Corporate Responsibility Report 2019-2018
1 Table of Contents
A Message from our Management 3
About the Port of Ashdod – The port of Israel 4
Promoting the UN Sustainable Development Goals (SDGs) 13
Maritime and Port Technological Innovation 25
Our People 27
Employee Welfare and Work-Life Balance 33
Diversity and Gender Equality 35
Responsible Supply Chain 41
Health and Safety 43
Security 51
Our EnvironmentalResponsibility 52
Our Community 61
Coporate Governance and Ethics 65
About This Report 70
2 A Message from our Management
Dear readers,
We are proud to present the Ashdod Port Company’s Corporate Responsibility Report for 2018-2019.
This is the Company’s fourth report accounting for its social and environmental impact, conduct and considerations. Alongside the challenges facing the company in the competitive environment in which it operates, and while preparing for government-lead measures to introduce new competitors to the port industry, a process that is expected to have a material effect on the Company’s operations and future financial performance, we witness a consistent growth in the Port Company’s performance and in its fiscal results.
We believe that corporate responsibility serves as an engine for economic growth, and in recent years we have taken various steps to promote economic efficiency while improving our service and environmental performance. We have done so by: (1) Promoting the procurement of new and advanced unloading equipment that meets the environmental challenges of unloading bulk material such as grains etc.; (2) Establishing a system for monitoring the port’s air quality to ensure that our activities meet with the required standards; (3) Promoting measures to improve procurement and customer service channels. Furthermore, we consider employee diversity as a vital organizational resource. The Port Company conducts extensive organizational activities towards the promotion of women and fair representation for all sectors, further than required by law. We believe that employee diversity is morally and socially important, able to contribute to the Company’s success as employees and managers offer a wide range of ideas and perspectives.
We invite you to find further details about all these and more in the following report and would like to thank all those involved in preparing it. A special thank you is extended to each and every one of our Port employees for their hard work, dedication, willingness and involvement in securing the Port’s future as the leading, most advanced port in the Mediterranean Basin.
We would like to take this opportunity to provide our stakeholders - employees, customers, suppliers, community, government officials and others - a view into corporate responsibility innovations and developments and to foster an open and transparent dialogue on all issues addressed herein. We welcome your feedback and urge you to continue to challenge us on these various issues.
Orna Hozman-Bechor Moshe Zana Chairman of the Board of Directors CEO
3 About the Port of Ashdod – Israel’s most prominent Port
The Ashdod Port, Israel’s leading economic gateway, is the largest most advanced seaport in Israel. The Port serves as a central gateway for Israel’s trade and commerce.
The Port’s construction began in 1961, with operations commencing in 1965. The Port is currently operated by the Ashdod Port Company Ltd., a government company fully owned by the State of Israel. The Company was established in July 2004 as part of the government’s resolution to implement a structural reform in the country’s seaport industry.
The Port Company received a concession from the State of Israel to operate the Port’s facilities for a period of 49 years, until February 2054.
The Ashdod Port as a Government-Owned Company
In 2003, Israel’s government resolved to implement a structural reform program in the country’s seaport industry and its management. In accordance to the program, the Israel Ports Authority, responsible for managing and operating the country’s seaports prior to the reform, ceased its operations in February 2005 and was replaced by three independent government-owned companies: Haifa Port, Ashdod Port, and Israel Ports Development & Assets Company Ltd., responsible for managing and developing the ports’ land and infrastructure. The latter was established in order to create a structural corporate separation between the ports’ operations and their infrastructure development and maintenance.
Within a short span of time, the Ashdod Port Company successfully transformed from a government- owned entity to a business operation for all intents and purposes. The Company now effectively manages one of the most profitable and economically sound operations in Israel’s economy.
In accordance with previous government resolutions and the framework for reform approved in October 2014, the Ashdod Port is expected to undergo privatization via a one-time or gradual public offering, though a private sale of predetermined percentages, or through a combination of all three. The Port Company has not yet issued any shares and there is no determined date or method for the privatization process.
As a government-owned company, the Ashdod Port Company is subject to comprehensive regulation regarding key and significant aspects of its operation. The Company is subject to the provisions of the Government Companies Law, Companies Law and other industry relevant legislation. It is further subject to the deed of concession received from the State and to governmental regulation. These regulations may sometimes restrict the Port’s activities as it strives to operate in a fast-paced and agile business environment.
4 Organizational Structure
The Port Company is divided into 6 main divisions: Operations, Resources, Logistics and Engineering, Finance, Corporate Communication and Customer Relations. In addition, Port Company headquarters include an Internal Auditor, Legal Advisor, Head of Security and CRO.
Organizational Structure - Company Management
Board of Directors Corporate
Secretary > CEO > Internal Auditor
Legal Advisor > > Head of Security and Passenger Liners Personal Assistant >
> CRO and SOX > > > > > > COO / VP VP CFO VP Logistics and VP Corporate VP Customer Operations Resources Engineering Communications Relations
> Safety > Head of > Company > Head of > Head of Engineer Administration Comptroller Equipment Marketing > Head of > Head of > Head of Billing > Head of > Head of Operations Resource Construction Customer Planning and > Head of Service > Head of Bulk Control Business > Head of Installations Development Procurement > Sales Manager > Head of IT and > Head of Marine Environmental Division Compliance > Head of > Head of Operational Economics Projects and Assets > Head of Containers
5 The Port’s Financial Resilience
As a state-owned enterprise whose profits are directed back to the public, the Port Company holds a responsibility to generate financial profits for the State and to ensure its financial resilience over time. The Company is preparing to enter a competitive arena and for the subsequent effects it may have on its financial results. To this end, Ashdod Port Company has prepared an extensive strategic plan for the upcoming years, including a 2.4B NIS investment plan, in order to optimally prepare for the growing competition in 2021 with the establishment of additional new ports.
Ashdod Port Company provides loading and unloading services for cargo vessels arriving at the port (“cargo handling”). Handling services are provided to all vessel and cargo forms, 24 hours a day (excluding Saturdays and holidays).
The Port Company provides services for five cargo sectors that require different expertise and handling methods: 1. General cargo - Such as: metals, lumber, machinery etc. 2. Containers 3. Bulk cargo – Such as: various grains, assorted powders etc. 4. Vehicles 5. Passenger liners
The cargo handled through the port is typically calculated on an annual basis:
Ship Count
2,248 2,272 2,373
2019 2018 2017
Containers (k TEU) General Cargo (k tons) Compared to the previous year Compared to the previous year Ashdod Port Ashdod Port
1,538 1,477 1,525 1,429 1,622 1,877 4.1% -3.2% 5.7% -11.9% -13.6% -6.4% 2019 2018 2017 2019 2018 2017
Total Israeli Ports Total Israeli Ports
2,917 2,946 2,868 3,875 4,115 3,857 -1.0% 2.7% 5.8% -5.8% 6.7% -9.4% 2019 2018 2017 2019 2018 2017
6 Bulk Cargo (k tons) Vehicles (units) Compared to the previous year Compared to the previous year Ashdod Port Ashdod Port
8,553 8,323 8,363 144,830 140,096 161,184 2.8% -0.5% 3.3% 3.4% -13.1% -0.6% 2019 2018 2017 2019 2018 2017
Total Israeli Ports Total Israeli Ports
27,241 27,203 26,701 307,825 294,574 311,344 0.1% 1.9% 3.6% 4.5% -5.4% -13.3% 2019 2018 2017 2019 2018 2017
Cargo handling is performed by cranes, unloaders and dedicated crews, at specialized piers (according to the type of cargo). The Port’s piers differ in their structure and their required operations and are equipped with different types and numbers of cranes. Loading and unloading times vary by cargo type, vessel type, cargo quantity etc.
The Port provides cargo storage services until the cargo is supplied to the customer (import) or until it is loaded onto the ship (export). Storage services are provided in outdoor areas or in covered warehouses at the port. The Port’s hinterland includes various complementary services provided by private companies such as storage facilities, hinterland terminals, bonded warehouses and free warehouses. In most cases, cargo is transported directly from the ships to the trucks waiting at the dock and is not stored at the Port area.
In addition to handling and storage services, the Port Company provides its customers with a comprehensive service array, including logistical services, such as: • Bringing ships into port and anchorage • Loading and unloading cargo from trucks • Providing full ship services • Cargo storage • Releasing cargo to the customer • Container storage and emptying • An office complex at the Port’s inland terminal for customers, suppliers and various entities: shipping companies, shipping agents, customs agents, transport companies and more.
The Port Company also operates a passenger terminal providing services relating to its operations and ports services to passenger liners.
As the largest port in Israel, the Port of Ashdod predominantly serves the Israeli market, processing approximately half of all the country’s imports and exports. The port also serves additional markets, including cargo intended for the Palestinian Authority and Jordan.
7 The Ashdod Port Company’s Financial Details:
The Ashdod Port Company submits annual financial statements as required by law. For a closer review of our financial results see:
https://mof.gov.il/GCA/Reports/Pages/SearchReport.aspx
Strategic Geographic Location
The Port of Ashdod was designed and built as Israel’s primary port, located approximately 40km south of Tel Aviv-Yafo, near the city of Ashdod, a city that flourished into a significant metropolitan in Southern Israel. The Port’s strategic location guarantees several important advantages, mainly the proximity to existing highways as well as to industrial and production centers, including Tel Aviv-Yafo, which is considered Israel’s economic and commercial center, and its relative proximity to the Negev and Arava in the southern part of the country. Extensive effort was invested in the Port and its surroundings to enable swift and efficient cargo transportation. Direct access routes to the Port allow a convenient and efficient commute to every destination in Israel.
The proximity to the Suez Canal is another definitive advantage, as the Port of Ashdod is the ideal passageway to the Far East and the Western Mediterranean Basin.
Geopolitical impact
Due to its geographical location and national economic significance, the Port is a strategic facility impacted by the geopolitical circumstances of our region. Unlike its counterparties around the world, Israel faces a series of unique constraints, among them hostile neighboring countries and distance from most available supply sources. These constraints create complete dependence on marine transport, whereas ~98% of all cargo to and from Israel is transported by sea. Hence, Israel must maintain both maritime transport capabilities independent of foreign factors, as well as its ports’ highest competence.
The Port Company’s operations are additionally affected by the state of national security and the political stability in the region. Deterioration in the political and or security conditions may adversely affect the country’s import and export volumes and thus materially affect the Port’s scale of operations, as well as increase the insurance costs of cargo and vessels seeking to visit Israeli ports. In addition, deterioration in the political and or security conditions may adversely affect the call of international shipping lines in Israeli ports and may even bring about physical damage to the Port facilities, which are located ~40 km from Gaza. Deterioration in national security may further lead to the implementation of security/government authorities’ enforcements on the Company as established by law. However, the Company believes that recent developments in anti-missile defense systems can mitigate any negative impact that deteriorating security conditions may have on Company operations.
8 Essential Enterprise
The Company has been declared an Essential Enterprise providing essential services during a state of emergency pursuant to the Emergency Labor Law. In accordance thereof, in a state of emergency, the Port can operate even when not included within a geographical region in which an emergency has been declared and without a declaration of war.
In addition, the port continues to serve its customers and provide essential national services amidst the coronavirus (COVID-19) global pandemic and under the restrictions imposed on the market - including under full lockdown.
Five Stars of Beauty for the Port of Ashdod
The Port of Ashdod won the “Five Beauty Stars” award from the Council for a Beautiful Israel in the Beautiful and Sustainable Industry Competition for the years 2018 and 2019. The Company has been awarded this merit for 13 consecutive years, in addition to receiving the Banner of Beauty, the most prestigious award in its field.
The Port Company places a strong emphasis on the benefit of a pleasant work environment and its impact on the Port’s productivity and yield. We are proud and honored of this award and believe that it is the result of our employee efforts as they invest in their workplace and strive to make it safe, esthetic, well-maintained and clean.
Partnerships in International Organizations and Initiatives
As part of our efforts to position the Port Company at the forefront with other leading ports around the world, we collaborate with various organizations and take part in diverse initiatives – both locally and internationally. We believe that such collaborations and partnerships help us better adapt to challenges in the maritime shipping and commerce industry, to realize our vision and promote a sustainable port.
We are proud to host international delegations and various groups who ask to gain from our experience, just as our representatives visit other ports on occasion in order to learn best practices and draw ideas for implementation in the Company’s various operational areas.
World Ports Sustainability Program (WPSP) formerly World Ports Climate Initiative (WPCI)
From 2012 to 2019 we have been members of the IAPH international initiative along with a line of prominent seaports that recognize their unique position in the global supply chain and in the importance of reducing greenhouse gas emissions derived from their operations. The initiative aims to promote awareness of sustainability and environmental protection in ports and port cities through knowledge- sharing, establishing methods for measuring and managing greenhouse gas emissions at seaports, and through an ESI – Environmental Ship Index, promoting sea-going ships to reduce air pollutants. It should be noted that the WPSP standard is more demanding than the IMO (International Maritime Organization) standard, setting restrictions on maximum pollutant emissions and sulfur content of marine fuels.
As part of the initiative, the Port Company offered a monetary incentive to vessels with a high ESI score. In 2018, the initiative was extended to 17 SDGs (Sustainable Development Goals) adopted by the UN in 2015.
9 IAPH (International Association of Ports and Harbors)
We act in accordance with the IAPH, which serves to promote the interests of ports around the world and to advance their ability to contribute to maritime industries in general.
ICHCA (International Cargo Handling Coordination Association)
This international organization promotes safety, security, sustainability, productivity and efficiency in various stages of the cargo and goods handling supply chain. The Port Safety Engineer and Hazardous Material Coordinator represents the Port Company at a forum of safety experts from leading international ports. The forum convenes twice a year in various global locations to discuss safety protocols through the tools available to the ports and the marine community. The Port Safety Engineer recently participated in a conference in Barcelona, which dealt inter alia with the implications of supertankers on port safety and infrastructure.
Awards, Commendations and Ratings
Maala Index -
For the reported period, the Ashdod Port Company was rated on the 2018 and 2019 Maala Index and achieved “Platinum” status.
Maala’s Index has been published since 2006 and serves as an assessment tool benchmarking over 100 of Israeli’s largest and most active companies, including government-owned, private and public companies.
The rating, performed by an independent public committee, is intended to serve as a tool for managing the corporate responsibility infrastructure in companies and consists of 9 sections: Ethical aspects of business processes, Work relations, Responsible Procurement, Diversity and inclusion, Community contribution, Employee social involvement, Environmental impact, Corporate governance and Management and reporting.
The Ashdod Port Company has scored particularly high ratings and thus earned the Platinum category. The Company scored particularly high in Management and reporting (108), Work relations (96), Ethical aspects (90) and Diversification and inclusion (89).
BDI Rating-
In 2018 and 2019, the Ashdod Port Company was ranked 39th and 48th (respectively) among the best companies to work for in Israel.
Dun’s 100 Rating -
In 2019, the Port Company was rated 2nd in the Dun’s 100 Index for Transportation Infrastructure companies and 31st in largest service companies.
10 Rebranding Process
In 2018, the Port embarked on an extensive rebranding process, during which a new branding strategy was introduced including fresh design elements and a new logo.
The rebranding serves the Company's business and strategic goals, as determined by the Company’s Board and management, by reinforcing the Port's image in light of the upcoming growing competition in 2021, transforming it from a strong organizational brand into a strong and positive brand among Port employees, customers and the general public.
