Athens, Greece. Columbia Group president and chief executive Mark O’Neil said the cost of creating “smart vessels” has fallen sharply, making digitalisation a viable option for shipowners and managers.
Cost perceptions and changing economics
Speaking at a Capital Link conference in Athens, O’Neil said a major barrier to digital adoption in shipping is no longer the technology itself, but a misconception about cost.
“There is still a perception in the market that digitalisation is expensive,” he said, adding that this may have been true in the past but is not true today, and that “the economics have changed completely.”
Lower-cost upgrades and faster returns
According to a statement, advances in sensors, cameras and optimisation software have reduced the cost of making vessels fully digital.
O’Neil said upgrades that once required around $50,000 per vessel can now be installed for closer to $5,000, while delivering higher-quality data and greater functionality.
He said a vessel can now be made totally smart for a fraction of the former cost, and that in many cases return on investment can be achieved in weeks through fuel savings and operational efficiencies.
Training, complexity and standardisation
O’Neil said outdated cost assumptions continue to slow adoption in parts of the industry, though perceptions often change once owners see current economics.
He also pointed to training and system complexity as challenges, saying early digitalisation efforts produced fragmented solutions that required separate platforms and training programmes.
“Our people are extremely busy,” he said, adding that they want integrated platforms with a common interface, where training is done once and multiple tools can be deployed, and that standardisation is critical for effective use.
Smart vessels and decarbonisation
O’Neil emphasised the role of smart-vessel technology in decarbonisation, particularly as the industry reassesses the pace and practicality of alternative fuels.
He said alternative fuels will play a role, but that very few vessels currently operate on them as a single fuel source.
How do you see cost, training, and standardisation shaping digital adoption in shipping?