Edge: Fast Response

The Edge: Fast Response

The Fast Response Edge

overview

The US Coast Guard and Homeland Security as well as their global counterparts continue to beef up their efforts at protecting their maritime borders from drug smuggling, human trafficking, illegal immigration and various forms of terrorism.

Market

Offshore Patrol Vessels (OPVs) are the fastest growing segment of the Naval Vessels Market. At least 23 countries are known to have a total of 76 OPVs on order or planned at a value of over $10 Billion.

OPVs can be broadly classified into 2 types; 1) High‐end war‐fighting vessels with expensive weapon systems and C4I suites and 2) More basic patrol vessels, designed for sustained low intensity missions and equipped with basic gun armaments, standard navigation sensors and built to commercial standards.

It should be noted that the worldwide interest in an OPV such as Seaphantom can be measured by the number of inquiries SPI has received before we have even launched – virtually every country in Latin America, Africa and the Middle East in addition to Australia and most of Asia.

OPV Usage Survey I

Piracy

The piracy threat is the most significant threat facing global navies, border security patrols and commercial sea traffic according to 71% of respondents.

An array of 25 Seaphantoms could be deployed at 40 mile intervals forming a picket line 1,000 miles long with a minimum Time To Target of only 10 minutes at 120mph/104kts. Such a solution would cost a one time amount of under $250 million with annual operating expenses under $25,000,000 – far less than the annual financial toll.

Port Security

In 2010, SPI formed a strategic alliance with one of the world’s leading sonar companies, Danish-based Reson, Inc., which has allowed us to create a formidable system for protecting ports, oilfields, etc. from terrorist cells using mini submarines and/or trained in scuba diving.

Search and Rescue (SAR)

Every year, 1.2 million people die by drowning – 2 every minute. According to the same report by the International Lifesaving Federation, more than 1 million others are rescued during that same period. Many of these drownings occur in the ocean and inland waterways patrolled by the US Coast Guard and similar emergency response agencies around the world.

The United States Coast Guard is the leader in SAR operations, coming to the assistance of an average of 114 people per day at a total cost of $680 million annually [source: Fagin]. A Coast Guard patrol boat costs $1,147 per hour, and if the rescue requires the use of a C-130 turboprop plane, the bill increases at a rate of $7,600 an hour [source: Sharples]. These are only the hard costs associated with operating the various rescue tools. It does not include man hours or money tied to the training of the personnel.

Seaphantoms could augment these operations globally, bringing an element that in many cases will be faster, better and cheaper. The Seaphantom’s range, low fuel consumption and lower operating costs present significant advantages over both helicopters. The same applies to naval vessels along with Seaphantom’s superior speed.

Capital/Operating Costs

Many of the costs affecting the OPV market are similar to those of the Offshore Services industry since they both rely primarily on helicopters and maritime vessels, both of which have higher operating and capital costs than those seen with the use of Seaphantoms.

While costs can vary widely depending on the size, type and armaments on an OPV, average capital cost tends to be above $100 million.

In an actual case SPI was involved, a country had planned to buy 4 $110 million patrol craft for $440 million. The craft were to over an area of 10,000 sq mi with a length of 120 miles. They asked us what we could do and presented them a proposal wherein they would buy 3 of the regular patrol craft while spending $100 million on ten heavily armored Seaphantoms.

Besides our ability to traverse the length of their area of concern in 1 hour as opposed to the larger ships 5 hours, our stealthiness, range, fuel efficiency, lower operating costs, drone/satellite connectivity made a clear winner. The government awaits our launch in 2013.

OPV Usage Survey II

Value Propositions

FAST RESPONSE : Value Propositions
CategorySP vs BoatsSP vs Helicopters
SafetySaferSafer
Speed2-12x fasterEquivalent Cruise
ComfortSmootherSmoother
Capital CostLowerLower
Operating CostLowerLower
EmissionsLowerlower
Fuel Efficiencygreatergreater
Capacitylowergreater

Speed Comparisons

FAST RESPONSE : Speed Comparisons
ModeSpeedSeaphantoms
Boat10mph
8.68kts
12 x faster
Fast Boat15-20mph
13-17.4kts
6-8 x faster
Catamaran30-40mph
26-34.8kts
3 x faster