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Editorial

A new magazine for the new times

The New,s magazine, a publication of Wilson Sons, that you already know for its relevant and quality content, now makes its début in a new digital format, with more interactivity and ease to access news reports that the readers with to see or even return to. Any specific content, be it text, an infographic, images, podcasts or video, has been idealised in a way that improves user experience, making reading even more enjoyable.

This launch shall be only on virtual media for the time being – and the reason is well known to all: the spread of the pandemic caused by the new coronavirus.

Covid-19, which is the disease caused by the novel coronavirus, has changed the way we work and has been a cause for concern throughout the world, mainly due to its speed of contamination. Our company operations continue with all due protective measures in place, to ensure the health and safety of our staff, clients, and partners.  

With great responsibility, the Company has been keeping track of impacts and monitoring the progress of the situation, but we could not stop offering quality and relevant content to our clients who follow us, even in this difficult period we now face.

Wilson Sons understands the need for relevant content at this time. With a history spanning 180 years, the Company offers comprehensive solutions for a wide range of industrial segments, such as Oil and Gas (O&G) and Foreign Trade. There are thousands of partners who have also suffered the effects of the pandemic. This new issue of New,s, in its more technological guise, is a way of looking at these new scenarios 

In these days of remote work, the production of content that provides information and makes readers think forward is an important way of tackling this situation.

The New,s magazine, in its first ever digital issue, with content that extends well beyond text, has brought the views of important professionals in the market, with regard to issues that are now part of the order of the day of the supply chain, views that surely make you, the reader, think outside the box. So please check out what you will find in this issue:

  • An unprecedented format for Wilson Sons is the podcast “What can be done to improve the vessels of the future”, which brings professionals talking about how it is possible to make vessels more efficient.
  • Greater interactivity is also possible, with the videos that focus on the use of Artificial Intelligence in shipping and on security processes for transport of goods with high added value.
  • The future of work and all the transformations that are enforced upon professional people and companies by the current situation.
  • The challenges faced by companies to make production chains more sustainable, such as the possibilities of alternative sources of energy, among others;
  • Security for cargo with high added value, an issue which is extremely important for the luxury goods market in Brazil, with significant figures.
  • What can we expect from the maritime market in this new decade, with a view in the longer term for the segment. How can the issue of clean fuels, for example, affect the market? Three renowned professionals bring us their expectations for years to come.
  • Thoughts about the natural gas market in Brazil, showing the challenges faced and the prospects for this fuel, the consumption of which is expected to increase by 100% by 2030.

Wilson Sons is market leader in the port segment and is present in over 30 seaports and terminals, operating in the main shipping corridors that connect Brazil to the rest of the world. The crisis that we have faced in this new scenario of covid-19 is a concern for all companies and business sectors, but this is also a moment to acquire precise information and prepare new strategies for the near future.

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Brazilian shipping market

New ways of thinking about the Merchant Marine Fund (MMF)

The Brazilian shipping market has been using a fund to provide financial backing for its shipbuilding projects. However, it is possible that there could be an expansion of the use of this resource, which could bring good news.

The Brazilian shipping market has been using a fund to provide financial backing for its shipbuilding projects. However, it is possible that there could be an expansion of the use of this resource, which could bring good news.

When Juscelino Kubitschek officially set up the Merchant Marine Fund (MMF), back in 1958, a lot was expected regarding the potential of the Brazilian shipping industry, but little could be predicted about the result of funding naval projects on these tropical shores. Seeking to obtain resources for the renovation, expansion, and recovery of the Brazilian merchant navy fleet, this fund was to be invested in the development of the shipping industry, bringing benefits for the whole country, especially to the business segment. Linked to the transport sector of the Brazilian Ministry for Infrastructure and managed by the Development Department, the idea worked really well.

Over the last thirteen years alone, the support that the MMF provided to the merchant marine and to the shipping industry was invested in 776 projects for ship construction, and another 49 projects for repair and modernisation of vessels in Brazilian shipyards. The Fund still has significant resources available, for the significant increase of these results.

For this reason, today the Administrative Board of the Merchant Marine Fund (CDFMM) is seeking new ways to use investments. In the opinion of Rafael Furtado, the Head of Development of Infrastructure, and Dino Antunes Dias Batista, the Head of the Shipping and Waterways Department, the way in which the MMF now limits itself to some projects needs to be expanded, which is great news for the shipping industry.

The MMF contributes to the competitivity of the Brazilian shipping market and has prospects of further boosting the industry in this regard

New prospects for the MMF

“The rise in income means that we now have sufficient availability of cash in hand for the funding of projects to benefit shipping and the shipbuilding industry”, says Rafael Furtado. Based on this, a plan was drawn up. “We would like to be able to provide new financing with these resources”, he adds.

The MMF was set up at a moment when globalisation of shipping activities was not as intense as it is today. It is quite normal that, over the years, the Fund may undergo a series of changes in order to adapt to the new reality of the Brazilian Merchant Marine in the light of the international scenario.

With the expansion of the possibilities of FMM, the list could also contemplate financing in favour of construction, or equipment of port terminals, leased and authorised. START OF HIGHLIGHT “Currently, these funds can only be used for shipping companies and shipyards. However, it could be in the sector’s interest to make it possible to use these funds also for platforms and port terminals, so that this investment may result in greater efficiency of transport and also for the security of the vessels” END OF HIGHLIGHT, Furtado explains.

There are also talks of the possibility of investing this funding in decommissioning of the vessels, as also for other ideas that could extend the useful life of what has been constructed, like repairs of vessels in Brazilian shipyards. “Now we can see that there is a potential for the shipping industry to also be competitive in the repair of vessels, and we can expand or facilitate such funding, or create a special financing line for such repairs”, says the Director of development, as a comment.

The proposals are not seen exclusively as a way to facilitate development of shipping. These are in tandem with projects for development that can be borne by the Brazilian Ministry of the Economy, the Ministry of Mines and Energy, and the Ministry for Regional Development, as well as the Brazilian Ministry for Infrastructure.

How the Merchant Marine Fund works today

With regard to the current operations of the Merchant Marine Fund, the Board assesses the volume of resources available and the return on these resources. There is also a portfolio of projects that are already agreed upon, where it is possible to identify the total volume of resources that shall be destined to each one of them, and what shall be done with these monies. Based on this information, the Board decides the next steps to take, by establishing priorities according to market needs and the projects that are already being executed.

The Fund currently operates in the five main segments within Brazilian shipping, with positive results being obtained in all these segments. According to Dino Antunes Dias Batista, the head of the Shipping and Waterways Department, results have been very encouraging in the segment of inland navigation, for example: “We have witnessed the replacement of the entire fleet used for internal navigation, which transported fuel, by more modern and safer vessels with a double hull”. A similar situation can be seen in the port support segment.

In the maritime support segment, the results are also significant. Dino Batista says that some 60 to 70 vessels are delivered, all having a high technology element, which allows Brazil to gain a competitive edge for the country’s shipping industry, when compared to other countries.

It is also worth remembering that the current model of operation of the CDFMM allows the participation of all parties involved: the trade unions representing ship-owners (Sindarma and Syndarma), the Trade Union of the Shipbuilding, Ship Repair, and Offshore Industries (Sinaval), mariners, people working in shipyards, and the Government. In addition, there is added value given to transparency, especially with regard to the process of approval (or otherwise) of projects, bearing in mind the reality of the moment.

The FMM and PEC 187/2019

One situation that worries some of the investors in the segment is that regarding Proposed Constitutional Amendment (PEC) No. 187/2019, that would let the Government change the purposes of the resources currently held in infraconstitutional funds and linked to specific areas. Considered a priority up until a few months ago, the PEC has now been downgraded to a secondary role with the arrival of the coronavirus pandemic; even though, it is still a point worthy of attention.

