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Wherever you go<br />

<strong>GAC</strong> <strong>WORLD</strong><br />

Newsletter for professionals in shipping and transport No 3 July 2003<br />

<strong>Reshaping</strong> <strong>the</strong><br />

<strong>Business</strong> <strong>World</strong> –<br />

<strong>the</strong> IT Factor<br />

Securing <strong>the</strong> System Page 8<br />

Spam, Spam and Spam Page 10<br />

The Genesis of <strong>the</strong> Internet Page 12<br />

Marine Logistics Service Launched Page 16<br />

Distribution Centre Marks 10th Anniversary Page 17


2 <strong>GAC</strong> <strong>World</strong> 3/2003<br />

Lost in Transit<br />

A selection of<br />

unintentionally funny<br />

announcements<br />

Radio communication<br />

between cockpit and air<br />

traffic controller<br />

Tower: To avoid noise, please turn right<br />

45 degrees.<br />

Pilot: What noise could we possibly make<br />

at 35,000 ft?<br />

Tower: The noise your 707 will make<br />

when colliding with <strong>the</strong> 727 in front of<br />

you.<br />

Quote from an examination<br />

script<br />

To keep milk from turning sour: keep it in<br />

<strong>the</strong> cow.<br />

– I can fly back in time and recover lost backups. What do you do?<br />

A selection from church<br />

bulletins<br />

Ladies, don’t forget <strong>the</strong> rummage sale.<br />

It’s a chance to get rid of those things<br />

not worth keeping around <strong>the</strong> house.<br />

Don’t forget your husbands.<br />

The cost for attending <strong>the</strong> Fasting and<br />

Prayer conference includes meals.<br />

Contents<br />

Editorial by Lars P. Heisselberg, Group Vice President – Shipping Page 3<br />

IT Reshapes <strong>the</strong> <strong>Business</strong> <strong>World</strong> Page 4<br />

<strong>GAC</strong>’s IT Systems for Greater Innovation and Better Service Pages 5 – 7<br />

Securing <strong>the</strong> System Page 8<br />

When <strong>the</strong> System Fails… Page 9<br />

Spam, Spam and Spam Page 10<br />

Wherever You Go: <strong>GAC</strong> IT Professionals Page 11<br />

The Genesis of <strong>the</strong> Internet Pages 12 – 13<br />

Introducing – Gamila Samarasinghe – <strong>GAC</strong> Sri Lanka’s IT Manager Page 14<br />

My Town – Gamila Samarasinghe’s guide to Colombo and its surroundings Page 15<br />

<strong>GAC</strong> Wrap Pages 16 – 18, 20<br />

Industry Insight: Using <strong>the</strong> Sealanes to Revitalise a <strong>World</strong> Economy Page 19<br />

The pastor will preach his farewell<br />

message, after which <strong>the</strong> choir will sing,<br />

”Break Forth Into Joy.”<br />

Contacting <strong>GAC</strong><br />

Want <strong>the</strong> contact details for a <strong>GAC</strong><br />

office or staff member? Go to <strong>the</strong><br />

Directory section of:<br />

www.gacworld.com<br />

Editor: Lars Peter Heisselberg,<br />

Gulf Agency Company Ltd,<br />

Jebel Ali, Dubai, United Arab Emirates<br />

Design: Cross-Border Communication,<br />

Copenhagen, Denmark<br />

Production: Anna Rydén Produktion AB,<br />

Stockholm, Sweden<br />

Correspondence to: Amanda Millen,<br />

TBWA\A<strong>the</strong>ns, 1 Flias Street,<br />

GR-151 22 MAROUSSI, Greece.<br />

Tel +30-210-812 5400, Fax +30-210-812 5480<br />

E-mail amanda.millen@tbwa.gr<br />

Information quoted in this publication has been<br />

obtained from several sources. Whilst every care<br />

has been taken to ensure that details are correct,<br />

<strong>GAC</strong> cannot provide any guarantees <strong>the</strong>reof.<br />

Material in this publication may be freely<br />

quoted, provided <strong>the</strong> source is clearly identified.


Editorial<br />

3<br />

The IT Factor<br />

Once upon a time it was railways and steam<br />

engines that drove <strong>the</strong> economic fortunes<br />

of companies and nations. These days it’s IT,<br />

in its myriad forms, shaping and reshaping<br />

<strong>the</strong> way we work and endlessly expanding<br />

our workday possibilities.<br />

Throughout <strong>the</strong> <strong>GAC</strong> Group <strong>the</strong>re are<br />

systems in place to help us do a better, quicker<br />

and more cost-effective job for our<br />

Customers. Some of our systems link<br />

directly to our Customers’ IT networks to<br />

provide easy access to information, quotes,<br />

forms, regulations and people. Some of<br />

<strong>the</strong>m sit in <strong>the</strong> background, checking, analysing,<br />

watching and protecting. It all adds<br />

up to a globe-spanning network of machines<br />

labouring round <strong>the</strong> clock to serve our<br />

human need for exchanging goods and<br />

information.<br />

As it was with steam engines, IT applications<br />

both help us and challenge us. In <strong>the</strong><br />

Steam Age, some people believed it was not<br />

only impossible but also dangerous to<br />

travel faster than a horse. Now our concerns<br />

centre on <strong>the</strong> new competencies required<br />

to ensure safe and effective use of<br />

our digital helpers. And <strong>the</strong> competencies<br />

demanded of users to run sophisticated<br />

programs pale before those demanded of<br />

our IT managers and developers to select,<br />

set up, train, maintain and upgrade our<br />

systems.<br />

In this edition of <strong>GAC</strong> <strong>World</strong>, we’re taking<br />

a long look at IT – not just <strong>the</strong> systems<br />

we’re using to serve our Customers but <strong>the</strong><br />

issues that arise with <strong>the</strong>ir use – things like<br />

security, Spam and system failures. We’ll<br />

also meet some of <strong>the</strong> people who keep our<br />

mouses clicking.<br />

He, She and IT<br />

The name of Lars Bergström, our IT<br />

Director, crops up regularly in <strong>the</strong> following<br />

pages. This is hardly surprising, given <strong>the</strong><br />

weight of issues Lars has to handle. However,<br />

IT is not exclusively a man’s domain,<br />

as is aptly demonstrated by Gamila Samarasinghe,<br />

our IT Manager in Sri Lanka. Apart<br />

from introducing herself, Gamila offers<br />

some useful tips for anyone venturing down<br />

to <strong>the</strong> Paradise Isle.<br />

An Anniversary<br />

Ten years ago, <strong>GAC</strong> opened its first distribution<br />

centre, at Jebel Ali in <strong>the</strong> United<br />

Arab Emirates. It’s been a good 10 years of<br />

innovation and growth and definitely<br />

something to celebrate. The Jebel Ali facility<br />

is state-of-<strong>the</strong>-art and a keystone in <strong>the</strong><br />

<strong>GAC</strong> Logistics network which, as you will<br />

read, is expanding vigorously to meet <strong>the</strong><br />

needs of global traders.<br />

I hope you find this edition of <strong>GAC</strong><br />

<strong>World</strong> interesting and informative. If <strong>the</strong>re<br />

are o<strong>the</strong>r subjects or issues you would like<br />

to see in <strong>GAC</strong> <strong>World</strong>, please let me know.<br />

Lars P. Heisselberg<br />

Editor<br />

larspeter.heisselberg@gacworld.com


4 IT Reshapes <strong>the</strong> <strong>World</strong><br />

IT Reshapes<br />

<strong>the</strong> <strong>Business</strong> <strong>World</strong><br />

It was less than a decade ago that companies and individuals<br />

realised <strong>the</strong> potential of <strong>the</strong> <strong>World</strong>wide Web as a way of doing<br />

business. Today it is hard to imagine <strong>the</strong> world without it.<br />

Information Technology (IT) now plays a central role in our<br />

lives. It provides tools for communicating, informing, planning,<br />

analysing, organising, entertaining, shopping – <strong>the</strong> list is<br />

daunting and expanding constantly. And now, thanks to<br />

wireless telephony and WAP technology, we can always stay in<br />

touch – wherever we go.<br />

In 1995, <strong>GAC</strong> became <strong>the</strong> first international<br />

shipping agency to launch a website.<br />

Since <strong>the</strong>n, as <strong>the</strong> opportunities offered<br />

by <strong>the</strong> <strong>World</strong>wide Web have grown, so too<br />

has <strong>the</strong> range of IT services and applications<br />

<strong>GAC</strong> offers. Today, <strong>the</strong> Group controls a<br />

huge array of online services and specialist<br />

software to support its services to global<br />

shipping, logistics and marine customers.<br />

Driving Force<br />

Group IT Director, Lars Bergström, has<br />

been a driving force behind <strong>the</strong> development<br />

of <strong>GAC</strong>’s business applications since<br />

he joined <strong>the</strong> Group in 1995. He considers<br />

IT to be vital for future development and<br />

success.<br />

“<strong>GAC</strong> has developed solutions for all our<br />

business operations and activities, tailormade<br />

to meet both our customers’ and partners’<br />

requirements and to support our internal<br />

procedures and processes,” says Lars.<br />

Proper training to ensure maximum<br />

benefits are obtained from <strong>GAC</strong>’s systems<br />

is a priority, he adds.<br />

Internal Applications<br />

<strong>World</strong>wide, <strong>the</strong> <strong>GAC</strong> Group uses a range<br />

of internal applications to ensure seamless<br />

administration and inter-office cooperation.<br />

Lars Bergström says that <strong>GAC</strong> has<br />

standardised its technical infrastructure<br />

and software, ensuring <strong>the</strong>re are no conflicts<br />

between systems.<br />

“The future is here and now,” he adds.<br />

“Within <strong>GAC</strong>, every effort is being made to<br />

use <strong>the</strong> most suitable technology available<br />

to ensure that both our employees and our<br />

customers reap <strong>the</strong> full benefits – wherever<br />

<strong>the</strong>y go.”<br />

The Human Touch<br />

<strong>GAC</strong> has always taken care not to lose<br />

touch with <strong>the</strong> human element, according<br />

to Group President, Lars Säfverström.<br />

He says <strong>the</strong> key to success lies in combining<br />

technological innovations with<br />

<strong>GAC</strong>’s traditional focus on experience,<br />

local knowledge and person-to-person<br />

relationships with Principals.


