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THE LATEST UPDATES AND STORIES FROM PENTAGON OFFICES AND STAFF AROUND THE GLOBE

JULY 2018 I ISSUE 2 I GLOBAL NEWSLETTER

PLUS FACES OF PENTAGON, PROJECT UPDATES, IT, QHSE AND PENTAGON CHARTERING NEWS

INTERNATIONAL OPERATIONS

THRIVING

“Welcome to the July edition of our global newsletter, PentaTalk. Our focus continues to work closely with

our colleagues, clients and supply chain, to find ways to better support the industry in this changing

environment, whilst maintaining current service levels.”

2 I PENTAGON AUSTRALIA 3 I PENTAGON AMSTERDAM

4 I PENTAGON MIDDLE EAST 5 I PENTAGON KAZAKHSTAN

6 I PENTAGON SOUTH KOREA 7 I PENTAGON UNITED KINGDOM

9 I PENTAGON SINGAPORE 10 I PENTAGON INDONESIA

10 I PENTAGON SOUTH AFRICA 11 I PENTAGON HOUSTON

13 I PENTAGON GLOBAL QHSE 14 I PENTAGON GLOBAL IT

ASHLEY TAYLOR GROUP CEO

QHSE

Hello Everyone,

Welcome to the July edition of our global newsletter, PentaTalk.

Well, I am not sure where the first 6 months of the year went but I think we can all agree the year is racing through at lightning speed.

The good news is, following an extended period of unprecedented low levels of investment within the energy and resource industry, sentiment has improved. The general industry consensus is the market has now bottomed and is on the way to recovery.

It has been necessary for the global energy and resource industry to focus on streamlining structures, operating costs and business processes to succeed in this new environment. Our focus continues to work closely with our colleagues, clients and supply chain, to find ways to better support the industry in this changing environment, whilst maintaining current service levels.

We have already seen a steady increase in the Brent Crude oil price and the industry has started to show early signs of increased activity, in what remains a very competitive operating environment. Whilst it too early to determine whether this is a long-term improvement, the Group has recently started to see higher activity levels which is consistent with other stakeholders supporting the industry.

This was evident when I attended the Offshore Technology Conference in Houston at the beginning of May, where we once again exhibited. We had many existing and prospective customers visit our booth during the conference and whilst not all had seen an upturn, it is fair to say that everyone shared the same optimism.

On a positive note, our Korea team has further expanded their operations, by opening an office and warehouse facility in the Port Logistics Centre at Busan Port. This allows us to localise our services even more, with a dedicated team of experts on standby, delivering the unrivalled service Pentagon has been known for worldwide, for over 40 years.

As part of our commitment to continuous improvement and leading-edge technology, a significant Group investment was made to develop our global IT infrastructure. The United Kingdom was the first site to adopt our new global standardised system. The UAE and USA soon followed and now the Singapore team are all set for ‘Go Live’ in July. Throughout the remainder of the year, we will continue to rollout our new IT platform across all 66 offices located in 34 countries.

I hope you enjoy reading our PentaTalk newsletter and welcome any comments you may have.

A WORD FROM ASHLEY 01

PENTAGON AMSTERDAM

STRONG LOCATION STRONG GROWTH

FACES OF PENTAGON MICHEL COENRAADTS

PENTAGON MIDDLE EAST

ERBIL, IRAQ

PENTAGON DUBAI OCTG BUSINESS

WELL DONE JEMMA!

FACES OF PENTAGON TOM THOMAS

PENTAGON GLOBAL

PENTAGON PROJECT UPDATES

PENTAGON SOUTH KOREA

VISIT FROM ASHLEY

FACES OF PENTAGON SUE BAEK

PENTAGON UNITED KINGDOM

25,000 CBM SHIPMENT

FACES OF PENTAGON HELGA OLD

07

PENTAGON AUSTRALIA

ENSCO 107 SUPPLY BASE MANAGEMENT CONTRACT

PENTAGON CHARTERING

FACES OF PENTAGON ALANNA SHERRATT

PENTAGON KAZAKHSTAN LOCATED IN THE HEART OF CENTRAL ASIA

FACES OF PENTAGON NATASHA SALIMOVA

05

02

03

A WORD from ASHLEY

PENTAGON FREIGHT SERVICES GROUP CEO

Ashley Taylor, Group CEO

06


READY FOR EXPANSION

TAKING A HIT FOR THE TEAM

FACES OF PENTAGON CHRIS KENT

PENTAGON SINGAPORE

APPOINTED AS VESSEL AGENT

FACES OF PENTAGON MARCO HANDGRAAF

PENTAGON GLOBAL

QHSE UPDATE

FACES OF PENTAGON CHRIS PARK

1314

PENTAGON GLOBAL

IT UPDATE

FACES OF PENTAGON EDWINA SOLOMON

PENTAGON HOUSTON

NEW USA STEEL AND ALUMINUM TARIFFS 11

PENTAGON INDONESIA

‘CAN DO’ ATTITUDE AT EOFY REVIEW

PENTAGON SOUTH AFRICA

ROOM TO MOVE

FACES OF PENTAGON KEVIN MELNICK

PENTAGON HOUSTON

OFFSHORE TECHNOLOGY CONFERENCE 2018

FACES OF PENTAGON ERIC SALAS

10

12

09

08

04

1

AWARDEDDAMPIER CONTRACTPENTAGON AUSTRALIA SECURE ENSCO 107 SUPPLY BASE MANAGEMENT CONTRACTPentagon Karratha is pleased to recently be awarded the shorebase management contract for Ensco, for their Dorado-1 exploration well of Dampier, Western Australia.