There is nothing specific in the PEC that addresses the issue of the Additional Freight Charge for Renewal of the Merchant Marine (AFRMM) that is intended, among other purposes, to be part of the MMF, assures Furtado. This means that the segment has guarantees that the development of the activities of the shipping industry shall not be discontinued.

He also adds that, for this very reason, predictions are now being made so we may have the correct application of these funds, so that, when there is a scenario marked by the approval of the PEC (which does not automatically scrap the funds, which can be re-established with justification), the structure of the MMF is so solid and well-designed that it can meet the needs of the segment while also generating value for society, without having to be taken up.

Get to know the prospects for restructuring of the MMF:

  • A more speedy process of analysis and of granting requests.
  • Greater scope of coverage in projects such as support for port terminals, leased and authorised and decommissioning operations.
  • A greater focus on ship repairs, with expansion of the incentives for repairing ships at Brazilian shipyards.
  • Adaptation of the legislation.
  • Financing for modules of Platforms and Integration, with a focus on the growth of demand for E&P of the oil and gas industry.

An invitation for the shipping industry

At present, there are 14 billion Brazilian Reais held at the MMF for the development of the shipping industry. This sum is the result of a transparent form of management, and in compliance with the goals for which the fund was created.

The intention with the possible changes is that of expanding credit lines, enhancing the procedures for project analysis, as also extending the grace period or the period of amortisation. “As we now have some space in this cash flow, this means that we manage to enhance the grace period”, says Rafael Furtado.

The change should occur quite soon but this shall require action from the shipping investor. “Nowadays the resources of this Fund may finance both shipyards and Brazilian shipping companies, and we are now waiting for the projects so we can cater to this possibility”. In the light of this fact, the director makes a provocative statement: “bring projects!”

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3

Artificial Intelligence

The impacts of artificial intelligence for port support

Understand how the advances in the field of Artificial Intelligence have an impact on the routine of tugboats. We have prepared a video about artificial intelligence within the scope of port support. In addition, for better understanding of how it works, you may also follow the infographic that illustrates the matter.

Understand how the advances in the field of Artificial Intelligence have an impact on the routine of tugboats. We have prepared a video about artificial intelligence within the scope of port support. In addition, for better understanding of how it works, you may also follow the infographic that illustrates the matter.

The progress made by Artificial Intelligence (AI) has been significant over the last few decades. In this regard, the segments involving maritime and port logistic operations have really benefited. So much so that there has been a complete overhaul in the routine of some professional people whose work is carried out in these areas, such as tugboats.

According to the research study “The impact of AI on the labour Market”, carried out for Microsoft by consultancy firm DuckerFrontier, AI could bring significant gains in productivity in many different segments. In practice, these figures could generate an increase of 7.1% in the annual growth rate for the GDP, year on year, until 2030. In the maritime sector, Petrobras and Microsoft are implementing a project to make use of artificial intelligence on the high seas.

To address this issue, we have interviewed specialists whose daily routines are very close to this reality – Elísio Dourado and Yuri Fedoruk, both of whom are regional managers at Wilson Sons; Toine Cleophas, the research manager at DAMEN; Rodrigo Barrera and Eduardo Aoun Tannuri, respectively researcher and head teacher at the Numerical Offshore Tank at the University of São Paulo (TPN-USP).

Within this context, Artificial Intelligence has been used to optimize a relationship with quotas and use in general - it can remove unnecessary displacements, emit a CO2 emission.

The influence of Artificial Intelligence on the port and marine segment

In practice,  tugs may indeed move around at appropriate times, and travelling the shortest possible distance.

According to Yuri, many are the ways in which we can apply AI within the port and maritime segments. Its uses can be divided into three major vectors, as follows:

  • Performance management, to improve the performance of the assets;
  • Optimisation of the use of operational capacity; in other words, to find, quantify and carry out the best application of assets;
  • Reinvention of the operational model or to transform the business into a digital company.

“We understand the need to use this technology not only to deliver operational excellence, but also to enhance our culture”, explains Yuri.

Around the world, there are shipping companies and terminals that make use of AI within their operations, in order to predict the environmental conditions that a vessel may find when it arrives at, or leaves, a port. When a ship sets sail from China and comes to Brazil, for example, it follows a certain route that can be redirected according to data collected by many different sensors – this is very useful in making transportation more effective.

On being asked about its uses within the segment, Toine Cleophas, the research manager at DAMEN, mentioned that their clients, in most cases, seek three specific goals: security, sustainability, and efficiency. “The data, in themselves, do not generate any value: we need to move on to the next phase, which is the organisation of data, and then direct them so that the desired targets are indeed attained.”

Infographic: AI in operations.

The main advantages of the new technologies for tugs

According to Eduardo and Rodrigo, from TPN-USP, equipment with GPS coupled together with advanced techniques for filtering enable the visualisation of the vessel during navigation, with precision, through 2D images. As the specialists see it, these functions are of great use to the tugboats, as they help with the mitigation of risks.

With regard to data collection, there are many options available for making new operations feasible, and for real-time analysis of how a manoeuvre occurred, based on the information obtained. “In the future, this can be integrated in with the data from the simulators, thereby bringing significant advantages for those who are active in this area”, they said.

According to Yuri, one of the most important benefits is shown in gain of sustainability “as there shall be more intelligence within logistics, it will be feasible to optimise movements and avoid unnecessary consumption of fuel, which is very good for the environment.”

Apart from operations within the ports, crew and ground maintenance teams can also benefit from AI. “Here at Wilson Sons, we have an Operations Centre that monitors our 80 tugs in 25 ports throughout Brazil. With the use of this technology, we shall boost our efficiency, establishing a balance between peaks of demand and stoppages for dry-docking, maintenance and operations”, explains Yuri.

The regional manager also explains that:

as there are many variables that can affect a better use of the tug, AI makes it feasible to have a deeper understanding of all the dimensions of these variables, to offer good suggestions to the operators at the Centre.

– Yuri Fedoruk

If for any reason a tugboat is not able to operate in a manoeuvre – when in the middle of an inspection, for example -, and in these cases Artificial Intelligence reprocesses this information and then makes a new suggestion to the operator.

The challenges that loom before AI in the maritime segment

According to Elísio, the main challenge faced by AI in this segment is the pioneerism shown in the initiatives. “There is nothing like it, we have started from scratch and, as such, we are discovering new possibilities of use. For this reason, there is no way of knowing where we can get to. Working with a large selection of data is indeed a challenge, as also is the crossing of different types of information and building an algorithm based on them”, he says.

Yuri also comments following the reasoning of his colleague. “Wilson Sons is 183 years old, and therefore was not born digital. For this reason, we really want to make progress in strategic processes using innovative Technologies.”

AI in the future of tugs

According to Toine, the maritime segment is still quite fragmented, and is in need of some integration between different technologies. After all, the monitoring informs about the track record, while the simulators help to understand the future so that, before the work even gets under way, it is possible to prevent anything that shall happen during navigation.

For this reason, the most recent trend is that, in the next few years, the use of AI in this segment shall be based on modular solutions, configurable and scalable, rather than being of single or restricted use. In this way, the teams and the crews shall have functions that are much more associated with supervision rather than execution.

In other words, it is probable that there is some progress in the automation of tugboats. Some ports already have lorries driven by AI, within the terminal structure.

After all, the changes have come to make work easier, and there is a need to train people to deal with such an important transformation. No wonder that data scientists and professional people specialised in AI, programming and codes shall be essential during the transition, in the same way as companies, that have been adapting over the years.

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4

Expectations and Trends

The future of natural gas in Brazil

Get to know the main perspectives by major specialists in the field, about the future of natural gas in Brazil.

Get to know the main perspectives by major specialists in the field, about the future of natural gas in Brazil.

