Enhancing and Restoring Safety & Quality Cultures - Dave Litwiller - May 2024...
Yovanof, "The Digital Transformation of Shipping & Clusters of Innovation", June 27, 2018
1. The Digital Transformation of
Shipping & Clusters of Innovation
Gregory S. Yovanof, PhD
Managing Director, STRATEGIS – Maritime Center of Excellence
June 25-28, 2018
2. Agenda
• Global Shipping Trends
– New Technologies in Shipping
• Strategy for Digital Shipping
– Strategic Imperative: Digitize or Die
• Regional Development
– Maritime Clusters & Digital Innovation Hubs
– STRATEGIS Maritime ICT Cluster, Piraeus
2
3. Global Marine Trends
• “Shipping – probably the most
important business on the
planet”
– “Without ships there is no
world trade and even the
most pessimistic global
economic health scenario…
sees a big future for
shipping”
• Nick Brown, Lloyd’s Register’s
Marine Communications
Manager
5“Global Marine Trends 2030,” Lloyd’s Register, QinetQ, Strathclyde Univ., 2013
More than 90 per cent of
global trade is carried by sea
4. Connecting Ships, Ports & People
• IMO Sec-Gen,
Mr. Kitack Lim expressed
his commitment to pursue
industry’s goals for safety,
security & efficiency in
shipping.
– March 17, 2017 - Panama
Maritime event, celebrating
Panama’s 100th anniversary of
its ship registry
• IMO has chosen:
‘connecting ships, ports &
people’ as the theme for
World Maritime Day 2017
http://www.safety4sea.com/imo-sec-gen-highlights-future-challenges-for-shipping/
6. e-nautics* Shipping’s
Technology-enabled Future
e-nautics: Shipping’s
technology-enabled future
The sentient ship: from
nanotechnology to algorithms, ship
technology is about to disappear
The Cyborg Crew: Humans &
machines are heading to a seamless
future, both at sea & ashore
Future-nautics
If DATA is the new battleground
is TECH the new asset?
17* “Future Nautics – The Maritime Future,” Issue 1, Oct. 2013, Quarterly
7. www.marineboard.eu
Blue Growth & Blue Technologies:
EU Innovation Hotspots
• Robotics &
Autonomous Systems
• Nature inspired design
• Renewable energy harvesting
from wave energy to algae
biofuels
• High performance computing
& ICT innovations
• Multi-sector partnerships
– fast tracking innovation
20“Navigating the Future IV”, Position Paper 20, European Marine Board, June 2013
8. What will Ships look like in 30 Years?
23
The Guardian, May 3, 2018
https://www.theguardian.com/environment/2018/may/03/future-
sailors-what-will-ships-look-like-in-30-years
9. Aquarius Eco Ship - Low Emission Concept
Ship with Rigid Sails & Solar Power
• The Aquarius Eco Ship concept
design is an ongoing
comprehensive study project
focused on optimizing the design
of a large ocean going ship such as
a bulk carrier, oil tanker, RoRo
vessel or cruise ship, to harness
the power of the wind & sun using
Aquarius MRE.
– This study was started by Eco Marine
Power Co. Ltd (EMP) in May 2011 and
has attracted world-wide interest.
• Eco Marine Power (EMP) has been
granted a patent in Japan related to its
Aquarius Marine Renewable Energy
(MRE) System – an innovative wind &
solar power solution for ships.
– https://safety4sea.com/eco-marine-power-granted-
patent-for-aquarius-mre-system/ May 10, 2015 24
10. Hamburg Port Authority – A Network for
Water, Roads & Rail
IT-supported traffic management,
data exchange and video &
telephone conferences all run on
the same system
This means cargo containers can be
forwarded more quickly by
water, road & rail
26
“We decided to go with Cisco
technology from the very start. As
the largest player in the industry,
Cisco stands for future-proof,
state-of-the-art technologies.”
Dr. Sebastian Saxe, CIO of the
Hamburg Port Authority
11. • In the IoT, sensors and
actuators embedded in
physical objects are
linked together through
wired & wireless
networks
27
When objects can both sense the environment and communicate, they
become tools for understanding complexity and responding to it swiftly.
