Sailing Towards Innovation: Shanaka Fernando on GAC Group’s Future in Shipping
In this insightful Q&A, we explore the dynamic perspectives of Shanaka Fernando, Group Vice President – Shipping at GAC Group. With extensive experience in the maritime industry, Fernando shares his thoughts on the evolving landscape of shipping, highlighting the critical role of sustainability, digital transformation, and innovation. He discusses how GAC Group is preparing to meet emerging trends and challenges while maintaining its commitment to high-quality service standards. As the shipping industry navigates an era of significant change, Fernando’s insights provide a roadmap for future growth and success within GAC and beyond.
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Global Operations and Local Expertise: With GAC’s global reach and local presence in over 50 countries, how does the company ensure a consistent quality of shipping services across diverse geographies and regulatory environments?
As one of the world’s largest shipping agencies, GAC represents more than 3,500 principals and handles over 100,000 jobs annually. In addition to having more than 300 GAC offices in over 50 countries, GAC operates regional hubs staffed by specialists who understand local market dynamics and regulatory environments. This helps ensure a customer-first approach that combines our global reach with local expertise, enabling us to tap into our extensive network to tailor services that meet global, regional, and country-specific regulatory and operational requirements while maintaining a single global standard of excellence.
We also work with a network of trusted partners in locations worldwide where we do not have a direct GAC presence. The GAC Supplier Vetting System (GAC SVS) supports our company in maintaining an effective supplier vetting process, which is essential for our supplier management.
Standardisation is a critical aspect of our business approach. We employ standardised operating procedures and advanced in-house IT solutions across our network, ensuring efficient and secure operations wherever we go. This facilitates seamless coordination of information between offices and guarantees that our services consistently meet the highest quality benchmarks, regardless of location.
The GAC Corporate Academy (GCA), an ISO-certified learning organisation within the GAC Group, offers a range of core and job-specific courses to all staff. Utilising modern eLearning technology, workshops, and practical work-based learning methods, GCA provides programs covering areas such as Shipping Agency Operations, General Data Protection Regulation Awareness, Cyber Security Awareness, and IOSH Managing Safety. These programs are designed to improve business performance, operations, commercial skills, and personal and professional development.
We are committed to upholding the highest levels of the GAC Group’s Compliance and Ethics policy, ensuring that our practices meet rigorous compliance requirements and reflect our dedication to ethical conduct in all aspects of our operations. We emphasise compliance with international standards and certifications, such as TRACE certification and ISO 9001, to uphold strict quality and safety benchmarks. Our Quality Management System (QMS), based on ISO 9001:2015, enables us to document and improve practices to better satisfy the needs and expectations of our customers and stakeholders.
This commitment extends to our adherence to health, safety, security, and environmental (HSSE) standards, reflected in our HSSE Management System, which establishes Group-wide minimum standards for our business activities. This incorporates principles from the International Labour Organization (ILO) health and safety standards, ISO 45001 – Occupational Health and Safety Management Systems, and ISO 14001 – Environmental Management Systems.
Role in the Energy Sector: Given your extensive experience in the oil and gas sector and your role in the Middle East, how do you see the evolving energy landscape influencing GAC’s shipping services?
The energy industry is shifting from traditional operations to more sustainable and renewable projects, reducing investment in high-risk, capital-intensive exploration. Greater investment will be directed toward sustainably sourced power, with offshore wind currently dominating. However, other sources such as offshore solar panels and wave/tidal energy will also play a role, and innovative methods of creating sustainable energy are expected to emerge. Alongside the development of new technology, offshore wind, particularly floating farms, will expand into new territories in South America and Africa, similar to how oil exploration ventured into new frontiers and deeper waters.
Despite the accelerating transition to renewable energy, global demand for power continues to grow rapidly, which means a continued strong demand for fossil fuels. This transitional paradox is especially pronounced in the Middle East, which supplies more than one-third of the world’s oil and gas. While countries in the region explore alternative, sustainable energy sources, they also face renewed demand for oil and gas, particularly offshore. As a result, we expect increased demand for cost-effective, fast, and reliable support services, even as the offshore sector encounters significant challenges, including geopolitical issues, supply chain constraints, and stricter regulations.
GAC’s extensive experience in the energy sector, spanning over 60 years, positions us well to adapt to industry changes and emerging trends. Our understanding of local requirements, combined with strong relationships, allows us to quickly and efficiently address customer needs. We specialise in providing an integrated range of tailored upstream and downstream support for energy exploration, development, and extraction, as well as for the growing renewable energy sectors. Our strategic warehousing and yard storage facilities, along with base management hubs in Norway, the Netherlands, the UK, the US, the UAE, Singapore, Brazil, and South Africa, support a wide scope of offshore operations. Our GAC Hub Services team assists many of the world’s leading energy companies on a regional and global basis, from seismic surveys to wind farm installations.
