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ANNUAL REPORT 2009-2010 CESA ANNUAL REPORT 2009-2010 1 CESA 2009 - 2010 The challenging times that CESA has addressed already in its previous Annual Report have continued also over the past 12 months. The global order volume over the past 6 quarters has reached only 22 million cgt compared to more than 100 million cgt for the 6 previous quarters. With such a decline, the world shipbuilding industry is certainly among the sectors worst affected by the inancial and economic crisis. There are clear signs that the recovery has started. Growing cargo vo- lumes, improved earnings for shipowners and also slowly increasing new order volumes are much welcome and encouraging news. However, the situation of most shipyards in the world remains dificult for some time as orderbooks still continue to deplete. Also in Europe, despite a much larger share of production for generally sound market segments with healthy busi- ness prospects, a growing number of yards are facing production disruptions due to lack of orders. While keeping in mind that the crisis is deeply affecting the value chain in shipbuilding all around the world, there are several circumstances that cause speciic concerns about the situation in Europe in particular compared with Asia. Factors such as the structural characteristics of a signiicantly smaller average size of European producers and the absence of strategic government interven- tions make the European industry landscape more vulnerable. In view of declining market shares in various maritime sectors, Europe must collectively pay due attention to safeguard its maritime competences and capabilities. To its people and perhaps even more to the rest of the world, Europe gives the impression of being in a stage of exhaustion. Finally, after ten years of struggle, Europe completed major steps on its governance with the ratiication of the Lisbon Treaty. However, already a few months later, European leaders returned empty handed from the Copenhagen Climate Summit in December 2009. They had to realise their limits in inluencing global decisions on the most important subjects, after being sidelined by a coalition of China, India and Brasil, which merely consulted the USA in the decisive round. The acute debt crisis, on top of all, shows how much Europe has exposed its weaknesses. The industry is consolidating, the market sentiment towards new projects is returning and policy makers have understood that it is time to act. We must turn weaknesses into strengths. The debt crisis has led to a signiicant devaluation of the Euro – and a major boost of competitiveness of the export oriented shipbuilding and shiprepair industry. The smaller company sizes of European enter- prises give them much more lexibility to adapt to changing markets with no need to ill large facili- ties with long series of identical designs. The strong rise in fuel costs and more stringent technical regulations are giving more opportunities to innovative solutions than ever before. CESA is con- vinced that the European industry will bullishly grab these opportunities. What will be important is to learn the lessons from the past and safeguard the new market opportunities by consequent protection of intellectual property and decisive counteraction against trade aggressions. For a successful future of the shipbuilding industry, policy makers have to assure a level playing ield in Europe as well as in the world and not allow subsidies, which will lead to a disturbed market. This might have the effect that excellent and inancially strong companies will have dificulties to survive. The continuous innovation by our members, stimulated by European and national innovation pro- grammes, will keep us in the position of front runners in the market niches in which we are leading. Brussels, June 2010 Kommer Damen CESA Chairman Foreword Foreword 2 CESA 2009 - 2010 C ESA represents 16 National Associations from the EU, Norway and Croatia covering more than 300 shipyards producing, converting and maintaining merchant and naval ships and other hardware for maritime applications. The shipbuilding and ship repair industry generates approx. € 30 billion turnover each year and pr ovides jobs for more than 500,000 Europeans. Ship yards invest approximately 10% of turnover in civil production in Research Develop- ment and Inno vation every year. Eur opean yards are typically relatively small in size. The world's largest shipyard Hyundai Hea vy Industries has a higher tonnage output than Europe's 20 largest yards combined. Ship yards are a cornerstone in Europe's maritime competence: they have the ability to de velop and construct the most complex and advanced hardware to harvest the oceans of oppor tunities. CESA provides the Secretariat of the Waterborne Technology Platform, the core industry f orum to jointly develop and implement the Strategic Research Agenda of the sector. As Non Governmental Organisation with Consultative Status at the International Maritime Organisation , CESA is the only body representing the shipbuilding and shiprepair industry, pr oviding important technical expertise to this key rule-making institution. CESA regularly takes formal functions at the international trade organisations OECD, U NCTAD, WTO and other institutions and leads industry delegations in bilateral trade m issions. 