As ship-owner and global operator of shipping routes, TORM presents their current situation and their desire for certain PSS-oriented solutions.

1. 1
PSS on vessel communication equipment
19/3-2013
Allan H Rasmussen

2. TORM’s share price development over the past three years…
2
Copyright © 2013 Dagbladet Børsen A/S

3. The restructuring agreement with banks and T/C-in partners concludes
TORM’s comprehensive finance solution
3
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
 
 


4. “Karo ya Maro”
4Mahatma Gandhi

5. 5
FBB
VSAT

6. Diagram of the future technology onboard
6

7. Bandwidth and Coverage Summary - today
7

8. And tomorrow…
8

9. Background
• TORM was first mover 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
• Large size antennas
• No strategy as such was stipulated
• A long term binding contract with penalty was entered
• No SLA (Service Level Agreement)
9

10. 10
Project outline

11. Potential suppliers & evaluation criterion
11
A B C D
Future proof
technology
NO YES NO NO
Datapackage 500 MB Unlimited 500 MB 500 MB
Service level 98 % 99,5 % 98 % 98 %
Total cost Second best Leading Not competitive Not competitive
References 1. Tanker Pacific 1. Nordic Tankers
2. Mærsk
1.American Seafood
Company
2. Wilhelmsen
1. BP Shipping
2. BW Maritime
3. Farstad

12. Comparison of key figures
12
A B
Guaranteed uptime 98% 99,5%
Monthly fee C-band rebuild & FBB USD X USD Y
Monthly fee Ku-band & FBB USD XX USD YY
Monthly data package 500 MB per month Unlimited
Installation costs USD XXX USD YYY
Contract exit cost 0 USD ZZZ

13. Cost Comparison
13
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
Apr/12
Jun/12
Aug/12
Oct/12
Dec/12
Feb/13
Apr/13
Jun/13
Aug/13
Oct/13
Dec/13
Feb/14
Apr/14
Jun/14
Aug/14
Oct/14
Dec/14
Feb/15
Apr/15
Jun/15
Aug/15
Oct/15
Dec/15
Feb/16
Apr/16
USD
Vessel Communication – Business Case
SingTel current
SingTel new
Inmarsat

14. Present & Future Solution
14
Present Future
Strategy Supplier driven, based on
supply
TORM driven, based on
demand
Technology VSAT: C-Band V-SAT: KU-band
Redundancy 15 vessels with FBB All vessels with FBB
Bandwidth 256 kbps shared by up to 10
vsls
128 kbps dedicated per vsl
E&E FB -77, SAT-B, SAT-C SAT-C (cost saving)
Installation In dry docking (DD) only Estimate: 1 day no DD
SLA N/A – TORM is responsible Supplier is responsible
Guaranteed
uptime
N/A 99,5%
Investment cost All equipment purchased and
owned – USD 150.000 pr vsl
3 year leasing contract
Installation + monthly fee

