- Costs of transportation in shipping inflated due to inefficient tracking of containers and conditions in which they travel in. A cadre of powerful stakeholders would pay a premium and ongoing subscription fee for a device leveraging nascent machine learning and artificial intelligence (AI) technology to safely and effectively monitor their cargo real-time
- t42 (‘The company’) introduces a powerful comprehensive product and suite of tracking solutions to meet the needs of the global tracking market (potentially worth >$100bn). Opportunity to capture attractive margins with first-mover advantage post company rebranding
- t42 helps clients mitigate shipping, insurance and a host of other costs. The product and accompanying suite of solutions offered by the business offer a high return on investment for its users and patrons
- t42 listed on the Alternative Investment Market (AIM) offered by the London Stock Exchange (LSE). The company reinvented itself from its previous form (Starcom) to its present form (t42) and plans on executing shareholder-value strategies as a quasi-SPAC, with a reverse split and revaluation
- Recent contract signed with a consortium of Latin American companies servicing a regional port authority enables t42 to prove the merits of its technoy and accompanying suite of services. A niche opportunity that doubled the stock price overnight given the potential economic ramifications. Company could leverage unique public-private partnerships-like structures (PPPs) to finance the acquisition of its technology by its clients and significantly grow its customer base
A very low percentage of shipping containers ($50bn in estimated cargo theft and related losses per annum. A multitude of stakeholders in the shipping industry require a smart global tracking Internet-of-Things (IoT) solution with live data transmission and analysis capabilities that produces on-time actionable actional insights for governments, ports, tax authorities and other vested organizations and/or institutions. 80% of goods in international trade are transported by sea in containers, with >120m
trips per year. ~$100bn in logistics inefficiency costs (customs, insurance, rerouting, energy consumption). End-to-end live-tracked solutions at the forefront of commercializing viable approaches to this logistics problem.
Global tracking requires:
- Always-on, reliable, tamper-proof technology
- Integration capabilities with diverse, multi-agency IT systems
- High level of cybersecurity
- Global logistics support and customer service
At a glance, current market offerings offer an incomplete mix of solutions for the needs of the global tracking segment. The present alternative market competitors, fall short on delivering a comprehensive suite of solutions in the context of machine learning and smart IoT technology. Proper execution could enable t42 to capture a sizable swathe of a market valued at in the billions at relatively attractive margins. Achieving economies of scale with mass adoption and subsequent ramped production could create an effective and recurring source of revenues.
t42 offers unique end-to-end solutions for global container tracking and the digital transformation of shipments’ data fabric management. The company charges a one-time $250 fee per container to outfit shipping vessels with hardware at a gross margin of ~30 cents per dollar of sales. Subsequent to installation, t42 charges $2 per container per month for ongoing artificial intelligence (AI)-enabled Software-as-a-Service (SaaS) monitoring. The company expects, in the next two years, to charge only for SaaS and provide hardware on a subsidized, no-cost basis. This business model evolution will facilitate the assembly and growth of a global tracking and monitoring infrastructure based on t42 hardware.
The company recently transitioned from its former name of Starcom and reinvented itself as t42 as it pursues opportunities in the global shipping industry.
t42 shares rose substantially on December 17, 2021 after the company announced it signed an agreement with a Latin America-based consortium for the sale and distribution of its shipping container tracking devices and SaaS services. The agreement provides a framework of orders for t42’s Tetis and Lokies products through to the end of 2024, and could add >$40m of additional revenue if the consortium orders the maximum number of products under the terms of the deal. The agreement stipulates orders must be placed by 2024 and provides distribution exclusivity until then to the company in relation to the consortium’s tracking needs. The group of companies contracting t42 form a consortium that advises and provides data information services and monitoring to port authorities for a major regional Latin American port.
Company Products and Solutions
t42 offers a multi-sensor IoT tracking device named after the company (the ‘t42 product’) with a wide range of detection-capabilities, cloud-based analytics and alerts. ~1 million units of this proven t42 product technology has sold-to-date. The company helps its clients mitigate high insurance costs and increased premiums and reduce their costs to drive stronger bottom-line results in a market with already tight margins by way of the t42 product and its technological features.
The t42 product is a state-of-the-art, tamper-proof, ragged, multi-sensor container lock and global encrypted data transmitter. It is able to analyze real-time, big-data to create dynamic reports that help manage container fleets.
The t42 product monitors and records telematics live, such as:
The system offers real-time alerts and notifications, helping to detect:
- Course deviation
- Temperature deviation
- Humidity deviation
The t42 product transmits real-time to the company’s cloud and data recovery centers (serving as a virtual black-box). With 24/7/365 AI-based monitoring, machine learning algorithms continuously optimize shipments’ routing with the purpose of reducing a bevy of costs and ameliorating the impact of environmental benefits. The company technology and accompanying solutions serve target end-users and stakeholders such as:
- Cargo owners
- Shipping companies
- Freight forwarders
- Insurance companies and underwriters
- Federal agencies
Starcom, t42’s legacy business, covered 55 countries, worked with >100 distributors and collaborated with >50 logistics & support partners.
t42’s stock price doubled in reaction to the news of the agreement signed with the Latin American consortium from 9.50pence on Thursday, December 16 2021 to ~19.30pence on Friday December 17 2021. The deal opens up niche regional opportunities for t42 to validate its technology and build a significant recurring revenue base in a critical shipping continent. The magnitude of work that comes with inspecting and monitoring cargo overwhelms authorities at ports worldwide, not to mention Latin America, a major source of both licit and illicit goods. Governmental and nongovernmental organizations require innovative solutions that reduce the need for manpower, as labor often inhibits supervision either through the lack of resources and the temptations that come with working at critical shipping points in contraband-source regions.
The consortium that contracted
t42 services a regional port authority and must subsequently work with providers that deliver the greatest return on investment given a limited pool of deployable resources; this implies procuring low-cost solutions that leverage cutting-edge technology with the greatest potential to deliver long-term savings. t42’s suite of products and real-time SaaS capabilities could enable authorities to secure private financing for security/monitoring budgets as they presently struggle to effectively police a burgeoning contraband trade and justify already limited budgets. A fruitful partnership between the consortium and the company could open up further fronts to work with other regional port authorities and the organizations they service. To illustrate: through the use of public-private partnerships (PPPs), t42 could potentially finance significant upfront investments of tracking technology and secure long-term security-monitoring capabilities akin to a multinational infrastructure conglomerate financing the construction of major infrastructure projects via the use of long-term concessions.
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