Market Report Maritime Technologies in Singapore The Maritime Industry Transformation in Singapore - opportunities for Norwegian technology companies Contents 1.0 4.0 7.0 Forewards 4 Green Shipping 42 Aquaculture Executive Summary 7 4.1 LNG as technologies 74 maritime fuel 46 7.1 Aquaculture In Summary 50 Singapore 75 Summary 81 7.2 Aquaculture in 2.0 5.0 Southeast Asia 85 The Leading Port Technologies 56 .0 Maritime Capital 5.1 Port of Singapore 57 Of The World 12 8 5.2 Intelligence: 2.1 Outlook For Digitalization Marine, Maritime Singapore’s and Data 90 Maritime Management 62 DQG2ɡVKRUH5 ' 8.1 Norway – Industry 16 5.3 Energy And 2.2 Norway and Singapore Environmental Maritime Singapore Sustainability: 63 – Ocean Partners 18 Research Summary 65 Collaboration 98 8.2 Singaporean Maritime R&D 3.0 6.0 Stakeholders 100 Smart Shipping 22 Ocean Appendix 106 3.1 Digitalization 25 Technologies 66 3.2 Automation & 6.1 Technology Robotics 27 Centre for 2ɡVKRUH 3.3 Data & Analytics 29 and Marine, 3.4 E-Navigation 31 Singapore 68 3.5 Autonomous 6.2 Ocean energy 71 Vessels 32 Summary 72 3.6 Maritime Cyber Security 33 Summary 40 Maritime Technologies in Singapore 1.0 Forewords 4 Maritime Technologies in Singapore Forewords Norway and Singapore have two There is a lot to build on. of the world’s most comprehensive Commercially, our maritime maritime clusters. Thankfully, we communities are fully integrated. understood a long time ago that we In maritime policy and vision are stronger together - our maritime for the future, our countries are cooperation dates back almost 200 fully aligned. In research and years. Today, a complete cluster of development, our collaboration is Norwegian controlled companies marked by trust and longstanding forms part of Singapore’s vibrant personal and institutional ties. maritime community. The ocean space holds great We are both advanced nations opportunities for countries that that competes not on price, but on excel in the new and existing ocean Tormod Cappelen Endresen quality, technology and innovation. industries. Few countries are better In the face of challenging markets placed to pursue these opportunities Ambassador of Norway to and increased competition, it is than the ocean partners Norway and Singapore 2012-2017 P\ɤUPFRQYLFWLRQWKDWZHVWDQG Singapore. to gain from an even closer co- operation. In some market segments and capacities, we are friendly competitors. That does not preclude that we team up in the many areas where we have complementary strengths. I thank the authors of this report for their attempt to map and analyse these areas. 5 Maritime Technologies in Singapore Forewords Throughout history, oceans global competitive edge. A relevant and seas have been vital conduits knowledge base is crucial for making for trade and transportation. the right choices and strategies for Around 70% of the global surface developing solutions to meet future is covered by water. There is a customer needs. great focus on the necessity of exploring, exploiting and utilizing An important part of Innovation a larger share of the Earth’s marine Norway’s role is to uncover market resources in a future perspective. opportunities and facilitate market We are talking about sustainability access for Norwegian industries LQPDULQHWUDQVSRUWDWLRQɤVKDQG through our international presence food production, energy generation and cooperation. Bilateral and mineral extraction. In the FRRSHUDWLRQLQWKHɤHOGVRIVFLHQFH context of ocean health, the need for and technology, research and sustainable ocean development has education, industry and government Torunn Aass Taralrud never been stronger. are an integral part of our work. The report “Maritime Technologies Director Norway’s living standard and in Singapore” is carried out in Innovation Norway prosperity development has at a accordance with this. Singapore large extend been based on our rich natural resources and through Norway and Singapore enjoy a utilization and development of long-time maritime collaboration our industries in shipping, oil and that has strengthened both gas and aquaculture. In parallel, countries’ maritime technology and knowledge, experience and new competence clusters. On this basis, technologies have developed in we look forward to stay as a partner line with the needs; radical and with Singapore to continue our incremental innovations and HɡRUWVWRGHOLYHUWKHPRVWLQQRYDWLYH transformation of expertise from one DQGKLJKWHFKVROXWLRQVWKDWEHQHɤW sector to another. the maritime industry. The good relationship and trust between our More than ever, Norway and WZRQDWLRQVEHQHɤWERWKSDUWLHVDQG Norway’s business community relies will serve a strong basis for a long on building on these advantages in lasting bilateral collaboration. order to maintain a