FRENCH MARITIME CLUSTER COMMITTEE SINGAPORE

How could French companies match the Singaporean maritime strategy for the coming years?

PREVIOUS STUDIES

2*Available on demand

2014-2015*

French Maritime Industry in the ASEAN

• Analysis of the South-East Asian Maritime sector

• Mapping of the French positioning in the region

2015-2016*

Singapore Maritime Strategy

• Mapping of the Singapore Maritime market, its strategy and main actors as well as its international presence

• Limited at Shipping, LNG and Deepsea Trends

2016-2017

Future Singaporean Maritime Strategy and French companies

• Analysis of future trends and challenges faced by Singapore in 3 main topics: Environmental, Technology, Education.

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Asian Strategy Challenge

ESSEC SMIB & French Maritime Cluster

How could French companies match the Singaporean maritime strategy for the coming years?

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The main sectors we have focused on

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20 interviews with professionals within the maritime sector

3 MAIN TOPICS

Green Initiative

New technologies & Future trends

Education, Recruitment & Marketing

GREEN INITIATIVE

Green Initiative, response to the IMO regulation

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▪ Maritime and Port Authority of Singapore (MPA)▪ Invests up to S$100 million over 5 years in the Maritime Singapore Green Initiative

Green Ship Program; Green Port Program; Green Technology Program▪ Economic: companies which apply can enjoy reduction of initial registration fees and other costs▪ Political: improve the image of the company in terms of green involvement and social

responsibility

▪ Economic: raises important costs of transformation and adaptation for existing ships▪ Political: as there are currently no penalties attached to the regulations of IMO, companies do

not apply systematically them and a fortiori the Green policy:

Sponsor

Opportunities

Challenges

US & Baltic sea: Nox regulation2017: Ballast regulation2020: MEPC Sulfur regulations (0,5%/l)2022: CO2 regulation

TECHNOLOGY & FUTURE TRENDS

Fertile EcosystemMaritime

Centre

Initiatives

Call for Proposals

Singapore is anticipating – Fertile ecosystem

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Singapore opted for a right mix between Public and Private entities to sharpen its maritime strategy

R&D

ICT

Port Technology

OME Technology

Ship Technology

Importers & ExportersPetro-chemicals

Storage warehouse

Port & Terminals OpShip bunkering

Pilotage & Tug services

Ship Broking & Chartering

Ship Owning/OperationShip Management

Ship Agency

Marine Equipment Manufacturing

Maintenance, RepairOffshore Logistics

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Singapore is anticipating – Investing on innovation and technology

3 major axes of development to become the Global Maritime Hub

Big Data Analytics

Propulsion

Communications

Human computer Interaction

Advanced Material Robotics

Smart ship

Automatization

Shipbuilding

Autonomous System

Warehousing

Energy Management

Sensors

Advanced Manufacturing

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Technology that would disrupt the Maritime World

EDUCATION, RECRUITMENT & MARKETING

STUDENTS

WORKERS EXECUTIVES

MARITIME EDUCATION IN SINGAPORE

TRAININGS

• MPA Academy

SPONSORPHIPS

• Maritime Custer Fund Scheme

• MCF-Manpower• MCF-Development • MCF-Productivity

SCOLARSHIPS

GOVERNMENT RELATED▪ MPA sponsorship▪ MaritimeONE▪ Howe Yoon Chong PSA Endowment Fund

ASSOCIATIONS▪ ASMI▪ Tripartite Maritime Scholarship (TMSS)

CORPORATIONS▪ Keppel Group Scholarship▪ Sembcorp Marine Lua Cheng Eng scholarship

Poly

tech

nic

s

Un

iver

siti

es14

Maritime Education in Singapore

ACADEMIC WORLD CORPORATION PARTNERS (1)

5 main Academic Partners

+ Others * UK (5%), Thai (3%), Germany (3%), China (3%), Canada (3%)

(1) Based on MaritimeONE website and 37 companies

76%

8%

16% SG

Danemark

Others

INTERNATIONAL PARTNERSHIPS

…

*

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Maritime Education in Singapore – International Partnerships

Right people & Trainings

Attract

Being visible

Retain

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French Corporations’ Main Challenges in Maritime Education in Singapore

GREEN INITIATIVE – INSIGHTS

RECOMMENDATION #1:SCRUBBERS

LIMITS

▪ High costs of implementation: between 5 to 10 M$

▪ Scrubber regulation by 2023

▪ The environmental benefits can be discussed

HOW IS IT A GOOD INVESTMENT?

▪ It reduces the switching cost to an entirely new fuel system

▪ It is a cheaper solution than low sulphur fuel

WHAT IS IT?

▪ Device using sea water and chemicals to remove sulphurfrom engine exhaust gas

Could be interesting for shipbuilders, as scrubbers can

be included in new ships or retrofitted into existing

vessels in the shipyards. Useful for ship-owners in the

short run.

