting Initiative key focus areas for COSCO are identified and audited alongside the ISO standard requirements.
Management commitment is key to success
Says Sangem Hsu: “COSCO’s senior management’s commitment is key to the success. DNV’s certification services help COSCO in building a management framework which integrates enterprise risk management and sustainable development into the ISO-based management system.”
Sangem Hsu continues: “It’s impressive that President and CEO Captain Wei and his senior management are present at each opening and closing of audit meetings. They are at the forefront of advanced management science and always show great interest in the new management practices and concepts.”
Sustainability is the way ahead
Earlier this year, DNV also signed an agreement with COSCO to support its sustainable development under the United Nations Global Compact.
Captain Wei has set his company’s vision for establishing a social responsible culture across the entire company. The programme will cover the ten core principles of the United Nations Global Compact initiative, which was established by UN Secretary-General Kofi Annan in 1999. The Global Compact is supported by over a thousand companies and international labour and civil society organizations around the world.
DNV’s cooperation with COSCO dates back to 1999, when DNV began providing certification services to its headquarters.
In 2001, COSCO received certificates according to three standards: ISO 9001: 2000 for quality-, ISO 14000 for environmental-, and OHSAS18000 occupational health and safety management systems. This made the company the first state-owned enterprise in China to receive all three certificates at the same time, indicating that a comprehensive management system had been built within the company.
“This was a milestone for COSCO to compete in the international marketplace,” says Sangem Hsu. In 2006, the COSCO took it one step further by achieving integrated certification according to the three management system standards.
Text: Cathy Zhang