<strong>GAC</strong>’s IT Systems<br />

5<br />

<strong>GAC</strong>’s IT Systems –<br />

for Greater Innovation and Better Service<br />

On <strong>the</strong> Internet…<br />

<strong>GAC</strong> Online – Group Website<br />

• Launched 1995 and upgraded regularly<br />

since <strong>the</strong>n<br />

• Includes a comprehensive guide to <strong>the</strong><br />

organisation and its services plus:<br />

- Online access to <strong>the</strong> <strong>GAC</strong> address<br />

directory<br />

- Access to <strong>GAC</strong> publications<br />

- Links to local <strong>GAC</strong> companies and<br />

relevant external sites<br />

My<strong>GAC</strong><br />

• Launched November 2000 as<br />

www.mygac.com<br />

• Subscribers can build <strong>the</strong>ir own My<strong>GAC</strong><br />

home page that displays <strong>the</strong> information<br />

<strong>the</strong>y want to see<br />

• Features include <strong>GAC</strong> contact details, a<br />

port directory, maritime news updates<br />

from Reuters, wea<strong>the</strong>r reports, currency<br />

converter<br />

• My<strong>GAC</strong> now has about 4,000<br />

subscribers<br />

Hot Port News<br />

• Hot Port News (HPN) described as “one<br />

of <strong>the</strong> most reliable and up-to-date<br />

sources of information” on port<br />

developments around <strong>the</strong> world<br />

• More than 3,500 My<strong>GAC</strong> subscribers<br />

receive daily HPN bulletins by e-mail<br />

• All My<strong>GAC</strong> members can see <strong>the</strong>se<br />

updates on <strong>the</strong>ir personalised home<br />

pages<br />

• E-mail bulletins can be customised to<br />

feature <strong>the</strong> regions of interest to<br />

subscribers who can also select whe<strong>the</strong>r<br />

or not to receive daily bunker price and<br />

trends reports<br />

• <strong>GAC</strong> remains <strong>the</strong> only international<br />

shipping agency to provide such a<br />

customisable daily news service<br />

• During <strong>the</strong> recent Iraq conflict, HPN<br />

added a daily update on <strong>the</strong> status of<br />

Middle East ports and airports<br />

<strong>GAC</strong> E-News<br />

• Launched July 2002<br />

• E-mail news bulletin giving a round-up of<br />

Corporate news, HPN highlights, an<br />

“Industry Update” section and latest<br />

amendments to <strong>GAC</strong>’s printed Address<br />

Directory<br />

• Distributed monthly<br />

www.gacworld.com – <strong>GAC</strong>’s<br />

new “one stop” Internet<br />

address<br />

• www.gacworld.com launched June 2003<br />

• Incorporates all elements of <strong>the</strong> Group<br />

site, plus My<strong>GAC</strong> and close to 40<br />

individual country and special service<br />

sites<br />

• Includes <strong>the</strong> specialised features of<br />

various local sites such as <strong>the</strong> Suez Canal<br />

toll calculator, updates on Bosphorus and<br />

Dardanelles transits, online logistics<br />

tracking, Ship Supply Service and<br />

accounts functions<br />

continued overleaf >


6 <strong>GAC</strong>’s IT Systems<br />

Continued from page 5.<br />

Shipping<br />

<strong>GAC</strong>Ship<br />

• Launched in October 2002 to support<br />

<strong>GAC</strong>’s Hub Agency operations<br />

• Gives transparency to <strong>GAC</strong>’s hub<br />

activities – Partner agents have direct<br />

access to port cost estimates and cost<br />

control, port call operations control,<br />

funding, and analysis<br />

• Links <strong>the</strong> Group and its network of<br />

Partner agents to selected hub agency<br />

alliance clients<br />

• Network agents can enter up-to-date<br />

information about <strong>the</strong> ports <strong>the</strong>y serve<br />

<strong>GAC</strong>Agent<br />

• <strong>GAC</strong>’s port agent system<br />

• Provides proforma, operations and<br />

disbursement information<br />

• Electronic data interchange (EDI)<br />

facilitates smooth connection between<br />

<strong>GAC</strong>’s and Principals’ accounting systems<br />

• Plans to link <strong>GAC</strong>Agent directly to<br />

<strong>GAC</strong>Ship to give more seamless flow of<br />

information<br />

SAS<br />

• Custom-built Shipping Agency System<br />

• Developed in 1995 to optimise <strong>the</strong> Liner<br />

Shipping Division’s agency services<br />

• Gives liner clients information about<br />

sales, import/export and container<br />

management<br />

• Supports port disbursements for such<br />

operations<br />

• Has facilities for EDI between <strong>the</strong> <strong>GAC</strong><br />

Group’s accounting systems and those of<br />

Principals, Port, and Customs authorities<br />

Ship Supply Services<br />

– Mona Lisa<br />

• Tracks and coordinates provision of<br />

spares and mail, crew changes and<br />

disbursements for SSS jobs<br />

• Allows registered customers to monitor<br />

<strong>the</strong> status of supply jobs being<br />

performed by <strong>GAC</strong> on <strong>the</strong>ir behalf in <strong>the</strong><br />

Middle East<br />

Logistics<br />

Hands-On:<br />

Alwyn Mendonca &<br />

<strong>GAC</strong> Freight<br />

<strong>GAC</strong> Freight: One <strong>World</strong>, One<br />

System<br />

• Facilitiates <strong>the</strong> handling of import and<br />

export documentation for <strong>GAC</strong> sea and<br />

air freight operations around <strong>the</strong> world<br />

<strong>GAC</strong> Track<br />

• <strong>GAC</strong>’s online freight tracking system<br />

• Shipments can be monitored from origin<br />

to final destination, giving complete<br />

cargo visibility and customer peace of<br />

mind<br />

Online Warehouse Management<br />

– Hercules<br />

• Hercules provides information and reports<br />

about transactions and stock balances at<br />

any time and any place<br />

• Gives Principals access to detailed<br />

information about <strong>the</strong>ir stockholding,<br />

imports, exports and statistics at <strong>GAC</strong>’s<br />

warehouses and distribution operations<br />

around <strong>the</strong> world<br />

• <strong>GAC</strong> is this year introducing a new<br />

warehouse management system,<br />

<strong>GAC</strong>Ware<br />

Target<br />

• Freight sales administration and<br />

management system<br />

AirGulf Express and CargoGulf<br />

co-ordination<br />

• Specialised applications co-ordinate, track<br />

and follow-up worldwide cargo traffic<br />

handled by <strong>GAC</strong>’s air freight service,<br />

AirGulf Express, and <strong>the</strong> Group’s Non<br />

Vessel Operating Common Carrier,<br />

CargoGulf<br />

<strong>GAC</strong> Move<br />

• Handles administration and billing of<br />

international moving operations<br />

• Supports surveys, quotations and<br />

communications<br />

• Integrated with <strong>the</strong> Dolphin financial<br />

accounting system<br />

Alwyn Mendonca, <strong>GAC</strong> Hong Kong’s <strong>Business</strong> Manager<br />

for Logistics Services, says <strong>GAC</strong> Freight helps<br />

him manage information relating to customers and<br />

cargo flows.<br />

Its functions cover client booking, preparation of<br />

shipment documents, shipment consolidation and<br />

maintenance of job files. Valuable operational and<br />

statistical reports are generated on a regular basis,<br />

such as weekly and monthly summaries of business<br />

volumes, destinations and carriers used. These reports<br />

are vital for planning and evaluation.<br />

Alwyn says <strong>the</strong> system provides an integrated<br />

tool for <strong>GAC</strong>’s freight forwarding activities, making<br />

it easier for users to complete <strong>the</strong> many tasks<br />

related to such operations. It is also linked to Dolphin,<br />

<strong>the</strong> accounting application used throughout<br />

<strong>the</strong> <strong>GAC</strong> Group.


<strong>GAC</strong>’s IT Systems<br />

7<br />

<strong>GAC</strong> Bunkers<br />

• Supports <strong>GAC</strong>’s bunkering and bunker<br />

trading activities<br />

• Manages operations such as requests,<br />

quotations, nominations and invoicing<br />

P&I – Savior<br />

• Handles <strong>the</strong> administration and billing of<br />

P&I claims for <strong>GAC</strong>’s global network of<br />

P&I Club correspondents<br />

<strong>GAC</strong>SaM<br />

• <strong>GAC</strong>’s central shipping sales and<br />

marketing system<br />

• Collates statistics for all port calls<br />

handled by <strong>GAC</strong>, as well as Principal and<br />

sales visit information<br />

Workshop system – Top Gear<br />

• Tailor-made system supporting <strong>GAC</strong>’s<br />

preventative maintenance, inventory and<br />

purchasing activities<br />

• Ensures efficient workshop operations<br />

and timely maintenance of <strong>GAC</strong> vessels<br />

and vehicles<br />

Hands-On:<br />

Royington Faria & <strong>GAC</strong>Ship<br />

Royington, based in <strong>the</strong> Operations section of <strong>GAC</strong>’s<br />

Dubai Hub Agency Centre, uses <strong>GAC</strong>Ship every day.<br />

He says that one of <strong>the</strong> advantages of <strong>the</strong> system<br />

is that professionals at <strong>GAC</strong>’s Hub Agency Centres<br />

around <strong>the</strong> world have been involved in its<br />

development. This means that it has been built<br />

around <strong>the</strong> needs of <strong>the</strong> people who use it as well<br />

as those of <strong>the</strong> clients it serves.<br />

Royington says <strong>the</strong> system has changed working<br />

processes to such an extent that data input can be<br />

analysed at <strong>the</strong> press of a single button.<br />

“<strong>GAC</strong>Ship is constantly being developed,” he<br />

adds. “But we can safely say that it increases <strong>the</strong><br />

efficiency and productivity of <strong>the</strong> four Hub Agency<br />

Centres and <strong>the</strong> Global Disbursement Centre in<br />

Dubai.”<br />

Marine and Offshore Operations<br />

Hands-On:<br />

Capt. Nick Dorse &<br />

ISM Vessel Reporting System<br />

ISM Vessel Reporting System<br />

• Launched mid 2002<br />

• Facilitates and simplifies ships’ reports on<br />

International Safety Management (ISM)<br />

related matters such as:<br />

- Master’s Hand-over notes<br />

- Chief Engineer’s Hand-over notes<br />

- Onboard familiarisation checklist (for<br />

crew joining vessel)<br />

- Fortnightly safety drills<br />

- Quarterly vessel inspection reports<br />

- Incident reports<br />

<strong>GAC</strong> Marlin<br />

• Support functions for <strong>GAC</strong> Marine such<br />

as a customer database, quote and job<br />

tracking, invoicing, manifests, fleet<br />

position lists and statistics<br />

Capt. Dorse is Master of <strong>the</strong> Anchor Handling Tug<br />

“Mimmi” based with <strong>GAC</strong> Marine in Abu Dhabi. He<br />

is a regular user of <strong>the</strong> ISM Vessel Reporting System.<br />

He says it has greatly simplified <strong>the</strong> task by standardising<br />

<strong>the</strong> reporting format and significantly<br />

reducing <strong>the</strong> volume of paper work. A built-in zip<br />

facility also keeps <strong>the</strong> cost of data transmission to a<br />

minimum.<br />

“Now that computers and ISM have become an<br />

integral part of life at sea, <strong>the</strong> necessity to standardise<br />

reporting or face <strong>the</strong> consequences of lost<br />

records, cluttered computer memories and general<br />

poor housekeeping, is self evident,” he says.<br />

“The use of <strong>the</strong> ISM Vessel Reporting System<br />

plays an important role in addressing that issue.”<br />

There are also plans to expand <strong>the</strong> use of <strong>the</strong> application’s<br />

database to cover o<strong>the</strong>r periodic reports.


