Slow Growth of Shipbuilding Industry

Hampering the Demand for Marine

Coatings

Marine coatings are protective waterproof layers applied to surfaces unprotected from, exposed
to, or immersed in fresh, brackish and/or salt water. They are mainly used for coating ferries,
boats, ships and other watercrafts, as well as applied to marine structures such as offshore oil
rigs, drill ships, and oil and gas structures. Marine coatings include base, top and clear coats;
paints, primers, varnishes and stains; and inks, marking materials, and sealers or surface sealants.
Similar to other types of protective coatings, marine coatings differ, in terms of performance,
properties and chemistries. Marine paints include anti-corrosion and anti-fouling coatings, in
which anti-corrosion coatings account for the major share.

The market size of marine coatings was around USD 3 billion in 2018 and is expected to grow at
a CAGR of around 3% in the next five years. The market is consolidated, with top 10 players
such as AkzoNobel, Chugoku Marine Paints, Jotun, PPG, Hempel, KCC, Kansai, Nippon Paint,
Sherwin-Williams and RPM (Carboline) accounting for around 95% of the overall market share
(Figure 1).

FIGURE 1 » Marine coatings

market share, 2018.

Globally, most of the marine coating companies have witnessed tough market conditions in the marine industry, where the combination of decelerating demand and increasing
competition contributed to negative organic growth in the last few years. Significant negative impacts were observed in the marine new build markets in China and South Korea.
The marine coatings market remained challenging in 2018, and has contracted further as a result of low demand in the new shipbuilding market. Despite these challenges, marine
coating manufacturers are optimistic about witnessing underlying organic growth across most segments of the market and geographies. For the long term, manufacturers are
positive about a recovery in shipbuilding manufacturing, which is likely to drive the demand for marine coatings.
Continuing Shift to Asia Pacific

Asia Pacific is the largest and fastest-growing market, and accounts for around 90% of the overall marine coatings demand in 2018. The region is projected to be the fastest
growing in the next five years, in terms of both value and volume (Figure 2). China, South Korea and Japan are the key markets due to their large shipbuilding and dry docking
industries. These three countries account for a major part of the global shipbuilding industry. In addition, Singapore has one of the busiest ports in the world, which in turn, is
likely to increase ship maintenance and repair activities in the country. This would gradually increase the demand for marine coatings. Increasing shipbuilding activities in the
emerging economies such as India, Indonesia, Malaysia and the Philippines are likely to positively affect the growth of the marine coatings demand in the region in the next five
years.

FIGURE 2 » Marine coatings

demand share, by region, by value, 2018.

The marine coatings market comprises a number of sub-segments such as oil tankers, bulk carriers, general cargo ships, container ships, gas carriers, chemical tankers, offshore,
and ferries and passenger ships (that operate in both ocean and freshwater environments) (Figure 3). Marine coatings can be used for new construction, OEM, maintenance and
repair. Marine coating applications include ballast tank linings that protect against corrosion in severe conditions and enhance vessel safety, as well as container tank linings that
protect liquid cargo from contamination and pollution.

FIGURE 3 » World fleet by principal vessel type,

share of tonnage (dead-weight tons), 2018. Note: Others include gas carriers, chemical tankers,
offshore, and ferries and passenger ships. Source: UNCTAD

During 2017-2018, the demand for gas carriers and oil tanker vessels grew at a rate of 7.2% and 4.7%, respectively. The growth of the oil and gas industry provides an opportunity
for an increase in the demand for liquid cargo vessels; this is expected to boost the marine coatings market during the forecast period.
Green Technologies to Conserve the Green Environment

Most regulations are targeted at curtailing VOC emissions from coatings. Regulations such as the REACH and LEED GreenSeal GC-03 2nd Ed., 1997 specify the VOC content in
grams per liter (g/L) for coatings. Such regulations have put pressure on marine coatings manufacturers to reduce VOC content while simultaneously trying to improve or maintain
both the coating quality and performance. All these have also affected the product prices, due to the changes in the technology used for producing marine coatings. Before these
regulations came into force, solventborne coatings with moderate to high solid content were in vogue. However, the new regulations have compelled manufacturers to produce
either solventborne coatings with low solid content or waterborne coatings. This change in technology entails high investments, as the production process has to be changed, which
affects the product performance. Therefore, regulations are a challenge for market growth.

Solvents Emissions Directive regulates VOC emissions from facilities such as shipyards and docks. This indicates that companies have to produce coatings that have less solvent
or are water-based. The companies are also regulated by the Biocidal Products Directive (BPD), where all biocides used in antifouling paints need to be evaluated and approved
before they can be legally sold. In the EU, biocides that are not well documented are more or less phased out of the market, as regulated by BPD. All the leading suppliers are
following this legislation. In the United States there are a series of regulations governing the substances that the companies can use in their products, together with the rules for
VOCs and biocides. Rules pertaining to VOCs are about to be introduced in Hong Kong, Singapore and many other countries. For customers, there are two main areas of coatings
legislation that have had a significant beneficial impact. Firstly, the Control of Harmful Antifouling Systems on Ships, in which the International Maritime Organization
convention established a ban on the application of tributyltin (TBT) antifouling on ship hulls from January 1, 2003 and an end to the presence of TBT on ship hulls altogether from
January 1, 2008. The convention was put into force on September 17, 2007. Secondly, the introduction of SOLAS Performance Standard for Protective Coatings for dedicated
seawater ballast tanks in all types of ships and double-side skin spaces of bulk carriers was made mandatory in December 2006. The introduction of this standard has helped to
increase the service life of coatings and ultimately provide crew and vessel safety.

Customized Solution Can Provide Better Decision Support

Product quality is a vital criterion for marine coatings manufacturers, but shipbuilding owners are increasingly resorting to coating suppliers for solutions to enhance their business.
For instance, some customers prefer to outsource the management to any specific marine coating manufacturer, for a fixed cost. By leveraging digital tools, sensor technologies
and data analytics, a marine coating manufacturer can quantify results, customize services and provide better decision support. While uncertainty in the new shipbuilding market is
likely to continue to impact sales for the short term, experts expect positive growth in the marine industry for the long term, and thereby, the marine coatings market.
New technologies and concepts such as big data, cloud computing, mobile computing or self-steering processes and services are
more and more penetrating the areas of social life and are becoming increasingly important in economic processes. This results in
the fourth industrial revolution linked to the term industry 4.0 (Broy, 2010Broy, M. (2010). Cyber-physical systems –
Wissenschaftliche Herausforderungen bei der Entwicklung [Cyber-physical systems – Innovation durch software-intensive
eingebettete systeme] (p. 17 ff). (M. Broy, Hrsg.). Berlin Heidelberg: Springer. [Google Scholar], p. 17 ff). Industry 4.0 focuses on
the linking of industrial processes and technologies, as well as the related business processes with the new information and
communication technologies (ICT) (Keller, Pütz, & Siml, 2012Keller, M., Pütz, S., & Siml, J. (2012). Internet der Dinge (pp. 118–122).
(A. Mehler-Bicher & L. Steiger, Hrsg.), Trends in der IT, Fachhochschule Mainz. [Google Scholar]). As in industry, the maritime
sector also provides artificial intelligence to the digitized objects by means of programmability, storage capacity, sensors, and
networking, which will allow an increase in the efficiency of ship operation (Bosse & Schwientek, 2011Jahn, C., Bosse, C.,
& Schwientek, A. (2011). Relevanz von Informations- und Kommunikationslösungen. Seeschifffahrt 2020 – Aktuelle Trends und
Entwicklungen, Fraunhofer-Center für maritime Logistik und Dienstleistungen CML, Stuttgart: Fraunhofer. [Google Scholar]). With
AIS-log files, weather data, and fuel-sampling data, large data sources are available to the shipping industry, which can be
processed using big data analyses and compared with other companies. In the field of maritime logistics, multimodal transport
processes in the ports require an optimal networking of the individual actors who coordinate their activities in the transport chain
in order to optimize traffic and goods flows (Berg & Hauer, 2015Berg, D., & Hauer, M. (2015, September). Digitalisation in shipping
and logistics. Asia Insurance Review, 52. Retrieved September 10, 2017, fromhttps://www.munichre.com/topics-
online/en/2015/09/digitalisation-shipping-logistics [Google Scholar]). With the use of Big Data and digital transformation, the fleet
controls can be optimized, whereby costs are reduced and the environmental protection is improved. Traffic control and traffic
flows can be optimized by using the ship’s operating data, thereby avoiding critical situations and thus reducing the risk of
accidents. All ship data, e.g. machine, aggregate, weather and cargo data, are transmitted to the onshore management in real time,
who can, if necessary, enter into a direct dialog with the ship’s management (Arndt, 2016Arndt, E. H. (2016). Fleet support center
ist Riesenschritt. THB Deutsche Schifffahrts-Zeitung. Retrieved August 16, 2016, fromhttp://www.thb.info/rubriken/single-
view/news/fleet-support-center-ist-riesenschritt.html [Google Scholar]). The current digital transformation is also regarded
critically. Technology and information ethics ask for the gain and loss of personal and informational autonomy and the
dependency of the customers on information technology and information companies. Moral and ethical problems arise, especially
in the field of technology, information and economic ethics (Bendel, 2015Bendel, O. (2015). Die Industrie 4.0 aus ethischer
Sicht. HMD Praxis der Wirtschaftsinformatik, 52(5), 739–748. doi:10.1365/s40702-015-0163-z[Crossref] , [Google Scholar]). The
digital transformation of maritime logistics is successful if the topics of data protection and data security are given a central role in
the implementation strategy. The handling with digital applications and technologies does not only require competent users who
are familiar with the digital innovations, but also secure systems that guarantee the protection of the company’s internal
infrastructure and operating systems from cyberattacks (Schweer & Sahl, 2016Schweer, D., & Sahl, J. C. (2016). Das Netz benötigt
Vertrauen und Sicherheit. In F. Abolhassan (Ed.), Was treibt die Digitalisierung? Warum an der Cloud kein Weg vorbei
führt (pp. 42–44). Wiesbaden: Springer. [Google Scholar]).