To tackle supply chain challenges, we use regional consolidation hubs in the Middle East to stock critical spare parts with high transportation costs or short shelf lives. This approach provides rig managers with flexible access to necessary components, reducing costs and preventing shortages. Similar solutions are implemented in key energy locations globally. Owning our fleet of vessels, including workboats, tugs, and barges, further strengthens our supply chains. In a competitive environment where customers seek to drive down costs, GAC continually innovates, integrating advanced technologies and optimising processes for greater project and cost efficiency.
Our adaptability is crucial in today’s energy market, ensuring we provide reliable and efficient support to our customers. GAC is well-placed to meet this demand with our existing facilities and the ability to quickly set up and operate new supply bases when and where required. We understand the importance of growing in line with our customers and their projects to provide sufficient and cost-effective support services.
Navigating Global Challenges: The shipping industry faces significant geopolitical and inflationary challenges. How is GAC navigating these challenges while maintaining high service standards for its customers?
GAC prioritises commercial resilience, stability, and a measured approach to maintain high service standards. Geopolitical challenges, such as disruptions to trade routes and regulatory changes in different regions, impact the flow of goods and services. Our diverse service offerings and geographical presence allow us to adapt to market changes and continuously evaluate and benchmark against industry best standards, keeping us competitive and agile. By diversifying our portfolio and expanding our footprint, we mitigate risks associated with geopolitical instability and ensure that we can continue to provide reliable services to our clients regardless of external pressures.
Consistency and efficiency throughout our global network, along with the use of advanced technology and digital solutions, enable us to streamline processes to maintain high-quality service standards. By leveraging cutting-edge technologies like real-time tracking systems and automated documentation, we boost our operational efficiency and reduce the margin for error. Technological integration also ensures we meet stringent quality benchmarks and provides transparency for our customers.
We proactively assess risks by evaluating alternative suppliers, shipping routes, and inventory levels, creating robust backup strategies to ensure uninterrupted operations. Regular risk assessments and contingency planning enable us to respond swiftly to unexpected disruptions. By maintaining a network of reliable alternative suppliers and flexible shipping routes, we can quickly adapt to changes and minimise the impact on our supply chain.
Furthermore, optimising inventory levels helps us manage resources more effectively, ensuring we can meet demand even during periods of instability. This comprehensive risk management approach fortifies our ability to deliver consistent and high-quality services, regardless of external challenges.
Innovation and Industry Standards: Innovation is key in the shipping industry. Can you discuss any recent technological advancements or initiatives at GAC?
With Crew Desk Automation in GACagent, GAC’s in-house developed shipping operational system, the update of crew members’ passports and visa files is automated. It also generates crew, passport, and visa entries automatically. By reducing manual work and errors, this feature speeds up processing and ensures that documentation is always up to date, making operations more efficient and reliable.
Our Port Line Up digital solution is a comprehensive online visualisation tool offering real-time updates on port activities, including vessel arrivals, departures, and berth assignments. The standardised, up-to-date information improves voyage planning, reduces administrative workload, and supports better decision-making.
Digital Transformation in Shipping: How has the digital transformation impacted GAC Group’s efficiency and service delivery in the shipping sector?
Digital transformation requires balancing human expertise with technological innovation to better support our companies in a volatile and highly competitive market. GAC achieves this balance by investing extensively in our in-house IT department and training programs to ensure our workforce can effectively utilise our systems. Our ISO 27001-certified IT processes secure data across all our systems, allowing customers to prevent supply chain breakdowns, avoid delays, and reduce costs.
As the business technology landscape evolved, GAC identified the need to connect its global network of operations more effectively. Aware of the limitations of paper-based documentation, which can slow down supply chains and is prone to human error, GAC adopted automated and digital documentation processes early on. We introduced a proprietary and flexible management system to optimise shipping service efficiency, providing customers with real-time data, KPI reporting, and connectivity with their own ERP systems. This significantly streamlined operations, reduced manual intervention, and increased operational agility, transparency, and responsiveness across the Group.
Cybersecurity is a pressing concern, so ensuring the confidentiality, integrity, and availability of data exchanged over the 100,000 port calls GAC handles annually is crucial to maintaining trust and safeguarding sensitive information. By centralising multiple on-site data centres across 50 countries, GAC migrated to the Azure cloud to increase availability, bolster security, and advance data management. This centralised platform connects all critical systems, suppliers, and the customer network, facilitating seamless data flow. With this infrastructure, GAC can deploy new features 90 percent faster than before, boosting speed and agility in solving business needs.