As part of the formulated branding strategy, the Port of Ashdod was positioned as “The Port of Israel" and an emphasis was placed on the Port's strengths as an asset of strategic importance to the Israeli economy, successfully withstanding security, economic and health crises.
The rebranding project was led by the Public Relations and Corporate Communications Department.
International Trends Affecting the Company:
The Port Company’s business activities are also affected by various international trends, requiring us to prepare accordingly:
1. Increased regulatory demands and environmental regulations – both at the international and local levels. This trend impacts shipping companies and ports, requiring them to take action to reduce air pollution and polluting emissions, lower energy consumption and work towards beach and marine environment conservation.
For further details, see: https://oecd.org/sti/ind_workshop-green-growth-aritime-industries-bourgeon.pdf
2. Port service rates and usage fees – Among the many regulatory measures applied to the Company, service rates and usage fee regulations have a substantial impact on Company revenues and profitability. Port service rates are regulated under the Product and Service Price Regulation Law (1996) and the ensuing Product and Service Price Regulation Order (Port Services) (2010), adopted under the 2010 rate reform.
For further details, see: http://asp.mot.gov.il/he/ports/reforma
3. A shift to larger and more efficient ships – In response to environmental regulatory demands and the continuous growth in international trade, shipping companies have begun adjusting their fleet and shifting to the use of larger vessels (ULCS – ultra large container ships) with efficient, low fuel consumption engines. Thus, ports must prepare to receive such ULCSs and perform infrastructural adjustments such as adjusting the water depth near the docks, increasing the depth and width of entrance passageways, increasing distance between docks, lengthening them and purchasing proper unloading equipment.
4. Israel’s foreign trade volumes and their impact on the Company operations – The Port of Ashdod’s volume of operations is principally derived from Israel’s foreign trade (incoming imports
11 and outgoing exports). These are dependent on factors such as the country’s population level, per capita income and standard of living, scope of private consumption, raw material production and demand, as well as per capita income and standard of living abroad, scope of private consumption abroad and raw material production and demand abroad. It is important to note that the Port of Ashdod also serves as a gateway to cargo transported to the Palestinian Authority and the volume of foreign trade in these areas is also of consequence, albeit to a lesser extent.
5. The competitive arena in which the Company operates – The Company faces competition in all areas of its operations, mainly with the Haifa Port Company and Israel Shipyards Ltd. The competition significantly impacts the Company’s business results. In the field of port services for the automotive industry, the Company faces growing competition from the Eilat Port. Furthermore, the inception of the government’s initiative to introduce new competitors to the port industry is expected to have a greatly significant impact on the Company’s operations and future business results, both in terms of inter-port competition and in terms of direct intra-port competition.
For further details, see: https://www.ashdodport.co.il/port-library/port-guide_pages/Israel-ports-reform.aspx
12 Promoting the UN Sustainable Development Goals (SDGs)
In September 2015, Israel, along with 192 UN member states, adopted the resolution to take part in the effort to achieve 17 new sustainable development goals, known as SDGs. The goals relate to global challenges at three interconnected pillars, namely - environment, economy, and society - creating a multi-sectoral and multinational framework sharing common terminology and increasing the chance for effective and quantifiable implementation. This is the first year the Port Company is reporting its commitment to promote the UN SDGs as part of its corporate responsibility report.
In the following report the company details its activities as they relate to the defined goals: 15 3 13
GOOD HEALTH LIFE ON LAND ANDWELL-BEING CLIMATE ACTION 6 14 16 17
CLEAN WATER PEACE, JUSTICE AND PARTNERSHIPS FOR AND SANITATION LIFE BELOW WATER STRONG INSTITUTIONS THE GOALS 5 1 4 8 10
DECENT WORK AND GENDER EQUALITY NO POVERTY QUALITY EDUCATION ECONOMIC GROWTH REDCUCED INEQUALITIES 9 11 7 2 12
RESPONSIBLE INDUSTRY,INNOVATION SUSTAINABLE CITIES AND AFFORDABLE AND CONSUMPTION AND INFRASTRUCTURE COMMUNITIES CLEAN ENERGY ZERO HUNGER AND PRODUCTION
The material aspects identified in this report are based on an assessment performed concurrently at several different levels:
13 Sustainability and Corporate Responsibility at the Port of Ashdod
Steering Committee – Corporate Responsibility
A steering committee led by the VP of Corporate Communications was established in order to promote corporate responsibility at the Ashdod Port Company. The steering committee consists of the following members: VP of Corporate Communications, Head of Business Development and Environmental Compliance, Organizational Consultant, CRO and Ethics Officer, Deputy CEO, Head of Resource Planning and Control, Deputy Legal Advisor, Head of Customer Service, Deputy Head of Customer Service, Recruitment Coordinator, Environmental Quality Coordinator, and Head of Economics and Assets.
The steering committee set out to formulate a strategic plan for sustainable development submitted to the Government Companies Authority, the Maala Index, the Port Company’s Corporate Responsibility Report and in any issue relating to the Port Company’s corporate responsibility. Through the course of its meetings, the steering committee discussed material aspects at the Port Company that must be addressed within the report. The committee reviewed corporate responsibility reports published by leading ports around the world in order to compare reported materiality aspects.
The sustainable development plan defined four focus areas: A. Improving social responsibility through community involvement in the city of Ashdod and its surroundings. B. Environmental protection with a focus on a plan for preventing and reducing sea and air pollution and on reducing the Port’s carbon footprint. C. The Port’s commitment to employee proficiency, training, instruction and personal development as well as employment diversification. D. Economic resilience – Minimizing damage caused to imported vehicles and decreasing total turnaround time (loading and unloading) of cargo trucks at the Port area.
Interviews with Port Officials
In-depth interviews were conducted with several Port officials in order to identify material aspects. Interviews were conducted with the Port Company CEO, VP of Corporate Communications, VP Resources, VP Operations, CRO and Ethics Officer, Head of Business Development and Environmental Compliance, Organizational Consultant, Port Security Officer, Head of Training, Training Coordinator, Head of Resource Planning and Control, Head of Customer Service, Accessibility Coordinator, Procurement Manager, Environmental Quality Coordinator, Recruitment Coordinator, Women’s Advancement Manager, Legal Department, Port Comptroller, Social Worker, Safety Engineer and Port Traffic Safety Officer. Through the course of these interviews, the various officials affirmed the material aspects identified by the members of the steering committee.
14 Questionnaires and Stakeholder Meetings
Several meetings were conducted with various Port Company stakeholders, including customers, suppliers, social and environmental organizations, and Port employees.
Customers – Several representative meetings were conducted with customers defined by the Port’s Customer Relations Division as key customers.
Suppliers – Several representative meetings were conducted with suppliers defined by the Port’s Procurement Department as key suppliers.
Employees – The Company’s employees were also involved in identifying material aspects in a “roundtable” discussion with representatives from the various divisions and departments.
Social and environmental organizations – The Port Company occasionally conducts “roundtable” sessions with social and environmental organizations. During the writing of this report, one such meeting was dedicated to a discussion of the material aspects at the Port Company.
In addition, the ongoing dialogue and meetings conducted by the Port Company with other parties that interface with it – including governmental and regulatory bodies, the Ashdod Municipality and professional organizations – also contribute to identifying material aspects at the Port Company.
Materiality Matrix Business Impact on the Ashdod Port Company Low Moderate High • Ethics, corporate governance and good governance • Health and safety in the workplace • Customer service and satisfaction • Reduction of air and sea pollution • Employee diversity and equal opportunity • Responsible supply chain • Customer • Accessibility • Economic resilience confidentiality • Energy consumption and • Community involvement and • Management- efficiency commitment employee relations • Waste disposal • Workplace environment, and the right to • Water and sewage commitment to employees’ rights unionize and welfare • Port security Importance to Stakeholders • Raw material • Employee training, development consumption and empowerment High Moderate Low High Moderate • Human rights issues • Responsible supply chain in the Company’s • Innovation operations • Gender equality • Biological diversity • Business continuity
15 Material Aspects Identified and Selected for Reporting
Reported Aspect Reporting Scope Chapter Ethics, corporate governance Within the company Gatekeepers – Corporate Governance and Ethics and good governance Economic resilience Within the company Israel’s Economic Gateway – the Port Company’s Economic Resilience Customer service and Outside the company Israel’s Economic Gateway – Our Customers satisfaction Workplace environment, Within and outside the Gateway to People – Personnel and Working commitment to employees’ company Environment rights and welfare Employee diversity and Within the company Gateway to People – Personnel and Working equal opportunity Environment Responsible Supply Chain Within and outside the Supply Chain company Employee training, Within the company Gateway to People – Personnel and Working development and Environment empowerment Gender Equality Within the company Gateway to People – Personnel and Working Environment Health and safety in the Within the company Gateway to People – Health and Safety workplace Accessibility Within the company Gateway to People – Accessibility to all Port Visitors Waste Disposal Within the company Gateway to Environmental Protection – Our Environmental Responsibility Energy Consumption and Within the company Gateway to Environmental Protection – Our Efficiency Environmental Responsibility Reduction of air and sea Within the company Gateway to Environmental Protection – Our pollution Environmental Responsibility Water and Sewage Within the company Gateway to Environmental Protection – Our Environmental Responsibility Community Involvement Within the company Gateway to Community – Our Social Responsibility and Commitment
16 Dialogue with our Stakeholders
We believe in the importance of an ongoing dialogue with our stakeholders. Maintaining an open and continuous dialogue with our stakeholders plays a key role in our success, leverages our advantages and ensures Ashdod Port’s position as a leading port in Israel, even when faced with a competitive environment.
The following is a list of the Port’s significant stakeholders and a description of the dialogue process held with them:
1. Social and Environmental Organizations – Several times a year, the Port conducts “roundtable” sessions with various social and environmental stakeholders. We conduct a semi-annual environmental round table session with environmental units and urban associations, Ashdod Municipality representatives, various representatives from the city of Ashdod and the area, schools representatives and various third sector NPOs. In addition, we conduct an ongoing dialogue with various entities, including NPOs, toward increasing employee diversity at the Company.
2. Customers - The Port serves a variety of different customers – shipping companies, shipping agents, importers and exporters, customs agents, international freight forwarders and ground transporters – with whom we engage in an ongoing dialogue.
a. The Customer Relations Division is responsible for ongoing customer relations through the marketing, customer service and sales departments.
b. The Port conducts regular operational/service surveys with shipping agents upon conclusion of service as the ship departs the Port. The surveys examine the quality of key services provided by the Port. Once analyzed, the survey results lead to operational conclusions toward improving service. Through the course of 2019, the Port conducted operational/service surveys among importers in various sectors.
c. The Port’s business operations align with the Company’s vision and values, while working to promote its operations under conditions of perfect competition. The Port Company’s activities demonstrate a dedicated concern to customer service needs in the following sectors: containers, general cargo, bulk cargo, liquids, vehicles and cruise line passengers. Meetings are conducted in various forums adapted to a perfect competitive market, such as ongoing monthly monitoring and dedicated conferences for customers and various sectors.
d. The Port maintains contact with professional unions in each sector, such as The Israel Chamber of Shipping, the North and Central Chamber of Commerce, the Manufacturers’ Association of Israel, Israeli Fed of Freight Forwarders & Customs Clearing Agents, the Transit Council, the Grain and Seed Importers’ Union, the Israeli Civil Administration, Regulators – Customs, Ministry of Health, Ministry of Agriculture, Ministry of Transportation – as an ancillary customer service for ongoing cargo handling and clearance processes.
e. The Port maintains an ongoing and mutual relationship with individual stakeholder groups including the Israeli Railway, hinterland terminals, grain silos and parties within the maritime trade community linked to “Global Gate” (Sha’ar Olami, the Tax Authority’s foreign trade software system). An ongoing dialogue with relevant parties abroad is maintained as well.
17 3. Suppliers – A dialogue with our suppliers is conducted through the various professional units engaged with suppliers at the Port. The Procurement Department has taken measures to enhance supplier relations, extend its supplier list and encourage competition. In 2018, a conference was held for Port suppliers wherein we presented our principles and the expected changes in the Port’s procurement procedures, conducted a panel discussion of procurement managers to answer suppliers’ questions and revealed the Port’s actions in light of the upcoming growing competition. In 2019, the Port initialized a plan for supplier rating to be implemented this year (2020). This rating system will allow the Port to improve the service we receive while enhancing the overall quality of our suppliers. This is another measure in the process begun by the Company in recent years, as a result of which the Company reported a significant increase in utilization of its investment budget
4. Regulators and governmental bodies – The Port engages in ongoing and continuous dialogue with regulators, relevant governmental bodies, the Government Companies Authority, Israeli Ports Development Company, and the municipalities neighboring the Port.
5. Employees – Port employees, our human capital, are important stakeholders. As such, mutual dialogue with our employees is integral to the Port’s success. Employee dialogue is conducted through various channels, inter alia through professional committees and forums, employee training, ongoing discussions, systematic incorporation of feedback and suggestion and more.
6. The Maritime Trade Community – The maritime trade community and its various interfaces work alongside the Ashdod Port Company. The Israel Port Community System (IPCS / “Task Yam”) enables members of the marine community - regulators, customs, ports, ship agents, customs agents, importers and transport companies - to streamline maritime trade procedures through an inter-sectoral digital monitoring and approval system. The project consists of a forum of community representatives who propose a required process, the technical specification and the secured digital messaging system for this process. The project enables paperless operations and minimal bureaucracy for transporting import and export cargo.
7. Website – The Port’s website supports transparency in the cargo transportation process and provides the public with access to the Port’s procedures and know-how. Among the services available on our website are: a. Cargo tracking – Through weighing reports and container status. b. Anchoring schedule – Ship status at the Port from estimated time of arrival until departure. c. Work plan – Presentation of the work plan for transporting containers and cargo on ships.
Our Customers
The Ashdod Port Company serves tens of thousands of customers, including - shipping companies, shipping agents, importers and exporters, customs agents, international forwarders, ground transporters, civilians and tourists. The Company provides a variety of services, 24 hours a day (6 days a week), even under severe weather conditions and during states of emergency, as was the case during Operation “Protective Edge”, during which the Port continued its regular operations.
The Port Company aspires to provide its customers with its many relative advantages and abilities including serviceability, professionalism, innovation, experience, dedication, precision and diligence.
18 The Company’s management works together with employees in order to optimize and maximize these advantages and abilities for its customers.
The Port’s service operations are coordinated by the Customer Relations Division, responsible for engaging new customers, retaining existing customer loyalty while increasing revenues for all Company operational sectors. In a competitive arena consisting of other Israeli ports in current operation and private ports operative in the future, improving our customer service is key to ensuring customer retention and an increased market share.
The Port aims to be fully attentive to its customers through multiple channels in all sectors of its operation. An important and integral part of the Port’s strategy is continuous improvement in every aspect of our customer service.
Our Customer Relations Division consists of marketing, service and sales, and is dedicated to a wide variety of customers, such as the cargo owners, shipping companies, shipping agents, exporters, forwarders and ground transporters. The Division’s key function is to develop customer loyalty and retain existing customers while increasing revenues for all Port operational sectors.
The Customer Relations Division’s efforts focus on major importers who transport a wide variety of cargo, as well as large and medium sized exporters, while always remembering to provide optimal service for the individual exporter and importer.
The Division directs substantial marketing, service and sale efforts at leading exporters and importers, and helps foster loyalty and retention of shipping lines calling the Port.
