Class society Lloyd’s Register (LR) has announced an agreement to acquire maritime e-learning software provider Ocean technologies Group (OTG) from private equity firm Oakley Capital.
The buyout means that OTG, which provides critical training, compliance, operational and HR software to more than 1,000 shipowners and operators and in excess of a million seafarers globally, will now be amalgamated into LR OneOcean, LR’s digital services division. LR in turn will be able to offer OTG’s solutions across a fleet of more than 30,000 vessels. LR OneOcean, which itself was previously a separate company acquired by LR in 2022, has expanded rapidly and will employ around 800 staff after the OTG acquisition is completed. In 2023, LR also acquired a 50% interest in crew compliance software solution ISF Watchkeeper.
Martin Penney, CEO of LR OneOcean, tells TNA that while traditional classification remains at the core of LR, the society wants to offer today’s shipowners much more. He explains: “It’s all well and good to build a good ship, but we need to make sure that it’s operated and maintained correctly through the use of cloud-based fleet management.
Penney believes that OTG’s services represent the “third leg on the stool”, in that the buyout means LR can offer shipowners and operators quality assurance across a comprehensive portfolio of services.
He explains: “We understand the design and construction of safe ships and we understand operation from a mechanical point of view. But we didn’t necessarily touch seafarers directly and that’s where OTG comes in, [so] we know it’s a well built, well designed and well operated vessel with competent crew onboard.”
In recent years many of the leading classification societies have sought to diversify their services through acquisitions. Penney says that LR’s own strategic choices are borne of customer demand, with many shipowners seeking help from LR on matters such as the availability of alternative fuels – as well as the handling and operational requirements – before ordering new ships. The OTG acquisition gives LR access to the e-learning market, one which Penney thinks is likely to grow significantly with that transition to new fuels:
“People need to know how to handle those fuels. Ocean Technologies has a fantastic Ocean Learning platform and LR brings the expertise to make new courses available on that platform to help drive the energy transition. At LR OneOcean we’re really trying to push digitalisation of the industry; part of decarbonisation is bringing the industry closer together and the way to do that is through having a common set of data.”
Increasingly, e-learning of crew extends above and beyond the minimum requirements. In early September, the Oil Companies International Marine Forum (OCIMF) announced that its newly-digitised Ship Inspection Report Programme (SIRE 2.0) is now live. Effectively the standard for tanker inspections, SIRE 2.0 places increased emphasis upon crew behaviour and requires more diligent enforcement of training. With BIMCO also contemplating similar measures for the dry bulk sector, e-learning is a cost effective means of supplementing basic training.
“One of things our customers found during Covid, as we all did, is there are plenty of things that we thought could only be done face-to-face can actually be done online very well. There are lots of technologies now with AI to make sure it really is the person taking the test and they’re not looking things up online,” explains Penney.
He adds that as a member of IACS and an organisation that works closely with Flag States, LR is well positioned to provide OTG with guidance on the regulatory direction of travel to ensure crew competence is aligned with that.