4.2. Discussion

The results indicate that research in the digitization of maritime logistics is still in its initial stages. Our wide-ranging search revealed only a
small number of scientific literature and shows that digitization in the maritime logistics chain is currently being addressed and considered
rather in practical than scientific literature. With regard to our research questions, we come to the following conclusion: Digitization has
already reached in maritime logistics in some areas and its potential to change the maritime industry is huge. Automation and digitalization
are progressing and have changed processes in ship operation and in port handling. Smart container technologies (RFID) and real-time
tracking of cargo, for example, increase the transparency on the transport route from the sender to the recipient. Shipping companies are
already in a position to operate their own tracking apps in the near future, where the location of the container can be determined by means of
a GPS signal (Brandt, 2017Brandt, C. (2017). Neuausrichtung nimmt Fahrt auf – Deutsche Reeder nehmen neue Geschäftsfelder in den
Blick. PricewaterhouseCoopers (PwC) Reederstudie 2017. Retrieved October 15, 2017, fromhttps://www.pwc-
wissen.de/pwc/de/shop//Neuausrichtung+nimmt+Fahrt+auf/?card=23377 [Google Scholar]). By using modern sensor chip technologies, a
large number of data are already recorded at sea and analyzed onshore, which allows the optimization of process flows on board as well as
in the handling in ports. Further, it reduces waiting times and costs (De Jong, 2016De Jong, N. (2016). Automatisierung an der
Kaikante. DVZ – Deutsche Verkehrs-Zeitung. Retrieved October 13, 2017, fromhttp://www.dvz.de/rubriken/seefracht/single-
view/nachricht/automatisierung-an-der-kaikante.html [Google Scholar]). The focus of the identified papers is on the optimization of ship
operation and terminal transshipment procedures by means of GPS, ICT as well as closely networked stakeholders. However, the areas of
sustainability, emissions reduction, use of alternative fuels, as well as the risks of cyberattacks find little consideration in the identified
literature. A growing volume of data in the area of the optimization of maritime traffic, port handling operations, and smart container
technologies (e.g. RFID and sensor technologies) is expected.

Digital technologies will ensure shorter waiting times for ships and faster processing at the terminal. Besides, ship crews will be able to adapt
their navigation using real-time updates to weather, wind, and ocean currents, which involves reduced energy consumptions (Lee et
al., 2016Lee, S. Y., Tongzon, J. L., & Kim, Y. (2016). Port e-Transformation, custuomer satisfaction and competitiveness. Maritime Policy &
Management, 42(5), 630–645. doi:10.1080/03088839.2015.1105394[Taylor & Francis Online] , [Google Scholar]). In view of the MARPOL44.
Marine Pollution—International Convention for the Prevention of Marine Pollution from Ships.View all notes guidelines on climate protection
and stricter environmental requirements, the shipping companies will have to equip their fleets with more environmentally friendly marine
propulsion systems in order to be able to use alternative fuels such as liquefied petroleum gas (LNG) in the future
(Brandt, 2016Brandt, C. (2016). Digitalisierung der Schifffahrt – Chancen und Herausforderungen für deutsche
Reeder. PricewaterhouseCoopers (PwC) Reederstudie 2016. Retrieved September 27, 2016, fromhttps://www.pwc-
wissen.de/pwc/de/shop/publikationen/Digitalisierung+der+Schifffahrt/?card=19643 [Google Scholar]). Although the emissions in ports are
already being slightly reduced by the use of marine diesel instead of heavy oil, CO2, nitrogen oxides, particulate matter and sulfur oxides are
the main sources of the environmental pollution. To reduce such pollution, electric energy could be fed into the ship’s network from onshore,
which would require appropriate connections and converters (Winkel, Weddige, Johnsen, Hoen, &
Papaefthimiou, 2016Winkel, R., Weddige, U., Johnsen, D., Hoen, V., & Papaefthimiou, S. (2016, January). Shore side electricity in Europe:
Potential and environmental benefits. Energy Policy, 88, 584–593. doi:10.1016/j.enpol.2015.07.013[Crossref], [Web of Science ®] , [Google
Scholar]). Thanks to the digitization, it is further already technically possible to monitor the system ship from a central station onshore. In the
future, the technical know-how will be needed rather onshore than on board of the ships (Binder, 2016cBinder, F. (2016c). Schifffahrt im
digitalen Umbruch. THB Deutsche Schifffahrts-Zeitung. Retrieved November 25, 2016, fromhttp://www.thb.info/rubriken/single-
view/news/schifffahrt-im-digitalen-umbruch.html [Google Scholar]).

The digitalization in the maritime logistics sector offers a multitude of opportunities and challenges. For example, companies could take
advantage of the digital transformation and position themselves on the market with applicable products, services or innovative business
models (Brandt, 2017Brandt, C. (2017). Neuausrichtung nimmt Fahrt auf – Deutsche Reeder nehmen neue Geschäftsfelder in den
Blick. PricewaterhouseCoopers (PwC) Reederstudie 2017. Retrieved October 15, 2017, fromhttps://www.pwc-
wissen.de/pwc/de/shop//Neuausrichtung+nimmt+Fahrt+auf/?card=23377 [Google Scholar]). On the whole, one can safely assume that there
will be fundamental changes in ship operation and ICT. The shipping companies are assuming that, as a result of digitization, companies
such as Google and Amazon will support the digital conversion of the shipping industry through technical services and will have to confront
an increasing number of new competitors. Given this dramatically changing performance spectrum, also the shipping companies are forced
to increasingly assume new tasks in order to remain competitive (Brandt, 2016Brandt, C. (2016). Digitalisierung der Schifffahrt – Chancen
und Herausforderungen für deutsche Reeder. PricewaterhouseCoopers (PwC) Reederstudie 2016. Retrieved September 27, 2016,
fromhttps://www.pwc-wissen.de/pwc/de/shop/publikationen/Digitalisierung+der+Schifffahrt/?card=19643 [Google Scholar]).

As in aviation, the unmanned operation of ships is also feasible in maritime shipping. Experts predict the use of autonomous feeder ships
that will transport containers on particular routes with limited reach. However, their opinions diverge as to when the first unmanned seagoing
vessel will travel over the world’s sea. On the industry side, it is assumed that the first autonomous ship will become a reality at the end of
this decade (Maluck, 2016Maluck, L. (2016). Fliegender Holländer 2.0.. Retrieved September 27, 2017, fromhttp://www.mtu-report.com/de-
de/Marine/Kommerzielle-Schiffe/Fliegender-Hollander-2-0 [Google Scholar]). According to the IT industry, however, it will still take 15 to
20 years (Kuchta, 2016Kuchta, F. (2016, January 4). Experteninterview: Die Nutzung von Big Data zur Optimierung von
Schiffsankunftszeiten und den maritimen Verkehren. Persönliches Gespräch. Informatiker und Softwareentwickler bei der Trenz AG in
Bremen. Bremen. [Google Scholar]). Given the high complexity of variables, many of them being unknown or difficult to predict (e.g. tide,
weather, terrorism, emergency situations, increasing ship traffic), it is rather unlikely that large seagoing vessels can entirely be operated
without staff (Berg & Hauer, 2015Berg, D., & Hauer, M. (2015, September). Digitalisation in shipping and logistics. Asia Insurance
Review, 52. Retrieved September 10, 2017, fromhttps://www.munichre.com/topics-online/en/2015/09/digitalisation-shipping-logistics [Google
Scholar]). And yet, the electronic on-board systems are in a position to take over a large part of the tasks and provide support so that the
crew sizes will be further reduced (Burmeister, Bruhn, Rødseth, & Porathe, 2014Burmeister, H. C., Bruhn, W., Rødseth, Ø. J.,
& Porathe, T. (2014). Autonomous unmanned merchant vessel and its contribution towards the e-Navigation implementation: The MUNIN
perspective. International Journal of e-Navigation and Maritime Economy, 1, 1–13. doi:10.1016/j.enavi.2014.12.002[Crossref] , [Google
Scholar]).

As any networked data system, ships are also an attractive target for hacker attacks. The real-time data transmission of the smart, RFID-
equipped container renders transparent the container’s position, its content, and the state of goods at all times. Likewise, it can be traced
whether the container was opened illegally or not. This transparency can indeed conceal immense dangers, such as criminal cyberattacks or
unintentional data leaks (Berg & Hauer, 2015Berg, D., & Hauer, M. (2015, September). Digitalisation in shipping and logistics. Asia Insurance
Review, 52. Retrieved September 10, 2017, fromhttps://www.munichre.com/topics-online/en/2015/09/digitalisation-shipping-logistics [Google
Scholar]). The digital navigation systems of the ships could be manipulated so that they sheer off or run aground. Also a single power failure
can have far-reaching consequences in a networked and digital environment (Kuchta, 2016Kuchta, F. (2016, January 4). Experteninterview:
Die Nutzung von Big Data zur Optimierung von Schiffsankunftszeiten und den maritimen Verkehren. Persönliches Gespräch. Informatiker
und Softwareentwickler bei der Trenz AG in Bremen. Bremen. [Google Scholar]). In maritime logistics, a large number of mostly international
stakeholders are involved in transport processes. The increase in digitization and networking between ships, shipping companies, port
companies, offshore installations, authorities and other communication partners onshore increase the risk of cyberattacks for all stakeholders
involved. Therefore, all players in the maritime supply chain will have to ensure the best possible protection in order to ward off cyberattacks,
which has to be ensured by consequently investing in the future development as well as expansion of IT security systems
(Segercrantz, 2016aSegercrantz, H. (2016a). Cyber security in shipping & offshore ops. Maritime Reporter and Engineering News, 78(1).
Retrieved October 13, 2017, fromhttp://magazines.marinelink.com/Magazines/MaritimeReporter/201601/content/security-shipping-offshore-
504422 [Google Scholar]).