"Natural gas causes less pollution and is cheaper, when compared to diesel, and apart from an energy solution can be used in industrial applications, generating significant competitivity and bringing costs down.”

– Thalita Sá, business development executive for the oil and gas segment at Wilson Sons

According to data released by the Energy Research Company (Empresa de Pesquisa Energética – EPE) and published by Agência Brasil, the Brazilian net production of natural gas should more than double by 2030. It is also worth remembering that, also according to the EPE, national production has grown by an average of 7.6% per year, between 2009 and 2018.

After all, what are the trends for the next few years? How can this untapped potential be used? What favours the growth of this important market in Brazil?

To answer these questions, we have interviewed people who have experienced these transformations in their daily lives: Thalita Sá, who is business development executive in the Oil and Gas segment of the the Wilson Sons Shipping Agency Division; Elísio Dourado, regional manager of the Wilson Sons Towage Division, and Luiz Costamilan, Executive Secretary for Natural Gas at IBP.

The trainings are comprehensive, because we try to understand all the variables and guarantee the safety of the operation.

The growth in production of natural gas in Brazil

Thalita’s view is that not only the figures, but also the conversations and projections around natural gas have increased significantly. Evidence of this fact lies in the initiatives of the companies, that are creating new means to better flow and distribute this type of energy – one of the cleanest forms of energy that exist these days.

“Apart from the general search for expansion in this segment, it is essential to consider Brazil as a very important producer due to the development of pre-salt fields.

– Thalita Sá

To explain this movement, the specialist mentions the birth of new projects in the country, such as the arrival of the Sergipe Port Thermoelectric Power Plant (UTE) whose process of regasification takes place through a Floating Storage Regasification Unit (FSRU). In short, the gas arrives at the FRSU in liquid format, regasifies it, and then transfers it to the thermoelectric plant. This is a safe operation, as the liquefied gas arrives at a low temperature.

Elísio, in turn, also brought relevant information, when he commented on the possibility of making a regasification plant feasible on the Offshore scene as served by Wilson Sons. “We carried out the first ship-to-ship operation at the Offshore terminal of our partner and used four Wilson Sons tugs, three of which were relocated according to ports operated by the company – they were three 70-tonne bollard pull and one 50-tonne bollard pull tugs. After this initial operation, two more have already been carried out, making use of this logistics, which we understand to be of great efficiency for our Client”.

According to Luiz, the changes in the relationship between businesspeople and natural gas in Brazil is a sign that must not be ignored – and this can also be explained through the implementation of the new regulatory framework on the Brazilian market, responsible for the generation of opportunities for the country and for the industry as a whole.

Such an initiative carries out the role of ensuring the entry of new players in the sector and the attraction of more investment. “The Brazilian National Council for Energy Policies (Conselho Nacional da Política Energética – CNPE), with the establishment of the New Natural Gas Market and the Administrative Council for Economic Defence (Conselho Administrativo de Defesa Econômica – CADE), has made decisions that apparently point to the end of the hegemony within the sector”, says Luiz. With the change, many vendors may sell to thousands of clients, for example, without causing any damage to the integrity of the distribution business, thereby promoting competitivity.

An oil and gas (O&G) operation with the participation of Wilson Sons, in the state of Sergipe

The main challenges and expectations for the future of natural gas in Brazil

According to Thalita, flow and distribution are two big challenges: “more and more, we are looking at better ways to make them feasible, in order to improve the commercialisation of the gas.” Despite the obstacles, she envisages a trend of growth in the use of this source of energy, which can also be used as fuel. It must also be pointed out that natural gas is less pollutant and cheaper than diesel, and is also an excellent alternative as an energy solution for industry.

Even though Europe is still better placed in this market, Brazil may indeed become one of the largest producers in the medium or long term. For this to happen, there is a need to simplify internal processes and make a more consistent use of the opening, so that private companies may also participate in the tenders.

Elísio’s expectations also follow the same lines. In his opinion, with the increased exploitation of the pre-salt, the market will encourage the production and consumption of clean energy in the industrial segment. “We have some studies that have been carried out with shipyards owned by Wilson Sons, for the adaptation or construction of a tug using natural gas as fuel. In the long term, we look into the construction of a specific vessel with these characteristics, to operate in those projects related to the segment’, he reports.

Luiz feels that the most challenging task of all is that of identifying key consumers and ensuring there is a steady and continuous demand for natural gas. Other points that deserve attention are the following:

  • Qualification of the Brazilian National Petrolium Agency (ANP), to set new rules to govern the system of entry and exit, on hiring transport through the use of gas pipelines;
  • Assure due inspection;
  • Get the state regulators to set procedures so that all consumers can agree on their conditions, directly with the commercialisation companies.

In this way, it will be possible to develop an open and competitive market to make use of the natural gas of the pre-salt deposits, and thus boost the industrial growth of the country. This is because gas has an important role in the global energy grid, being considered a transition fuel in the generation of electricity, as well as ensuring the supply of renewable sources.

"In Brazil, the growth in the use of natural gas by the electricity sector shows the strategic participation of this supply in the energy grid. The expansion of the sector is imminent, with expansion of business opportunities in all stages of the production chain.

– Luiz Costamilan

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5

Environmental Awareness

Corporate Environmental Responsibility: adaptation for survival

Care for the environment can also be an important driver for innovation able to make sure that companies continue to thrive.

Care for the environment can also be an important driver for innovation able to make sure that companies continue to thrive.

The year 2020 starts with demands made by the founder and executive manager of the World Economic Forum, Klaus Schwab, about the responsibility of companies when faced with climate targets. There is a lot of expectation on the part of the United Nations (UN), from environmentalists, and also from economists, that 2020 will be a year marked by progress and action with regard to corporate environmental responsibility.

The companies that were present in Davos, at the beginning of this year, were called upon to take on a commitment with regard to the ultimate target of zero carbon emissions by 2050, or before. The letter sent to the people invited to the event – the company leaders – already said that this year’s meeting was the opportunity to show leadership when faced with a general concern about climate change.

Danish economist Inger Andersen, the executive director of the United Nations Environment Programme (UNEP), calls attention to the need for the environmental agenda to have an influence upon other segments of society as well as surpassing the scope of ecology. This is a position that has directed important institutions to the maritime and shipping segment, such as the International Maritime Organisation (IMO), and encouraged companies from this segment to establish a target of zero carbon emissions.

"The challenge of the companies is to avoide the short-term vision, take care of the pros and cons of investment in more sustainable technologies and solutions”. Cristóvão Alves

– Cristóvão Alves

According to Cristóvão Alves, head analyst at Sitawi, chosen as one of the best social and environmental research institutions for investors throughout the world, the most successful companies with the lowest possible impact on the environment, without any loss of production, are those that manage to use sustainability as a driver for generation of value, and not just of costs or marketing tools.

“The main challenge is to show that the additional cost of having a more responsible production chain is something that the end consumer must be prepared to pay. In segments like that of infrastructure, the challenge can be even more daunting as they are subject to regulated tariffs. For this reason, persuasion must be made in relation to the regulatory body, the Government, and society at large, a process which often takes time. In these cases, the main challenges of the companies is that of evading the short-term view, taking care of the pros and cons of investment in more sustainable technologies and solutions”.

Also according to the head analyst at Sitawi, in a process of natural selection of companies, the fact is that those companies that show no concern for environmental, governance or social issues tend to disappear in the long term. 

“The integration of sustainability into corporate strategy is a new technical paradigm that companies have to follow, either through their own free will or as a result of market pressure. Proof of this lies in the recent commitment by the CEO at Black Rock to decarbonify their portfolio of investments, or Goldman Sachs’ decision not to carry out IPOs of companies that do not have any representation or diversity at board level. 

Zero carbon tax until 2050 or earlier

Credits: Getty Images

What does it mean to have zero carbon emissions?