• They can work without human intervention. *
Geil Fagerhus, Director MARSEC-XL Int’l “Building the Maritime Internet of Things” April 4 2014, Vallejo, CA
Intelligent, Connected-Vessel
Maritime IoT – Digital Ship
12. Connectivity: Main theme in
Shipping2030
“From automation & IoT, to
sensors and tracking, to Big
Data & analytics, connectivity
underpins these disruptive
technologies and is the enabler
for shipping’s digital future”
– Shipping2030 Portfolio
Manager, Emily Impey
• Recent developments in
maritime satellite technology
mean that an enterprise
grade service
is now within reach &
budget, helping provide the
gateway to digital operation
https://www.marinetraffic.com/blog/shipping2030-big-data/
13. Autonomous, Unmanned Ship of the Future
• In an age of aerial drones and driver-less cars,
Rolls-Royce Holdings Plc is designing unmanned
cargo ships (Bloomberg, Feb. 25, 2014)
– Drone ships would be safer, cheaper and less polluting for the
$375 billion shipping industry that carries 90 percent of world
trade, Rolls-Royce says
36VIDEO [27 June 2016] https://www.rt.com/viral/348619-rolls-royce-remote-ships/
14. Autonomous Zero Emissions Container
Ship (Yara & Kongsberg, May 2017)
• The world's first
autonomous, zero
emission container ship
– Operation is planned to
start in the latter half of
2018, shipping products
from YARA's Porsgrunn
production plant to Brevik
and Larvik in Norway
– Announced: May 9, 2017
https://youtu.be/5VBD7hVRhx0 41
15. ‘Sea-Hunter’ a drone ship with no
crew, just joined the U.S. Navy fleet *
• DARPA hands autonomous
sub-hunter prototype over
to the US Navy *(Feb. 2018)
– “This is an inflection point.
It is the first time we’ve ever
had a totally robotic, trans-
oceanic-capable ship.”
• former Deputy Defense
Secretary Robert Work said in
an interview with Reuters in
2016
Following the successful completion of its
Anti-Submarine Warfare (ASW) Continuous
Trail Unmanned Vessel (ACTUV) program,
DARPA has officially transferred the
technology demonstration vessel, christened
Sea Hunter, to the Office of Naval Research
(ONR) (Credit: DARPA) VIDEO
44* https://www.digitaltrends.com/cool-tech/darpa-sea-hunter-joins-navy-fleet/
16. 3D Printing in Maritime
Maintenance, Repair & Operation (MRO)
Spare parts – just press print
• 3D printing could be set to
revolutionize the supply chain
in Maersk Tankers
(Monika Canty, July 7, 2014 *)
• Experimental project uses 3D
printer onboard Maersk tankers
to allow the crew to 'print off'
spare parts
45
* http://www.maersk.com/en/the-maersk-group/about-us/maersk-post/2014-3/spare-parts-just-press-print
http://www.safety4sea.com/3d-printer-onboard-maersk-tankers-to-allow-the-crew-to-print-off-spare-parts--21253
17. Shipping 4.0
• At Singapore Maritime Week
2016, MARINTEK proposed the
term "Shipping 4.0" to
describe the rapidly
increasing digitalization &
automation in merchant
shipping and to link it to
similar developments on land,
called Industry 4.0
• The digitalization of shipping
was a main theme in SMW
2016
– Cyber security, smart shipping
and sustainable shipping all
highlighted the role of
digitalization as key to increase
competitiveness and
sustainability
19. BCG Tells Carriers to Digitize or Die *
(Feb. 5, 2018)
• The container shipping industry
must join the Digital Revolution
or face being sidelined *
– “Digital opens the door for carriers to
strengthen their direct relationships
with end customers,
– further reduce their costs
(including for fuel, vessel operation,
and customer service),
– & pursue new revenue streams
beyond traditional shipping services,”
the report stated.
