Held resigns from NOL, Widdows takes charge

Singapore-based Neptune Orient Lines Ltd. today shocked most of the shipping industry, announcing Thomas Held has stepped down with immediate effect as group president, chief executive officer and board member, with Ronald Widdows, head of NOL's container shipping business APL, taking over.

NOL said the move was made by mutual agreement.

Held, a German national, took over from David Lim as CEO of NOL in November 2006 having previously been chairman and CEO of Schenker, the international freight forwarding arm of Deutsche Bahn. During his tenure NOL/APL has largely outperformed the market in the container-shipping arena -- a leaked Maersk internal mission statement pointed to the cost base and vessel utilization of APL as the benchmark for its recovery program -- while at the same time steadily increasing its logistics footprint.

Philip Damas, division director of Drewry Supply Chain Advisors, said he was surprised by the announcement and said it spelled bad news for the proposed NOL/Hapag-Lloyd marriage.

He added that Held was not leaving the company under a cloud unlike Lim, his predecessor who was forced out after just three years at a time when the company's share price and container shipping market share was in a slump.

Damas said cultural differences may have been the deciding factor as Held is not the first Western manager to make a sudden departure. Flemming Jacobs, a former partner of Denmark's A.P. Moller and one-time head of Maersk Line, stepped down in January 2003 as CEO of NOL and APL before his contract expired.

The London-based analyst added that Widdows should have a better working relationship and understanding of the owners having a long history with the group. Widdows, an American national, has been with the APL organization for 28 years, becoming part of the NOL family when the Singapore group acquired APL for $825 million in 1997. He has served as CEO of APL since 2003.

The board of directors feels that this is the right time for a change in the stewardship of the NOL Group, as it positions to grow in container shipping amidst the challenges of a cyclical industry sector, a slowing world economy and a tougher cost environment. Ron Widdows is the right person to lead the company forward at this time, said NOL Chairman Cheng Wai Keung.

On behalf of NOL's board of directors and employees, I wish to express our gratitude to Thomas Held for his contributions towards the success of our group and wish him all the best in his future endeavors. He leaves the company in excellent shape.

In a statement, Held said: I am proud to have led NOL, and of its achievements over the past two years. I wish Ron Widdows and the NOL team continuing success into the future. Cheng continued: As a member of NOL's senior management team, Ron Widdows was the key architect of the successful APL business model, with its strong focus on yield, high asset utilization and cost management, and has played a significant role in the success of our company over the past six years.

In his new role, he will provide continuity as well as a great depth of industry knowledge. The board is confident that, under his leadership, the NOL Group will continue to build upon its track record of consistent performance and value creation for shareholders and customers.   Widdows said: I am deeply honored to have the opportunity to lead a company which is generally recognized as a global industry leader. Above all, it is the dedication and capability of our people which will enable us to continue to perform at the top of the industry.

Source: American Shipper