3 CESA 2009 - 2010 1. Market development 4 2. LeaderSHIP 2015 11 3. International r elations 13 4. Resear ch, development and innovation 16 5. Saf ety and environment 19 6. Social Dialogue 23 7. Ship maintenance , repair and conversion sector 26 8. Na val sector 30 9. Intellectual pr operty rights 31 10. Maritime policy 32 11. Ne w markets 34 12. Repor ts of the National Associations 37 13. CESA society 68 Annex 1: Statistics 2009 70 Annex 2: CESA Member Associations 76 Annex 3: CESA organisation 78 Annex 4: Glossary 82 Annex 5: Picture references 84 Index Index 4 CESA 2009 - 2010 Introduction The strategic nature of the shipbuilding industry encou- raged many countries to de- velop domestic capabilities to build ships without necessarily taking into consideration the developments in the world market. The most prominent example is South Korea, and more recently, the Republic of China – in 2009 it accounted for 28% of the world production (compared to Korea 32% and Japan 21%). In an effort to maintain as much capacity as possible, sectoral programmes are implemented by several governments around the globe to maintain the national shipbuilding industry. Many market observers strongly criticise these moves as obstacles to the necessary market correction, which will prolong the current imbalance of supply and demand. European yards have been more careful in their business development and have largely refrained from massive capacity expansions. The pursuit of numerous opportunities in specialised markets, which could be exploited through innovative solutions have played a focal role for many years. With this approach, European yards were able to double their turnover since 2005, while keeping the output in tonnage-terms stable. Shipping's credo as lifeblood of globalisation has been all along to offer transport of goods around the globe at the lowest possible cost. For shipbuilding, this means that the price is the most impor- tant factor for owners' purchasing decisions, with little impact from issues such as branding, dealer and service network or transportation costs. The current crisis gives impulses for a radical think to adopt new designs to reduce the operational costs and lower emissions. Leading shipping companies recognise that low emission operations save costs, open quality sensitive markets and will be the key driver to proitability in the future. The in- novations in the shipbuilding sector have the potential to greatly reduce the operating costs as the sector has already developed and demonstrated signiicant advances in green technologies. Many European companies can build on years of experience in their speciic ield of expertise that gives them a substantial technology and competitiveness lead in proposing solutions that contribute to the low-carbon economy. 1. Market development 1 Market development The Green Revolution in the maritime industry calls for new business models RoW 11990 22000 22009 Massive Capacities Built Up (Production in CGT) Source: LR- Fairplay data 5 CESA 2009 - 2010 1 Market development World market The crisis in the maritime sector has continued in 2009, although the irst positive signs are re- corded. After the irst annual decline of seaborne trade in more than two decades, cargo volumes have started to grow again. Also the unprecedented levels of overcapacity in the global cargo ship leets seem to improve gradually with numbers of laid-up ships reducing. However, the tremendous global orderbook and record production volumes keep up the supply on the main shipping markets. Fleet vs. Orderbook by Shiptype 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 Bulk Carriers Tankers Containerships Other Dry Cargoes Gastankers Ferries / Passenger Ships Fishing Offshore Activities Other Non Cargo Ships GT Fleet Jan 2009 Completions 2009 Orderbook End of 2009 Source: LR-Fairplay In 2009, the worldwide ship production increased to a record high - 44.4 million CGT. Asian coun- tries reported record deliveries - a relection of past years' investments in the industry. 6 CESA 2009 - 2010 1 Market development World Commercial Shipbuilding Activity Source: Lloyd's Register - Fairplay 0 25,000 50,000 75,000 100,000 125,000 150,000 175,000 200,000 225,000 1.000 CGT orderbook new orders completion orderbook 37513 45,881 48,271 48,946 70,806 92,800 107,200 138,000 183,740 194,166 156,200 146,770 new orders 18,926 29,431 23,341 20,471 41,705 45,128 39,588 57,315 85,277 42,953 16,554 3,949 completion 18,241,20,346 20,187 21,396 22,824 25,461 29,353 34,123 34,640 41,873 44,401 13,361 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Q1 2010 , The low ordering level in 2009 combined with higher deliveries brought the world orderbook down by 21%. Despite a large total orderbook, many yards' workloads are shrinking at a fast rate. New orders in 2009 totalled 16.5 million CGT which equals roughly 1/3 of the completions. Ordering has slightly improved during the irst quarter of 2010. However, a much higher activity is needed to balance the rate of deliveries. The global merchant leet today is relatively young; the average age of the containership leet is 10 years . The need for replacement due to age in this speciic segment will, therefore, contribute less to the newbuilding requirement in the coming years. Source: LR-Fairplay World Shipbuilding Demand and Supply (Completions 2010 and 2011 based on planned deliveries New orders 2010 - full year outlook based on 1Q 2010) -20,000 0 20,000 40,000 60,000 80,000 100,000 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 ´000 CGT -2.00% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% Completions New orders World GDP 7 CESA 2009 - 2010 Domestic demand, particularly for yards in Japan, has compensated to some extent the collapse in global demand. State interventions in favour of the shipbuilding industry, particularly in China and Korea, have softened the impact for many of the yards – schemes like "sale and lease back" and other purposes built for the shipowners to pick up contracts abandoned by foreign owners, mea- sures taken to ensure domestically lagged vessels for domestic cargo and purchase of distressed assets, etc. During 2009, the earnings of the VLCC and Aframax tankers went down to 2003 levels while handysize tankers slid to pre-1999 levels. After falling to early 2000 level, the charter rates for the bulk carriers improved towards the end of 2009 and the earnings doubled for all size segments