The Division strives to create a cycle of success between the shipping lines, with their various destinations, and the expansion of Israel’s import and export operations, while maintaining a high level of competitiveness among the various ports.
The Division’s efforts are also directed at other business and commercial entities, such as: customs agents, international forwarders and other ancillary businesses seeking activity with the Port, all with the aim of enhancing and leveraging the Port’s image and thus promoting the Port of Ashdod to cargo owners and agents.
Marketing Unit
Container and cruise liners sector responsibilities: • Engage and incentivize shipping companies, ship agents, leading importers and exporters. • Analyze customer markets in these sectors. • Develop and market new products according to customer needs. • Generate and distribute operational and statistical reports, such as Port Origin and Port Destination reports, container storage data by customer requirement report, etc. • Create media content and sponsor campaigns promoting operations in Israel and abroad. • Publish a customer newsletter. • Initiate and implement customer conferences.
19 Sales Unit
Bulk, general cargo and vehicles sector responsibilities: • Engage and incentivize shipping companies, ship agents, leading importers and exporters. • Analyze customer markets in these sectors. • Develop and market new products according to customer needs. • Generate and distribute operational and statistical reports.
Customers Service Unit
The Customer Service Unit serves as the customers’ representative at the Port. In this regard, the unit deals with customer queries, service quality management and service development.
The Company’s Customer Service Vision: “To provide port services at defined standards while maintaining competitiveness, fairness and attention to our customers.”
As a direct reflection of our service vision, the Customer Service Unit aims to integrate service culture among all Port employees.
1. Employee service workshops – Service workshops are conducted regularly in order to integrate customer service as a way of life. The workshops are conducted by trained Company instructors selected from the administration, operations and mechanical equipment sectors, who now serve as Port Service Ambassadors.
2. A professional customer guidebook – “ImPORTant Work” a guidebook published by the Customer Service Unit for the benefit of its customers. The guide describes the logistical processes in clear and simple terms and familiarizes importers/exporters with useful shipping terminology.
3. Ship agent service feedback – In order to obtain a true representation of ship agent satisfaction, agents are presented with a feedback questionnaire after a ship calls on the Port. The questionnaires are analyzed and serve as a decision-making tool on matters relating to marketing, service and Port operations. This process allows us to conduct an ongoing dialogue with our customers as they express their opinion about the service provided.
4. Customer forums – Periodic meetings are held to promote a better understanding and enhance cooperation with our customers.
The Customer Service Unit engages in the following matters: • Customer queries • Data analysis and lessons learned for service improvement • Developing customer support services • Customer updates and information • Customer assistance and guidance
20 • Available response to customer questions • Coordination with external factors: Ministry of Health, customs, Standards Institution, shipping terminals, etc. • Cooperation and coordination with all Company divisions
The Port Company strives to continuously improve customer service through a variety of measures. Among the most significant steps and measures taken to improve service in recent years, are: • Minimizing operational queues and ship lay times • Improving trucks entry and exit routes • Decreasing cargo clearance times • Improving Port interfaces and significantly improving IT processes • Operating information systems and advanced technological systems for managing and monitoring customer service processes • And most importantly, enhancing and improving ongoing customer relations
We act in accordance to our Customer Service Management procedures, intended to define customer service practices and outline the necessary course of action at each service situation.
In order to manage service improvement in a structured and ongoing manner, a forum of senior executives from all Company divisions convenes on a quarterly basis to jointly address key service issues.
Service Indicators
The Shipping and Ports Authority defines three groups of service indicators – yields, times and crew allocation (hands/crew). We apply these indicators to examine measures for improving and streamlining our service.
1. Outputs
1.1 Output per ship laytime hour Average cargo transported in one hour of ship laytime. Laytime includes wait time, securing the ship to the dock, work, Saturdays and holidays, any variances, and departing the port. (Wait time is calculated from the beginning of the first shift to which the crew is requisitioned.)
43.3 40.6 42.1 135.9 139.2 136.1 258.3 247.1 223.1
2017 2018 2019 2017 2018 2019 2017 2018 2019 Containers (Units/Hr.) General Cargo (Ton/Hr.) Bulk (Ton/Hr.)
21 1.2 Output per crew/crane hour Average cargo handled in one crew (crane) hour (annual average)
23.9 23.5 25.6 110.1 107.9 104.9 201.8 189 183.6
2017 2018 2019 2017 2018 2019 2017 2018 2019 Containers (Units/Hr.) General Cargo (Ton/Hr.) Bulk (Ton/Hr.)
1.3 Output per operational hour
25.8 20.8 24.6 46.8 39.3 40.4 92.1 79.9 73.6
2017 2018 2019 2017 2018 2019 2017 2018 2019 Containers (Units/Hr.) General Cargo (Ton/Hr.) Bulk (Ton/Hr.)
2. Times
2.1 Average Laytime (Hr.) / number of calls Time is measured from the beginning of the first shift to which the crew is requisitioned and until the ship departs. This index is affected by exogenous factors, such as weather and vessel arrivals, and thus explains the variance between the years
Type of Cargo 2017 2018 2019 Avg.Hours Calls Avg.Hours Calls Avg.Hours Calls Containers 34 1,134 44.8 1,021 40.5 1,006 General Cargo 93.4 468 109.2 386 107.4 358 Bulk 159.5 269 210.8 264 219.3 255 Automatic conveyance 142.1 357 153.1 374 168.4 436 equipment
2.2 Average ship wait time (Hr.)/ number of calls Time from the beginning of the first shift to which the crew is requisitioned and until the first crew begins working on the ship on a certain visit (operational report). Automatic equipment wait time is determined from arrival time to anchoring.
Type of Cargo 2017 2018 2019 Avg.Hours Calls Avg.Hours Calls Avg.Hours Calls Containers 8.8 1,134 14.9 1,021 40.5 1,006 General Cargo 31.2 468 109.2 386 107.4 358 Bulk 49.4 269 210.8 264 219.3 255 Automatic conveyance 48 357 153.1 374 168.4 436 equipment
22 2.3 Average Crew Allocation (Hands/Ship) This index measures the average ratio between the total number of “hands” (crews) ordered by ships’ agents per day to the number of “hands” allocated.
Average Crews per day Number of crews needed per day % of crews granted
16.6 16.4 16.1 31.5 35.2 32.5 53% 47% 49%
Containers 2017 2018 2019 2017 2018 2019 2017 2018 2019
6.4 5.5 4.5 10.8 12.3 10.1 59% 45% 45%
2017 2018 2019 2017 2018 2019 2017 2018 2019 General Cargo General
6.3 7.7 7.6 11.6 20.7 17.2 54% 37% 44% Bulk
2017 2018 2019 2017 2018 2019 2017 2018 2019
Dialogue with our Customers
We maintain an ongoing dialogue with our customers in Israel and abroad through various channels. This dialogue enables us to strengthen our ties with our customers, consistently study the needs in various sectors and offer a dedicated professional, up to date and relevant response.
The Port Company maintains continuous contact with various sectoral organizations, including: The Israel Chamber of Shipping, the North and Central Chamber of Commerce, the Manufacturers’ Association of Israel, Israeli Fed of Freight Forwarders & Customs Clearing Agents, the Transit Council and the Grain and Seed Importers’ Union. In addition, in order to minimize the duration of the clearance processes for customers and provide an optimal service array even outside the limits of the Port, the Company maintains strong ties with regulatory entities including: Customs, Ministry of Environmental Protection, Ministry of Health, Ministry of Agriculture, Ministry of Transportation, Standards Institution, Israeli Police and Security Departments and the Israeli Civil Administration.
The Port maintains an ongoing and mutual relationship with hinterland entities within the logistics chain, including the railway, hinterland terminals, and the maritime trade community linked to “Global Gate” (Sha’ar Olami, the Tax Authority’s foreign trade software system). An ongoing dialogue with relevant parties abroad is maintained as well.
We maintain a dialogue with our customers through frequent contact, ongoing updates, meetings, an “Open Door” policy, conferences, customer visits and satisfaction surveys (operational/service feedback).
23 The Port Company reviews atypical feedback (both negative and positive) in order to improve or maintain its successes. The review’s conclusions are distributed to the relevant parties at the Port Company. Customers are notified of the process and its outcomes. In addition, monthly meetings are conducted with relevant representatives from operational and customer service departments to review lessons learned and improve best practices.
The Port Company Website
The Ashdod Port Company website offers a diverse array of services, enabling convenient access to important and engaging information concerning Port operations. The website is now accessible through mobile devices and tablets with various screen sizes.
The Company website offers a variety of self-service options enabling our customers to log in to a personal dashboard to view detailed personalized reports by categories.
An additional service option is a container status report, enabling cargo owners to enter a container number or “cut and paste” up to 50 container numbers from an Excel sheet (with no need for a user name or password) to determine the containers’ locations and status in the clearance process, including the truck on which the container was loaded.
Minimizing Damage to Imported Vehicles
We strive to continually improve the import process and act specifically towards minimizing the damage caused to imported cargo – mainly vehicles.
As part of the Port’s complex chain of activity, numerous cargoes are unloaded and transported within the port area. During this handling process there is a potential for impairing cargo integrity. As the vehicle sector is essential to the Port’s core business, serves an important role in the supply chain and underscores the significance the Port places on safety and customer service, this issue was defined as one of the Company’s goals in the 2018 Sustainable Development Program submitted to the Government Companies Authority.
Service Training
Service is a key value at the Port Company. As such, we invest in training our employees to provide the highest level of service and to implement optimal service as a way of life. Customer service is integrated in all new employee training, management training and in dedicated training. The intra- organizational service instruction team was enhanced in 2017, undergoing an in-depth training for service instruction. In addition, hands-on service workshops were developed to specifically address the Ashdod Port’s areas of interest.
Most service training is conducted in-house by intra- organizational service instructors. During the years 2018- 2019 the Port’s operational employees, dockworkers, equipment operators as well as employees from other departments participated in in-house service workshops.
24 Maritime and Port Technological Innovation
The Port management has identified technological innovation as a key to maintaining the Port’s leading position in face of future challenges. In accordance with the Board’s decision, in 2019 the Company appointed a Director of Innovation and Infrastructure Planning in order to lead the Port into the next stage of implementing new technologies in its operations.
The Port’s innovation program is reliant on the professional knowledge and experienced human capital available to it, with the intent to turn the Port into a startup accelerator for technology companies developing solutions to streamline and improve Port operations in a variety of areas. Subject to the regulations and directives of the Commissioner of Government Companies and the Ministry of Finance, the Port intends to form a partnership with these companies
Integrating technological solutions at the Port of Ashdod will yield significant benefits in operations, efficiency and service, placing the Port at the forefront of innovation in the seaport industry. As of the date of this report, there are more than 20 startup companies currently working within the Port at various stages of feasibility analysis of their technologies.
The Ashdod Port at the Forefront of Government-Owned Companies
In June 2018, the Government Companies Authority and the Israel Innovation Authority announced an incentive program enabling Israeli technology companies (that are not government-owned companies) to implement R&D pilots at government companies’ websites or via their capabilities, data or information, provided that the development of these companies is relevant to the needs of the government company.
Under the guidance of the Company’s Board of Directors, a dedicated team consisting of representatives from all the relevant departments (procurement, legal, technical departments) was established. The team was tasked with launching this program at the Port and paving the way for locating and contracting with startup companies operating in areas that can advance activities in the port of Ashdod. Thanks to a team effort and the support of the Company’s Board, the Ashdod Port Company succeeded in becoming the first government company to issue a tender in accordance with the terms of the program. At the beginning of 2020, the 4 selected companies were announced: • LOGINNO: Develops solutions for the digitization of cargo container fleets into smart containers that transmit a wide range of data and information to port operators in real time. • Deep Trading: Develops a system for detecting faults in mechanical/engineering equipment - before they occur - using artificial intelligence. • Dock Tech: Develops solutions for real-time water depth analysis, allowing the Port and ships to
25 load the optimal weight a ship can carry according to the specific water conditions at sea. • Naval Dome: Develops maritime cyber defense solutions to protect, deter, detect and prevent cyber-attacks on ports’ digital infrastructures.
As of the date of this report, two of the above-mentioned companies, LOGINNO and Dock Tech have concluded their proof of concept (PoC). Moreover, LOGINNO completed a USD1m deal in Brazil, while Dock Tech is now working with the Israel Ports Authority to further examine the use of its technology in all Israeli ports.
26 Our People
8 SDGs – Goal No. 8 Promoting inclusive and sustainable economic growth, full and productive employment and decent work for all
DECENT WORK AND ECONOMIC GROWTH One of the Port Company’s cornerstones is creating a safe, pleasant and respectful workplace. The Company ensures the rights of its employees and their fair employment terms.
Human Capital and an Advanced Work Environment
Alongside an evolving reality, an advancing technology and a competitive market, the Port employees are the heart that enables us to provide services to thousands of vessels and various stakeholders every day. We believe that our employees are the driver for continued success, and we consider them partners in our endeavors.
The quality of our people, their professionalism and engagement are the factors that set us apart. In order to bring this into practice and realize our employees’ potential, we base our management strategy on several foundations:
Creating a safe, pleasant and respectful work environment: We invest a great deal in promoting our human resources, empowering employees, encouraging professionalism and excellence, enhancing the sense of commitment and belonging, and increasing employee engagement in Port activities. As partners, we maintain ongoing dialogue and continuous communication involving workers’ unions as well.
Uncompromising professionalism: The Port Company invests vast resources in employee professionalism, training and personal development. We believe that our employees’ professionalism and personal development help us reinforce our position as a leading port in Israel and the world, offering our customers a wide variety of port services.
A diverse workplace: As a government-owned company, the Port Company is actively engaged in employing a diverse workforce and ensuring a diverse and inclusive work environment with an adequate representation for different populations and groups within Israeli society.
27 Port Workforce
As of 2019, the Port employed 1,365 workers: סה"כ: Management: 119 137 Management: 18
Employees: 1061 1228 Employees: 167
Permanent Employees: 1013 1152 Permanent Employees: 139
Contract Employees: 167 Men 211 Women Contract Employees: 46 Total: 1180 1365 > Total: 185
(Permanent Employees = Employees under tenure, Contract Employees = Temporary Employees or employees under personal contract)
Port Workforce by Sector (2019)
Operations Marine Craftsmen – Equipment Administration Bulk in automatic Management and Construction facilities 679 98 136 360 24 68
Total: 1365
Recruitment and Retirement 2018-2019
In accordance with the rules applicable to government- owned companies, recruitment at the Port Company is conducted through a public, competitive and fair tender recruitment process. This process consists of predetermined stages including: publishing a public job advertisement (if no candidates were selected through an internal tender); evaluating candidates’ compliance with the terms of the tender; suitability evaluation at a talent evaluation center; summoning suitable candidates for an interview before the Port Hiring Committee; ranking candidates according to their weighted scores and selecting those with the highest weighted score.
In 2018, Employee and manager turnover rate was 2.6% for men and 0.3% for women. In 2019, turnover rate was 1.8% for men and 0.2% for women.
28 Employee Turnover 2018 Age Group Recruited Employees Dismissed/Retired/ Turnover Rate and Managers Resigned Employees and Managers Up to 30 4 0 (inclusive) Men 31-50 (inclusive) 12 5 2.6% 51+ 1 31 Total Men 17 36 Women Up to 30 3 1 (inclusive) 31-50 (inclusive) 9 2 0.3% 51+ 0 1 Total Women 12 4
Employee Turnover 2019 Up to 30 3 0 (inclusive) Men 31-50 (inclusive) 13 5 1.8% 51+ 2 20 Total Men 18 25 Women Up to 30 3 1 (inclusive) 31-50 (inclusive) 3 0 0.2% 51+ 0 2 Total Women 6 3
Distribution by Age
As of 2019, 2.86% of Port employees are younger than 30, 24.4% are over 50 and 72.7% of employees are 30-50 years old.
