facing the challenges of digital transformation

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MCI (P) 005/03/2019 A Publication by the Singapore Shipping Association Q2 2019 Issue 62 Facing the Challenges of Digital Transformation

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MCI (P) 005/03/2019A Publication by the Singapore Shipping Association Q2 2019 Issue 62

Facing theChallenges of DigitalTransformation

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ForewordDear Members,

Following an exciting first quarter filled with festivities, Ibelieve we are ready to embrace a successful year ahead.As we approach the second quarter of 2019, we arepreparing for a series of maritime activities. Kicking off inApril, we have an event-filled Singapore Maritime Weekwhich boasts notable learning sessions such as theSingapore Maritime Technology Conference (SMTC)Research & Development Seminar, the SMTC CyberSecurity Seminar, and the Maritime and Ports Authority(MPA) Innovation Lab Open House.

These topics tie in well with the technology theme of thisissue of WAVES, which features Group CIO of BW Group,Tiong Kee Yong, sharing his insights on how shippingcompanies should approach and manage cyber risks. Forthe latest guidelines on Cyber Security Onboard Ships,check out page 16.

Recognising the value of virtual reality (VR) in themaritime industry, Waves speaks to Managing Director ofKVH Videotel, Raal Harris, to understand how VR can helpenhance the learning experience of seafarers as theymove ahead in the maritime industry.

We also look at a world first for Singapore, a pilotprogramme which is using drones to carry out the oftendangerous work undertaken by boarding agents.

Closer to home, the first quarter saw SSA rolling out twoinitiatives – the launch of the Singapore War RisksInsurance Conditions (SWRIC) and an MoU signing forElectronic Bills of Lading (EBL). Please see page 24 fordetails.

Lastly, take a look at the photos featuring SSA’s LunarNew Year Lohei Cocktail Reception at Raffles CityConvention Centre, and the YEG’s Lunar New YearNetworking Session at RedDot BrewHouse @ Dempsey!

We hope you enjoy this edition of Waves.

Lisa TeoSSA Vice President & Honorary Secretary, General Affairs Committee Chairman

Cyber Threats in the Maritime Industry

CO N T E N T S

THOUGHT LEADERSHIP

FEATURES

NEWS

TECHNOLOGY

y

10A Tale of TwoCompanies p

14

Virtual Reality -Transformingthe Way WeLearn

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Agency by Air - Trialling Shore-to-ShipDeliveries byDrone

18EnhancingSingapore’sMaritimeInsuranceOfferings

EnhancingSingapore’MaritimeInsuranceOff i

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LatestGuidelineson CyberSecurity

esr 16

HAPPENINGS REGULARSNew Members ......................................................................31Executive Development Programme..............32

Tel: +44 1296 682051www.elabor8.co.ukFor advertisement enquires, please call Karen Martin on +44 1296 682108 oremail [email protected]

WAVES is published quarterly by the Singapore Shipping Association (SSA). Copyright of the materialscontained in this magazine belongs to SSA, unless specified otherwise. No content may be reproduced inpart or in whole without the prior consent of the publisher. Views expressed in the articles are those of therespective writers and may not be representative of the SSA. (Printed on FSC paper)

Notice to all SSA members – stay in contactAs you are aware, the SSA Secretariat often sends out email circulars to inform you, ourmembers, of SSA’s events and the latest developments in the industry. We have noticedthat some of you may not be receiving the email circulars sent out by the SSASecretariat – as your office email server may have classified our emails as spam.

To resolve such issues, kindly include SSA’s domain name ssa.org.sg into your emailwhitelist/safelist so that you remain in our communication channel. Thank you for yourkind attention

PublisherSingapore Shipping Association,59 Tras Street, Singapore 078998Tel: 6305 2260 Fax: 6222 5527, Email: [email protected], www.ssa.org.sg

Editor Lisa TeoEditorial Team Michael Phoon, Pauline Lam, Kelvin Teo, Priscillia Chua

Design

HAP

SSA Lunar NewYear CocktailReception 2019

PublisherSingapore Shipping ATeTT l: 6305 2260 Fax: 62

Editor Lisa TeTT oEditorial TeTT am Micha

D i

tion 2019

26

YEG Lunar New Year

y ySecretariat – as your offi

ToTT resolve such issues,whitelist/safelist so thakind attention

r 28

New PartnerBolstersDigitalisationof ElectronicBills of Lading

24

02/0403/0405/0406/0411/0416/0419/0422/0424/04

2020 Global Sulphur Cap Sub-committee MeetingYoung Executives Group (YEG) Committee MeetingMFM Sub-committee MeetingEvent: Singapore Maritime WeekEvent: Maritime Learning Journey*Tax Sub-committee MeetingPublic Holiday: Good FridayOperations, Training & Manning Sub-committee MeetingMaritime Safety Sub-committee Meeting

April 2019

EVENT CALENDAR

April

May

June

July

This event calendar is subject to change

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01/0503/0509/0514/0516/0520/0528/0530/0531/05

Public Holiday: Labour DayCruise Sub-committee MeetingMarine Fuels Sub-committee MeetingInternational Committee MeetingTechnical Committee MeetingPublic Holiday: Vesak Day (observed)Event: 28th ASA Annual General MeetingCouncil MeetingOffshore Committee Meeting

May 2019

04/0605/0607/0612/0626/06

Service Committee MeetingPublic Holiday: Hari Raya PuasaSMEF MeetingLegal & Insurance Committee MeetingEvent: SSA Annual General Meeting

June 2019

03/0709/0712/0716/0722/0725/0731/07

Young Executives Group (YEG) Committee Meeting2020 Global Sulphur Cap Sub-committee MeetingMFM Sub-committee MeetingTax Sub-committee MeetingOperations, Training & Manning Sub-committee MeetingCouncil MeetingMaritime Safety Sub-committee Meeting

July 2019

*subject to changes

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THOUGHT LEADERSHIP

What delivers better results?Passively listening to instructionsin class or actually carrying outthe task yourself?