8 IT Security<br />

Securing <strong>the</strong> System<br />

Much of <strong>the</strong> coverage of IT<br />

security issues in <strong>the</strong> wider<br />

media is sensationalist,<br />

focusing on nerdy hackers and,<br />

in <strong>the</strong> wake of 9/11, fanatical<br />

terrorists. With our lives now<br />

increasingly dependent on<br />

computers and computer<br />

systems functioning as <strong>the</strong>y<br />

should, <strong>the</strong> fear that some day<br />

something might go wrong is<br />

an easy one for newsproviders<br />

to play on.<br />

Never<strong>the</strong>less, <strong>the</strong>re are<br />

substantial issues surrounding<br />

IT security – issues that have to<br />

be treated with respect.<br />

<strong>GAC</strong> Security<br />

At <strong>GAC</strong>, <strong>the</strong>se issues are handled in hardheaded<br />

fashion by Lars Bergström, Group<br />

IT Director.<br />

“In <strong>GAC</strong>, we take IT security issues very<br />

seriously and our ambition is to minimise<br />

<strong>the</strong> risks and <strong>the</strong> effect a disturbance could<br />

have on our business,” says Lars.<br />

Insecure computers<br />

The continuous growth in <strong>the</strong> power of<br />

computers and constant development of<br />

new software has not made computers any<br />

less vulnerable to attack.<br />

New software such as operating systems<br />

and mail programs invariably contain<br />

security flaws. The sheer complexity of<br />

modern computer programs means that<br />

such flaws are often first noticed after <strong>the</strong><br />

product has been on <strong>the</strong> market for some<br />

time.<br />

The latest Microsoft operating system<br />

Windows XP (released on October 25,<br />

2001) is a case in point. It contained a flaw<br />

in <strong>the</strong> universal plug and play system (UPnP)<br />

that Microsoft <strong>the</strong>mselves described as<br />

“critical” and which, if utilised by a hacker,<br />

could allow <strong>the</strong> intruder to run whatever<br />

scripts <strong>the</strong>y chose on <strong>the</strong> host computer.<br />

The flaw was spotted by a third party a<br />

year after <strong>the</strong> product went on sale.<br />

The increasing use of wireless networks<br />

and <strong>the</strong> Internet throws up new and unexpected<br />

security issues. When wireless networks<br />

(called wireless LANs) first became<br />

available, vendors claimed that it would be<br />

hard for <strong>the</strong> would-be hacker to build <strong>the</strong><br />

sort of receiver necessary to listen in on a<br />

network. This claim proved to be unfounded<br />

and ever since, wireless networks have<br />

been widely perceived as a security risk.<br />

Computer security has become synonymous<br />

in <strong>the</strong> public consciousness with<br />

Internet security.<br />

The Internet gives <strong>the</strong> would-be hacker<br />

remote access to millions of potential<br />

targets in an environment tailor-made for<br />

<strong>the</strong> propagation and distribution of computer<br />

viruses.<br />

Despite <strong>the</strong> widespread use of virus<br />

filtering and detection systems and socalled<br />

firewalls (a protective barrier between<br />

your computer and <strong>the</strong> Internet),<br />

viruses still pose a real threat to <strong>the</strong> security<br />

of Internet-enabled computers. At <strong>the</strong><br />

same time, security flaws in widely used<br />

computer programs mean that <strong>the</strong> well-in-


IT Security<br />

9<br />

When <strong>the</strong> System Fails…<br />

What does a company do if one of its core systems crashes?<br />

<strong>GAC</strong>’s Communication Manager, Kris Zawisza, had to handle such a<br />

situation earlier this year when <strong>the</strong> Group’s e-mail hub went down<br />

for <strong>the</strong> count.<br />

formed hacker has a wide range of potential<br />

ways into your computer.<br />

<strong>GAC</strong> has taken <strong>the</strong>se problems on board<br />

and has developed directives to all <strong>GAC</strong><br />

companies on IT security, as a part of its<br />

Group-wide IT guidelines. In addition, <strong>the</strong><br />

Group has documented policies for IT<br />

security, Internet usage, e-mail usage, computer<br />

virus control, backups and system<br />

access control.<br />

Insecure People<br />

It is not just new programs and systems<br />

that are sometimes insecure.<br />

Users and network administrators have<br />

to learn to operate <strong>the</strong>m in a safe way, something<br />

Lars Bergström is all too aware of.<br />

“It is important that <strong>the</strong> users of a system<br />

are properly trained to know how to<br />

use <strong>the</strong> system to get <strong>the</strong> best business<br />

benefits and avoid misuse which may result<br />

in operational disturbances,” he notes. “It is<br />

equally important that all staff are trained<br />

to understand <strong>the</strong> risk involved and what<br />

policies <strong>GAC</strong> has for IT security, so <strong>the</strong>y<br />

fully understand <strong>the</strong> active role <strong>the</strong>y play in<br />

minimising <strong>the</strong> risks.”<br />

Ultimately it is <strong>the</strong> responsibility of<br />

<strong>GAC</strong> people around <strong>the</strong> world to ensure<br />

that <strong>the</strong> Group’s computers – and <strong>the</strong> information<br />

contained in <strong>the</strong>m – are secure.<br />

At <strong>the</strong> beginning of March, <strong>GAC</strong>’s central<br />

communications hub, provided by Cable &<br />

Wireless (C&W) in <strong>the</strong> UK, suffered a totally<br />

unexpected and irreversible database corruption.<br />

The service had been running reliably<br />

for more than ten years, not only as <strong>the</strong> e-<br />

mail hub for <strong>the</strong> entire <strong>GAC</strong> Group, but also<br />

as a gateway for telex, fax, X400 and<br />

Inmarsat messaging.<br />

As a result of <strong>the</strong> failure, some e-mails<br />

bound for addresses with <strong>the</strong> @gulfagencycompany.com<br />

domain were rejected completely,<br />

while o<strong>the</strong>rs arrived at <strong>the</strong>ir destination<br />

only after a delay. Outgoing e-mails<br />

from <strong>GAC</strong> were partially delivered.<br />

Fortunately, all messages sent to local<br />

<strong>GAC</strong> e-mail domains, such as @gacdxb.com,<br />

@gacsin.com, etc. were received normally.<br />

Immediate response<br />

As soon as Kris became aware of <strong>the</strong><br />

problem, he got in touch with C&W to find<br />

out how long <strong>the</strong> problem would last.<br />

Meanwhile, all offices within <strong>the</strong> <strong>GAC</strong> Group<br />

were advised of <strong>the</strong> failure and instructed to<br />

tell <strong>the</strong>ir clients and contacts to use o<strong>the</strong>r<br />

means of communication until fur<strong>the</strong>r notice.<br />

To ensure that <strong>the</strong> message was received<br />

by as many people as possible, a Communications<br />

Newsflash was also sent to approximately<br />

4,000 My<strong>GAC</strong> subscribers. The<br />

My<strong>GAC</strong> administrative system was fortunately<br />

not affected by <strong>the</strong> problem. Regular<br />

updates were released through My<strong>GAC</strong> until<br />

<strong>the</strong> problem was resolved.<br />

Initially it seemed that <strong>the</strong> system would<br />

be restored quickly and, indeed, it did come<br />

back up. But not for long. When it failed for<br />

a second and final time, Kris discussed <strong>the</strong><br />

problem with Group IT Director, Lars Bergström,<br />

and <strong>the</strong>y agreed that <strong>GAC</strong>’s contingency<br />

plan should be activated. Thanks to<br />

this forward planning, <strong>the</strong>y knew what to do.<br />

Contingency Plan<br />

<strong>GAC</strong>’s contingency plan involved rerouting<br />

e-mails through a backup system in Stockholm.<br />

One of Kris’s main tasks at this stage<br />

was to ensure <strong>the</strong>re was enough hardware<br />

on hand to handle <strong>the</strong> e-mail load. Each<br />

<strong>GAC</strong> office had to change <strong>the</strong> routing instructions<br />

on its e-mail server to direct traffic<br />

to Stockholm. When it became clear that<br />

C&W would not be able to restore <strong>the</strong><br />

service, fur<strong>the</strong>r centralised changes were<br />

completed and since <strong>the</strong>n, <strong>the</strong> system has<br />

been stable.<br />

Because <strong>GAC</strong> had a contingency plan in<br />

place, what could have been a disaster was<br />

converted into merely a regrettable inconvenience.<br />

Kris says <strong>the</strong> system failure<br />

showed firstly that <strong>GAC</strong>’s backup plan works<br />

and secondly that <strong>GAC</strong> people know how to<br />

work pull toge<strong>the</strong>r in a crisis.<br />

“Credit goes to many people, too<br />

numerous to mention, throughout <strong>the</strong> <strong>GAC</strong><br />

Group who showed initiative in passing on<br />

instructions and making sure that those who<br />

needed to be informed were. Once again<br />

‘<strong>the</strong> human network’ proved to be <strong>GAC</strong>’s<br />

best asset.”


