Using SATCOM to Bring Value to Ship Operations in a Challenging Market

Transcription

1 Using SATCOM to Bring Value to Ship Operations in a Challenging Market KVH Press Briefing Posidonia 2016 Brent Bruun Executive Vice President Mobile Broadband KVH Industries, Inc.

2 Today s Agenda Introduction to KVH The Focus on Operational Optimization The Promise, Challenges and Emerging Solutions Summary Shipping Prepares for the Future Q&A 2

3 KVH in the Maritime Industry KVH Industries Globally 2015 annual revenue ~$185M Public company (NASDAQ: KVHI) Manufacturer 200,000+ mobile satellite TV systems 6,000+ maritime VSAT systems 3

4 KVH in the Maritime Industry Network Operator Only seamless global C/Ku-band VSAT service Service Provider Broadband Internet services and wide variety of airtime options Content Delivery Global KVH IP-MobileCast system Premium Content 10,000 vessels subscribe to KVH Media Group news and entertainment in a variety of delivery modes 12,000 vessels rely upon our Videotel e-learning and maritime training over 100 million training hours delivered to date 4

5 The Power of One TM KVH is the one company delivering a total solution for maximum business performance and flexibility: Global onboard connectivity Hardware & network management Licensed content Affordable content delivery All backed by a comprehensive service and support program 5

6 The Power of One: Global Connectivity 6

7 KVH s Global Broadband Network 26 transponders on 19 satellites Speeds up to 4 Mbps Enterprise-grade infrastructure 640 TB of data & 25 million voice minutes delivered in

8 KVH mini-vsat Broadbandsm 8

9 Network Capacity Expansion Leverage readily available commercial satellites Adding capacity only where needed Heavily travelled areas covered with multiple transponders New commercial satellites coming online Intelsat Epic: 60 Gbps/satellite ViaSat 2: 280 Gbps 9

10 The Power of One: Onboard Hardware 10

11 Multiple Hardware Options Using Common Platform World s Smallest Maritime VSAT 37 cm (14.5 in) Ku-band Antenna Enterprise-grade, Feature-packed VSAT 60 cm (24 in) Ku-band Antenna Global C/Ku-band Maritime VSAT 1.1 m (42.5 in) C/Ku-band Antenna 11

12 Integrated Onboard Hardware and Software Manufacturing the hardware ensures everything works together Smaller, simpler, and more reliable Over-the-air software update capability Stabilized tracking antennas for any size vessel Belowdecks Integrated CommBox Modem 12

13 The Power of One: Content 13

14 Unmatched Entertainment Great programming in every category Updated around the clock Stored onboard for immediate access Play something different on every device For your TV, tablet, smartphone and laptop Flexible subscriptions starting from $49/ship per month 14

15 Delivering Content for Maritime Operations Pushing large operations files to entire fleets, affordably and seamlessly Working with industry leaders: 15

16 The Power of One: Content Delivery 16

17 The Global Content Delivery Solution IP-MobileCast Uses multicast technology to broadcast large files to all vessels at once Delivering up to 500 GB of content per month per vessel Separate data stream Uses only idle network bandwidth (background multicast) Does not use customer s data plan or affect onboard speeds 17

18 The Efficiency of Multicasting and an Onboard Server Multicast: one transmission sends the file to all licensed vessels, which is cached on an onboard server for immediate access. Unicast: a file is transmitted to each user on each receiving vessel. The number of transmissions equals the number of users. 18

19 The IP-MobileCast Layer 60 Network usage (Mbps) Background multicast layer 0:30 1:00 1:30 2:00 2:30 3:00 3:30 4:00 4:30 5:00 5:30 6:00 6:30 7:00 7:30 8:00 Time (hh:mm) IP-MobileCast doesn t harm or compete with vessel s Internet or VoIP services Beam capacity is sized for peak loads, leaving about half the network capacity unused Multicast data is transmitted in unused bandwidth, at a lower priority than standard IP traffic Multicasting does not use your mini-vsat Broadband plan s data allotment 19

20 The Power of One: KVH OneCare 20

21 KVH OneCare A Comprehensive Customer Life-cycle Support Program Application Engineering Solution Deployment Ongoing Operating Support 21

22 The Power of One TM KVH is the one company delivering a total solution for maximum business performance and flexibility: Global onboard connectivity Hardware & network management Licensed content Affordable content delivery All backed by a comprehensive service and support program 22

23 Recent Customer Successes VSATs more than twice our next two competitors combined Thome Ship Management selects MOVIElink for its 41 Vessels Byzantine Maritime Gas Selects KVH mini-vsat Broadband Service for New LPG Fleet OOCL Signs Long-term Extension to Videotel Training (60+ vessels) 23

24 Typical Ship Operating Cost Distribution Prime Candidates for Operational Optimization Fuel savings Route planning and optimization Risk mitigation Optimizing personnel recruitment, retention, training, ongoing education Optimized maintenance and repair programs Cost-effective mobile broadband communications KVH and its partners play a role in all these areas and big data is the key 24

25 Fuel Savings Maersk demonstrated a reduction in fuel consumption of 13% from 2012 to 2014, while increasing container count by 11% 25

26 Route Planning and Optimization Of extreme importance for maritime safety and bottom line profitability MARPOL regulations limit greenhouse gas emissions from ships Tradeoffs can only be resolved with optimization software I am 100% convinced that due to the accurate and extensive weather and routing information and support of AWT, I have been able to make the right decisions to prevent damage to my vessel and cargo, and save fuel for our charterer at the same time. Captain Tjeerd Schippers, JR Shipping B.V., Netherlands 26