One of the major challenges faced by trainers is helpingtrainees retain what they learn. “People remember betterby performing the task themselves,” says Raal Harris,Managing Director of maritime training specialist, KVH

Videotel. “That’s because of the way our brain processesand retains information. We tend to remember placesbetter if we have been there, rather than if we have onlyseen them in books or documentaries. If we can harnessthat and adopt activity-based learning, the results can bevery powerful.

“This is where virtual reality (VR) can play a critical rolein training,” he adds. “We have witnessed how peopleretain information better through a VR experience in ourtraining programmes.”

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THOUGHT LEADERSHIP

What delivers better results? Videotel. “That’s because of the way our brain processes

VirtualRealityInterview with Raal Harris, Managing Director, KVH Videotel

Transforming the Way We Learn

“Given the rapid advancement intechnology, the maritime industry mustembrace the use of VR in trainingseafarers.”

Embracing VRWith ever changing regulation and legislation in themaritime world today, the need for an engaging trainingmethod has never been more crucial, says Harris. “Themore experiential the learning environment, the betterthe retention.

“Given the rapid advancement in technology, themaritime industry must embrace the use of VR in trainingseafarers,” he says. KVH Videotel has been working with

VR technology for more than two years and recentlyentered an agreement with Ukraine-based maritimesoftware development company OMS-VR, to produce anddistribute VR maritime training equipment.

The two companies will jointly develop a series of VRtraining programmes over the next two years, producing aportfolio of more than 40 training courses. The trainingmodules will include essential STCW-related critical safetymaterials, cargo & engineering tasks, and exercises onindustry best practices.

Learning by doingVR offers trainers and educators a powerful set of toolswhich improve learner engagement and retention, reportsHarris. “It’s proven that we learn better by doing. VRprovides a safe sandbox in which we can learnexponentially, without the associated dangers that comewith a real learning environment.”

Harris believes that VR technology will disrupt thelearning process as more and more of these devices

become increasingly portable and affordable.Unlike static websites, VR offers a 360-degree

experience. “The whole user experience is alot more engaging and real,” he explains.

“A simulator is a piece of equipment thatneeds to be installed at a physical location.With VR technology, you do not requireinstallation of this equipment. You can use VR

anytime, anywhere. VR-enabled learning offersan immersive experience similar to the real

world. It enhances the learning experience.”

Safer trainingIn a high-risk environment, VR-assisted learning is

particularly valuable. “It allows people to learn andpractice in a safe environment, for example in lifeboat

drills. Whilst VR is never a substitute, you can train in aVR-supported environment first before conducting a realdrill. In short, you can learn from making mistakes withouthaving to pay the price.”

Many people have the theoretical knowledge inhandling an incident but lack the hands-on experience toapply the knowledge. “Learning in a VR environment cantest their ability to react and handle the situation withoutendangering their lives.”

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THOUGHT LEADERSHIP

RecruitmentVR can also be a valuable tool in recruiting the rightcandidate, he says. “We have clients using it in therecruitment process to test a candidate’s ability to performtasks which they claim they can do.”

VR technology and capabilities continue to advancerapidly. Headsets are getting smaller with better latencyand gloves are designed to create a better immersionexperience for users.

VR-assisted training can be challenging for some people.While Harris would not suggest that older age groups havedifficulties adopting VR learning, it is notable that youngergroups ease into that space fairly quickly. It seems thosewho grew up with Playstation have no issues embracing VR.

VR is for now“VR is not something meant for the future,” says Harris.“It is happening now. Today, VR is used extensively inmany industries. It is a big part of what Videotel does.For those involved in training, they will need to harnessthe benefits of VR technology to enhance the learningexperience.

“The sooner you adopt VR in your training, the more youwill appreciate what the technology can do for you.”

THOUGHT LEADERSHIP

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VR technology and capabilities continue to advance rapidly.Headsets are getting smaller with better latency and gloves aredesigned to create a better immersion experience for users.

VR-enabled learningoffers an immersiveexperience similar tothe real world. Itenhances the learningexperience.”

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Like many industries, the shipping industry has not beenspared cyber threats and things can only get worse,believes Tiong Kee Yong, Group CIO with BW Group.Heading the IT team in driving BW Group’s digitaltransformation, Kee Yong shares his views on cyber risksand how we can avert some of these risks.

“Shipping is like any other industry, not immune tocyber threats. The maritime industry is known to be alaggard in adopting technology compared with otherindustries,” says Kee Yong.

“As more and more shipping companies push aheadwith connectivity on board their vessels, we areincreasingly exposed to cyber threats.