Employee Age 2019
10 29 141 852 34 299 185 1180 30 and younger 30-50 50 and over Total
29 Distribution by Area of Residence
Ashdod and its surroundings 1142 | 83.6%
Tel Aviv and Negev and the Dan Region Southern Region 93 | 6.8% 87 | 6.4% North Jerusalem and Sharon 18 | 1.3% its surroundings 12 | 1.0% 13 | 1.0%
Company Seniority
Average seniority at the Port Company is 15 years:
Employee 2018 2019 Seniority Women Men Total Women Men Total Under 5 years 33 254 287 37 197 234 5-10 years 24 103 127 21 163 184 10-20 years 85 536 621 84 540 624 20-30 years 30 221 251 32 218 250 30+ years 10 73 83 11 62 73
Education
Port Company employee’s academic distribution:
Number of Employees: 347 146 2 339 142 2 Share of total Employees: 24.4% 10.7% 0.15% 24.8% 10.4% 0.15%
Undergraduate Graduate Advanced Undergraduate Graduate Advanced Degree Degree Degrees Degree Degree Degrees
2019 2018
Workers’ Unions
Organizational representation of Company employees in Unions is categorized into four sectors (and subsectors) according to their positions in the company: • Operational Sector (Subsectors: Dockworkers, Mechanical equipment operators, Bulk workers, Foremen)
30 • Administrative Sector (Subsectors: Administration, Executive Management) • Craftsmen Sector (Subsectors: Workers, Foremen) • Marine Sector (Subsectors: Docking, Officers, Port pilots, Marine lookouts)
As of the reporting date, there are 12 active unions at the Company, representing each individual subsector.
The workers’ organization representing all employee unions is the General Organization of Workers in Israel (Histadrut). However, the organizational division in which each subsector is represented by a separate union necessitates negotiations with each, leading to separate agreements with almost each subsector. Furthermore, in case of disagreements within the negotiation process, each subsector can independently declare a labor dispute and the division into sectors and subsectors increases the risk of such occurrence. The unions’ differentiated structure, the collective agreements and their bargaining power impact and restrict the Company’s ability to introduce organizational and structural changes or streamline processes, thus hindering its managerial flexibility in ongoing operations, such as employee dismissals, mobility, and compensation.
The collective agreements do allow the Company to offer personal contracts to a defined category of position holders that are not subject to collective agreements. As of year-end 2019, 65 Port workers are employed under personal contracts.
Wage Data
Our employees are paid in accordance with the law, including minimum wage as defined by law. Further details are available on the Government Companies Authority website and the Port Company’s financial reports.
Employment through Private Services Contractors and Employment Agencies
The number of temporary workers employed through employment agencies working at the Port is relatively negligible. These employees are usually recruited for short-term tasks for a period of up to ~7.5 months. In addition, there are various workers in areas such as security, cleaning, technology, engineering consulting, accounting, catering, etc. who are employed through service contractors.
31 Employment of Relatives
The Government Companies Regulations (Rules on Employment of Relatives) 2005 (in this section: “the Regulations”) prescribe rules and procedures with respect to the employment of relatives (as defined in the Regulations) of workers employed in government-owned companies. A 2014 amendment determines that a cousin (the son of an aunt or uncle, or the daughter of an aunt or uncle) will be defined as a relative in all that concerns the duty to report. In accordance with the Regulations, a government company is limited in its employment of a person if a relative thereof works in the same company. Hiring such a candidate is subject to many restrictions that require, inter alia, CEO and legal advisor approval of the procedure, approval of the Board of Directors Audit Committee and the Board of Directors, by which the selected candidate holds special skills unmatched by other candidates.
In 2019, the Company employed ~472 Percentage of all 34.6% 35.8% 36.9% employees that are related employees employees who (comprising 34.6% of all Company have relatives in employees). In this regard, it shall be the Company (not including cousins): noted that the amendment broadened the definition of relatives for reporting 2019 2018 2017 purposes, as set forth above, and affected the reported number of related employees. Since the amendment of the regulations, the port company has not hired employees with family ties to other employees at all.
Savings and Mutual Aid Fund
The Company operates a fund intended for reduced-rate employee loans. The fund is financed by the Company and its employees. The fund is managed in a separate Company bank account, in trust for its employees.
Prevention of Sexual Harassment
The Port Company is obligated to a respectful workplace for all, free of any kind of intimidation or harassment, including sexual harassment. The Company’s sexual harassment procedures (number 10- 05-06) are pursuant to the Prevention of Sexual Harassment Law (1998) and the rules and regulations prescribed within. The procedure is distributed and published throughout the Company for its employees and agency contracted employees. The Company takes all measures at its disposal to ensure the incorporation of norms that are in accordance with the Law, regulations and procedures.
The Company conducts lectures and workshops on the prevention of sexual harassment from time to time in addition to courses provided during the on-boarding process of newly hired employees and managers. The material is conveyed through various methods – presentations, lectures, panels, and courses dedicated to specific requirements.
The Port Company social worker is appointed as a sexual harassment prevention trustee and employees are encouraged to contact her with reports, questions or complaints. The social worker participates in seminars and workshops for regular updates on the Law and its enforcement in the workplace.
Approximately 600 employees participated in sexual harassment prevention training during 2018-2019.
32 Employee Welfare and Work-Life Balance
The Role of the Social Worker
A social worker has been available for employees’ support since the establishment of the Port.
The social worker is responsible for employee welfare, identifying individual welfare problems or social/economic distress among employee groups, or any other concern that may pose harm to the employee’s way of life. The social worker helps provide solutions under the conviction that providing a pleasant work environment promotes work productivity. Furthermore, when required, the social worker’s team maintains direct contact with the workers’ families and, if necessary, provides as much possible guidance and / or assistance.
Employee Benefits
Employee benefits and rights are established in the collective agreements, including all issues related to pension funds, advanced study funds, vacations, seniority premiums, convalescence, medical insurance and life insurance for employees and their families, clothing allowance, culture and welfare activities, etc.
In addition, the Port Company provides its employees with additional resources to benefit them and improve their welfare, such as low-rate loans, mutual aid fund, fitness center, book initiative (a discounted bookstore for Company employees and a library), synagogue and clubs.
Welfare Events
The Port Company conducts welfare events for its employees, allocating extensive resources for these events – festivals, employee bonding events, sport days, women’s day, events for children entering 1st grade, Bar/Bat Mitzvah gifts, gifts to new army recruits and more.
In addition, employees are entitled to subsidized tickets for various cultural events. The variety of events was enhanced in the past year and includes: travel and holidays in Israel (Eilat, Dead Sea, Jerusalem, Ma’aleh HaHamisha, Herzeliya, Tiberias, Safed and Tel Aviv) and abroad (Bulgaria, Greece, Malta, Romania and Spain), plays and theater subscriptions, fitness clubs memberships, and shopping vouchers for various retail chains.
33 Work-Life Balance
We are committed to our employees’ families and the needs encountered in their home environment. Thus, we work to promote a working environment that maintains a work-life balance, inter alia by sharing in expenses related to children’s education; flexible work hours for men and women in the administrative sector, subject to supervisor approval; shortened days for new parents and cultural activities and events for the entire family.
Maternity leave/ 2018 2019 Parental leave Women Men Women Men Took Maternity leave/ 2018-2019 maternity leave 13 4 9 3 Parental leave return data Returned from Maternity 9 4 7 1 leave/ Parental leave Remain on leave 4 0 - 2
34 Diversity and Gender Equality
5 SDGs Goal No. 5 - Achieving gender equality
GENDER EQUALITY The Port Company works diligently to promote the advancement of women in line with our goal to employ more women in the Company. The Company appointed a supervisor focused on advancing women and ensuring gender equality.
At the Ashdod Port Company, we consider a diverse working environment to be of great social value, contributing to the Company’s economic success through various ideas and perspectives. We therefore act for the inclusion of different populations among our employees beyond the legal obligation and regulatory requirements.
In addition, diversity promotes creativity and innovation, opens the organization to a large pool of talented individuals and improves the organization’s image with its customers and the public. Diversity also contributes to increased satisfaction among employees, enhancing pride at a workplace that promotes moral and ethical values while contributing to society.
Company Activities toward Fair Representation
The Port Company seeks to integrate a policy of fair representation for populations eligible by law, including populations that are underrepresented in the employment market. As such, the Port operates a steering committee that addresses issues relating to occupational diversity. An additional committee works to promote women’s status and gender equality. The Port Company appointed three position holders to promote diversity and gender equality: Women’s Advancement and Gender Equality Supervisor, Special Needs Employees Advancement Supervisor and Accessibility Coordinator.
These aspects are promoted through: • Designating roles for diverse populations • Affirmative action in the recruitment process • Intra-Organizational communication to raise awareness • Training and activities to raise awareness among managers and employees • Emphasis on multicultural assessment of candidates during the recruitment process • Adjustments in the work environment
35 Government Companies Authority Diversity Initiative
As reviewed in the previous year’s report, in 2017 the Port Company was chosen, together with several other government companies, to take part in a venture initiated to promote occupational diversity by the Companies Authority and the Equal Opportunities Commission.
In 2018, the Company completed implementing the employment program of diverse dockworkers initiated in 2017. The program aimed to bring about the successful integration of diverse employees in the organizational tapestry; curtailing employee objections and obstacles; minimizing the resignation of workers from diverse backgrounds.
As part of the said initiative, the program was formulated with the assistance and guidance of a consultant on behalf of the Equal Employment Opportunities Commission, an expert in employment diversity.
The program, conducted through the involvement of senior management, included several key activities:
• Harnessing the Operations Division management, specifically a senior professional manager to lead field involvement: A Port’s supervisor, a senior professional management position holder, was recruited to lead involvement in the field.
• Mapping target groups for involvement. To improve the prospects of integration, several target groups were defined for involvement in order to remove barriers, acquire and impart knowledge relevant to working in a diverse environment, including effective intercultural communication. Examples of target groups: training division, training course instructors, foremen in the field, relevant workers’ unions and the diverse employees themselves.
• Accompanying the recruitment and integration process, through group meetings with the dockworkers several months after their initial employment - accompanying the dockworkers in meetings where issues from the field are discussed and resolved.
• Round table discussions with dockworkers recently employed, Human Resource management and Operations Division management for feedback and lessons learned. Furthermore, several lessons learned discussions were held with the training division and with the Operations Division management.
• Integrating occupational diversity in Port training sessions - In 2018, 12 training and lecture sessions were held on the subject of occupational diversity, providing tools for diverse crews integrated within the port’s professional development programs.
• Intra-organizational communication.
36 Diversification Achievements as of 2019 • ~0.44% Arabs, Druze and Circassians (6 employees) • ~13.9% people with special needs (189 employees), temporary or permanent disability of which 10 suffer from a significant disability (disclosed voluntarily) • ~2.7% of Ethiopian descent (born in Ethiopia or one of whose parents was born in Ethiopia) (37 employees) • ~4.3% orthodox Jews (58 employees) • 1 person with a significant disability • One orthodox Jew • 5 people of Ethiopian descent • 1 woman for an executive management position and 2 women for operational roles (marine pilot and environmental supervisor), positions that were filled by men in the past.
During 2019, 10 new employees belong to diverse population groups, comprising 18% of total new employees (10/56).
During 2019, out of 4 intra-organizational tenders for executive positions, 3 employees from diverse populations were promoted (75%): 1 orthodox Jew and 2 from the Arab/Druze/ Circassian population.
Though our participation in the above initiative has concluded, the Company, on its own accord, continues to receive professional guidance on diversity from a diversity expert in order to promote the development and integration of workplace diversity.
Gender Diversity
men women
Extended Senior management Administration All Employees management
22% 10% 49% 13.5%
78% 90% 51% 86.5%
Women in office
1 1 2 1 4 Labor safety officer environment supervisor lookouts marine pilot in a dockworker position
37 The Port Company conducts extensive organizational activities toward the advancement of women led by the Women’s Advancement and Gender Equality Supervisor. Thus, for example, the Port Company conducted in 2018 and 2019 an annual event to mark International Women’s Day with the participation of over 100 employees and management members, during which the advancement of women was discussed in several forums. Various groups participated in workshops such as: • A career management course for senior management introducing the participants to peer learning and employee growth, as well as to management and leadership models. • A second cycle of a training session for women and men aimed at developing interpersonal communication, identifying similarities and differences between men and women in workplace communication, self-promotion, the basics of gender equality and dealing with change.
In addition, the Company held unique practical workshops for the advancement of women in the public sphere that were very well received. Ad hoc activities are also held in response to women’s inquiries. In addition, annual activities are held for all female Port workers as part of the International Day for the Prevention of Violence.
Integrating People with Disabilities
Pursuant to the Equal Rights for People with Disabilities Law (1998) and in order to ensure proper representation of people with disabilities, the Company must meet an objective by which 5% of its employees will bear a significant disability, as defined by law.
According to the guidelines set forth in the Government Companies Authority circular dated 22 June 2014, the Company will not initiate contact with an employee regarding a disability, rather the information shall be submitted at the employee’s initiative. The Company allows its employees and enables candidates who wish to do so, to submit a declaration of their inclusion in populations entitled to proper representation. Considering the poor rate of response, the Company is currently unable to estimate the number of employees bearing a significant disability.
However, it shall be noted that the Company regularly employs, mainly in the operations sector, approximately 189 workers bearing a temporary or permanent disability. The Company conducts rehabilitative and reinstatement processes for these workers.
In 2017, a collective agreement dedicated to employing people with disabilities was signed between the Company and the General Organization of Workers in Israel pursuant to which 3 disabled workers were hired. In 2019, these employees and their teams received rehabilitating counseling from a professional expert.
In conclusion, the Port Company publishes tenders dedicated to people with disabilities, works to improve Port accessibility, has appointed a Special Needs Employees Advancement Supervisor and Accessibility Coordinator and conducts working interfaces with relevant parties for promoting the employment of disabled employees.
Integrating Employees of the Arab Sector, including Druze and Circassians
The Port Company publishes tenders dedicated to these populations and maintains a working interface with relevant entities to promote their employment.
38 Integrating Members of the Ethiopian Community
The Port Company publishes tenders dedicated to this population and maintains a working interface with relevant entities to promote their employment. With the employment of the dockworkers in 2017, the Port has maintained a proper representation of this population. Notwithstanding, we strive to achieve proper presentation of this population in administrative and management roles.
Diversification Program Achievements 1. In 2018, a tender was held for an assessment institute, in which a score was given according to parameters related to cultural adjustments in the assessment process, such as: the variety of cultural adjustments, how the adjustments are reflected in the candidate score, and the training relating to diversity offered to the institute’s assessment team. 2. In 2018, a training session was held on providing feedback to managers and staff in teams that include people with significant disabilities. 3. In the years 2018-2019, a calendar was distributed to company employees and managers, celebrating cultural diversity and including holidays and festivals of diverse populations. 4. In 2018, an online course on the subject of accessibility and employment of people with disabilities was designed in order to raise awareness of the issue among company employees. In 2019, the course was presented during a conference organized by the Employer Support Center on behalf of the Council for Employment of Persons with Disabilities for supervisors in charge of employment of people with disabilities in large companies. 5. In 2019, an intern with a disability was accepted for a year’s internship as part of a project supported by the Ministry of Education. During this year, the intern gained practical experience in the field of his studies. 6. In 2019, the Company participated in the Diversity Index event held by the Equal Employment Opportunities Commission with the special attendance of the President of Israel.