Due to the resulting logistics processes, the information requirements and the requirements for the logistical planning and control processes
are high. As a result, protected and effective ICT gain in importance in maritime logistics as they contribute to increasing safety and
effectiveness in maritime transport and port management (Jahn, Bosse, & Schwientek, 2011Jahn, C., Bosse, C.,
& Schwientek, A. (2011). Relevanz von Informations- und Kommunikationslösungen. Seeschifffahrt 2020 – Aktuelle Trends und
Entwicklungen, Fraunhofer-Center für maritime Logistik und Dienstleistungen CML, Stuttgart: Fraunhofer. [Google Scholar]). The results of
the literature analysis indicate that the digitization of maritime logistics is still at the beginning of its development. So far, only sub areas have
been investigated which hardly provide a basis for developing well-founded recommendations for the maritime logistics. For this reason, the
authors propose recommendations for action that are structured in the PESTEL matrix (Kaplan & Norton, 2008Kaplan, R. S., & Norton, D.
P. (2008). The executive premium: Linking strategy to operations for competitive advantage. Boston, MA: Harvard Business Review
Press. [Google Scholar]) summarized in Table 4 in six dimensions (political, economic, social, technological, ecological and legal).
MARITIME INDUSTRY IN THE DECADE OF DIGITAL TRANSFORMATION CHALLENGES AND OPPORTUNITIES –
SINGAPORE’S JOURNEY TOWARDS DIGITALIZATION IN 2018

The rapidly developing digital technologies are embarking on a significant transformation of the Shipping Industry across

the globe. The implementation of Digitalization, the innovative cyber security systems and technological solutions, autonomous mobility and artificial intelligence has helped in

transforming the developments in the shipping industry. With the inputs of accurate, updated and secure data insights, delivered on time, the achievement of a more strategic and

cost effective productivity along with maximum performance is possible. The ability to centralize the decentralized digital transformation on a digital platform creates a great

potential for organizing markets efficiently. The exchange data and digital platforms enables the companies to have a control of and also organize the logistic chains delivered on

time, by reducing the waiting period and predicting the arriving time of the vessels accurately, thus opening up the possibility of unmanned ships in future.

The world’s first crewless cargo ship will be delivered in 2018 under the name and fame of Yara Birkeland and the operations is assumed to commence in 2020. These Unmanned

Ships are also referred to as “Unmanned Sea Surface Crafts” and these vessels are either remote controlled by shore- based controllers/officers, or controlled completely by

complex algorithms with no human existence or a combination of the above mentioned two. The challenges that will be faced by these are guidelines and legal regulations to be

followed in case of any violations, or maritime incidents involving any damage to the vessel, the cargo, human life, environment and property. The existing legal framework is that

of the UNCLOS82 regulations by the International Maritime Organization. The present legal system and maritime regulations are designed for manned vessels so this will make it

a difficult task for the legislators and jurists to decide upon the best and effective legal resolution in case of a violation or dispute. Therefore many countries are already considering

amendments or integrations in the existing regulations and also drafting of fresh shipping guidelines and laws.

Digitalization has brought in many

challenges as well as opportunities. According to the IMO over 90% of the world’s trade is carried out by sea as this is the most cost-effective way to move goods and raw

materials across the world. One of the important factors is that it reduces cost and increases efficiency. The data inputs and interconnected technologies are emerging to create a

revolution in the maritime industry. Systems like Radio Frequency Identification System (RFID) are used to track the movement of the vehicles cargo and people, and ensure

timely delivery of cargo. GPS navigation system, automated electronic data exchange from ship to ship and ship to shore increases the efficiency, safety and accuracy in navigation

and communications.

There are many challenges to overcome, and one of them is that of marine liability. The Question of liability is considered to be more complex as the vessel travel through different

national waters and of different jurisdictions. The insurance industry will also face similar challenges in resolving disputes and also the difficulty to analyze the resources to risk

management as well as to understand loss occurred. Thus, it becomes a necessity to ensure maximum data security for preventing a risk or loss. Cyber attacks on unmanned ships

also can be problematic as container vessels reliant on digital navigation systems could be potentially manipulated and a small failure in a system can result in dangerous

consequences in an interconnected digital environment. The networking of vessels and ports is an enormous opportunity for shipping. This also helps in reducing the ongoing over

capacity paired with a relatively soft global demand, and the existing pressure on the rates and profit margins of the industry.

At the beginning of the year, industries announce trends in their respective domains. Manufacturers
publicise major products that will be available in the market; car-makers showcase new models that will
be launched during the year; manufacturers of smart phones and mobile devices provide teasers of new
models; and digital developers proclaim cutting edge or futuristic software.
Although not as exciting as the above, the maritime industry predicts its annual shipping and cargo
outlook, shipbuilding trends, and port infrastructure developments.
However, this is about to change given that the maritime industry is under rapid technological
transformation. It is now characterised by increased use of digital systems, smart sensors, networks for
data transfer among stakeholders, unmanned and remote controlled systems/devices. These are led by a
number of disruptive technologies such as artificial intelligence, virtual and augmented reality, and deep
machine learning. There are at least four digital technologies related to the maritime domain that could
make headlines in 2018.
First, digital twinning, which is being referred to as the fourth industrial revolution or Industry 4.0 that
offers a new way to design and undertake maintenance during the full life cycle of a product. In this
process, a physical asset is digitally mapped and continuously monitored using data from sensors fitted in
the equipment and seen on the ‘digital twin’ offshore to obtain real-time performance reports. This
facilitates analyses and helps predict breakdowns before the equipment fails, and enables remedial
measures through replacements and repair, thereby enhancing operational efficiency. For instance, at the
global quality assurance company DNV GL, 'digital twins' are connected to control system software on
ships and offshore units, and help in monitoring machinery, equipment and systems on these platforms.
The company claims that it has successfully "twinned" over 150 vessels and the "technology can easily be
adapted to any ship or asset type." According to a study, up to 85 per cent of Internet of things (IoT)
platforms will contain some form of digital twinning by 2020.
Second, the exponential growth in usage of cloud computing. The shipping industry, including supply
chain managers, were initially hesitant but have slowly started using cloud computing services to securely
store data, which allows industry executives to understand and address market and operational risks
effectively. For instance, the United Arab Shipping Co. started using a cloud-based fuel management
system to meet the fuel needs of its fleet of 70 vessels. This saved the company bunker fuel costs by 3 to
5 per cent by using real-time pricing data, ship location, and other related information.
The writer is an expert on international maritime disputes

Similarly, cloud-based management helps in monitoring the progress of a shipbuilding project. The
owners can watch over the construction of a ship and exchange "comments and replies" by simply using a
single drawing of the ship which could be over gigabytes of data, and cloud computing can handle
thousands of such drawings.
At the operational level, cloud computing is being put to use in autonomous ships that use enormous
amounts of data from numerous sources including on-board systems such as the Automatic Identification
System (AIS) and radar. For instance, Rolls-Royce is partnering with Google for its Cloud Machine
Learning Engine to train Rolls-Royce's AI-based object classification system. This software can detect,
identify and track objects that a vessel may run into at sea.
The third technology is the ‘Chatbot’. With rapid advancement in digital technologies it has become easy
for companies to interact with customers and shoppers through messaging applications. However, it is
now time to say 'goodbye, apps' and instead use ‘hello, bots’, despite the fact that Facebook’s Messenger
already has 900 million users and WhatsApp has one billion users.
Chatbot is a conversation tool and is built on “machine learning and evolutionary algorithms" that
facilitate interactions with humans. AI whizzes are developing Chatbots that can closely replicate general
human conversations. Google is developing a speech synthesis programme that will be able to "generate
human-like speech and even its own music compositions." Chatbots work as virtual assistants and are
capable of accessing data and answering questions, which can support maritime operations. It is useful to
mention that Chatbots can soon become "pervasive in day-to-day company-to-customer and online
communications" and explode in popularity.
Fourth, blockchain technology used in cryptocurrency such as Bitcoin has found application in the
maritime domain. One of the early users of blockchain technology is the marine insurance sector which
confronts a number of challenges in terms of transparency of goods being transported, regulatory
compliance of the shipment, etc. These affect the business of marine insurers, shipping companies, and
law enforcement agencies alike. The latter must verify the legitimacy of the goods being transported,
truthfulness of bills of lading, cargo manifests, and port documents. Distributed ledger, the technology
behind blockchain, will ensure transparency across an interconnected network of clients, brokers, insurers
and other third parties.
Finally, technology has historically been in a state of continuous mutability and some technology trends
can be transitory and easily become obsolescent and forgotten. However, the ongoing digital
transformation, unlike any other technological revolution, is highly disruptive and is preordained to
dominate the maritime industry for many decades into the future.

]
The concept of a digital twin in shipbuilding is about making a digital copy of a real ship to help optimize the design, maintenance,

production and sustainability of a physical ship. This digital platform will aid in the development of new vessels for which the exact digital

replicas will be updated throughout the lifecycle of the ships.

Even though this concept has been around for a few years, digital twin innovation is being talked about more frequently today. The benefits of such a model will be
enormous for the marine industry from the designing stage to testing, delivery and operation of ships.
At Ship Tech Forum 2019, this topic will be discussed in a panel session entitled, “You’re Having Twins!” The panel will consist of marine industry innovators from
Newfoundland, who will share their early ideas on the digital twin innovation and build the case that if this is done right, it will bring value to Canada and usher in
a new era of ship management.
Gina Pecore, CEO, Genoa Design International will lead this panel as the moderator and attendees will hear from Capt Christopher Hearn, Director, Centre for
Marine Simulation, Marine Institute of Memorial University; Capt Anthony Patterson, President & CEO, Virtual Marine Technology Inc.; and Russ Baker, Co-
founder and Vice President of Business Development, Avalon Holographics.

IMO continues to contribute to the global fight against

climate change, in support of the UN Sustainable
Development Goal 13, to take urgent action to combat
climate change and its impacts.