“A cyber attack is serious,” he says. “Besides disruptingoperations and causing delays in the supply chain, cyberattacks can spin off into a series of detrimentalconsequences which include loss in productivity, vessels,cargoes and potentially lives. It hurts a company’s imageand affects future revenue.”

Very often, ill prepared companies and individuals are

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TECHNOLOGY

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Cyber Threats in the Maritime IndustryInterview with Tiong Kee Yong, Group CIO, BW Group

Cyber security, a major concern across all industries can no longer be takenlightly. WAVES speaks to Group CIO of BW Group, Tiong Kee Yong, to find out themajor threats and vulnerabilities faced by the maritime industry, and howshipping companies should approach and manage cyber risks.

TECHNOLOGY

the targets of cyber attacks. Simple measures like raisingawareness of cyber risks can help prevent the companyfrom falling prey to these attacks. Many employeesincluding shore staff and crew are lax about good cyberpractices. Using default passwords, not changingpasswords over a period of time and sharing ofpasswords are some bad practices which should bediscouraged. Educating employees about potentialhacking, phishing, malware and the seriousness of dataleakage can help reduce a cyber attack.

Shipping companies can minimise their risk exposurethrough learning ‘best practices’ from other industries.“There is no need to re-invent the wheel,” says Tiong Kee

Yong, citing the NIST framework which is already beingadopted as a best practice in addressing cyber securityacross other industries.

“It is good to see that the shipping industry is waking upto these threats, but we can do more. In Singapore, wehave the government proactively pushing the cybersecurity agenda via the Cyber Security Agency of Singapore(CSA), and the Maritime and Port Authority (MPA) ofSingapore encouraging communities to share and learn.SSA is doing an excellent job in helping to raise awarenesson cyber security through seminars and talks.” says KeeYong.

“In this ever-changing world of technology, threats arebecoming harder to prevent. In the drive for digitalisation,we are exposing ourselves to cyber risks. For example,VSAT (Very Small Aperture Terminal) satellitecommunications systems are not spared from cyberattacks.” says Tiong Kee Yong. “Today, a number ofOperational Technology (OT) systems such as AIS, ECDISand Engine and Equipment Controls are increasinglyconnected via Internet of Things (IoT) through the sameVSAT link.

“Before the advent of the IoT, the IT and OT worldswere not connected. With the need for real time datacollection and analytics for decision making, this OT-ITintegration and connectivity introduces a higher risk for

“Besides disrupting operationsand causing delays in thesupply chain, cyber attackscan spin off into a series ofdetrimental consequenceswhich include loss inproductivity, vessels, cargoesand potentially lives.

“In this ever-changingworld of technology,threats are becomingharder to prevent. Inthe drive fordigitalisation, we areexposing ourselves tocyber risks.”

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cyber attacks.” says Kee Yong. “The life cycle management of these IoT devices is still

relatively immature. There is a lack of effective upgradeand patch management for millions of devices once theyare installed. Imagine the unlucky staff who have to goaround plugging and unplugging USB cables to update asecurity patch on each and every device.” he says.

“It is crucial that the business (commercial, fleetmanagement operations and technical management)and IT teams work together to implement a suitablegovernance framework and draw up clear lines ofresponsibilities to identify what is critical to protect andhow to respond to these incidents. Businesses and ITneed to work together with industry IoT vendors toaddress the gaps in security management and improveon the designs of these devices,” says Kee Yong.

“The shipping industry should also learn from industrypeers on leveraging artificial intelligence (AI) andautomation tools to counter the advancements of cyberhackers. We are already seeing these tools used by the‘dark side’ to carry out more targeted attacks.”

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TECHNOLOGY

The NISTCybersecurityFrameworkThe BW Group uses theNIST* CybersecurityFramework to assess andimprove its ability toprevent, detect andrespond to cyber attacks.

The Framework not onlyhelps organisationsunderstand their cyberrisks (threats,vulnerabilities andimpacts), but also how toreduce these risks withcustomised measures. The Framework also helps themrespond to and recover from cyber incidents, promptingthem to analyse root causes and consider how they canmake improvements. Companies from around the world

have embraced the Framework, including JP MorganChase, Microsoft, Boeing, Intel, Bank of England, NipponTelegraph and Telephone Corporation, and the OntarioEnergy Board.

Anomalies andevents

Securitycontinuousmonitoring

Detection process

IDENTIFY DETECT

Recover planning

Improvements

Communications

RECOVERPROTECT

Awareness control

Data security

Awareness and training

Info protection andprocedures

Maintenance

Protectivetechnology

Asset management

Governance

Business environment

Risk assessment

Risk managementstrategy

RESPOND

Response planning

Analysis

Communications

Mitigation

Improvements

* National Institute of Science and Technology, US Department of Commerce

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TECHNOLOGY

Company A

Following a secret penetration test carried out at therequest of the Chief Technology Officer, a number ofareas were identified in need of improvement. Thecompany’s cyber security policies were stored ashard copies which had not been updated since theywere compiled. These policies had become outdateddue to changing threats. Controls were based on thecompany’s own adverse experiences and did notrelate to any specific risk management goals.

In addition, it was found that there were multipleundocumented procedures known only to a fewpeople in operations. The company would not beable to detect, react or recover from even the mostbasic attacks.

On the plus side, the situation had the potential forrapid improvement.

