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Page 1: connections · EDITORIAL CONTENTS 2 CONNECTIONS CONNECTIONS 3 Perpetual Processes IMPRINT connections Vol. 28/3/2016 Published by Oiltanking GmbH, Corporate Center, Koreastrasse 7,

THE WORLD OF OILTANKING VOL. 28/3 DECEMBER 2016

connections

Page 2: connections · EDITORIAL CONTENTS 2 CONNECTIONS CONNECTIONS 3 Perpetual Processes IMPRINT connections Vol. 28/3/2016 Published by Oiltanking GmbH, Corporate Center, Koreastrasse 7,

E D I TO R I A L C O N T E N T S

CONNECTIONS2 CONNECTIONS 3

Perpetual Processes

IMPRINT connections Vol. 28/3/2016 Published by Oiltanking GmbH, Corporate Center, Koreastrasse 7, 20457 Hamburg, Germany, www.oiltanking.com, Telephone +49-40-37099-7485, Fax +49-40-37099-7499 E-Mail [email protected] Coordinator Gabi Wuestenberg, Manager Communications Editor Renate Eijkholt Design raz design, Hamburg Print BEISNER DRUCK GMBH & Co. KG, Hamburg Published Three times a year Copy Deadline vol 29/1 week 3, 2017

ASIA PACIFIC

SOUTH AFRICA

LATIN AMERICA

EUROPE

Contents

LEISURE &ENTERTAINMENT

INDIA

04 New Drive in Indonesia

06 Nanjing’s Growth Process

08 A Project Ten Years in the Making

10 Oiltanking Steps on the Gas in Antwerp

12 Patience + Perseverance = Prøvestenen

13 The latest “Product Placement”

29 Meet DoRIS

36 From LOTO to LTT

05 “Adopt a Spot”

33 Meeting the Nelson Mandela 67-Minute Challenge

17 Worth The Wait

22 A Place in the Sun

23 “FUEL” in COLOMBIA

24 Successful First Transshipment

26 Smooth Operation

28 With Full Voice

20 Project Enforce

21 “Smilestones” in Turkey

14 We can, we care ... in Assets & Operations

30 Cultural Experiences | EAST Meets WEST in Hamburg

34 Beefing Up on Argentine Asado

42 In a nutshell

18 Lexicon | The Petroleum Refining Process

38 Connecting People and Information

43 Number | 5

44 Process Peculiarities

46 The Strategy Process

47 Reader's Corner

48 Last but not least | Living Art

PEOPLE & PLACES

Cover: This “nature vivante” painting is a close-up of the colorful bark of a Rainbow Eucalyptus (Eucalyptus deglupta). Learn more about the natural process that results in this kaleidoscopic work of art, on the back cover.

The global energy markets have been in turbulent waters for quite some time. As always, the unpredictability and uncertainty resulting from these ups and downs offer both challenges and opportunities. With the financial year 2016 coming to a close, we are happy to say that, while Oiltanking has not escaped any of these dynamics, we have done well this year.

Success in business cannot be measured by good financial performance only. We strive to achieve excellence in everything we do. The mindset of seeing business as a learning process helps us to continuously improve. Making our core processes more robust in order to maximize the potential of our global brand is one of the cornerstones of our growth strategy. We have reinforced our focus on asset integrity and risk assessment, and the safety processes at all our terminals – for colleagues as well as other stakeholders such as clients and contractors – are being carefully reviewed by all line management. On March 22, 2017 Oiltanking will conduct a worldwide Safety Day during which corporate, regional and local terminal teams will contribute to enhancing safety behavior throughout the Oiltanking organization. To ensure sustainability in the future, the search for new talent, providing

functional skills to support employees, and enhancing their development is an ongoing process. The same is true for our commitment to contribute to the welfare of the communities in which we operate.

As we work through all of these processes, we keep past experiences in mind in order not to lose sight of lessons learned for the future. Improvement is not a one-time action. It is a perpetual, ongoing process. By pursuing continuous improvement, we are confident that Oiltanking will be well prepared to continue being successful into the future.

Read more about some of our projects and initiatives, as you process all kinds of other information in this issue, which itself has just completed the printing process.

Happy reading!

Koen VerniersManaging Director Oiltanking East

Daan VosManaging Director Oiltanking West

GAS

10

OIL

24

BEEF

34

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CONNECTIONS4 CONNECTIONS 5

Indonesia is a large archipelago that still relies very much on resource-based industries such as coal mining. It is also one of the world’s largest producers and exporters of coal. Its largest coal deposits are located in South Sumatra, and in South and East Kalimantan. A large range of domestic and international coal mining companies have settled here and require substantial quantities of diesel. One of the biggest mining companies is PT. Kaltim Prima Coal (KPC) with an annual production of more than 40 million tons. This company alone uses approximately 2,500 cbm/day of diesel to run its operations (at peak times: 3,500 cbm). According to recent estimates, the diesel demand in South and East Kalimantan generally amounts to four million cbm per year.

The Sangatta terminal project is the culmination of a development process that started in 2011/2012, when PT. Oiltanking Merak proposed a solution for KPC’s fuel-receiving operation. At the time, KPC relied on ship-to-ship

transfers from medium range oil tankers (approx 30-55,000 DWT) to smaller barges, and subsequently delivered to their existing small tanks. It was a rather inefficient procedure, with KPC incurring vessel demurrage and substantial product losses during the transfers. In 2012, Oiltanking signed a consulting agreement to provide planning, designing, budgeting, permit and tender support to KPC in developing a receiving terminal. This project was completed in early 2014, and was then followed up with another agreement to manage the construction of the project. Finally, towards the end of 2015, an Operations & Management (O&M) agreement was

finalized, enabling or ensuring a smooth handover of the project to Oiltanking’s O&M team. Since the end of May 2016, PT. Oiltanking Nusantara Persada has managed the site’s three diesel tanks, each with a capacity of 25,000 cbm, as well as a subsea pipeline with a mooring dolphin located approximately three kilometers offshore.

The Indonesian coal industry underwent a rapid expansion. Currently however, due to weak global demand and a coal glut, prices are low and exports are falling. Nevertheless, having a terminal in Sangatta will give Oiltanking a presence in this interesting market, and the team is optimistic about finding further opportunities to grow in this region.

At the end of May 2016, PT. Oiltanking Nusantara Persada commenced operations of a new terminal in Sangatta, East Kalimantan, Indonesia.

New Drive in Indonesia

A S I A P A C I F I C S O U T H A F R I C A

PERSPECTIVE Oiltanking will further step up its business of rendering services to the mineral resources sector, which plays a vital role in the Indonesian economy

PERFORMANCE The terminal was

built to handle the fuel requirements

of a coal mining company in

Indonesia

Marquard & Bahls and its subsidiaries are committing themselves to minimizing their environmental footprint – and so are their employees. On July 1, ten colleagues at the Oiltanking Grindrod Calulo (OTGC) terminal in Durban got up early to “walk the talk.” They participated in “Adopt a Spot,” the Transnet National Ports Authority (TNPA) of Durban’s environment day initiative as part of “Join the race to make the world a better place” (theme and slogan for 2016 UN World Environment Day). The authority invited all stakeholders to help clean the port area, Maydon Wharf, whereby each participating company was responsible for the area close to their own location.

After nearly five hours of bending down to diligently pick up litter from the roads, the adjacent properties and the beach near the jetties, the colleagues had every reason to be satisfied with their work. Their efforts really made a difference. The area looked presentable again, and approx. 25 kg of stray rubbish had been neatly consolidated into more than 40 bags.

The OTGC staff already has a high level of environmental awareness, and OTGC often hosts presentations and discussions on the topic. While separate recycling bins are the standard in Durban, their use leaves much to be desired. To encourage mindfulness in others, our colleagues try to set a good example, knowing that the best place to start is one’s own backyard.

Environmental consciousness at work: Our colleagues at the Oiltanking Grindrod Calulo terminal in Durban, South Africa, took part in a clean-up-day on July 1, 2016.

“Adopt a Spot”

DURBAN RENEWAL The Oiltanking Grindrod

Calulo terminal is located in the harbor of a city

that is famous for being the busiest port in South

Africa and a leading tourist destination

ENVIRONMENTAL CONSCIOUSNESS Please scan the QR code to watch our colleagues from Oiltanking Calulo Durban, South Africa, participate in a "Clean-up"-day on July 1, 2016

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The agreement between Trammo Shanghai and Oiltanking Nanjing to support Trammo’s growing ammonia trade in China with suitable storage facilities was signed in March 2015. Among other things, it involves the construction of one double-wall full-containment cryogenic tank with a capacity of 50,000 cbm and two pressurized spherical tanks, each with a capacity of 1,500 cbm. In addition, four refrigerators and two boil-off gas (BOG) compressors and related facilities are needed. The Ammonia Project officially commenced when the first pile was driven into the ground on October 12, 2015. Progress has been constant since then, as our visual visit to the site shows.

Ammonia storage is the latest addition to the wide range of product storage services offered by Oiltanking’s terminal facilities in Asia Pacific. The project is scheduled for completion and readiness to receive products on May 1, 2017. At that point, the cryogenic ammonia tank will be the biggest tank in Nanjing Chemical Industrial Park (NCIP), and Oiltanking Nanjing will have literally gained “tons” of experience in its construction.

CONNECTIONS6 CONNECTIONS 7

08/2016

10/2015

02/2016 03/2016 08/2016

A S I A P A C I F I C A S I A P A C I F I C

SUFFICIENT STABILITY Piles with a diameter of 60 cm (PHC600) and about 12 m long are driven into the soil to provide foundational support

for the cryogenic tank. The total depth of a pile position is 38 m

A FIRM BASIS The foundation, a double-slab type, for the cryogenic tank is laid. The bottom slab has a diameter of 54.4 m, and the upper slab 49 m. A total of 4,087 cbm of concrete was used for the two parts of the foundation.

