PrimeServ Package Facilitates Customer Investment in Retrofits
MAN Diesel introduces PrimeServ Trident, an unique retrofit-financing package
MAN Diesel PrimeServ is addressing the present decline in the world economy and maritime shipping by introducing a financial product to help its customers invest in retrofit technology.
The 'Trident' package aims to support shipowners looking to cut expenses by employing particular retrofit solutions. The first retrofits are:
- Alpha Lubricator – reduces cylinder-oil feed-rates by 20-30%
- Turbocharger cut-out – improves main-engine performance during low-load operation
- Blending on board – blends additives into system oil for use as cylinder oil
MAN Diesel has developed PrimeServ Trident as a value-added solution for its customers and the concept will eventually expand to include more retrofit types.
The investment required to purchase these retrofit solutions is relatively low compared to the resultant savings, and the pay-back period is 2 years or less.
The new financing scheme is directly linked to the two-year pay-back period, such that payment is spread out over the pay-back period and balanced by the savings created by the retrofit itself. PrimeServ sees this distributed payment model as an incentive that will draw attention to its retrofit solutions.
As such, Trident offers funding through bank-to-bank financing using a letter of credit with deferred payment and standard documentation.
Otto Winkel, Senior Vice President, MAN Diesel PrimeServ, Copenhagen states: ”The PrimeServ Trident package represents a non-cash investment and is a standard bank product that we are convinced will appeal to many shipowners. We have pinpointed essential, environmentally friendly retrofits where the opportunity for reducing running expenses is great, and believe that it will appeal to many of the potential 4-5,000 shipowners globally that can benefit from this package. We look forward to adding more retrofit solutions in the future.”
Trident customer benefits
MAN Diesel is confident in Trident due to:
- no tie-up of cash and a short pay-back period
- competitive interest rates and costs
- an alternative source of funding at attractive rates in a market where investment funds are scarce
- simple and standard documentation
All queries regarding Trident may be directed to:
Peter Rytter Jensen
Head of Retrofit Projects
MAN Diesel PrimeServ, Copenhagen