IMO has adopted mandatory measures to reduce emissions of greenhouse gases from international shipping, under IMO’s pollution prevention treaty (MARPOL) –
the Energy Efficiency Design Index (EEDI) mandatory for new ships, and the Ship Energy Efficiency Management Plan (SEEMP).

In 2018, IMO adopted an initial IMO strategy on the reduction of GHG emissions from ships, setting out a vision that confirms IMO’s commitment to reducing GHG
emissions from international shipping and phasing them out as soon as possible.

MO is also executing global technical cooperation projects to support the capacity of States, particularly developing States to implement and support energy
efficiency in the shipping sector.

Below you will find some frequently asked questions about IMO’s work to reduce GHG emissions from shipping.
 How to Improve Shipyard Operations
Increasing threats around the world necessitate a greater military footprint. For shipbuilders, this means an increasing demand to build ships faster to meet the demand for new and
upgraded vessels, as well as to upgrade existing ships faster to incorporate the latest defense and automation technologies.

How Can Shipyard Operations Meet Increasing Demand

One asset that shipbuilders can leverage is information technology, which continues to advance at an astonishing rate. Specifically, shipyards can benefit from adopting new
information systems that connect equipment, people and processes in new ways for increased efficiencies manufacturing, sustainment, and overhaul operations.

How Software Can Help Shipbuilders Overcome Bottlenecks

To keep up with growing demand while delivering projects on time and on budget, shipyard processes need to be streamlined and bottlenecks minimized by reducing redundancies
and moving from sequential paper-based steps to automated parallel ones. For example, work teams can be empowered and made more efficient through better guidance delivered
in interactive work instructions. This can improve engagement, performance, and motivation while supporting workforce adoption of (and the cultural orientation towards)
technology adoption.

While such initiatives have fast ROI and help meet the goals of efficient response to growing and volatile demand, there are a number of factors that act to constrain their adoption,
including:

 Programs with very long lifetimes

 Complex and strict regulation of procedures

 Complex, fragmented supply chains

 A traditional culture resistant to change

SOPs Can Prevent Growth

Activities in most shipyards are set by standard operating procedures (SOPs). SOPs cover everything and evolve very slowly, that slow pace is also a significant barrier to keeping
pace with technology. The fact is, in a culture where “If it ain’t broke, don’t fix it” is a commonly heard mantra, what’s needed is a new one: “Fix it, even if it doesn’t seem
broken.”

Moving Towards Digital Transformation

Shipyards need to modernize practices and leverage digital technologies to take operations to new levels of productivity. The convergence of technologies enabled by the
new model-based enterprise (MBE) philosophy leverage engineering 3D models throughout Maintenance, Repair, and Overhaul (MRO) (sustainment) processes. In this new
digital environment, shipyards can take advantage of emerging technologies such as connected product and equipment, optimized 3D illustrated work packages, inspection drones,
augmented reality, and improved intelligence to create a new IT platform and reach new levels of productivity.

Key among these enabling technologies:

 Embedded Sensor and Diagnostic Connectivity: Thanks to affordable connection-enabled sensors, and powerful data processing systems, shipyards can start making processes

smarter and leaner by performing maintenance when and where it is really needed, based on usage and diagnostics instead of a fixed arbitrary schedule.

 Digital Thread: This is the communication framework that allows a connected data flow and integrated view of the asset’s data throughout its lifecycle across traditionally siloed

functional perspectives. The digital thread concept raises the bar for delivering “the right information to the right place at the right time.”

 Augmented Reality: Work instructions are taken to the next level when advanced guidance is provided through augmented reality (AR) layers, 3D images, and virtual objects on

top of the real-world view through mobile tools such as smart glasses or hand-held tablet computers.

Implementation and integration of these new digital tools requires committed support, including C-level and managerial backing of innovative processes, disciplined change
management, an investment in workforce training, and development for new skillsets and processes.

By creating a digital thread for change management, iBASEt’s Solumina goes beyond the provision of technical work documents to facilitate transformation through
a collaborative workflow that links processes across the shipbuilding organization.

Partnership will develop engine room and operations solutions for digital twins

Busan, June 17, 2019 – DSME, Korea Maritime and Ocean University, NAPA and AVL have announced a strategic co-operation agreement to develop digital
ships and related strategic solutions. The agreement will combine the four parties’ expertise in naval architecture and shipbuilding, engines, big data, and software
development to pioneer new solutions that combine all of these elements for the first time.
The collaboration will cover all aspects of creating comprehensive digital twins: from the acquisition and processing of quality engine room data, ship performance
and meteorological data to the training, simulation and human machine interface that will be necessary to turn insights from engine data into practical efficiencies.

Mr. Odin Kwon, CTO of DSME said, “The development of digital twin ship and engine is one of the most exciting outcomes of the recent surge in maritime
digitalization and development of the Internet of Things. By creating a virtual, real-time copy of engine equipment, we can better monitor, analyze, and predict
performance, leading to safer and more efficient operations. Here, the best experts in each field gathered in order to develop digital twin ship. so we are confident
that we can create and service superior product that exceed our customers’ expectations.”

“Digital twins bring together a range of different fields of expertise, requiring hardware, software and operations to work together. This is why collaboration is
essential if this technology is to mature. This partnership represents shipping’s best minds in shipbuilding, engines, ship operations, and software. We’re excited to
work together to develop digital twin technology and a platform that will make future generations of ships safer and smarter.”

Professor Deog Hee Doh from KMOU commented, “We are actively entering into digital era in the industry nowadays which could be a basis for the development
of autonomous ship. Building a digital platform should be well balanced between actual application of technology and academic basis. We are happy to be part of
this cooperation.”

KMOU faculty members have already started developing a platform in which AR/VR and digital twin technology are embedded. KMOU will focus on providing
knowledge based platform in the fields of simulations and communications related to digital ships extending to AR/VR. KMOU has strong competiveness in
developing digital twins, because KMOU has its own training ships where world leading expert and faculty members are on board, and by conducting collaborative
practical research works and testing with them for practical validations on the developed prototype digital twin ship.”

Mr. Naoki Mizutani, Executive Vice President, Shipping Solutions at NAPA commented, “New generations of vessels will set the standard for decades to
come, and digital infrastructure will be just as important as the physical and mechanical elements of a newbuild. Bringing together ship builders, engine
manufacturers and software experts is the ideal way to ensure that high quality digital infrastructure is embedded in the shipbuilding process from the very
beginning, and adds value throughout the lifecycle of a vessel.”

Each partner brings a different angle to the collaboration, co-ordinated by DSME. NAPA, as the leading expert in maritime software and big data, will develop
digital twin ship models with digitalized components and a real-time simulation platform to integrate between engine models and ship models.

Meanwhile, as the world’s largest independent company for the development, simulation and testing technology of powertrains and propulsion systems, AVL will
develop the simulation tools and methodologies that the partnership projects will require.

KMOU, as a world-leading maritime institute in the field of maritime studies, transport science and engineering, will contribute by providing the existing
infrastructure as a basis for further development and optimization.

Digitalization on the way for shipping: Are we ready?

Do you think the entire shipping industry will be completely digitalized by 2025? is the question posed by SAFETY4SEA, in
our latest online poll in which the majority of our readers (63%) answered negatively, although the industry has recently
witnessed a number of innovative and disruptive technologies.

SMART | 27/05/19

Big Data and ECDIS were the technologies that began the digitalization transformation and now autonomous shipping will define industry’s future. In this article,

we take a look at where we stand with respect to autonomous operations and digitalization of shipping while we address key challenges that the industry needs to

tackle accordingly.

Regulation lags behind?

Current international shipping law requires ocean-going vessels to be properly crewed, so fully autonomous, unmanned ships aren't allowed in international

waters. However, since 2017, the international shipping regulator has been considering changing the International Convention for the Safety of Life at Sea

(SOLAS) to allow ships with no captain or crew to operate.

Besides, the recent IMO MSC 100 approved the framework and methodology for the regulatory scoping exercise on Maritime Autonomous Surface Ships (MASS).

Provisional principles for the development of guidelines on MASS trials, are being discussed such as:

- ensuring that such guidelines should be generic and goal-based

- taking a precautionary approach to ensuring the safe, secure and environmentally sound operation of MASS.
 Interested parties will submit proposals to the next session of the Committee, taking into account the above mentioned principles.

Where we stand

We read recently that the 12-meter-long autonomous ship 'Maxlimer' is set to set sail from Canada in an attempt of the world’s first transatlantic voyage without a

crew.

Unmanned ships are presently used predominantly by the marine scientific research communities and/or the defence field with today’s unmanned ships being

comparatively modest in size, rarely extending beyond 15-20m in length.

Of course containers carriers and passenger liners continue innovating in order to keep up with the increasing expectations from end users, charterers, regulators

and society at large by making the best use of:

 sensors

 data analysis

 advances in satellite communications

 advances in antenna technology

 digitalization of information flows

 automation of existing processes and functions

The fltet of the future will continually communicate with its managers and perhaps even with a “traffic control” system that is monitoring vessel positions,

manoeuvres and speeds, according to Remi Eriksen, Group President and CEO DNV GL

Indeed, data sharing is happening, however the emerging challenges are not providing the right contexts for entire shipping to be digitalized.

Digitalization of shipping: 4 Key Challenges

1. Fear of the unknown

Adapting innovative and disruptive technology brings the so-called fear of the unknown with respect to the risks ahead. Besides, a lot of people argue that risk in

shipping will remain the same with the only difference being that the risk of human error is transferred onshore to a remote control centre.
2. Trust

Trust, here, takes two different forms: Seafarers trust to autonomy and; trust to information sharing on platforms as it affects the transactions’ transparency. Of

course trust is not gained overnight and in this regard, crew training is necessary. As far as it concerns transparency, smart technologies are already facilitating

industry’s operations. The opportunities to harness digital technologies to enable more sustainable shipping are everywhere only if stakeholders encourage and

support innovations that allow transparency. For example, blockchain has become the new mainstream in all businesses and maritime sector as well, brining much

visibility and efficiency into shipping and logistics.

