13 torm pss


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13 torm pss

  1. 1. 1 A shipowner’s experiences with PSS 12/12-2013 Allan H Rasmussen
  2. 2. TORM’s share price development over the past three years… 2 Copyright © 2013 Dagbladet Børsen A/S
  3. 3. “Karo ya Maro” 3Mahatma Gandhi
  4. 4. The restructuring agreement with banks and T/C-in partners concludes TORM’s comprehensive finance solution 4 Deferral of debts Extension of maturities until 31 December 2016 New capital USD 100m in working capital over two years Newbuilding program Elimination of newbuilding program completed Internal cost and cash initiatives Implementation of cost and cash initiatives with a cumulative effect of at least USD100m over three years Realigning time charter portfolio T/C-rates adjusted to market level or contracts terminated Compre- hensive finance solution for TORM     
  5. 5. One TORM 5
  6. 6. When looking at the past year only… 6 Copyright © 2013 Dagbladet Børsen A/S
  7. 7. 7 FBB VSAT
  8. 8. The VSAT/FBB story – the past • TORM was first mover on implementing internet on board vessels • Lack of demand and competition on the market • Limited technical solutions available (high cost due to low demand) • Main purpose: Seafarer welfare • Initiative sponsored by TORM foundation • Buying and owning the equipment • No strategy as such was stipulated • A long term binding contract with customer penalty was entered • No SLA (Service Level Agreement) 8
  9. 9. The VSAT/FBB story – the future • Lease agreement on all equipment • VSAT + FBB combo unit • Monthly service charge/flat fee agreement • 99,5% guaranteed uptime with penalty clause • Future proofed solution by hardware upgrades included • Market price benchmark agreement • Cost volatility reduced significantly • Depreciation over three years, if TORM wants to opt out of contract 9
  10. 10. Average communication costs for the TORM fleet – actual vs budget 10
  11. 11. An exploration of the customer’s perspective of product/service-systems – the case of TORM 11 Source: Master Thesis 2013 by Lars B Jørgensen & Christian H P Johannesen
  12. 12. PSS from the customer’s perspective – can TORM use PSS and how? 1. Yes, TORM can use the tools to determine which of the PSS concepts defined will be the ”best fit” – and use this as reference for discussions/negotiations with vendors 2. TORM might have some strategic considerations restricting the use of some PSS concepts 3. TORM is taking a TCO perspective, or even ”total life cycle cost” and needs to have all deliverables as measureable KPI’s 4. We encourage close partnerships and relations as long as we can quantify ”added value” 12
  13. 13. Learnings being investigated and implemented • Lubricating oil – Now partnership with only one supplier world wide • Main engine spare parts – Partnering up with MAN Diesel for genuine parts • Navigation equipment – Intensive negotiations with various vendors – No world wide vendor covering all equipment • Safety equipment – World wide agreement on life raft servicing 13
  14. 14. Cooperation between TORM and DTU Mechanical Engineering Until now: • Professor Tim C. McAloone • Ph.d. Researcher Jakob Axel Bejbro Andersen • Two students doing their master project in TORM Technical Division – Lars Jørgensen & Christian Johannesen Starting soon: • 2 x PhD for three years • Partly founded by the TORM foundation and partly by DTU 14
  15. 15. PhD research focus areas 15
  16. 16. 16
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