LBC Shanghai Shipping is making tangible progress towards better risk prevention with the use of a specialised risk prevention management system
In recent years, accidents in storage terminals have made headlines in China, prompting local authorities to strengthen regulations and to very significantly step up law enforcement.
The same trend can be observed across industries, as the Chinese government prioritises sustainable development under its ‘China Dream’ campaign.
Numerous factory closures were reported in the second half of 2017. As plants were forcibly shut down after failing government inspections, many businesses, including multinationals, saw their supply chain impacted as a result. Strict regulations have actually been in place for years already, but authorities met difficulties enforcing them.
Today, better enforcement takes the form of more rigorous audits and by-the-book punishment if the company is found non-compliant.
Considering the risk to get thrown in jail, general managers now treat these matters much more seriously than in the past. In the wake of the 19th Communist Party of China National Congress, this ultimately positive trend is set to continue.
When accidents or incidents occur, terminal operators face dire legal consequences (penalties, suspension of license, jail time), as well as impact on revenue, repair costs, insurance premiums, not to mention staff motivation, company image and stock value.