3. Crew training
 Combining maritime and digital skills is the way to go. Automation doesn’t mean unmanned; on-hand skills are still necessary. However, only with a combination of

new skills, seafarers will continuously build their competence on technical and commercial capabilities within the digital sphere. The whole industry is now called to

ensure the appropriate level of training. Therefore, competent and highly skilled seafarers are needed to monitor and guide vessels using AI or the machine

learning. Although ship operators are aiming to remove crew completely from the ships and save operational expenses, they will still be in need of remote crew.
4. Cyber Threat

A completely digitalized shipping means great reliance on IT, software and communications systems which, of course, elevate cyber risk; from modernized hulls to

electrical systems onboard, including sensors and networks to monitor performance and enable proactive maintenance. The same sensors however could let

cyber attacker to disable or gain control of steerage or propulsion.

“We should not become completely reliable on technology, since the threat of cyber incidents and attacks is real,” Ralf Nagel, Chief Executive Officer, German

Shipowners' Association has stated in our SeaSense Column.

Above all, the major challenge for the shipping industry towards digitalization would be the right mindset. Since, several stakeholders are still stuck in their

traditional way of doing things, changing perspective is vital for adopting to new reality and accelerating in the digital sphere.

Digital twins revolutionize shipbuilding

The technology has the potential to modernize and optimize shipbuilding, or really, any complex, manually intensive business involving highly specialized systems
that require ongoing inspections and maintenance. Think of just about any manufacturing business, as well as those in the metals, mining and utilities industries,
and digital twin technology could have a transformative impact.

When it comes to building a submarine or a ship, two types of digital twins can be created: a prototype twin and an operational twin. Each provides slightly
different benefits, but both are equally valuable in de-risking and shortening the timeline of a ship build.

The prototype twin involves using digital twin technologies to design, simulate and optimize the build of a physical system before it is physically built. The
operational twin replicates an existing physical system (physical twin) with a digital version. Data captured by the physical twin can duplicate events seen in the
digital twin.

Let’s take a closer look at each to understand how shipbuilding organizations can use digital twin technologies to solve real-world industry challenges.

The digital prototype

Some would suggest that the prototype twin is just an extension or a compilation of digital design. Although there is some truth to that — the prototype twin aims
to glue together all the 3D designs of a platform, for example — there is also much, much more to the technology. A prototype twin at the scale of an engine can
provide some very valuable data. That data can help predict vital metrics, such as mean time between failures, based on sub-assembly failure rates and failure
dynamics.

For example, an existing physical jet engine combustor being considered for inclusion in a prototype jet engine will have specific failure data. This data might
suggest that the combustor has a mean time between failure of 68,735 hours. The data collected from failed combustors might also define failure dynamics, such
as the most probable location of material degradation leading to failure. This behavioral data can be tagged to different parts of the engine’s prototype twin and
then used to simulate a failure. Next, artificial intelligence (AI) can be used on the prototype twin to determine the predicted outcome from the failure of that
combustor.

Figure 1 shows AI’s prediction that 1 minute and 16 seconds after the combustor has failed, the temperature on the outside of the turbine has increased from 164
degrees Celsius to 456 degrees — leading to catastrophic failure. Results from this engine simulation might, for example, lead to the installation of thicker
combustor insulation to delay the heat increase so that the engine can be safely shut down.
Figure 1. With AI, a prototype twin can predict possible outcomes in an engine simulation

A prototype twin is not just a collection of 2D and 3D models. It also can provide the ability to overlay vital statistical and behavioral data to simulate functionality.
It can act as though it is the real physical thing, but it has the advantage of being able to simulate scenarios that would be far too dangerous to simulate on a
physical system or platform.

It is easy to see how significant value in the design phase of a system such as an engine can be delivered using a digital prototype. Now think about that
value applied to the scale of a ship. Think about the potential of simulating all the different scenarios that can happen aboard a ship. The potential to avoid rework
is enormous. Instead of your learning about design mistakes after the ship has been built, the prototype twin can discover those flaws long before the first piece of
metal is cut.

Building safety into a ship at the start

Discovering design flaws and simulating various scenarios early on is crucial, especially when it comes to safety. Consider how a prototype twin can be applied for
fire retardation and suppression. In 1998 the HMAS Westralia caught fire, taking the lives of four Australian Naval personnel. That tragedy was caused by the use
of improper fuel line hosing that burst, spraying fuel onto hot surfaces and igniting a large section of the engine room. And although a prototype twin could not
have helped avoid the improper use of parts, it could have helped with fire simulation had the technology been developed when the Westralia was designed.

Through the use of a digital prototype and the cognitive power of AI, the subsequent spread of fire from an ignition — as happened on the Westralia — can be
predicted. Such simulation is not just based on the physical layout of the ship but also on a number of other factors such as compartment materials, flammable
substances, ventilation, installed fire-suppression systems and so forth. Physical and behavioral attributes are tagged to the twin, so the AI layer can determine
factors such as how long it will take to burn through different materials.

Figure 2 illustrates the following: The simulation has determined there are eight walls vulnerable to fire that should be better insulated. It has also determined that
four zones are not protected by fire suppression (sprinklers), which should also be addressed.
3D digital twin views can also provide significant value by visually representing the potential impact of heat within a ship. The simulation can also show a color-
coded view inside a ship compartment and represents in red anything that has potential to get hot. This can give a valuable visual on two things: first, a view on
where insulation might need to be added, and second, a view on how heating in a ship might affect the crew’s health and safety.

While we’ve discussed a couple of examples of how a digital twin can help in the design/prototyping phase of a ship build, there are so many other
valuable applications of a digital twin in this phase. You could add even more experiences with augmented reality (AR) and virtual reality (VR), for instance. It all
comes down to imagination.
Example 1. Ship Wi-Fi modeling with the ability to increase and decrease coverage to control cost

It’s clear that a prototype twin can accelerate the design phase of a ship build by dramatically reducing rework and manual simulations. The operational
digital twin, however, has the potential to be even more valuable as simulation based on predicted data.

In this case, AI is no longer required, because sensors can capture actual, working data from the physical twin. The entire digital twin can be lit up with
information that’s collected from thousands of sensors aboard a ship. This can create a 3D dashboard of information, identifying a vast number of events,
interactions and issues happening on board the vessel in real time.

To take it up another notch, one could put on a VR headset and walk around the digital twin of a vessel to view the events, interactions and issues (virtually)
exactly as they are happening in the physical world. That is extremely powerful, as it can provide visual and dimensional context to a mechanical issue.

If we wanted to simplify this, we could just provide collected sensor data in the form of a dashboard on a PC. An individual could then drill down through
sensor information from a web application. To expedite root cause analysis, we could overlay that sensor data onto the digital twin and, through the use of VR,
provide a view that has the added benefit of visual context, thus giving rise to the birth of a “virtual maintenance engineer.”

Figure 3. VR view (3D scan) of a ship compartment within the digital twin showing a real-time sensor data overlay collected from the physical twin

As shown in Figure 3, a virtual maintenance engineer can use a VR headset to navigate the digital twin and view a 3D scan of a compartment and real-time
data that’s collected from the physical twin. This can provide the engineer with visual context to understand what an issue might be; in this case, a coolant flow
issue is raising the temperature of a diesel generator. Although there would most likely be an engineer attending to the issue on the physical twin, a virtual
engineer who may have subject matter expertise could be in another location viewing the same interaction within the digital twin. Not only can the view provide
key sensor data from systems and equipment within the compartment, but also, the virtual engineer can pull in sensor data from other parts of the ship as
necessary.

Similar to a digital prototype, the use cases for a digital twin are vast. In the previous paper on how AR can be used in shipbuilding, we highlighted the use of
AR for quality inspections. To take that use case one step further, inspection data — including objective quality evidence (OQE), such as photos, videos and
inspection reports — could be attached to specific locations on a digital twin so that an individual using an AR device such as a headset could walk into a ship
compartment on the physical twin and instantly view locations of where OQE has been attached to the digital twin (seen as red dots in Figure 4). That way, the
individual can view the various OQE and results of quality inspections as they view the physical system. Dots could be turned green when the issue has been
addressed, allowing for engineers to walk around the ship fixing red dot issues and making them green. Talk about gamification!

A digital twin is so much more than a collage of pretty pictures and actually could be the most powerful asset an organization owns. However, there are challenges
to overcome to get it right. As you can see in Figure 5, there is so much valuable data that can be captured in a digital twin. Operational history alone could quickly
fill your IT department’s servers. In fact, when an F-35 flies for one hour it can produce two terabytes of flight information. That’s enough to fill the average home’s
backup drive.
The biggest challenge with a digital twin is extracting important information from the data before loading it into the digital twin. Data on its own is not all that
useful, but when data is processed, interpreted, organized, structured or presented so as to make it meaningful or useful, it becomes information. For the F-35
example, that means converting two terabytes of data into two megabytes of information. That would either mean manually looking through approximately 150
million pages of data to get the information required or using advanced technologies such as high performance computing (HPC), AI, big data and analytics to
extract it.

So how do you create and capture a digital twin? Unfortunately, the answer isn’t “buy an application and it will magically appear.” It takes time and investment,
but the return will be significant, especially when done early in the design phase. There are some tried-and-tested approaches to building digital twins, such as
DXC’s Digital Twin Runtime Starter Kit. The starter kit is more of a process than a single explicit technology, and it requires a solid understanding of what it is the
organization wants to derive from the twin, i.e., what information is required to make valuable decisions.

