Making a tough decisionMaking a tough decision
In 2013 APM Terminals for the first time decided to relinquish an inland facility due to poor safety performance, despite significant efforts which had been made to bring the facility to an acceptable safety standard. The facility in Vietnam has 280 employees and is providing services such as container repair, maintenance and warehousing. They encountered two fatal incidents in less than a year, and the investigations revealed that in spite of significant investments in safety training, new equipment and management support, they still failed to meet the APM Terminals’ minimum safety standard.
After careful consideration, APM Terminals’ management decided to sell the facility; a key factor in this decision was the realisation that the efforts required to bring the facility into line with APM Terminals’ safety principles and standards would be too great and that effort was better spent on other facilities and operations. Even though the local team had made good progress, APM Terminals was not convinced that the business could operate efficiently and without significant risk of experiencing further serious injuries or fatalities. It was a tough decision.