Employee Training and Development
The Port Company invests substantial resources in Port worker professionalism, training, instruction and personal development. We believe that our employees’ professionalism and personal development help reinforce our position as a leading port in Israel and the world, enabling us to offer our customers a wide variety of port services. The Port Company’s annual training program addresses three aspects: 1. Professional training – Training employees in various operational roles, training for marine roles in the Marine Department, first aid and safety training and other training programs that the Company is obligated to provide under regulatory requirements, such as HAZMAT and work at height safety. 2. Enrichment courses in various subjects – Professional enrichment courses, such as introduction to the port, shipping and marine industries. Courses on hydraulics and welding, English language, customer service, project management, mediation, risk management, computer skills, as well as ethics, accessibility and gender equality. 3. Welfare and personal development – Readiness for retirement and training for a welfare trustee certification.
39 Each course ends with a feedback process consisting of a review of highlights and points for improvement, followed by a lesson learned discussion.
Training and instruction activities at the Port are managed through Annual average of employee an SAP system that compiles data on all employees’ training hours training hours: according to departments. The Port Company’s training center is supported by computerized systems enabling professional and efficient information management and providing a direct link to 38 36 36 the HR, Finance and Purchasing databases. 2017 2018 2019 New Employee Orientation
As part of their orientation, new employees are introduced to the Port and its various operations, its organizational structure, work methods, etc. Through these orientation courses, new employees learn about the Company’s vision and code of ethics and gain extensive knowledge about their rights and responsibilities, general and road safety, service, security and information privacy, the prevention of sexual harassment, accessibility, and how to properly understand their pay slips. As part of the orientation, new employees learn about the Port’s operational processes and take part in a guided tour of the Port where they are introduced to the docks, loading operations, different types of vessels and the various cranes.
Encouraging Higher Education
Recognizing the importance of higher education for improvement and development, the Port Company subsidizes the tuition of higher education for employees. The Port funds approximately 75% of the cost of tuition at a public university or college.
In 2018 the company subsidized the tuition costs of 14 employees, and in 2019 of 16 employees.
Employee Feedback and Evaluation
As part of the Port Company’s efforts to professionally advance its employees, administrative employees undergo a feedback process evaluating their performance.
40 Responsible Supply Chain
12 SDGs - Goal No.12 – Sustainable consumption and production – Managing responsible consumption and production processes by integrating social
RESPONSIBLE and environmental considerations in procurement processes - promoting a CONSUMPTION AND PRODUCTION responsible, efficient and sustainable management.
The Procurement Department adopts and promotes a product and service purchasing policy that considers economic, environmental and social factors. This policy is implemented beginning with preliminary supplier vetting – evaluating environmental impact, criminal record, preference for local production and women-owned businesses; through systematic procedures (relating to engagements, product purchasing, supplier payments, merchandise receipt, etc.); work processes; and concluding with ongoing communication between employees, suppliers, etc.
The Port’s annual purchasing amounts to ~300m NIS: Goods at ~25m NIS, fuels at ~25m NIS and services at ~250m NIS. Goods are purchased by the Procurement Department in a consolidated manner while services are procured through the individual divisions. Tenders are issued through the Tender Unit.
The Port Company has ~1,200 suppliers, most of whom (~95%) are local.
Our Vision The Procurement Department will lead, promote and initiate procurement and contracts with an emphasis on efficient, high-quality and ethical business value ensuring the Ashdod Port Company’s competitive advantage and reinforcing its status as a leading port.
Achievements during the Reported Period • During the reporting period, the Procurement Department strived to shift its role perception from one that is based mainly on creating contractual agreements to one that finds common ground and common value in managing relationships with suppliers - including in times of conflict, while maintaining proper governance, complying with regulations and attaining business results. • During the reporting period the procurement department implemented the ’Maya’ and ‘Compass Performance’ Systems, which were reviewed in the previous report. The systems are now applied for ongoing management, measurement and improvement of the Department’s performance. • The Procurement Departments’ KPIs are based on quality, time and price. • In 2018-2019, procurement procedures continually improved and became more efficient through the Kaizen Method, leading to an improvement in overall time management of procurement tenders. During 2018, the average tender processing time decreased by 35% compared to 2017 and remained unchanged in 2019.
41 These and more are part of several changes implemented in recent years, leading to a significant increase in utilization of the Port’s investment budget and considerable financial savings in the process of new procurements.
Dialogue with our Suppliers
We believe in maintaining an ongoing dialogue with our suppliers with the aim of promoting open and responsive discussions, long-term cooperation, mutual development and knowledge sharing to improve our working practices. Dialogue with suppliers is conducted through the various professional departments in contact with suppliers at the Port. The Procurement Department acts to enhance relationships with suppliers, expand the supplier database and prepare for the impending competition.
Accordingly, we hold supplier conferences aimed to improve dialogue with suppliers considered strategic partners and impart them with knowledge that can improve their work.
In February 2018, the Port held its first suppliers conference wherein the suppliers were introduced to our procurement process and tools were provided to help small and medium sized businesses. In addition, we presented our principles and the expected changes in the Port’s procurement procedures, conducted an open dialogue with our suppliers and introduced the measures we have taken considering upcoming competition.
In 2019, the Port initialized a plan for a supplier rating process to be implemented during 2020-2012. This rating system will allow the Port to improve the service we receive and improve the overall quality of our suppliers over time.
Complying with the Law and Maintaining Ethical Norms
We are compliant with all legal requirements relating to services provided by employment agencies and service contractors, and conduct ongoing audits as required.
We present our suppliers with the Company’s code of ethics. We expect our business partners, affiliates and contractors, including service contractors, to be familiar with our code of ethics and operate accordingly.
No unusual ethical incidents leading to termination of contracts with suppliers were reported during the reporting year.
Facing the Future
As part of the improvements in the Port’s procurement processes, advanced digitization of all procurement processes and interfaces with other organizational units was conducted during the reporting period, in a manner that corresponds with their needs and the changes taking place in each.
The Port initialized a plan for a supplier rating process to enable the use of consistent quality parameters in prioritizing suppliers, evaluating them and monitoring their performance. In addition, planning began for human resources empowerment aiming to promote specialization in various areas of procurement management.
Implementation of these projects is planned to take place in the years 2020-21 and their results will be reported in subsequent reports.
42 Health and Safety
Port Safety Policy
The Port environment is fraught with hazards, necessitating extreme caution and a strict adherence to procedures in order to avoid injury, which may sometimes be severe. Employees and visitors that call on the Port may be susceptible to various dangers.
Health and safety are among the Port’s highest priorities and the Company considers these matters of material importance. The Company strives to maintain the safety of its employees, customers, visitors and contractors with any means available.
The Port’s safety guidelines are intended to provide our employees with operational methodologies involving minimal risks and through informed risk management. To this end, the Port operates under rigorous and structured procedures relating to various work processes in all areas of operation. Work safety procedures are intended to neutralize the risks as much as possible. To effectively manage existing risks, the Port Company decided, inter alia, to equip Port employees with the most effective protective gear– safety shoes, helmets, HAZMAT suits, pressure suits and more.
The Port Company management dictates a safety policy that is binding of all employees, customers and parties operating within the Port’s facilities stipulating that safe work is efficient work.
The safety policy includes adopting a safety management culture that focuses on the following: • Management and employee representatives commitment to act toward strict fulfillment of the relevant applicable laws, regulations and standards pertaining to employee health and safety, and to take measures toward enforcing compliance by Company managers and employees at all levels. All our employees hold the required certifications and skills for performing their job according to requisites and all hold valid certifications and licenses. • Safety measures are a prerequisite to performing any job within the Port area. Managers and employees are responsible for working in a safe manner while always prioritizing safety over output. • Applying all managerial precautions available in order to mitigate risks inherent to the Port’s work processes while preferring advanced and innovative technological and engineering solutions, where applicable. All while maintaining the principles of ongoing improvement. • Consistent and ongoing activities to mitigate existing risks in work processes while striving toward constant improvement in occupational health and safety issues. • Allocating human resources according to needs, enabling the reduction of double shifts, especially for high-risk positions.
43 • Conducting continuous and methodical investigations and lessons learned of safety incidents and “near miss” incidents.
All management levels are responsible for implementing the occupational health and safety policy within the Company. Managers and supervisors are responsible for supervising their employees and their safety
All employees are responsible for working safely, always prioritizing safety over any other consideration, and are required to act according to safety procedures. Employs must use the protective equipment and gear provided to them, report any safety issue encountered and avoid injury using any item supplied or installed to ensure their health and safety.
The success of our safety Policy is contingent upon the full cooperation and commitment of all Company employees and managers.
Work Accidents and Safety Incidents
166 safety incidents occurred in 2018 and 174 incidents occurred in 2019.
During the reporting period, one fatal work accident occurred at the Port Company: A Security Department employee, Ilanit Tekla, was killed while inspecting a truck in September 2019. The relevant authorities along with the Port Company investigated the incident and procedures were honed in order to prevent the recurrence of similar incidents. The Port’s management maintains close contact with the victim’s family and assists when possible.
118 112 121 19 31 31 26 9 3 2017 2018 2019 2017 2018 2019 2017 2018 2019 Operations Administration and HR Logistics and Engineering
11 3 152 166 174 7 1 0 0 2017 2018 2019 2017 2018 2019 2017 2018 2019 Marine Bulk Total
3,301,661 2,981,694 2,966,503 10.19 11.19 10.54
2017 2018 2019 2017 2018 2019 Total work hours TRIR
44 Reports of “near miss” Safety Incidents
We encourage our employees to report safety incidents that did not result in property or physical damage (“near miss”) in order for us to learn and derive conclusions from such events, thus preventing the recurrence of similar incidents that may pose a risk to our employees or even cause death.
Employees report “near miss” events to their supervisors, emergency crews or safety teams. Significant safety incidents are examined and investigated.
Safety Committees
As part of the Port Company’s efforts to safeguard the wellbeing of its employees and pursuant to the Organization of Work Control Law, the Port Company appointed a Port Safety Committee comprised of an equal proportion of employee and management representatives. In addition to the port committee and in order to improve its performance, the Port appointed joint employee-management subcommittees comprising of 30 members – of which 50% are employee representatives. The committees raise issues that are identified as discrepant or requiring ongoing improvement. Furthermore, these discussions introduce ideas and reach various decisions regarding health and safety at the Port Company. Each division in the Company is represented by at least one employee representative, thus the committees represent all Port employees.
Meeting briefs are submitted to the committee members and presented to the Port Company CEO and to the Occupational Safety and Health Administration in the Ministry of Economy.
Preventative Measures and Safeguarding Employee Health
As part of the Port Company’s Health and Safety policy, the company continuously monitors “occupational diseases”, in order to study and mitigate the risk to which Port employees are exposed.
Occupational disease incidents are reported to the Occupational Disease Registrar at the Ministry of Health’s National Center for Disease Control.
The Port employees most susceptible to contracting occupational diseases are the Operations employees. We take all measures available in order to minimize risk exposure and extensively promote employee awareness to maintaining a safe and healthy workplace.
In addition, along with the Port’s Training Division, the Port’s Security Department routinely offers our employees workshops and seminars to maintain a healthy lifestyle. Thus, for example, we conduct smoking prevention workshops and a nutrition and career workshop that focuses on the link between nutrition and increased chance of diseases, the link between obesity and work accidents, and the importance of meal composition and consumption throughout the day to work performance – concentration, energy, mood, etc. The workshops are accompanied by professional instructors.
The Port Company operates a clinic to administer first aid in case of emergency and enable employees to undergo periodic diagnostic tests.
45 Hazardous Materials (HAZMAT)
The Port Safety Division rigorously monitors and controls the storage of hazardous materials according to strict international standards and permits issued by the Ministry of Environmental Protection.
The Port employs skilled emergency crews able to provide first response to HAZMAT incidents, 24 hours a day through the course of the Port’s operations. The Port conducts occasional drills in order to improve the skills and maintain the abilities of its emergency crews in dealing with severe HAZMAT incidents, as well as a comprehensive annual drill together with the National Emergency Services, environmental protection factors, fire department, police, the IDF, etc.
The Port Company holds the highest risk level toxins permit.
Integrating Safety in the Port Company
The Port’s working environment is constantly changing and dynamic, involving various challenges, each requiring different consideration and approach. In this reality, employee safety awareness is just as essential as the safety procedures themselves. Thus, we invest great efforts at integrating and instilling safety awareness among all employees and external parties working at the Port, through accessible and clear messages.
Safety Training
All Port Company employees undergo safety training at least once a year including, inter alia, lessons learned from past accidents, review of relevant information and reemphasis of procedures. In addition, Port employees participate in security and emergency training, as well as road safety training, as described below.
New employee orientations conducted from time to time, include safety training before work begins. In addition to the general safety guidelines, new employees (including those employed through employment agencies and contractors) undergo dedicated safety training in their field directed by the Safety Supervisor and by their direct supervisor.
46 All safety training sessions are documented and the number of employees participating in safety training is monitored.
During 2018 and 2019, 13,873 and 14,810 hours (respectively) were dedicated to safety training, road safety and emergency response at the Port Company.
External contractors performing various tasks at the Port are debriefed prior to entering the Port and must undergo an online safety tutorial that includes a quiz at its end. This tutorial is a prerequisite for obtaining an entrance permit to the Port. The safety instruction online tutorial was developed by the Security Department and is intended to facilitate the entrance permit receipt process at the Port.
In addition, annual safety workshops are held for our contractors.
Safety training instruction hours
Total Hours Average hours per worker
13,873 14,810 11,459 10.1 10.8 8.4
2017 2018 2019 2017 2018 2019
Safety Publications
In addition to safety training, the Security Department periodically publishes reference materials, leaflets and posters designed to increase the visibility of safety messages and raise awareness to their importance. These leaflets and posters are displayed throughout the Port, in offices and operational areas and are delivered directly to employees’ homes as well. Thus, our employees’ families become familiar with this content and the issue of maintaining work safety becomes a topic of conversation around the dinner table. The Security Department also produces safety videos distributed through social media.
Children Drawing Safety
Once a year, the Security Department conducts its flagship event – a safety themed drawing competition among the employees’ children. Through the course of the year, the children participate in a drawing workshop with volunteer artists from the city of Ashdod. The workshop culminates in a safety themed drawing competition. This project improves the Port’s ties with local artists, enhances Port safety awareness for employees and their families and, no less important – strengthens the bonds between Port employees and their children.
47 The children’s drawings are displayed at the Port’s headquarters and bound into calendars that are distributed to the Port employees and their families.
The parents and their children are invited to participate in the concluding event, during which they are invited to watch an educational play for the whole family.
Road Safety
As part of our efforts to maintain road safety within the Port, we place added emphasis on road safety on the way to and from work at the Port. We stress the importance of this issue to our customers, suppliers and anyone entering our gates and our cautions are received with attention and cooperation. An example for such cooperation is evident in the work conducted with our customers to mark the roads throughout Port.
Training
Company employees undergo road safety training tailored to their jobs in accordance to requirements defined by the applicable regulations and beyond the minimum required. Operations and mechanical equipment workers undergo regular annual training, contractors undergo annual training and training dedicated to specific jobs, new employees undergo training as part of the orientation process and security personnel undergo ongoing training.