Joint venture partners Quadrant Energy (80% interest) and Carnarvon Petroleum (20% stake) have contracted the E107

Jackup rig which arrived on location on the 16th of May. The primary objective of the Dorado-1 well is to assess the gas and liquids potential in the Caley member. The Dorado well is less than 20 kilometres from the successful Roc-1 and Roc-2 wells.

The Roc-2 well also tested the deliverability of the reservoir through a well test that achieved around 55 million scf/day of gas and an associated condensate rate of 3,000 barrels per day.

The JV is keen to find additional gas/condensate resources that could be combined with a potential development of the Roc and Phoenix South discoveries.

Dorado lies within permit WA-437-P and lies to the south of Roc and Phoenix South.

A significant Dorado discovery could be developed as the tie-in point for the Roc and Phoenix South fields. The gas could be used to supply Western Australia’s domestic needs and/or for LNG production.

Pentagon Freight Services have been a long-term supporter and service provider for Ensco over many years. Most recently, managing similar shorebase services for the E107 in 2017 when the rig was utilised for a plug and abandon programme for the Thevenard Island (TVI) retirement project.

PENTAGON AUSTRALIA

FACES of PENTAGON

ALANNA SHERRATT1. Position at Pentagon:

Import/Export Freight Coordinator.

2. What is the most enjoyable part of your job? Getting to work with a really awesome team and being in a great working environment every day.

3. What’s the most irritating industry buzzword? Urgent.

4. If you could give your 18-year old self one piece of advice what would it be? Listen to your parents… they know.

5. Describe yourself in four words or less: Happy, sarcastic and kind.

6. What was your worst ever job? The local supermarket.

7. Dead or alive, who would you most like to meet? David Benioff.

8. What one question would you ask this person? Who kills Cersei Lannister and how?

9. If you weren’t doing this job, what would you be? Working with animals in some way.

10. What made you laugh recently? Finding out I had been chosen to fill in this questionnaire.

11. What was the last concert you went to? Ed Sheeran.

PENTAGON CHARTERING Some of the Pentagon Chartering highlights in the last quarter:

1 The MV Federal Mackinac travelling from Quebec to Kristiansand, Norway, carrying over 7,000 tons of nickel matte for Glencore.

2 The MV BBC London carrying 1,643 tons of land rigs from Skikda, Algeria to Kaliningrad, Russia for KCA Deutag.

3 The MV BBC Vela travelling from Singapore to Brazil with a volume of over 4,700 cbm of steel plates and rig equipment for Sembcorp.

Quebec > Kristiansand Skikda, Algeria > Kaliningrad, Russia Singapore > Brazil

7,000 tons 1,643 tons 4,700 cbm

2

MICHEL COENRAADTS1. Position at Pentagon:

Sea Freight Accounts Manager.

2. What is the most enjoyable part of

your job?

Handling cargo of all dimensions from

LCL to BB.

3. What’s the most irritating industry

buzzword?

None bother me, I focus on the task

at hand.

4. If you could give your 18-year old self

one piece of advice what would it be?

Treat others as you would like to be

treated.

5. Describe yourself in four words or less:

Dedicated perfectionist.

6. What was your worst ever job?

I have never had one.

7. Dead or alive, who would you most

like to meet?

Michael Schumacher.

8. What one question would you ask

this person?

Can you take me around the circuit?

9. If you weren’t doing this job, what

would you be?

Banker.

10. What made you laugh recently?

My Daughter makes me smile

every day.

11. What was the last concert you

went to?

U2.

FACES of PENTAGON

STRONG LOCATIONSTRONG GROWTHPentagon Amsterdam has seen significant growth in shipment numbers over the past three years through our warehouse at Schiphol Airport. Our geographically strong location in the centre of Europe and close to Rotterdam and Antwerp Ports, positions us to exceed your freight forwarding expectations and needs.

Our location provides customers with many freight forwarding solutions, whether that be by air, sea or road. The recent market conditions have seen a large number of customers become extremely price driven, and our business model has changed accordingly. Following our move to Schiphol Airport in 2015, we have had the pleasure of working with Bassdrill, Exxon and Subsea 7. Whilst we

consolidate shipments from many European suppliers, we also hold inventory of drill bits for the African, Turkish, Caspian, Kazakhstan and Algerian geo markets of Smith Bits. Furthermore, we provide regular AOG shipments for CHC Helicopters, proving our clientele is rapidly expanding.

Our Schiphol Airport facility enables us to electronically clear goods and shipments for importation or exportation, largely due to our in-house Customs team. Our Insight system enables packing and distribution lists to be generated from the Warehouse Management System, allowing us to provide on-time and frequent updates to our customers with on-hand reporting. Many of our customers have access to their own web portal, which provides shipment tracking. Line item checking, repacking, crating and labelling are a few of the value-added services at our facility.

We look forward to better servicing your freight forwarding requirements and exceeding all expectations in the future.

PENTAGON AMSTERDAM

The MV Eemslift Nelli travelling from Aberdeen to Haifa, Israel, carrying 945 tons of offshore equipment for Expro.