Follow up actionThe company was advised to carry out a riskassessment and to review control design, in additionto updating policies and procedure documentation.This risk mitigation strategy would help avert

potential cyber attacks resulting in financial losses.However, a top level decision was made to abort

this idea and instead to purchase an off-the-shelfsolution. No additional staff training was carried outand the outdated policy manuals remained in place.

ConsequencesShortly after, the company experienced two majorcyber attacks in rapid succession. Whilst the firstattack had little impact on day to day workflow, thesecond attack was financially devastating.

Databases and critical applications were encryptedand ransomed for USD100,000. Company A wasunable to recover the servers, and more importantly,had not identified that one database server inparticular was central to its Enterprise ResourcePlanning (ERP) system and critical business functions.It had been afforded no more protection than non-critical systems. Because the database could not berecovered, a decision was made to pay the ransom.This took some time to arrange and during this time,orders and payments had to be processed manually,resulting in delays.

Penetration testing - the practice of testing a computersystem, network or web application to find securityvulnerabilities that an attacker could exploit – is becomingcommon business practice today. But what happens afterthe test? We look at two companies that have takendifferent approaches - with very different outcomes.

A Tale of Two Companies Case studies

By Gideon Lenkey, Director of Technology EPSCO-Ra

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TECHNOLOGY

Key learningsThe steps each company chose to take after thepenetration test resulted in two totally differentoutcomes.

By taking the time to identify risks at the businesslevel and allocate budget according to risk tolerance,Company B was able to provide operations with aclear vision of what needed to be protected. Thisresulted in a carefully conceived suite of controls,policies and processes which were regularly tested,proven functional and well documented.

Dealing with the threats of cyber attacks shouldbe a company-wide effort requiring commitmentand transparency from top management andemployees.

Company B

Again, EPSCO Ra’s relationship with Company Bbegan with a covert penetration test. UnlikeCompany A, Company B went into the process withfull support from the management team. Inaddition to addressing technical deficiencieshighlighted by the penetration test, Company B wasprepared to work to identify specific risks to thecompany and prioritise areas which required moreresources. The company understood that cyber riskmanagement was a business process, like any otherbusiness function.

Follow up actionImmediate actions were taken to address seriousissues based on the information gathered from thepenetration test. A cyber security risk assessmentidentified the potential impact to critical businessoperations. Subsequently, attention was focused oncritical systems, design controls and processes toensure that Company B was well prepared in a cyberattack.

ConsequencesSince then, a number of incidents have occurred andeach time they were remediated efficiently and costeffectively.

Dealing with the threats of cyber attacks should bea company-wide effort requiring commitment andtransparency from top management andemployees.

The shipping industry has recently launched the third edition of its cyber risk management guidelines, Guidelines onCyber Security Onboard Ships. These guidelines address the requirements to incorporate cyber risks in the ship's safetymanagement system (SMS), implement risk assessments for operational technology (OT) and provide guidance fordealing with cyber risks.

The new guidelines – the 3rd edition since its launch barely three years ago in January 2016 - reflect the constantlyevolving nature of maritime risks and challenges. They cover three key areas:

The guidelines also underline the need for ships to be able to disconnect quickly and effectively from shore-basednetworks, where required.For a copy of Guidelines on Cyber Security Onboard Ships, and for a full list of organisations supporting the initiative,please visit https://bit.ly/2ub5dgb

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TECHNOLOGY

Latest Guidelines on Cyber Security

The SMS (safety management system)The industry will soon be under obligation to incorporate measures to deal with cyber risks in the ship's SMS. Theupdated guidelines provide additional information which should help shipping companies carry out proper riskassessments and include measures in their SMS to protect ships from cyber-incidents. A new dedicated annexprovides measures that all companies should consider implementing to address cyber risk management in anapproved SMS.

Operational technology (OT)Ships have increasing levels of operational technology (OT), such as navigational systems and engine controls,which are integrated with information technology (IT) and connected to the Internet.

The risks associated with OT are different from IT systems. Malfunctioning IT may cause significant delays to aship's unloading or clearance, but malfunctioning or inoperative OT can pose a real harm to people, the ship orthe marine environment. For example, if the ECDIS (Electronic Chart Display and Information System) is hit bymalware or when software breaks down due to incompatibility after an update, it can be detrimental to the entireoperation.

Supply chain risksA new area of focus is the risk of malware infecting the ship's systems via the multiple parties associated with theoperation of a ship and its systems. More and more ships are closely connected to security systems in the officesof the companies, shippers and agents.Prudent actions include evaluating the security of service providers, defining a minimum set of requirements tomanage the supply chain or third-party risks and making sure that agreements on cyber risks are formallycommunicated in writing.

Incorporated in 1981, Hong Lam Marine is one of the most establishedand leading bunker craft owner and operators in Singapore. Our missionis to provide good value for clients and be recognized for safe operationsand quality service.

As of March 2019, we operate 37 tankers with a total Deadweighttonnage of 303,886. Our tankers are employed for bunkering inSingapore and the transportation of petroleum products and chemicals inAsia and the Middle East.

We operate and maintain our tankers to the highest standards in allaspects including Safety & Security, Technical & Marine, MarinePersonnel and Cargo Operations.

Hong Lam Marine is a strong leader in innovation, being an industrypioneer to promote the usage of double-hulled tankers, mass flowmetering and introduce hybrid bunker tankers for bunkering.