Gone are the days when the digital twin was just a great concept. A digital twin is now real and is providing manufacturing organizations with the ability to
reduce significant costs by minimizing rework. Unlike a lot of other technologies, it also provides value across the life of the program. The earlier it is deployed, the
more value a digital twin will provide. A conservative estimate on a $10 billion program could equate to $50 million in savings from an effectively instantiated
digital twin and a well-architected digital framework or thread. That’s a lot of peanuts and well worth a serious discussion with DXC.
How Industry 4.0 can work for the marine
and shipbuilding sectors

30 May 2019
Nico Brantjesbookmark_border
Share to: reply

The need for smarter energy strategies will make it easier to introduce Industry 4.0
technologies
The next ten years are a period of critical growth for the marine and shipbuilding sectors. Everybody is working flat-out to meet the demands
of the market. At the same time, pressure is mounting on the industry to improve energy efficiency. Emissions reductions and cost reductions
will be major drivers for Marine 4.0.

The International Maritime Organization (IMO) aims to reduce the average carbon intensity (CO2 emissions per transport work) by 40% in
2030 and 70% in 2050 compared to 2008 levels. The IMO also aims to reduce total GHG (Green House Gas) emissions from shipping by at
least 50% in 2050 compared to 2008.

Analysis of Industry 4.0 investments by experts at McKinsey points to significant potential cost reductions. Industries that invest in
digitalization could reduce their operational costs by 3.6% on average and improve efficiency by 4.1%.

McKinsey also estimates that productivity increases of 3-5% are possible through investment in the Internet of Things, smart energy
consumption, and remote monitoring and control. Predictive maintenance and virtually guided self-servicing could also reduce maintenance
costs by 10% to 40%.

The marine innovation challenge

The case for Industry 4.0 may be well established; but plans for Marine 4.0 and Shipbuilding 4.0 are less advanced. For organizations already
using high levels of automation, Industry 4.0 and digitalization of operations can be a relatively small step. In sectors where investments are
larger and their life cycles significantly longer and more challenging, it’s a different story.

Innovation in marine engineering and shipbuilding is not like other sectors. The unique challenges that face operations at sea mean there will
be significant differences. The digitalization strategies and the type of technical partnerships will be different because the barriers to adoption
are greater.

It is not just that any solution must survive the demands of a working life at sea. The opportunities for innovative solutions to enter the
product life cycle are fewer and the timescales tighter.

In some cases, when shipbuilders produce new models, they then spend several years simply replicating their initial design. The moment for
innovation is often limited to the first prototype. Stretched-for-time engineering departments often need more specialist technical support and
more collaborative partnerships with suppliers, particularly for digital solutions that are not part of the core engineering resources.

There are lessons to be learned from other sectors, however. The way building management, for example, has benefited from Industry 4.0
and IoT advances shows how small advances can have a significant impact.

Thinking small to advance

With data-gathering and networking, smart buildings can monitor costs and consumption for individual rooms. A thousand-passenger cruise
ship requires a power generation system on the order of 50 megawatts -– enough to supply a town of 50.000 inhabitants. This requires high
levels of granularity for the metering to understand the impact on the ship’s overall fuel consumption.

In merchant ships, although it is obvious that refrigerated containers cost more to ship than other containers since they draw a lot of energy,
in practice, the costs are distributed uniformly across all the containers onboard. With the right distributed metering and connectivity
onboard, a reefer ship will be able to determine its energy demands and allocate its costs more accurately. Better cargo tariffs could be
defined for different routes, charging a premium, for example, for travel near the equator where cooling costs are higher.

The focus so far has been on the bigger challenges, but attitudes are changing. In naval circles, the energy systems on board a ship are
increasingly considered to be mission-critical.
Some marine operators and shipbuilders are also looking further down the chain for Industry 4.0 opportunities in electrification and low-
voltage power. In the face of the emissions challenge, every major operator must renovate their fleet; many have decided that retrofitting
existing fleets is the best strategy.

We know the concept of smart electrical distribution based on smart devices with connectivity is an area many would like to explore more. We
believe it is a good place to start. We have retrofit solutions that make it simpler to trial and an innovation center where we work directly with
customers to quickly develop –- and validate –- solutions that are right for their vessels. For any company looking for support in Marine 4.0
electrification, our door is open.

Digitalisation of the Maritime Sector: Technical Developments and Opportunities

Regarding the digitalisation of maritime business the saying of the Roman warlord Pompeius “navigare necesse est” is still relevant today, regardless of 3D-
printing and other technologies allegedly influencing the nautical world.
Even if internet of things (IoT), digitalisation, block chain and 3D-printing are discussed as the main factors (negatively) impacting on global shipping markets, it
has to be stated that this market is still mainly driven by GDP, trade, energy demand and trade politics. The global GDP growth is still on a healthy track and 77 %
of global trade (in total: 13,2 billion tons) are seaborne. One should further know that out of this 77 % not less than 43 % is energy-related, dry and liquid bulk.
Shipping of containerized goods follows only in third place. In particular, the transportation of liquid bulk in the form of LNG is still a growing business. The increase
of trade, better rates and lower ship newbuilding prices will trigger new orders. It can be further expected that the container cargo growth will be high. In this growth
chemicals and wooden products will take the lead. Even if the container fleet is still young it can be foreseen that some 5 000 TEU + ships will be replaced in the
next few years. New regulations from the IMO and state authorities will accelerate ship removals. As the following figures show, the shipping market is of
considerable importance for the whole German economic: the turnover in the Shipping Economy amounts to approximately EUR 50 billion p. a with approximately
400.000 employees.
Considering all this it is worth having a closer look at the latest technology developments in the shipbuilding sector – often discussed under the slogan “Maritime
4.0” meaning digital transformation in the maritime sector. The development of digitalisation – as opposed to Industry 4.0 onshore – can be easily explained with
some land mark developments in the shipping industry: In 1838 with the “SS Great Western” the first purpose-built transatlantic steam ship conducted its maiden
voyage thus paving the way for the development from sail to steam ships. In a second step diesel engines were used for example on the “MS Selandia” – one of
the first ocean going motor ships. In 1969 automation found its way into the shipping industry: on the “MS Taimyr” with the first fully digital engine control system
on board. The final stage of Maritime 4.0 as part of the digital transformation is for example the use of cyber physical systems as in the port of Singapore or
unmanned vessels.
Maritime Big Data Solutions
The first example for new developments in shipbuilding technologies is the handling of so called “Big Data” on board vessels.
Under the expression big data one understands data sets that are so voluminous and complex that traditional data-processing application software is inadequate
to deal with them. The challenges in handling such big data include data storage and analysis as well as sharing and transfer.
In the maritime world big data can help to rationalize class surveys and the support from shore side of the vessel. At this point in time one has to recognize that
ship owners do collect huge amounts of data with equipment such as electronic chart display (“ECDIS”), ballast control systems, voyage and engine data logger.
All that equipment is already used on ships to achieve the optimum trim of the ship, to conduct performance monitoring, weather routing, engine monitoring and
remote maintenance, but this is only on a case to case basis and is fragmented. The current situation is that on board the vessel various data is collected with
multiple applications, however, each stake-holder like class societies, shipyards and manufacturers handle them on a ship-by-ship basis and do not combine and
make their knowledge available for the others.
In future it will be necessary and beneficial for all stake-holders that all data relating to a ship is available on a common platform with security and access control.
This will allow manufacturers of main engines, shipyards and ship owners to share their data, and thereby allowing improvement of the efficient use of the vessel.
Improvement of the energy efficiency of ships
The largest part of the energy input in form of fuel on a ship is used to overcome the hull friction i.e. for the propulsion. Further losses incur in form of heat, exhaust
gases, wave and wind and auxiliaries.
In future the ship efficiency will be improved by using big data for example to optimize the energy management system of the ship, especially taking into
consideration voyage plans, weather data, load conditions of the ship, power generation and propulsion systems. The use of more lightweight material like
aluminium and plastics can already be observed in the shipbuilding industry today. Additionally, fuel injection systems which are electronically-controlled will help
to significantly reduce the overall fuel consumption of the vessel. In this category further hybrid power generation systems have to be mentioned. Hybrid electric
ships offer the flexibility to let engines operate at variable speeds and significantly reduce noise and vibration and emissions in port and coastal areas. Driven by
the latest IMO-Regulations – requiring a reduction of NOx and SOx output of the vessels – LNG and LPG will be used as alternative fuels in ship engines.
Unmanned vessels
The last and final step in Maritime 4.0 will be unmanned vessels. The idea of unmanned vessels is not completely new in the shipbuilding industry. The
discussions in this direction have already been dragging on for decades, but it is only now that we actually have the technical means – with big data – to let this
dream come true.
In principle such vessels do not differ from “normal” ships, however, they come with much more digitalisation on board: To allow unmanned vessels they must be
equipped with a range of sensors observing the maritime environment and navigational intelligence ensuring self-navigation. Unmanned vessels for example will
need a vision based obstacle target detection and tracking system thus ensuring safe voyage of the ship. Such a system has to be combined with the radar of the
ship to support autonomous manoeuvres and all the data has to be provided on shore.
Automated technology and robotic systems are as big a part of modern shipbuilding as many other manufacturing
industries. Robots, carrying out welding, blasting, heavy lifting and other tasks, are helping to plug the labour gap at
shipyards, while sparing their human colleagues the most dangerous and thankless tasks.

Traditionally, the shipbuilding industry has relied on the labour of a large pool of skilled
workers, who faced the prospect of long hours and demanding tasks such as welding,
cutting and painting to get large vessels launched. Major shipbuilders have risen to
prominence on the backs of these workers, whether in the ageing historic shipyards of
Europe or their highly efficient rivals in South Korea, Japan and China.

But the industry’s workforce has been dwindling in the face of the global downturn and
the declining prevalence of shipbuilding in many markets.

Last year, marine recruitment expert Natalie Desty told Ship Technology that industries
like nuclear, construction and oil and gas are attracting a growing number of marine-
qualified personnel. "We are losing a lot of people who are trained for the marine sector
to other industries," she said.

Robotics: plugging the labour gap

"Geoje shipyard’s efficiency is partly down to its world-leading automation

rate."