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STRONG LOCATIONSTRONG GROWTH

PENTAGON MIDDLE EAST

WELL DONE, JEMMA!Jemma Shand, Daughter of Pentagon’s Regional Director of the Middle East, Gordon Shand, was selected to participate for the United Arab Emirates Open Squad in the European Netball Championship in Gibraltar from 10-13 May.

The team trained very hard over the months leading up to the Championships and faced competition from the Isle of Man, Israel, Gibraltar and the Republic of Ireland, who took out the Championship.

Pentagon were happy to sponsor Jemma for the Championships and are proud of her and the teams’ success.

PENTAGON DUBAI OCTG BUSINESSFollowing a few quiet years with regard to pipe movements in the Middle East, the Jebel Ali Yard have noticed a significant increase in total tonnage handled. Pentagon Dubai were extremely busy with a large quantity of container movements scheduled throughout May and June, destined for the United Arab Emirates and GCC countries.

Over 8,000 metric tons of OCTG is expected to arrive in the Yard from Japan for storage and distribution in the coming weeks. We have seen significant competition in the market, and Pentagon Dubai will always follow international best practice when dealing with pipe movements.

A recent audit commented on the standards employed by the Yard, in particular the pipe handling, stacking procedures and impressive housekeeping.

ERBIL, IRAQDuring April, Pentagon commenced with Senior Warehouse Trainers for a client in Erbil, Kurdistan, Iraq.

It is their role to fully set-up the warehouse in a meaningful way, develop the process and procedures, and train local employees. Particular focus is placed on Health and Safety, with full compliance being targeted.

Toolbox talks and robust audits will ensure development, and enforce learning. This focus will lead to ensure inventory management is world class.

TOM THOMAS1. Position at Pentagon:

Base Manager Abu Dhabi.


your job?

Meeting new people, learning, and

getting positive feedback from our

clients.


buzzword?

Corporate Synergy.



Never let success get to your head

and failure to your heart.


Versatile, helpful and systematic.


I have yet to have one.


like to meet?

Mahatma Gandhi.


this person?

Do you believe the concept of

non-violence is still practicable given

the world we now live in?


would you be?

An Entrepreneur in the Rubber

industry.


My Wife and her jokes.


went to?

AR Rehman’s Concert at Dubai Parks

and Resorts.

FACES of PENTAGON

Particular focus is placed on Health and Safety.

Yard Supervisors give an overview of

daily jobs to their crew members.

Chrome pipe is handled with extreme

care. The crew engaged in stuffing

chrome pipe in 45ft standard containers.

4

PENTAGON KAZAKHSTAN FACES of PENTAGON

NATASHA SALIMOVA 1. Position at Pentagon:

General Manager.


your job?

Team work.


buzzword?

Win-win.



Be adventurous, take the risk, and

follow your heart.


Determined and always hungry.


I am lucky, I have not had one.


like to meet?

Lenin.


this person?

What was the point?


would you be?

Teaching young kids.


Listening to my daughter’s story about

her day at school.


went to?

Emin (Azeri singer) in Almaty.

Kazakhstan is located in the heart of Central Asia and its territory occupies over 2.7 million square kilometres. Kazakhstan borders China, Kyrgyzstan, Turkmenistan, Uzbekistan, Russia and the Caspian Sea, and boasts a population of 18 million. A fun fact is Kazakhstan will reach -20 degrees Celsius in winter, but will exceed 40 degrees Celsius in summer, making its weather extremely volatile.

Pentagon commenced operations in Kazakhstan in 2003, with one office in Aktau and 10 staff. Aktau remains our administrative headquarters, however, the Group have expanded operations to Atyrau, Almaty, Astana and Uralsk, with over 60 nationals employed.We employ our own Customs Brokers, and over the last five years, our transport fleet has gradually expanded, managed by our experienced team of logistics coordinators, technical staff and drivers.

Project shipments and bulk cargoes can be directly shipped to Kazak Caspian seaports throughout summer from various geographic locations. For example, we can receive direct cargoes from Aberdeen. Access is via the river and canal system entering on the Baltic and Black, and exiting from Russia to the north. On this route, the type of vessels used are either river ships or tug and barge operations. The river and canal system freeze each winter, as does the northern third of the Caspian sea.

Container and break-bulk shipments can arrive at North European or Baltic ports year round, with on-carriage by road and rail to Kazakh destinations. Cargo from China can be transported from north, west and east Europe, which forms part of our extensive service offerings.

LOCATED IN THE HEART OF CENTRAL ASIA

Cargo from China can be transported from north, west and east Europe, which forms part of our service offerings.

5

FOR MORE INFORMATION ON KAZAKHSTAN, A GOOD READ IS

“APPLES ARE FROM KAZAKHSTAN” BY CHRISTOPHER ROBBINS

PENTAGON GLOBAL

PROJECT UPDATE

Since writing my earlier briefing, Pentagon’s Project Team has had a very busy 2018.

We have had major tenders in for work in Europe, USA, Middle East, North Africa, East Africa, Azerbaijan, Kazakhstan and Russia.

Global Requests for Information have been covered together with subsequent Requests for Quotation for International Oil Companies.

These enquiries and subsequent awards are a direct result of our marketing efforts in the past 18 months and of course, our solid reputation in the market we specialise in.