SIDE BY SIDE The construction of the two spherical tanks is also now well underway. Following one month of construction, two spherical tanks were assembled since the end of June 2016. To ensure high-quality welding

seams, ten welders worked on the same tank simultaneously to avoid stress concentration during the welding. Welding on one of the spherical tanks was completed in mid-September, and the other the end of October 2016.

Each finished tank has a diameter of 15 m and weighs 306 metric tons.

IMPRESSIVE DIMENSIONS The tank takes shape: the diameter of the outer shell of the cryogenic

tank is 47.8 m at a height of 34.4 m. The cryogenic tank weighs approximately 2,630 metric tons.

WELL ROUNDED Construction on the tank began in March 2016. Five months

later, at the end of August 2016, the tank shell and bottom had been completed.

With a year of major construction nearing its end and completion scheduled for May 2017, it is time to check on the progress of construction at the Oiltanking terminal in Nanjing, China.

Nanjing’s

ProcessGrowth

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Phase 6 of the terminal involves the addition of a new jetty designed to handle vessels ranging from 1,000 DWT (barge size) to 75,000 DWT (LR1 size), catering for a wide range of products such as MOGAS, gasoil, jet fuel, MTBE. Based on data from year-end 2015, 3,975 vessels berthed at Oiltanking’s eleven existing jetties during the year. With the addition of MJ22 Oiltanking will be well equipped to handle more vessels. The new berth will also create more flexibility as it allows for relocating MR and LR size vessels

between the existing jetties thereby enhancing vessel turnaround times and enabling our customers to handle more volume through the terminal. Ultimately, it is another step in strengthening Oiltanking’s foothold in the expanding Straits Hub.

All piles for the new jetty have now been sunk into the seabed, and construction of the headstocks is fully underway (at date of printing). The months ahead will see construction of the new platform deck, walkways etc. One keenly anticipated milestone will be the construction of a 57-meter-long removable steel trestle. The pipelines and auxiliaries running along this trestle can be disconnected and the entire trestle can be lifted out. It was designed to accommodate a water intake pipeline serving Jurong Island that runs below the new jetty extension. With just a bit more patience, in less than a year the new jetty will be ready – and open for business on June 1, 2017!

Bang! Bang! Bang! From July 20, 2016, a new noise was constantly heard at the Oiltanking terminal on Jurong Island, Singapore: the sound of piles being hammered into the seabed of the East Jurong Channel facing the manmade

island. It is the soundtrack to a long awaited expansion. Oiltanking had conceived the idea of a jetty expansion about ten years ago with the aim of improving the terminal’s efficiency and customer service, as well as reducing the demurrage charges paid to clients. However, over the years the project encountered many time-consuming stumbling blocks that prevented the idea from becoming a reality.

And yet, the team set up to look into the idea kept going with unflagging determination and enthusiasm. They contacted the authorities, reviewed the requirements, engaged marine pilots, and carried out vessel simulations to demonstrate that it is possible to berth vessels within a tight channel, to name just a few of the many hurdles to be overcome. Eventually the green light was given, and construction on MJ22 has been in full swing ever since.

CONNECTIONS8 CONNECTIONS 9

A Project Ten Years in the Making

After a lengthy development process of ten years, Oiltanking Singapore was finally able to begin construction on the new jetty MJ22 on July 20, 2016.

PROMISING OUTLOOK Once it is ready, MJ22 will be Oiltanking Singapore’s twelfth jetty

ACCESSIBILITY The new jetty MJ22 (shown as dashed lines) is located at the East Jurong Channel facing Jurong Island

A GLIMPSE OF THE FUTURE This artist’s rendition shows a simulated berthing situation

A S I A P A C I F I CA S I A P A C I F I C

EARLY DAYS A snapshot from the phase when the headstocks were being constructed and black piles were still protruding out of the sea

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Oiltanking Steps on the Gas in Antwerp

In a globalized world, the requirements for energy and feedstocks are changing. As a proactive player, Oiltanking therefore aims to further diversify its storage portfolio. One of its current strategic pillars is the establishment of a footprint in gas storage. Beginning of July 2016 Oiltanking took a step fully in line with the group- and company strategy by acquiring the Antwerp Gas Terminal (OTAGT). Headed by the Oiltanking European Commercial and Business Development team, a large cross-functional Marquard & Bahls project team has been working for more than half a year to bring this project to a successful close. The deal shows exactly what can be achieved by utilizing in-house expertise and working strongly together.

To underline the importance of the acquisition of theAntwerp Gas Terminal, the Supervisory and Executive Board decided to hold its annual offsite Supervisory Board meeting in Antwerp this year and visited both terminals OTAGT and Oiltanking Stolthaven Antwerp.

OTAGT is one of Europe’s largest independent LPG and petrochemical gas terminals, and complies with the highest quality and safety standards. With an existing capacity of 138,400 cbm, it offers storage, throughput and distribution services for both pressurized and refrigerated LPG and petrochemical gases. The terminal is located in one of Europe’s

largest harbors, the Port of Antwerp, which connects the site with the most important chemical and petrochemical clusters while also providing direct access to the North Sea. Deepwater access (which can be further deepened), as well as pipeline, waterway, rail and road connectivity provide ideal supply-chain links.

OTAGT is now being integrated into Oiltanking according to the post-merger integration (PMI) plan. The

process of integration is in full swing.

The acquisition has not gone unnoticed in our industry. As part of the acquisition, Oiltanking and its Regional Commercial team will focus on further expanding the terminal, in the process combining the long years of operational experience and professionalism of both organizations.

CONNECTIONS 11CONNECTIONS10

E U R O P E E U R O P E

WELL POSITIONED The recent acquisition will strengthen Oiltanking’s leading position as a provider of tailor-made tank storage services

By acquiring the Antwerp Gas Terminal N.V. on July 6, 2016, Oiltanking enhanced its position as a leading global independent storage partner for gases.

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When you take the German A4 motorway towards Gera almost the first thing you will see are Oiltanking’s tanks. Since the end of August 2016 one of the large tanks has been attracting added attention due to its 80 square meters large advertisement for two universities – SRH Gera University of Applied Sciences for Health and Gera-Eisenach University of Cooperative Education. The latter has only recently been “promoted” from its status as a “Berufsakademie” (vocational academy) to a “Fachhochschule” (university of applied sciences); a fact of which the city is justly proud.

The advertisement’s text is not its only knowledge-related aspect – both the installation of the ad and its manufacturing were a “science” in themselves. The self-adhesive film is made up of 16 individual sections which were printed using an environment-friendly ink. After tank No. 32 had been prepared for the adhesion process, an employee from the digital printing company (with a head for heights) installed the film from a lifting platform.

To date, the best-known universities in the Thuringia region

have been those in Jena, Weimar, Erfurt and Ilmenau. The advertisement is part of a campaign to promote Gera as a place to study. Oiltanking has been assisting the city of Gera in its efforts to promote itself for many years now. For example, through tank advertising for the Gera-based “Goldener Spatz” (Golden Sparrow) German Children’s Media Foundation (film festival for children’s films and TV). The city is also the proud bearer of the title “Home of Otto Dix” – an allusion to the fact that it is the birthplace of

famous German painter and printmaker Wilhelm Heinrich Otto Dix* (1891-1969). It goes without saying that Oiltanking also provides space to advertise this fact on one of its tanks!

The Oiltanking press release reads: “Oiltanking GmbH is pleased to announce that its subsidiary Oiltanking Copenhagen A/S has enhanced its position as a leading provider of jet fuel storage capacity at Copenhagen Airport by acquiring the former Shell terminal on the island of Prøvestenen in Copenhagen.” It takes just seconds to read it, but finalizing the deal was a long drawn-out process. Why did it take five years?

When Shell decided in 2009 to sell their depot and Oiltanking Copenhagen (OTC) entered the picture, the initial proposal was to acquire the assets for a symbolic amount, with OTC assuming the environmental cleanup liabilities in return. However, this approach required the consent of the Copenhagen port authorities. Based on an old investigation report, the Copenhagen port authorities insisted on a guarantee by the parent company.

Intense discussions ensued, and lengthy negotiations which finally culminated in an agreement late last year. Now it was possible to re-engage in negotiations with Shell about the acquisition of their assets as well as discussing the required land-lease agreement with the port authorities. Good things are worth waiting

for! Eventually, on April 26, 2016, the Assets Purchase Agreement was signed with Shell and on August 16, 2016, the land lease agreement.

OTC has been busy with detailed investigations of the state of the facility. Discussions are also underway with potential customers, to build a business case for bringing the 73,000 cbm capacity back into service. Again, this will be a time-consuming and laborious process. But the new terminal will further enhance OTC’s position as a leading provider of jet fuel storage capacity at the airport, while the new pipeline connection creates a much needed redundancy option.

CONNECTIONS 13CONNECTIONS12

E U R O P E E U R O P E

PATIENCE PAYS OFF The Asset Purchase Agreement for the Shell

depot in Prøvestenen was finally signed after five years of negotiations

WORDS OF WELCOME The advertisements on the side of the Oiltanking tanks promote the city of Gera’s image

As of September 1, 2016, Oiltanking Copenhagen is the owner of the former Shell depot on Prøvestenen, which has pipeline connectivity to the Copenhagen airport supply system. The acquisition strengthens Oiltanking’s position as a leading provider of jet fuel storage capacity and logistics in Denmark.