132
Sam Chambers, Splash247, “Boston Consulting
report tells carriers to digitize or die,” Feb. 5, 2018
* BCG, “The Digital Imperative in Container Shipping”,
Feb. 5, 2018
20. BCG, “The Digital Imperative in
Container Shipping” (Feb. 5, 2018)
Seven Digital Trends Will
Transform Container Shipping
• e-Platforms
• Advanced Analytics
• Internet of Things
• Artificial Intelligence (AI)
• Autonomous Vessels &
Robotics
• Blockchain
• Cyber-Security
133
* http://image-src.bcg.com/Images/BCG-The-Digital-
Imperative-in-Container-Shipping-Feb-2018_tcm9-183567.pdf
21. BCG – The “Digital Attackers”
• Carriers face an increasing threat
from what Boston Consulting
described as “digital attackers”
– Recognizing the opportunity,
e-commerce giant Amazon has obtained a
license to operate as an asset-less cargo
forwarder between China and the US
– Startups are also gaining traction: in the
past 6 years, more than $3.3bn has been
invested in digital startups in the shipping
& logistics sector
134
Sam Chambers, Splash247, “Boston Consulting
report tells carriers to digitize or die,” Feb. 5, 2018
* BCG, “The Digital Imperative in Container
Shipping”, Feb. 5, 2018
22. Creating Value From Data in Shipping
136
DNV-GL, “Creating Value From Data in Shipping,” Feb. 2018
https://www.dnvgl.com/maritime/Creating-Value-from-Data-in-Shipping/guidance-paper-download.html
23. IBM - Maersk Joint Venture (Jan 2018)
• IBM Forges Global Joint
Venture With Maersk
Applying Blockchain To
'Digitize' Global Trade
– Roger Aitken, Forbes,
Jan. 16, 2018
• https://www.forbes.com/sites/rogeraitken/2018/01/16/ibm-forges-global-joint-
venture-with-maersk-applying-blockchain-to-digitize-global-trade/#449bf52b547e
150
24. Maersk Races to Stop Clients From
Becoming Rivals [Feb 12, 2018]
• Amazon threat has Maersk
racing to stop Clients from
becoming Rivals
– “Amazon is a threat if we
don’t do a good job for
them”
• Soren Skou, the CEO of A.P. Moller
Maersk A/S, said in a phone interview
[Feb 12, 2018]
155
* http://www.ttnews.com/articles/amazon-threat-has-maersk-
racing-stop-clients-becoming-rivals
25. Hacked at Sea – Concerns Grow Over Lax
Cybersecurity for Ships, Ports (9 Feb 2018)
• As hacking risks grow and maritime operations
become more digitally connected, experts in
industry and government have long said no
one is prepared
– This summer was a wake-up call
– APM Terminals, a subsidiary of the world’s largest
container shipping company, A.P. Moller Maersk
Group, which transports roughly 20 percent of the
world’s cargo containers, was among the hardest
hit by the NotPetya ransomware
• In a “heroic effort” over 10 days, Maersk reinstalled
4,000 servers, 45,000 personal computers and 2,500
applications
– Cost to Maersk approximately $300M
*
https://www.newsdeeply.com/oceans/articles/2018/02/05/hack
ed-at-sea-concerns-grow-over-lax-cybersecurity-for-ships-ports
158
26. New Source of Growth:
Knowledge-based Capital (KBC)
Creative Capital & Regional Growth
167
27. A Global Race for Attractiveness
Nations and city regions
compete to be the most
attractive locations for
knowledge intensive
industries
Professor Torger Reve, BI Norwegian School of Management, “From Industrial Clusters to Global
Knowledge Hubs”, MOC Network Cluster Research Workshop, Harvard Business School, Dec 12, 2010.
Leading Maritime Clusters
are competing for talent in
order to deliver quality,
service and be innovative
29. ECO Research Centre in
Singapore Maritime Cluster
189
• FutureShip, Germanischer
Lloyd’s (GL) maritime
engineering and consultancy
subsidiary, established the ECO
Research Centre in Singapore
(May, 2013)
– The Centre, which aims to conduct
research to strengthen FutureShip’s
energy efficiency solutions for its Asian
clients, will be supported by the Maritime
& Port Authority of Singapore (MPA)
under its Maritime Cluster Fund (MCF)
30. Maritime Knowledge Hub in Singapore
• The ECO Research Centre
will be the first research and
development (R&D) Centre to
benefit from the
enhancement to the MCF,
which was expanded to cover
the setting up of R&D and
Test Centers, critical
components in developing a
Maritime Knowledge Hub, in
Singapore.
190
The Maritime and Port Authority of Singapore
(MPA) will inject another S$65 million (US$46.8
million) into the Maritime Cluster Fund-Manpower
Development program (MCF-MD) to attract and
groom local talent for the maritime sector.
