Srt Marine Systems Share Discussion Threads

[desha] 29/6/2018 12:48

thanks LaV. Had assumed Vietnam was asking the EU to fund at least partially

[lavalmy] 28/6/2018 12:57

goodapple

Couldn't have put it better myself.

[goodapple] 28/6/2018 12:55

I quote from a reply I received from ST some time ago, regarding SRT's main markets being outside the EU:

"For SRT, our opportunities are all outside of the EU. The EU is, today, a minor commercial marine market. For example the Vietnamese fishing fleet alone is 50% larger than the entire EU fishing fleet. They do not have VMS systems currently and cannot afford the version of VMS system used in Europe. This is where our AIS based version, which has a low per vessel installation cost and low ongoing operating costs is so attractive and why we are making such good progress with our plethora of discussions with these countries in particularly in the area of fisheries."

I look forward to Vietnam getting up and running, to be followed by others from "the plethora".

[philburt] 28/6/2018 12:26

LaV - Good points. Thanks.

[lavalmy] 28/6/2018 11:51

desha

If Vietnam are short of funds, they will go with the most cost effective solution. The loans that CLS manage to organise from the French (not EU) government still have to be paid back, so the question of cost remains - if CLS is 66% more expensive, it would require a heck of a soft loan to make the NPV cost to Vietnam equal to a self-funded option.

There is also the point about scalability - if they are going to track the other 80,000 fishing boats that don't go far offshore, they can do that with the AIS infrastructure and no communications costs. In the government document, they are planning to do just that. Plus you have EEZ security and port management aspects. All that can be added on to an AIS system.

The original CLS Movimar system was paid for by a French loan. Vietnam are now stuck with having to repay that. I imagine that they are now much keener on value for money.

[desha] 28/6/2018 11:40

Hi LaValmy

What with Brexit, why would SRT be in a better position to beat CLS to Vietnam?
If EU funding, then they may well insist on CLS (France) despite SRT being superior solution.

[lavalmy] 28/6/2018 07:25

This other article is more explicit about the main reason for the continuing yellow card.



The Movimar system is CLS.

The way I see it is that the EU is insisting that they track at least the 30,000 offshore boats and the Vietnamese are saying that they cannot afford to do so. Maybe they are trying to get some sort of financing from the EU, maybe not. But cost seems to be the big issue. If SRT's assertions about their cost profile (and claims of superior performance as well) are true, then one would have to think that they are in pole position.

A further point is that if the EU is returning in January to review the situation, action must have been started by then to make it worth the bother.

[countryman5] 27/6/2018 21:14

Philippines and Vietnam are previous contracts for CLS. The Philippines Philo phase 2 was supposed to be funded by France and no doubt CLS assumed it was going to them. My understanding is that the recent fundraising indicated that an unnamed country was now going to fund a major contract with SRT rather than another source ( I read France). Recent gallery photos and ST comment on the webcast suggests that SRT is in line for the Vietnam contract, previously CLS contract. I am reading between the lines and all will eventually be revealed.

[hjb1] 27/6/2018 16:16

what have SRT 'stolen' so far exactly?

[countryman5] 27/6/2018 15:41

Clearly Mr T will not be getting christmas cards from CLS unless CLS can acquire SRT and put Mr T on the pay roll!!!!
CLS must be seriously aggrieved that little SRT are stealing their bread. I am expecting a takeover approach which I hope will be kicked away.

[lavalmy] 27/6/2018 13:57

Well yes and no. They would just have the set-up for a proprietary VMS system. How useful that could be for anything else, I don't know. It certainly isn't AIS so would be difficult/pointless to integrate with e.g. coast stations, though I imagine that they would try to harmonize the reporting of the catches etc. Probably be cheaper to replace the transponders with SRT's AIS based ones so that they are all running on the same system. I mean 3,000 old versus 30,000 + 3,000 new (eventually).

The control centres themselves would be in the fisheries department, I suppose, so as rooms...

[hjb1] 27/6/2018 12:51

what would happen with the current infrastructure already in place ie; the three control centres for instance.Could SRT utilise them I wonder?

[lavalmy] 27/6/2018 12:42

I think the real advantage that SRT has is that they use AIS with satellite as an add on. Once the infrastructure is in place, it is scalable quite easily to cover, e.g non-fishing boats, and other applications such as ports and security, and there are no ongoing communication charges except for satellite when needed.

[hjb1] 27/6/2018 12:32

new supplier, , no probs sir.. world leading technology, no probs sir, 40% discount, no probs sir,....bring it on!! lol
Can anyone else compete on quality and cost ?

[philburt] 27/6/2018 12:23

Interesting stuff guys. Thanks for the info.

[yumyum] 27/6/2018 11:53

I also see that CMS have an office in Vietnam.

Project manager in 2013 on LinkedIn said:

Project Management Officer of the
▪ MOVIMAR (Satellite Monitoring of Vietnamese Marine Domain and Resources) Project which represents a contract of 13.9 M€ and involving different themes: VMS (Vessel Monitoring System: location of 3000 fishing boats) and associated control centers in 3 cities in Vietnam, marine forecasting weather center, provision of services associated on 4 years,
▪ Supply of Satellite services and Oceanography/Hydro-Meteo data transmission after the end of MOVIMAR project for 2 years, which represents a contract of 3.1 M€,
▪ LRIT (Long-Range Identification and Tracking of ships) project which represents a contract of 1.1 M€,
▪ LRIT Support services which represents a contract of 85 k€/year


Looks like a 6 year contract from 2011 presumably, and hence Vietnam now looking for a potentially new competitive supplier.

[yumyum] 27/6/2018 11:52

Thank you LaValmy. I see the contract was originally won in 2011.

[hjb1] 27/6/2018 11:43

40% cheaper, wow! that's some saving!!

[lavalmy] 27/6/2018 11:14

Just as an rough guide, CLS got paid €13.9 million for setting up the system in Vietnam for these 3,000 boats, including three control centres and four years of tracking. Additional tracking costs €1.5 million per year, or a cool €500 per boat.

If Vietnam is going to move towards tracking all 30,000 other fishing boats, which they have said they will, the potential is clear. It would be nothing like €500 per year, maybe $50-75 for simple tracking to quite a bit more if they are uploading catch information etc.

[lavalmy] 27/6/2018 10:40

News about the Vietnam yellow card:



The 3,000 vessels currently monitored are done by CLS. SRT have been touting themselves as 40% cheaper than rival systems.

[fft] 24/6/2018 05:06

C5, why do think the companies solicitor would vet/agree to the vsp before it went out ? There is nothing sueable about a VSP ! And how would a solicitor vet it ? Go and speak to all the customers ? Lol !If you have been involved with aim for the last 20 years plus, you would know the nomad is only interested in fees. There is no sanction against nomads who don't check company info. Look at the 40 Chinese aim stocks that have gone bust in the last 10 years with all kinds of false stories, dodgy accounting and pure lies.I do think SRT have a good story. It hasn't come in yet, but even with a contract or two, I don't think the price will take off until it is shown the cash is coming in - the Indonesia silence for a long time means investors will be cautious.