During the reported period, some 900 training hours were dedicated to road safety at the Port.
Enforcement
Road safety rules are enforced, and violations investigated daily. The rules are enforced by the Port Traffic Safety Officer and his team as part of their daily work routines. Employees who committed traffic violations are immediately called in to their supervising department manager and subject to penalties based on the severity of the offense. In addition, a Security Department traffic inspector is responsible for enforcing traffic rules on drivers who are not Port employees.
103 traffic accidents occurred in 2018, and 70 accidents occurred in 2019. The improvement corresponds to the increased traffic rules enforcement within the Port area.
Traffic Accidents at the Port
103 93 70
2019 2018 2017
48 In addition to traffic supervision, the Security Department is responsible for all operational vehicles at the port, including licenses, permits, inspections, tests, etc. The department has introduced 10 traffic safety commandments to all operators of operational vehicles at the Port:
10 Traffic Safety Commandments
1. Walk around the vehicle for a visual 6. Check the vehicle’s horn; inspection; 7. Check the vehicle’s air conditioning; 2. Check the general condition of the tires, 8. Check the vehicle’s brakes by pressing tear and wear; the brake pedal and stopping the 3. Locate oil leaks, if any; Check the motor vehicle; oil and coolant; 9. Check the vehicle’s cameras; 4. Check the vehicle’s mirrors; 10. Check reverse alarm and check safety 5. Check the driver’s seat, belts
The above rules enable operators to identify mechanical faults and prevent accidents.
Immediate Response to Road Safety Hazards
Employees encountering a road hazard can report it through a computerized system recently implemented at the Ashdod Port. The report is directed to the Road Safety Department where it is immediately addressed, enabling proper investigation of the hazards and/or accidents.
In addition, the Department’s employees conduct regular patrols to detect road safety hazards and respond accordingly.
“Driving Differently in Business”
This is the third year in which the Port Company participates in the National Road Safety Authority’s “Driving Differently in Business” program. The program links various organizations with the NRSA which lends its relevant professional know-how to assist organizations in realizing and implementing road safety while integrating the issue into their business operations, thus promoting behavioral change and a shift in driving culture.
The project has been very well received in the Company.
“Transporter Day”
The Port Company marks an annual “Transporter Day”, placing transporters at the top of our priorities. “Transporter Day” is part of an organizational effort to demonstrate the Company’s respect and appreciation for our drivers and their work.
49 On “Transporter Day”, we welcome our drivers with a special reception and conduct various activities throughout the Port to increase employee awareness to transporters and the hard work they perform throughout the year. The Port encourages its employees to treat the drivers with patience and cooperate with their needs. All Port departments participate in this special day. On this day, the Road Safety Department promotes activities intended to increase drivers’ awareness to safety and adherence to Port safety procedures.
Road Safety Officers Conference
Every two years, the Port Company holds a conference with transport companies’ road safety officers and their CEOs, Ministry of Transportation representatives, Israel Police representatives and relevant parties at the Port Company. Participants are presented with information relating to road safety and relations between the Port Company and transport companies are further enhanced.
Road Safety Forum
The forum convenes 4 times a year with a representative from the Ministry of Transportation, a representative of the National Road Safety Authority, the CEO of Sa-Sa Transportation Company, a senior road safety officer, a Port road safety officer and other relevant parties. The forum serves as a platform for discussion of traffic safety issues and challenges and the forum members submit proposals and solutions for improving safety levels based on their experience and accumulated know-how.
50 Security
As a marine gateway to the heart of Israel, security arrangements at the Port of Ashdod are of strategic importance and are part of Israel’s borders defense system, in terms of manned and armed security, security inspections and protection of the Port’s bay.
Security at the port is entrusted to the Head of Security Emergency Response and Cyber, reporting directly to the company’s CEO.
Security teams: Security guards and inspectors undergo dedicated training as well as refresher courses and drills in order to maintain operational competence in accordance to law. Security procedures at the Port are subject to the National Security procedures and guidelines as defined by law according to areas of responsibility.
Cyber Security
With the increased importance of computerized information systems to the Port’s operations and the protection of its proprietary assets, a cyber-security team was created at the Port Company. By virtue of the Port Company’s responsibility for a facility of national importance, the Company is guided directly by the National Cyber Security Authority. The Port’s cyber security team uses the most advanced technology and methods to ensure the integrity of the port systems, in order to maintain business continuity and operational stability.
Security Incidents during the Reporting Period
In November 2019, Ms. Marina Ratosh was shot dead by a security guard after breaking through the entrance checkpoint at the Port of Ashdod. After a thorough investigation of this tragic incident by the Israel Police and other relevant parties, it was concluded that the Port’s security officers acted according to procedures.
The Port Company’s management is deeply saddened by this tragic event and shares in the family’s grief.
51 Our Environmental Responsibility
Operating at sea and on land, the Port’s environmental impact is mainly the result of emissions generated by the ships and trucks calling at the Port for the transportation of cargo, and the potential environmental damage that can result from the nature of the cargoes – specifically bulk cargo, liquids and hazardous materials. As such, the Company’s sustainable development strategy includes a meticulous regard to environmental protection in general and sea and coast environment in particular.
Furthermore, the operational aspects of the Port include services such as loading and unloading cargo, storage and ship services (such as refueling, waste and bilge water removal). These activities require use of environmental resources, such as soil, energy and water, and as such may impact the environment, seawater and soil quality.
The main environmental issues associated with the Port Company’s activities are: a. Handling hazardous materials transported through and stored at the Port; b. Preventing seawater pollution from land-based sources and their treatment in the Port area; c. Air pollution from ships, trucks and operational activities including bulk loading and unloading; d. Soil contamination; e. Greenhouse gas emissions
Environmental Policy
The Port Company’s environmental policy governs the Company’s responsible management of environmental risks. Among other factors, the Company is committed to: 1. Integrating environmental considerations into the decision-making process in port construction and development; 2. Operating the Port’s facilities while setting targets for continuously minimizing our environmental impact; 3. Complying with all relevant environmental legislation and regulations of international treaties and agreements to which the country is a signatory; 4. Utilizing natural resources such as soil, energy and water wisely, while minimizing waste production and encouraging the use of recyclable materials; 5. Raising Port employees and contractor’s environmental protection awareness and commitment; 6. Ensuring transparency in environmental reporting enabling a conducive dialogue with relevant authorities, statutory bodies and the public.
52 Within the framework of the above policy, the Port Company works to promote substantial environmental investment in the Port. Activities promoting environmental protection in ports adjacent to urban areas are of high significance to urban public awareness. The urban public is concerned by the effects of the ports’ handling large amounts of hazardous materials and the potential for sea and air pollution resulting from the numerous vessels and trucks that frequent the ports each year.
When working with contractors and professionals acting on behalf of the Port, the Company and its management are lawfully required to monitor all operations. To ensure responsible contractor and professional workers operations, the Port requires that they adopt appropriate criteria, and act to protect the environment: Every contractual agreement with the Port includes an environmental appendix detailing guidelines on environmental issues. In addition, contractors and professional workers are obliged to undergo training with the Port’s Environmental Coordinator, in which emphasis is given to environment protection relevant to the type of activity. The company has also established an environmental unit that includes five dedicated supervisors who oversee and guide the activities of contractors and professional workers when necessary. It should be noted that compliance with the guidelines detailed above does not exempt contractors or professional workers from observing all environmental provisions determined by law and any requirements by relevant authorities, including the requirements of the Port Company.
Environmental Management
The Port’s Head of Business Development and Environmental Compliance reports directly to the CEO, and is responsible for a department that consists of an Environmental Coordinator who operates a team of environmental supervisors. The Environmental Unit operates 24 hours a day during Port operating hours, monitoring cargo (including bulk) loading and unloading operations, conducting patrols to detect environmental hazards around the Port, testing various samples and supervising environmentally sensitive tasks (such as contaminated soil disposal, electronic waste disposal, retrieving marine scrap, cleaning operational areas, maintaining drainage systems, infrastructural works at or near the water, and any other task bearing an environmental aspect). The Unit’s supervisors locate, monitor, handle and report environmental incidents.
Establishing and Reinforcing the Environmental Supervision Unit
Operating in accordance with environmental protocols (Sea Discharge Permit and Emission Source Provisions under the Clean Air Law), the Port’s professionalism and experience is essential for compliance with all the protocols’ provisions: (a) Provisions requiring cessation of operational work; (b) Provisions requiring operational measures to prevent and reduce emissions that may cause air or sea pollution.
Professionalism and experience enable the continuity of operational work whenever possible pursuant to all provisions required by law. To this end, the provisions require the training of a dedicated Environmental Inspection Unit to perform the above tasks.
The Environmental Unit is not only responsible for supervising and monitoring compliance with the above-mentioned provisions, but also for supervising and handling various environmental issues within the Port, including relevant contract management. The unit inspectors complete monthly environmental reports, detailing all environmental related events and how they were addressed. In addition, the Unit inspectors impart environmental training tailored to the various activities performed at the Port according to the role and nature of the task performed.
53 Since its inception, the unit has upheld its purpose and it is evident that the level of supervision and awareness to environmental issues at the Port has increased.
Until 2018, the Unit’s inspectors were employed as temporary workers. However, as a lesson learned from an incident following which a sanction was imposed on the Port (see below) - the company’s board of directors decided to increase the Unit’s workforce to five inspectors and employ them on a permanent basis. In 2019, two more inspectors were hired, and the unit currently consists of five inspectors and a coordinator responsible for their activities. The Unit is subordinate to the Company’s Head of Business development and Environmental Compliance.
Intra-Organizational Compliance Program
The Port Company follows an intra-organizational environmental compliance program designed to achieve the following objectives:
1. To enable Port Company position holders and Board members to perform their duties under environmental legislation, to supervise and do their utmost to prevent environmental violations by the Company or its employees.
2. To ensure Company compliance with binding environmental requirements pursuant to the law and statutory protocols applying thereto, including toxin permits, Emission Source Provisions under the Clean Air Law and discharge permits.
3. To minimize the environmental impact of the Company’s operations and the potential risks it poses to man and environment in accordance to the stipulated laws and to instill a culture of respect to the law and compliance with environmental protection legislation.
The compliance program is managed by the Port’s Environmental Unit and is supervised through a periodic inspection by a law firm that consults the Port on environmental matters in order to monitor the relevant legislation and regulations that apply to the Port Company and take action to remedy any discrepancies. Due to the frequent changes in environmental regulation provisions, the compliance program inspection benchmarks are updated regularly, and meetings are held several times a year with the attorneys consulting the Port Company to review any added or amended regulations.
Providing environmental information for public inspection
The Company is subject to the Freedom of Information Act and the Freedom of Information Regulations (Public Access to Environmental Information) 2009, which entered into force on September 4, 2010. These regulations establish that public authorities, including government-owned companies, must disclose environmental information for public inspection with respect to any environmental hazard that occurs in ways prescribed in these regulations.
The regulations establish a detailed description of emission types, information sources, and public disclosure methods. The Company has prepared to implement these regulations. As this law and these regulations have entered into force, government-owned companies may experience an increased exposure to environmental related issues, including criticism, lawsuits and grievances.
54 Pollution Prevention Measures
Preventing and Minimizing Sea and Air Pollution from Land-Based Sources
Bulk cargo is unpacked dry cargo such as: grains (seeds and seed products), sulfur, petcoke (solid oil- based fuel), clinker, cement, sugar, gypsum, perlite and other types of cargo. Most of the bulk cargo transported at the port consists of imported grains (wheat, cereals, corn and soybeans).
Bulk cargo loading and unloading is performed mainly by grab cranes and hoppers. This operation may lead dust and cargo residue to seep into the sea due to a technical malfunction or as a result of the nature of the cargo and the weather conditions (precipitation and/or winds). In order to prevent and minimize this risk, numerous steps are being taken, among them: • Fully enclosed continuous pneumatic ship unloaders for unloading grain and an eco-hopper for unloading heaped bulk with covered conveyors to the truck loading station. • Clinker unloading through specialized hoppers (eco hoppers). • Clean cement unloading: (1) Mobile mechanical unloaders; (2) Pneumatic unloading system – covered conveyors connect to silos that load road containers; (3) Self-unloading ships that directly unload containers. • Purchase of additional operational equipment to reduce pollution, including unloaders and eco hoppers for additional cargo. • Air monitoring through monitoring stations located on the main platforms where bulk cargo is unloaded. • Construction of a grain conveyor to lead grain from platform 21 to the Ashdod silos. • Laying tarpaulin in the gap between the ship and the dock to prevent material from falling into the sea. • More frequent dock cleaning and environmental supervision at all Port operation hours.
This matter was defined as a strategic goal in the Port Company’s Sustainable Development Plan as sea pollution caused by unloading of bulk cargo constitutes one of the Port’s potential negative environmental impacts and poses a significant business risk. The Port is subject to the Sea Discharge Permit and Emission Source Provisions under the Clean Air Law pursuant to Ministry of Environmental Protection guidelines.
photo: green funnels used to discharge clinker (right) and grains (left ).
55 2017-2019 Unloader and Clean Unloading Facilities - Unloading Rates (tons)
2019 2018 2017 Total bulk cargo 4,783,059 4,803,521 3,384,958
Total unloader discharge (Grains) 520,453 654,122 461,532 Total unloader and eco facilities discharge 1,168,751 1,020,747 714,229 (Cement) Eco hopper clinker discharge 503,820 137,291 146,500
Total unloaders and hopper discharge 2,193,024 1,812,160 1,322,261 Rate of discharging using eco facilities out of 45.8% 37.7% 39% total bulk cargo discharged
Air Quality Monitoring at the Port
The operational activity of unloading and loading bulk cargo affects the air quality in the Port area. When concentrations of a pollutant exceed the level of the air quality standards determined for the Port, actions are taken to reduce the amount of dust, including cleaning, equipment maintenance and ceasing cargo handling.
During the reporting period, an air monitoring system was instituted at the Port operational area - in accordance with the Emission Source Provisions under the Clean Air Law. The system consists of a fixed monitoring station measuring TSP and PM10 and two mobile stations measuring TSP. The system is used to monitor and control the loading and unloading activity of bulk cargo while transmitting the monitored data to the National Air Monitoring Network.
The Port’s mobile monitoring stations were positioned following the Port Company’s appeal to the Commissioner of the Clean Air Law to allow the unloading and loading of bulk cargo through clear and measurable definitions that will replace the requirement for action whenever “visible dust” is seen above the hopper and replace it with a different definition of “dust outside Port limits”.
Following this request, the Ministry of Environmental Protection agreed on a “pilot” program in which e two additional monitoring stations were placed on the operational platforms and measure the dust levels on these platforms.
Hazardous Materials
The Port of Ashdod handles numerous cargos containing hazardous materials (hereinafter: HAZMAT) at various categories of risk. Cargo at the highest risk category include, inter alia, Isotank containers containing bromine or ammonia (volatile substances with a very high degree of toxicity; leakage can cause severe damage to living organisms and their surroundings and necessitates population evacuation), various types of minerals which may contain low-concentration radioactive materials and explosives. Handling hazardous materials, transporting and storing them requires compliance with various regulations and safety rules, including restrictions regarding maintaining safety distance from the cargo, halting other activities when unloading and loading hazardous materials, defining specific
56 docks where hazardous materials may be unloaded and loaded, and delimiting hazardous materials storage location and period. Incidents involving HAZMAT may lead to injury, property damage and the implementation of emergency Port protocols that may require the cessation of all Port activities, evacuation of those present at the Port (and at times the surrounding areas) and measures to identify and neutralize the risk when possible.