(March 13, 2015)http://www.marinelink.com/news/singapore-spending387537.aspx
31. Port of Rotterdam Joins Forces With IBM
to Become Smartest Port in the World
• Port of Rotterdam teams
with IBM Internet of Things
to digitize operations and
build a connected, smart
port of the future
– IBM is helping reshape
Europe’s largest port with
Digital Twin, predictive
weather insights, 3D printing,
& connected devices
https://twitter.com/IBMIoT/status/971454548123451394 193
32. Development of Maritime Clusters in the
Mediterranean & Black Sea Areas
198https://webgate.ec.europa.eu/maritimeforum/en/node/3648
EC, DG MARE, Aug. 29, 2014
33. Greece owns world’s most valuable
fleet at 100 billion USD
Hellenic Shipping News Feb. 1, 2018
• Greek owners remain the dominant
force in global shipping
• The current value of their owned
fleet stands at almost exactly
$100bn, putting the country at the
top of the table
– The value is concentrated in the
Tanker ($36bn), Bulker ($35.75bn),
and LNG ($13.5) vessel types
– Hellenic control of these markets
stands at about 19% of the total
worth of the fleets
199https://pbs.twimg.com/media/DU6NNjPW4AEB5pD.jpg:large
http://www.hellenicshippingnews.com/greece-owns-worlds-
most-valuable-fleet-at-100-billion-usd/
35. STRATEGIS – Vision
To become a world-class
Maritime ICT Cluster &
Technology Flagship of the
Greek Shipping Industry in
the Digital Age
204
36. STRATEGIS – Mission
To offer 21st century
maritime services &
synergies for growth
enabling Smart Sea –
sustainable business
opportunities in the
greater SEE region
205
37. STRATEGIS - Services
• R&D in Blue Economy & Digital Shipping
• Strategy Consulting
• Commercialization of
Disruptive Technologies
• Education & Training
• Clusters of Innovation
• Entrepreneurship
206
21st century
maritime services &
synergies for growth
40. Expanding a Web of
Synergies & Collaborations
SetelHellas &
Cisco Systems
“Unlock the Business
Value of Digital Ship”
217
41. EDF Funded Project – Ocean2020
IDE / a founding member of STRATEGIS
• The European Defense Fund (EDF) has funded
a raft of new defense research projects across
the EU, which will cover naval, airborne and
land-based operations
– https://www.governmenteuropa.eu/edf-new-funding-
for-defence-research-projects/84602/
• One project, which brings together 42 partners
from 15 European member states, is called
Ocean2020, and will support maritime
surveillance and interdiction missions at sea
– The project seeks to integrate drones and unmanned
submarines into fleet operations, and will receive a
grant of around €35m
– Intracom Defense Electronics (IDE)
is part of the Ocean2020 consortium
219
• The @Leonardo led OCEAN2020
European Defence Agency’s
programme will see different types of
unmanned platforms – fixed wing,
rotary wing, surface and underwater –
integrated with naval units’ command
and control centres to enhance
European naval surveillance and
interdiction capabilities.
42. Athens Information Technology
• http://vital-iot.eu/partners
– The future of Smart Cities
• http://secureiot.eu/partners
– SecureIoT project focuses on delivering
predictive IoT security services
• http://www.faredge.eu/#/partners
– Factory automation, Edge computing,
Operating system, Reference implementation
• http://fiesta-iot.eu/
– Federated Interoperable Semantic IoT
Testbeds and Applications
• https://sansa-h2020.eu/
– Shared Access Terrestrial-Satellite Backhaul
Network enabled by Smart Antennas
221
44. Fostering a Regional
Entrepreneurial Ecosystem
• Aephoria.net &
BlueGrowthPiraeus
• Municipality of Piraeus
– Business Plan Competitions
– Hackathons,
– Incubators
– Startups
226
http://bluegrowth.gr/
45. Vision - To inspire the next generation
of entrepreneurs to create sustainable
economic, social, and environmental
growth in the maritime sector
Mission - To enable, equip, and
educate young entrepreneurs, through
collaboration with the Maritime Industry
and Academic community.
What is BlueGrowth?
Key facts
20 Start-ups Launched since 2014
55 Jobs Created
65 Community Networking Events
PIRAEUS: URBACT GOOD PRACTICE CITY!
Advisors
Funding
Incubation
Process
Start-up
Facilities
Innovation &
Networking
Events
Industry
Mentors
What’s in the BlueGrowth Ecosystem?
• BlueGrowth Initiative has been awarded the URBACT Good
Practice City label.
• Piraeus good practice has been selected among 270 proposals
submitted by European cities.
• Opportunity to network with European and city policy-makers
• Share its experience within Transfer networks
• Lead and mentor the process of understanding, adapting and
reusing the good practice by other cities through workshops
• Participation in URBACT events for the promotion of good
practices
• Highlight of the BG in URBACT promotional activities
(publications, webpage, videos, etc)
• Becoming an advocate of sustainable integrated urban
development at URBACT events (conventions, workshops, related
46. Strategic Partnerships/Collaborations
• Maritime Surveillance
– PROTeus project & Cluster
• Blue Energy
– PELAGOS Cluster Affiliation
• Blue Biotechnology
– MoU with BIONIAN Cluster
(July 4, 2017)
235
www.marineboar.eu
47. Summary
• Shipping is undergoing a Technological Revolution
– The Digitalization of the Supply Chain puts a pressure for open, global
digital platforms
– Consolidation in the industry can accelerate transformation
• It is Strategy & NOT technology that drives Digital
Transformation
– Shipping industry needs to embrace Digitalization to avoid its “Kodak
Moment”
• Clusters & networks of innovation are inseparable tools of a
Regional Growth Strategy
239
48. Thank You!
Gregory S. Yovanof
STRATEGIS - Maritime Center of Excellence
email: director@strategis-cluster.com cel: +30 6973 696 408
@StrategisClustr