DIGITALISATION OF THE MARITIME INDUSTRY WÄRTSILÄ / …

DIGITALISATION OF THE MARITIME INDUSTRY

WÄRTSILÄ / TRANSAS

THE FUTURE OF FLEET OPERATIONS CUSTOMER CONFERENCE

NOVEMBER 5TH, 2019

AGENDA

INTRODUCTION

STRATEGY

CYBER SECURITY

ADDITIVE MANUFACTURING OF SPARES

DIGITAL CREW CERTIFICATES

SINGAPORE SHIPPING ASSOCIATION

STEEN’S ACTIVITIES

STEEN’S BACKGROUND

A.P. MOLLER – MAERSK – 1987-2009DENMARK – PAKISTAN – KOREA – INDIA – SINGAPORE – HONG KONG

GERMANISCHER LLOYD – 2010-2013CHINA

DNV GL – 2013-2017SINGAPORE

RADIO HOLLAND – 2017-2019SINGAPORE

EXECUTIVE SHIP MANAGEMENT 2019-SINGAPORE

THE FUTURE GENERATION

DIGITAL = GOOD ?

AGENDA

INTRODUCTION

STRATEGY

CYBER SECURITY




BUILD THE BASICS

Do we have a Digital Strategy ?

IT HAS BEEN DONE

KEY QUESTIONS

Key questions to ask before planning a digital strategy

What is the source of the competitive edge for the core business ?

How will digitalization affect the operating model and the company’s

position in the market ?

Are there any digital disruption models from other industries that

are likely to compete with the core business or alter the structure

of the industry or value chain ?

Identify areas where value creation through digitalization has

the most relevance.

Engine and deck log books

Passage planning

Tank cleaning

Compliance

Fleet maintenance

Spares

Crew management

Predictive maintenance

BI Tool

Digital crew certificates

Digital class certificates

TARGET PROCESSES

BI tool with customer interface

Operational Control Centre

Digital organization (independent)

Reinventing the core business through digital transformation

Office visit experience

Internal communication

AI / AR based navigation

TIM

ESO

ON

LA

TER

Invoicing and payment hierarchy

PSC / RightshipANALYTICS

MASS - Autonomy

Procurement

Crew Welfare

ESM LIVE

Digital

DATA GATHERING

VISUALISATION

SIMULATION

MACHINE LEARNING

OPTIMISATIONOptimal decisions for clear objectives

Algorithms learn from data and make predictions

Digital twin to make trials and predict performance

Dashboards / Communication

Digital

• 10-20-70

• 10% algorithms

• 20% tools/technology/IT

• 70% people - Business Transformation

The real task is addressing cross functional use teams around the total mission (the ship), rather than only the individual task (tech/crew/ops/HSE)

PRIORITIES 10-20-70

ULTIMATE TRANSFORMATION

Business Business Digital Business

Digital

Digital

Digital

Digital

Time

AGENDA

INTRODUCTION

STRATEGY

CYBER SECURITY




MARITIME CYBER EMERGENCY RESPONSE TEAM

MCERT – OVERVIEW

©MCERT 2019

COMMERCIAL IN CONFIDENCE

The MCERT is a global collaboration

offering cyber incident support and response

for the industry by the industry.

MCERT was founded by Templar Executives

& Wärtsilä.

©MCERT 2019


MCERT – Drivers of Change

Regulation & Compliance ▪ Sector specific e.g. IMO regulations,

BIMCO guidelines;

▪ Country and flag state regulations.

National Interests ▪ Of high fiscal importance globally - one

million+ seafarers in over 150 nations;

▪ Serving more than 90% of global trade.

Technological Advances ▪ Digitalisation, Automation, Innovation;

▪ Integration of IT/OT systems;

▪ Billions of devices connected.

Business Risk and Opportunity ▪ Financial and Reputational;

▪ Ecosystem and supply chain complexity.

©MCERT 2019


MCERT – Scope

MCERT Membership provides the following:

• 24/7 Reporting of incidents with the option of anonymity;

• Incident triage and access to Supplier Framework.

Incident Reporting & Response

• Threat map (global cyber incidents);

• Relevant threat alerts;

• Daily reports.Threat Intelligence

• Access to MCERT hosted forums;

• Private discussion space for the MCERT community.MCERT Forums

©MCERT 2019


MCERT – Incident Response

Handling an incident requires coordinated action and a timely

response;

MCERT Operators will triage an incident to provide appropriate

response and mitigation options with expert advice and support.