PrøvestenenPatience + Perseverance = The latest

* Wilhelm Heinrich Otto Dix is considered to be one of the most important artists of the 20th century and a leading figure of the "Neue Sachlichkeit" (New Objectivity) movement. He is particularly well-known for his harshly realistic depictions of Weimar society and the brutality of war.

“Product Placement”

A SCIENCE IN ITSELF A lifting platform was used to install the self-adhesive film on the side of the 25,000 cbm capacity Oiltanking tank

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CONNECTIONS 15CONNECTIONS14

Over the past few years, Oiltanking has experienced continuous, worldwide growth. This not only means more colleagues and assets, but also increased organization, coordination, and responsibilities. In order to facilitate communication and workflows and guarantee the integrity of Oiltanking’s assets, the Assets & Operations (A&O) department was established in Hamburg, and the former "Central Engineering" department integrated into it. The A&O department has been undergoing a continuous development process ever since.

Today the A&O team at the head office consists of 15 colleagues. Nearly all of them have extensive professional experience in their respective disciplines. Some colleagues have worked for Oiltanking for over 20 years at multiple locations around the world. The team also sports an interesting mixture of nationalities: American, Belgian, Bolivian, Dutch, German, Singaporean, and Venezuelan. The scope of individual duties within the department are equally varied – but everyone on the team works with a view to making the A&O department the central competence center to support all A&O functions worldwide across the Oiltanking group, from engineering and operations excellence to compliance and business systems.

The department’s vision is to support the development and integrity of Oiltanking’s business

assets by utilizing cost-effective, sustainable and proven technologies. In order to achieve operational excellence and outstanding safety performance – always in compliance with legal and corporate requirements – best practice processes have to be implemented. How can this be achieved?

To begin with, the A&O organization and functions are being reviewed in order to reach a consistent approach in A&O standards as well as processes and project management. The challenge is obvious: Each terminal is different and comes with its own requirements.

Assisting with engineering projects worldwide is an obvious task, but there are also numerous additional ambitious initiatives and projects in the pipeline, such as “Review/update the Building Specifications", the production of an “Operations Manual”, “cyber security for process automation”, and “developing e-learning modules”, to name just a few. By the end of the year, two elaborate

P E O P L E & P L A C E S P E O P L E & P L A C E S

… IN ASSETS & OPERATIONS

WE CAN, WE CARE …

The department’s vision is to support the

development and integrity of Oiltanking’s

business assets

PORTRAIT Yvan Tavernier joined Oiltanking in 2013 as Managing Director of Oiltanking Stolthaven Antwerp. Since 2016, he has worked at the head office in Hamburg as Director Assets & Operations, Oiltanking GmbH. He and his Greek wife have three children; his sources of inspiration include Nelson Mandela and Philippe Starck. Yvan loves design and art, and paints in his free time, in watercolor and oil.

Motivated and dedicated employees around the globe are the basis for the success of Marquard & Bahls and its subsidiaries. Though they may work in different departments, all employees have one thing in common: They are all instrumental in ensuring that both internal and external processes run smoothly. This directly supports Oiltanking, as its terminals and other facilities have to run smoothly in order to keep the business going. With 81 terminals in 23 countries across the globe, this requires a great deal of organization adherence to best practice. In the following, we introduce you to the Assets & Operations team at the head office in Hamburg. With the support of their colleagues around the world they take care of the group’s assets and operations, as the name of their department implies.

CENTER OF COMPETENCE IN ALL A&O MATTERSThe Assets & Operations team in Hamburg currently consists of Andreas Dykierek, Fred Klaiber, Oliver Stanelle, Rob Eijkholt, Stefanie Braun, Mauricio Orias, Regina Schweißfeld, Alexandra Makarenko, Yvan Tavernier, Uwe Lütjens, Sandra Fernández, Serena Lee, and Roger Porteles (from left); Ilario Falo and Tiran Lopez were away when the picture was taken

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What was the most challenging phaseof your project?Mauricio: During the first phase of the project, the negotiations were the most demanding part. There were three contracts regarding the investments, shareholders and Operations & Maintenance agreement, that needed to be evaluated in a period of just three months. We worked many hours a day, seven days a week to finalize them to everyone’s satisfaction and on time. In the second phase, we had to set up the organization, hire and train personnel, prepare all the procedures, manuals etc., again in a very limited time.Franklin: I totally agree with Mauricio. The clock is always ticking and so many things need to be done. This is especially difficult when things are out of your hands and therefore not controllable. We had very little time to get the permits to start operating, and had to work closely with the authorities in order to comply.Leddy: For me the recruiting and hiring of personnel was very tricky, as the starting day was under the client’s control. We had planned to hire key positions six months in advance, to ensure enough time for adequately training the personnel. However, the starting date changed several times …

How did you manage to keep yourself and your team motivated?Mauricio: These projects tend to be like rollercoasters, with highs and lows. Fortunately, our team was very motivated from day one to expand our presence in Brazil.

Setting clear objectives, scheduling, keeping the communication channels open, and working as a team were all crucial, as well as staying calm and focusing on key issues. Leddy: Communication and respect are two important motivation triggers. As the start-up was part of our Operations and Maintenance contract, we did not have much influence on the construction milestones. So keeping people updated about the latest deadlines and requirements was very important.Franklin: What keeps us going is the understanding and awareness that our job is not only important for ourselves and our families, but contributes to the development of our country and its economic growth.

What kind of experience did you gain from the project?Leddy: You cannot hurry things. E.g. newly hired people, as motivated as they might be, need time to get to know their new tasks, company culture etc. It is reassuring to know that senior colleagues at other Oiltanking terminals will lend a hand to people just getting started.Mauricio: The most important thing is to plan the necessary activities and resources ahead of time. We all enriched our knowledge base by being exposed to new and multiple tasks which were not necessarily our field of expertise. Franklin: Our other nine Peruvian terminals are located far from other facilities and have practically no competition. But here we had to compete for customers, so we faced different challenges and gained new experiences.

L AT I N A M E R I C A

LEDDY EVANGELISTA Managing Director Oiltanking Colombia: start of operations

at the terminal in Puerto Bahía, Colombia, 18 months

MAURICIO PRUDENCIO Executive Director Oiltanking Terminais: start-up of the terminal in Açu Port, Brazil, 10 months

FRANKLIN MUÑOZ General Manager of Terminales del Peru: takeover of the terminal in Callao, Peru, 8 months

Patience is often of the essence when pursuing new projects at Oiltanking. Curious about how they kept processes going, we asked three colleagues from Latin America three questions each. Here are their answers regarding their respective projects and the time needed to realize them.

Worth The Wait

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projects will have been rolled out world-wide: "Alarm Management", and "KeyPerformance Indicators (KPI)".

The spectrum of tasks handled by the A&O department is closely interwoven with the HSSE department’s area of responsibility, so the two departments work together closely. To maintain ties with colleagues from abroad and exchange knowledge, colleagues from the A&O head office meet with the Regional A&O Managers on a quarterly basis. Site visits ensure that the department stays in touch with the colleagues on the various terminals around the globe. An annual Engineering Managers Meeting ensures that the technical side of things is covered also.

“We have a lot on our agenda and it takes time to coordinate worldwide processes. But knowing that we can make a difference as we help other colleagues to enhance safety, transparency and

integrity by improving their processes and standards, keeps us motivated,” says Yvan Tavernier, Director A&O.

For information about a current A&O team project, see “From LOTO to LTT” on page 36

P E O P L E & P L A C E S

The spectrum of tasks handled by the A&O department is closely interwoven with the HSSE department’s area of responsibility

MEETING From September 18-20, 2016, the global A&O management team came together at an offsite location at the Baltic sea to work on the A&O Manifest 2020 based

on the Oiltanking strategy 2020. From left: Randy Carroll, Tiran Lopez, Martin Redivo, Yvan Tavernier, Yeong Kwek Leong, Sanjay Dawar, Andrew Drayton, Oliver Stanelle, Rob

Eijkholt and Ansgar Maurer (Jeroen Lagerwij was present but not portrayed)

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C1 to C4 gasses

20°C

C5 to C9 naphta

70°C

C5 to C10 petrol (gasoline)

120°C

C10 to C16 kerosine (paraffin oil)

170°C

C14 to C20 (diesel oils)

270°C

C20 to C50 (lubricating oil)

C20 to C70 (fuel oil)

>C70 residue

600°C

liquefied petroleum gas

chemicals

petrol for vehicles

jet fuel, paraffin for heating

diesel fuels

lubricating oils, waxes, polishes

fuels for ships and industrial processes

bitumen forroads and roofing

fractionatingcolumn

fractionsdecreasing indensity andboiling point

crude oil

fractions increasing indensity andboiling point

Oils, petroleum products, chemicals, biofuels and gases are the substances Oiltanking handles on a daily basis, around the world.

Many of these substances are produced by refining petroleum. Petroleum refining is an elaborate process to separate out the various hydrocarbon fractions* from crude oil (unprocessed oil), also called petroleum. The basic five refining processes are:

� separate (by distillation or absorption),� crack (breaking large chains of molecules into smaller ones),� reshape (rearranging of molecular structure)� combine (combining smaller molecules to make larger ones)� treat (chemical removal of contaminants)

The hydrocarbons (compounds) differ in their hydrocarbon chain lengths, resulting in different boiling points: The longer the chain, the higher the boiling point. Refiners lump certain compounds into groups called fractions. The oldest and most common way to separate them is fractional distillation: basically, you heat up (boil) crude oil (in the fractional distillation column). As the vapor rises through the trays in the column, it cools down and condenses to form a liquid. The various liquid fractions are collected in trays, and may then be passed to condensers for further cooling before they are transferred to storage tanks.