6 Shenton Way, #16-08 OUE Downtown 2, Singapore 068809

www.honglam.co.sg

From a landing platform and operational centre set up atMarina South Pier in Singapore, a very special flight took off inMarch – a drone, delivering 1.5kg of cargo to Swire PacificOffshore’s anchor handling tug supply (AHTS) vessel PacificCenturion.

Partnering with Airbus, Wilhelmsen was launching the pilottrial of its shore-to-ship Singapore pilot project, marking the firstdeployment of drone technology in real-time port conditions.The Airbus Skyways drone navigated autonomously along pre-determined ‘aerial corridors’ in its 1.5 km flight to the Eastern

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FEATURES

Agency by AirWilhelmsen Ships Service and Airbus have teamed up to bring shore-to-ship dronedeliveries in Singapore. WAVES spoke to Marius Johansen, Vice President CommercialShips Agency, Wilhelmsen Ships Service AS, to find out more.

Trialling shore-to-ship deliveries by drone

Marius Johansen, Vice PresidentCommercial Ships Agency, WilhelmsenShips Service AS

Working Anchorage, to deliver 3D printed consumables,before returning to its base. The entire delivery from take-offto landing and back again, took only ten minutes.

After this successful first delivery flight, Marius Johansensaid: “The now proven, seamless operation of dronedeliveries from shore-to-ship, in one of the world’s busiestports, proves the hard work, investment and faith we, andindeed our partners, placed in the Agency by Air dronedelivery project over the past two years was not misplaced.”

There has been a lot of interest from customers and thegeneral public since the Agency by Air project and pilot trialwere announced at Posidonia in June 2018 and Johansentold WAVES that there is a long list of customers wanting toparticipate.

“More than 20 companies have specifically expressedinterest in the Singapore trial, where, because of draftrestrictions at the specific anchorage, we’re looking tocomplete drone deliveries to offshore support vessels anddry bulk carriers,” he said.

Starting smallIt was back in 2017 that the team was first struck with theidea of using drones to perform the often dangerous workundertaken by boarding agents. “We conducted a small-scaleparcel delivery demonstration of a pipe from shore to arescue boat 500 metres from shore, in Oslo during Nor-Shipping at our headquarters in Lysaker,” said Johansen. “Theresponse from the invited customers and guests was verypositive, so we started to evaluate and identify possible pilottrial locations, to deliver actual parcels to working vessels.”

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FEATURES

“We have gained many insightssince we embarked on thisjourney and it definitely requiresa great deal of effort to make apilot trial like this happen.”

A Singapore testbedSingapore was chosen as one of the busiest ports in theworld in terms of shipping tonnage, and one ofWilhelmsen’s highest volume ports in terms of thehusbandry services the company handles. This gaveaccess to a huge customer base and large numbers ofvessels, which is beneficial for any pilot trial.

“But besides that, Singapore is a good testbed for newtechnologies and initiatives, as it benefits from greatsupport from the authorities,” said Marius Johansen.“The Maritime Port Authority of Singapore (MPA) and theCivil Aviation Authority of Singapore (CAAS) have apassion for change and genuine willingness to test newideas.”

Large scale trialsAgency by Air is truly a one-of-a-kind project. Whiledrone delivery is not a novel idea in the maritimesector, it has never been trialled on such a scale. Trialsfrom tugboat to ship have been explored, but shore-to-ship delivery of this range has never been exploredbefore. “This trial is not only the first in Asia, but alsothe first in the world. In addition, the project required

us to work simultaneously with both the aviation andmaritime regulators, which is unusual to say the least.Having a company like Airbus on board as a partner ishardly run of the mill, either!”

A Singapore testbedWilhelmsen says successful implementation of delivery bydrones will depend on a number of factors.

The first is technology – there are challenges such aslimited battery life and difficulties operating in poorweather, but original equipment manufacturers andmajor shippers are keen to improve the technologyfurther and extend the reach and scope of what can bedone with drones, he says.

Second, regulations from both the aviation andmaritime authorities can be a big obstacle when it comesto rolling out a drone delivery service globally, because theregulations are different in every country.

Third, organisations and authorities must managechange effectively. “Change is not always welcome, itmakes you wary. A change of culture and mindset needsto be driven from top management,” said Johansen.

He added: “We have gained a lot of insights since we

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FEATURES

embarked on this journey and it definitely requires a lot ofeffort to make a pilot trial like this happen. Especiallywhen it comes to implementing something new into theindustry, as we have to get the buy-in from variousstakeholders and convince them to make the change. Butthe biggest challenge has been aligning the variousrequirements from each stakeholder and getting to thepoint where all requirements are met. This is especiallydifficult in a small country like Singapore where theairspace and the sea space are extremely busy 24/7.”

Moving forwardDrone use is allowed in Singapore but there are laws to befollowed. A drone permit is required if the drone posespotential risks to the public or will be flown in a restrictedarea. All commercial drone activity requires a permit inplace before any commencement of flights.

Airbus obviously has considerable expertise in verticallift solutions, and all its systems comply with aviationstandards STANAG 4702. “Together we have workedclosely with the Aviation Regulator, CAAS, and MPA,because for a use case like ours that is new, there is noestablished framework, nor existing guidelines in place,”said Johansen.