• “Respond quickly and efficiently to a Cyber incident.” (BIMCO, 2019)

• “Implement risk control processes and contingency planningto protect against a Cyber-event” (MSC-FAL.1/Circ.3)

©MCERT 2019


MCERT – Cyber Intelligence

The MCERT helps prevent and protect members against cyber

incidents via targeted and relevant daily threat intelligence reporting;

The MCERT operates a reporting portal enabling collaborative

information sharing, anonymously if desired;

The MCERT cyber intelligence capability is staffed with trained analysts

able to generate timely threat intelligence in relation to emerging

cyber threats and incidents.

• “Raise awareness on Cyber Risk threats and vulnerabilities” [MSC.428(98)]

©MCERT 2019


MCERT – Onboarding

Organisation decides to join MCERT

They visit www.maritimecert.org and

register as a new user

The MCERT takes payment

MCERT confirms the payment and, approves

the user access

New user is officially a MCERT Member with access

to www.maritimecert.org

MCERT Member has the full benefits of joining the

MCERT

©MCERT 2019


MCERT – Summary of Benefits

• IMO 2021 Guidelines – Empowering you to meet your duty of care and IMO

obligations (+BIMCO);

• Cyber incident triage – Coordinated action to establish appropriate response and

mitigation;

• Cyber incident response – options to restore operational capability;

• Cyber information and intelligence – Proactively addressing against cyber-attacks

and risks to vessels and operations;

• Access to MCERT Forums and Certified Training.

AGENDA

INTRODUCTION

STRATEGY

CYBER SECURITY




Joint Industry Program (JIP) on

the Feasibility of Additive

Manufacturing for Marine Parts

WORKSTREAM 1 - JIP PARTICIPANTS

AM JIP PARTNERS

JIP Scope:

The objective of the JIP with 3 workstreams is to establish:

▪Work stream #1

▪Work stream #2

▪Work stream #3

- Commercial viability through market feasibility study

-Technical feasibility

- Regulatory requirements behind the use of AM for marine parts

(1) MarketFeasibility Study

Work stream #1

100 parts shortlisted

(2) Part Suitability & Selection + AMFabrication

Work stream #2

(3) TestingMethodology and DataGeneration

Work stream #3

AM JIP DELIVERS

AM JIP 100 PARTSHighly feasible for 3D printing

without class certification

Highly feasible for 3D Printable

with class certification

Not highly feasible for 3D

printingBearing shell Air compressor elbow Angular ball bearingCompressor housing Anti-polishing ring AnodeFuel pump top cover Banjo plug Band brake liningPlate for condenser/evaporator Bearing bush Bearing housing

Shaft Bearing cover Bolt reamerTurbine diffuser Bleed screw Compressed sealingringValve plug Bursting disc Compressor driving pulleyBearing nut Connecting rod Coned disc springBlade (air compressor) Cooling water jacket Crane shackleClaw clutch Crank pin DowelpinClutch shoe Drive pinion FairleadConnection nipple Flange GasketCoupling Flexible coupling Gear ringCylinder liner Gear Gland packingDamper ring Guide pin HexagonscrewExpansionjoint Handle axle Impeller nutFlywheel Hatch cover packing KeyHelical rotor Impeller Mooring winch drumNozzle ring Needle roller bearing Oil scraper ring (stuffing box)

Pistonring Nozzle tip Pipe clampPlunger barrel O ring PistoncrownRocker arm bracket Oil slinger Purifier bowlRoller guide housing Pintle bush ScrewRotary cup Polyurethane buffer SpringSpindle guide Quick acting cleats Steel ballTapered bush Retainer ring V pulleyThrust collar Sea chest strainer Valve springThrust piece Seal valve stem Filter cartridgeValve guide Spiral gearValve seat Spring carrierValve spindle SwirlerWorm gear Thrust spindleNut Valve bridge

Valve cotterWasher

AGENDA

INTRODUCTION

STRATEGY

CYBER SECURITY




Lack of trust & transparency

85% misrepresentations or

incorrect statements on

resumes

60% Counterfeit documents

or alteration

30% Falsification of records

10% Cloning or impersonation

Today’s paper-based systems

Inefficiencies

lengthy paper-chains &

repetitive manual tasks

imposing a substantial

administrative burden/costs

& increasing risk of errors

Risk of non-compliance &

huge fines

with data-privacy

regulations/ stringent

GDPR / PDPA

requirements

FRAUD IN CURRENT CERTIFICATES

Leveraging

Blockchain & AIAs a catalyst for

digitisation

C-LOG is digitising several paper-based processes in the maritime industry

Certificates and licenses

Record of sea-going service

Endorsements

Health Certificates

Familiarization

Record of completed training

Assessments (soft-hard skills)

All documentation in one place.