However, very few components coming out of the fractional distillation column are ready for the market. Many of them require further chemical processing (e. g. reshaping, combining) into other fractions. Distillated and chemically processed fractions are then treated to remove impurities, such as organic compounds containing sulfur, nitrogen, oxygen, water, dissolved metals and inorganic salts. After being treated, the fractions are cooled and then blended to make various products. Eventually, some of these products are brought by vessel, pipeline, train or truck to one of Oiltanking’s terminals.

L E X I C O N L E X I C O N

The Petroleum Refining Process

THE REFINING PROCESS From crude oil to end product, due to temperature difference across the fractional distillation column (hot at the bottom, cool at the top)

* Hydrocarbons contain a lot of energy. They are molecules that contain hydrogen and carbon and come in various lengths and structures.

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While compliance with laws and regulations is a given for our companies, it can be difficult to stay on top of the constantly emerging new rules and regulations across regional, national and international borders. To ensure legal compliance and integrity, a key element in its core values, IOT initiated Project Enforce. The name refers to the Enforce Plus compliance tracking software. Designed by the globally leading audit firm Price Waterhouse Coopers (PWC), Enforce Plus has been implemented in numerous companies across a wide range of industries. PWC was brought in to support IOT with the implementation of the software, which will help:

• ensure comprehensive coverage of applicable compliance obligations• clarify compliance-related responsibilities• increase awareness and accountability at operating levels• send out proactive alerts to eliminate missing of compliance deadlines• facilitate centralized monitoring and reporting• provide automated reporting of compliance status, instead of manual compilations.

Project Enforce kicked off in December 2015 when the Enforce Plus software was rolled-out to the IOT headquarters, as well as its 16 terminals and three project sites. Department heads helped to prepare a comprehensive checklist of laws and regulations across various departments, i.e. Human and Industrial Relations, Health, Safety, Security and Environment

(HSSE), Tax, Information Technology, and Finance, and other industry-specific areas of the company.

Based on these discussions, PWC compiled a list of Laws applicable to IOT – Corporate, EPC and Terminalling areas, which was followed by a creation of compliance checklists for each department/site. PWC and the department heads also compiled a list of IOT personnel who would ‘submit’ (update completion of compliance tasks) and ‘approve’ (review/confirm completion of compliance) in the tool.

PWC then ran a User Acceptance Test to check connectivity and access to the tool across IOT’s locations in India. This was followed by training sessions for all users and central administrators to familiarize them with the new program. Since its launch, its users have been busy updating compliance details in the system and have extended their full support to their colleagues entrusted with ensuring timely compliance.

Enforce Plus will help IOT to achieve Compliance Excellence by facilitating timely adherence to all legal compliance requirements. It is also a value-adding tool as it empowers IOT to take proactive measures. And finally, the emphasis on ethical conduct underlines IOT’s cherished core value, integrity.

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ENFORCE

I N D I A

TRANSPARENCY The automated tool will help users to stay abreast

of complex and constantly evolving regulations

A newly implemented automated web-based tool called Enforce Plus helps IOT to ensure compliance with laws and regulations, and to underscore one of its core values, integrity.

PROJECT

Turkey and India may be many miles apart, but the IOT-VITO (IVT) workforce agrees that children all over the world deserve to be treasured. And so, like its parent company IOT in India, IVT runs Corporate Social Responsibility (CSR) projects in Turkey that provide children with better facilities at school or at home.

IVT’s CSR team began their outreach program in November 2015, at a school in Aliaga, near the terminal they are building. The team donated a new floor-cleaning machine in hopes that the children would be able to study in a cleaner environment.

Six months later, IVT revisited the same school, this time equipped with boxes of crayons and drawing paper. The colleagues led the children in a drawing workshop themed around hygiene and cleanliness. The colorful drawings showed how the topic has become a cherished value for the children, and the artists were rewarded with certificates of appreciation.

A little appreciation goes a long way to building confidence in children. When material encouragement is added in, their self-confidence grows by leaps and bounds. During one of their visits

to Aliaga, IVT’s CSR team watched an inter-school sports tournament at another school. A team of children from underprivileged families put in a great performance despite lacking proper sports gear to practice with. IVT contacted the school administration to request a list of sports the children enjoyed. Then, on April 23, 2016, which is Children’s Day in Turkey, the colleagues presented the

schoolchildren with an assortment of cycles and sports gear. They hear that in the months that have passed since, many of the children have been passionately practicing their favorite sport. Doing so has not only improved their game, but their attendance, academic performance and overall happiness as well.

While the colleagues did hope that their efforts would create some happiness for the students and staff, the warmth and love they received in return exceeded anything they could have imagined. The smiles they put on the children’s faces will endure in their memories long after their work on the refinery project has been concluded.

I N D I A

SELF-EXPRESSION The children painted vibrantly across all linguistic barriers

A "CLEAN" MESSAGE The new floor-cleaning

machine paves the way for more cleanliness

IOT-VITO has already achieved several important milestones in their business project in Turkey*. But their social projects count as special “smilestones”.

“Smilestones” in Turkey

* In September 2014, IOT and its joint venture company, IOT-VITO, won a contract for the engineering, procurement, and construction (EPC) of tanks for the STAR Refinery at Izmir, Turkey.

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The Oiltanking terminal in Cartagena, Colombia, takes its energy consumption very seriously, and has now taken another step in embracing solar energy. The benefits are twofold: The step helps to save energy, and makes the terminal less dependent on the public grid.

Oiltanking Colombia’s “Innotanking” innovation program has been the source of many ideas, including how to use available resources to reduce waste and/or to improve the company’s sustainability scorecard. The latest proposal involved relying more heavily on the sun as a source of energy. With up to 12 hours of sunshine per day, this is clearly a bright idea.

Since July 2016, the Oiltanking office building in Cartagena has generated its own electricity thanks to sixty 260-watt solar panels newly installed on the roof. They can produce up to 2,000 kilowatt-hours of electricity per month, or 40 percent of the building’s actual monthly energy consumption. The terminal’s first – and highly gratifying – experience with solar energy dates back to 2012, when the truck loading station was outfitted with solar panels to power the LED lights that illuminate the loading area.

The fact that Colombian public policy now encourages the use of green technologies and especially solar energy, combined with the high cost of electricity, was - beyond increasing environmental consciousness - another trigger in the search for (cost-) reducing energy solutions. In this connection, Oiltanking Colombia decided to step up its use of solar panels to reduce its energy consumption and consequently reducing its carbon footprint as well as operative costs.

Several other innovative ideas concerning the use of solar energy have also emerged thanks to Innotanking, including the idea of using it for certain control instruments (located far away from the connection points), which is currently being reviewed. If it is technically feasible, this will provide a more practical and inexpensive solution. It will be exciting to see what else will come to light in the future under the nurturing rays of the Innotanking program at the Cartagena terminal!

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L AT I N A M E R I C A

“THE SUN BELT” 60 solar panels generate a considerable proportion of the energy used at the Oiltanking office building in Cartagena

A Placein the

In 2014 Marquard & Bahls rolled out a program to advance the recruitment and development of young talent across all subsidiaries, divisions and national boundaries: FUEL (my Future in Energy & Logistics). During the past twelve months, two young colleagues have enhanced their skills and knowledge at the Oiltanking terminals in Colombia through FUEL.

Andres Gerena from Colombia and Maximiliano Vedoya from Argentina both rotated through several departments, giving them the chance to interact with a variety of personnel to stimulate their learning and understanding. They were actively involved in the day-to-day business and participated in various projects at the Mamonal and Puerto Bahía Terminals, where they provided valuable input for the Innotanking innovation program and made valuable contributions to studies on working hours and tank-truck dispatching, to name just a few examples.

So the FUEL program doesn’t just benefit the trainees, who gain essential experience. Oiltanking Colombia recently conducted a survey in various departments at the two terminals. The colleagues unanimously indicated that the trainees’ fresh thinking sparked practical solutions and ways of looking at the problems presented. Their drive and dedication, coupled with their analytic skills, resulted in very useful proposals for improvement.

Oiltanking believes that the FUEL experience will help to build young leaders. The participating talents and their multidisciplinary approach, combined with the knowledge of senior colleagues, will help the company to meet its strategic objectives going forward.

Maximiliano Vedoya “I came here as part of my second stage of the FUEL training program. From day one, the personnel in Colombia all made a huge effort to make me feel comfortable. As part of the program I passed through different areas of the company, with a focus on the project and engineering departments. I was allowed to actively participate in the daily activities. While I learnt a lot from them, I also felt that I was able to contribute significantly and help out if only by putting forward a different point of view.”

Andres Gerena “I had a mentor who set really interesting yet challenging goals. The most remarkable experience was working as an operator. Performing the tanker operations at 45 °C while listening to our personnel’s stories made me appreciate the work they do. In summary, I gained extraordinary and immeasurable experience at Oiltanking, on both a professional and personal level.”

The incorporation of new talent through the international, centrally coordinated trainee program named FUEL (my Future in Energy & Logistics) has created a positive impact at Oiltanking Colombia.

in COLOMBIA“FUEL”

L AT I N A M E R I C A

“Interacting with different areas and personnel was fruitful for

everyone involved“

“I feel proud and privileged to be one of Oiltanking’s first FUEL trainees in Colombia“

ANOTHER BRIGHT SIDE The truck-loading station at the Cartagena terminal uses solar

energy for its LED lighting

Sun

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The T-Oil transshipment terminal is the first independent ship-to-ship terminal in Brazil, located close to the two main offshore crude oil basins (Campos and Espirito Santo) at a distance of approximately 150 km from Açu Port. On August 29, 2016, T-OIL carried out its first oil transshipment operation between the vessels Bossa Nova Spirit and SKS Sinni. After 17 hours of pumping an average of 9,350 cbm per hour, both vessels were ready to depart again.

