Full steam ahead for shipping software company following £200k investment

The Liverpool-based startup behind software that works to cut shipping costs by accurately predicting sea levels has secured £200k from The North West Fund for Venture Capital.

Sea Level Research will use the investment to launch its core product, which uses a mix of machine learning algorithms and real-time information on sea levels and weather.

The company’s founder, Dr Simon Holgate, has spent the last two years developing software he believes will help oil refineries and the shipping industry save millions of pounds every year.

Dr Holgate, who formerly worked as a scientist at the National Oceanography Centre in Liverpool, said: “The ability to predict the surge, that is the weather on top of the tide, enables us to move vessels much more efficiently.

“These vast ships enter the river with only 60cm clearance under their keel, so having an additional 20cm of water can make all the difference as to whether a vessel can berth or not – and between a profitable and an unprofitable voyage.”

Following the deal, the former chief executive of the shipping line CSAV UK & Ireland, Mike Finn, has become the new chair of Sea Level Research.

The company’s first product, called Petro Planner, has been geared towards oil refineries, which rely on the sea levels when loading and unloading cargo. According to Sea Level Research, these companies often pay ship owners between $30k and $100k per day during delays. Globally, such costs are estimated to amount to $1.3bn each year.

Dr Holgate said his software is able to predict sea levels to within 20cm up to 36 hours in advance and raise the accuracy of readings from 75%, where they currently stand using traditional tides, to 95%.

Investment firm Enterprise Ventures manages The North West Fund for Venture Capital. The company’s investment director, Will Clark, commented: “Petrochemical companies are highly effective at minimising their trading and operational costs but the problem of shipping delays has been largely unresolved.

“The new system from Sea Level Research is far more effective than the traditional method of forecasting and is the only product that can accurately predict sea levels in the same way and for the same cost.”

He added: “In the coming years, the introduction of new sea routes, bigger vessels and the development of the Liverpool 2 super port will lead to more traffic and greater focus on operational efficiency which, coupled with the desire to reduce fuel costs, will help drive demand.”

Ian Vicary of law firm Weightmans advised Sea Level Research during the deal, while law firm Ward Hadaway’s Harriet Sutherland represented The North West Fund for Venture Capital. Elsewhere, corporate financier Rajesh Sharma, from Liverpool-based business finance and strategy firm Tilston Ventures, advised Dr Holgate’s company on the funding arrangements.

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