16th European Manning & Training Conference Radisson Blue Dubrovnik 14-15th May 2013 Assessment of Croatian manpower-what can they offer? Featured analysis of Croatia as a major European manpower supplier 1
Mario Zorovic - Managing Director at Zorovic Maritime Services - President of CROSMA (Croatian Ship Manning Association) - Member of Eurocrew Council 2
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For those of you who doesnt know what red and white cubes stands for, this are Croatian characteristics we are recognized all over the world. Altough we are very proud on our football national team, and others Croatian athletes as well, today we will not be talking about them. 4
We will be talking about them Croatian Seafarers = Quality Seafarer 5
Outline: Our tradition / track history Education / knowledge Our strength today What the future brings 6
Geografical position 6000 km of coastline 1107 islands, 67 inhabited 31000 square kilometers of territorial waters 7
Our tradition Tradition and centuries of experience with trading, fishing, fighting, inventing and a number of great individuals explorers and teachers promoting our maritime identity (sea in blood) 8
Our heritage Oldest known description of a ship in Europe found on the island of Hvar 2700 years B.C. 9
Croatians immigrate beginning of the 7th century and assimilate with domicile tribes Iliri, Liburni, Dalmati, Japodi etc. Croatian seamen active in the world shipping trade, new discoveries (Croatian Indians North Carolina) and famous battles (Lepant, Krim etc.) Marco Polo, famous explorer, was born in Croatian Island of Korculain 1254 Dubrovnik Republic during 15th & 16th century one of the most powerful country in the world intensive shipping trade, 180 merchant ships navigating the Globe (famous Galleons and Karakas) 10
Why we are pointing out at Dubrovnik? The oldest Maritime law statute in the world 1272 First shipping insurance law established 1395, 300 years before Lloyd s one Quarantine concept invented 1377 Prohibition of slavery 27th of January 1416 (first in Europe) Dubrovnik first one to recognize the independence of the United States of America in 1783 The oldest regatta in Europe was recorded in 1593 where 74 Falkusa boats were racing from Komiza to Palaguza island (42 NM) 11
Capt. Ivan Visin on the brig Splendido (GT 311, 30m long) build in Rijeka, sailed around the world 1852-1859. He was the fourth explorer after Magellan to circum navigate the globe 12
706 passengers saved from Titanic (14 April 1912) by Carpathia on a regular route New York Rijeka, with 70 Croatian crew members onboard The only life jacket in Europe (from 5 in the world) is kept in Rijeka Maritime Museum today 13
Croatian seafarers the first one between East European nations to sail and work under the International Shipping Standards right after the 2nd world war(not strong communist discipline) 1982 35000 pool of seafarers & 250 merchant vessels(27th largest tonnage in the world) 1990 5th shipbuilding force in the world 1991 1995 homeland war for the liberation of Croatian people and renewed independence devastated almost whole industry including maritime; 54% of territory was affected by the war and damage done more then 27 billion US$ 14
Croatia today is a stable modern democracy and society in the heart of Europe with size and population of a small country but internationally well established and respected member of the United Nation, NATO and becoming EU member on 01st July 2013. 15
Education / knowledge 16
First Nautical School established in Sagres (Portugal) 1416 On the East Adriatic coast: Perast 1512 Kotor 1637 Mali Losinj 1780 Dubrovnik 1793 Rijeka 1817 Zadar 1850 Nautical College was founded in Rijeka in the early 1949 as the first institution of higher education on the east coast of the Adriatic followed by Split and Dubrovnik 1978 establishment of the first faculty called Faculty for Maritime and Transport in Rijeka (originated from Nautical College) 17
TODAY 4 Maritime Faculties 6 Nautical High Schools Appropriate training facilities (state and private owned) 4 Shipbuilding Yards Growing Nautical Tourism Sector 18
Educational levels in terms of maritime vocation Maritime High School (Secondary School) education (4 years) Operational Level (OOW - CoC) University education - undergraduate education B.Sc. (3years) - graduate education M.Sc. (2 years) Management Level (Senior Officer - CoC) - postgraduate education Dr. Sc. (3 years) Special Education Program intended mainly for experienced seafarers with no management level competence which allows to achieve highest maritime ranks Management Level (Senior Officer CoC) 19
OOW Deck/Engine (STCW II/1) Conditions Deck: Min 18 years of age Min 4 years of Maritime High Nautical School (Secondary School) 12 months of seaservice as Deck Cadet where min 6 months onboard vsl over 3000GT Radio operator exam RADAR / ARPA operational level exam Medical fitness OOW Examination (oral and written) OOW / Deck (II/1) Conditions Engine: Min 18 years of age Min 4 years of Maritime High School (Secondary School) Or, min 2 years of Marine Engineering studies on the University level 12 months of seaservice as Engine Cadet where min 6 months onboard vsl over 750KW and min 6 months onboard vsl over 3000KW Medical Fitness OOW Examination (oral and written) OOW Engine (II/1) 20