How does transshipment work? While one ship is moored on the quayside, the other one stands alongside. Bothare surrounded by containment barriers. The operation takes place inside the jetty, enabling safe and quick procedures, all year long.

T-OIL currently has a depth of 20.5 meters, which allows it to receive Suezmax vessels. Its depth is being expanded to 24.5 meters by the end of 2017. This greater depth will enable Açu Port to receive Very Large Crude Carriers (VLCC) for up to 320,000 tons at T-OIL. The terminal’s North and Central berths will be equipped for transshipment between VLCC and Suezmax ships,

while the South berth will offer transshipment between Suezmax ships only.

“The onshore transshipment operations are the first phase; the second phase, the construction of an onshore terminal, is on our priority list. We have already started prospecting potential clients,”

says Mauricio Prudencio, Executive Director Oiltanking Terminais, talking about the company’s plans for the future. “T-Oil offers a safe and responsible solution. In addition, our operation provides cost savings for clients and will increase the competitiveness of Brazilian crude.”

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L AT I N A M E R I C A L AT I N A M E R I C A

TRIUMPHANT DOCKING MANEUVER The SKS Sinni berths at the T-Oil

terminal for transshipment

READY FOR BUSINESS The berth's depth allows to receive Suezmax vessels

On August 29, 2016, Oil Terminal (T-Oil), operated by Oiltanking Açu Serviços, successfully carried out its first transshipment operation at Açu Port, Brazil - an important milestone for Açu Port.

SuccessfulFirst Transshipment

TRANSSHIPMENT Please scan the QR code in order to watch

a video about Port Açu

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Oiltanking’s Terminales del Peru terminal in Callao, Peru, is an interesting case study in integration processes. A human one with colleagues joining a new team and terminal, and a geographical one in Lima and Callao, as well as Peru as such.

The Callao terminal is the largest of the eleven storage terminals operated in Peru by the GMP-Oiltanking consortium. Its current capacity is 170,000 cbm, but with an expansion of 55,000 cbm in the works and a second expansion of additional 30,000 cbm under discussion, the total storage volume in Callao is expected to increase to 255,000 cbm by mid-2017. The terminal handles a variety of fuels including gasoline, jet fuel, diesel, IFO and LPG, of which it handles more than 175,000 cbm monthly. The terminal supplies 33 percent of the fuels consumed within

its catchment area. It is connected to a railway network and its own dock inside Callao port. This port has the advantage of operating 24/7, 365 days a year, as compared to the rest of the ports and berths of Peru which are subject to unpredictable closures due to bad weather conditions or raging seas (mainly in winter).

During the first months of this year, Callao Terminal opened its doors to two new customers who wish to enter the local market and who are the driving force behind the planned

expansions. Based on these customers, the prospect of providing ancillary services, and its excellent team spirit, our colleagues in Callao are confident about the future of their business.

Callao on the shores of the Pacific Ocean in Peru has been one of the most important ports of South America since colonial times. It is built on and around a peninsula and includes several islands, and today is one of the six districts that make up the Constitutional Province of Callao. So Callao is not only the name for the old downtown area but also for the district and the entire surrounding region. Together with the Province of Lima, it forms the Lima-Callao Metropolitan Area. Although they are separate administrative provinces, Callao and Lima are linked in many ways: socially, culturally, historically, and of course economically. Today Callao is Peru’s #1 port in terms of traffic and storage capacity. It is still one of the most important ports in Latin America, ranking 7th in 2015. It is also the 3rd-biggest in South America (after Santos and Cartagena), and #1 in the South Pacific region.

Callao is also the site of a terminal that became part of the Oiltanking network in September 2014. At the time, the Terminales del Perú consortium (equally owned by Oiltanking and its partner Graña y Montero Petrolera – GMP) won the bid for a 20-year operations & maintenance (O&M) contract with the state-owned oil company Petroperú. This involved the Callao terminal team joining Terminales del Perú. Thanks to the enthusiasm, professionalism and dedication of everyone involved, the integration went smoothly, allowing for an uncomplicated, safe transfer of operations right from the start. Also, the team’s commitment to safety and operational excellence allowed the terminal to surpass its previous safety record, racking up more than 1,000 days without disabling accidents – a feat they have every reason to be proud of!

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L AT I N A M E R I C A L AT I N A M E R I C A

VERSATILITY With the variety of products handled and 24/7 harbor operations all year long, the

terminal in Callao is very convenient for clients

Smooth Operation

THAT'S THE SPIRIT The colleagues make a great team that looks confidently ahead

Bogota

PERÚ

BRAZIL

ARGEN-TINA

IloMollendo

Matarani

JuliacaSan Nicolas

Pisco

CuscoConchanCamisea NGLPipeline

MalvinasLima Office

La Pampilla

Supe Camisea GasPipeline

Chimbote

Salaverry

EtenBRAZIL

COLOMBIAECUADOR

PERU

OTAS ParacasMarine Berth

LQS

Callao

Consorcio Terminales (CT)Terminales del Peru (TdP)Logistica de Quimicos del Sur (LQS)

citiesTerminalPipeline Gas & NGLOiltanking Andina Services Paracas Marine Berth

TdP

TdP

TdP

TdP

CT

CT

CT

CT

CT

CT

TdP

LQS

TdP

CHILE

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DoRIS will help you organize yourself and keep your house in order, review your processes and rethink your structures. What sounds like an extremely helpful new colleague is in fact the successor to OTIMS (Oiltanking Integrated Management System): an electronic system used for organizing our document management and reporting, custom-categorized to reflect our processes.

Oiltanking’s management decided to replace OTIMS with a system that is user-friendlier, less costly, and easier to handle – and preferably an in-house development. An interdisciplinary team from Oiltanking in Hamburg joined with Marquard & Bahls colleagues and the IT department in working with regional Oiltanking representatives to develop a system that would meet these criteria.

Processes form the heart of DoRIS. Its setup defines which departments are responsible for and participating in each of the management, core and support processes. The documents are then sorted accordingly, automatically

assigning the respective responsibilities. Many of our terminals are certified to international standards, such as ISO 9001, or are planning to undergo such a certification.

Management Systems are not electronic systems but a way of working that affects all of an organization's processes. So, although DoRIS itself is not the management system, it serves as a valuable tool to better manage documents related to the management system, and automatically carries out workflows related to this document control. It provides a structure for storing, revising, approving and distributing documents in accordance with the Deming Cycle, or PDCA: plan, do, check, and act. A terminal running DoRIS should essentially be prepared for an internal or external audit at any time.

The first terminals to actively use the tool are Oiltanking Logistica Brasil and Oiltanking Columbia, with Oiltanking Asia Pacific, Oiltanking Calulo, Oiltanking

Deutschland and Oiltanking GmbH now preparing for roll-out and the ARA region to follow soon.

So if you are looking for a tool that can help you control your documentation related to management systems – meet DoRIS and make her part of your team!

When these children sing together, you can hear the enthusiasm even through closed doors. Since 2015, Oiltankling Ebytem has sponsored the Children’s Choir of Punta Alta, Argentina as part of its Corporate Social Responsibility (CSR) efforts. Led by former professor and composer Valeria Llaría, the choir provides a cultural space for children aged between four and 18 in the Punta Alta community. Meeting and playing music together keeps the children occupied in their free time, nurtures their musical and creative side, and improves their vocal training – and their self-esteem, as they have already earned some accolades from the community!

The choir was inspired by the work and spirit of Haydee Ferreti, a renowned professor who used to lead a number of choral groups in the city. Today Valeria Llaría carries on Ferreti’s legacy, and never tires of emphasizing the crucial role music plays not only for the participating children, but also for their families, and in human communities in general.

Oiltanking agrees wholeheartedly. And because it also believes that social commitment to the community helps establish a trustful relationship with local people, the Puerto Rosales Terminal once again sponsored the Punta Alta Children’s Choir this year.

Music � increases a child’s attention span� helps develop a child’s listening skills� stimulates the brain� relieves stress� is fun to listen to

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With Full Voice

L AT I N A M E R I C A E U R O P E

In September 2016, Oiltanking Logistica Brasil became the first Oiltanking site to use the Group’s new Document Reporting Internal System, or DoRIS. It will gradually come to replace the Oiltanking Information Management System (OTIMS) formerly used by colleagues around the world.

Meet DoRIS

EAR CANDY The choir has already earned numerous accolades performing at public

events in the city and environs

Oiltanking Ebytem continues its sponsorship of the Children’s Choir in Punta Alta, Argentina, reiterating its commitment to supporting the community.

COMPLIANCE MEETS CONVENIENCE

All important management documents will be readily available around the clock

thanks to DoRIS

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“Moin, moin!” I greet you with a phrase which is a typical Low-German salutation. I heard it for the first time when I arrived in Hamburg in July 2016. By now I know that it means not only “Good morning” but can be used throughout the day. Why some say “moin” and others “moin, moin” I will figure out sooner or later! Just like all the other things I’ve come across since joining Oiltanking in June 2016.

In June 2016, I was hired by Oiltanking in Singapore,

where I was born and raised. Signing my contract meant not only taking up a new position but also moving to another country (one I had never had the chance to visit yet). The journey of adaptation, moving and settling – both professionally and personally – has been challenging but exciting.