People-Centric Approach: As GAC emphasises the importance of people and relationships in its business philosophy, how do you foster a positive and productive work culture within your team?
GAC has a proud heritage of investing in our staff, empowering them to be customer-focused and people-driven. They are always at the end of the phone, offering constant support to promote a truly interconnected supply chain. GAC employees around the world are given the opportunity to upgrade their knowledge through a range of courses offered by the GAC Corporate Academy (GCA), specifically designed to provide them with the training they need to meet the needs of our diverse customers. We also place a premium on their physical and mental welfare, both inside and outside the workplace, offering support when needed and training for staff members to recognize and assist colleagues who may be struggling.
Corporate Culture and Heritage: Reflecting on GAC’s history and your journey with the company since 1994, how do you think the company’s Swedish roots and seafaring heritage influence its corporate culture and business philosophy today?
Established in 1956 in Kuwait by a team of Swedish shipping executives, GAC Shipping marries the seafaring heritage and straightforward business customs of Scandinavia with the Gulf’s traditions of hospitality and strong personal ties.
GAC’s founder, Bengt Lindwall, believed in people. He recognized that good business was conducted by good people who were inspired, motivated, and valued. He laid down a set of caring values that still guide GAC’s approach to our people, customers, suppliers, and the communities in which GAC employees live and work.
That pioneering spirit and open attitude towards opportunities continue to define GAC today as we expand our geographical reach and range of services while applying an entrepreneurial mindset to new opportunities.
Now, from the Middle East to Africa, Asia, and the Americas, people everywhere have learned they can count on GAC to get the job done professionally and with a smile.
Sustainable Business Practices: Can you share insights into GAC Group’s approach to shipping services and how it aligns with the company’s commitment to sustainable practices, as highlighted in GAC’s roadmap to sustainability?
GAC is committed to decarbonizing and achieving carbon neutrality by 2050, aligning with global sustainability goals. Our Roadmap to Sustainability is grounded in the United Nations’ (UN) Sustainable Development Goals and focuses on reducing our carbon footprint, promoting renewable energy, and supporting sustainable practices across all operations. By prioritising ‘adapt, innovate, and reduce,’ GAC engages stakeholders to create long-term value while maintaining high service standards.
GAC is part of the Global Maritime Forum’s Getting to Zero Coalition, an alliance of more than 140 companies from the maritime, energy, infrastructure, and finance sectors working to accelerate the decarbonization of shipping by developing and deploying zero-emission vessels (ZEVs) by 2030.
Our approach includes comprehensive initiatives to assess and manage our economic, environmental, and social impact. For instance, GAC Norway was awarded the EcoVadis Gold standard, reflecting its dedication to sustainable practices across four core themes: Environment, Ethics, Labour & Human Rights, and Sustainable Procurement. This accolade highlights our collective commitment to continuous improvement and provides customers with confidence in our sustainability efforts. As an environmental advocate, GAC Singapore leads the Green Ally Champions, an alliance of 15 companies dedicated to sustainability initiatives supporting the UN’s Climate Action and Partnership for the Goals.
GAC’s operational changes are evident worldwide. Our offices in the Middle East are embracing solar energy, with warehousing facilities in Bahrain, Dubai, and Qatar integrating solar panels and renewable electricity sources. GAC UK has transitioned to electric forklifts in all its warehouses, a move aligned with our sustainability roadmap. Similar initiatives are underway at our offices in Denmark, the Middle East, and Asia, where electric-powered equipment is becoming the norm.
Future Industry Trends: Looking ahead, what are the major trends or changes you anticipate in the shipping industry, and how is GAC preparing to meet these future demands?
The shipping industry is poised to experience several major trends. Cybersecurity remains a top concern as digitalization continues to expose vulnerabilities that require constant attention. Sustainability is another key focus, with the industry striving to reduce its carbon footprint through alternative fuels, route optimization, and efficient port operations.
Data integration is becoming increasingly important, with customers demanding seamless integration into their systems despite the challenges posed by global standards.
We anticipate significant advancements in the industry, including the increased use of Artificial Intelligence (AI) for predictive maintenance, autonomous navigation, and route optimization. The shift towards clean energy will continue, with greater adoption of alternative fuels and energy-efficient vessels.
Maritime robotics, such as underwater drones, will gain prominence, and energy-efficient technologies will be integrated to lower fuel consumption and emissions. The Internet of Things (IoT) will enhance real-time monitoring of ships and cargo, while immersive reality technologies like augmented and virtual reality will improve training, engineering, and inspection processes.
GAC is preparing to meet the demands and seize the new opportunities these trends bring, ensuring we stay at the forefront of industry advancements and continue to provide innovative solutions.
