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| (8) Strengthen key preventions and safety investment to build safety defense lines |
| Early 2006, COSCO developed the specific measures for the safety supervision over old ships and key ships. COSCO's subsidiaries at all levels evaluated the old ships whose equipment situation was poor and hull structure has defects, formulating corresponding rectification measures to correct defects and listing the key ships for tracking as the key trackingtargets of the routine safety management. Based on the |
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| evaluation,the targeted investment was made to ensure the shipping safety of old ships. In terms of the safety efforts, the whole system achieved the transformation from the hardware as priority to both hardware and software as priorities. COSCO Guangzhou considered fully improving the comprehensive quality of employees as a key task, increasing investment and strengthening the specialized skill training with 3,967 employees being trained in 2006 in total. COSCO Logistics increased its human power investment given the lack of safety management staff, arranging a certain number of safety technology management staff with certain safety management capability for regional branches. COSCO Shipyard made efforts to improve the comprehensive quality of employees, increased the capital and human resources investment in safety education. The company arranged special safety education officials and established training bases for its branches while developing the Outline of COSCO Shipyard for Safety Education. Through paying attention to the key safety points and increasing the safety efforts, COSCO Shipyard plays an active role in building the safety defense line for the whole group. |
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| (9) Reinforce informatization construction and improve management |
| In order to realize the scientific, standardized and normalized ship management, COSCO continues propelling its project of COSCO Ship & Shore Information System (SSIS) & Safety Mobile Network, placing the emphases on building the information management platform for COSCO's safety technology supervision department and solving the statistics and analysis on safety information to share with 2nd-tier subsidiaries. COSCO Container Lines upgraded and improved its ship management information system (SMIS) solely developed by itself and developed the òglobal dynamic |
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| monitoring system for ships of COSCO Container Linesó to enable the non-stop tracing and guidance on the shipping status of the company's ships worldwide. CHIMBUSCO developed and implemented the computer-based fleet management system, using the computer system to supervise and guide the ships sailing in fog and enhance the management over shipping affairs. |
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| (10) Strengthen the researches on navigation science to guide safety |
| In 2006, through the research on the topic of Ship Navigation under Special Weather Conditions and in Special Water Areas, the CSOCO Group has carried out special research, based on the theory of handbook, starting on the actual situation, fully using experiences of COSCO experts and accumulated for dozens of years, and relating to COSCO fleet's structure, different ship varieties, different sea zones and different loading situations. It will be taken as the internal guidelines for COSCO ships in safety operation, and will be provided for |
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| ships as important technology support for ship navigation under special weather situations. It has played an important role in the decrease of casualty and wealth loss caused by serious ocean calamity and at the same time has filled the blankness in the field. |
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