After all, does your company know what it really means to be a zero-emission company? According to the Specialist in the Environment at Wilson Sons, Camila Felipe, first of all it is necessary to make it clear that no company is entirely zero-emission, meaning that there is a need for initiatives of compensation so that emissions may be fully neutralised. Compensation of carbon emissions means the removal of carbon from the atmosphere through practices such as the purchase of carbon credits, thus becoming a company with zero liquid emissions of carbon.

“Companies should take up a strategy for the neutralisation of their carbon emissions, based on the idea of first reducing and then compensating. Neutralisation will be done in a responsible and orderly fashion; it is necessary to know exactly how much carbon is generated by the activities, through the inventory of greenhouse gases, to only then decide how these emissions can be reduced as much as possible, and finally choose the measures that will be taken to compensate for those emissions that cannot be eliminated. Logistic companies, for example, should invest in measures to boost energy efficiency and change fossil fuels for cleaner and renewable sources. Only after this mitigation effort shall the remaining carbon emissions be compensated by a similar quantity of removal of carbon.”

To avoid the worsening of global warming, Brazilian corporations may purchase certified reductions of carbon emissions, for annual compensation within the scope of the Clean Development Mechanism (CDM) of the Kyoto Protocol, signed by the countries that are members of the United Nations (UN), in order to reduce the emissions of greenhouse gases.

Alternative sources of energy

It is worth pointing out that one significant risk for companies is their strong dependence on fossil fuels. This risk means that organisations will have to appraise their decisions regarding present-day investments, which are sure to have a bearing on their existence in a future business environment that is less intensive when it comes to carbon emissions. Companies that have assets based on the use of fossil fuels need a strategy for adaptation; for this, the option is that of setting medium and long term targets, seeking the use of clean sources of energy.

The monitoring and control of targets for the reduction of carbon emissions can be carried out based on the methodology known as GHG protocol, which is used throughout the world to generate inventories of greenhouse gases. The aim here is to measure the emissions and identify sources to make mitigation initiatives feasible. Denise Maranhão, a specialist in Foreign Relations at Shell in Brazil, points out that, for a company to set its targets for the reduction of carbon emissions, it is necessary to come up with an inventory of emissions (scope 1, 2 and 3), in addition to adaptations to processes, with priority being given to actions that are more cost-effective.

“There is no ready-made formula that serves all cases. Each company needs to measure its carbon emissions regularly, and then devise a plan for reducing the carbon emissions that makes sense for the company’s specific process”. Denise Maranhão

– Denise Maranhão

Wilson Sons reduced emissions of carbon dioxide equivalent (CO2eq) in its operations by 12%

The climate challenge and the influence of reputation

Also according to the specialist, companies that do not care about the environmental issue shall suffer a reputation impact and be subjected to even stronger and quicker pressure from society, through social networks. There is also the risk of suffering commercial sanctions or severe judicial penalties.

“Shell believes that there is a need for society as a whole to tackle climate change. We feel that the long-term goal of attaining a status of ‘zero liquid emission of carbon’ is indeed a challenge, yet it is feasible. This requires urgent action and also long-term vision on the part of those people who set policies to encourage opportunities for consumption and commercial activities”.

The Anglo-Dutch oil company supports the Paris Agreement and believes that implementation shall require a variety of solutions and an unprecedented degree of collaboration between Governments, companies and civil society. “The establishment of the rules of the Paris Agreement may help the Governments to put a price tag on CO2 emissions. This is absolutely crucial, as it can trigger powerful market forces to develop a global system of low-carbon energy, in an economically efficient manner”.

“Shell has also supported Governments in placing a price on carbon, so that the oil and gas industry, the electricity segment, and the end consumer, may be encouraged to make themselves more efficient in terms of energy, and finally reduce their carbon emissions. The main target within the scenario of Sky Shell is that of having zero liquid emissions of carbon by 2070, in the whole world”. 

“In Brazil, for the implementation of a carbon market, it is very important that we establish the governance of the process and a clear regulatory mark, so that the companies may operate with predictability and with a lower element of risk. The mark shall consider the criteria for allocation of rights by emission and/or targets by intensity and MRV (Monitoring, Report, and Verification) of the emissions. In addition, the opportunities that the forests bring to Brazil, to avoid double counting, and the opportunities that Article 6 of the Paris Agreement brings for international transactions, in addition to the elimination of possible commercial barriers. We need to be more and more efficient in energy production, while we reduce our emissions at the same time.”

Wilson Sons has reduced the emissions of equivalent carbon dioxide (CO2eq) in its operations by 12%, according to the inventory on emission of greenhouse gases (GHG) of the company, compared to 2018. That year, the companies emitted a total of 54 thousand tonnes of CO2eq, compared with 62 thousand tonnes of emissions recorded in 2017. This is the sixth time that Wilson Sons is part of the Brazilian GHG Protocol Programme.

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6

Multimodal Logistics

Find out about the benefits of inland waterway navigation for Brazil

Understand why interior navigation is economically advantageous to the company and what makes it an immense untapped potential still to be exploited. A country of continental size must not ignore profitability and the possibilities offered by Interior Navigation. You may understand this more through the infographic!

Understand why interior navigation is economically advantageous to the company and what makes it an immense untapped potential still to be exploited. A country of continental size must not ignore profitability and the possibilities offered by Interior Navigation. You may understand this more through the infographic!

According to data released by the National Transport Confederation (CNT)I, only 19.5 thousand kilometres (30.9%) are effectively commercially used, out of the total of 63 thousand kilometres that could be used commercially, for the transport of goods or passengers. Inland waterway navigation may still show tremendous growth.

To address this highly relevant issue, we have spoken to Adalberto Tokarski — head of the National Agency for Water Transport (Antaq); Mário Borba, the manager of Wilson Sons at Tecon Santa Clara; Sandro Sabka, responsible for the management of the supply chain at ARLANXEO; and Diogo Cavalcanti, logistics manager at Duratex.

Shippers who have used waterways as an option for shipment.

The operation of inland waterway navigation and its current state of affairs

Inland waterway navigation is transport made along rivers, canals and lakes – be the routes national or international.

Apart from being very important from a historical standpoint, it is also a cheaper option, and with less impact on the environment and on transport security, when compared to other transport modals.

According to Mário Borba, manager of Wilson Sons at Tecon Santa Clara “this is the most competitive modal within multimodal logistics integrated through to the seaport. As if this were not enough:

This is a better option in terms of safety, a lower rate of damage to cargo, and also a reduced impact on the environment

Explains the manager of Wilson Sons at Tecon Santa Clara.

In the opinion of Sandro Sabka, responsible for the management of the supply chain at ARLANXEO, inland waterway navigation is still growing very slowly within the Brazilian national territory. “In a continental-size country like Brazil, this modal should already be well exploited – nevertheless, we are happy with the development of waterway transport to the port of Rio Grande.”

This transport modal has plenty of room for further growth in the country, with good examples becoming more frequent over the past few years, mainly with regard to shippers who have used waterways as an option for shipment.

On commenting the development of river navigation in the North of Brazil, Diogo Cavalcanti highlights the waterway connecting Porto Velho (Rondônia) and Belém (Pará), which is a good option for transporting raw materials to industrial plants in the Brazilian states of Rondônia and Acre. Previously, they would be supplied by highways passing through the Midwest and Southeast of the country.

Therefore, even in shorter stretches which, theoretically, would not make a transfer to partial river operations feasible, it is possible to note significant development. “Navigation between Tecon Santa Clara and the port of Rio Grande is a very good example of how the modal can be used in Brazilian logistics”, the Duratex director adds.