As labour pools continue to dry up and shipyards struggle for efficiency gains in an
intensely competitive global market, shipbuilders are increasingly relying on greater
levels of automation to keep up with their order books.

It’s the same story in almost every corner of heavy industry – regardless of labour
shortages or economic austerity, employers are recognising the value of robotics as a
driver of efficiency and a method of sparing human workers from monotonous or
dangerous tasks.

And, while robots continue to help plug the labour gap in all manner of heavy industry
sectors, the rise in their use is becoming a significant job creator elsewhere. A February
2013 study by research firm Metra Martech found that the one million or so industrial
robots currently in use have created nearly three million jobs, with another million due
in the next five years.

This growth is partly driven by the rapid adoption of advanced automation technologies
in industrialising nations such as China and Brazil, and shipyards are playing a
considerable role in this trend. Shipyards in Brazil, for example, are quickly automating
to meet marine and offshore industry production demand, and to address skills
shortages of their own.
The Brazilian automation charge is being led by the Estaleiro Atlantico Sul (EAS)
shipyard, the country’s largest shipbuilding complex, which has formed a technical
partnership with South Korean giant Samsung Heavy Industries (SHI) and introduced
four automated plasma cutting machines and one of the largest flat panel production
lines in the industry, capable of producing six flat panels a day.

Geoje shipyard: the automation leader

There’s a reason EAS shipyard wanted to tap into Samsung Heavy Industries’ technical
expertise when ramping up its own automation processes. SHI is one of the world’s
most advanced and efficient shipbuilders, operating with a high level of automation to
crank out LNG carriers, FPSOs, ultra-large container ships and others.

Geoje shipyard is the company’s largest shipbuilding facility in South Korea, and boasts
the world’s highest dock turnover rate, launching around 30 ships a year. The shipyard’s
efficiency is partly down to its world-leading automation rate, with 68% of its
production processes carried out by robotic systems. Intelligent systems used at the
facility include inspection and pipe-cleaning robots, as well as units for welding, one of
the first shipbuilding operations to be automated.

Perhaps the most innovative of Geoje’s automated systems is its so-called ‘spider robot’,
which autonomously crawls over the surface of a vessel, blasting off rust and other
contaminants before it can be painted. In an interview in May, Jae-Hoon Kim, executive
vice president of SHI’s Institute of Industrial Technology and inventor of the spider
robot, explained that the robot was originally designed for welding.

"We came up with an autonomous navigating robot equipped with the 3D camera sensor
and SoC [System-on-Chip] technology. The robot itself identifies where to link and
welds automatically," Kim said. "As a result, we were able to reach the highest level of
automation in the industry at 68%, and productivity and quality innovation came
naturally with it.

"Welding the internal surface of a ship transporting liquefied natural gas – which needs
to be preserved at the temperature as low as minus 163 degrees Celsius – was the most
challenging project. The accepted range of error was as narrow as 0.5 millimetres. We
accomplished this hard task with the help of IT integration. We invented an algorithm
system which not only calculates accurately but also predicts the change in form after
the welding process. And by combining Indoor GPS to this system, a robot was born
which can move and weld accurately at the same time."

Technology transfer

As the use of robotics in shipbuilding expands and technology such as sensor systems
and artificial intelligence becomes more complex, the industry is gradually (in an
industry like shipbuilding, all change is gradual) customising automation tech to
optimise its use for shipyard operations.
"The operator only needs three to four keystrokes in order to operate the
robot."

On the most fundamental level, global collaboration and technology transfer is a major
trend for rapidly digitising shipyards, with automation experts like SHI partnering with
developing companies to broaden the use of advanced robotic systems around the
world.

Earlier this summer, US technology powerhouse General Electric (GE) announced it

would be providing a drive and automation system to Dalian shipyard in China for the
management of a new Goliath crane system, bringing a number of efficiency and energy
conservation benefits, especially with its automatic skew control system (ASCS), which
allows two 200m gantry sides to safely operate at the same time.

"GE’s technology enables two of these 600t cranes to work simultaneously, enabling the
handling of higher loads required for building larger vessels," Dalian Shipbuilding
Industry Equipment Manufacturing Company project manager Gao Guo Chun. "At the
same time, GE’s drive system technology saves significant amounts of energy. Working
together with GE helps us continually push the boundaries of shipbuilding."

The general advancement of global robotics technology is also leading to design and
interface improvements so automated systems can be safely operated with little to no
expertise, further encouraging the spread of robots to shipyards of various sizes and
levels.

Danish robotics specialist Inrotech has worked to produce a shipyard welding robot that
can perform its task 40% faster than a manual welder, with an interface that the
company believes is the simplest in the industry. "The programming offers a simple user
interface which means that the operator only needs three to four keystrokes in order to
operate the robot," said Inrotech CEO Flemming Jørgensen in late 2012.

"There are no complicated programming codes, and the operator does not need to
assign tasks to the robot manually nor monitor it. Therefore, the operator can control up
to six robots at once. In case of failure or a need for service, our robot is able to pose
itself in a service position, whereupon it returns and restarts where it was interrupted.
This means that our customers can save a lot of expenditure on staff training in relation
to the control and monitoring of the robot."

Miniaturisation and wearable robotics

"When a worker wearing the robot lifts an object weighing 30kg, he will feel
only 5kg of the weight."

Shipbuilding might broadly lean towards massive industrial systems such as the Goliath
crane, but industry research is also pushing for smaller, smarter robots that can make
human workers’ jobs easier and safer by accessing hazardous, hard-to-reach areas.
South Korea’s Hyundai Heavy Industries (HHI), the world’s largest shipbuilder and a
major robotics manufacturer, is in introducing mini welding robots to its shipyards from
the second half of 2013. The robot, which measures 50cm by 50cm by 15cm with its
welding arm retracted, is able to operate in areas inaccessible to humans, and HHI
believes its six joints can handle almost all welding jobs at a speed comparable to its
human counterparts. The robot’s magnetised body allows it to stick to panels and
ceilings, with a single human operator able to control three of the systems at once to
triple productivity. HHI is also working on software for steel cutting, blasting and
painting to expand the new robot’s capabilities.

As well as remote controlled systems, the miniaturisation of robotic systems is also

opening the door to wearable systems that can enhance the user’s strength and stamina.
The technology, which is also beginning to emerge in the defence sector, is being trialled
by HHI’s close competitor Daewoo Shipbuilding & Marine Engineering (DSME) with its
‘Iron Man’ wearable robot, which is intended to improve worker productivity and reduce
the incidence of the musculoskeletal disorders that routinely affect shipyard workers
involved in heavy lifting.

"Even when a worker wearing the robot lifts an object weighing 30kg, he will feel only
5kg of the weight," said a DSME official at the robot’s demonstration event in April
2013. "The robots will be deployed in building offshore plants to move heavy pipes or
tightening bolts with a 12kg wrench." The company hopes to increase the robot’s lifting
capacity to 40kg, and plans to finish its development in time to introduce the technology
to its Okpo shipyard in 2014.

FINLAND TAKES THE LEAD IN

DEVELOPING MARITIME DIGITALIZATION
AND AUTONOMOUS SHIPPING

Unique industry-driven ecosystem brings together shipbuilding companies with research and IT.

Finland is home to one of the world's leading digital ecosystems for the marine industry. With a long history of shipbuilding, and over 1,000 companies serving the
entire supply chain, the country is poised to transform the maritime industry through the benefits of digitalization, automation and autonomous solutions.

Finland hosts the world's first autonomous maritime ecosystem, One Sea. As the only industry-driven ecosystem in the field, the collaboration gathers together
leading marine companies to combine advanced research, state-of-the-art information technology and business. The goal of the One Sea Ecosystem is to create
an environment suitable for autonomous ships by 2025. A globally unique feature of the ecosystem is its approximately 127 km2 test area located off the west
coast of Finland, open to all organizations wishing to test autonomous maritime traffic, vessels or technology. Most recently, the Finnish Shipowners' Association
(FSA) joined the One Sea Ecosystem, bringing with it the deep-ranging industry experience of 25 shipping companies operating over 100 ships.

"Autonomous ships are the future of modern marine traffic," said Ms. Päivi Haikkola, Ecosystem Lead, One Sea Ecosystem. "By contrast with traditional
shipbuilding, autonomous shipping requires an entire ecosystem in which decisions are based on big data, smart algorithms, artificial intelligence and optimization
of the entire value chain. The One Sea Ecosystem has already brought together many of the major players in the fields of marine technology, cargo handling and
digital solutions, and we welcome new Nordic and global partners to join the research collaboration."
Over the next years, digitalization and automation will transform the shipping business, enabling a dramatic development in how data, sensoring, connectivity and
AI solutions can be utilized to support decision-making, optimize processes and conserve resources. As a result, both maritime regulations and industry standards
will need to develop rapidly.

"As shipping solutions become more intelligent, we will require common interfaces and new technical standards," said Mr. Riku-Pekka Hägg, Vice President, Ship
Design, Wärtsilä Corporation. "Despite the fast development of technology in this field, the larger aim is to create smart solutions that enable a more sustainable
future for both the shipping industry and society as a whole."

Digitalization opens up vast possibilities for value creation in the maritime industry, even for ships that continue to be operated manually. ABB Ability™
Collaborative Operations solutions already enable real-time monitoring and support for hundreds of oceangoing vessels, and electric, digital and connected
technology is the natural route towards cleaner, more reliable and more efficient shipping.

"Automation can bring tremendous benefits to the maritime business, even without looking to completely autonomous ships," said Dr. Kalevi Tervo, Global
Program Manager, ABB. "Our goal is to develop solutions that can help ship operators and crews in their work by, for example, increasing situational awareness
far beyond the capabilities of the human senses or traditional instrumentation. As a result, we can improve the safety and efficiency of marine operations already
today, as we work towards even more advanced solutions in the future."