Chief Mate/ Master (STCW II/2) and Ch Eng / 2nd Eng /STCW III/2) OOW (II/1) Conditions: -Nautical studies at the university level (A-II/2) -12 months as officer on ships of 500 GT or more - Medical fitness -RADAR / ARPA -management level & Medical Care - Examination (oral and written) CM unlimited (II/2) Conditions: - Nautical studies on the university level (A-II/2) -12 motnhs as Cheif Mate on ships of 3000 GT or more and 24 months seaservice as OOW on ships of 500 GT or more -36 months as Chief Mate on ships of 500 GT or more - Medical Fitness Master unlimited (II/2) EOW (III/2) Conditions: -Marine engineering studies on the university level (A-III/2) -12 months as officer on ships of 750 kw or more - Medical fitness - Examination (oral and writen) 2E unlimited (III/2) Conditions: -Marine engineering studies on the university level (A-III/2) -12 motnhs seaservice as 2/Eng on ships of 3000 Kw or more and 24 months seaservice as EOW on ships of 750 kw or more -36 months seaservice as 2/Eng on ships of 750 kw or more - Medical fitness ChEng unlimited (III/2) 21
OOW (II/1) Chief Mate/ Master (STCW II/2) and Ch Eng / 2nd Eng /STCW III/2) ALTERNATIVE MODEL: -Maritime High School (costumized A-II/2) -Special education program of 750 hours -36 months as officer on ships of 500 GT or more - Medical fitness -RADAR/ ARPA management level & Medical Care - Examination (oral& written) CM unlimited (II/2) - Examination (oral & written) 3000GT or more ALTERNATIVE MODEL: -Maritime High School (costumized A-II/2) - Special education program -36 months as officer on ships of 500 GT or more of which not less than 12 months after aquisition the licence of Chief mate on ships of 3000GT or more, or -24 months as Chief mate on ships of 3000GT or more - Medical Fitness Master unlimited (II/2) EOW (III/2) ALTERNATIVE MODEL: -Maritime High School (costumized A-III/2) -Special education program of 795 hours -36 months as officer on ships of 750 kw or more - Medical fitness - Examination (oral & writen) 2E unlimited (III/2) ALTERNATIVE MODEL: -Maritimr High School (costumized A-III/2) - Special education program -36 months as EOW on ships of 750 kw of which not less than 12 months after aquisition the certificate on ships of 3000 Kw or more, or -24 months as 2/Eng on ships of 3000 Kw or more - Medical fitness ChEng unlimited (III/2) 22
Alternative models Experience seafares Program at university (ECTS points) Continuous education Flexibility Competitiveness MAINTAIN QUALITY 23
Number of students attending Maritime High Schools (Secondary school) 2007-2012 Nautical department 2007 2008 2009 2010 2011 2012 BAKAR 34 30 35 33 59 52 MALI LOŠINJ 13 13 7 15 15 8 ZADAR 49 56 49 58 66 61 ŠIBENIK 14 12 17 23 16 17 SPLIT 74 69 59 79 84 88 DUBROVNIK 54 39 38 38 60 49 TOTAL 238 219 205 246 300 275 Engine department 2007 2008 2009 2010 2011 2012 BAKAR 31 30 29 29 33 26 MALI LOŠINJ 10 8 9 8 10 7 ZADAR 22 31 25 31 33 31 ŠIBENIK 11 15 17 15 16 15 SPLIT 33 38 40 53 57 59 DUBROVNIK 32 16 22 32 26 27 TOTAL 139 138 142 168 175 165 24
Number of students graduated on the Maritime Faculties (University) 2007-2012 Nautical department 2008 2009 2010 2011 2012 RIJEKA 75 92 82 69 66 SPLIT 70 61 88 100 113 DUBROVNIK 30 33 25 26 24 ZADAR 12 18 26 28 23 TOTAL 187 204 221 223 226 Engine department 2008 2009 2010 2011 2012 RIJEKA 34 35 32 34 43 SPLIT 44 18 10 23 33 DUBROVNIK 24 13 12 8 6 ZADAR 4 11 5 12 8 TOTAL 106 77 59 77 90 Marine electronics 2008 2009 2010 2011 2012 RIJEKA 56 73 42 47 51 SPLIT 12 16 20 28 32 DUBROVNIK 20 11 14 11 8 ZADAR 0 0 0 0 0 TOTAL 88 100 76 86 91 25
Average number of potential Cadets per year 26
Our strength today 27
Support and co-operation for the benefit of Croatian seafarers National administration including different Ministries not only Maritime Affairs as a leader but Education, Labour, Health etc. Seafarers Union greatly contributing to the interests and rights of seafarers Croatian Register of Shipping Mare Nostrum (Croatian Association of Shipowners) Community Associations of Captains etc CROSMA (Croatian Ship Manning Association) 28
20.000 seafarers (14.548 registered); 1,5% of total employed population; mostly officers 1 billion Euro of income yearly (best export product) 183 days tax free regime Social obligations and benefits (health and pension) Beneficial years of service (12 months = 15 months); retirement possible at 60 years of life and 15 years of sea service Scolarship granted for about 200 students yearly in order to promote maritime profession Kraljica Mora ( Queen of the Seas ), a modern 35 meters school ship accommodating 28 students and 4 professors build in 2010 for practical training 29
Queen of the Seas 30
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Younger generation sailing on technologically innovative ships Latest generation of FSRU (LNG) ships DP Shuttle tankers, ECO tankers, difficult chemical trade Modern drilling vessels Super luxury passenger ships Biggest and demanding container vessels 33
Older generation sailing on less innovative ships where however additional maintenance is required Ratings are almost gone, sailing on Croatian flagged vessel or being able to transfer to offshore business 34