10 Spam<br />

Spam Spam and<br />

Spam<br />

Spam is on <strong>the</strong> up<br />

Spam is <strong>the</strong> electronic equivalent of <strong>the</strong><br />

junk mail that clutters up our letterboxes.<br />

Adverts and offers, get-rich-quick schemes,<br />

cheap mortgages and pornography sent via<br />

e-mail are all Spam. It is ubiquitous, unavoidable<br />

and extremely irritating. We’d all<br />

like something done about it, but for anybody<br />

hoping for a Spam-free in-tray, <strong>the</strong> outlook<br />

is bleak.<br />

A year ago, Spam e-mails accounted for<br />

a twelfth of mails sent. As such, <strong>the</strong>y were<br />

more a nuisance than a problem. However,<br />

according to British e-mail filtering firm<br />

Messagelabs Software, by November last<br />

year one in three mails were Spam. Messagelabs<br />

predicts that in 2003, more Spam will<br />

be sent than real e-mails.<br />

Spamming corporate mail<br />

systems<br />

Spam is attractive to <strong>the</strong> unscrupulous<br />

marketer because of <strong>the</strong> sheer volume of<br />

potential customers one can reach at negligible<br />

cost via a Spam “mail shot”. If only a<br />

few of <strong>the</strong>m respond <strong>the</strong>n a profit can be<br />

made.<br />

Blame for <strong>the</strong> recent increase in <strong>the</strong> incidence<br />

of Spam can be laid squarely at <strong>the</strong><br />

door of new tools and appliances which<br />

make <strong>the</strong> spammer’s job easier. E-mail appliance<br />

boxes are available today which will<br />

ship millions of e-mails per hour. Until<br />

recently, Spam mail has been most evident<br />

on popular domains such as hotmail.com,<br />

but new tools and <strong>the</strong> falling cost of bandwidth<br />

have meant that corporate e-mail<br />

systems are becoming increasingly vulnerable.<br />

Spammers with only modest ambitions can<br />

now initiate so-called “dictionary” or “direct<br />

harvest” attacks. In this sort of attack, <strong>the</strong><br />

spammer sends out a multitude of e-mails<br />

to <strong>the</strong> corporate e-mail systems where each<br />

individual e-mail is addressed to a common<br />

name, for example John.Smith@bigcompany.com,<br />

to see what sticks.<br />

The vast majority of mails will be to<br />

non-existent employees but <strong>the</strong> spammer<br />

will be able to harvest a significant number<br />

of genuine addresses. These can <strong>the</strong>n be<br />

sold on to o<strong>the</strong>r spammers and, before <strong>the</strong><br />

week is out, <strong>the</strong> addresses in question can<br />

receive hundreds of junk mails.<br />

Combating Spam<br />

<strong>GAC</strong> has anti-spamming software (as well<br />

as anti-virus software) in place for mail<br />

coming into @gacworld.com, but even <strong>the</strong><br />

best software cannot catch all Spam.<br />

Two strategies can be employed when<br />

trying to catch a spammer.<br />

Firstly, you can filter your incoming mail,<br />

looking for tell-tale signs of Spam in message<br />

titles (for example a series of exclamation<br />

marks, as in “Great Offer!!!!”). One<br />

problem with this approach is that all selfrespecting<br />

spammers have stopped sending<br />

out mails with give-away titles. The o<strong>the</strong>r<br />

problem is that your mum’s message, “Visit<br />

at Christmas!!!!” will be filtered out along<br />

with <strong>the</strong> Spam.<br />

The alternative is to subscribe to e-mail<br />

monitoring services which are able to provide<br />

regular updates about <strong>the</strong> domains<br />

Spam is being sent from. Such services operate<br />

a vast number of dummy e-mail addresses.<br />

These mail addresses receive Spam,<br />

revealing to <strong>the</strong> monitoring company <strong>the</strong><br />

domain from which <strong>the</strong> Spam is being sent.<br />

The monitoring firm can <strong>the</strong>n provide <strong>the</strong>ir<br />

client with a regularly updated list of <strong>the</strong>se<br />

suspect domains, enabling <strong>the</strong> client to<br />

block mail from <strong>the</strong>m. Unfortunately, Spammers<br />

can quickly change <strong>the</strong> domain from<br />

which <strong>the</strong>y send mail. Some is bound to get<br />

through.<br />

Legislating against Spam<br />

Legislators have taken note of <strong>the</strong> increasing<br />

volumes of Spam being sent, and have<br />

tried to do <strong>the</strong>ir bit to stop it.<br />

Great Britain and Denmark are two<br />

countries that have recently changed <strong>the</strong>ir<br />

marketing laws to make it illegal to send<br />

marketing mails without first obtaining <strong>the</strong><br />

recipient’s consent. In Australia, <strong>the</strong> Communications<br />

Minister has announced government<br />

plans to ban Spam by <strong>the</strong> end of this<br />

year. And US lawmakers have introduced a<br />

Bill to provide stiff penalties for e-mail<br />

marketers who disguise <strong>the</strong>ir identities or<br />

use o<strong>the</strong>r deceptions to get into your in-tray.<br />

However, such solutions are of little use<br />

when <strong>the</strong>y only apply to a few countries.<br />

Without an effective tool to beat Spam,<br />

<strong>the</strong> risk is that in-trays will eventually<br />

become so choked that people will turn to<br />

o<strong>the</strong>r ways of communicating. While <strong>the</strong>re<br />

is no sign of this happening at present, <strong>the</strong><br />

chances of such an outcome are increasing<br />

in step with volume of Spam on our screens.<br />

Editor’s note: The Spam problem has sparked<br />

America’s biggest Internet e-mail provider, AOL, to<br />

launch legal action against Spammers. While it may<br />

not reduce <strong>the</strong> amount of Spam in your in-tray, it is<br />

clear evidence that <strong>the</strong> issue is being taken seriously<br />

by those with <strong>the</strong> power to do something about it.


Wherever You Go<br />

11<br />

Wherever You Go:<br />

<strong>GAC</strong> IT Professionals<br />

Around <strong>the</strong> <strong>World</strong><br />

The <strong>GAC</strong> Group’s IT team has<br />

<strong>the</strong> dual task of developing<br />

and implementing systems<br />

that meet <strong>the</strong> needs of both<br />

<strong>the</strong> global organisation and its<br />

large, varied customer base.<br />

Centres of expertise for different technical<br />

areas and applications have been established<br />

throughout <strong>the</strong> Group. These include<br />

specialised teams for <strong>the</strong> Dolphin<br />

financial accounting system, Group Communications<br />

and <strong>GAC</strong>’s anti-virus function.<br />

Group IT Director, Lars Bergström, says<br />

that having such a wealth of IT expertise to<br />

draw upon throughout <strong>the</strong> <strong>GAC</strong> <strong>World</strong> is a<br />

great strength.<br />

Here, we put <strong>the</strong> spotlight on four of <strong>the</strong><br />

professionals who form that strength…<br />

Middle East<br />

When Gopal Krishnan joined <strong>GAC</strong> Oman in<br />

December 1988, his first role with <strong>the</strong><br />

company was totally unrelated to IT. He<br />

started off as a Credit Controller in <strong>the</strong><br />

Finance Department. However, a few<br />

months later, his enthusiasm and interest<br />

in IT was noted and he was assigned to<br />

oversee <strong>the</strong> implementation of <strong>the</strong> new<br />

Cargo Gulf system. For <strong>the</strong> next eight<br />

years, he worked both in Credit Control and<br />

on IT projects.<br />

In 1997, Gopal was appointed IT Manager for<br />

<strong>GAC</strong> Oman. In that capacity, he has played a key<br />

role in <strong>the</strong> design and development of ‘Target’,<br />

<strong>the</strong> Sales Support software program which is<br />

currently being implemented throughout <strong>the</strong> <strong>GAC</strong><br />

organisation. He is also responsible for<br />

implementing <strong>GAC</strong> Freight, <strong>GAC</strong>’s Logistics software<br />

system, throughout <strong>the</strong> Group.<br />

Indian<br />

Subcontinent<br />

Hamid Zaidi arrived<br />

at <strong>GAC</strong> Pakistan in<br />

1996 with ten years<br />

of international IT<br />

experience and a<br />

Masters Degree in<br />

Computer Science<br />

from <strong>the</strong> US.<br />

As <strong>GAC</strong> Pakistan’s Group IT Manager, Hamid is<br />

responsible for IT operations at <strong>GAC</strong> Shipping<br />

Pakistan, <strong>GAC</strong> Logistics Pakistan, United<br />

Marine Agencies Pakistan, Interocean Cargo<br />

Services and <strong>the</strong> Al-Hamd International<br />

Container Terminal .<br />

Since <strong>the</strong> late 1990s, <strong>GAC</strong> Pakistan’s IT<br />

system has evolved from a three-location, 15-<br />

user stand-alone setup into today’s extensive<br />

network that is unrivalled in <strong>the</strong> Pakistan<br />

shipping industry.<br />

Africa<br />

Paul Ajiborisha first<br />

started working with<br />

<strong>GAC</strong> Nigeria as a<br />

contractor in 1995. He<br />

became a full-time<br />

member of <strong>the</strong> <strong>GAC</strong> IT<br />

team in June 1996.<br />

When Paul came on board, HF (SSB Radio), VHF<br />

radio and telex were <strong>the</strong> only reliable means of<br />

communication within Nigeria.<br />

Since <strong>the</strong>n, <strong>GAC</strong> Nigeria has invested heavily<br />

in new communication systems and continues to<br />

do so to enhance its operations.<br />

All <strong>GAC</strong> Nigeria offices are now linked<br />

toge<strong>the</strong>r, ensuring that <strong>the</strong> flow of information is<br />

virtually “real time”.<br />

Europe<br />

For <strong>the</strong> past 12<br />

years, Ali<br />

Moussazadeh has<br />

provided vital IT<br />

support for <strong>the</strong><br />

Group’s UK-based<br />

operations.<br />

Ali’s responsibilities <strong>the</strong> cover technical,<br />

programming and communication issues<br />

for <strong>GAC</strong>’s Sales, Bunker and Hub centres<br />

in London, as well as essential assistance<br />

for his colleagues coordinating operations<br />

in Iran from <strong>the</strong> Crawley office, where he<br />

is based.


