Digitalization

Managing Ships better

Thomas Kriwat

CEO –MERCMARINE Group Of Companies

“Newbuildings have alwaysbeen too expensive. It isonly the third owner whowill be able to makemoney.”

Capt. Klaus Kriwat (76)

Most of the agency work is in Steering the sign on and sign off processes, document handling

and control, communication with vessel, port agents, travel agents and, and, and.

The work of our MPOs will be nearly fully automated through digital processes, where he only

needs to step in, if things get out of the ordinary.

We will reduce the work load and redirect the way our MPOs are working. With our present

conventional setup an MPO is able to handle about 250 Seafarers, after the digitalization

process we calculate that he will be able to handle about 500 to 750. At the same time we

ensure very stringent monitor-able and fully quality controlled processes.

The final module will enable our clients to do their complete planning through this

system and monitor performance on a daily basis.

Project with 15 to 20 years investment horizon Extrapolate Earning Capacity Technological Developments Innovation Risk Regulatory Developments Market Developments Political Developments High Financial Costs for Equity Once market takes a substantial hit…

1st Owner – The InitiatorHas in-depth shipping knowledge, makes money on supervision, construction and consultancy and management

digitalization – managing ships better

Most of the agency work is in Steering the sign on and sign off processes, document handling

and control, communication with vessel, port agents, travel agents and, and, and.

The work of our MPOs will be nearly fully automated through digital processes, where he only

needs to step in, if things get out of the ordinary.

We will reduce the work load and redirect the way our MPOs are working. With our present

conventional setup an MPO is able to handle about 250 Seafarers, after the digitalization

process we calculate that he will be able to handle about 500 to 750. At the same time we

ensure very stringent monitor-able and fully quality controlled processes.

The final module will enable our clients to do their complete planning through this

system and monitor performance on a daily basis.

Compares Delivery Price with Forced Sales Price Starts with below average income Needs to see market improvements Has no financial means to upgrade the vessel If market does not improve…

2nd Owner – The Bargain HunterHas less shipping knowledge, but appetite for risk

digitalization - managing ships better

The final module will enable our clients to do their complete planning through this

system and monitor performance on a daily basis.

Pays a heavily discounted price Scrap Value is a significant percentage of investment Invest in upgrading Gets reasonable returns at prevailing levels Bears risk of technical difficulties due to neglected

maintenance If market improves…

3rd Owner – WinnerIn-depth shipping knowledge, skills in handling older tonnage

digitalization - managing ships better

Upgrading 3rd hand tonnage

Technical Upgrading Performance Monitoring Seafarer Training

How about a Management Upgrade?

digitalization - managing ships better

Digitalization

Not a new softwareTransformation of business

processes from manual to digitalManaging big dataBoosting efficiencyCreation of new services

digitalization - managing ships better

New Shipmanagement Demands

Increasing Documentation More regulatory requirements Performance Monitoring Efficiency evaluation Human Resources Management Transparency

How to solve the problems at hand with no money to spend?

digitalization - managing ships better

Development of a platform joining and managing processes

digitalization - managing ships better

VesselInterchange

Platform

Owner/

Manager

CrewAgent

AuthoritiesClass

Society

Flag State

Digitalizing work routines Internet of things on board Integrating other stakeholders Beating Bureaucracy New Crewing Solutions

Data Management

System monitors expiry dates of certificates for the vessel

Prior expiry automatically orders new certificate/survey

Class is integrated, issues certificate fully automated

Updates the system Only thing crew/staff has to do, if

required, take print out and file it

digitalization - managing ships better

Human Resources Management

Fully automated sign on/off process Certificate validity monitoring 24/7 live experience matrix and rating Competency and performance based

evaluation of seafarers Identify training needs New Services like loyalty programs

digitalization - managing ships better

Let‘s learn from Capt. Kriwat

Do not fall into the “Newbuilding Trap” Losses can be huge, nobody is too big

to fail Buy and finance 3nd hand tonnage

with market acceptance Invest in upgrading 3nd hand tonnage

to increase efficiency Digitalize your processes

digitalization - managing ships better

Most of the agency work is in Steering the sign on and sign off processes, document handling

and control, communication with vessel, port agents, travel agents and, and, and.

The work of our MPOs will be nearly fully automated through digital processes, where he only

needs to step in, if things get out of the ordinary.

We will reduce the work load and redirect the way our MPOs are working. With our present

conventional setup an MPO is able to handle about 250 Seafarers, after the digitalization

process we calculate that he will be able to handle about 500 to 750. At the same time we

ensure very stringent monitor-able and fully quality controlled processes.

The final module will enable our clients to do their complete planning through this

system and monitor performance on a daily basis.

thank you!