Digitalization for ESG compliance and ship repair efficiencies
Digitalization is on the agenda of every shipping company. The digital revolution is paving the way to further cost reduction and more efficient processes, all of which contribute towards meeting Environmental, Social and Governance (ESG) criteria and thereby strengthening relationships with customers.
Technology is dramatically changing the way that shipowners and operators tackle not only their ship repair and maintenance schedules, but also more complex ship conversion and retrofit projects as the industry moves towards the International Maritime Organisation’s emissions reduction target of 50% by 2050.
This year’s pandemic has been a catalyst for the shipping industry, a major facilitator of global trade, in considering the best ways to ensure business continuity in a crisis. The capability to conduct proactive, remote fleet management and maintenance has been a critical success factor for shipowners as they look to streamline operations in a challenging environment.
Of course, digitalization is not something that should be done just for the sake of it; it is all about finding the right tools that will help to improve business models and drive revenue. The key decisions to make are what technology is needed, why it is needed and how it will be used.
What are the benefits of digital tools for dry dock projects?
When it comes to dry dock works, people are still a huge part of the equation; people are in control of fleet maintenance schedules, people are executing the repair and retrofit tasks on the ground in dry dock and even more people are monitoring the progress of these works. So, how does digitalization build efficiencies, drive down costs and thereby increase the uptime of your fleet when your key assets are in the hands of a ship repair yard?
The ability to accurately scope, cost, book and manage vessel downtime in dry dock online ultimately improves the efficiency of the people involved in the process by giving everyone a transparent, real-time view of the requested ship repair or retrofit works and their current status. This greatly reduces the chance of dramatic scope-of-work surprises and eliminates many coordination headaches. Everyone is working from the same page, with reduced un-trackable paperwork and a more transparent and dynamic workflow taking the place of complex spreadsheets.
If you are responsible for a fleet of vessels, having that level of clarity improves efficiencies and delivers time savings, as well as minimizing the risk of expensive mistakes, freeing up ship managers to focus efforts on their core business.
The importance of ESG measurement for ship retrofit and conversion
Everyone wants to conduct business the right way and successful shipping companies are acutely conscious of their ESG commitments. Every business decision must now be made with consideration of the associated ESG impact. Shipping’s ESG profile as a capital-intensive industry is high and the impact applies to each part of the sector’s value chain.
Access to reliable data to make the right decisions is key, but so is measurement. Without measurement, there is no accountability and ESG becomes a mysterious ‘black box’. It is no longer enough to promise and pledge, shipowners need to be able to demonstrate that they are actually doing what they said they would. Failure to do so ultimately carries a high price.
Audit trails, data points, real-time information and the transparency that comes with digitalization all contribute towards a ship retrofit and conversion sector that can clearly communicate what it is doing and how it’s doing it. With a hub of information connecting relevant parties and activities together, industry peers can then learn from each other and the sector as a whole evolves and prospers.
As a result of this increased and monitorable transparency, the industry potentially also attracts greater investment interest and financing from funds with a current lack of viable assets. It’s a win-win situation that can only be achieved through the implementation and demonstrable measurement of robust ESG principles.
Reduced cost, risk and downtime for ship conversions
Digital technology and communications are transforming ship operation and trade but arguably, the dry docking and repairs field is lagging behind. Interesting, when you consider that ship conversion and retrofit projects can run into millions of dollars and extend the life of such expensive assets. Embracing technology is key to making gains during these critically important periods of a ship’s lifecycle.
Digital tools for ship repair, maintenance and retrofits are a game changer that shift the perception of dry docking from a technical, paper-heavy undertaking to a project with clear costs and transparent management milestones. The right combination of competent people and efficient digital tools enables shipowners and operators to strike the all-important balance between cost-efficient dry dock periods and solid control. This unique approach will ultimately reduce uncertainties, risk, expenditure and downtime for a more sustainable and profitable future.
for further information please contact: Samantha Fisk <samantha_DOT_fisk_AT_newportshipping_DOT_com>