15. Requirement specification
Req Nr. Requirement
Priori
ty
Supplier name: (To be filled in)
Co
de
Comments
1.0 Technical Requirements
1.1 Primary modeof communication:VSAT - Ku Band w/Auto Beam switching (Completesystem
including AboveDeck & below Deck units)
ER 1 XpressLink is a managed service for a full redundant network in which the monthly
service fee covers not only the hardware, but also all the data airtime. The service
provides not only Ku band auto beam switching but also fail over functionality to the
FleetBroadband standard IP service. The airtime for this is included in the service.
1.2 Ku band antenna upgradeableto Ka band ER 1 XpressLink includes a free upgrade path to the Global Xpress service (KA Band) when
available in 2014. XpressLink provides a future proof communication set up.
1.3 Backup modeof communication:FBB 250 - Completesystem including AboveDeck & below
Deck units
ER 1 Weoffer Thrane & Thrane Sailor 500. Hardware is included in the service.
1.4 FBB 250 - Cordless phones with 3 handsets and G3 Fax machine CR 1 Weoffer FBB 500 from Trane & Trane
1.5 VOIP adaptors for usewith standard analoguephones (including cordless) CR 1 Included are 4 voice lines with handsets
1.6 Freevoice calls to Torm Global offices from ship and vice-versa CR 2 This part have to go in to project with our R&D
1.7 Corporatecommunicationavailability (Voice& email) 24x7x365 CR 1 Can Torm explain this better?
1.8 Bandwidth:min 512 / 512KBPS CR 1 Each vessel will be between 128kbps and 512kbps
1.9 ContentionRatio: max 1:6 CR 1Each vessel will be between 128kbpsand 512kbps
1.10 Committed IP Rate: Min 24 KBPS CR 1CIR: 128kbps
1.11 VoiceQuality per channel: Min 12 KBPS CR 1
1.12 Number of PCs connected to communicationsystem:Min 8 CR 1Wedo deliver two networks for thevessel and crew
1.13 Number of Telephones connected to communicationsystem: Min 2 (Corporate& Crew) CR
14 voicelines open and crew lines
1.14 Minimum expected data download per ship per week: 600MB CR
1
Unlimited usageof data see in our quotationParagraph 3.7 Fair usepolicy content
filtering
1.15 Expected Monthly data download per ship: 8 GB ER
1
Unlimited usageof data see in our quotationParagraph 3.7 Fair usepolicy content
filtering
1.16 All equipment mustbeMarineapproved CR 1TheFBB and VSAT antenna is approved
1.17 Multi Device connection box for automatic changeover from VSAT to FBB to G3 (to Satcom
C), based on least cost routing & availability
CR
2
Fail over functionality to FleetBroadbandstandard IP servicebased on availability of the
KU band service. FleetBroadband standard IP services included.
1.18 Advanced spam and virus filters onboard & ashore - ESET Nod32 (alt: SOPHOS) CR
2
AmosConnect onboard Antivirus is based on thePortIT Antivirus servicewhich is ESET
NOD32. Thelicense fee is US$ 30 per vessels per month and covers all thePCs.
At theAmosConnect Email servicehub sideall incoming and outgoing messages are
scanned for viruses. Next to this thereis a spam filter in place.
1.19 Firewalls onboard & ashore(firewall onboard must bepart of the'Multi Device Connection
Box' manageable by TORM)
CR
2
There are various solutionspossibleto meet theexact requirements of Torm. Further
discussionsshould providea better understanding of therequirements and how tomeet
them in thebest cost effectiveway.
1.20 Bandwidth Management Onboard incl IP traffic measurement/logging CR
1You can check bandwidth and uptimeat MySEVSAT.com
1.21 Traffic Management (Priority settings) Onboard CR 1Thevessel network has priority options
1.22 Content Filtering Onboard CR
1
There are various solutionspossibleto meet theexact requirements of Torm. Further
discussionsshould providea better understanding of therequirements and how tomeet
them in thebest cost effectiveway.
1.23 Data download accelerator / manager Onboard CR 1Included in theiDirect platform
1.24 Equipment complies with latest performancestandards, specified by ITU, at thetimeof
each installation
CR
1
1.25 Interference filters : example bandpass filters for radars, other comm. & Nav equipment CR
1Needs approval from our project department
1.26 HardwareReliability specification (MTBF) for key componentslikeBUC, ACU, Modems, etc CR
1
XpressLink is a full redundant networkbased on VSAT and FleetBroadband. Any failover
for data in any direction is included in theservice fee.
1.27 Remotesupport(Maintenanceaccess via L-band FBB) CR 1
1.28 Pre-install survey, support, drawings, document CR 1
2 Internet access - guaranteed & verified for al least following sites
2.1 UKHO, Maris or similar electronic chart / publication data provider for updates & permits CR
1
2.2 DNV Navigator CR 1
2.3 eNOAD CR
1
TheAmosConnect Email servicelicense includes as well a US Coastguard Enoad
application.
2.4 Port Information CR 1
2.5 Weather data CR 1
2.6 Torm India & Torm CPH server access CR 1
3 Communication Requirement - Crew
3.1 Voicecall using chat cards CR 1
3.2 Web Mail - Gmail, Yahoo, Facebook CR 1
3.3 Chat - Low bandwidth sites CR 1
3.4 SMS - Ship to shoremobilephones& viceversa CR 1