During this hectic bid period the support from the Group was excellent and the

work and support of the QHSE Team was outstanding. It has been a pleasure to cooperate with the Pentagon Team. Much of what we can achieve is led by the Group’s reputation amongst our clientele making the opportunity to build upon the work we undertake daily for the Upstream Sectors in to the Downstream.

In April / May, 2018 we started our first major EPC project. This was to Saudi Arabia with fast track sea cargoes and an AN124 charter from Houston to Jeddah.

An award to us by a major EPC is a major milestone after an extensive bid process with the client and Pentagon offices participating in the Middle East and USA. Other work awarded to us included USA inbound major consignments. Our Houston Project Group led by Michael Ruediger with support from Brian Sweenie coped well with the tasks applied to them and were well supported by Martin Quinn and his Packing Team working solidly both on site at the main vendors premises and our own to achieve the deadlines.

from CHRIS KENT

FACES of PENTAGON

SUE BAEK 1. Position at Pentagon:

Import Manager.


your job?

Completing deliveries without any

issues.


buzzword?

Port congestion.



Be ambitious.


Adaptable, detailed and responsible.


I have yet to have one. All have

provided me with lessons and

meaningful memories.


like to meet?

Warren Buffett.


this person?

Can I have lunch with you?


would you be?

Barista.


Playing board games with my Niece

and Nephew.


went to?

Lee Moon Se Concert in 2014.

The Pentagon Korea team and Group CEO, Ashley Taylor, who visited South Korea in February.

VISIT FROM ASHLEY

PENTAGON SOUTH KOREA

During this hectic bid period the support from the Group was excellent and the work and support of the QHSE Team was outstanding.

6

25,000 CBM SHIPMENT25,000 CBM MOORING SYSTEM FROM MALAYSIA TO NIGERIAPentagon’s Project Team was awarded the shipment of a complete single point mooring system from Pasir Gudang, Malaysia to Lagos, Nigeria for the Dangote Oil Refinery Project.

Load out for part three of a series of four shipments commenced on 28 February, with sailing on-time on 6 March. The 3,200 tonne shipment consisted of five anchor leg mooring buoys, 2 PLEMs, anchor piles and spares. The total volume of the shipment was 25,000 cbm.

This is the latest of a series of large charter shipments handled successfully by our Global Project Team. The execution was on-time, without incident, and within budget, which was the result of close cooperation with Pentagon’s teams in the United Kingdom, Houston and Singapore.


FACES of PENTAGON

HELGA OLD1. Position at Pentagon:

Key Accounts Manager.

2. What is the most enjoyable part of your job? The pleasure of dealing with long term clients who are realistic about the challenges we face.

3. What’s the most irritating industry buzzword? Proactive.

4. If you could give your 18-year old self one piece of advice what would it be? Be confident and believe in your abilities.

5. Describe yourself in four words or less: Conscientious, caring and loud.

6. What was your worst ever job? I have been at Pentagon that long I can’t remember!

7. Dead or alive, who would you most like to meet? Richard III.

8. What one question would you ask this person? Were you really the man that history has led us to believe you were?

9. If you weren’t doing this job, what would you be? Unemployed!

10. What made you laugh recently? A response to Question 7 from a colleague, which I shan’t repeat.

11. What was the last concert you went to? The amazing, Josh Groban.

The MV Karmsund travelling from Hollen, Norway to Aagotnes, Norway, carrying 50 tons of crane parts for NOV.

7

“ The execution was on-time, without incident and within budget.”

TAKING A HIT FOR THE TEAM Our very own “Highland Hellcat”, Isla van Duivenbode, took part in an Ultra White Collar Boxing charity event held on 17 March in support of Cancer Research in the United Kingdom.

“ I have never been one for combat sports of any kind but I felt I needed a challenge and to step completely out of my comfort zone.” Isla van Duivenbode

We are pleased to report that Isla is very much alive and kicking after her match and was able to land some solid punches on her opponent… all in the name of charity!

Isla managed to raise £865 in the process which is a fantastic achievement for a very worthwhile cause. Well done, Isla!

UNITED KINGDOM TEAM READY FOR EXPANSION The UK Marine Team based in our Orpington office has been enhanced this year with the arrival of three new members.

Simon Scarff, bringing over 18 years of ship spares logistics experience, has joined as Marine Business Development Manager. Serafima Saakova and Ronaldo Johnson have also joined the operation.

Our new employees will further strengthen an already highly regarded and dedicated team managed by Wayne Dawtry and comprising of Gary Provins, Rachel Smith, Jenny Hakin, Emma Hills and Pat O’Sullivan.

The foundations are now in place to further grow the operation, whilst ensuring we maintain the highest levels of service to our existing marine client base, which is presently mainly UK based, however, there are significant opportunities to expand our marine logistics product globally across the Group.

“ Our new employees will further strengthen an already highly regarded and dedicated team”

FACES of PENTAGON

Back Row left to right: Pat O’Sullivan, Gary Provins, Wayne Dawtry and Simon Scarff.Front Row left to right: Ronaldo Johnson, Jenny Hakin and Rachel Smith.

CHRIS KENT1. Position at Pentagon:

Global Project Director.