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RECOMMENDATION #2: LOW SULPHUR FUEL

LIMITS

▪ Significant cost of refining fuel and converting it into

low-sulphur fuel

▪ Issue of unavailability (unbalance between supply and

demand)

▪ Where will it be available?

▪ It still releases substantial NOx and PM

HOW IS IT A GOOD INVESTMENT?

▪ It requires limited initial investment costs

WHAT IS IT?

▪ It helps shipping companies to reduce their sulphuremissions

Total & CMA-CGM

▪ Agreement to provide solutions

reducing sulfur emissions through

Low sulphur fuel (0,5% and 3,5%

and LNG )

This solution could be interesting for oil & gas companies

and Shipowners in the long run19

RECOMMENDATION #4: USING LNGWHAT IS IT?

▪ Natural gas in liquefied form as a result of lowering the

temperature to below its boiling point of -162° Celsius LNG Bunkering Vessel in Zeebrugge (Belgium)

▪ JV (Gas4sea) between Nippon Yusen Kaisha

(NYK), Mitsubishi Corporation and ENGIE.

Classified by Bureau Veritas

▪ Building the world’s first LNG bunkering vessel

for refueling LNG-powered vessels at sea

LNG Bunkering Cooperation

▪ MOU between Total Marine Fuels Global

Solution and Pavilion Gas in Singapore, at the

international Gastech exhibition (Tokyo)

Could be interesting for Ship-owners in the long run, for

shipbuilder, for bunkering, energy

HOW IS IT A GOOD INVESTMENT?

▪ Asia houses the world’s largest importing country and

single importer. It is also a major producer

▪ Singapore’s goal is to be Asia’s LNG hub

LIMITS

▪ Lack of LNG fueling infrastructure across the major

bunkering destinations

▪ High costs of building LNG fuel ships and for the

additional safety measures for the storage

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RECOMMENDATION #3: R&D INVESTMENTS

WHAT IS IT?

▪ To find green innovations and technologies which comply

with IMO regulations

▪ To ensure green shipping practices and to contribute to

economic growth

DHL – incorporated sustainability in its corporate strategy

▪ Employ diverse carbon efficiency measures

▪ Environmental protection program “GoGreen”

▪ Partnership with the Singapore Management

University

CMA CGM – Marco Polo Vessel

▪ Exhaust gas by-pass system

▪ Ballast water treatment system

▪ Electronically-controlled Wärtsilä engine that can

reduce NOx emissions

▪ And a pipe plan to facilitate use of hyphenate low-

sulphur fuel

This solution could be interesting for all companies in the

maritime to improve green solutions through R&D

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TECHNOLOGY & FUTURE TRENDS – INSIGHTS

RECOMMENDATION #1

BE MORE CUSTOMER-FOCUSED

▪ Take advantage of the innovative environment in Asia

▪ Modularity & Adaptability to APAC Region▪ Be disruptive➢ Enable companies to monetize on high value services➢ TRAXENS – smart containers

TARGET: MOVE TOWARDS CUSTOMER-DRIVEN

▪ New types of customers: burgeoning Middle Class: 3 billion people = higher expectations (transparency, reliability, etc.)

▪ Consumers needs are opportunities▪ Sustainable and effective Supply Chain is key

CHALLENGE: A COST-DRIVEN INDUSTRY

▪ Huge fixed costs / low margin profit▪ Long & complex supply chain

This solution could be interesting for logistic companies,

start-ups, aerospace, defense

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RECOMMENDATION #2

TARGET: MORE TRANSPARENCY, SECURITY & INNOVATIONS

▪ Need for accountability and security▪ Invest in technology not to be outdated

CHALLENGE: A TRADITIONAL INDUSTRY

▪ Many family-owned companies▪ Under-estimation of the threat of new comers due to

high entry costs

SCALE UP THANKS TO DIGITIZATION

▪ Add value to both businesses & consumers services▪ Block Chain as a way to trace a product life cycle➢ Reap the benefits of being tech-oriented➢ Thales

Singapore joined in 2016 the R3 consortium and started to experiment block chain technology with MAS approval.