leading position and to ensure an international and 6 Maritime Technologies in Singapore Executive Summary Executive Summary The Norwegian think-tank Menon the maritime sector as part of the opportunities for Norwegian companies Economics ranked this year Singapore governments S$4.5 billion Industry WKDWFDQRɡHUFRPSHWLWLYHVROXWLRQVWR as The Leading Maritime Capital in Transformation Programme. The aim meet the new problem statements in the world for the 3rd consecutive year. is to transform Singapore’s maritime the industry. Singapore has the world’s second industry from transhipment and largest container port and the busiest manufacturing-centred to more The objective of this report is to transhipment hub with 130,000 vessels service, value-adding and knowledge- identify the trends and strategies for entering its ports annually, connecting driven industries. This must be done the development and transformation of Singapore to more than 600 other by neutering talent, innovation and WKH6LQJDSRUHPDULWLPHDQG2 0 ports in 123 countries. At any time, entrepreneurship; inventing and RɡVKRUHDQGPDULQH LQGXVWU\DQG there are more than 1,000 vessels in its embracing new technologies and connect these trends to opportunities port and harbour. Singapore continues not at least connecting industry, of engagmeent for Norwegian to be the world’s top bunkering port research institutions, universities and technology and services companies. and is recently building up capacity to government in a positive “knowledge The report and analysis is based be one of the leading LNG bunkering spiral”. ODUJHO\RQWKHVSHFLɤFURDGPDSVDQG ports in Asia. The maritime and port strategies from the various relevant industries provide more than 170,000 The relationship between Norway governmental agencies, company jobs and contributes to 7% of the Gross and Singapore is often mentioned as reports, media coverage and on Domestic Product. The maritime “an ocean partnership”. Singapore interviews with key stakeholders in the industry cluster includes international has been the preferred location for Singaporean and Norwegian maritime conglomerates like Keppel Corporation Norwegian shipping and ship services eco-systems. and Sembcorp, international port companies for well over a century, operator PSA Corp and more than and Norway has used Singapore yards The report is structured into 3,500 maritime companies covering for their oil rigs and specialty vessels ɤYHPDLQWKHPHV6PDUW6KLSSLQJ the entire value chain. IRUWKHRɡVKRUHRLO JDVLQGXVWU\IRU – covering digitalization and decades. Today there are around 200 computerized technologies; Green Singapore’s maritime industry Norwegian companies in Singapore Shipping – technologies related has been severely hit by the latest ZLWKLQVKLSSLQJɤQDQFLDOVHUYLFHVDQG WRHQHUJ\HɢFLHQF\DQGHPLVVLRQ year’s downturn in global shipping ship building/maritime equipment. The reduction; Port Technologies and DQGRɡVKRUHVHFWRUVGULYHQE\ORZRLO substantial Norwegian engineering Ocean Technologies with a special prices and sluggish investments in the and equipment company cluster discussion on aquaculture technology, RLODQGJDVVHFWRU7KHRɡVKRUHDQG has a strong standing with the yards DQGɤQDOO\DGLVFXVVLRQRQUHVHDUFK PDULWLPHLQGXVWU\VXɡHUHGDGHFOLQH in Singapore, engaging especially collaboration. For each theme, we of 15% from 2015 to 2016, and another in speciality vessels and rigs for DLPWRFRQQHFWWKHVSHFLɤFSUREOHP 11% decline last year. The industries Norwegian owners and for arctic and statements and market needs in lost 9,900 jobs from 95,500 in 2015 to North Sea conditions. Furthermore, Singapore to Norwegian expertise and 85,600 at the end of last year. However, 6LQJDSRUHDQG1RUZD\LVEHQHɤWLQJ VROXWLRQRɡHULQJVIRUH[DPSOHZLWKLQ The Singapore government is taking a from maritime research and technology DXWRQRPRXVYHVVHOVHOHFWULɤFDWLRQRI proactive role to support and revitalize development cooperation over the last maritime transport and aquaculture the struggling maritime industry. The 20 years. technologies. Maritime and Port Authority (MPA) is developing an Industrial Transformation The recent Industry Transformation Map covering innovation, productivity push from government and industry skills and internationalisation for opens for new and enhanced 7 Maritime Technologies in Singapore Executive Summary Chapter Chapter 3 Smart Shipping 4 Green Shipping The new wave of of data, real time monitoring Green Shipping is about Norway’s decade long technology in the ship and analysis. reducing emission from leading position within the operations industry is very the shipping, harbour and maritime LNG value chain is similar to Industry 4.0. We We also highlighted port activities in Singapore. well recognised among the call this Shipping 4.0. The the various