12 The Genesis of <strong>the</strong> Internet<br />

The Genesis of <strong>the</strong> Internet<br />

1978 – 2002<br />

1978 1989 1990 1993 1994 1995 1996<br />

On March 26,<br />

Queen Elizabeth II<br />

sends out an e-<br />

mail from <strong>the</strong><br />

Royal Signals and<br />

Radar<br />

Establishment<br />

(RSRE) in Malvern.<br />

The <strong>GAC</strong> Group<br />

starts using<br />

e-mail.<br />

<strong>GAC</strong> introduces its<br />

own tailor-made,<br />

standardised<br />

shipping computer<br />

systems.<br />

Standardised <strong>GAC</strong><br />

Logistics systems<br />

follow in 1992.<br />

The United<br />

Nations comes<br />

online.<br />

<strong>GAC</strong> Marine sets<br />

up its own specialised<br />

applications.<br />

Shopping malls<br />

arrive on <strong>the</strong><br />

Internet.<br />

The first banner<br />

ads appear in<br />

October, on<br />

www.hotwired.com<br />

New arrivals online<br />

during 1995<br />

include The<br />

Vatican and <strong>the</strong><br />

Canadian Government.<br />

1995 also sees <strong>the</strong><br />

launch of <strong>the</strong> first<br />

<strong>GAC</strong> website.<br />

On January 17,<br />

Malaysian<br />

Prime Minister<br />

Mahathir<br />

Mohamad,<br />

PLO Leader Yasser<br />

Arafat and<br />

Philippine<br />

President Fidel<br />

Ramos “meet” for<br />

ten minutes in an<br />

online chat<br />

session.<br />

The Internet has brought<br />

about new ways of working,<br />

new ways of selling goods<br />

and services and new ways<br />

of accessing information.<br />

What is more, <strong>the</strong> Internet is<br />

a uniquely “democratic”<br />

medium – surprising when<br />

one considers that it is a<br />

product of <strong>the</strong> Cold War.<br />

A unique medium<br />

The Internet is essentially a lot of computers<br />

joined toge<strong>the</strong>r in a network. When<br />

so linked, <strong>the</strong>se computers are able to exchange<br />

information with each o<strong>the</strong>r. Thus,<br />

on <strong>the</strong> Internet, every user can be both a<br />

sender and a receiver of information.<br />

It is this ability to exchange information<br />

that distinguishes <strong>the</strong> Internet from traditional<br />

broadcast mass media such as TV<br />

and radio where <strong>the</strong>re is only one sender of<br />

information. That unique feature can be<br />

captured in a single word: interactivity.<br />

Unusual features<br />

The Internet has several unusual features<br />

when compared with o<strong>the</strong>r man-made networks.<br />

Information travelling on <strong>the</strong> Internet<br />

does not take <strong>the</strong> shortest or most efficient<br />

route between two points. Whenever you<br />

send information over <strong>the</strong> Internet, it does<br />

not travel as a discrete compact entity but<br />

is broken up into “packets” (small nuggets<br />

of information), each of which takes its<br />

own individual and quite different route to<br />

its destination.<br />

Fur<strong>the</strong>rmore, <strong>the</strong> Internet is unusual in<br />

having no central controlling body. These<br />

features of <strong>the</strong> Internet’s basic design were<br />

developed as a way of securing <strong>the</strong> transfer<br />

of information in <strong>the</strong> event of a nuclear war.<br />

Cold War thinking<br />

In <strong>the</strong> late 1960s, <strong>the</strong> RAND Corporation,<br />

America’s foremost Cold War think-tank,<br />

was concerned that <strong>the</strong> communication<br />

systems which bound <strong>the</strong> nation toge<strong>the</strong>r<br />

were vulnerable to attack. Both TV and<br />

telephone systems could be wiped out by a<br />

few well-placed bombs. Destroying key<br />

telephone exchanges or television transmitters<br />

would cripple <strong>the</strong>se systems and, without<br />

<strong>the</strong>m, it would be difficult to<br />

coordinate <strong>the</strong> defence of <strong>the</strong> nation.<br />

In order to overcome this problem a new<br />

communication network was developed.<br />

ARPANET was commissioned by <strong>the</strong><br />

Pentagon in 1969 to allow researchers to<br />

share <strong>the</strong> precious processor power of <strong>the</strong>


The Genesis of <strong>the</strong> Internet<br />

13<br />

1996 1997 1998 1999 2000 2001 2002<br />

<strong>GAC</strong>’s Ship Supply<br />

Services interactive<br />

online application<br />

is launched.<br />

<strong>GAC</strong> introduces its<br />

Inventory-Online<br />

service.<br />

Electronic<br />

postal stamps<br />

become a reality,<br />

with <strong>the</strong> US Postal<br />

System allowing<br />

stamps to be<br />

purchased and<br />

downloaded for<br />

printing from <strong>the</strong><br />

Web.<br />

In April, a forged<br />

web page made<br />

to look like a<br />

Bloomberg<br />

financial news<br />

story raises <strong>the</strong><br />

share price of a<br />

small technology<br />

company by 31%.<br />

The domain<br />

“business.com” is<br />

sold for US$ 7.5<br />

million in 1999. It<br />

had been<br />

purchased for US$<br />

150,000.<br />

On January 1,<br />

<strong>the</strong> US timekeeper<br />

and some o<strong>the</strong>r<br />

time services<br />

around <strong>the</strong> world<br />

report <strong>the</strong> new<br />

year as 19100.<br />

<strong>GAC</strong> Accounts<br />

come online.<br />

<strong>GAC</strong> Track comes<br />

online.<br />

<strong>GAC</strong>’s<br />

customisable, subscriber-based<br />

site<br />

www.mygac.com is<br />

launched followed<br />

by <strong>GAC</strong>’s Hot Port<br />

News daily<br />

e-mail bulletin.<br />

<strong>GAC</strong> sends out<br />

<strong>the</strong> first edition of<br />

its monthly <strong>GAC</strong><br />

E-News e-mail<br />

bulletin in July.<br />

supercomputers of <strong>the</strong> day. When designing<br />

<strong>the</strong> telephone network, <strong>the</strong> engineers<br />

responsible had tried to make <strong>the</strong> system as<br />

efficient as possible. Thus, messages took<br />

<strong>the</strong> shortest route between two points.<br />

ARPANET took ano<strong>the</strong>r principle as its<br />

point of departure – robustness. A message,<br />

once sent, should be able to reach its destination<br />

even if <strong>the</strong> network it was sent on had<br />

been blown full of holes by a nuclear<br />

attack.<br />

Thus, for <strong>the</strong> Internet, <strong>the</strong>re is no central<br />

agency responsible for maintaining <strong>the</strong><br />

network. Nor is information sent along predetermined<br />

routes which, in <strong>the</strong> event of<br />

part of <strong>the</strong> route being destroyed, would<br />

stop <strong>the</strong> message reaching its destination.<br />

Packets of Internet information travel one<br />

step at a time in <strong>the</strong> general direction of<br />

<strong>the</strong>ir final destination.<br />

ARPANET to Internet<br />

Within two years of its start-up, <strong>the</strong> main<br />

traffic on ARPANET was not long-distance<br />

computing but electronic post – e-mail. Expanding<br />

ARPANET was easy because, unlike<br />

conventional networks, computers did<br />

not have to be of <strong>the</strong> same type to join it. It<br />

was sufficient that <strong>the</strong>y talked <strong>the</strong> “packet<br />

switching” language of <strong>the</strong> day, <strong>the</strong> TCP/IP<br />

protocol.<br />

It was out of ARPANET that <strong>the</strong> Internet<br />

we know today was born.<br />

O<strong>the</strong>r networks used <strong>the</strong> TCP/IP protocol<br />

to connect to ARPANET from <strong>the</strong> late<br />

1970s and, eventually, ARPANET was swallowed<br />

up by <strong>the</strong> child it created.<br />

Democratic medium<br />

The lack of a central controlling body on <strong>the</strong><br />

Internet means that anybody can connect<br />

<strong>the</strong>ir computer to it and begin exchanging<br />

information with o<strong>the</strong>r users. Had <strong>the</strong> Internet<br />

been devised with a central body determining<br />

<strong>the</strong> route information took across<br />

<strong>the</strong> network, it would have been far easier<br />

to control how information was exchanged<br />

and by whom.<br />

Thus, a democratic and decentralised medium<br />

was born, created as a by-product of<br />

Cold War fears of nuclear war.<br />

Interestingly, <strong>the</strong> Internet became a<br />

dominant news and information medium<br />

during <strong>the</strong> recent conflict in Iraq. People<br />

from all over <strong>the</strong> world clicked into a variety<br />

of news sources on <strong>the</strong> net to find out what<br />

was happening. While not supplanting <strong>the</strong><br />

traditional news media, <strong>the</strong> Internet demonstrated<br />

its capacity to fulfil <strong>the</strong> information<br />

needs of people across <strong>the</strong> world’s<br />

time zones.


14 Introducing<br />

Gamila Samarasinghe<br />

– <strong>GAC</strong> Sri Lanka’s IT Manager<br />

Gamila Samarasinghe in brief<br />

Born<br />

1968 in Colombo, Sri Lanka<br />

Joined <strong>GAC</strong> October 1995<br />

Post held<br />

Family<br />

Hobbies<br />

IT Manager<br />

Married to Induka<br />

Graphic design, computer<br />

animation, photography<br />

I was born in Colombo, <strong>the</strong> commercial<br />

capital of Sri Lanka. My childhood was filled<br />

with fairytale characters, heroes and<br />

heroines pasted around <strong>the</strong> walls of our<br />

family home. These were <strong>the</strong> creations of<br />

my fa<strong>the</strong>r, a painter and professional cartoonist.<br />

After completing my secondary education,<br />

I was drawn by <strong>the</strong> world of computers<br />

as I was fascinated by <strong>the</strong>ir potential<br />

for doing amazing things. My eagerness to<br />

learn <strong>the</strong> intricacies of this sphere we now<br />

call Information Technology led me to take<br />

several IT courses and professional exams.<br />

I started my first job in 1994, as an assistant<br />

in <strong>the</strong> documentation section of Sri<br />

Lankan shipping company, McLarens. I felt<br />

confident that <strong>the</strong> insights offered into <strong>the</strong><br />

business processes of <strong>the</strong> shipping world<br />

would stand me in good stead for my<br />

future career.<br />

Sure enough, as my first year with<br />

McLarens was drawing to an end, luck came<br />

my way when I heard of an opening for a<br />

systems administrator at a company called<br />

<strong>GAC</strong> Sri Lanka, which was formed as a joint<br />

venture with McLarens.<br />

Then, <strong>GAC</strong> Sri Lanka was still in its first<br />

phase of growth and had just three computers<br />

and less than ten employees. At first, it<br />

was my task to help my new colleagues get<br />

familiar with working with computers. I also<br />

wrote a few computer programs to automate<br />

<strong>the</strong> business process.<br />

Those first few years proved to be a<br />

terrific and valuable learning experience,<br />

both for me and my colleagues at <strong>GAC</strong>.<br />

With <strong>the</strong> passage of time, <strong>the</strong> company<br />

steadily grew, and more and more business<br />

units were added. Naturally, this kept me<br />

extremely busy, improving <strong>the</strong> company’s<br />

IT infrastructure, automation and communication<br />

systems. The help and support of<br />

my husband, Induka, <strong>the</strong> IT Manager for<br />

<strong>the</strong> McLarens Group of Companies, was<br />

especially valuable during that period.<br />

My job at <strong>GAC</strong> Sri Lanka has never been<br />

routine – sometimes it involves implementing<br />

new solutions, whilst at o<strong>the</strong>r times I<br />

find myself “trouble shooting” or trying to<br />

resolve user demands and problems. I have<br />

also played a key role in <strong>the</strong> design and<br />

launch of <strong>GAC</strong> Sri Lanka’s local website.<br />

Today, <strong>GAC</strong> Sri Lanka has 60 computers<br />

and four servers – a figure that looks set to


Introducing / My Town<br />

15<br />

My Town<br />

As a native of Sri Lanka’s commercial capital, Gamila has<br />

plenty of tips for visitors to Colombo and fur<strong>the</strong>r afield.<br />

