The Sustainability Revolution Bjørn Kj. Haugland Executive Vice President & Chief Sustainability Officer March 2014 1 SAFER, SMARTER, GREENER
Content Sustainability in shipping The challenge Pathways towards safer, smarter and greener shipping The way forward Shipping towards 2050 2
Why is shipping important? Transporting 44500 billion tonne-miles Supporting or constructing 3525 offshore oil and gas fields Contributing to 1.1% of world GDP The most efficient means of transport 3
But it also has an impact on the environment CO 2 emissions NO x emissions Accidental oil spills Freight cost 900 million tonnes per year 22 million tonnes per year 5000 tonnes per year Average 2010-2012 7-11% of cargo value SO x emissions Lives lost at sea Recycling Insurance claim cost Introduction of invasive species 12 million tonnes per year 900 ship accident fatalities per year Average 2003-2012 90% of the ship recycled 0.23% of insured value Average 2010-2012 20 000 marine organisms introduced per day 4
Ambitions for the shipping industry CO 2 emissions Ambition: Freight cost 900 million tonnes per year 60 % reduction in CO 2 emissions Ambition: 7-11% of cargo value Lives lost at sea 900 ship accident fatalities per year Average 2003-2012 Ambition: 90 % reduction in fatalities in shipping Maintain or reduce present freight cost levels 5
The Future of Shipping 6
Pathways towards Safer, Smarter and Greener shipping 60 % reduction in CO 2 emissions 90 % reduction in fatalities in shipping Maintain or reduce present freight cost levels Safe operation Advanced ship design Connected ship Future materials Efficient shipping Low carbon energy 7
The connected ship 8 DNV GL 2013 Digital March 2014 Ship Scandinavia Digital 2014 Ship Scandinavia SAFER, SMARTER, GREENER
Automation in shipping: A journey 50 years old 1961: the first successful automated seagoing ship Bridge control of the main propulsion Centralized control system for machinery Focus on manpower reduction KINKASAN MARU 9
Digitalisation of shipping Internet of all things Software algorithms to handle large amounts of data Real-time sensor condition monitoring Worldwide coverage satellite communication Smart maintenance Automation and remote operations 10
Efficient shipping Solutions for improved shipping efficiency 11 DNV GL 2013 Digital March 2014 Ship Scandinavia Digital 2014 Ship Scandinavia SAFER, SMARTER, GREENER
Efficient Shipping improving the utilisation of the resources Reduce inefficiencies Remove barriers in the system Cost to society Efficient resource usage Getting to the next level Radical change of the business 12
Efficient Short-Sea Shipping Effective modal shifts and infrastructure Reduced unit costs and lead time Supply chain integration Improved contract structures Advanced ICT systems Transparency and logistics management systems 13
Improved cargo handling and modal shift efficiency Zero emissions Fully automated Covers all modes Modular Reduces land use 14
Navigator Seaware Onboard The most advanced and accurate routing software portfolio Navigator Seaware Routing Onboard Voyage Optimizer: Weather forecast display Voyage planning and optimization: speed, fuel consumption, ETA Navigator Seaware EnRoute Adds Onboard Seakeeping Support: General performance (speed, fuel consumption, ETA) Ship dynamics along route based on forecast Navigator Seaware EnRoute Live Adds Onboard Real-Time Seakeeping Support: Ship s real time dynamics based on actual weather situation (motion sensor) Early warning on exceeded limit values Advice on heavy weather manoeuvring Recording of sensor data Connected to DNV vessel library Onboard Display Integrated onboard Kongsberg Seatex Motion Sensor for real life warnings
The way forward Shipping towards 2050 16 DNV GL 2013 Digital March 2014 Ship Scandinavia Digital 2014 Ship Scandinavia SAFER, SMARTER, GREENER
Digital technology a catalyst for smarter shipping Digital technologies and communication will open up new opportunities Change established practices and behaviour in the supply chain Standardise of data formats, improve data sharing and systems integration Traditional competitive business models will be challenged 17
Sustainability a game-changer for shipping A whole new safety mind-set 90 % reduction in fatalities in shipping Digital technology a catalyst for smarter shipping Maintain or reduce present freight cost levels Enabling carbon-neutral shipping 60 % reduction in CO 2 emissions 18
Thank you for your attention bjorn.k.haugland@dnvgl.com Twitter: @BjornKHaugland +4797687315 www.dnvgl.com SAFER, SMARTER, GREENER 19