There were security concerns raised by SingaporeHome Affairs and Customs about verifying the contentsof parcels. “Our Singapore office warehouse is ISPScertified, so there is no implication if we were to deliverparcels out from the warehouse directly. However,

further exploration and discussion on security andCustoms clearance is needed for parcels sent from theship back to shore,” he said.

Moving forwardIn the pilot trial, the first few flight tests will be made tooffshore supply vessels, before deliveries are madefurther down the anchorage to bulk carriers.

Once initial testing is finalised, the aim is to do up to 100flights. “Upon completion of the 100 flights, we willvalidate the feasibility and develop the requiredtechnologies such as ship localisation, precision landing,beyond visual line of sight communications, etc. If theresults are positive, we will definitely have a potentialcommercial launch.”

Other port authorities are very keen to work withWilhelmsen to bring this service to their port once thetechnology has been validated, said Johansen. “Weoperate our agency business globally, so there are anumber of other high-volume ports which have thepotential to deploy such services.”

Drone technology in the maritime industry may still bein its infancy – but if we were to ‘fast forward’ ten years,does he think drone deliveries will be standard in ports?

“In the maritime environment, drones can be used forsecurity, environmental surveillance, to supply vesselswith spare parts, for emergency missions, such as searchand rescue, and for ship and cargo inspection. Thetechnological potential with drones is immense, and webelieve their use will only grow with time. It is likely thelarger volume, more technologically focused ports andterminals will be the early adopters, integrating drones insome way, shape or form, into their operations.”

Maritime service delivery can be safer, more productiveand more responsive by replacing manual delivery ofparcels by agents via launch boat with autonomousdrones, says Johansen.

However, he concludes: “As innovative, efficient and,indeed, exciting as drone delivery is, drones arenevertheless just another tool. Their application in aworking port environment depends on our industry-leading agency expertise and intimate working knowledgeof port operations.”

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FEATURES

“We believe the deployment ofdrones will only grow with time.It is likely that the largervolume, more technologicallyfocused ports and terminals willbe the early adopters,integrating drones into theiroperations.”

Enhancing Singapore’s maritimeinsurance offerings

The first Singapore-based national mutual war risksinsurance, the Singapore War Risks Mutual (SWRM) waslaunched in 2015 by P&I underwriter, The Standard ClubAsia. In a short span of four years, the cover exceededexpectations with close to 800 ships insured.

Available to members of the SSA irrespective of the flagof the ship and non-members whose ships are registeredin Singapore, the cover includes P&I war risks, hull warrisks, detention and diversion expenses, sue and labourand discretionary insurances.

Headed by the SSA and supported by the MPA, aProject Steering Committee was set up to look into a newset of Insurance Conditions with the aim of bridgingcoverage gaps and updating and simplifying existing warconditions available in the market.

The results of this endeavour are the first insuranceconditions to be written from a shipowner’s perspective,addressing important risks that are felt by the globalshipping community. Local expertise will be developed toensure that the conditions are updated and remainrelevant to the industry.

Michael Phoon, Executive Director, SSA, explains: “TheSSA’s efforts to craft and develop the Singapore War RisksInsurance Conditions are our endeavours to always keepthe shipping community updated on global trends andchanges. Change is a constant. And we need to navigatethe future for our members.

“The current established War Risks insurances offeredby Japan, UK, Greece and Norway were crafted years ago.But with all good intentions, no one would have imaginedthe growing and pervasive adoption and installation oftechnology gadgets and the use of instruments such asECDIS, email applications, smart sensors etc. We are nowseeing technology applications being more ubiquitousand being installed into ships. This leads to cyber securityissues on board vessels.

“How does insurance cover these emerging threats?”asks Mr Phoon. “The SWRIC bridges coverage gaps andwill constantly reflect and include tomorrow’s newtechnology for the shipping industry.”

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NEWS

Dr Lam Pin Min, Senior Minister of State for Transport and Health,announced two important initiatives for the maritime industry atthe SSA Lunar New Year Cocktail Reception, on January 22, 2019 atthe Raffles City Convention Centre. The initiatives, the newSingapore War Risks Insurance Conditions (SWRIC) and thedevelopment of an inter-operability framework for electronic tradedocuments for the maritime and trade industries, strengthenSingapore’s standing as a leading global maritime hub.

Two Important Initiatives Annouced

Caroline Yang, CEO Hong Lam Marine Pte Ltd

"The conditions takeimportant stances onnew risks where theinsurance industry isgrappling with findingsolutions. This will nodoubt trigger importantand useful discussionswithin the industry andprovide progressiveinsurers with the opportunity of embracing risks andmaintaining relevance on issues that are importantto shipping today."

Gina Lee-Wan, Chairperson of the SSA Legal andInsurance Committee, who has advised on theproject, says that the words used have beendesigned to provide the most comprehensivecoverage of any war risk conditions available andsignificantly reduce the chances of a claim fallinginto a gap between hull and war insurance. “TheSingapore conditions are wider than the Nordicplan and offer better connectivity with the hullpolicies of London and other internationalinsurance markets, avoiding gaps in cover,” sheexplains. “Factors connecting the hull and war riskscover include the law and jurisdiction of the formerapplying to the latter, with conflict resolutionfurther helped by legal expense cover if clarifyingwhich policy responds to a loss proves necessary.”

