Compounding these difficult market conditions is the global shortage of maritime manpower and an increasing attention to the environmental impact of shippingMaritime industry is facing severe challenges. The last few years have been exceptionally volatile and the outlook for global trade remains uncertain. This uncertainty stems from the economic troubles in OECD countries as well as an expected slowdown in emerging markets like China.
At the same time, fuel prices are rising and financing has tightened. The over-supply of tonnage looks set to worsen as more new-builds ordered before the last global financial crisis are now coming on stream. Compounding these difficult market conditions is the global shortage of maritime manpower and an increasing attention to the environmental impact of shipping.
In this challenging climate, survival through innovation is both timely and highly relevant. Indeed, innovation is the only way for the maritime industry to overcome the key challenges and meet the increasing demands for greater efficiency, safety and environmental sustainability.
INNOVATIVE SPIRIT
Throughout history, innovation has played a key part in the maritime industry’s development, often introducing paradigm shifts. During the Industrial Revolution in the 19th century, the industry underwent a revolution when wind-powered wooden ships were replaced by larger steam-powered steel ones that could carry more goods over longer distances. The industry also transformed the nature of freight transport when it adapted the concept of containerization to shipping some 50 years ago.
More recently, the maritime industry has once again demonstrated this spirit of innovation with new merchant ship designs that can achieve greater economies of scale and fuel efficiency such as the Maersk “Triple-E” class 18,000 TEU container ships. Some companies are also exploring the use of alternative fuels like LNG to power their ships. On the landward side, we see ports making greater use of IT and technology with automated guided vehicles and remote-controlled cranes.
But innovation is not limited to technological advances. It is also about changing the way we do business. Service innovation is another way to build up the industry’s resilience, especially in the current difficult period. Some shipping lines, for instance, have developed new service offerings such as daily sailings on the Asia-Europe trade route. Others are finding new ways to stay lean by forging new alliances to consolidate shipping routes.
INNOVATIVE CULTURE
From these examples, we can see that the spirit of innovation remains strong in the maritime industry. However, it is important that the industry puts in place a conducive environment to nurture this culture of innovation. As a service industry, innovation must be a priority across all maritime enterprises from senior management to entry-level employees.
For example, the Singapore Government remains committed to fostering an innovative culture within our maritime cluster as part of our efforts to develop Singapore into a leading International Maritime Centre. We do so through a three-pronged approach: First, we invest in maritime R & D infrastructure; second, we formulate pro-innovation policies to meet changing business needs; and third, we develop maritime talent to drive innovation across industry.
INVESTING IN R & D
Every good idea needs an environment to incubate, test-bed and develop. As such, the Maritime and Port Authority of Singapore (MPA) has been working closely with our local Institutes of Higher Learning (IHLs) to build up maritime R & D infrastructure that can help the industry develop nascent ideas into concrete solutions. Today, our maritime research centres are engaged in a wide range of research from engineering design of marine and offshore technology to optimization of port operations and IT integration.
To enhance maritime R & D in Singapore, we established the Singapore Maritime Institute (SMI) in 2010. This institute optimizes the R & D capabilities across our maritime research centres and ensures that their work remains relevant to industry needs.
PRO-INNOVATION POLICIES
Our second prong is to develop pro-innovation policies and schemes. We recognize that innovation and R & D require significant investment but with no guarantee of success. While shipping companies are focused on their current bottom lines, it is also important that they continue to make long-term investments in R & D so as to meet future challenges.
To support maritime R & D efforts the MPA has set up an S$100 million Maritime Innovation and Technology Fund (MINT Fund) to provide co-funding support for R & D projects and test-bedding activities.
In recent years, an area that is rapidly gaining attention and where there is a strong impetus for innovation is environmental sustainability. Ship owners are increasingly looking towards green technology to not only reduce their emissions and improve efficiencies, but also to develop a green branding as a competitive advantage.
MARITIME TALENT
Our third and most important prong is to develop a core of local talent who can spur innovation and support the future growth of our maritime industry. To ensure a steady pipeline of talent, we have worked with our IHLs to launch several maritime-related degree and diploma courses.
Besides attracting good students, we also recognize that those who are already in the industry must continuously enhance their knowledge and deepen their skills.
I believe the call for innovation resonates across the maritime industry. I am confident that with the strong partnership between the Government and the industry, we can chart a clear passage through the rough waters and emerge as a more resilient maritime community. Then, the industry will be poised to seize the opportunities that the tide of recovery will bring.
(Excerpts of speech by Emeritus Senior Minister Goh Chok Tong at Bimco Annual General Meeting 2012, Perspective in Shipping Conference, Survivial Through Innovation)
No comments:
Post a Comment