"Finnish companies offer a wide variety of solutions that advance the digital transformation in the maritime industry," said Ms. Ulla Lainio, Arctic Maritime &
Offshore from Finland Program Director, Business Finland. "By embracing the possibilities of the industrial Internet and advanced connectivity, maritime
companies around the world can not only increase performance and optimize processes but also create entirely new business models. Whether it is data
acquisition, analytics, 3D technologies, wireless communications or IT applications, Finland's maritime business and innovation ecosystem can meet any industry
need."

Canada’s largest shipbuilder, Chantier Davie Canada, reveals how it is updating its technology to
connect a shipyard the size of a small town
Established in 1825, Chantier Davie Canada has been building ships for almost 200 years but has just started to take the first steps on its
digital transformation journey. The shipyard is the largest, highest capacity, and most experienced in Canada. Davie Shipbuilding has a
vision of being the nation’s “premier shipyard providing national strategic capability when it comes to the digital transformation,” claims
Jeremy Citone, Technology Director of Chantier Davie Canada. “The yard has recently delivered the most complex vessel ever built in North
America, and we are now focusing on innovating new ferries which use clean energy.”
“Being in a company with so much history, it’s a challenge in itself. Facilities are more than 2 kmsq. With its 56 buildings, it is really like a
small town. When the shipyard reopened in 2012, it was 10 years behind with technology. Everything needed to be updated, from security, IT
infrastructure to introducing Internet of Things,” notes Citone. Despite the numerous changes being made around Davie, its workers are
entirely involved and committed. “Major technology changes are always tricky to introduce. However, our workers are embracing the new
tools they are provided with.”
Citone notes that for him live information is key – while engineers are behind computers designing ships, the supervisors are onboard. “But
how can you ask someone to be efficient onboard a ship under construction if they don't have access to that information? That’s the
challenge we were facing: to provide information when an where it is needed within our environment.”
“Ships are more and more connected to the internet; the engines, navigation chart systems, integrated management
system are all connected for maintenance and updates” - Jeremy Citone, Technology Director of Chantier Davie
Canada
“The use of technology not only enables the shipyard to be more efficient, but it also makes the company more sustainable, as it is able to
move on from paper-based practices which are riskier and less reliable.”
Citone reveals that the shipyard’s technologies are well on track to reach Industry 4.0 levels. Over the past 3 years, he has introduced and
fostered a culture which has the goal of becoming a smarter and virtual shipyard.
“We are now 3D scanning incoming ships, both inside and outside. When we have a virtual ship, we can measure it from the office. We can
select the best spot for a piece equipment. That allows us to work around the clock with engineering companies all over the world,” Citone
explains. As part of the firm’s digital transformation journey, supervisors have been equipped with tablets, and Wi-Fi has been installed
across the site. “With the tablets, our supervisors are able to draw on top of the 3D models,” he adds. Augmented reality technologies allow
them to be onboard and visualize the ship the way it will look like once completed. All piping, equipment, and lighting systems are displayed
on top of what the camera sees directly on the tablets onboard the ship. This way, the supervisors can understand and show the workers
what to do and where to do it.
“I believe live information and reporting is key. In-house developed apps allow the supervisor to have a clear view of the progress made
onboard and keep track of their budget per task. All tablets are connected to the main cluster and are regularly updated with any revisions as
it is used. This reduces risks and mistakes”.
Efficiency, according to Citone, is the most important aspect of the company’s digital transformation journey. “However, as we are based in
Canada, the labor is quite expensive compared to all of our international competitors. Therefore, our employees need to be very efficient and
technology-driven.”
However, Citone notes that live information is being used even further: “For every ship, we collect as much production data as we can. This
live data allows us to update our norms for the planning. I would like to see the end of the averaging. With lots of data, we now have the
capability to get to a level of accuracy we couldn’t dream of before. A good example of the marine industry transformation is one of our most
recent major conversions, the Replenishment at sea vessel MV Asterix.”
While building the Asterix, the company also prioritized cybersecurity, and designed an entire network for its connected ships. “Ships are
more and more connected to the internet; the engines, navigation chart systems, integrated management system are all connected for
maintenance and updates.” Those technologies cannot be implemented without having a shipyard mastering those technologies,” he
continues.
On its journey toward Industry 4.0, the company has made significant strides forward, creating a training system that resembles a video
game. “It’s something completely new that we’ve never seen before in the marine industry. We partnered with RaceRocks, a Canadian
company based in Vancouver that designs training systems in the style of video games. We gave them a 3D model of our ship and they
made a video game out of it,” says Citone. “The crew can sit down with their computers in their rooms and train on how to extinguish fires,
operate equipment and follow procedures. Some training will display a virtual replenishment at sea console. The console is fully functional,
every single button works – if they were to push the wrong button, the simulation will fail.” Using one-of-a-kind technology to train its staff
marks the direction the shipyard is going in, “In 5 years I see the implementation of AI for shipbuilding. AI will allow us to use our workforce in
an optimal fashion. We currently have accurate feedback on how long it takes to complete each job based on complexity, material
availability, and manpower. Planning won’t be based mainly on rules: we will be able to predict schedules using actual shipyard capabilities.
And that’s a game changer for Canada”.

The future of shipbuilding

New initiative aims to cultivate workers’ digital skills
Many shipbuilders at Newport News Shipbuilding have a new tool in their toolboxes.

About 1,000 workers at the shipyard are using digital tablets to work more efficiently. Using tablets allows tradesmen to carry around less paper and view step-by-step visual
instructions on how to complete the task at hand.

“It reduces what you have to carry,” explains Josh Crum, a 30-year-old pipefitter. “You just flip back and forth between the two pages you need,” as opposed to carrying around
30 pages of drawings that can be up to 2 feet tall.

The use of tablets is one example of how the shipbuilding and ship repair industry is going digital. The goal is to incorporate digital technology for the entire life cycle of a ship,
from the time it is designed and built to when it is decommissioned. Newport News Shipbuilding aims to mostly use digital drawings, for the construction of the next aircraft
carrier, the USS Enterprise, which is expected to be complete in the next decade.
Bill Crow, head of the Virginia Ship Repair Association, which represents 250 companies in the trade, says the digital transformation is just beginning for the industry. “It’s not
going to happen overnight with regards to it at all levels but as it continues to evolve … it will enhance everyone’s ability to build or to repair ships in a more efficient, effective
manner.”

New technology is fueling the industry’s digital transformation. However, shipbuilders and repairers will need to adapt their knowledge. Several Virginia institutions are working
to arm these workers with the necessary digital skills.
Efforts underway
Old Dominion University in Norfolk is receiving almost $1.3 million to prepare workers for the new digital manufacturing environment. The funding comes from the Virginia
Initiative for Growth and Opportunity in Each Region (GO Virginia), a program promoting job growth throughout the state.

Jennifer Michaeli, an assistant professor of engineering technology at ODU, is leading the university’s digital shipbuilding workforce program, which aims to train approximately
8,500 workers for careers in the industry. Half of the approximately $1.3 million in funding was distributed earlier this year. The rest will be disbursed in 2019.

ODU is working with educational and industry members to develop the specific career pathways for digital shipbuilding. Michaeli points out that the wheel doesn’t need to be
reinvented. There already are several industry-related programs throughout the state.

They include a maritime logistics program and digital shipbuilding course at ODU and welding and mechatronics programs at Thomas Nelson and Tidewater community
colleges. The new ODU initiative aims to “identify great things that are already happening, get the connections in place so that people can pass through this roadmap … and
come out at the other end with all of the right credentials and with industry demanding them.”

Michaeli says ODU and its partners already have identified career areas to focus on, including skilled trades, design, engineering and information technology. “W e have to get
much more specific about job titles,” she says.
Loss of jobs?
Technology, however, can be a double-edged sword, taking away more jobs than it creates. Michaeli, however, doesn’t believe that digitization will have that impact on
shipbuilding.

“It’s really about introducing new skill sets to in some ways the same types of positions,” such as welders, she says. “Digital shipbuilding is going to redefine the shipbuilding
industry in terms of ‘What skill sets do you need for shipbuilding and ship repair in the future?’”

Brent Woodhouse, manager of digital shipbuilding workforce development at Huntington Ingalls Industries Inc., Newport News Shipbuilding’s parent company, agrees with
Michaeli and paints this real life example. When an older ship used to come into the shipyard for upgrades, the process required workers to physically examine the ship to
confirm what modifications needed to be made. Now the surveying is done with a laser scanner, which provides a 3-D model of the entire ship.

“Instead of 100 people going out there doing nonsensical work where they’re just marking up [2-D] drawings, we maybe send 20 of them and then we can have 80 of those guys
actually doing engineering and design work on the 3-D model,” Woodhouse says. “It’s not like the jobs go away. They kind of transform into more efficient, newer jobs.”
Preparing the workforce
In addition to reshaping jobs, technology also can help train the next generation. ODU expects to open two new labs this year at its Virginia Modeling, Analysis & Simulation
Center, which will enable workers in the industry and students to train on the latest technology and equipment. Siemens is providing software for the digital shipbuilding and
marine electrical power systems labs, which can be used to design, build and maintain ships during their life cycle.

The labs also have received in-kind contributions from Amazon and Newport News Shipbuilding, as well as $960,000 in funds from the U.S. Navy.

The labs also are going to be used for outreach to inspire young people to explore careers in the science, technology, engineering and mathematics fields, including the
shipbuilding and ship repair industries. “They can go through and develop digital work instructions, 3-D design a ship part and … work through that process to inspire them that
there are so many cool jobs in the shipbuilding and ship repair industry that maybe they never even considered,” Michaeli explains.

If ODU and other industry stakeholders are successful, future Virginians should have many innovative shipbuilding and ship repair careers to choose from. Crum, the pipefitter
at Newport News Shipbuilding, already is embracing the innovative ways to do his job.

“It’s a very wise investment of the company to look into this,” he says of Newport News Shipbuilding’s implementation of the tablets. “The way it’s working it seems to me like it’s
going to turn out great. It’s the new age.”