The relationship between Tecon Santa Clara and Tecon Rio Grande

On thinking about the moment experienced by Tecon Santa Clara, Mr Borba has identified “a very interesting trend towards growth of the multimodal terminal, which is what the Rio Grande do Sul market needs”. It must be stressed that there was container transport on the river/lake between 2000 and 2010. In 2016, the use of containers on the waterway once again became an option, through Tecon Santa Clara.

To get an idea of the close relationship with the terminal, any container passing through Tecon Santa Clara can only have one possible destination: Tecon Rio Grande. “We work with docking windows, and have two ships in this system, which go to Rio Grande four times a week. From Tecon Santa Clara to Tecon Rio Grande, there is transport round the clock – this way we can assure the shipper that the deadline shall be met”, Mr Borba explains.

Between the terminals, a total of over 2300 containers are shipped every month. “The transport from Tecon Santa Clara to Tecon Rio Grande is the most important mode of transport for sending our exports out of our unit at Taquari (Rio Grande do Sul)”, says Diogo Cavalcanti, who also highlights the logistics options offered, as well as assistance with the management of each export shipment.

In 2016, the use of the container on the waterway became an option again.

Tecon Santa Clara, Wilson Sons

The main advantages and challenges of inland waterway navigation

According to the view of Antaq’s director Adalberto Tokarski, the benefits provided by interior or river navigation are very clear. “River navigation is safer, emits less carbon dioxide (CO2), which is excellent for the environment, and has a very low incidence of accidents, thereby generating a wide-scope economy for society”, he says.

According to the director of Antaq, the greatest advantages are the following:

  • security of the crew;
  • security of the cargo;
  • transport flow;
  • economy of fuel;
  • increased competitivity and quality;
  • savings with services (indirectly);
  • lower operating costs when compared to other modals;
  • good cargo capacity.

With regard to navigation, Brazilian companies have felt the need to see technological solutions in order to have a safer operation on large rivers. This has made a contribution so that the vessels could have better resources for navigation and for the execution of certain manoeuvres.

To increase the use and operation of river navigation, Tokarski believes that:

It is necessary to consolidate this modal as a safe and attractive option for these operations, with navigable waterways prepared for navigation round the clock, including maintenance of dredging operations, signposting, and enhancement of the routes.

In Sandro Sabka’s opinion, “the greatest challenge is the need for a more solid style of planning, due to the lower flexibility of an operation of this type.” Diogo Cavalcanti stresses that it is necessary to expand the capacity for new flows and those capacities for flows that already exist, in order to bear possible impact caused by changes to the tides and lack of rain.

Expectations for the future and possible ways forward

According to Mr Borba of Wilson Sons, there is a general expectation of growth, because Tecon Santa Clara is now Brazil’s inland waterway terminal that handles most containerized cargo. “In the state of Rio Grande do Sul, for example, 66 municipalities have inland waterways. When companies have wide access to the terminals, they can make more use of this modal, which would be beneficial to all the parties involved”, he said.

On being asked about possible sources of inspiration for the practice of interior navigation in Brazil, Adalberto Tokarski mentions two models that would make sense in a territory whose sheer size is akin to that of a continent, and that has many logistic particularities.

He says that the US state of Mississippi and the rivers in the Amazon region have specific characteristics, yet are similar in some respects. “In the US, work was carried out to allow navigation throughout the year, which is positive. Another example is the navigable waterways in the Netherlands and the rivers in the country, where shipping canals have been constructed, this being a bit like the type of navigation we provide in the South of our country”, he adds.

Inland navigation is full of potential, and tends to be an interesting option of modal that is more and more commonly used within Brazil. For this reason, it is important to follow its development through referring to the CNT portal II, and understand what can be done to enhance it.

COMPARTILHE

7

The Employment Market

The future of work: the market and its transformations

The market has changed, and this is quite clear, but how shall these transformations affect the world of work?

The market has changed, and this is quite clear, but how shall these transformations affect the world of work?

It is a consensus: the transformations of the market shall have a direct influence on the future of work. However, how will these changes express themselves? How can one prepare for the challenges of years to come? Are there any trends that could point to the skills that will be required from professional people more often?

In order to obtain a more precise insight into this relevant issue, we have interviewed Aléa Fiszpan, the Director of Organisational Development at Wilson Sons, for a general think over the matter.

We have also spoken to Isabel Armani, a specialist in the future of labour and founder of Thérèse Organisational Development. Make the most of this information!

Aléa Fiszpan, Wilson Sons

Knowledge is accessible, meaning that everyone can learn a lot.

The transformations of the labour market

In the usual sense of those people who work in different segments of the economy, there is a general idea that machines and electronic devices are possible human substitutes. After all, who needs human workers, if robots can do more in less time? As Isabel sees it, this is a false impression, as technology shall be used more and more often to open space to human creativity, instead of replacing it.

However, for this goal to be reached, professional people must always invest in ongoing and continuous learning.

The people need to research more, make good questions, and understand the reasons and the consequences that are behind their actions in the workplace, the specialist says

Because of this, leadership must put their money on humanised treatment, which takes advantage of open and direct communication. We shall have processes that are even quicker and more innovative, which increases the importance of having constant dialogue in order to help people find the best paths when making their decisions.

Isabel believes that “those who know how to carry out a certain task should help those who do not know how to do it, and it is up to the leader to encourage a persons learning. From the formal standpoint, knowledge is accessible, meaning that everyone can learn a lot”.

Based on her experience at Wilson Sons, Aléa says that, even though there is no way of actually foretelling the future, it is possible to identify a few trends that have gained significant momentum in recent years, including those of staying in the same job through to the moment of retirement.

“The presence of the gig economy will grow – in this economy, companies hire people for one-off services, on demand. In this type of dynamics, it would be very common for people to have more than one occupation, meaning that professional people would have general qualifications, and thus be encouraged to explore new skills and aptitudes”, she adds.

What will the professional of the future be like? What skills shall be valued?

According to Aléa, the next decades will be dominated by people who manage to solve complex problems involving data and innovation, which requires some knowledge of many different areas. “Action shall be less individual and more collaborative, while the flexibility of people shall be extensive to the working day, which may be reduced in order to increase the well-being of the individual person and of the family unit”, she says.

Later on, she stresses the importance that emotional intelligence will have as a professional skill. “Professionals of the future will be required to follow constant and disruptive transformations. It will be necessary to have a healthy and flexible mind which manages to control our emotions, even though this can all change within a matter of hours”, she says. According to writer Yuval Noah Harari, who wrote the best-selling book Sapiens, individual people will be responsible for leading their own professional updates, the main point of this requalification being investment in emotional intelligence and mental health, as the barriers shall be psychological rather than physical.

Professional people who develop a specific set of skills are more likely to find good opportunities – after all, this is a context in which jobs will renew themselves very quickly. Some of the skills that will be taken as essential by recruiters, apart from emotional intelligence, are:

  • negotiating skills;
  • quick decision-making;
  • discernment to judge different situations;
  • cognitive flexibility;
  • willingness to unlearn and re-learn in a different way;
  • versatility;
  • curiosity.

While companies, governments and specialists discuss what should be done in the macroeconomic sphere, the professionals have the mission of getting ready for this new scenario. On the one hand, machines are going to ruin millions of jobs; on the other hand, they will create a completely new set of opportunities.

The estimate made by the World Economic Forum, in their “Future of Jobs Report”! of 2018, proves this. “According to this institution, the new economy will create 133 million jobs by 2025 – and 54% of these will require skills that do not even exist at this moment. Anyone who learns quickly and has a desire for innovation will end up standing out in this scenario”, Aléa explains.

Individual people will be responsible for leading their own professional updates.

Technologies and the future of work

Machine Learning, Internet of Things, Artificial Intelligence (AI), Blockchain and Robotics – you have probably already heard of at least one of these terms. These are just some of the Technologies that are turning not only the labour market on its head, as also daily routine and coexistence between people.

