Information Technology in The Maritime Industry Past, Present and Future: Focus On LNG Carriers

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Information Technology In The Maritime Industry Past, Present And Future:


Focus On Lng Carriers

Conference Paper · February 2017


DOI: 10.1109/IACC.2017.148

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2017 IEEE 7th International Advance Computing Conference

Information Technology In The Maritime Industry


Past, Present And Future: Focus On Lng Carriers

Olugbenga A. Bankole Habib Ullah Khan (Corresponding author)


The University of Liverpool College of Business and Economics
Liverpool, UK. Qatar University, Doha, Qatar
e-mail: bankolegbenga@hotmail.com e-mails: habib.khan@qu.edu.qa

V. V. Madhavi Lalitha Anjaneyulu Jinugu


Indian Institute of Health Management Research, Jaipur, Universitat Oberta De Catalunya, Spain
India e-mails: jinugumadhavi@gmail.com e-mails: ajinugu@gmail.com

enmeshed in the Charter of the United Nations [21] and in


accordance with the principles of international law, each state
Abstract— The maritime industry represents one of the oldest has the sovereign right to exploit its own resources in
industries known to man. From time immemorial human beings accordance with its own environmental and developmental
have been navigating the water ways as a transport medium for policies [22].
trade, leisure, basic transport and a myriad of other things
including war between nations over territorial rights. The water The Kyoto Protocol equally highlights the fact that nations are
ways also present dynamics in international relations as well with required to reduce production of carbon dioxide and five other
countries vying for the control of water locked mineral resources. greenhouse gases in order to reduce damage to the global
The interest of nations in who controls the water ways and the environment [19]. One of the globally accepted means of
resources therein also play a critical role in conflict and high reducing damaging emissions is the use of more
politics amongst nations [1]. The impact of Information environmentally friendly fuels of which Natural Gas is one.
Technology on organisations that provide services to the mari-
time sector is also brought under review with the aim of Natural gas is not a new energy source, in fact the formation
identifying the criticality of IT as a strategic business tool in of the gas dates back into millions of years. But until recent
positioning the organization for growth in the chosen market history methods of obtaining, transporting and bringing the
place, achieving reduction in the cost of doing business as well as gas to use were not developed hence the resource was not
criticality for survival as an organization is taken into harnessed for use and its benefits were not appreciated. The
consideration. Literature review and information gathering extraction and use of natural gas by the Han dynasty (200
constitute the bulk of data for this research. Surveys were used to b.c.e.) in China represents one of the earliest known to man
collate responses from industry practitioners. The responses were [17].
analysed and relevant details ascertained.
Identifying natural gas as a good source of energy was the first
The results of the survey and studies conducted clearly step in a long chain. As obtains with other products and
established the fact that Information Technology infrastructure is services there needs to be a means of getting products from the
critical to the sustenance of the LNG shipping industry. Ensuring point of production (source) to the point of use or application
retention of seafarers who are key human resources to an (destination). Due to the gaseous nature of this product,
shipping organization is seen to heavily depend on the provision storage and transportation in an economical way presented a
of reliable IT infrastructure. huge challenge to the players in the industry.
Keywords- Technology Adoption, Maritime Industry
II. LITERATURE REVIEW
Liquefied Natural Gas (LNG) is produced as a result of
I. INTRODUCTION
cooling natural gas (primarily me-thane) below its boiling
The United Nations (UN) Framework Convention on point, -162° C (-259° F) and storing the resulting liquid in
Climate Change (UNFCC) can be used to show the double-walled cryogenic containers at or slightly above
significance of climate change as an issue along with the atmospheric pressure ( Liquefied natural gas (LNG) 2013.
political interplay involved when addressing this issue comes
to fore. Whilst on the one hand ad-mitting the fact that human
activities have led to a substantial increase in the atmospheric
concentration of greenhouse gases which will ultimately result
in additional warming of the Earth’s surface and atmosphere, Figure 1: Typical Natural Gas Composition source Center for Energy
Economics
subsequently having an adverse effect on the natural
ecosystem and humankind as a whole, which can be seen as a
negative impact on human existence; the same document is
also quick to mention that the member States of the UN as

978-1-5090-1560-3/17 $31.00 © 2017 IEEE 760


759
DOI 10.1109/IACC.2017.148
Figure 3 Growth in LNG Demand

Based on the realization of the immense benefit inherent in


Figure 2 : Typical LNG Composition source Center for Energy Economics
LNG, the demand for the commodity began to soar. As
indicated in the above figure, there was a demand surge of
almost 200 million tonnes over a 30 year period. To
accommodate the volume of gas to be transported and the
geographic distance to be covered, the use of cargo ships
presented the most beneficial option.

As a new field of cargo transport there were no purpose built


LNG carriers suitable for the transportation of LNG. In the
industry it was important to consider a safe way of
transporting the gas given its highly flammable nature. This
represents the first techno-logical feat for the transportation of
this flammable cargo. In 1957 a US cargo vessel, Normati,
used extensively for cargo transport during the sec-ond world
war was converted into a 5,000m3 LNG tanker and renamed
‘Methane Pioneer’ thus becoming the first oceangoing LNG
vessel [20].