2. What is the most enjoyable part of your job? Targeting and developing new business.

3. What’s the most irritating industry buzzword? Price is everything.

4. If you could give your 18-year old self one piece of advice what would it be? Slow Down.

5. Describe yourself in four words or less: Old but experienced.

6. What was your worst ever job? I have been lucky in my career.

7. Dead or alive, who would you most like to meet? The Queen.

8. What one question would you ask this person? Do you come here often?

9. If you weren’t doing this job, what would you be? I have been in the same career for over 40 years so looking ahead, retired.

10. What made you laugh recently? West Ham defeating Tottenham in the 2017/18 Premier League.

11. What was the last concert you went to? Adele.

8

£865FOR CANCER RESEARCH

OUR ‘HIGHLAND HELLCAT’ RAISED

FACES of PENTAGON APPOINTED AS

VESSEL AGENT

PENTAGON SINGAPORE

BISCAY SENTINAL (ERRV) PORT CALL OPERATIONS IN SINGAPOREPentagon Singapore was appointed as Vessel Agent by Sentinel Marine Pte Ltd, to assist with bringing their newly built third ERR Vessel, Biscay Sentinel into Singapore for a 24 hour port call.

As agent, Pentagon ensured all activities were well planned and organized prior to the vessel’s arrival, and attended to all of the Owner and Captain’s eleventh-hour requisitions. All requirements and services were promptly delivered within the time frame, and in accordance with the vessel port call schedule.

The vessel completed all port call activities and set sail within 18 hours.

Immigration – Relevant vessel and crew information was obtained from the Captain three days prior to arrival at Singapore, with pre-processed arrival and departure clearances. The vessel was granted ‘advance in principle’, i.e. no physical inward clearance on-board, which enhanced overall port call activities.

MPA/Pilotage – Pentagon ensured that all arrival and departure Pilotage were organized in advance to ensure the vessel was picked up upon arrival at the Arrival Boarding Ground for immediate passage to Anchorage. All port call and work activities were conducted in accordance with legislative requirements.

Procurement and Material Handling – Many urgent purchases for spares and work were processed with most of these requirements fulfilled within four hours of requisition. This further emphasizes Pentagon’s experience and relationships with many of our suppliers.

Cargoes Boat – Ship spares and food provision stores ordered by the owner were promptly organized by Pentagon, who ensured that appropriated cargo boats were booked. We followed up with suppliers to ensure delivery to the terminal was conceded in a timely manner, and loaded the cargo boat to load the vessel on arrival at Anchorage.

Crew Boat (Launch) – Crew boats were organized by Pentagon for the owner, representatives, visitors, technicians and surveyors without delay.

Bunker Surveyor – There was a requirement for the Biscay Sentinel to take 500 tons of MGO. Pentagon organized for a Surveyor to attend the supply and coordinated with the bunker supplier to ensure that correct hose connections were applied for a smooth delivery. The bunker was supplied within 7 hours as anticipated.

SUMMARY OF SERVICES

Logistics and Operations Support;

Material Handling;

Bunker/MGO Survey;

Fresh Water Supply;

Cargoes Boats and Launch; and

Procurement and Purchasing.

MARCO HANDGRAAF1. Position at Pentagon:

Business Development Manager.


your job?

Being recognized by our customers as

a trusted advisor.


buzzword?

Blockchain for logistics.



Stay at school longer and follow your

dreams.


Professional, persistent and honest.


Newspaper-boy at the age of 15.


like to meet?

Friends and family who passed away

long ago.


this person?

No question but a long conversation

catching up with each other.


would you be?

Earning millions somewhere.


Catching up with a friend at a

local pub.


went to?

U2’s Joshua Tree Tour at

Croke Park Dublin.

We write to extend our sincere appreciation and thanks, especially to Mr Thomas Thurein during the recent port call of BISCAY SENTINEL.

Thurein demonstrated the same high service level that we have come to expect from Pentagon. His attention to detail and ‘can do’ spirit were significant contributors in ensuring that the port call was kept smooth and as short as possible.

BISCAY SENTINEL departed Singapore the same day as planned, with all her stores and provisions delivered, including last-minute orders by the vessel.

We look forward to continue working with Thurein and his team when our vessels call into Singapore.

Best Regards, Mark Grosse, Managing Director Sentinel Marine

Positive feedback:

9

‘CAN DO’ ATTITUDE AT EOFY REVIEW

Delegates from Pentagon Indonesia offices in Jakarta, Batam, Surabaya and Balikpapan gathered in Jakarta during March where review meetings took place for the coming financial year. Our discussions were centered on sales, the upcoming ISO surveillance audit, budget reviews and aspirations for further Indonesian development.

Hedi Prayitno (Country Manager), opened the meeting and was well supported by Directors, Stefanus Surlimno and Glen Plant.

Our Finance and Administration Manager, Agus Sohlin, provided an extensive agenda and review of the 2017/18 financial year,

established the framework for an interactive meeting covering reports from each of our four key hubs in Indonesia, as well as consultation with Singapore Sales Manager, Kamaruzman Ahmad.

The close cooperation with all of Pentagon’s South East Asian offices in the areas of Sales and Operations further exemplified the ‘can do’ attitude of our Pentagon Indonesian Management and staff.

Many delegates travelled from our many key hubs in South East Asia, making the weekend enjoyable and highly beneficial for Pentagon Indonesia.