Also according to the “Future of Jobs Report”, in 2018 71% of tasks analysed by the research study were performed by humans, and 29% by machines.

By 2022, the distance will be narrower, with 58% of tasks carried out by humans and 42% by robots, which means that even activities that currently require interaction and reasoning will start to be automated.

According to Isabel, the transformations do not stop there. “The solution of a basic universal wage is already being sought after in some places. We need to understand our social impact, and support young people. Companies must have a commitment that goes beyond a simple quest for profit.”

To carry out some of the competences that will be in greatest demand, it is worthwhile attempting to include opportunities of development in your daily routine. According to Aléa, “the movement is irreversible and has been the subject of close and deep study within Wilson Sons. We must seek honest feedback, supported by evidence, and then we must also think of a plan for growth, based on this”, the Wilson Sons executive concludes.

Never fail to promote an exchange with people who could be a reference benchmark for these practices, and give even more importance to formal studies, regardless of the format – books, films, lessons, workshops and so on. This way, you shall always remain in a process of constant development.

COMPARTILHE

8

Looking to the Future

The maritime segment in this new decade: changes and expectations

From cleaner fuels to the development of cabotage, see what can be expected for this segment

 

The shipping segment’s areas of concern have now expanded to include the environment, technology, and artificial intelligence. Nowadays, the shipping business that transports thousands of tonnes a day and pulls the world economy along is no longer limited to the bureaucratic elements and maintenance. It is also no longer restricted to seaways and now opens up new possibilities for many other segments. Highlighting computer science and the integration between the new and the need for preservation, we have spoken to specialists and have taken a dive into the history of shipping, in order to produce a webcast that flows as easily as the waters of a river yet is as deep as the waters of the ocean. Come and explore with us!

From cleaner fuels to the development of cabotage, see what can be expected for this segment

 

The shipping segment’s areas of concern have now expanded to include the environment, technology, and artificial intelligence. Nowadays, the shipping business that transports thousands of tonnes a day and pulls the world economy along is no longer limited to the bureaucratic elements and maintenance. It is also no longer restricted to seaways and now opens up new possibilities for many other segments. Highlighting computer science and the integration between the new and the need for preservation, we have spoken to specialists and have taken a dive into the history of shipping, in order to produce a webcast that flows as easily as the waters of a river yet is as deep as the waters of the ocean. Come and explore with us!

Some people say that the maritime segment has not developed much when it comes to innovation, compared, for example, with the aviation or automotive segments. The maritime segment has made great progress with regard to modernisation, automation and artificial intelligence, but has not yet had the experience of a fully disruptive reality. In Brazil and in the rest of the world we do not yet handle autonomous ships, except in tests that have been carried out, for example, in Scandinavia, but even these cases are for small routes and ships, and with conditions that are appropriate for remote navigation.

It is not true that the maritime sector has not made that much progress since the Great Crusades, according to the CEO at Norsul, this segment has made tremendous progress. “In navigation, a major concern with the environment is now being consolidated, be this because of the shipping companies’ own reasons, by decisions of the shipbuilders, the community, the people and local cultures, or even due to requirements of the legislation itself.”

Ship emissions from air pollution worldwide are expected to drop from 5% to 1.5%.

The challenge of clean fuels

The passage from 2019 to 2020 has brought a major challenge for maritime transport: the mandatory need to reduce the sulphur content of fuels used in the sector, as established by the International Maritime Organisation (IMO). The agreement has dropped the sulphur content cap from 3.5% to 0.5% as from this year. This measure means that the participation of air pollution emitted by ships in the entire air pollution in the world shall tumble from 5% to 1.5%, according to this organisation.

“In addition, we have the mandatory installation of equipment that cleans the ballast water to avoid contaminations and harmful elements coming in from other countries. The installation of a system of filters is also compulsory, so that the water is always filtered before it leaves for the sea. This is very important, not only in the case of sulphur but also for other fuels, such as Liquefied National Gas (LNG) which pollutes even less.

This means that we can highlight, as a major development for the maritime sector, the building of awareness with regard to the issue of maritime waste, and greater rigor with regard to carbon emissions. The trend is to improve more and more.”

The manager for Institutional Affairs at Aliança and Hamburg Süd, Mark Juzwiak, is also looking into another project by the IMO, to reduce the emission of greenhouse gases (GHG), as from 2050 – a reduction of 50%. “Most of the major shipping lines were investing in new technologies to adjust to this project. Thinking ahead, considering possible new fuels, options such as gas and hydrogen are currently being appraised, together with other options that could come in 10 or 15 years.”

New partnerships, new business

The CEO of Norsul also highlights that Brazilian national industry has entered into significant partnerships with the maritime segment. “The expectations are that, with the new environmental regulations and also with the certificates that companies like to have, there will be an increase in demand for transport by sea and river rather than by road, as road transport is more sensitive in terms of insurance, accidents, cargo theft, pollution, and overall cost. Nothing has been formalised in this regard, but this is a trend expected to occur naturally”, he says.

The CEO of Log-In Logística, Marcio Arany, highlights that there is a major challenge ahead, and warns about the sector with regard to prices of ship fuel. “We are talking about an increase of up to 70% in the price of fuel for vessels. For companies that only operate along the coast, as is our case, and that only has a bunker supplier, as is the case with cabotage, this can bring a reduction of the competitivity of this mode of transport compared to road transport, which is our main competitor. Road transport runs on diesel fuel, which increases in price at the discretion of the Brazilian Government. In contrast, the bunker follows the world trend.”

According to Marcio Arany, the highlight of maritime transport over the last decade has been the development of cabotage and the increase in productivity. “Two important points have been the increased productivity of the terminals and also, in the case of cabotage, a significant improvement in the level of service as offered to the market”, Mr Arany mentions.

He also explains that, before 2010, in Brazil, we had services provided by small ships that had serious problems, breaking down often.

“There was a complete renewal of the whole cabotage fleet, with its containers from 2010 to now, and this has given an excellent standard of quality to the services along the Brazilian coast”.

Tugboat from Wilson Sons' fleet

The professionals in the sector and their new needs

About the professional of the future, within the maritime segment, Mr Baroncini feels that, as with any professional, constant retraining is the key to success. In addition, he stresses the increased female presence that the maritime segment has witnessed over the last decade.

“Nowadays, about 9% of the Norsul maritime staff is made up of women. Many of these entered as maritime pilots, then were promoted to the role of ship’s mate, and are now captains. Others started as machinery assistants and are now machinery supervisors. There are also lady engineers and machine commanders, these being the most important roles on board. They manage everything, and we have more and more women occupying these positions.

Also linked to the gender issue, Mr Baroncini explains that, in the maritime segment, men and women have the same qualifications. “The activity is very much militarised, meaning that everyone passes through the same school and has the same remuneration. However, I also feel that women are more concerned about learning through their mistakes and also take greater care with their daily activities”.

COMPARTILHE

9

Podcast

What to expect from the maritime market in this new decade

Portuguese version

 

Podcast transcription:

What can be done to improve vessels in the future?

Hi, my name is Diorela Kelles, and today we shall set sail on a trip about the future of shipping, also looking at what can be done to improve vessels. This is the podcast of New,s, the Wilson Sons magazine.

 To talk about this issue, we shall dive deep into some literature, and shall also talk to some of the people responsible for the transformations, research, studies and other work addressing the issue of shipping, in Brazil and in the world. For this reason, you the listener will listen to excerpts from our conversations and may understand how we are in this sea!

We surely understand one thing: to start talking about the future, there is a need to look back at the past, even for making comparisons. So now we shall start our trip through time.

The first boats that we know of come from some 10 thousand years ago, in the Neolithic period, also known as the New Stone Age, when the human species started to produce its first tools.

Those primitive boats of 10 thousand years ago had very limited functions: they were simple canoes. That was all! The main idea at that time was to make fishing easier!