The ability to produce and store natural gas largely addressed Following up on the success of the Methane Pioneer, one of
the economic transportation challenge. Because the the leading oil companies, Shell, commissioned the
liquefaction process reduces the volume of natural gas by construction of two purpose-built LNG carriers in the United
1/600, more gas capacity is able to be stored and thus Kingdom, the Methane Princess built at the Vickers
transported in an economically viable method. Armstrong shipyard and the Methane Progress built by
Harland and Wolff, both UK shipbuilding organisations.
Figure 2 Liquefied natural gas storage tank Malabo, Eq Gui. Falcanary
Figure 4 M.V. Methane Pioneer source Peter G. Noble

760
761
Figure 5 Methane Progress and Methane Princess source (c) Michel Devos losses to be incurred for idle time. This also affects the work
environment of the sea-farers on board.
Lifestyle behaviors of seafarers are significantly different from
those of other land-based occupations. Seafaring is often
considered to be a risky occupation in comparison to shore-
based jobs due to the hazardous nature of the work terrain [6].

It has been said that ‘The man who goes to sea is a man in
despair’ [2] this apt saying captures the intricacies of the field
of seafaring as a profession characterized by high suicide
rates, physical and psychosocial health problems due in no
small measure to the nature and organization of their work
environment. What role does / can IT play in the life of a
seafarer on board an LNG carrier. This will encompass the
official and private life of the seafarer whilst on board.
Whilst Methane Pioneer had a tonnage of 4,830 m3, Methane Due to the nature of the work environment of a seafarer it
Princess which is the sec-ond LNG carrier and the first qualifies as an isolated work environment. As humans are a
purpose built LNG carrier and Methane Progress had a ton- relational being, working in an isolated environment does have
nage of 24,607 m3 which is about six times the capacity of the an impact on our work pattern. Having a crew of between 30 –
first vessel . 45 people on board a vessel with no physical interaction to the
outside world for a month or over at a stretch or with just a
At an estimated building cost of over $12 billion and with a couple of hours of shore experience over a three – six month
processing capacity for over 5.3 million tonnes per annum of period does have an impact on the working relationship of
liquids, Royal Dutch Shell PLC is constructing the world’s individuals.
largest floating facility, ‘Prelude’, which is an LNG processing
plant. This is indic-ative of the advancement in technology and Such isolated work environments can be likened to space
economic importance of LNG to the world market. When shuttles, polar expeditions by a team and the likes of such. To
completed in 2017 the ‘Prelude’ will also be the world’s first bring this into context, the United States National Aeronautics
floating lique-fied natural gas (FLNG) project. and Space Administration (NASA) classifies long-duration
(www.shell.com 2014). missions to the International Space Station (ISS) as missions
that generally last from 3 to 6 months. Part of the NASA
Work environment: The work environment has a big impact on requirements for individuals intending to undergo missions of
the living condition of any individual. Leaving home on a this duration include a very arduous training that takes
daily basis after spending some time with the family and approximately 2 to 3 years (nasa.gov 2014). Considering the
returning later in the evening to the family is the normal work fact that NASA is a well-established institution of repute and
life pattern for a lot of people. Even for those whose work such focus is given to long-duration missions it is a bit
involves a lot of commuting, spending time with the family on surprising that such consideration is not made of seafarers for
a regular oc-currence is more often than not a given instance. whom such duty tours are considered basic.
For seafarers this is not always the case.
Studies have revealed that working in isolated environments
The nature of work for seafarers means being on board a sea for a long period have a psychological impact on the
going vessel for a long period of time at a stretch. Normally individuals concerned and this always needs to be taken into
sea time for an LNG seafarer ranges from three to six months consideration. Some of the findings of the study indicate the
on board at a stretch. Unlike commercial cargo vessels that greater need from individuals to associate with other personnel
have course to spend a long time in port whilst undergoing but with less intimacy and at the same time the inverse
cargo loading and unloading formalities the same does not situation applies where personnel want others to establish
apply with seafarers on an LNG carrier who more often than close relationships with them but with a low level of
not spend about 24 hours at the loading and unloading interaction. For example having a crew of 40 personnel on
terminal at any given time. This equally affects the time board all coming from different nationalities and age
available to go on shore for seafarers on board the vessel, this demographics but in a majorly masculine environment, there
time is normally referred to as shore leave and is maximum of is that need to be accepted by your peers whilst still
a couple of hours during the time the vessel is at berth. In light maintaining your individualism. Considering the fact that you
of this development it is normal for a seafarer on an LNG are likely to be stuck with the same group of people for a 6
Vessel to spend just a couple of hours on shore out of a six month period, it takes a lot of resources to maintain the
month duty tour. With charter rates of about $90,000 a day relationships considering social, cultural and official divides.
[13] the need to keep the vessels in operation significantly
affects the affordable idle time for each vessel considering the

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