Handling (transportation and storage) of HAZMAT in the port is subject to international conventions published by the IMO (International Maritime Organization) standard, to the national legislation - Hazardous Materials Act and its pursuant regulations, as well as the Company’s internal work procedures.
The Company’s toxin permit is granted under the Hazardous Materials Act and renewed periodically. The toxin permit defines, inter alia, the maximum amount of hazardous materials that can be stored, proper handling of containers bearing hazardous materials and includes conditions regarding storage, signage, emergency preparedness, transport, etc.
17,942 45,844 268,774 751,830 2018 2019 2018 2019 No. of HAZMAT containers Total HAZMAT weight (Ton)
Climate Change and Energy Efficiency
SDGs - Goal No. 7 – Ensuring access to affordable, reliable, sustainable and 7 modern energy - The Port Company aims to reduce its energy consumption and make use of less polluting alternatives. 100% of the Port’s energy consumption AFFORDABLE AND CLEAN ENERGY derives from clean natural gas, reducing the Company’s environmental impact.
As a response to the challenges of climate change, the reduction of greenhouse gas emissions was defined as a strategic goal in the Port Company’s Sustainable Development Plan submitted to the Government Companies Authority.
The direct (fuel consumption) and indirect (electricity consumption) emission sources attributed to seaports are categorized into 2 main types, each with several emission factors:
1. Stationary emission sources: Mainly energy consuming equipment and buildings: operating cranes, air conditioning, dock illumination, computer equipment, cold storage containers, etc.
2. Mobile emission sources: Generators, operational vehicles and marine vessels using diesel fuel: tugs, forklifts, bulldozers, pilot boats, security boats, etc., the fleet of operational vehicles and the leased vehicles used by Company employees.
The majority of greenhouse gas emissions derive from trucks transporting goods to and from the Port
57 and from marine vessels while waiting to enter the Port, while unloading and loading cargo and while entering and leaving the Port’s bay.
Electricity Consumption
A review of the electricity consumption data reveals an approximate 4% decrease in consumption in 2018 compared to 2017, resulting from the implementation of various energy efficiency programs. The total amount of cargo remained unchanged in 2019 with energy consumption that year remaining correspondingly constant.
Total fuel consumption of Port vehicles and vessels remained unchanged during the years reviewed.
Type 2019 2018 2017 Gasoline (Liters – leased vehicles) 288,642 292,991 307,332 Gasoline (GJ – Energy) 9,672 9,839 10,299 Diesel (Liters – vehicles, operational and leased, 4,886,489 5,176,756 5,153,748 tug and pilot boats Diesel Energy (Gj) 180,032 190,750 189,871 Electricity (KWh) 45,853,416 45,618,440 47,622,960 Electric Energy (Gj) 165,068 164,222 171,443 Total Energy (Gj) 354,772 364,811 371,613 Energy Intensity (Kj/transported Ton) 15.87 16.79 16.47
Greenhouse Gas Emissions (CO2eq/ton)
The ratio between the weight (Kg) of greenhouse gas emissions resulting from the Company’s operations and the total cargo transported to and from the Port (tons) in a calendar year has been defined as a strategic goal in the Port Company’s Sustainable Development Plan.
Greenhouse Gas (CO2eq/ton) Scope 1 Scope 2 14,616 16,287 30,903 14,895 15,875 30,770 12,340 15,888 28,228 Total Greenhouse Emissions 2017 2018 2019
Greenhouse gas emissions CO2eq (kg) / Transported cargo (ton)
2017 1.39 kg 2018 1.42 kg 2019 1.26 kg
58 Water and Wastewater
The Port uses water mainly to rinse operational equipment (hoppers, grabbers, vats, etc.), water supply to customers and occupants (leasing at the Port, contractors working at the port and anchored ships) and various landscape needs.
Water and wastewater (m3) Water (m3) Wastewater (m3)
68,020 238,380 79,976 221,525 77,573 234,758
2017 2018 2019
The decrease in water use during 2019 compared to 2018 is a result of continued efforts to immediately locate and repair leaks and faulty water segments.
A rear drainage system is being installed at pier 21 with routinely maintained valves that can be released on rainy days and allow clean rainwater surface runoff to drain into the sea. The valves are released only once the area is properly cleaned and a sample from the water has been taken. When bulk cargo is being unloaded or when water is polluted, the water is extracted in specialized tankers and disposed through the proper facilities.
Pier 5 is currently being fitted with a drainage system that will lead surface runoff from piers with an incline (21, 24, and 5) to preliminary processing and treatment through bar screens.
Waste
Various forms of solid waste are generated during the Port’s operations and are treated according to the relevant requirements. The Port Company manages waste mainly by reducing waste at the source, recycling and disposing at landfills
8,540 Waste (ton) 2017-2019 7,505 6,283 5,508 2017 4,786 4,606 3,934 2018 2019 1,221 721
Recyclable waste Landfill waste Total solid waste
2,925 1,776 2,059 1277 1,691 1,232 1,277 0 283 Recyclable hazardous waste Landfill hazardous waste Total hazardous waste
59 Environmental Harm Incidents
During the reporting years no environmental harm incidents had occurred.
Legal Proceedings and Regulation
1. On February 2, 2017, as part of an operational voyage from the Port of Ashdod to the Port of Haifa, the tugboat Samson struck a fish cage approximately 12 km from the port of Ashdod. As a result of the accident, approximately 150 liters of oil leaked into the sea.
In November 2019, a judgment was filed against the Company including (a) a fine of NIS 10,000 paid to the Marine Pollution Prevention Fund; (b) a 3 year, NIS 20,000 bond as an assurance to avoid a recurrence of the offense for which it was fined (non-disclosure of the incident).
2. According to the conditions set out by the Ministry of Environmental Protection, the Company must acquire unloaders for sulfur, petcoke, grain and grain products by January 2019 and an unloader for clinker by September 2019.
In February 2019, the Port Company received notice from the Ministry of Environmental Protection of an intention to impose a financial sanction of NIS 3,667,600 on the Port Company in accordance with the Clean Air Law, subject to a right of appeal, for non-compliance with the above-mentioned schedule.
Concurrently, the Port Company was granted an extension in which to present signed contracts with the unloaders suppliers: for grains, grain products, sulfur, petcoke and clinker; with the Israel Ports Development Company for the construction of a conveyor belt for grains and grain products; and purchase agreements for two eco hoppers for grain and grain products and one eco hopper for clinker.
Environmental Investments 1. Purchase of unloading equipment to reduce air and sea pollution: a. During the reporting period the following equipment was purchased: i. 3 eco hoppers in early 2019 - two for grain and grain products and one for clinker. ii. Contracts have been signed for the supply of two sulfur unloaders - one mobile and the other stationary, which are scheduled to arrive by late 2020. iii. Purchase of a large mechanical grain unloader to begin operation in 2022 subject to the completion of construction on pier 21 and the completion of a dedicated access to grain ships, including the construction of a grain conveyor connecting the unloading conveyors at the western end of pier 21 to the Ashdod silos. 2. Renovation of pier 5, including the construction of an incline and a drainage system that leads surface runoff rainwater to a filtration facility at the end of the pier. 3. Expansion of the environmental unit including personnel allocation and equipment. 4. Performance of additional actions to reduce environmental impact and protect the environment.
The total environmental investment in projects currently underway at the Ashdod Port Company amounts to over NIS 157 million.
60 Our Community
SDGs - Goal No. 11- Make cities and human settlements inclusive, safe, resilient 11 and sustainable - The Port Company promotes social and environmental initiatives with the city of Ashdod and its surroundings, through the belief that SUSTAINABLE CITIES AND COMMUNITIES the Port can impact the resilience of its community.
The Port Company impacts everyday life in Ashdod and its surrounding areas. Since its establishment, the Port has served as an economic, social and occupational anchor for the city and remains among its most prominent symbols. Thus, the Port Company plays a role in Ashdod’s community resilience.
We place a great emphasis on the strong relationship created between the Port Company and the city and community in which we operate. Community relations, and public communication regarding environmental protection, are important factors in the realization and implementation of the Port Company’s social and corporate responsibility, directly derived from the Company’s code of ethics and from its values and vision.
We maintain strong ties with the city’s leadership and residents, enhancing community relations through joint activities and community involvement.
Joint Social Ventures 2018-2019
In 2018-2019, joint ventures were formed with various NPOs and corporations: The Municipal Company for Culture & Leisure in Ashdod, Road Leaders, Enosh – The Israeli Mental Health Association, The Israeli Marine Mammal Research and Assistance Center, The Municipal Authority for Combatting Addiction, Pitchon Lev Humanitarian Organization, Marine Ort School and Ziv Neurim Youth Foundation.
Each year, the Port initiates at least 5 social projects related to the Company’s business activities or activities related to the environment.
“Feeling the Sea”
The Port Company has initiated an association with the Israeli Marine Mammal Research & Assistance Center. The association is reflected in continuous support and mainly in the establishment of the “Dolphin and Sea” center at the Marine Ort School Campus – a center focused on
61 disseminating knowledge and increasing public awareness to environmental issues. The program seeks to educate and raise awareness to the inseparable bond between man, sea, and environment. The program promotes environmental literacy in general and, more specifically, exposes children to the marine world and the world of marine mammals.
Some 25 kindergartens from around Ashdod participated in the center’s 2018-2019 program, including approximately 750 children who experienced the center’s intriguing and instructive encounter with the marine world and its mammals. A total of 1,500 children participated in the program during the reporting period. For older children aged 9-18, the center offers an ecological tour program: A day tour of three sites around the city: Lachish River, the Ashdod beach and the “Dolphin and the Sea” center; an integrated tour of the Port Visitors Center and the “Dolphin and the Sea” center.
The center also hosted a training program for preschool teachers designed to impart knowledge and tools focused on the intricacies of marine and water resources and introduce the Port and its operations.
Collaboration with “Marine Ort” School
The Port Company and the Ort network have devised a unique solution for the local shortage in practical engineers – a high school training program for marine logistics practical engineers granting five matriculation credits. This joint program enables the students’ future integration in the marine industry.
During the academic year, seniors at “Marine Ort”, located adjacent to the Port, take part in Company activities mentored by senior Port engineers. The activities include joint and concentrated research, collecting real data in the field, formulating solutions and developing hypotheses, financial literacy, inventory management, outcome prediction and cost analysis, operating production systems, managing and improving incentive plans, etc.
As part of this collaboration, high school seniors, mentored by Port managers and supervised by the Ministry of Education (5 matriculation credits), research various functions at the Port and submit proposals for improving work processes. Through the course of this program, students present proposals on subjects such as: reducing container unloading times, improving employee productivity, increasing motivation, time saving, reducing truck driver queue times, redefining priorities for vehicles commuting to and from the Port.
The Port has sponsored this project for six consecutive years and plans to continue to offer it in the future. The project won several national education awards, inspiring successful cooperation between local industry and the educational system.
62 “Ziv Neurim”
The “Ziv Neurim” Foundation promotes student success within the educational system and maintains a longtime commitment to school dropout prevention. The Foundation offers a variety of activities, mainly focused on water sports such as sailing, surfing, kayaking, windsurfing, scuba diving and more.
The Port Company and “Ziv Neurim” work jointly to prevent at-risk youth from dropping out of school by introducing them to sea-based activities combined with sustainability and environmental awareness.
“Enosh” – The Israeli Mental Health Association
Enosh provides rehabilitative services for individuals with psychiatric disabilities and their family members, including vocational opportunities for restoring basic skills. In Ashdod, the Association operates an employment center and a social center and offers housing assistance as well as apartment maintenance.
The collaboration between the Port Company and Enosh includes the establishment of an ecologic community garden with the help of the Enosh community members. The participants tend to the garden together with the neighborhood community. Supported by the Association’s volunteers, disabled individuals can participate in various weekly activities such as: cheese making, vegetable gardening, raising community awareness to litter prevention and the environment, urban gardening, botany, developing urban “green spaces” in neighborhoods and more.
The Municipal Authority for Combatting Addiction and Violence
The Authority’s key objective is to provide employment opportunities for the youth of Ashdod geared toward their empowerment. During 2018-2019 over 200 youths took part in the Authority’s activities.
The Port’s joint ventures with the Authority include: • Roads of Ashdod - Training program for accrediting youths to operate as tour guides at select Ashdod sites: an initiative promoted by the Urban Association. Students are trained to conduct tours in various foreign languages across 14 specially selected sites throughout the city. • Rose Colored Glasses – A program offering a photography course and employment opportunities: instructed by professional photographers (“Zoom In”), 4 months (3 hours per week) of training at the museum. The program consists of local youths (30%) and at-risk youths (70%). The youths are employed as photographers and editors at local events, alongside professional photographers.
63 Employee Volunteering
Community volunteer work is among the cornerstones of our workplace. The volunteering spirit and solidarity of our employees is reflected in their everyday work at the Port.
Thus, rooted on the perception that the Port is an integral part of the local community, we encourage our employees to volunteer and take an active part in charitable ventures within the community. To this end, we occasionally hold registration days for volunteering at various organizations and pay special tribute to our employee volunteers.
Encouraging volunteerism has prompted over 230 employees to contribute volunteer service hours to various endeavors, including NPOs: Etgarim, Pitchon Lev, Yedidim, Ziv Neurim, Enosh, and many others as well as to first responders crews: Paramedics, Police, Fire Department, etc.
Among our volunteers are executive managers and operational workers. Our employees have contributed thousands of volunteer hours every year!
“Surf Life Saving Israel” – 11 of our employees volunteer at Surf Life Saving Israel, led by a Port Company’s emergency unit crewmember. Originating in Australia, this organization is one of many around the world aiming to increase water safety awareness. The volunteers work to assist lifeguards at local beaches.
Visitors Center
Our visitor’s center is among the largest and most advanced in Israel, aiming to present the Port’s strategic significance and economic contribution since its inception while evoking the visitors’ positive emotional response to its operations. The Center provides visitors with an interactive introduction to the Port activities, its history and future plans.
The Center was established as part of the Port Company’s Community Relations and Social Responsibility program. The Center provides a unique view of the Port’s design, its key operational processes and its use of advanced technologies and computer applications. The visitors are guided through various interactive mediums including films, games, and activity stations such as simulations of eight various operations conducted at the port.
Port tours and visits are suited for a wide variety of audiences. Visitors include business customers such as importers and exporters, students, tourists, soldiers, senior citizen groups and more. The Visitors Center was designed to meet the needs of different audiences. One of the Center’s objectives is to provide its guests a closer view of the Port’s operations in an engaging and interactive manner, including a walk through the Visitors Center itself and an escorted tour along the piers. During their visit, guests will learn about the Port’s many facets, including its history, contribution to Israel’s economy, the strategic importance of its location, its use of advanced technology and its commitment to the environment.
In 2019, our Visitor’s Center received the Mapa website, “Recommendation Seal” for the 8th consecutive year.
Since its inception and as of 2019, the Port’s Visitors Center has hosted over 370,000 people!
64 Corporate Governance and Ethics
Corporate Governance
The Board of Directors (herein: The BOD) is responsible for determining the Port Company policy and defining its strategy. The BOD oversees and approves the Company’s financial reports and assesses its financial position. It also supervises the performance and activities of the CEO. The BOD acts in accordance with the powers determined by the Companies Law and the Government Companies Law and pursuant to binding procedures.