3.5 Low bandwidthinternet browsing for news, sports, banking etc. CR 1
4 Communication Requirement - Corporate
4.1 Email with attachment - Send & receive emails with attachments CR 1
4.2 Email client + communicator softwaremust bepart of package CR 1TheEmail service offered is AmosConnect
4.3 Data box with push-technologyfor large sizefiles (part of themulti devicebox) CR
2
There are various solutionspossibleto meet theexact requirements of Torm. Further
discussionsshould providea better understanding of therequirements and how tomeet
them in thebest cost effectiveway.
4.4 Voicecall - Quality minimum 12 KBPS per voicechannel CR 1
4.5 Fax - send & receive via 3G telephony CR 1Group 3 fax is fully supported.
4.6 Databaseexchange, PMS, Purchase, crewing, vetting, etc CR 1
4.7 Remoteaccess to shipboard computers & systems;filetransfer CR 1
4.8 Vessels E-mail addresses to be'Alias of TORM Domain' for eg. TormVsl.Com or
Tormship.com
ER
1On theEmail service AmosConnect this is supported.
5 Service Level Agreement (SLA)
5.1 Provision of adequatestock holding to ensureorders can bemet in timely order. Supplier
must hold stockof completeaboveand below deck HW.
ER 1
5.2 Provision of adequatespares mustbeheld to mesureimmediateavailability for field service
attendanceat key geographic locations: Singapore, Fuijarah, Rotterdam, Gibraltar, New
York, Amsterdam, Gibraltar, Houston, Antwerp.
R 2 Rotterdam, Alesund, Reykjavik, Singapore, Houston, Dubai. Other harbors will be added
to this service map later this year, including Hong Kong.
5.3 Preinstallation report written and delivered 5 days from sitesurvey form being submitted. ER
1
5.4 Equipment availablefully tested and configured for customer specific requirement as
detailed in thepreinstallaion form and ready to ship 15 days prior to delivery.
ER
1
5.5 Issuing of telephonenumbers/IP addressesesand tracking details of equipment toTORM
within 48 hoursof dispatch
ER
1
5.6 Minimum commitentof 3 vessel installationsper monthon agreed location. ER
1
5.7 Calls answered by support desk within40 seconds R 1
5.8 In event of fault not being rectified by Support Desk, subsequentresponseby NOC or
systemsengineer to provideremotetechnical support tothevessel within 1 hour.
ER
1
5.9 Calls reamianing open progress chased within 48 hours. R 1
5.10 All calls closed within 7 days. ER 2
5.11 In event TORM decides that remotesupport cannotfix problem and that a replacement part
can be sent withoutengineer (eg. Moden or voice handset whereequipment can easily be
replaced without engineer being needed) thedispatch mustbemadethenext working day.
ER
1
5.12 Mobilisation of nearest serviceengineer or In-Country Agent as applicablewithin 36 hours. R
1
5.13 Acknowledgementof complaint within 24hours from timeof receipt. ER
1
5.14 Formal responseto complaintwith recommendations for resolutionwithin48 days. R
1
5.15 Completeclosureof complaint within 7 days. ER 1
5.16 Network availablity 99% basedon FBB and VSAT combined solutionexcept Polar regents. ER
1
6 Payment/Invoicing
6.1 Payment terms:45 days net from receipt of correct invoicefrom theSupplier CR 1
6.2 TheSupplier is responsiblefor ensuring pricetransparency at all times and document that
all prices are net and according to agreement.
ER 1
6.3 Copies of invoices and credit notes can bedownloaded on theinternet withno additional
costs for theCustomer.
R 1
6.4 Onemonthly invoiceper month per vessel in PDF (electronic format)
ER 21 Invoicefor Vsat / Xpresslink setup, 1 invoicevarious services, 1 for Fleetbroadband
7 Implementation
7.1 TheSupplier is in coordination with TORM responsiblefor preparing an implementation
plan ensuring that theimplementation of equipmenton board runssmoothly.
ER 1
15
Req Nr. Requirement
Priority
Supplier name: (To be filled in)
Code
Comments
1.0 Technical Requirements
1.1 Primary mode of communication: VSAT - Ku Band
w/Auto Beam switching (Complete system including
Above Deck & below Deck units)
ER 1 XpressLink is a managed service for a full redundant
network in which the monthly service fee covers not
only the hardware, but also all the data airtime. The
service provides not only Ku band auto beam
switching but also fail over functionality to the
FleetBroadband standard IP service. The airtime for
this is included in the service.
1.2 Ku band antenna upgradeable to Ka band ER 1 XpressLink includes a free upgrade path to the
Global Xpress service (KA Band) when available in
2014. XpressLink provides a future proof
communication set up.
1.3 Backup mode of communication: FBB 250 - Complete
system including Above Deck & below Deck units
ER 1 We offer Thrane & Thrane Sailor 500. Hardware is
included in the service.
1.4 FBB 250 - Cordless phones with 3 handsets and G3 Fax
machine
CR 1 We offer FBB 500 from Trane & Trane
1.5 VOIP adaptors for use with standard analogue phones
(including cordless)
CR 1 Included are 4 voice lines with handsets
1.6 Free voice calls to Torm Global offices from ship and
vice-versa
CR 2 This part have to go in to project with our R&D