These canoes were made of trunks of conifer trees, while the tools used were made of stone. Not bad for someone who had just settled, 10 thousand years ago!

Now, we migrate over to Asia, to the ancient Zhou dynasty, in a region that now belongs to China. This dynasty reigned from 1046 BCE to 256 BCE. Maybe this dynasty is not the best known by our culture, but it brought us something now very well known by those people who work in shipping. From this era hails the first records of the technology using a rudder on the stern of the ship. In a nutshell, the rudder is the part of the ship that guides it – something that the listener probably knows about; however, we take this opportunity to explain this again, in case your son or daughter is listening to this podcast at your side. After all, we are talking about the future of vessels, an issue that is of interest to all generations.

Now we shall experience a real time warp!

At the start of the 21st Century, wreckage was found in the Caribbean seas, which could be from the Santa Maria, which was the ship sailed by Christopher Columbus, the Italian explorer who, with Spanish financing, was responsible for captaining the fleet which reached the American continent on 12 October 1492.

The researchers’ announcement reached the press in 2014. But would those pieces of wreckage really be the remnants of the Santa Maria?

But what was the Santa Maria like?

The Santa Maria was a vessel of the carrack type, this being the name given to those ships that transported goods ‘cross the seas in the 15th and 16th Centuries.

These ships had round sails and high freeboard, and had three or four masts. Their capacity ranged from 200 to 600 tonnes, but some could carry up to two thousand tonnes.

To give you an idea, nowadays there are ships that carry loads of up to half a million tonnes. Of course, these are not the majority, but this type of ship already exists and navigates the seas of nowadays.

So, have we really changed that much?

A carrack was a three- or four-masted ocean-going sailing ship that was developed in the 14th to 15th centuries in Europe). Evolved from the single-masted cog, the carrack was first used for European trade from the Mediterranean to the Baltic and quickly found use with the newly found wealth of the trans-Atlantic trade between Europe, Africa and then the Americas. In their most advanced forms, they were used by the Portuguese for trade between Europe and Asia starting in the late 15th century, before eventually being superseded in the 17th century by the galleon, introduced in the 16th century. (Source: https://en.wikipedia.org/wiki/Carrack)

In a conversation with Angelo Baroncini, the President of the Norsul Shipping Company, we asked him for his opinion about the innovations that have been made in the shipping area, from ancient times.

Angelo Baroncini: “Shipping, from my point of view, if you look back, I don’t even think of the Vikings, Columbus or Vasco da Gama, in 1400 or 1500. From those days forth, the wooden hull has become made of steel. The sail that pushed the ship forward has become a diesel motor burning fuel, and there were no satellites like there are nowadays. In the past, navigators would find their way with the help of the stars. They even thought that the Earth was square, and that people would fall off the horizon. In five hundred years, not much has changed.

Quite a lot has changed regarding machinery, but still nothing like the changes that have been made to the aeroplane or the car: now people are even talking about driverless vehicles, and some tests have been made regarding the possibility of a crewless ship, but all this has been along short routes and involving small ships.  And obviously this would be with an Internet system that is much more developed than ours”.

Diorela: The truth is that the shipping segment continues to press ahead at a slower speed than some other segments that can even change quickly, all the more because they can make more mistakes without significantly jeopardising their business. This understanding is not only that of Dr Baronini, and is not only mine: it is also shared by Robin Segaar, of the DAMEN Shipyards Group, who feels that, the maritime segment being a global segment, any change would have to pass through an appraisal and through global adaptation.

However, this view does not mean that the shipping segment is lagging behind or with little development. Much to the contrary, some issues are now leading the Brazilian and the global shipping industry to rethink their methods of action.

Angelo Baroncini gave his own view with regard to the concern that the segment has shown for the environment:

Angelo Baroncini: ”In shipping, a greater concern with the environment already exists or is being consolidated. Whether because of the shipbuilders’ own reasons, or those of the owner of the ship, or due to issues concerning communities, people, or countries, or even because of the legislation itself.

It started with the need to change the ballast water as soon as you arrived from a certain country. By way of example, if you came from Asia, arriving in Africa, before finally coming to Brazilian Waters, there would already be the start of a procedure to empty the ballast tanks and then fill the tanks with ballast when closer, this obviously based on trust – because nobody can check this, which means that there must be trust on the part of the captain. This is not a very easy task, as it could even bring an imbalance, depending on the type on the ship. One must stop in order to do this. Then you start to have additional costs.

Now, the installation of a filter system is mandatory, so as not to change the water, as it shall always be filtered before going back to the sea”.

Diorela: Yes, indeed: the changes that are currently considered must always bear in mind the generated impact on the environment. This point is discussed among scientists specialised in technological innovation like professor Eduardo Aoun Tannuri, the Head Teacher of the Numerical Offshore Tank at USP, and by Rodrigo Barrera, another researcher at the Numerical Offshore Tank at USP (TPN- USP) and the CEO at Navigandi (a start-up).

Regarding the marriage between technological innovation and care for the environment, prof. Tannuri went straight to the point during our conversation:

Prof. Tannuri: “A simple answer is that all these development processes that we are carrying out, and that shall be carried out, always have two main goals and purposes: the increase of safety in shipping activities and, at the same time, an increase in the efficiency of the operations, to guarantee the use of optimised resources that are competitive in international terms.

Diorela: Increasing the efficiency of the ships of the future is a formula that may come along in many different ways. How is it possible to optimise, while offering services of high quality and generating less impact on the environment?

This is one of the applications of Artificial Intelligence on vessels. Rodrigo Barrera, from Navigandi and TPN-USP, explains a bit more about some aspects where this technology could help energy efficiency with the optimisation of the route.

Rodrigo Barrera: “Optimisation of the route, depending on where it is, manages to give a machine order and also information about the current which in turn uses less engine power.”

Diorela: Rodrigo also tells us that artificial intelligence may compensate for the intensity that is necessary for the motor. In this regard, we can see that Wilson Sons starts out in front, as this is a company that already applies the concepts of Artificial Intelligence in its tugboats, to optimise the work.

Since the end of 2018, the company is involved in a project for machine learning, for the development of an algorithm that adds more intelligence to its tugboats. Artificial intelligence also shows a diversity of uses in the ships of the future, adds professor Eduardo Tannuri.

Prof Tannuri: “We have seen a widespread use of Artificial Intelligence in issues concerning decision-making, as the human brain has a capacity to analyse and interpret data that one tries to emulate.”

Diorela: Rodrigo Barrera has some examples of this scope of Artificial Intelligence.

Rodrigo Barrera: For example, you can identify risks by using algorithms with special intelligence. There is a significant increase of spatial conscience during the manoeuvre, managing to establish many different alert signals and identify risks as establishment of a base for whoever is carrying out the manoeuvre.

Diorela: The theme of Artificial Intelligence is not that new, but its use in this way, in shipping, points to a future.

Prof Tannuri: “Artificial intelligence is in fact an old subject; what makes it stand out nowadays is its computational capacity. Graphic processors can perform algebraic calculations at lightning speed.

Diorela: The speed at which computers operate provides more time for human work and, with this, additional safety, and more space on the schedule to be taken up by training. The training courses of the past were very costly and could lead to many accidents. In the meantime, the training of the future, and even the training in the present, allow a dimension of realism with safety. How? This is what the specialists explain to us.

 Prof Tannuri: The simulator is much more intensely used nowadays as part of the engineering tool. What has happened more and more often is that the simulator is taken over to the real world. We have simple and portable equipment and, with the simulator, using information like those of IoT, and then getting closer to the real world.

Diorela: The Portable Pilot Unit (PPU) is an important element to bring what is recognised by data close to the real world: it offers data of the manoeuvre that the vessel is performing, and then precisely informs the angle at which the ship is being manoeuvred.