It is interesting what kind of impressions one absorbs immediately when abroad. Mine is that the weather is a huge deal in Hamburg. When the skies are blue

and sunny, people flock outside to al-fresco dining areas or bask in the sun on their picnic mats. I find the notion invigorating – enjoying the best of everyday. From the office, we too make the best of our lunchtime. One time, when we were still at the old office building and the skies were really clear, we took a quick lunch and headed to nearby St. Michael’s church (the “Michel”). One could climb up to the top but we took the lift (there are 453 steps!) and had an

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PORTRAIT After earning her degree in Chemical Engineering, Serena Lee spent several years working in project development, and gained broad experience in process design and safety. In June 2016, she was hired by Oiltanking and has since worked as Senior Process Safety Manager Assets & Operations at the office in Hamburg.

EAST

1 The City Hall, built in 1897, has an impressive and eclectic architecture 2 Labskaus: a culinary speciality in Hamburg 3 Serena developed a thirst for sparkling, non-alcoholic beverages 4 New landmark: the concert hall Elbphilharmonie 5 Harbor rounds trips are particularly popular by tourists

Serena Lee, our colleague from Singapore, has worked as Senior Process Safety Manager Assets & Operations at Oiltanking GmbH in Hamburg, Germany since July 2016. Over the past few months she has gone through a lot of “familiarization processes”…

C U L T U R A L E X P E R I E N C E S C U L T U R A L E X P E R I E N C E S

1

4 5

3

2

WEST Meets

in Hamburg

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excellent panoramic view. A nice and different way to see Hamburg. Coming from a country with pretty homogenous weather all year round, I have also learnt to be better (and more fashionably) equipped for any weather changes on a daily basis.

Another topic that often matters when you are in a foreign country is food. Moving beyond the (in)famous Curry Wurst*, Labskaus** and other typical delicacies, the cuisines and cooking ingredients available in Hamburg are international. After a bit of searching I found Natto beans in a small Asian store! I too have developed an affinity to sparkling non-alcoholic anything and have started to concoct my own ”schorles” (spritzers). Of course, I collect the plastic bottles as there is a structured system for recycling with different bins and collection days for

different types of materials. There is no free and frivolous usage of plastic bags at shops or groceries stores. All-in-all, a very eco-friendly community which I appreciate.

As I still try to settle down in Hamburg so far my experiences center mostly around daily life in the city, which has a positive and efficient atmosphere. I look forward to many new discoveries and revelations about Hamburg and the German way of life and culture. And, I will try to learn at least bits of the German language. This brings me back to “moin, moin”. They say the word could derive from the Dutch meaning “beautiful” or “good”. Indeed I often hear my Dutch colleagues saying “mooi, mooi” when discussing things in Dutch and being in favor of something. So let me finish by saying “moin, moin” again - but this time with the Dutch connotation, as I love being in Hamburg. Living and working here is a great experience.

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C U L T U R A L E X P E R I E N C E S

6 Spectacular view on the top of the St. Michael's church 7 The Landungsbrücke (floating dock) is a traffic hub 8 Hamburg is also called "gateway to the world"

One of the issues associated with rapid urbanization in South Africa is the growing number of unemployed, destitute people. Right from the start, Oiltanking Grindrod Calulo (OTGC) has shown its commitment to enhancing the wellbeing of people in the community through a variety of projects.

The local Nelson Mandela Foundation has for years promoted the Mandela Day initiative to mobilize people into helping the needy: Since 2009, each year on July 18th – Mandela’s birthday – it has called upon citizens of the world to spend 67 minutes helping their community in any way possible to honor his 67 years of dedication to the defense of human rights and decency. As the Foundation states, the objective is to “inspire individuals to take action to help change the world for the better and in so doing, to build a global movement for good.” The day provides an opportunity for people to follow in the footsteps of Mandela and to demonstrate that togetherness and solidarity will prevail over the goals pursued by people interested only in themselves.

At 1 p.m. on July 27 in Durban and July 29 in Cape Town, OTGC employees had an opportunity to give back to the community in the spirit of Mandela Day and the 67-minute challenge.* The colleagues manned the soup pots, ladling out homemade soup to the residents of the surrounding communities. Four hundred loaves of bread were also distributed, along with refreshments, fruit and treats. A bowl of soup and some bread won’t

make the daily hardships of life in the community disappear. However, it is one way to show the community that we

think and care about them. And more importantly, the “soup kitchen” event brings people together to share food, have a chat and connect with each other. It may be just a bowl of soup, but as the Mandela Foundation stated: “Cumulative action, even starting with one small step, can be transformative.”

S O U T H A F R I C A

As part of its efforts to contribute to the welfare of the communities Oiltanking operates in, Oiltanking Grindrod Calulo Terminals (OTGC) has been involved in several Corporate Social Responsibility activities. A “soup kitchen” in honor of Nelson Mandela Day* is one of them.

Meeting the Nelson Mandela 67-Minute Challenge

WHAT’S COOKING OTGC colleagues prepare large pots with home-made soup

* Nelson Mandela International Day was launched in 2009 in recognition of Nelson Mandela's birthday on July 18, by a unanimous decision of the UN General Assembly. It represents a global movement to honor his life's work and act to change the world for the better

“It is in your hands to make of our world a

better one for all.” Nelson Mandela (1918-2013), South

African anti-apartheid revolutionary, politician, and philanthropist

* Curry Wurst: pork sausage with curry sauce** Labskaus: a dish made with potatoes and cured beef, mashed beet root, and accompanied with rollmop herrings

6

8

7

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P E O P L E & P L A C E S P E O P L E & P L A C E S

LICENSE TO GRILL On the occasion of its 20th anniversary, Oiltanking in Puerto Rosales hosted a big Asado for all

its employees and their families

Beefing Up on Argentine Asado

Argentina is famous for many things. One of them is Asado – the Latin American answer to barbecue, and yet so much more. Ana Inés Couto, Human Resources Analyst and Hernán Pirchio, purchaser, both at Oiltanking Ebytem, provide some insights into this cherished Argentine custom, along with tips on how to prepare the perfect Asado.

What exactly does “Asado” mean? Asado describes both: the social character of getting together with family, friends or people you like while enjoying a meal, and the cooking technique used to prepare the meat on such occasions.

What is the most important factor for a successful Asado?Asado is prepared in all Argentine homes. Of course the whole atmosphere of the Asado is important. But as for the meat offered, in our opinion there are three simple but crucial points: choose good quality, preparing and grilling it gently.

What kind of meat do you suggest then?Each asador (person in charge of cooking) has their own preferences, of course. The most common cuts are the “costillas” (ribs) and “vacío” (flank steak), but in a typical Argentine Asado, you can also find “achuras” (butchering by-products) like chorizo, morcilla (sausage made of clotted blood), chinchulines (intestine) and mollejas (glands). The achuras are usually offered first, as they cook faster than the other cuts. Usually, French fries or salads are served with the meat, although we personally prefer grilled vegetables such as pumpkins, potatoes, onions and peppers, roasted on the same grill.

How do you prepare the meat?The slow cooking process melts the fat cap and releases the meat’s tenderness and flavor. All you

need is a bit of salt; usually the meat is not marinated before grilling. The time to "turn the meat" is determined by the asador’s experience, the height of the grill, and the amount of coal. The cooking time also depends on the fattiness of the meat.

How do you get a perfect grill result?

You start your fire by making a stack of dry wood or charcoal on one side of

the parrilla (grill). The woods most used are the ones that burn at high temperatures for a long time and produce a lot of embers. Once the fire is made, it is kept burning throughout the whole cooking process, while regularly

shoveling hot embers under the gridiron from time to time.

Gasoline or other liquid accelerants are never used –

besides being dangerous, their use signifies a real embarrassment for a decent

asador! The art of an Argentine Asado lies in handling the height-adjustable grill: The asador has to raise or lower the meat over the embers to find the “sweet spot” where the meat will achieve perfect tenderness.

What are your tips for an aspiring asador?Invest in a good gridiron!! And try to remain relaxed and roast the meat as slowly as possible. Likewise, you yourself should take your time and try to stay cool (despite the heat!). Don’t give up if your grill results are not as optimal as you hoped for, and keep trying. Experience will guide you!

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Oiltanking’s Assets & Operations department in Hamburg, Germany, is currently updating and aligning the international safety procedures. The LOTO (lock-out, tag-out) procedure for handling hazardous energy is being updated to the more thorough LTT procedure (lock-out, tag-out, try-out).

there are specific guidelines that must be followed to ensure that the lock cannot be removed, and the system cannot be inadvertently operated. Each lock has only one key, a master key is not allowed. When there are multiple groups/disciplines working on a job, a lock-box is used to manage the keys, and the employees are afforded a level of protection equivalent to that provided by the implementation of of a personal lock-out and tag-out device.

When an energy source is isolated but cannot be locked, it is acceptable to apply a tag-out device only. In practice, a prominent warning tag-out device (usually a standardized, durable label) is securely attached to the energy-isolating device to indicate that the energy-isolating device and the equipment being controlled may not be operated until the tag-out device is removed. Tags do not provide the same level of physical restraint as a lock, so additional safety measures need to be in place. A verification tag, usually similar to a tag-out device in terms of the information it provides, is typically used in conjunction with a lock. Only the authorized person who placed the lock and/or tag onto the system is permitted to remove them. This procedure helps ensure that the system cannot be started up without the authorized individual’s knowledge.

In practice, during the tryout the colleague has to verify that the system is properly and adequately locked out with no residual energy before beginning any work. The LTT processes involve more than putting a lock on a switch and a tag next to it. They are comprehensive steps that involve the preparation of an Energy Control Plan that facilitates the coordination, verification and communication for both authorized and affected employees.

What is the purpose of these safety processes?

Oiltanking has committed themselves to the safe and efficient operation of its facilities. Starting in 2017, Oiltanking will enforce its efforts to systematically updating the LOTO procedure to LTT at all sites around the globe. Tryout puts an emphasis on an additional safety step to ensure that zero energy verification is not missed out in the LOTO process.