The BOD convenes at least once a month and as deemed necessary. Appeals to the Board of Directors are submitted through the Company CEO and/or the Corporate Secretary.
The corporate governance rules came into force in 2018, regulating the relationship between management and the BOD in a comprehensive and complete manner. The rules determine the balance of power between the CEO and the chairman, establish distinctions between day-to-day management and policymaking and more. Corporate governance aims to create clarity between the managing bodies and thus improve Company management.
Significant Role Changes in the Company
In April 2020, Moshe Zana was appointed as the new CEO of the Ashdod Port Company, after the former CEO, Yitzhak Blumenthal resigned in April 2019. During the interim period, Itzik Cohen, the Port’s COO, served as acting CEO.
Composition of the Board 2018-2019 • Orna Hozman-Bechor – Chairperson • Shalom Elmakies • Yulia Reish-Goldstein • Yaakov Blitstein • Nava Zaken • Ronit Schwartz Pollack (ended her role in June 2018) • Ahuva Yanai (ended her role in June 2018) • Ron Iluz
65 • Malek Amror • Joseph Elbaz • Matan Yegel (appointed in December 2019)
Board Composition and Committees 2018-2019
Committees Meetings in Average Meetings in Average 2018 Attendance Rate 2019 Attendance Rate Audit Committee 7 94% 7 82% 13 Finance and Investment 96% 7 80% Committee HR and Administration 8 92% 8 80% Committee Strategy Committee 2 100% 2 92%
2018 2019 )31.12.18( )31.12.19( Men 5 6 Women 5 3 Under 30 0 0 30-50 4 4 Over 50 6 5 Arab 1 1 Accounting and Financial Expertise 2 2 Risk Management Expertise 1 1
Board Committees
The board operates through four committees: 1. Audit Committee, responsible for Port Company audits pursuant to the law and the Government Companies Authority requirements, for State Comptroller queries and Company’s audit reports. In addition, the committee is responsible for the internal auditing plan and the Company’s auditor budget. 2. Finance and Investment Committee, responsible for the Port Company’s financial reports and for the investment of pension funds and liquid funds. The committee is also responsible for managing the Company’s development budget and its current budget. 3. HR and Administration Committee, responsible for labor agreements, number of workforce allocations and labor relations. 4. Strategy Committee, responsible for formulating the Company’s business strategy and enforcing its strategic plan.
The Board of Director may establish ad hock committees in addition to its regular committees.
66 Internal Audit
The Company’s internal auditor reviews and monitors the work processes of various Company operations pursuant to an approved audit plan. The internal auditor prepares audit reports for the Company management and board, including suggestions for improvement. In addition to auditing responsibilities, the internal auditor is also in charge of employee grievances.
Ashdod Port Corruption Case
In March 2018, the Be’er Sheva District Court cleared the former Port Company CEO and the former Workers’ Union Chairman of all allegations against them. The State Attorney’s Office appealed the Court’s decision regarding the former Workers’ Union Chairman - and in December 2019, the Supreme Court accepted the appeal and convicted the former Union Chairman on two counts of fraud and breach of trust.
Risk Management
Risk management at the Port Company is conducted according to the professional rules applicable to the industry and according to the Government Companies Authority provisions and the circular of the Companies Authority on the subject of risk management in Government companies.
Pursuant to this circular, risk control and assessment are performed based on a uniform methodology, establishing control mechanisms in which the Company’s Board plays a key role. The Board has appointed a risk manager, responsible for developing tools for identifying, assessing, controlling and mitigating risks and for presenting them to the Company management and Board from time to time and no less than once a quarter.
Ethics
As a government-owned company, we hold an obligation and a responsibility to the public to operate in an ethical manner and maintain rigorous and uncompromising ethical standards in our business operations.
Port Company employees and management face constant ethical issues and dilemmas. It is our role to provide effective tools for such challenges and for the decision-making process. To this end, we conduct occasional discussions on Port operational ethics in various forums and at various levels.
The Port Company’s risk assessment includes ethical risks while the internal auditor’s audit plan also relates to such risks. In addition, as of 2009, the Company is fully compliant with SOX regulations.
In early 2018, a review of embezzlement and fraud incidents was prepared for the Ashdod Port Company by an external consultant. The review did not yield any material findings. The significant potential risks identified by the review were addressed by strengthening and establishing additional controls to the Port’s work processes.
67 The Port’s Code of Ethics
The behavioral norms and values defined by the Port Company’s Code of Ethics guide its employees and management, including senior executives and Board members, in their activities with all its stakeholders.
Five principles underlie the Code of Ethics and its values: 1. The Port Company and its employees act in accordance with the letter and spirit of the law; 2. The Port Company conducts its business with fairness and integrity; 3. Port Company employees treat each other with respect; 4. Port Company employees act in accordance with and in order to promote the Company’s interests and refrain from any conflict of interest; 5. Port Company employees protect the Company’s assets and reputation.
Company management is responsible and committed to act in accordance with the Code of Ethics and takes all measures required toward implementing it and encouraging the ethical conduct of all employees and managers.
The Company’s Code of Ethics is featured on our website and is accessible to all our employees and managers. It is posted throughout the Port, in meeting and conference rooms, at the Company’s headquarter offices and in other operational areas.
Ethics Officer
As part of the efforts to integrate ethics within the Port Company, the Company appointed an Ethics Officer reporting directly to the Port CEO. The Ethics Officer is responsible for SOX regulations compliance and risk management at the Port. The Ethics Officer works along with all levels of Port management to integrate ethics, specifically the Code of Ethics, among employees and managers. The Officer also serves as a point of contact for reporting ethic code violations.
Port Ethics Committee
The Port Company’s Ethics Committee consists of the Company’s Risk Manager (and Ethics Officer), VP of Corporate Communications, Shift Schedule Supervisor (senior foreman), Visitors Center Manager and her deputy, Mechanical equipment operators, tugboat mechanic, pilot boat sailor, garage workers, electrical works supervisor, Deputy Security Officer, Events and Cultural Coordinator, executive secretary.
The committee convenes on a quarterly basis to discuss ethical dilemmas raised from the field as well as general ethical matters. In 2019, the Port Ethics Committee approved the updated Company Code of Ethics.
Members of the Ethics Committee serve as ethics trustees in the various departments. As part of their ethics training, employees with ethical inquiries are encouraged to submit them to the ethics trustees or the Port Ethics Officer.
68 Ethics Training and Resources
The Company Ethics Officer works together with the Port Training Department to integrate ethical issues in the annual training program. Ethics training is a part of all new employees’ orientation program as well as a part of dedicated courses and workshops during focused training days, management courses and safety days in the operational departments. Additional workshops on Company values and ethics are planned for management level employees as well as presentations of informative videos portraying ethical behavior issues in the workplace.
The courses serve to acquaint employees with the Code of Ethics and include discussions of ethical dilemmas relevant to Port operations, administrative workers, workshops and supervisors in operational departments. All Procurement Department employees participated in an in-depth ethical workshop.
Litigations during the reporting period
In March 2018, the Be’er Sheva District Court cleared the former Port Company CEO and the former Workers’ Union Chairman of all allegations against them. The State Attorney’s Office appealed the Court’s decision regarding the former Workers’ Union Chairman - and in December 2019, the Supreme Court accepted the appeal and convicted the former Union Chairman on two counts of fraud and breach of trust.
69 About This Report
This report, relating to the years 2018-2019, is the fourth Corporate Social Responsibility report published by the Ashdod Port Company. It reflects our management’s commitment to advancing the issues of social and environmental responsibility in the Company.
This report was prepared in accordance with the Global Reporting Initiative (GRI), pursuant to the SRS (Sustainability Reporting Standards).
The report was submitted for the GRI Materiality Disclosures Service without an external verification process. Its goal is to present the Company activities in various fields addressed therein in a reliable and comprehensive manner to the Company’s stakeholders, primarily Company employees, management, customers and others.
The information presented in this report was compiled through interviews with the various stakeholders – suppliers, customers, Company employees and management - and through an analysis of other Company reports and documents. Pursuant to GRI standards, material aspects were defined through consultations with stakeholders.
The report was written with the assistance of Good Vision – a Corporate Responsibility Consulting Firm, a member of the Fahn Kanne & Co. Grant Thornton Group, and a GRI Organizational Stakeholder.
The Port Company will continue to develop its corporate responsibility policy, to conduct ongoing dialogue with its stakeholders and to work with our partners to become a sustainable port.
We wish to thank all stakeholders with whom we held interviews and who contributed to the completion of this report.
For questions or comments concerning this report and its contents, please contact the following:
Igal Ben Zikri, VP Corporate Communications [email protected]
Matan Rosen, Environmental Quality Coordinator [email protected]
Ivri Verbin, CEO, Good Vision – Corporate Responsibility Consulting [email protected]
70 GRI Content Index
“For the GRI Content Index Service, GRI Services reviewed that the GRI content index is clearly presented and the references for all disclosures included align with the appropriate sections in the body of the report.”
GRI Standard Disclosure Page Number/ Omission Comment General Disclosures 102-1 Name of the organization 4 102-2 Activities, brands, products, and services 6-7 102-3 Location of Headquarters 8 102-4 Location of Operations 8 102-5 Ownership and legal form 4 102-6 Markets served 6 102-7 Scale of the organization 6, 7, 22-24, 28 102-8 Information on employees and other workers 28 102-9 Supply chain 42 102-10 Significant changes to the organization and None its supply chain 102-11 Precautionary Principle or approach 45, 52, 69 GRI 102: General 102-12 External initiatives 9 Disclosures 2016 102-13 Membership of associations 9 102-14 Statement from senior decision-maker 3 102-16 Values, principles, standards, and norms of 16, 69 behavior 102-17 Mechanisms for advice and concerns about 68, 70 ethics 102-18 Governance structure 67 102-22 Composition of the highest governance 67 body and its committees 102-26 Role of highest governance body in setting 67 purpose, values and strategy 102-40 List of stakeholder groups 17 102-41 Collective bargaining agreements 31
71 102-42 Identifying and selecting stakeholders 17 102-43 Approach to stakeholder engagement 17 102-44 Key topics and Concerns raised 17 102-45 Entities included in the consolidated 72 financial statements 102-46 Defining report content and topic 13 Boundaries 102-47 List of material topics 15, 16 102-48 Restatements of information No restatements GRI 102: General No change from 102-49 Changes in reporting Disclosures 2016 last report 102-50 Reporting period 72 102-51 Date of most recent report 72 102-52 Reporting cycle Biennial 102-53 Contact point for questions regarding the 72 report 102-54 Claims of reporting in accordance with the 72 GRI Standards 102-55 GRI content index 73-79 102-56 External assurance 72
GRI Standard Disclosure Page Number/ Omission Comment Material Topics Economic Performance 103-1 Explanation of the material topic and its 6 GRI 103: Boundaries Management 103-2 The management approach and its 6 Approach 2016 components 103-3 Evaluation of the management approach 6 201-1 Direct economic value generated and 7 distributed GRI 201: 201-3 Defined benefit plan obligations and other Economic 7, 33 retirement plans Performance 2016 201-4 Financial assistance received from 7 government Procurement Practices 103-1 Explanation of the material topic and its 42 GRI 103: Boundaries Management 103-2 The management approach and its 42 Approach 2016 components 103-3 Evaluation of the management approach 42
72 GRI 204: Procurement 204-1 Proportion of spending on local suppliers 42 Practices 2016 Energy 103-1 Explanation of the material topic and its 58 GRI 103: Boundaries Management 103-2 The management approach and its 58 Approach 2016 components 103-3 Evaluation of the management approach 58 302-1 Energy consumption within the organization 59 GRI 302: Energy 302-2 Energy consumption outside of the None identified 2016 organization 302-3 Energy intensity 60 Emissions 103-1 Explanation of the material topic and its 60 GRI 103: Boundaries Management 103-2 The management approach and its 60 Approach 2016 components 103-3 Evaluation of the management approach 60 305-1 Direct (Scope 1) GHG emissions 60 GRI 305: 305-2 Energy indirect (Scope 2) GHG emissions 60 Emissions 2016 305-4 GHG emissions intensity 60 Effluents and Waste 103-1 Explanation of the material topic and its 61 GRI 103: Boundaries Management 103-2 The management approach and its 61 Approach 2016 components 103-3 Evaluation of the management approach 61 306-1 Water discharge by quality and destination 60 GRI 306: Effluents 306-2 Waste by type and disposal method 61 And Waste 2016 306-3 Significant spills None occurred Employment 103-1 Explanation of the material topic and its 28 GRI 103: Boundaries Management 103-2 The management approach and its 28 Approach 2016 components 103-3 Evaluation of the management approach 28 GRI 401: 401-1 New employee hires and employee turnover 29 Employment 2016 401-3 Parental leave 34
73 Occupational Health and Safety 103-1 Explanation of the material topic and its 45 GRI 103: Boundaries Management 103-2 The management approach and its 45 Approach 2016 components 103-3 Evaluation of the management approach 45 403-1 Occupational health and safety management 50 system 403-4 Worker participation, consultation, and 47,48, 49, 50 communication on occupational health and safety 403-5 Worker training on occupational health and GRI 403: 48, 49 Occupational safety Health and Safety 403-6 Promotion of worker health 47 2018 403-8 Workers covered by an occupational health All company and safety management system employees 403-9 Work-related injuries 46 Port direct 403-10 Work-related ill health 38, 46 employees only. Training and Education 103-1 Explanation of the material topic and its 40 GRI 103: Boundaries Management 103-2 The management approach and its 40 Approach 2016 components 103-3 Evaluation of the management approach 40 404-1 Average hours of training per year per 40 employee GRI 404: Training 404-2 Programs for upgrading employee skills and and Education 40, 41 transition assistance programs 2016 404-3 Percentage of employees receiving regular 41 performance and career development reviews Diversity And Equal Opportunity 103-1 Explanation of the material topic and its 35 GRI 103: Boundaries Management 103-2 The management approach and its 35 Approach 2016 components 103-3 Evaluation of the management approach 35 GRI 405: Diversity 405-1 Diversity of governance bodies and and Equal 28, 30, 67 employees Opportunity 2016 Freedom of Association and Collective Bargaining 103-1 Explanation of the material topic and its 31 GRI 103: Boundaries Management 103-2 The management approach and its 31 Approach 2016 components 103-3 Evaluation of the management approach 31
74 GRI 407: Freedom 407-1 Operations and suppliers in which the of Association right to freedom of association and collective 31 and Collective bargaining may be at risk Bargaining 2016 Local Communities 103-1 Explanation of the material topic and its 63 GRI 103: Boundaries Management 103-2 The management approach and its 63 Approach 2016 components 103-3 Evaluation of the management approach 63 GRI 413: Local 413-1 Operations with local community Communities engagement, impact assessments, and 63 2016 development programs Supplier Social Assessment 103-1 Explanation of the material topic and its 42 GRI 103: Boundaries Management 103-2 The management approach and its 42 Approach 2016 components 103-3 Evaluation of the management approach 42 GRI 414: 414-2 Negative social impacts in the supply chain Supplier Social 43 and actions taken Assessment 2016 Our Clients 103-1 Explanation of the material topic and its 19 GRI 103: Boundaries Management 103-2 The management approach and its 19 Approach 2016 components 103-3 Evaluation of the management approach 20
75 76