Drivers for more robust ferry connectivity include cost savings, safety, security and sustainability pressures
Inmarsat has published a new report on attitudes to digitalisation in the ferry market, drawing on interviews with 10 ferry owners by consultancy JG Maritime Solutions.
The Global Status of Ferry Digitalisation Report – Uncovering the Passenger and Operational advantage, authored by Ogilvy, also includes passenger ship findings from Digitalisation Uncovered – the Inmarsat-sponsored research project into digitalisation in global shipping launched in December 2020.
The report’s findings provide insights into the distinct pressures driving ferry digitalisation and an assessment of why and how higher-capacity satellite services can help control costs, create revenue, improve the passenger experience and help restore confidence in a sector severely affected by Covid-19.
Inmarsat director of market development - yachting and passenger, Les Shortall tells PST there are four main themes driving the transformation opportunities for connectivity: sustainability, operational efficiencies, safety and security, and a change in passenger expectations.
“The shipping world is under pressure to meet decarbonisation targets. Ferry operators are upgrading their propulsion systems and to get the best from the new technology and monitor them properly, they require a lot of data to come from these solutions. This is driving the need for more connectivity, to allow more data to come from the ship,” says Mr Shortall.
The second driver is about operational efficiencies. Mr Shortall says, “Ferry operators are always looking for opportunities to incrementally improve efficiencies and costs on a route. There has always been a drive to improve efficiency, but this has been intensified because of the pandemic where suddenly the passenger side of things reduced significantly. There is a huge added burden on the industry to cope with all these changes, so they must be even more agile. Operating efficiencies are key and in talking to operators for this report, many are investing in digitalisation technology.”
The third driver is safety and security. “Some of the operators we spoke to said safety was a huge priority for them, so improving the ability to collect and monitor systems on the vessel is key. The operator needs a real-time view of what is happening on each vessel and to see what the captain is seeing. This safety strategy is driving connectivity.”
Indeed, in the interviews for the report, interest was high in how broadband capacity can be used to enable situational awareness to transform ferry safety and move from simple reactive distress reporting to real-time proactive safety services. The interviews also highlight networked cyber security as a priority and welcome the introduction of IMO’s 2021 cyber security regulations.
Mr Shortall singles out the impact of security on connectivity needs. “You have to be extremely careful in how you get the data back to shore. It must be done in a cyber secure way and operators are rightly demanding about how data is taken off the vessel and how it is going to be protected. The threat from cyber is getting more intense and therefore while there is a need for more data from the vessel, the operator needs to make sure this is highly protected.”
And the fourth driver is about the change in passenger expectations. “Passengers expect connectivity when they are travelling, whether that is land or sea. And there are increasing expectations that they won’t just be connected, but there will be a quality connection,” says Mr Shortall.
Previously, bandwidth limitations meant the full potential of satellite technology had not been realised in the ferry sector – but this is not the case now. Mr Shortall tells PST, “There used to be a perception that satellite connectivity was quite expensive, but that has been changing rapidly and has certainly been accelerating in the last five to 10 years.
From the operating side of things, Inmarsat has increased the capacity of bandwidth and we have more satellites going up in the next two to five years. There is a lot we are doing to increase bandwidth availability and making it available on vessels. Vessels’ technology has been getting more compact and more capable – what you can do now with a satellite antenna is far more than what you could do 10 years ago.”
He says now there is not just the option for a primary connectivity service for a vessel but for secondary services as well. Mr Shortall adds, “Then operators can pull data from vessels without taking away from customer bandwidth.”
He underlines, “The message we want to share is that affordability and capacity have come a long way and it’s a good idea for the ferry industry to take a fresh look at what they can have and how to get there. Things like capex costs can put operators off, so that is why we offer lease services and more of a pay-as-you-go approach.”
Digitalisation Uncovered found that 25% of passenger shipowners said new revenues were a top three reason for digital investment, against a lower 17% for all shipowners. Similarly, 18% of passenger ship owners see creating new value for customers as a number one reason for digitalisation, versus only 13% of all owners. Furthermore, while 30% of all shipowners’ value digitalisation as a means of supporting compliance with regulations and certification, the figure for passenger ship owners is much higher at 43%.
40% of owner/operator interviewees in the report mentioned revenue generation as a primary investment driver.
Mr Shortall comments, “One of the key things from our research, was that improving customer experience was relatively higher for passenger ship operators and finding much more value for customers was a top priority for them. That contrasted with the wider shipping industry. We also found they have higher expectations and intend to invest more in one, three and five years in passenger digitalisation than the industry generally, so it is a very positive sign they recognise there is more to gain from it, and operators are prepared to make the investments they need.”
“Staying connected is not a nice-to-have, but a must-have,” the report says, with poor or patchy connectivity now having the potential to damage a ferry operator’s brand.
Commenting on this, Mr Shortall says, “A lot of the solutions that allow ferries to meet sustainability goals, such as using a hybrid propulsion vessel, need constant onboard connectivity so data can be monitored to provide reassurance it is operating as it should. That is one example from an operator point of view where you need always-on connectivity if you want the business to be at the top of its game.”
Another example is on the passenger side of things. “If a passenger wants to buy something on a modern ferry today, contactless payment is not just nice to have – it is almost a requirement because of Covid.”
Interviewees for the report recognised drivers to utilise digital solutions in implementing new Covid-19 protocols and inspire confidence with ‘biosafe’ vessels.
Mr Shortall sums up, “Continuous connectivity and unlimited data are the keys to unlocking further cost reduction, enhancing the passenger experience and boosting revenues.”
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