PENTAGON INDONESIAGlen Plant with the Pentagon Indonesia Team

ROOM TO MOVEPENTAGON SOUTH AFRICA

Pentagon South Africa’s Head Office in Cape Town has recently moved from Airport Industrial to Wessex Street in Paarden Eiland, Cape Town. This will provide greater access to Cape Town Port and many of our local customers and suppliers. The new facility is far larger than our previous office and will provide space for further expansion.

Our new facility provides great views of Table Mountain and the container depot!

FACES of PENTAGON

KEVIN MELNICK 1. Position at Pentagon:

Country Manager South Africa.


your job?

Solving diverse daily logistics

conundrums.


buzzword?

AGW (All Going Wrong).



Be a passenger on ships, it is far less

stressful than being a forwarder.


Precise, tenacious and loyal.


Delivering newspapers door to door.


like to meet?

Freddie Mercury.


this person?

Can you do the Fandango?


would you be?

DJ/Radio/TV Sports Presenter.


Me still thinking I could do any of my

Question 9 answers.


went to?

Rammstein. That should get a few

people thinking!

Congratulations to Kate Schuneman (now Fowkes) of our Aberdeen office who recently got married to her husband, Matt!

10

TRUMP TARIFFS IMPOSEDNEW USA STEEL AND ALUMINUM TARIFFSIn February 2018, the United States Commerce Department publicly released Section 232 reports on imported steel and aluminum. The reports concluded that the quantities and circumstances of steel and aluminum imports threaten to impair the national security as defined by Section 232. The reports found that United States steel imports were nearly four times our exports, and aluminum imports had risen to 90% of total demand for primary aluminum. The Commerce Department recommended that President Trump take action to protect the long-term visibility of our nation’s steel and aluminum industries.

On March 8, President Trump issued two Presidential Proclamations announcing the imposition of special Section 232 duties on certain steel and aluminum products of 25 and 10% respectively. The imposed tariffs duties went into effect for the following products entered for consumption on or after 12:01 a.m. eastern daylight time on March 23, 2018:

STEEL PRODUCTS SUBJECT TO 25% TARIFFAs defined at the Harmonized Tariff Schedule (HTS) 6-digit level:

Iron and non-alloy steel in ingots or other primary forms (HTSUS 7206.10, 7206.90);

Semi-finished products of iron or non-alloy steel (HTSUS 7207);

Flat-rolled products of iron or non-alloy steel (HTSUS 7208 – HTSUS 7212);

Bars and rods of iron or non-alloy steel (HTSUS 7213 – 7215.50);

Angles, shapes and sections of iron or non-alloy steel that are other than those specifically listed in the HTSUS and are other than cold formed or cold finished from flat-rolled products (HTSUS 7216.99);

Wire of iron or non-alloy steel (HTSUS 7217);

Stainless steel in ingots or other primary forms; semi-finished products of stainless steel (HTSUS 7218);

Flat-rolled products of stainless steel (HTSUS 7219 - 7220);

Bars and rods of stainless steel (HTSUS 7221 – 7222);

Wire of stainless steel (HTSUS 7223);

Other alloy steel in ingots or other primary forms; semi-finished products of other alloy steel (HTSUS 7224);

Flat-rolled products of other alloy steel (HTSUS 7225 – 7226);

Bars and rods of other alloy steel (HTSUS 7227 – 7228);

Wire of other alloy steel (HTSUS 7229);

Sheet piling of iron or steel, whether or not drilled, punched or made from assembled elements (HTSUS 7301.10);

Railway or trackway track construction material of iron or steel other than switch blades, crossing frogs, point rods and other crossing pieces (HTSUS 7302.10, 7302.40, 7302.90); and

Tubes, pipes and hollow profiles, seamless, or iron (other than cast iron) or steel.

ALUMINUM PRODUCTS SUBJECT TO 10% TARIFFAs defined at the Harmonized Tariff Schedule (HTS) 6-digit level:

Unwrought aluminum (HTSUS 7601);

Aluminum bars, rods and profiles (HTSUS 7604);

Aluminum wire (HTSUS 7605);

Aluminum plate, sheet, strip and foil (flat rolled products, HTSUS 7606-7607);

Aluminum tubes and pipes and tube and pipe fittings (HTSUS 7608 – 7609); and

Aluminum castings and forgings (HTSUS 7616.99.5160, 7616.99.5170).

Section 232 tariffs are in addition to duties, already imposed, including antidumping and countervailing duties and are applicable to articles from all countries excluding Canada and Mexico.

Other countries deemed to have a “security relationship” with the USA may petition the Secretary of Commerce to remove or modify the restriction on imports of the designated steel and aluminum products from that country.

PENTAGON HOUSTON

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FACES of PENTAGON

ERIC SALAS1. Position at Pentagon:

Export Team Lead.


your job?

Working on and solving new

problems. Every day is truly a new

day.


buzzword?

Urgent. Everything is urgent.



The better days are coming and they

are so much sweeter than you can

imagine right now. It’s worth the wait.


My family is everything.


When I was 13 I sold overpriced candy

door to door. I remember the candy

was $10 dollars a box and I got $0.50

for every box I sold. I worked 4-5

hours a night for $3…


like to meet?

I have met some really great people

and believe that I will meet some even

greater people.


this person?

Do you want a beer?


would you be?

Either a Restaurateur or a Bartender. I

like to see people happy with food and

drinks.


Probably something dumb I said at the

complete wrong time. I love to laugh,

and my favourite person to laugh at

is myself.


went to?