“LTT is a visible, real-time system. In conjunction with training and communication on the safety concept and rationale, it will increase safety awareness and help to enhance the health, safety and welfare of everyone at the workplace. 'Think, plan, check and communicate’ are investments in each and everyone’s own safety – whether you are ‘authorized’ or not. Remember: safety starts with you!” says Serena Lee, Process Safety Manager, Assets & Operations, Oiltanking GmbH.

A terminal by its very nature is full of equipment that contains hazardous energy in one form or another. Many safety barriers and shielding devices are in place to keep the employees safe during normal operations. But safety is also essential during non-operational activities, e.g. during maintenance or repair, as an unexpected energization, start-up or release of stored energy can cause injury. Serious accidents can happen when someone starts working on a machine with its power safely switched off, and someone else comes along and unwittingly restarts the power. The main method recommended and used in industry to ensure that hazardous energy sources are adequately isolated, with verified zero energy flow, and unable to start up again prior to completion of maintenance work is known as LTT (lock-out, tag-out, try-out). Besides electrical sources, where the LOTO (lock-out, tag-out) procedure was mainly applied, mechanical isolations are equally important, and for the same reasons.

How does the procedure work?

In practice, lock-out is the isolation of energy from the system (e.g. a pump) which physically locks it in a safe mode, e.g. the circuit breaker. In most cases these devices will have an attachable or built-in locking mechanism or integral part to which or through which a lock can be affixed. The locking device can be any device that has the ability to secure the energy isolating device in a safe position, e.g. a singularly identified padlock. When the system's energy sources are to be locked out,

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E U R O P E E U R O P E

From LOTO to

Lock-out – Isolate the energy source and physically lock the isolating device in the “off” or “safe” position

Tag-out – Isolate the energy source and/or communicate a condition or situation

Try-out – Test the energy state and administrative controls to ensure zero energy state

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connections

P R OC E S S

E SI N B U S I N E S S

A REAL CONNECTION For 28 years now, connections has connected people and information with a printed version

CheckHeadline

In the magazine’s history, two questions have arisen from time to time. Does a company

need its own magazine and – in this digital age – does a

printed version still make sense? In the case

of Oiltanking, the answer was and is yes to both.

connections is an important marketing and information tool that efficiently supports our external as well as internal communications. The magazine lends credence

to Oiltanking’s credo of "We Can, We Care" with its content, which combines business news with interesting, emotional, or

surprising human-interest stories. And, even though or perhaps precisely because digital

is everywhere, we are sticking to print. The paper (which in our case comes from sustainable sources), its tangibility and feel, make reading a printed version very personal. Perhaps you’ve noticed it in the past – we often give the cover a special finish to enhance the haptic and visual experience. A printed version can also change the way the magazine and its content are remembered. Neurological research has shown that people process information differently when it is presented in print vs. on screen. Print implies less distraction: the reader reads “deeper” (can read longer articles), which is conducive to deep thinking. Findings suggest that information from printed material may be more easily assimilated by the brain.

Anyhow, we hope you enjoy reading your personal issue of connections, perhaps pick it up again and again, and take it home to share it with your family.

People and Information

L E I S U R E & E N T E R TA I N M E N T

Oiltanking’s connections magazine has been sent out to customers and co-workers all over the world for 28 years now. Published three times a year and in three language versions (English, German, Spanish) connections strives to combine Oiltanking business news with interesting and entertaining information from all sorts of spheres. Read on to learn more about the making of an issue of connections.

Connecting

CONNECTIONS 39CONNECTIONS38

... that this is the 76th connections magazine?

... we need approximately four months for each issue? While you read this magazine, we have already started with our next issue for April 2017

... that the first issue had four pages (nowadays the magazine has an average of 48)

... that almost from the very start the rubric I Do's & Goo-Goos is presented to you once a year

... that all 76 issues have a grand sum of 1,772 pages?

... that in Spring 2001, besides the general connections a special "chemical connections" was issued ?

Did you know

76CONNECTIONS

CHEMICAL CONNECTIONS

4

L E I S U R E & E N T E R TA I N M E N T

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Before the printed version lands on your desk, connections

undergoes a long origination process and many people, all in

their own way, have contributed each at a time to guarantee

another interesting, discerning and immaculate issue.

Without their support, enthusiasm and patience publishing

connections would not be possible. Let’s have a look at the

(simplified) stages ...

L E I S U R E & E N T E R TA I N M E N T L E I S U R E & E N T E R TA I N M E N T

PLANNING During this process, the focus theme (in this issue: ‘Processes’) and possible topics are discussed and decided by the editing team in close agreement with the Managing Directors of Oiltanking

ORGANIZING Once all information is analyzed articles are drawn up, simultaneously also the search for pictures and request for publishing permission takes place

EDITING The texts are edited internally and externally before undergoing a second internal check to ensure that the editing hasn’t changed the content

COLLECTING Information and input is collected from contributors (colleagues and externals), at the same time additional research and search for background information takes place

LAYOUT Text and photos are forwarded to the graphic designer with explanations about the content and the focus theme of the issue; during the layout phase, any necessary adaptations to the text and pictures are made, and decisions on additional design elements (e.g. special print enhancements) are decided on

PROOFREADING A last internal review takes place to eliminate spelling mistakes, ambiguousness and inconsistencies – our colleagues from Marquard & Bahls Corporate Communication and HSSE are involved and share their experience and knowledge; finally: request for green light from the Board

PRINTING To guarantee excellent print quality, some proof prints are made before the actual printing process begins

DISTRIBUTION Hot off the press, the latest connections is distributed directly from the printer to customers and colleagues around the world

And by the time the newest printed issue actually makes it onto your desk, the process has started all over again, and work on the upcoming issue of connections is already in full swing!

CONNECTIONS 41CONNECTIONS40

How we do it

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Oiltanking’s “Take Five for Safety” program underlines how seriously the company takes the issue of workplace safety. First launched in 2008 at the terminals in Singapore and implemented worldwide in 2013, this five-step process remains highly topical. When a task becomes routine, we tend to just do the things we have done so many times before without much thought. But plowing mindlessly into the presumably simple task ahead increases the chance that something will go wrong. In 2008, the Singapore terminals introduced the “Take Five” program to tackle this problem. It defined five steps for an informal, on-the-job risk assessment. The program was designed to raise awareness for the potential risks of the job, especially those associated with underestimating routine activities, and to encourage everyone to take a short break before starting the work. In other words: to “take five” before proceeding. In 2013, the program was introduced by the Marquard & Bahls Health, Safety, Security and Environment (HSSE) department at all Profit Centers and terminals around the world, and managers were asked to mainstream the five-step approach in their teams. To promote the “Take 5 for Safety” concept, the HSSE department in Hamburg provided a

booklet that explains and visualizes the five

steps, as well as giving additional guidance on

positive behavior, identifying hazards, and controlling them.

The booklet is currently available in 15 languages, from English and Spanish to Finnish and Bahasa. Also, a whole suite of tools to promote “Take Five” has since been made available for the Profit Centers and terminals, including attention triggers like stickers and T-Shirts, as well as a pocket card. This card can easily be taken to the worksite and is also distributed to subcontractors and their workers. The front lists the five steps to be taken before starting the work, while the back shows further examples for identifying hazards. To make “Take 5 for Safety” an essential and living part of Oiltanking’s safety culture, the campaign also includes a training approach: A sample presentation for explaining and discussing the five steps during training sessions is available. “Take 5” is also an integral part of the computer-based Basic Operator Training introduced in 2014.Eight years have passed since the program’s

initial launch in Singapore but the need to remind us to take it slow, step

back and think before we do something, even if it is for

the one-hundredth time, is as valid today as it was on day one.

Europe For the fourth consecutive time Oiltanking Germany welcomed its employees and their families to a summer party, held on June 10, 2016 at the Hamburg tank farm. Could the success of previous years be topped? Given the bustle and laughter at the games stands, which included ladder golf, 3D jigsaws and laser shooting, there was no need to ask if the just under 60 attendees were enjoying themselves. This year’s highlight was undoubtedly bubble ball soccer, not to forget the face painting – which was popular not only with the younger guests! The big bouncy castle is on its

way to becoming a tradition, as is the collective barbecue in the evening. Everyone was having such a good time that time seemed to fly by – both for the “big” and the “little Oiltankers”.

NUMBER

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L E I S U R E & E N T E R TA I N M E N T

NutshellIn a

Europe Good things come in pairs, was Oiltanking Stolthaven Antwerp’s rationale as it organized its second Family Day of the year. The 70 participants, the youngest just four years old, met at a romantic castle in the beautiful countryside of Haspengauw, which also has a rich historical past. Here they were welcomed with a delicious breakfast before splitting up into teams and competing with each other in various events such as laser shooting, archery etc. A

healthy sandwich lunch revived the participants in time for a GPS hike during which they had to perform various small tasks, after which they enjoyed a delicious barbecue, and ice-cream for dessert. It was a day filled with highlights, during which colleagues had an opportunity to “work” with each other in a different setting and see each other’s families cooperating to achieve a goal.

India IOT held its Annual Strategy Meeting in Mumbai at the end of June 2016. Over two days, colleagues from IOT and Oiltanking GmbH discussed lessons from the past as well as emerging business opportunities. IOT’s future business vision through 2020 was presented, and the tone of the

meeting was positive, reflecting the confidence in IOT’s talent and capabilities as well as the economic outlook. As global economic growth slowly picks up speed, the Indian economy is seeing unprecedented growth, and the demand for oil will parallel it. In view of structural and

policy changes rolled out by the present Government, IOT is confident that its two businesses – Terminalling and Engineering, Procurment and Construction (EPC) – will be able to maximize the company’s value in terms of both cost efficiency and quality.