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NEWS

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Lisa Teo, Executive Director, Pacific InternationalLines Ltd

"In war and war like situationsowners are unlikely to haveprior experience or anysignificant degree of control,yet consequences can bedisastrous. It is importantunder such circumstancesthat insurance coverage is asrelevant and comprehensiveas possible. I am very pleasedwith the work Singapore has carried out to ensure this isthe case."

“The SSA’s efforts to craft and developthe Singapore War Risks InsuranceConditions are our endeavours to alwayskeep the shipping community updatedon global trends and changes.”

New partner bolsters digitalisation ofelectronic Bills of Lading

Back in January 2018, at the launch of the Sea TransportIndustry Transformation Map, the Maritime and PortAuthority of Singapore (MPA), SSA and SingaporeCustoms signed a MoU to look jointly into thedigitalisation of trade and maritime documentation, suchas Bills of Lading (BL), in the industry.

Since the signing of this MoU, the industry has seenprogress with successful electronic Bills of Lading (e-BL)trials amongst consortiums led by two shipping lines –one by APL and the other by PIL and IBM. The trialssimplify existing processes as well as leverageblockchain technology to bring various trading partiestogether to support information sharing andtransparency.

To facilitate inter-operability of the solutions developedby the various consortiums, the members havewelcomed a new MoU partner, the Info-communicationsMedia Development Authority (IMDA), to develop a newinter-operability framework.

The MoU signing ceremony took place at SSA’s LunarNew Year Cocktail Reception and was witnessed by DrLam Pin Min, Senior Minister of State for Transport andHealth. “Working together with IMDA, the industry canexpect to see different digital ecosystems inter-operateseamlessly with efficient exchange of electronic tradedocuments,” he says. “The work will entail thedevelopment of a set of governance and legalframeworks, technical standards and inter-operabledigital enablers.

“The close partnership between the Government, theindustry and SSA offers a unique competitive advantagefor Singapore. We must continue to strengthen thispartnership. This will enable Maritime Singapore to stayrelevant and competitive,” adds Dr Lam.

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NEWS

“The close partnership betweenthe Government, the industry andSSA offers a unique competitiveadvantage for Singapore.”

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HAPPENINGS

Mr. Esben Poulsson, SSA President kickstarted theevening’s celebrations, thanking all guests andmembers who have continuously supported SSAevents. He shared the strategic initiatives for theyear 2019, which include the publication of theSingapore War Risk Insurance Conditions (SWRIC)and the adoption of a Memorandum ofUnderstanding for Electronic Bills of Lading (or e-BL).

Guest of Honour Lam Pin Min thanked theindustry for driving the Sea Transport IndustryTransformation Map. He also formally launchedthe Singapore War Risks Insurance Conditions andwitnessed the signing of a MoU amongst theMaritime and Port Authority of Singapore (MPA),Singapore Customs, the Info-communicationsMedia Development Authority (IMDA) and SSA, to

More than 600 maritime professionals gathered at theRaffles City Convention Centre to usher in a prosperousYear of the Pig on January 22, 2019.

The maritime community, along with Guest-of-Honour,

Minister Lam Pin Min, Senior Minister of State, Minister forTransport and Minister for Health, were wowed by theacrobatic performances from the Lion Dance troupe fromYiwei Athletic Association.

SSA Lunar New Year Cocktail Reception 2019

HAPPENINGS

develop an inter-operability framework forelectronic trade documents. The developmentof Electronic Bills of Lading (e-BL) will enable theseamless exchange of electronic tradedocuments within and across different digitalecosystems.

During the evening Esben Poulsson welcomedfour new members into the SSA community:Thenamaris Singapore Pte. Ltd., Trafigura,Candina Group and I.T.I. Corporation Pte Ltd.

As always, the cocktail reception wasoversubscribed, with members enjoying thecamaraderie that is unique in Singapore’sshipping industry.

We would also like to thank the following sponsors for theirgenerous contributions towards the cocktail reception: • Braemar ACM Shipbroking• Jurong Port Pte Ltd • Maersk Singapore Pte Ltd• Ocean Tankers Pte Ltd• PSA Corporation Ltd• The Shipowners’ Mutual P&I Association (Luxembourg) Singapore BranchWishing all our members a happy, prosperous and smoothsailing year ahead!

,

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YEG - HAPPENINGS

YEG Lunar New Year 2019

More than 100 participants ushered in a year of goodfortune with a Lohei-by-the-garden at RedDot BrewHouse@ Dempsey on February 13, 2019. This was accompaniedby ‘Çai Shen Ye’, the tossing of showers of ‘gold’ coins andblessings for a prosperous year!

The networking session saw many exchanging greetingsand tucking into a sumptuous spread of pizza, porkknuckles and satay, washed down with hearty mugs ofaward-winning home brewed beer. SSA would like to wishall our YEG members a successful year ahead!

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ORDINARY MEMBERS

ASSOCIATE MEMBERS

ABB (ABBN: SIX Swiss Ex) is a pioneering technology leader in power grids,electrification products, industrial automation and robotics and motion,serving customers in the utilities, industry and transport & infrastructureglobally. In Marine & Ports, ABB is transforming the industry throughelectrical, digital and connected solutions. ABB’s innovative technologies areredefining the future, bringing new levels of reliability, efficiency andsustainability to shipping and making our ports and terminals safer, greenerand more productive. ABB operates in more than 100 countries with about147,000 employees. www.abb.com

Thenamaris Singapore Pte. Ltd. provides commercial management services tothe Thenamaris (Ships Management) Inc. managed fleet trading in the Asiamarket. Thenamaris is a global ship manager of high specification modernocean-going vessels. The total fleet under management currently comprises63 oil tankers, 19 bulk carriers and three containerships while ThenamarisLNG fleet comprises three LNG carriers and four LPG carriers.