Cody Johnson at the Houston Rodeo.

OFFSHORE TECHNOLOGY CONFERENCE 2018Houston, Texas, USA (3 May 2018). Offshore energy industry experts and leaders from across the world came together at NRG Park in Houston 30 April – 3 May to celebrate the 50th Offshore Technology Conference (OTC).

As it has since 1969, the conference convened professionals to make critical decisions, share ideas, and develop business partnerships to meet global energy demands. In addition, OTC directly benefitted the advancement of the energy sector by supporting the conference’s 13 non-profit sponsoring organizations, and the Houston community.

The 50th OTC focused on subjects such as the current state of the industry, reducing costs and improving overall value,

breakthrough technologies in a low oil price environment, and industry-leading safety practices in addition to recurring topics.

More than 61,300 attendees from more than 100 countries gathered at the annual conference while the exhibition covered more than 585,000 net square feet, including outdoor exhibits. This year’s conference also had more than 2,300 exhibiting companies representing 44 countries. Nearly 300 were new exhibitors, and international companies made up 55 percent of exhibitors.

CEOs and presidents from across the global energy industry came to OTC 2018 to help celebrate its 50th edition, including our own Group CEO, Ashley Taylor (pictured above with employees who represented Pentagon on our booth).

There was a new enthusiasm and positive air noticeable which reflects the uptake in business that Pentagon offices across the globe are experiencing.

Special thanks to Amanda Warner and Leticia Darden for organizing and facilitating another very successful show for Pentagon.

OTC 2019 will take place 6 –9 May at NRG Park.

OTC 2018

TRUMP TARIFFS IMPOSED

PENTAGON HOUSTON

The MV Marsgracht carrying a volume of 692 cbm of thrusters and accessories, sailing from Houston to Las Palmas, Spain.

The MV Moana travelling from Bilbao, Spain to Montorse carrying 3,080 tons of reels and anchor chains for Sofec.

692 cbm 3,080 tons

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PENTAGON GLOBAL

ADVANCING FROM STRENGTH TO STRENGTH IN QHSE As 2018 progresses, Pentagon continues to advance from strength to strength in the critical area of QHSE. The efforts of our Global and Regional QHSE & Compliance teams respectively have seen Pentagon undertake and commence a variety of global, organization-wide projects and initiatives that add genuine value to our people, operations and our valued clients.

One such project is the review, updating and implementation of our processes relating to data privacy and protection. With the imminent implementation of the new European General Data Protection Regulations (GDPR), Pentagon has examined our operations and is finalizing the implementation of measures that will not only ensure our continued compliance with such obligations but will promote a best-in-call approach to the management and protection of data relating to our people, customers and business partners around the world.

Effective communication within our operations and with our customers is critical to our success and as such, Pentagon is currently undertaking a project to develop a further advanced electronic platform to act as a Controlled Document Management System (CDMS), as well as a more streamlined and interactive global corporate intranet. Tools such as these strengthen our existing best practice approach towards global internal communication, providing our personnel with timely and accurate information and resources to ensure mutually effective communication with our clients and business partners externally.

Furthermore, Pentagon is currently undertaking its annual 3rd party global QHSE ISO certification surveillance audits, to ensure our compliance with an performance against the following international standards:

ISO9001:2015 Quality Management Systems;

OHSAS18001:2007 Occupational Health & Safety Management Systems; and

ISO14001:2015 Environmental Management Systems.

Whilst this is a standard phase in an organization’s certification program, Pentagon sees great value in this process rather than seeing this as simply a formality. The audit process provides Pentagon with an opportunity for an external party to impartially examine our operations, procedures and processes with a view to continual improvement and operational excellence. Any findings, observations and suggestions that arise are considered as genuine opportunities for improvement and are investigated and considered further as appropriate to ensure a best-in-class management system is maintained. With the release of the new international Occupational Health and Safety Management System Standard ISO45001, Pentagon is currently briefing its Board and Senior Executives on this new release and will be looking to fully assess its impact before aiming to transition away from the OHSAS18001 Standard to this new truly international Standard.

Our 2018 progress to date in the QHSE & Compliance space, further strengthens our unwavering commitment to achieve our mission to be recognized by our colleagues, clients, competitors and supply chain as the best-in-class freight forwarding and logistics service provider to the energy and resources industry.

The Pentagon QHSE & Compliance team would like to thank you for all of your ongoing support and in the interest of continuous improvement, I personally welcome any feedback you may have via [email protected]

from ADAM FEWSTER

FACES of PENTAGON

QHSE UPDATE

By undertaking the global QHSE ISO certification surveillance audits Pentagon is ensuring our best-in-class management system is maintained.

CHRIS PARK1. Position at Pentagon:

Airfreight Team.

2. What is the most enjoyable part of your job? Rapid progression.

3. What’s the most irritating industry buzzword? Missing shipment.

4. If you could give your 18-year old self one piece of advice what would it be? Buy Bitcoin.

5. Describe yourself in four words or less: 24/7 working machine.

6. What was your worst ever job? Posting flyers in large apartment buildings.

7. Dead or alive, who would you most like to meet? Jack Sparrow.

8. What one question would you ask this person? Where is the hidden treasure?

9. If you weren’t doing this job, what would you be? Travel Guide.

10. What made you laugh recently? When I left work on time.

11. What was the last concert you went to? Mr. Big Live in Korea.

The MV Seacargo Express en route from Aagotnes, Norway to Aberdeen, carrying 400 tons of MDL Spread for Technip.