27 Risk Mitigation Key Risks to the Future Safety of Shipping Lack of skilled & quality crew Non-standard & inadequate training at grass roots level Levels of crew experience, training and emergency preparedness often inadequate Over-dependence on technology & overreliance on e-navigation Machinery damage is the most common cause of shipping incidents accounting for 36% of casualties Growing concerns about the declining experience of onshore technical staff 27

28 Personnel Competitive Advantage in Recruiting and Retention 73% of respondents said that the level of crew communications services provided onboard did influence their decisions about which shipping company they worked for. Of the 73% of crew that believed it was important, 78% said that it was a strong or very strong influence on which contract they decided to take. Crew Connectivity 2015 Survey Report FutureNautics Research 28

29 Quantifiable Results from Good Training MISC has reduced vessel operating costs by 9% and dry-docking costs by 10%, and improved vessel availability to 99.8%, and credits improvements in training and crew assessments as key elements. We have been using Videotel s system since 2014 and during that time we have seen a net improvement in health and safety, vessel operations, efficiency and results from third party inspections. Captain Sanjay Patil MISC Head of Fleet Management Services & Customer Relationships 29

30 Maintenance & Repairs Reduce Maintenance Costs, Avoid Lost Revenue $30B/year spent on repairs and maintenance in shipping Typical ship spends $650K-$700K/year 36% of all P&I claims are hull and machinery No central system or repository for knowledge about equipment Ships and equipment are NOT standardized 30

31 A Big Data Example KVH Proactive Equipment Monitoring 31

32 Data Visualization Detailed Vessel Position Tracking with Event Tagging 32

33 Another Use of Big Data KVH Traffic Analysis and Planning KVH Terabytes of Data by Lat/Long 33

34 Cost-Effective Satellite Communications Enables It All 34

35 Big Data Challenges Ship to Shore A vast torrent of data Temperature, pressure, vibration, roll/pitch, hours of use, etc. A well-instrumented ship can generate up to 60 GB of data per day* Moving all 60 GB would cost more than $250K per month per ship Many data/airtime Plans geared to Maximize Download Speeds *Source: Futurenautics Research, Maritime Satellite Communications and Applications

36 Typical Ship Data Generation * Image courtesy of Maersk 36

37 Big Data Challenges Shore-to-Ship Significant additional data being consumed Operational big data takes many forms Maintenance information, company communications, training materials, file/software/virus updates, weather and routing data, apps Crew welfare - digital native seafarers expect Internet access to: Stay in touch with families For entertainment News File downloads *Source: Futurenautics Research, Maritime Satellite Communications and Applications

38 Shore-to-Ship Data Transfers Operational Item File Size Earlier Generation (256 kbps) VSAT (4 Mbps) 5-minute Video Update Interactive CBT Course Large Maintenance Manual 30 MB 15 minutes 1 minute Up to 500 MB 4 hours + ~ 17 minutes ~1 GB 9 hours ~ 35 minutes Seafarer Training Course Up to 3 GB Up to 26 hours ~ 90 minutes 38

39 Shore-to-Ship Crew Welfare Item File Size 4G LTE (50 Mbps) Earlier Generation (256 kbps) VSAT (4 Mbps) 4-minute song 4 MB < 1 second ~ 2 minutes 8 seconds 5-minute video 30 MB ~ 5 seconds ~ 15 minutes 1 minute WhatsApp Messenger for ios 56 MB ~ 9 seconds ~ 30 minutes ~ 2 minutes 9-hour audiobook 110 MB ~18 seconds ~ 1 hour ~ 4 minutes 45-minute TV show (SD) 200 MB ~ 30 seconds Nearly 2 hours ~ 7 minutes 2-hour HD movie Up to 4.5 GB ~ 12 minutes Nearly 40 hours ~ 2.5 hours 39

40 Big Data Solutions: Ship-to-Shore Human intervention 24/7/365 staff is already available Sensor-based analytics (SBA) Software agents on board for local processing and analytics Centralized repository of key data transferred off ship during off-peak hours Goal: Limit many ship-to-shore data transfers to exception conditions 40

41 An Example Pre-processing KVH Satellite Performance Data All processing and capture controlled by software agents Agents can be remotely created and configured Capture frequency or policies can be remotely managed Ship-to-Shore transfers can be done during periods of low network load File becomes manageable with pre-processing Typical V-Series.LOG raw data file is 9 10 MB per 24 hours Processing down to a useful file reduces it to < 0.5 MB A Performance Summary is then generated that is < 1 KB 41

42 Big Data Solutions: Shore-to-Ship Physical delivery DVDs, VOD servers Aggregation/consolidation of operations and maintenance information Multicasting technology for large files Operations/maintenance Internal fleet communications News, entertainment and other crew welfare content 42

43 On the Horizon Increasing capacity and coverage on the mini-vsat Broadband network Applying what we re learning internally to our customers big data initiatives Ongoing expansion of crew welfare content Broadening seafarer competency, training, testing, career enhancement 43

44 Summary Shipping Prepares for the Future The big data era is upon us for operational optimization Big data flows both ways it s a two-way street Ship-to-Shore Plan to instrument everything, but analyze, transfer data selectively, at the right time Shore-to-Ship Develop or contract for a repository of key operational data and standards Use multicasting technology to optimize delivery and minimize costs 44

45 Q&A