Periodic Reporting for period 1 - VDRConnect (VDRConnect: VDR-based vessel telematics solution)
Berichtszeitraum: 2016-06-01 bis 2016-11-30
Danelec Marine ambition is to become the leading player in automatic data collection and performance analysis for vessels, by introducing a disruptive low-cost and low-risk telematic system for vessels. Our vision with our disruptive solution is to bridge the big data gap that is currently hampering the maritime transport industry in exploiting the full potential of data-driven innovation. Danelec’s novel solution promises to be the cornerstone technology for fuel savings in the maritime industry with expected annual savings over 150,000 USD in fuel expenses per vessel. If the entire world fleet of vessels started using the solution, over 35 million tonnes of CO2 would not be thrown into the atmosphere annually.
Danelec forecasts to achieve cumulated revenues of over €35M with net profits of €21M within five years after market rollout. The present feasibility study represents a key step towards the implementation of our overall innovation project, the primary goal of which is to reach the market with the VDRConnect solution through full-scale demonstration of the technology’s benefits. Through the large number of contacts with large shipping companies, the demand for the intelligent telematics system was clearly verified. Our study has shown that the above ambition is realistic if a focused route-to-market strategy is followed.
Danelec forecasts to achieve cumulated revenues of over €35M with net profits of €21M within five years after market rollout. The present feasibility study represents a key step towards the implementation of our overall innovation project, the primary goal of which is to reach the market with the VDRConnect solution through full-scale demonstration of the technology’s benefits. Through the large number of contacts with large shipping companies, the demand for the intelligent telematics system was clearly verified. Our study has shown that the above ambition is realistic if a focused route-to-market strategy is followed.
During the feasibility study we have: • Completed a detailed market investigation for each of our envisioned initial markets, i.e. Scandinavia, Germany, Benelux, France, Greece, Cyprus and Turkey; • Realized that Greece has the larger market potential for VDRConnect with over 4700 eligible vessels for our system; • Observed a currently low (4%) market penetration for vessel telematics systems, for which we expect a CAGR over 28% between 2017 and 2027; • Defined the most suitable pricing for VDRConnect as 5000 EUR for the annual subscription fee; • Documented a comprehensive regulatory strategy for VDRConnect, which implementation is ongoing and should be finalized before planned large-scale demonstrations in Phase 2; • Extended our value chain, particularly in terms of possible analytics tools that may be used by VDRConnect; • Further developed and enhanced our business plan based on our findings during the feasibility study;
VDRConnect is a disruptive idea to the maritime shipping industry, which is currently facing a crisis that calls for savings, particularly in fuel expenditures as it comprises 80% of a vessel OPEX. Unlike other telematics systems for vessels, VDRConnect collects data from the already existing infrastructure of sensors present on all vessels through the vessel’s Voyage Data Recorder (VDR) – a “black box” for vessels. The solution will allow for a widespread adoption of automatic data collection and big data analytics for vessels – thereby contributing for resource efficient maritime transport system. If, hypothetically, the entire global fleet of vessels started using VDRConnect, the global shipping industry would save approx. between 7 and 14 billion USD per year in fuel costs. This would also sum to a total ~35 to 71 million tonnes of CO2 that would not be thrown into the atmosphere by the maritime shipping activity.At the same time, VDRConnect provides an attractive business case with sound and realistic economic benefits to the SME, with a range of additional, positive societal benefits such as job creation – with an expected 25 additional employees at Danelec in 2024.