13

PENTAGON GLOBAL

PENTAGON’S IT TEAM ARE CURRENTLY WORKING THROUGH SEVERAL PROJECTS: The upgrade of Pentagon’s Insight system

to the cloud;

Movement of all offices to our central Office 365 tenant; and

Commencement of a global SharePoint rollout.

INSIGHT CLOUD UPGRADEPentagon’s Insight system currently performs the following key functions for our 3PL customers and the Group:

Customer portal;

B2B electronic integration for our 3PL customers; and

Warehouse management system.

Insight is instrumental in distinguishing the Group from its competitors. After many years of venerable service, the Group approved a project to migrate Insight’s architecture to the cloud. The timing was important because a choice needed to be made between investing in the upgrade of the aging hardware or direct

from JEREMY SMITH

1

1

3

3

IT UPDATEthe same capital into an upgrade to the cloud. The Group selected the latter option.

Although the focus of the project was primarily a back-end technology and architectural update, the opportunity was taken to enhance and increase the performance of Insight’s customer portal. The upgrade will allow smaller PFS offices to adopt the system thereby giving Pentagon and the customer further visibility of customer shipments.

The new platform will provide a solid foundation for the next phase of development which will involve potential feature enhancements such as Android hand scanners, pick and pack, and analytics.

OFFICE 365 FOR ALLIn alignment with the One Pentagon initiative, we continue to move Pentagon offices on to the same united Office 365 platform. Four of the five hubs have joined, with our Singapore hub soon to be moved. In addition, smaller offices have also joined the larger hubs on the tenant.

The central Office 365 tenant provides a diverse range of benefits such as enhanced communication (Skype for Business and Global Address List), email uptime and mobile accessibility, email compliance, latest MS Office software, and a platform for future Group initiatives such as the Global SharePoint project.

GLOBAL SHAREPOINT DESIGN AND ROLLOUTDuring the current period, the Group signed off a project to globally implement SharePoint to enable the efficient storage and retrieval of all non-operational documents. The high-level goals of the project are to drive standardisation, encourage reuse, and provide a platform for in-country and cross-border collaboration. IT are partnering with our colleagues in QHSE to deliver the project. The project is in the design phase and has been split into four implementation phases with checkpoints.

FACES of PENTAGON

EDWINA SOLOMON1. Position at Pentagon:

Bookkeeper.

2. What is the most enjoyable part of your job? Having a good relationship with our clients and suppliers.

3. What’s the most irritating industry buzzword? “I’ll get back to you”.

4. If you could give your 18-year old self one piece of advice what would it be? Pursue your dreams.

5. Describe yourself in four words or less: Hardworking, motivated and loyal.

6. What was your worst ever job? Retail.

7. Dead or alive, who would you most like to meet? Whitney Houston.

8. What one question would you ask this person? Why did you allow yourself to be treated that way, you have so much talent?

9. If you weren’t doing this job, what would you be? Teacher.

10. What made you laugh recently? Kevin taking “in your face” photo’s for PentaTalk.

11. What was the last concert you went to? I can’t remember, it has been too long!

Office 365 benefits include enhanced communication, email uptime and mobile accessibility, email compliance, latest MS Office

software and a platform for future Group initiatives.

BENEFITS OF THE OFFICE 365 UPGRADEThe MV Happy Sky en route from Tønsberg, Norway to Tanager, Norway, carrying a volume of 4,175 cbm of manifolds for Technip.

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2

2

Country Location

Algeria Hassi Messaoud

Argentina Buenos Aires

Australia Perth

Australia Darwin

Australia Karratha

Australia Brisbane

Australia Adelaide

Azerbaijan Baku

Brazil Rio de Janeiro

Canada Calgary

Canada Edmonton

Canada Vancouver

China Shanghai

China Beijing

Denmark Copenhagen

Egypt Cairo

France Marseille

France Paris

France Nantes

Germany Hamburg

India Mumbai

Indonesia Jakarta

Country Location

Indonesia Balikpapan

Indonesia Batam

Iraq Erbil

Iraq Basra

Italy Milan

Kazakhstan Almaty

Kazakhstan Atyrau

Kazakhstan Astana

Kazakhstan Aktau

Kazakhstan Uralsk

Kenya Mombasa

Malaysia Labuan

Malaysia Kuala Lumpur

Myanmar Yangon

Netherlands Amsterdam

Norway Kristiansand

Norway Stavanger

Norway Oslo

Oman Muscat

Papua New Guinea Port Moresby

Papua New Guinea Lae

Papua New Guinea Moro

Country Location

Poland Gdynia

Poland Warsaw

Qatar Doha

Romania Targu Mures

Singapore Singapore

South Africa Johannesburg

South Africa Durban

South Africa Cape Town

South Africa Port Elizabeth

South Korea Seoul

Sweden Stockholm

United Arab Emirates Abu Dhabi

United Arab Emirates Dubai

United Kingdom Heathrow

United Kingdom Great Yarmouth

United Kingdom Newcastle

United Kingdom Glasgow

United Kingdom Aberdeen

United Kingdom London

USA Houston

USA Dallas

Vietnam Ho Chi Minh City

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