increase fur<strong>the</strong>r. To meet <strong>the</strong> additional<br />

demands this brings, I have recently been<br />

joined by an assistant in <strong>the</strong> IT department.<br />

The constantly changing nature of Information<br />

Technology means that I have to<br />

keep myself up-to-date with <strong>the</strong> latest developments,<br />

which I do by regularly attending<br />

professional IT courses.<br />

Away from work, I consider myself very<br />

lucky to live in Sri Lanka, which is also<br />

known as <strong>the</strong> Paradise Isle. It is a land<br />

packed with exciting sights and fascinating<br />

places to explore. Induka and I take every<br />

opportunity to explore <strong>the</strong> rich diversity of<br />

our homeland in <strong>the</strong> company of good<br />

friends. These trips have taken us to <strong>the</strong><br />

four corners of <strong>the</strong> island, including Jaffna,<br />

Sri Lanka’s nor<strong>the</strong>rn-most city which was<br />

previously not accessible due to <strong>the</strong> civil<br />

war of <strong>the</strong> past two decades. That particular<br />

trip was quite an experience, with a<br />

distinct element of risk involved, thanks to<br />

a variety hazards and “unknowns” like uncleared<br />

landmines.<br />

It is during <strong>the</strong>se trips that I have started<br />

trying my hand at photography in a bid to<br />

try to capture some of <strong>the</strong> splendour of Sri<br />

Lanka.<br />

Something else I like to do with my<br />

spare time again involves computers but<br />

also pays some homage to my fa<strong>the</strong>r’s creations.<br />

I love to experiment with graphics<br />

and animation and it is my dream to use a<br />

computer and its tools to create something<br />

like what my fa<strong>the</strong>r creates with paintbrushes<br />

and paper.<br />

In closing, I would like to extend a wish<br />

for prosperity and a lasting peace in my<br />

beloved land – Sri Lanka.<br />

Best way to get around<br />

Colombo’s metred taxis have yellow tops<br />

and red-on-white number-plates. Make sure<br />

<strong>the</strong> driver completely understands where<br />

you want to go.<br />

If you want to beat <strong>the</strong> traffic, catch a<br />

three-wheeler. They’re quick, but you have<br />

to bargain hard!<br />

Favourite place to eat<br />

There are plenty of roadside eating places<br />

throughout <strong>the</strong> city, in addition to plush<br />

restaurants serving a wide range of cuisines<br />

– from Continental to Oriental.<br />

My personal favorite is <strong>the</strong> “Gallery Café”,<br />

where you can enjoy your dinner under <strong>the</strong><br />

stars.<br />

Best Hotels<br />

Colombo has a number of five-star hotels.<br />

However, my pick would be <strong>the</strong> Kandalama<br />

Hotel in Dambulla. This hotel in within <strong>the</strong><br />

jungle, and <strong>the</strong> view from <strong>the</strong> swimming<br />

pool is like a painting!<br />

Shopper’s Delight<br />

The city is a veritable shopper’s paradise,<br />

where you can enjoy <strong>the</strong> noise and bustle of<br />

a colourful street bazaar – Colombo <strong>World</strong><br />

Market – or step into <strong>the</strong> elegant atmosphere<br />

of a fashionable boutique in one of<br />

Colombo’s newest shopping malls.<br />

Where to Go<br />

Yearning for a sandy beach and <strong>the</strong> splash<br />

of <strong>the</strong> waves but too lazy to drive too far<br />

out? Then head for Mount Lavinia, just<br />

eight miles from Colombo, where <strong>the</strong> sand<br />

is soft and <strong>the</strong> sea calm and clear.<br />

City Sights<br />

At Galle Face Green, in <strong>the</strong> centre of<br />

Colombo, you can experience political discussions,<br />

vendors and kite flyers. Spending a<br />

few hours <strong>the</strong>re will give you <strong>the</strong> opportunity<br />

to see <strong>the</strong> many faces of <strong>the</strong> city. You<br />

can end <strong>the</strong> day by watching a performance<br />

of dancing elephants in <strong>the</strong> Dehiwala Zoo,<br />

one of <strong>the</strong> finest in Asia.<br />

Out of Town<br />

If you have more time, head south about<br />

190 miles to Ruhuna Park at Yala, Sri Lanka’s<br />

most popular wild safari destination. What<br />

makes this park unique is <strong>the</strong> huge variety<br />

of habitats it contains, including dense<br />

jungles, lagoons, a beautiful sea front and<br />

rocky outcrops.<br />

Alternatively, drive towards Kandy, and<br />

on your way visit <strong>the</strong> Pinnawela Elephant<br />

Orphanage, where you can mingle with<br />

about 70 elephants or watch <strong>the</strong>m taking a<br />

bath in <strong>the</strong> nearby river.<br />

Or visit <strong>the</strong> Sigirya Rock Fortress, <strong>the</strong><br />

citadel of King Kassapa, where you can<br />

climb <strong>the</strong> rock to see <strong>the</strong> renowned Sigirya<br />

Frescoes.<br />

Don’t miss<br />

A genuine Sri Lankan cup of tea. It is not just<br />

<strong>the</strong> tea that invigorates – <strong>the</strong> beautiful<br />

rolling green hills and valleys where <strong>the</strong> tea<br />

grows, studded with silvery streams and<br />

waterfalls, captivate <strong>the</strong> eye and <strong>the</strong> mind.<br />

Best Avoided<br />

Colombo mosquitoes – make sure you are<br />

well stocked with repellant!<br />

Best Thing About The Place<br />

Colombo is a fascinating city, not only<br />

because of its comfortable mix of East and<br />

West, but also its easy blend of past and<br />

present.


16 <strong>GAC</strong> Wrap<br />

Regional Managers<br />

to Drive Logistics<br />

Growth<br />

Marine Logistics Service Launched<br />

<strong>GAC</strong> has combined its extensive experience in<br />

shipping, logistics and marine services to offer ship<br />

owners and spares suppliers an integrated door-tovessel<br />

solution.<br />

A new <strong>GAC</strong> company, <strong>GAC</strong> Marine Logistics<br />

Inc., will provide global supply chain management<br />

services to meet <strong>the</strong> demand for fast<br />

and efficient delivery of ship spares and<br />

marine parts.<br />

The new company and its services will be<br />

profiled in <strong>the</strong> next edition of <strong>GAC</strong> <strong>World</strong>.<br />

“Since <strong>the</strong> start of this year, all <strong>GAC</strong> Logistics<br />

offices around <strong>the</strong> world have been able to<br />

file manifests electronically and get <strong>the</strong><br />

green light from US Customs in a matter of<br />

minutes,” says Bill Hill, Group Vice President,<br />

Logistics Services.<br />

“Our customers benefit from <strong>GAC</strong>’s<br />

understanding of <strong>the</strong> process as many in our<br />

industry, including some of <strong>the</strong> shipping<br />

lines, are unclear about what is required.<br />

<strong>GAC</strong> can allay this concern for <strong>the</strong> exporter.”<br />

Benefits<br />

Direct AMS filing offers significant benefits<br />

to customers. It provides tighter security<br />

throughout a customer’s supply chain, and<br />

because <strong>the</strong> manifest data is checked<br />

thoroughly before cargoes are loaded, it<br />

reduces <strong>the</strong> risk of attracting fines or having<br />

<strong>the</strong> manifest rejected. Accurate filing of<br />

manifest information also ensures timely<br />

Enquiries can be addressed to:<br />

<strong>GAC</strong> MARINE LOGISTICS INC.<br />

<strong>GAC</strong> Distribution Centre, Jebel Ali,<br />

P O Box 17041,<br />

Dubai, United Arab Emirates<br />

Tel: +971-4-881 8090, 805 9450 (24 hours)<br />

Fax: +971-4-881 1177<br />

E-mail: gml@gacworld.com<br />

Cables: ‘Confidence’, Dubai<br />

Logistics Lifts Service with AMS Compliance<br />

<strong>GAC</strong> Logistics has successfully integrated <strong>the</strong> US<br />

Customs’ Automated Manifest System (AMS)<br />

requirements into its supply chain management<br />

procedures.<br />

loading of cargo at origin and avoids delays<br />

on arrival at US ports.<br />

“To date, our customers have been very<br />

supportive and have provided accurate<br />

manifest details well in advance of <strong>the</strong><br />

planned sailing date. Once we have <strong>the</strong><br />

information, our customers can be assured<br />

we will take care of <strong>the</strong> rest,” adds Bill Hill.<br />

Extensive testing and evaluation of <strong>the</strong><br />

AMS procedures have been carried out over<br />

<strong>the</strong> past few months along with training for<br />

<strong>GAC</strong> Logistics’ staff.<br />

The AMS certification is part of <strong>GAC</strong><br />

Logistics’ ongoing plans to comply with all<br />

new security measures introduced by <strong>the</strong> US<br />

since <strong>the</strong> terrorist attacks in September<br />

2001. O<strong>the</strong>r initiatives include membership<br />

application for <strong>the</strong> Customs-Trade Partnership<br />

Against Terrorism (C-TPAT) programme,<br />

and a review of <strong>GAC</strong> Logistics’ internal<br />

documentation, operational procedures and<br />

guidelines.<br />

Gunnar Lundgren<br />

– Regional Logistics Manager: Europe,<br />

Mediterranean & Africa<br />

Gunnar was appointed<br />

in April and is based in<br />

Bahrain where he is responsible<br />

for driving<br />

<strong>GAC</strong>’s logistics business<br />

in <strong>the</strong> Europe,<br />

Mediterranean & Africa<br />

region, including developing<br />

and implementing<br />

regional sales strategies, reviewing<br />

service standards and building relations with<br />

key customers and partners.<br />

Gunnar has more than 25 years of freight<br />

forwarding experience in <strong>the</strong> international<br />

logistics arena. Prior to his new appointment,<br />

he had been <strong>the</strong> Product Manager for <strong>GAC</strong>’s<br />

airfreight service, AirGulf Express, since 1995.<br />

Mikael Jinglöv<br />

– Regional Development Manager, 3PL,<br />

Asia Pacific & Indian Subcontinent<br />

Mikael’s appointment<br />

puts him in charge of<br />

Third Party Logistics in<br />

Asia and <strong>the</strong> Indian<br />

Subcontinent .<br />

Based in Malaysia,<br />

Mikael is responsible<br />

for charting and implementing<br />

long-term strategic<br />

plans, as well as developing new supply<br />

chain products and services. He reports to<br />

Christer Sjödoff, Regional Director, <strong>GAC</strong><br />

Asia Pacific and <strong>the</strong> Indian Subcontinent.<br />

Mikael’s appointment is part of <strong>GAC</strong> Logistics’<br />

on-going plan to dedicate more<br />

management resources to identify new<br />

markets and expand existing ones.<br />

Prior to his new appointment, Mikael was<br />

General Manager of <strong>GAC</strong> Logistics Inc. in<br />

<strong>the</strong> Philippines.<br />

Joiner<br />

Maloy Kr. Dutta<br />

Born in Murshidabad,<br />

West Bengal, India, in<br />

1966, Maloy joined<br />

<strong>GAC</strong> Calcutta in April<br />

2003 as Branch Manager.