Rodrigo Barrera: “You have sensors that, when together have advanced filtering techniques, with the precision of one centimetre, and then one manages to get 2D vision of the vessel in operation.

It is also possible to predict where the ship will be in the future, and this helps with this part of mitigation of risk.

If you manage to collect this data for a new operation and then enter it in, then, after some time, we manage to show how this was done in the operations. Understand and also perceive if we are in the correct track trecking”

Diorela: The concept of digital twins is another aspect that also calls attention to application to the future of vessels.

Prof Tannuri: “The idea is that all equipment has the measurement being made and measured by sensors, sent to the ground through an efficient communication system. This data shall arrive at a data processing centre, and then this will be like a tugboat on your computer, with all parameters the same.”

 Diorela: This means that there will be a change in the way ships are constructed, and there could even be a robotic system for some processes, and 3D printing of parts. So this could lead us to conclude that vessel maintenance may also have its distinguishing factor. Is that correct, Rodrigo?

Rodrigo Barrera: “On the maintenance side, formerly carried out by a human mechanic, nowadays we have a wide range of equipments that measure many different parameters, enabling us to insert preventive maintenance, and this also helps to reduce costs.”

Diorela: With so much technology, you are probably asking yourself: ‘And what will the crew be like in the future’? The professor answers our question:

Prof Tannuri: “Any technological revolution changes the profile of labour, which must adapt, as the profile of work shall change.

Diorela: There is no doubt that the crews shall need to adapt, to acquire better and better qualification, of a more and more technical ilk. These are points that Wilson Sons is already seeking, and offering for the future.

Continue to pay attention to our publications, where we always have issues such as these, both in podcast form and in our very own magazine, Revista News. Thank you for following our work so far, and we invite you to continue to browse our social networks.

This podcast may also be of interest to your friends, so please share this with them, so that we may travel through the future together.

So that’s all for me at the moment, and I hope to see you next time! See you for the next edition!

COMPARTILHE

10

Safety in Transport

Security of cargo with high added value

With the growth of the luxury market, it is worth understanding the issue of technologies and processes that make transport more secure. Check out the video that we have prepared to address this issue!

With the growth of the luxury market, it is worth understanding the issue of technologies and processes that make transport more secure. Check out the video that we have prepared to address this issue!

The luxury market is going through a period of tremendous growth in Brazil. The expectations are now that this market will involve transactions totalling BRL 29 billion by 2023, according to consultancy company Euromonitor International. In addition, not even the crisis that has affected the Brazilian economy has had an influence on this segment.

According to data released by the consultancy company, between 2013 and 2018 there has been a 26% expansion of the luxury market in Brazil.

Even so, there are people who believe that the figures are still short of the true purchasing power of this public, meaning that there is still room for further growth.

With the growth of the luxury market, there is an increased need for additional protection, also for any kind of cargo with high added value that is attractive to criminal gangs specialised in cargo theft in Brazil. According to the vice-president for Armed Escorts at Fenavist and CEO of Macor Security, Autair Iuga, this includes private security services.

“Among these, we highlight the protection of famous people, like businesspeople and their families (VSPP), their homes and businesses (private security and surveillance) and also products with added value, when they are transported and when stored in Cargo Escorting. All these activities need to be duly regulated and authorised by the Ministry of Justice, and authorised by the Brazilian Federal Police”, he explains.

Safe at the Wilson Sons Logistics Centre, in Santo André

Technology in operations

Technology is also welcome and essential in all cases of private security. This technology includes security cameras, sensors, alarm systems, trackers, panic buttons, and equipment for recording and storing video footage, among others. The growth in the luxury market in Brazil is largely due to the increase in imports, which makes Armed Escort services be more and more in demand.

“Considering this segment, we can say that the rise in imports has generated an increase of 8% in contracting new employees

And also in the use of weapons, bulletproof vests, and appropriate vehicles”, Mr Iuga adds.

According to the vice-president for Armed Escort Affairs at Fenavist and the President of Macor Security, 2020 is a year with high expectations for private security services, as the Security Statute, which has been under consideration for close to a decade, shall finally be passed into law.  “The process for final enactment is nearing the finish line, and this is a nationwide need for modernity and efficiency”, he points out. In addition, the recent pension reform, and the decline in interest rates, are also changes that favour private security services.

Another factor that favours security services for high added value cargo is the certifications, such as the Authorised Economic Operators (AEOs), that also lead to a reduction of red tape, cost reductions, and slashing the time spent in Customs. It is also worth mentioning that consultancy and training with specialists in security help to reduce the distance and the application of the most perfect and best suited techniques for compliance with demand, as surely only specialised and duly authorised professional people shall carry on until the end of the mission, thereby assuring the security as required.

Secrecy is another issue to be observed when considering security of high added value cargo – upmarket retail, chemicals, and defence items. According to Rodrigo Rocha, the commercial manager at Wilson Sons,

Even before the process gets under way with the signing of non-disclosure agreements (NDAs), the Project for cargo security may only be accessed by those directly involved; in other words, by professional staff specialised in this logistical activity

The importance of infrastructure and processes

“Security is what you get when you add infrastructure and procedures. These two fundamentals are directly connected and must always stay together for the security of the process. In the case of infrastructure, there is a need to have strong apparatus, processes, hardware and software to help with the management of the operation. For example, Wilson Sons has CCTV systems operated through a bunker, and a risk insurer, in a remote area. Access to operate the cameras is restricted. There is also biometric control for areas where the boxes are stored, and only some of our staff have permission to access these areas”, he says.

The commercial manager of Wilson Sons also highlights the importance of integrated work to ensure cargo security when it arrives at a border zone, airport, or seaport. “We have a system which is integrated with Brazilian Customs (Receita Federal) which tells us the exact time the cargo will arrive, and also how it will arrive. This means we can prepare for the arrival of each cargo shipment specifically. There are alert mechanisms that send this cargo information to the depositary and also to the operator at the gate.”

“This means that there is an overall check and we therefore know the vehicle, the number plate, and, in the case of transport by sea, the number of the container. We have automated number plate readers that make sure that the cargo has arrived. The driver is already on the database that gives further security to the operation. When all this is validated, we get authorisation for the cargo to enter. It comes duly sealed by Brazilian Customs and we therefore complete the transit in the period when physical and digital security makes sure that this seal has the same number – in other words, has not been tampered with. The transport system is also able to identify if the cargo has somehow been deviated or not, because the route is monitored and also because there is a specific deadline for the consignment to arrive.”

Wilson Sons has, for example, CCTV systems, operated through a bunker, and a risk insurer, in an isolated area.

The performance indicators for this segment

To make sure of total security with high added value cargo, Rodrigo Rocha also reminds us of the importance of having performance indicators. “We have highly operational indicators, based on length of stay. We know how long the goods took to leave, to be offloaded, when the presence of cargo was confirmed, all this also being duly validated by Customs. Then, at the end of the process, after storage, one knows where the goods were stored, the physical address.”

He also explains that there is a need to control whether there has been any difference of volume or weight.

Wilson Sons has its own performance indicators which can be established according to clients’ needs, to measure the efficiency of security measures for high added value goods.

“We suggest some standard indicators, but at the same time we are open to construction of new indicators for each client. We put together a panel, and can do this every week, or even every day, as the case may be”.

The operators handling high added value cargo also need to be very well qualified. “The operators should be trained in areas such as asset security, theft, and damage. They are prepared to take action, both with regard to the equipment, such as.forklift truck operators, and manually so that nothing is damaged. They are constantly put through refresher training to make sure there is no damage to the goods.”

There is also a need to take care of cargo with high liquidity, meaning high-value cargo that could easily be absorbed by the parallel market. “This requires greater care during operation, to make sure that the goods are indeed protected”, he stresses.

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