More reasons to employ Croatian Seafarers? Many of the world best shipping companies employing Croatian maritime personnel on the ships andin the officesbeing professional, competent and commited English language still an advantage comparing to many other nationalities Ability to adapt Loyalty (excellent retention rates) is highly expressed in the Croatian seafarers Multicultural tolerance Croatians have no religious or nationals barriers (happy to work with everybody) Large number of seafarers for relatively small Croatian economy and also maritime industry; limited number of shore position employment once they start sea career this is lifetime occupation (not likely for other nations) Economical situation is favourable for the growth of maritime personnel 35
Smart investment into Croatian officers Hiring senior officers only? Short term savings on the budget will not bring long term benefits to the Shipowner and will not reduce the cost at the end just contrary (I am not rich enough to buy cheap) Only with smart investing into the young people with long term strategy, planning and taking proper care a good quality and stable pool of hard working and dedicated professionals can be achieved. If a good Croatian Captain or Chief Engineer is wanted to run my ship safely then Croatian Cadet is a first step to reach my goal! 36
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What the future brings 38
It is obvious that Croatian seamen will remain European major manpower supplier significant on the global scene for many years to come And the global trends are in favor because: 1. World market will inevitably grow so the number of ships and seafarers 2. Many Shipowners moving to Asia to cut ther costs wage differences between Asians and Europeans are reduced and will become less important... 3. Quality Makes the Difference (Operational Excellence...what is that?) 39
Operational Excellence (everything is measurable) Accurateand safetransport of goods and raw materials from the point of loading to the point of discharging Quality maintenance of ships and marine equipment Safetyof the crew (without the death and injury) and the ship itself (collision, grounding, fire, etc.) Prevention ofadverse effects on the environment, such as marine pollution oil, chemicals, garbage, pollution of the atmosphere, etc. Efficiency of different ship inspection and verification of international conventions and regulations relating to theship and crew (Port State Control), control of the state whoseflag the ship flies (Flag State Control), checking the ship by the oil companies whose cargo ship is carrying (SIRE, Vetting reports ) to the internal audits and inspections themselves shipping companies (audits) 40
Maritime and shipping industry is highly competitive and unusually dynamic industry with thin line between a very cost-effective titans and failingcompanies sometimes within a relatively short period of time. High quality and well-educated seafarerscan often tip the balance on the side of success. THAT WE MUST NEVER FORGET! 41
And one more thing... Let s hear what competent people from the Industry think of Croatian seafarers... 42
We have hundreds of long serving Croatian Officers on board our managed tanker vessels; they are professional seafarers with a high level of sompetence, Having them on board gives that all important comfort factor to our owners that their assets are in capable hands. Dhan Swadi, Personnel Director at NMM/Stena 43
We have for more than 15 years appreciated the first class and highly dedicated quality services from Croatian Officers including the privilege of Cadets employment. Our Croatian colleagues are an important factor bringing us forward. Øivind Stark, Höegh LNG 44
The success of our pioneering work with in operating LNG RegasificationVessels and STS Operation would not be possible without the dedication and professionalism of our Seafarers. An important part of these are Croatians that have been with Exmar with more than a decade. Claude Maerten, Exmar LNG Belgium 45
We have been employing Croatian officers since 2006 and have since then steadily increasing to numbers to more than 120. We truly appreciate the high skills and competences with the Croatian officers as well as their loyalty to TORM and their high dedication to deliver a good performance. We are proud to say that we have a very high retention of Croatian officers, they mix very well with other nationalities and they are always keen to on updating their professional competences on the many high class training facilities in Croatia Peter Burkal, Head of Global Marine HR Operations 46
Since our Company's establishment we have set our targets and strategic objectives to meet and exceed the highest of standards in the industry. One of the biggest challenges, not to say the greatest of all, was to attract and retain the best qualified people to man our new building vessels. After 4 years of operation and having worked for about 2 years with Croatian seafarers, we can say that we have achieved that. Our partners in Croatia, Zorovic Maritime and our Croatian Masters, Chief Engineers and officers have performed above expectations. Their knowledge, skills and behaviors as well as their leadership and management skills drive our HSQE path to excellence and provide new challenges for the future. They proved to be most competitive versus the return on investment we have had so far and our mutual commitment towards continual improvement will definitely prove to be the driving force for our future success. Captain Stylianos Dimouleas, COO of Almi Tankers S.A. 47
Why Croatian Seafarers? - Experience through centuries ( Sea in blood ) - High quality education & training - Superior competence (Quality Makes the Difference) 48