AGENDA

INTRODUCTION

STRATEGY

CYBER SECURITY




A VIBRANT COMMUNITY

Coming together to:

Design a strategy playbook

Structure cyber security priorities

Upskill talent

Bring the AM JIP to life

Innovate a International E-Registry of Ships (IERS)

EIRSINTERNATIONAL E-REGISTRY OF SHIPS (IERS)

Joint Media Release

Singapore, 14 October 2019

PROJECT IS LAUNCHED TO TRANSFORM SHIPPING REGISTRIES GLOBALLY

Confirming Singapore’s position as an international hub for innovation, the Singapore Shipping

Association (SSA) is working with the world’s largest business organisation, the International

Chamber of Commerce (ICC) and pioneering Singapore tech startup Perlin, to build an advanced

digital blockchain ship registration preparation system for international adoption.

Called the International E-Registry of Ships (IERS), it is an entirely new digital blockchain-based

solution to streamline, standardize and drastically improve the currently laborious ship registration

and renewal process. Immediate advantages will include very significant reductions in operating

costs, timing required, human error and fraud.

“The Singapore flag is already a nexus for global maritime trade and innovation. The Singapore

Shipping Association has been actively encouraging and promoting the adoption of new technologies

to navigate the future of shipping. This opportunity to collaborate with the ICC and Perlin to co-

create the world’s first blockchain system for preparation of ship registration not only brings solid

efficiency gains and cost savings for our members but also the wider global maritime community,”

said Steen Brodsgaard Lund, SSA Council Member and Chairman of the Digital Transformation

Committee.

Singapore is the fifth largest registry in the world with a fleet of around 4,500 ships amounting to 91

million gross tons. Such collaboration may have the potential to improve the efficiency of the ship

registration process for the Singapore flag, which is currently done via the Marinet web portal. Such

a solution will also benefit other ship registries who are using manual and paper-based processes.

The Maritime and Port Authority of Singapore (MPA) is supporting this industry-led initiative through

knowledge sharing of the IERS ship registration process and exploration of an open Application

Programming Interface (API) interface in the registration process.

“MPA is heartened that SSA is galvanising the maritime industry to come together to leverage

relevant technologies to streamline the preparation process in ship registration. We are happy to

show our support to such initiatives which can bring greater efficiencies to the shipping industry,”

said Ms Quah Ley Hoon, Chief Executive of the Marine and Port Authority of Singapore.

Essentially, the IERS will be powered by Perlin’s pioneering Wavelet Protocol to create a blockchain

E-register powered by self-executing smart contracts, a streamlined relationship management

platform, and vastly simplified data entry user systems. Automated document checking and API

integration from trusted data sources will also render inefficient manual systems currently used

effectively obsolete.

“As a blockchain company focused on harnessing positive technological disruption, we are greatly

honoured to be working with key partners like the ICC, MPA, SSA, and shipping companies to ensure

Singapore remains at the forefront of digital innovation in port and maritime infrastructure. Using

our pioneering Wavelet Protocol, the most performant public blockchain in the world, we can make

the new IERS a world standard for best practice,” explained Dorjee Sun, Chief Executive Officer of

Perlin.

Once successfully implemented in Singapore, the ICC will provide active and ongoing support for

global adoption of the IERS standards, systems and technology developed by Perlin among its vast

international network of members, affiliated chambers and other business networks. The ICC will

also assist with the submission of Singapore’s IERS in all international government tenders.

“The ICC recognises Singapore as a highly dynamic international hub for continuing industry

innovation. Working with Perlin, our goal is for the IERS built in Singapore as the world’s first digital

blockchain shipping registry solution to be showcased and adopted globally to help power the next

100 years of shipping-based trade across all industries,” said John Denton AO, Secretary General of

the ICC.

Aside from the ICC and Perlin, the IERS is championed by key stakeholders, such as the SSA, DNV GL, Zeaborn, Pacific International Lines, Executive Ship Management, and a growing list of others. Consolidating Singapore’s position as a pioneer and global centre for innovation in vessel registration and renewal, it is likely that other jurisdictions will seek to integrate the IERS transformative digital platform to access the very substantial available benefits.

EIRS

Signatories of the International E-Registry of Ships (IERS) MoU Mr John Denton AO, Secretary-General of ICC, Mr Dorjee Sun, Chief Executive Officer of Perlin and Mr Steen Brodsgaard Lund, Chairman of SSA Digital Transformation Committee. MPA Chief Executive, Ms Quah Ley Hoon, witnessed the signing.

THANK YOU !

QUESTIONS AND DIALOGUE PLEASE

Steen Brodsgaard Lund

[email protected]

+65-96425394

mailto:[email protected]

Documents

DIGITALISATION OF THE MARITIME INDUSTRY WÄRTSILÄ / …