In the competitive world of International shipping, the name Evergreen has become synonymous with expansion and sound planning policies. In less than sixteen years, the company has grown into one of the world's largest shipping conglomerates, and stands on the threshold of becoming the number one container carrier shipping company.
Evergreen Marine Transport is a Taiwan based shipping company. Chairman of the board, Chang Jung-fa, relates that the company started out in 1964 with just one secondhand carrier vessel. The next year, using modest profits from the first year venture, plus bank loans, the company invested in three ships and opened the first regular shipping line between Taiwan and the Persian Gulf. At the time, many established business and financial experts doubted that this dark horse company would succeed. But sceptics soon became believers as company business grew daily.
The next year a new shipping line was established between the Far East and Central-South America. After another year, Chang and fellow associates saw that the age of 'containerization' was rapidly approaching, and invested $1,000,000 U.S. into researching the development of container vessels for the company. After two years of research and preparation, the company inaugurated a shipping line to the eastern seaboard of the United States in 1975.
Sound, long range planning has been key to the company's growth. Between the years 1976-1979, the company opened lines to the western seaboard of the United States, Mediterranean and Northern Europe, and Southeast Asia. Not only did Evergreen continue to grow during the recession in 1982, but it managed to grow faster than all of its competitors.
This phenomenal growth has spurred much speculation as to the behind the scenes operation of the company. It is generally believed that the company has had enormous investment and help from Japan. Confounding matters, the company itself maintains a mysterious silence; as rumors grow, so do company profits.
Yen Jou-ch'i, a company employee, laughingly states that the only secret behind the success of the company is plain hard work and meticulous planning. She denies a secret Japanese connection. However, chairman of the board, Chang Jung-fa, had worked in Japan at one time, and was familiar with the various financial consortiums. Therefore he was able to build a working relationship with these companies. Early loans, ship purchases and other business dealings were conducted with some Japanese help. The Japanese trade conglomerate, Marubeni, as often served as middleman in business deals.
According to analysts there are three basic reasons for the success of the company: sound, long-range planning, a thorough personnel management policy, and dedicated working spirit.
Research and detailed analysis of every proposal is general policy at Evergreen. Planners estimate a project's market potential, costs, and profitability. One of the biggest company coups was the decision to buy ships during the recession a few years ago. The ships were bought for a relatively low price, and earnings more than covered investment once they were put into operation. Planners researching carrier speed potential and cost efficiency decided that the fastest vessel was not necessarily the most profitable. Therefore ships were designed to travel at slightly slower speeds. The profits from fuel conservation have been substantial.
The philosophy of work at Evergreen is somewhat revolutionary in outlook. Where most companies look for experience in prospective employees, Evergreen has adopted a policy of training college graduates with no former work experience.
Another important difference in worker policy is the concept of 'a lifetime with the company'. Employees are hired with the attitude that this will be a permanent job.
Stringent testing and interviewing procedures are a part of the hiring process. The prospective worker must take two written tests before an interview is granted. Interviews are conducted in front of the chairman of the board and other high ranking management officials. If the candidate can successfully pass these trials, he has Evergreen potential.
Following the arduous entry process, employees enjoy favorable treatment in the company. Salaries, on the average, are higher than at other shipping companies. Company policy encourages cooperation between employees and their supervisors. For example, if an employee makes a mistake, his supervisor is fined. However, if the employee is to be promoted, his supervisor is promoted as well.
The concept of company spirit is uniquely an Evergreen innovation. All employees when hired start at the bottom and must work their way up. They are trained to do not one, but a variety of jobs. Workers are introduced to all areas of the shipping industry and are often rotated among jobs. Whether they be office workers, or sailors, all are taught to study and learn the roles of other employees. Sailors are rotated on a one year on the sea and one year on the land basis. This way they get experience not only in shipboard work, but also dock work, ship maintenance and repair. This rotation of jobs keeps employees informed and alert as to company workings. The company also provides many benefits for employees such as free meals, outings and socials. Other favorable measures are worker uniforms, and the potential to work abroad. As one management level person said "boats are easy to build, it's the employee that is hard to cultivate."
The Evergreen Shipping Line has grown from a small company of 28 employees to an international conglomerate with 3,000 workers in many countries. Despite the company's exponential growth plans for further expansion are in the offing. Board chairman, Chang Jung-fa has announced a new U.S. one billion dollar program of investment that will put the company at the forefront of world shipping. In July of this year, a new simultaneous eastwest, round the world carrier shipping service will be inaugurated by the company. The company is also planning a massive expansion of its carrier vessel fleet, that will by 1986 give a shipboard carrying capacity of 91,660 TEU (20 feet equivalent unit).
Evergreen Shipping Lines of Taiwan is a modern success story. Combining progressive management policies with traditional "hard work" attitudes, the company has put the Republic of China on the maps of world shipping.
(Gerald Hatherly)
[Picture Caption]
One of Evergreen's multi-purpose cargo ships was converted to a training ship for students studying marine transportation.
1. Evergreen's chairman, Chang Jung-fa used second-hand ships to get established. 2. Evergreen's capable female personnel display smart green uniforms and efficient working spirit.
Evergreen Marine Transport's services spread throughout Europe and America. A trailer pulling the company's green container crosses the Seine River in front of Notre Dame in Paris.
1. Evergreen's chairman, Chang Jung-fa used second-hand ships to get established. 2. Evergreen's capable female personnel display smart green uniforms and efficient working spirit.
2. Evergreen's capable female personnel display smart green uniforms and efficient working spirit.
Evergreen Marine Transport's services spread throughout Europe and America. A trailer pulling the company's green container crosses the Seine River in front of Notre Dame in Paris.