Founded in 1993, Trafigura is one of the largest physical commodities tradinggroups in the world with a turnover of over USD180 billion in 2018. Thecompany’s ocean freight services provide reliable transport to small, mediumand large internal and third-party customers using a combination of time andvoyage charters.

Last year, Trafigura handled over 4,100 wet and dry fixtures globally.It is alsobuilding on its significant chartered wet and dry freight fleet by adding new-build crude oil and product tankers to extract the full value of the cargoinfrastructure. From early this year, Trafigura’s Wet Freight Shipping book willstart to take delivery of 39 new tankers constructed in South Korea and Chinaon a bareboat charter basis. These will supplement the company’s currentportfolio of leased tankers.

Candina Group has a long shipping business history, dating back to the year1929, when it was first established as a company owner and shipping agent.All the experience built up throughout these years has consolidated thistraditional family company as one of the most prestigious companies in themanagement, training and screening of marine personnel.

I.T.I. Corporation Pte Ltd has been the holding company of I.T.I. Group ofSubsidiary Companies since 1978.

It is also a venture capital firm having a strong Southeast Asia presence, beingheadquartered in Singapore.

Its subsidiary companies focus on servicing the shipbuilding, ship repair,shipping fleet supplies and oilfield industries.

NEW MEMBERS

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Course Title Start Date End Date Duration SSA Non-SSA Members Members

Introduction to Mass FlowMetering (TR48)

Introduction to Shipping(Masterclass)

2 Days(9.00am – 6.00pm) $642.00 $963.00

$428.00 $642.001 Day(9.00am – 6.00pm)

09/04/19 10/04/19

10/04/19 10/04/19

Maritime Labour Convention2006 - The ConcisePerspective

1 Day(9.00am – 6.00pm) $385.20 $577.8017/04/19 17/04/19

Basic Bunkering Practices(SS600 & TR48)

$856.00 $1,284.002 Days(9.00am – 6.00pm)

1.5-D Refresher Course forBunker Surveyors and BunkerCargo Officers - including MFM

$1,284.00$856.00

17/04/19 18/04/19

17/04/19 18/04/19

Principles of ShippingOperations & Practices

1.5 Days17: (9.00am – 6.00pm)18: (9.00am – 1.00pm)

$1,251.90$834.6013 Evenings from 30/04/19 till 06/06/19Kindly call to enquire

Find out more about our other courses available at http://www.ssa.org.sg/training/course-list.html or contact Kuna at 6305 2267 or email [email protected]

COURSES OPEN FOR REGISTRATION FEES* (SGD)

Executive Development Programme

Training Calendar | APRIL – JULY 2019

EXECUTIVE DEVELOPMENT PROGRAMME

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Course Title Start Date End Date Duration SSA Non-SSA Members Members

Marine Insurance

Compliance of the IMDGCode for Transport ofDangerous Goods

3 Days(9.00am – 6.00pm) $963.00 $1,444.50

$481.50 $722.25

15/05/19 17/05/19

29/05/19 30/05/19

Understanding Import/ExportTechniques & Documentation

2 Days(9.00am – 6.00pm) $601.34 $902.01

*Fees subject to prevailing GST. MCF Training Grant is available for eligible participants. MCF Training Grant is not available for the courses – “UnderstandingImport/Export Techniques and Documentation” and “Effective Written Communication in the Shipping Industry”. Please refer to www.mpa.gov.sg/mcf formore information. Dates may be subject to change. Download the course registration form at:http://www.ssa.org.sg/images/ssa/pdf/Course%20Application%20Form-20Sept2016.pdf and for further enquiries, please contact Kuna at 6305 2267 or [email protected]

30/05/19 31/05/19

Container Management &Practices

$481.50 $722.252 Days(9.00am – 6.00pm)

2 Days(9.00am – 6.00pm)

Introduction to LNG Bunkering

1 Day(9.00am – 6.00pm)

$642.00$428.00

13/06/19 14/06/19

19/06/19 19/06/19

Principles of Shipbroking &Chartering

2.5 Days19: (9.00am – 1.00pm)21: (9.00am – 6.00pm)

$963.00$642.0019/06/19 21/06/19

COURSES OPEN FOR REGISTRATION FEES* (SGD)

Introduction to Shipping(Masterclass) $642.00 $963.002 Days

(9.00am – 6.00pm)03/04/19 04/04/19

Effective WrittenCommunication in theShipping Industry

$722.25 $1,082.843 Days(9.00am – 6.00pm)08/07/19 10/07/19

Basic Bunkering Practices(SS600 & TR48) $856.00 $1,284.002 Days

(9.00am – 6.00pm)10/07/19 11/07/19

Introduction to Mass FlowMetering (TR48) $428.00 $642.001 Day

(9.00am – 6.00pm)24/07/19 24/07/19

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EXECUTIVE DEVELOPMENT PROGRAMME