P E O P L E & P L A C E S

A DIFFERENT “DAY AT WORK” The colleagues got to know each other better

and had fun with their families at Family Day

FUN, GAMES AND STEAKS The summer party at the Hamburg tank farm offered something for everyone

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Most young children up to the age of about five years are not able to fully coordinate the movement of their vocal apparatus, i.e. the lips, tongue, palate and jaw. As a result, certain sounds, sound combinations, or transitions from one sound to another are too difficult for them to reproduce. While their speech and language are developing, they simplify the production of the complex word and adult speech by using phonological processes. These patterns are fairly predictable and universal, so for instance the next time you hear a toddler asking for a “bo” instead of a boat

you know it’s due to what scientists call “deletion,” while saying “tee” instead of “key” is an example for “fronting.” As children mature, so does their speech and by the age of five most children stop using all phonological simplification processes and their speech sounds more like that of the adults around them.

The vast majority of magazines and marketing material are printed using the four color or full color process. This system uses process colors composed of four different color values: cyan, magenta, yellow and black (CMYK). It is a “subtractive” process: the various inks absorb the light reflected from the underlying white paper to produce the colors that your eyes see. Different color hues and values are possible by varying the relative amounts of the four colors. Black is added to improve the quality of three-color-

blacks, to give detail to images, and to accelerate drying. A spot color can be used instead of or in addition to process colors. Spot colors are specific, premixed formulations and available in a nearly unlimited number of hues. They require a separate printing plate of their own in the printing press.

CONNECTIONS 45CONNECTIONS44

Let’s Talk!

True colors

Process Peculiarities

Life itself is a process, and in everyday life we are surrounded by many other processes. We started a “search process” to come up with interesting examples for processes, and hope you enjoy reading about them. Reading, of course, is also a process – an intensive cognitive one!

deletion cat à cafronting k à t g à d

ALTERATIONS Some examples of phonological simplifying processes

L E I S U R E & E N T E R TA I N M E N TL E I S U R E & E N T E R TA I N M E N T

That tip-of-your-tongue feeling, the forgotten names of places, or people, or things you meant to buy in the supermarket … does that situation sound familiar to you? One tends to think of forgetting as a negative, aberrant phenomenon. Yet the brain needs to forget some things in order to remain functional and effective. Forgetting is in fact an active process that deletes unnecessary information to help the nervous system retain its plasticity. Scientists from the Molecular and Cognitive Neurosciences (MCN) trans-faculty research platform at the University of Basel, Switzerland, discovered a molecular process that actively regulates the process of forgetting. While the protein adducin stimulates the growth of synapses and helps to preserve memory, the protein musashi inhibits the stabilization of these synapses, thus

facilitating memory loss. A balance between these two proteins is crucial for the retention of memories. If you are not quite convinced yet that forgetting is important and can be positive, just consider the alternative: Individuals with hyperthymesia can recall almost every day of their lives in near-perfect detail, as well as any public events that hold some personal significance for them. The result: a memory overload.

Forget about it?

PROTEIN POWER Forgetting is an active, normal and

healthy process

When the procedure that went into creating a work of art is not hidden but remains a prominent and visible feature, the completed work is known as process art. This style has its emphasis on the process and act of creation rather than the finished result. It began in the U.S.

and Europe and became a widespread movement among artists in the late 1960s and the 1970s. For instance, in the works of the American painter Morris Louis (1912-1962) the forms are the result of the interaction of the artist’s action pouring paint, the type and viscosity of the paint, and the type and absorbency of the canvas. A particularly pure example of process art would be John Hilliards’ photographic work “Camera Recording its Own Condition”.

Art appreciation

ARTISTIC MOVEMENT Process art, like Morris Louis’ color field paintings, focuses more on the creative journey than the end result

MORE INFO www.vanabbemuseum.nl

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The bus is moving to the left – although one entry almost convinced us that it had to be moving to the right, as otherwise the bus would be driving against the flow of the text! The obvious reasoning for its moving to the left is: The door for passengers to enter the vehicle is not visible! So it has to be on the opposite side, where people can safely board from the sidewalk (we assumed driving on the

right; otherwise – the opposite direction). Our prizes – the scarves – are already on the move as well - in the direction of the lucky winners: Eko Sambodo/OT Karimun, Daniel Rozas Kaneko and Geraldine Díaz/

OT Andina Services, Lisa Sanchez/OT North America, Marco Zevallos Rosales, Norbert Gäbelein/OT Deutschland Gera, Tim Van Baeveghem, Wendy Van Poucke and Andy De Clercq/OT Ghent, Cas Grannetia/OT Amsterdam, Vivian Brandão Dias/OT Terminais, Recai Yinesor/OTD Bendorf, David Atencio/OT Colombia, Thorsten Mahnkopf/OT Bremerhaven, Tim Venghaus/OT GmbH, Jose Llera-Llerandi, Jan Huyben and Steve Van den Langenbergh/OT Stolthaven Antwerp, Wolfgang Brammer/EBV, Tiit Bõmberg/OT Tallinn, Bharati Srinivasan and Amitabh Gode/IOT, Frank Hendricks/OTD Duisburg, Ünal Sefer and Eric Aulmann/OTD Hamm, Konstantin von Hobe/Skytanking, Bettina Vagt/Marquard & Bahls, Hülya Stoffregen, Gisela Meyer and Frank Boback/OIL! and Henning Huenteler/Carbonbay. Congratulations!

This time we’d like to get you thinking with some analogies. The first word pair is always logically related and have some kind of relationship. Your task is to

find the word that correctly completes the second pair. January 29, 2016 is the deadline for entering your correct answers in the prize draw. Good luck!

A lot can happen in a year. Perhaps you got married? Became parents? Would you like to share some of the happiest moments of your life with connections?

We welcome any news plus photos of your wedding and/or latest addition to the family. Please email your good news by January 29, 2017.

�“The Raven" � Edgar Allan Poe | “Gone with the wind” � ?�Zeus � Jupiter | Hermes � ?�lemonade � beverage | tabby � ?�pan � frying | pin � ?�plants � forest | roof � ?

�tomorrow � today | Saturday � ?�cup � coffee | bowl � ?�leather � shoe | grapes � ?�note � music | words � ?�square � cube | circle � ?

CONNECTIONS 47

... and Action!Try to solve our riddle and don't miss out on the chance to win! Please send your entries to: [email protected], or contact us by post: Oiltanking GmbH, connections Team, Koreastrasse 7, 20457 Hamburg, Germany, or by fax: +49 40 370 99-7499.

C O N G R AT U L AT I O N S

N E W Q U I Z

I D O ’ S & G O O - G O O S

Quiz Solution

Hidden correspondence

Personal Developments

CONNECTIONS46

Oiltanking’s Managing Directors, Daan Vos and Koen Verniers, presented Oiltanking’s Strategy 2020 at the Spring Meeting in Ireland last April. While the audience was quite representative of management teams throughout the organization, our ambition is to communicate and explain the strategic direction and objectives to all of our colleagues.

Oiltanking is a vital part of the world’s energy supply chain. Whether it is petroleum, chemicals or gas, we play an essential role in moving energy products between source and end customers. Over the years, we have built a reputation of carrying out our operations with expertise and utmost care. As we move forward into the future, our aim remains to be the trusted custodian of our customers’ products.

“Everything changes and nothing stands still,” Heraclitus asserted in 500 BCE. The observation is still valid today. Market environments change, new demands arise, and we face an ever-changing variety of challenges. Oiltanking is subject to change as well. With the growth of our business, our organization has become larger and more complex.

Past performance is no guarantee for future success, and so we have set about defining our plans for the next years to come, with a focus on enhancing our ability to adapt to these changes while at the same time maintaining our strengths and improving continuously.

The strategy communication plan was kick-started by a survey that gauged how well-informed people feel they are about the strategy. As a next step in the process, specific desired behaviors and actions were identified, with which each and every one in the Oiltanking family can contribute to the success of implementing our strategy. As we go to print, engagement initiatives are already being rolled out with the aim of communicating the strategy throughout the organization in the most effective way.

In the next issue, this column will be dedicated to what it is that we intend to accomplish with Oiltanking’s Strategy 2020, and how we plan to achieve our goals. In the meantime, management teams in the respective Oiltanking regions will already be engaging their teams to discuss these strategic objectives and ambitions in the months ahead.

The Strategy Process

R E A D E R ' S C O R N E RZ O O M I N G I N , Z O O M I N G O U T

“Strategy is […], a conscious and deliberate process, […] the science

of insuring future success.” Dr. Pete Johnson, Strategic Consultant

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L A S T B U T N O T L E A S T

The Rainbow Eucalyptus gets its name from the exceptional color palette displayed on its bark. Also known as Eucalyptus deglupta or Mindanao Gum, its rind is smooth and vibrantly alive and, as the tree grows, exfoliates thin layers of spent tissue. Once the layers come off, they reveal new and fresh green bark. As it ages, this newly formed bark changes hue from bright green to darker green, then bluish to purplish, and then to pink and orange. Finally, the outer bark turns a brownish maroon color just before the tree sheds it in narrow strips. This natural process occurs simultaneously in different and irregular zones of the trunk at different times. As a result, the tree never has the same color pattern twice and becomes a work of living art.

A fast-growing tree that retains its leaves year-round, the Rainbow Eucalyptus can live up to 150 years and grow to a height of 60 m. Although most Eucalyptus trees are native to Australia, this one hails from Indonesia, Papua New Guinea and the Philippines. Unlike the other species of eucalyptus, the Rainbow Eucalyptus is now widely cultivated around the world mainly for its decorative effect, and harvested for paper pulp and construction material.

ArtLiving