<strong>GAC</strong> Wrap<br />

17<br />

Distribution Centre Marks<br />

10th Anniversary<br />

with Record<br />

<strong>GAC</strong>’s flagship Distribution Centre in Jebel Ali, Dubai,<br />

has celebrated 10 successful years of operation with a<br />

record throughput of 3,000 TEUs in March - <strong>the</strong><br />

highest volume attained since <strong>the</strong> Centre opened.<br />

What started out as an 8,000m 2 storage<br />

space has expanded six-fold to become a<br />

50,000m 2 state-of-<strong>the</strong>-art facility today,<br />

housing <strong>the</strong> inventories of more than 60<br />

major corporations from such diverse sectors<br />

as retail, FMCG (Fast Moving Consumer<br />

Goods), automotive and frozen food.<br />

It now has more than 55,000 pallet positions,<br />

108 loading bays and a 300-strong<br />

workforce offering end-to-end supply chain<br />

management solutions, including inbound<br />

logistics, warehousing, retail distribution<br />

and value added services.<br />

“Our 10th anniversary offers a unique<br />

opportunity to reflect on many past achievements,”<br />

says Dag Bore, General Manager,<br />

Logistics Division, <strong>GAC</strong> Dubai. “It also challenges<br />

us to look ahead and create a vision<br />

for continuing success in <strong>the</strong> future.”<br />

Breaking New Ground<br />

As <strong>the</strong> first independent distribution centre<br />

in <strong>the</strong> region, <strong>the</strong> <strong>GAC</strong> facility has pioneered<br />

a number of developments in <strong>the</strong><br />

regional logistics industry.<br />

One significant milestone was <strong>the</strong> development<br />

of its warehouse management<br />

system.<br />

The Centre’s success also supported <strong>the</strong><br />

development of <strong>GAC</strong>’s pan-Gulf road transport<br />

network, which now handles about<br />

200 trucking assignments per month. <strong>GAC</strong>’s<br />

truck fleet includes temperature-controlled<br />

and dual compartment vehicles for<br />

transporting <strong>the</strong> widest possible range of<br />

goods.<br />

The past decade has also seen <strong>the</strong><br />

Centre’s customer base expand from specialising<br />

in <strong>the</strong> FMCG sector to include <strong>the</strong><br />

handling of perishable food products, hightech<br />

spare parts and hanging garments.<br />

It now manages an increasing number of<br />

blue-chip accounts across a broad range of<br />

industries.<br />

Staying Ahead<br />

Dag Bore says <strong>the</strong> Centre’s success has<br />

required vision, careful business planning<br />

10 years ago<br />

and research. He sees fur<strong>the</strong>r developments<br />

arising out of <strong>the</strong> Group’s new business<br />

plan, Vision X – Global Reach, which sets<br />

<strong>the</strong> framework for extending <strong>the</strong> Group’s<br />

global presence while integrating and diversifying<br />

its range of services.<br />

“The facility has undergone many major<br />

structural developments over <strong>the</strong> years and<br />

<strong>the</strong>y are still happening. By <strong>the</strong> end of 2003,<br />

we will increase our capacity by ano<strong>the</strong>r<br />

20 per cent.<br />

“We’re also looking to introduce more<br />

specialised supply chain and value-added<br />

solutions and to expand our logistics consultancy<br />

services,” he says.<br />

Back in 1993, <strong>the</strong> <strong>the</strong>n Managing Director of <strong>GAC</strong> Dubai, Rolf Murchardt, had <strong>the</strong> task<br />

of bringing <strong>GAC</strong>’s newest facility on line. He recalls <strong>the</strong> many discussions and deadline<br />

challenges that were overcome to get <strong>the</strong> Centre’s doors open.<br />

The <strong>the</strong>n chairman of <strong>the</strong> Jebel Ali Free Trade Zone, Sheikh Sultan bin Sulayem, suggested<br />

that Rolf’s plan to open <strong>the</strong> centre in January 1993 was unreachable. But Rolf<br />

had <strong>the</strong> last laugh.<br />

“I called His Highness in <strong>the</strong> first week of January and asked if he would be willing<br />

to come out and cut <strong>the</strong> ribbon and I’ll never forget his face when he arrived with his<br />

retinue and a truck drove out of one of <strong>the</strong> five huge gates.<br />

“On that truck was a pallet dressed in red velvet and on <strong>the</strong> velvet was a red cushion<br />

– and on <strong>the</strong> cushion was a pair of gold scissors to cut <strong>the</strong> red ribbon surrounding <strong>the</strong><br />

complex.<br />

“He looked at me and remarked that <strong>the</strong>re were no photographers present at which<br />

point I pressed a remote control I had in my pocket and ano<strong>the</strong>r gate opened in front<br />

of us and <strong>the</strong>re stood about twenty photographers waiting to record <strong>the</strong> event.<br />

“We walked in and everything was neat and clean and <strong>the</strong>re were racks of pallets<br />

all stacked up. We were definitely open for business.”


18 <strong>GAC</strong> Wrap<br />

Logistics Expansion in South Africa<br />

<strong>GAC</strong> Logistics has established<br />

three new offices in South<br />

Africa as part of <strong>the</strong> Group’s<br />

global-reach strategy to<br />

provide logistics solutions<br />

wherever its customers go.<br />

The offices, in Cape Town,<br />

Johannesburg, and Durban,<br />

provide a full range of freight<br />

forwarding and warehousing<br />

services.<br />

Setting up logistics operations in South Africa<br />

is a natural progression for <strong>the</strong> company, says<br />

Bill Hill, Group Vice President, Logistics<br />

Division.<br />

“<strong>GAC</strong> has been offering shipping agency<br />

services in South African markets since<br />

1998,” he says. “The decision to extend our<br />

logistics operations here will streng<strong>the</strong>n our<br />

ability to create a ‘one world-one partner’<br />

value proposition for our customers.”<br />

The new offices aim to harness <strong>the</strong> growing<br />

demand for integrated and customised<br />

solutions in South Africa, says Vivian Wright,<br />

General Manager, <strong>GAC</strong> Logistics in South<br />

Africa.<br />

”We are seeing a trend where customers<br />

are becoming more global, resulting in an increase<br />

in <strong>the</strong> scale and complexity of <strong>the</strong>ir<br />

logistics requirements, which <strong>the</strong>y prefer to<br />

outsource.”<br />

South Africa is a key economic driver for <strong>the</strong><br />

whole of Africa, contributing close to a<br />

quarter of <strong>the</strong> continent’s GDP. It is a strong<br />

manufacturing and distribution base for food<br />

and beverages, tobacco, furniture, textiles,<br />

lea<strong>the</strong>r, and electrical goods.<br />

Vivian says her immediate priorities are to<br />

promote <strong>the</strong> <strong>GAC</strong> Logistics brand and <strong>the</strong><br />

Division’s capabilities as a global solution<br />

provider, drawing on <strong>the</strong> global purchasing<br />

power of <strong>GAC</strong>’s international network to<br />

offer more competitive rates.<br />

Top The <strong>GAC</strong> Logistics team in South Africa<br />

(left to right): Sipho Makhomboti, Indrin Moodley,<br />

Lynette Agrella, Paulus Mabotha, Vivian Wright,<br />

Marilyn Marks, Shirley Cooper, Tanya Van Enter,<br />

Lizaan Jansen Van Rensburg.<br />

Right Vivian Wright, General Manager of<br />

<strong>GAC</strong> Logistics in South Africa.<br />

<strong>GAC</strong> Appointed For Iraq Aid Operation<br />

The United Nations’ <strong>World</strong> Food Programme (WFP) has<br />

appointed <strong>GAC</strong> to handle aid shipments for Iraq in what<br />

looks set to be <strong>the</strong> largest humanitarian aid operation<br />

ever undertaken.<br />

During <strong>the</strong> coming six months, it is estimated<br />

that more than 1.6 million metric tons<br />

of food aid will be shipped into Iraq.<br />

Shipments are being handled by <strong>GAC</strong><br />

Dubai, in liaison with <strong>the</strong> Group’s network of<br />

operations offices throughout <strong>the</strong> Middle<br />

East.<br />

Group President, Lars Säfverström, says<br />

<strong>GAC</strong> is well suited to take on this massive<br />

task, thanks to its extensive regional shipping<br />

and logistics infrastructure, which includes<br />

<strong>the</strong> giant Jebel Ali Distribution Centre<br />

near Dubai.<br />

“<strong>GAC</strong> has been a part of <strong>the</strong> Gulf community<br />

for nearly half a century,” he says.<br />

“We have lived through all <strong>the</strong> wars and all<br />

<strong>the</strong> boom times too. It is entirely fitting for<br />

us to be a part of <strong>the</strong> effort to bring essential<br />

supplies to <strong>the</strong> communities in Iraq.”<br />

The Iraq contract with <strong>the</strong> WFP continues<br />

a steady stream of work done by <strong>GAC</strong> for<br />

<strong>the</strong> agency, covering countries in Asia, <strong>the</strong><br />

Middle East and West Africa.<br />

Gard Services<br />

Appoints H&M<br />

Correspondent<br />

Gard Services, <strong>the</strong> leading provider of P&I,<br />

marine and energy insurance, based in Norway,<br />

has appointed <strong>GAC</strong> Shipping Pakistan<br />

(Pvt) Ltd. as its Hull and Machinery Correspondent<br />

in Pakistan. The appointment came<br />

into effect in February 2003.