16. Requirement specification
Area. 1 Description: Question
Supplier name: (to be filled)
Supplier reply in short:
Q.1.1 Customer service Please outline the full process for an in-service
VSAT Ku-band installation on board a TORM
tanker, including how this interfaces with the
LAN network. Please include any drawings
where appropriate.
Installation will take about 1 day, depending on the
preperations from the vessel side. Most commonly is that the
vessel will run the cabels, place the foundation and antenna
on place. The ShipEquip technician will terminate the cabels
and commissioning the system. The SE router and will be
connected to the LAN network onboard.
Q.1.2 Customer service Please provide details of your after sales and
support network, including proposed KPIs for
monitoring the contract performance.
The preformance such as uptime and usage reports can be
measured realtime on MySEVSAT.com Please also see the SLA
doc.
Q.1.3 Customer service The following tasks should be considered in
respect of the installations:
- fabrication of the pedestal /mast for the
antenna
- installation of the pedestal/mast in place
(possibly strengthening of the deck below)
- mounting radom
- cabling
- commissioning
- configuration with TORM IT systems
Supplier should list Supplier and TORM
responsibilities for each point above.
Methodology for carrying out specific tasks
should also be included in your response.
The following tasks should be considered in respect of the
installations:
- fabrication of the pedestal /mast for the antenna Not
Inmarsat scope of work, we will recommend pedestal height
and location.
- installation of the pedestal/mast in place (possibly
strengthening of the deck below) Not Inmarsat scope of work,
we can give some advises based on previous installations on
similar vessels.
- mounting radome Normally performed by vessel crew, a
crane normally required
- cabling Cables according to attached pdf 4009-SG5U-881to
be pre-installed by vessel crew to save time during
commissioning. Inmarsat technician will terminate all cable
ends and connect to Vsat equipment.
- commissioning To be performed by Inmarsat technician,
normally 1-2 days required if pre-installation work checklist is
completed before attendance of technician. Crew training will
be performed.
- configuration with TORM IT systems Inmarsat
support/operation/R&D will assist with setup.
16

17. Roles and responsibilities during implementation
- And what about insurance?
17

18. Other areas to consider for similar setup…
Cooperation between TORM and DTU Mechanical Engineering
• Ph.d. Researcher Jakob Axel Bejbro Andersen
• Two students doing their master project in TORM Technical Division
– Lars Jørgensen & Christian Johannesen
• Focusing on PSS, identifying and listing areas of interest
• Full analysis and tender process -> implementation for at least one area
Examples of possible PSS areas identified:
• Hull and propeller cleaning
• Navigational equipment
• Life saving appliances
• Propulsion and power production - reliability and TCO
• Measurement equipment
• Energy optimization devices
18

19. From Wikipedia, the free encyclopedia:
A partnership is an
arrangement where
parties agree to
cooperate to advance
their mutual interests
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