Gearbulk Integrated Report 2023 - Report - Page 49
INTEGRATED REPORT 2023
OUR INPUTS
Financial Capital
Manufactured Capital
Human Capital
Social and Relationship Capital
Intellectual Capital
Natural Capital
3 TRADE ROUTE AND PIRACY RISK
4 NEW BUILD STRATEGY
5 LIMITED PROCESS
DOCUMENTATION
Increased geopolitical tension has lead
to destruction of trade routes due to
attacks on vessels impacting various
areas of the operations.
Current age pro昀椀le of Gearbulk vessels
together with vessels leaving the 昀氀eet
in the next 2 – 5 years require replacement. With various new technologies
and fuel to be considered increases the
risk of a negative return on investment.
Postponing the decision has impact on
availability and possible price.
With a cross functional organisation
spread across various countries, a
lack of documented processes and
e昀昀ective tools can lead to control
de昀椀ciencies and increased costs.
Continuing the trade route could lead
to loss of lives and assets and loss of
customer cargo should a vessel be
attacked.
Tonnage requirements from our joint
ventures are affected which has an
impact on revenue should the ability to
昀椀ll gaps not be able.
Lack of process documentation
a昀昀ects the organisation in all areas
and has a negative impact on value
due to lack of controls, ine昀케ciencies
and increased costs due to complex
structures.
Risk assessments are done on a case by
case basis and regular contact with crew
is in place.
A 昀氀eet renewal program is currently
being 昀椀nalized and various 昀椀nancing partners are being considered as part of the
strategy to renew the 昀氀eet accordingly.
A process is currently underway
to document current controls and
mapping of processes to support
with enhancing the control environment together with identi昀椀cation of
potential areas where e昀케ciencies
can be created.
Geographical risks in the Red Sea due to
attacks presents opportunities for Gearbulk to enhance security, reduce costs,
di昀昀erentiate ourselves in the market,
and ensure the safety and sustainability
of our operations in the region.
New building strategies presents opportunities for Gearbulk to improve e昀케ciency, environmental performance,
competitiveness, and long-term sustainability including 昀椀nancial savings linked
to new building market.
Limited process documentation presents opportunities for Gearbulk to
improve operational efficiency,
compliance, decision-making, and
overall resilience, ultimately leading
to enhanced competitiveness and
long-term success in the industry.
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