Industry Insight<br />

19<br />

Industry Insight (courtesy of BIMCO)<br />

Using <strong>the</strong> Sealanes to Revitalise a <strong>World</strong> Economy<br />

by Mike Corkhill<br />

In spite of a downbeat global economy,<br />

world seaborne trade is not faring badly.<br />

Prospects would be so much brighter if<br />

governments could shun domestic protectionist<br />

pressures and open to free trade.<br />

With coalition forces in <strong>the</strong> centre of<br />

Baghdad, many of <strong>the</strong> Middle East uncertainties<br />

that have clouded <strong>the</strong> global<br />

market outlook in 2003 appear to have been<br />

cleared. <strong>World</strong> trade, which had already<br />

begun to pick up on <strong>the</strong> back of <strong>the</strong> growing<br />

Chinese imports and exports, is poised<br />

for a mini-surge.<br />

Concerns are growing that <strong>the</strong>re is not<br />

enough shipyard capacity to build <strong>the</strong> ships<br />

needed to meet <strong>the</strong> demand growth expected<br />

in <strong>the</strong> next few years.<br />

Boxes and bulk<br />

The container, tanker and dry bulk shipping<br />

sectors each provide an indicator of<br />

which way <strong>the</strong> global trade winds are blowing.<br />

The demand for container ships is<br />

forecast to increase by up to 8% this year<br />

and 9% in 2004. Those freight rates on <strong>the</strong><br />

transpacific and Asia-Europe routes are<br />

expected to rebound most strongly this<br />

year, i.e. in excess of 15%.<br />

The tanker fleet is set to expand by<br />

5.5% this year, as work on a wave of newbuildings<br />

continues. This will be <strong>the</strong> highest<br />

year-on-year growth for <strong>the</strong> tanker sector<br />

since <strong>the</strong> mid-1980s. Much of <strong>the</strong> new<br />

construction has been prompted by <strong>the</strong><br />

current drive to accelerate <strong>the</strong> phase-out<br />

of older, single-hull tankers, but <strong>the</strong> seaborne<br />

oil trades are also forecast to<br />

increase by 3% in 2003.<br />

The bulk carrier orderbook, in tonnage<br />

terms, currently stands at a healthy 10% of<br />

<strong>the</strong> overall fleet. The demand for coal in<br />

Asia, not least in Japan and China, is currently<br />

running at higher than historical<br />

levels. Problems with Japanese nuclear<br />

power plants are underpinning <strong>the</strong> increasing<br />

levels of coal imports in that country.<br />

In overall terms, <strong>the</strong> current spurt in<br />

world trade is relatively modest, yet it<br />

could have been so much stronger had <strong>the</strong><br />

European and U.S. economies not been<br />

struggling to mount recoveries. Earlier in<br />

<strong>the</strong> year <strong>the</strong> global economy was teetering<br />

on <strong>the</strong> edge of a recession. While <strong>the</strong> dramatic<br />

removal of <strong>the</strong> Iraqi regime may have<br />

helped to alleviate that threat, <strong>the</strong> total<br />

picture remains gloomy. For example, influential<br />

U.S. forecasters have recently revised<br />

<strong>the</strong>ir estimates for U.S. growth this year<br />

down to 2.2%, from 2.8%. The European<br />

Commission has said that <strong>the</strong> Eurozone<br />

economy may even have shrunk during <strong>the</strong><br />

first quarter and that annual growth will<br />

be lucky to reach 1% this year.<br />

Trade restrictions<br />

It is unfortunate that when economies<br />

falter, <strong>the</strong> first reaction of governments is<br />

to raise import barriers to protect local<br />

producers, ra<strong>the</strong>r than to lower <strong>the</strong>m<br />

which helps to mitigate <strong>the</strong> damage caused<br />

by economic recession.<br />

The challenge for <strong>the</strong> world’s leading<br />

nations is to finalise <strong>the</strong> Doha round of<br />

<strong>World</strong> Trade Organisation (WTO) talks<br />

before <strong>the</strong> target completion date of<br />

December 2004. With some of <strong>the</strong> leading<br />

heads of state facing re-election next year,<br />

this means that <strong>the</strong> bulk of <strong>the</strong> work has to<br />

be completed in 2003. There are two<br />

principal areas for which conditions need<br />

to be established to enable trade which is<br />

more free and open than is currently <strong>the</strong><br />

case – agriculture and services.<br />

Services encompasses numerous sectors,<br />

including telecoms, transport, tourism,<br />

finance, construction and computer<br />

and environmental services. Services make<br />

up three-fifths of <strong>the</strong> world economy, but<br />

only one-fifth of world trade, so <strong>the</strong>re is<br />

considerable scope for an expansion in<br />

trade in such services.<br />

Maritime services<br />

Maritime services have been identified as<br />

being amongst those in need of ”meaningful<br />

liberalisation” and achieving this for <strong>the</strong><br />

maritime transport service sector is seen as<br />

crucial to ensuring <strong>the</strong> success of <strong>the</strong><br />

current Doha round of trade negotiations.<br />

Liberalisation requests have already been<br />

circulated and have been <strong>the</strong> subject of<br />

bilateral talks amongst various parties.<br />

Last month <strong>the</strong> EU and 37 o<strong>the</strong>r nations<br />

signed a statement which points out that a<br />

global network of reliable, efficient and<br />

cost-effective maritime transport services<br />

would benefit all WTO members, including<br />

<strong>the</strong> poorest.<br />

However, <strong>the</strong> US government, which has<br />

blocked market-opening accords for <strong>the</strong><br />

maritime transport services sector in <strong>the</strong><br />

past, is yet to indicate whe<strong>the</strong>r it will support<br />

<strong>the</strong> initiative. A special exemption<br />

from <strong>the</strong> WTO rules has been given to <strong>the</strong><br />

US Jones Act which requires domestic<br />

cargoes to be carried in US-owned, UScrewed<br />

and U.S.-built ships. The extent to<br />

which Washington accedes to pressure to<br />

remove this exemption will provide an<br />

indicator of not only <strong>the</strong> government’s<br />

commitment to <strong>the</strong> Doha round of WTO<br />

talks but also its ability to withstand <strong>the</strong><br />

domestic clamour for protectionism.<br />

Editor’s Note: This article appeared on <strong>the</strong> BIMCO<br />

website – www.bimco.dk – in April 2003. It is reproduced<br />

here with <strong>the</strong> kind permission of BIMCO.<br />

The author, Mike Corkhill, is a technical journalist<br />

and consultant specialising in oil, gas and chemical<br />

transport, including tanker shipping. A qualified<br />

Naval Architect, he was Editor of Hazardous<br />

Cargo Bulletin for 16 years from its inception and<br />

has written books on LNG, LPG, chemical and product<br />

tankers.<br />

Feature articles written by outside contributors<br />

do not necessarily reflect <strong>the</strong> views or policy of<br />

BIMCO or <strong>GAC</strong>.


“But Rolf had <strong>the</strong> last laugh.”<br />

<strong>GAC</strong> Distribution Centre in Dubai has celebrated its 10th anniversary.<br />

On page 17, Rolf Muchardt, <strong>the</strong>n Managing Director of <strong>GAC</strong> Dubai, recalls <strong>the</strong> opening ceremony.<br />

StenTex Signs Regional Hub Deal<br />

<strong>GAC</strong> Wrap<br />

Tanker shipping company StenTex LLC, part of <strong>the</strong><br />

Stena Group, has signed a hub agency deal with <strong>GAC</strong><br />

for all port calls in <strong>the</strong> Americas.<br />

New <strong>GAC</strong> India<br />

Office Completes<br />

Coastal Coverage<br />

<strong>GAC</strong> India has added a 16th<br />

office to its network spanning<br />

<strong>the</strong> country’s ports, this time at<br />

<strong>the</strong> east coast port of Paradip.<br />

Under <strong>the</strong> agreement, which came into effect<br />

in April this year, <strong>GAC</strong>’s Hub Agency Centre<br />

in Houston coordinates all StenTex calls at<br />

ports in <strong>the</strong> region through its network of<br />

offices and partner agents.<br />

StenTex runs a fleet of tankers worldwide,<br />

<strong>the</strong> majority operating in American<br />

waters.<br />

Kim Ullman, President and CEO of Sten-<br />

Tex LLC, says <strong>the</strong> goal of StenTex is to be <strong>the</strong><br />

preferred regional provider of tanker transportation<br />

services to oil companies and<br />

traders.<br />

“We trust that this new deal with <strong>GAC</strong><br />

will help us achieve that goal,” he says.<br />

Tailor-made<br />

Tom Näsman, <strong>GAC</strong>’s Regional Director for<br />

<strong>the</strong> Americas adds:<br />

“This regional agency alliance is tailormade<br />

to meet customer needs, offering <strong>the</strong><br />

advantages of enhanced customer service,<br />

financial stability and cost savings.<br />

“It is a continuous learning process to develop<br />

and provide streamlined procedures and<br />

innovative solutions.”<br />

<strong>GAC</strong>’s business relationship with <strong>the</strong><br />

Stena Group goes back more than 20 years,<br />

starting when Stena entered <strong>the</strong> tanker<br />

shipping market in 1982. In 1996, <strong>GAC</strong><br />

signed an agency agreement with Stena<br />

Bulk, StenTex and Nor<strong>the</strong>rn Marine – <strong>the</strong><br />

Group’s management company – covering<br />

ports in Africa, <strong>the</strong> Middle East, Indian subcontinent,<br />

South East Asia and Far East. That<br />

agreement remains in effect.<br />

The port is a gateway for <strong>the</strong> import of raw<br />

materials and export of finished goods. It is<br />

a natural deep-draught port offering 14<br />

berths, five of which are highly mechanised.<br />

The coal berths are equipped with state-of<strong>the</strong>-art<br />

technology facilitating <strong>the</strong> loading of<br />

4,000 MT of coal per hour. A modern<br />

terminal is due to be commissioned later this<br />

year.<br />

Paradip port achieved a record turnover<br />

for <strong>the</strong> year 2002-2003, handling a total of<br />

23.9 million tons. It is expected to meet its<br />

target of 25 million tons set for <strong>the</strong> 2003-04<br />

financial year. The port has ISO 9002<br />

certification. ISO 14000 certification is<br />

expected to be given shortly.<br />

With <strong>the</strong> addition of <strong>the</strong> Paradip office,<br />

<strong>GAC</strong> now has its own dedicated offices and<br />

staff covering all ports on <strong>the</strong> Indian Coast.<br />

Details of <strong>the</strong> new office are as follows:<br />

<strong>GAC</strong> Shipping (India) Pvt. Ltd.<br />

HIG-32, 1st Floor,<br />

Gaurav Vihar, Madhuban,<br />

Paradip Port - 754 142,<br />

Orissa, India<br />

Tel : +91 6722 221974 / 221975<br />

Fax : +91 6722 221975<br />

E-Mail: india@gacworld.com<br />

After Office Hours<br />

Branch Manager, Abdul Azim<br />

Mobile: +91 94370 00393<br />

For information about operations in India<br />

contact: <strong>GAC</strong> India at india@gacworld.com

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