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RECOMMENDATION #3

TARGET: BE THE FIRST MOVER & COLLABORATE

▪ Take advantage of new technologies▪ Reach and develop new markets▪ Create an undiscovered need for the customer

CHALLENGE: AN OVERCOMING COMPLEXITY

▪ Rigid and secretive way of doing things is obsolete▪ Complexity can not be handled alone

DEEPEN PARTNERSHIPS

▪ Pre-competitive collaboration▪ Leverage power via co-financing to start to innovate▪ Foster Innovation ▪ Multiply MOU, JV with Singaporean fertile ecosystem➢ ST Electronics, Defense Science & Technology (DSTA) & CLS

to develop TELEOS-2 the next generation earth observation satellite

Signed in 2015 in order to improve data management

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RECOMMENDATION #4

TARGET: GET READY FOR THE CHANGE

▪ Digital approach of Maritime▪ Have the right people ▪ Be key players of this change

CHALLENGE: THE RISE OF THE FOURTH REVOLUTION

▪ Unprecedented change in labour skills▪ Emergence of Artificial Intelligence and robotics▪ Big shift in management and leadership roles

FOCUS ON DATA ANALYTICS AND NEW SKILLS

▪ Data management is key, learn to monetize it▪ Predictive analysis to forecast behaviours & trends▪ Train current & future managers▪ Attract data-scientists and talents of tomorrow➢ ECA group, Robotics

PSA strategic moves

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EDUCATION, RECRUITMENT & MARKETING – INSIGHTS

RECOMMENDATION #1

TARGET: CREATE TAILOR-MADE TRAININGS

▪ Create in partnership with local universities but also French Grandes Ecoles/Universities to develop the right programmes or corporations’ own Academy

▪ Offer scholarships mixed with hands-on experiences through apprenticeship or internships

CHALLENGE: CURRENT TRAININGS ARE NOT ADAPTED TO CORPORATIONS NEEDS

▪ Many academic programmes are available▪ They do not train the students to become effective and

independent managers or employees▪ Not enough hands-on experience within French companies

SOME EXAMPLES

➢ Llyod Register PhD➢ Keppel Offshore & Marine Scholarships at the Higher Nitec

Diploma and Undergraduate level, DCNS Master in Maritime Technology in Malaysia in March

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RECOMMENDATION #2

TARGET: INCREASE REPUTATION TRHOUGH EVENTS

▪ Take part in local maritime events and career fairs▪ Create your own events ▪ Partner with French companies through Maritime

clusters & French Chamber of Commerce▪ Invest in communication

CHALLENGES: LACK OF VISIBILITY & DIFFICULTY TO ATTRACT LOCAL TALENTS

▪ French companies are absent of most maritime events and career fairs

▪ Students are not aware of the quality and good performance of French corporations

▪ Lack of prestige = lack of local talents’ attraction

INSIGHTS

▪ Increase attractiveness aound a “French Touch”/culture29

RECOMMENDATION #3

TARGET: MOTIVATE & USE EASY TOOLS

▪ Conduct surveys and in-depth interviews to identify the elements of motivation for Singaporeans to stay in a corporation

▪ Communicate on the benefits of staying on the long run in a big group

▪ Value seniority (HR career management)▪ Use small income increase and regular status upgrades

CHALENGES: RETAIN GOOD EMPLOYEES & KEEP THEM INVESTED

▪ Singaporeans quit their job for competitors and small income increase of change in status

▪ Linked to frictional unemployment & “Mianzi” ▪ Do not overstay in the offices ▪ Cultural behaviours

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SYNERGIES31

Become more visible and adopt a strong French marketing strategy by:

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▪ Increase French companies visibility during theMaritime Week – Pavillon Créative France

▪ Organize your own ‘’French Night’’ and gatherthe main players of the maritime around Frenchcompanies

▪ COMMUNICATE in expert magazines such asWave, in Singapore newspapers and thoughsocial media

▪ ORGANIZE more conferences

▪ The Royal Norwegian Embassy in Singapore

▪ Celebrate the maritime links between Singapore andNorway and strengthen this partnership for the future.

The Norway Night

Be more involved in Singaporean associations to improve integration

Foreign companies are strongly present andmanagers are participating even as boardmember. French people are almost absent.French companies must fully integrate theSingapore Maritime ecosystem

Take the opportunity of the French agencies

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The French trade advisers (Conseillers du Commerce Exterieur )

Business France and Embassy services

BPI France

The French Chamber of Commerce in Singapore

French Maritime Cluster

▪ SMEs Need help to settle in the Singapore maritime market

▪ All companies benefits from developing synergies within the French business community in Singapore

▪ Sharing information between each sub-sectors

Conclusion

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Singapore is encouraging innovations through Labs and incubators supported by funds

Improve trans-sectors synergies & knowledge sharing (IT, digitaleconomy and Aerospace to Maritime)

Increase help from big corporations towards French SMEs

Defense companies are well integrated in Singapore’s ecosystem. Aninteresting example to study.

Final Proposals

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Create French Start-up incubator in Singapore

Settle a French Open innovation Lab in Singapore

Create a French Think Tank about the Maritime in Singapore

The final advice would be to follow Singaporean way of doing to enhance innovation in the Maritime

Synergies could be created in gathering strength of companies and entities, sharing common objectives, benefiting from Singapore ecosystem and funds for innovation