as compared to the end of 2008. The container rates remained depressed - 20-25% below the opera- ting costs despite a slight increase in seaborne trade. A number of shipowners attempted to reduce the negative effects of the oversupply and withdrew tonnage from the market by scrapping and or extra slow steaming. On average 10% of the containerships were idle during 2009. Because of the already existing overcapacity and a massive orderbook, the market needs time be- fore the over-ordering in the boom years is digested and the demand for new ships returns to "nor- mal" levels. The prolonged low demand is putting newbuilding prices under pressure. In 2009, the Clarkson's newbuilding price index fell 22% on y-o-y basis with prices per segment falling between 30-40% for containerships, capesize bulkers and tankers. The recent increase in the newbuilding price index, which corresponds to increasing costs for the yards, in particular steel, indicates that most yards are reluctant to enter price wars. Source: Clarksons Monthly Newbuilding Price Index in main shipbuilding nations' currencies Jan 2000=100 80 100 120 140 160 180 200 Jan-00 May-00 Sep-00 Jan-01 May-01 Sep-01 Jan-02 May-02 Sep-02 Jan-03 May-03 Sep-03 Jan-04 May-04 Sep-04 Jan-05 May-05 Sep-05 Jan-06 May-06 Sep-06 Jan-07 May-07 Sep-07 Jan-08 May-08 Sep-08 Jan-09 May-09 Sep-09 Jan-10 May-10 in $ in in Won in Yen in Yuan Low ship values are damaging the entire market - it hurts the yards, the owners and the ship inan- cing banks – the low values inluence balance sheets and make liquidity or credits much more dif- icult to acquire. Experts have estimated a inancing gap of $ 200 billion for irmly placed orders. In the context of these market developments, the global shipbuilding industry is in urgent need for a global policy to safeguard economically sustainable pricing policies. 1 Market development 8 CESA 2009 - 2010 1 Market development European market Since the collapse of demand in the standard cargo ships segments, the European yards' market shares in the tankers, container ships and bulk carriers segments contracted further as approxi- mately 1.5 Mln CGT, roughly 17% from the current orderbook of CESA members were cancelled since the second half of 2008. It is becoming more visible that the focus on niche markets placed the European yards as leaders in building complex hardware for a wide range of specialised maritime activities such as dredging, ishing, cruising and leisure, supply and support for harvesting offshore energies, research, environmental preservation, pollution control, etc. Despite this specialisation, the European yards continue to lose market shares in shipbuilding production. The turmoil in the inancial industry and the slowing industrial activities reduced the demand for purpose built ships. As the economic conditions were worsening, many projects were delayed or even put on hold. Consequently, the owners placed much less orders for specialised vessels. The impact of the crisis is also affected by changing policies in demand-generating countries. Such policies are developed in countries like Russia and Brazil for dredging and offshore oil and gas extraction - the contracting companies are offered inancing provided that the ships are built at domestic facilities. However, once the economies will capture wind in their sails, the demand will pick up again. Source: LR- Fairplay and IMF CESA Demand and Supply -1,000 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 1.000 CGT -1.00% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% Completions New orders Completions 4,637 4,794 4,870 4,816 4,478 4,194 3,851 4,642 4,870 4,820 3,895 4,324 New orders 4,213 7,591 4,533 2,262 3,951 6,798 7,226 5,379 5,425 2,114 561 1,980 World GDP 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 (Completions and Deliveries 2010 based on 1Q 2010) World GDP 3.60% 4.80% 2.60% 3.10% 4.10% 5.30% 4.90% 5.40% 4.50% 3.40% -0.80% 3.90% 4.30% One of the most important market segments for the European yards showed encouraging signs even during the economic slump. In 2009, the number of European passengers travelling by sea grew with 10% as ferries become an increasingly popular option of transport. Healthy demand and improving infrastructure help yards to produce ships that are more lexible, offer new on board experiences and provide regular access to many previously inaccessible destinations. However, as a result of the sharp decline in business for standard shiptypes and the massive global overcapacity, the European niche markets are attacked with prices below cost from Asian competitors. Market distortions and global structural imbalances have accentuated during the crisis, severely affecting the industry. 9 CESA 2009 - 2010 1 Market development The high value and com- plexity of ships com- pleted in 2009 helped reduce the impact in terms of turnover - 5% as compared with 20% decrease in terms of tonnage. The full impact of the current condi- tions on the European yards will be delayed due to long production lead- times. Since 2008, the new orders intake in our yards had reduced dramatically and, consequently, the orderbook fell 30% as compared to last year. In terms of employment, at the end of 2009, on average about 20% of the jobs at shipyards were affected already. Without new contracts before summer 2010, an employment crisis with half the jobs at stake could be unavoidable. Numerous European shipyards are increasingly resorting to short-time work, announcing or executing lay-offs. Some yards have already declared bankruptcy triggering a chain reaction to their suppliers. Turnover Commercial Newbuilding Market Source: CESA 9,041 12,968 15,213 16,256 15,669 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 2005 2006 2007 2008 2009 Mln Euro Smaller average size of European producers and the absence of strategic government interven- tions make the European industry landscape more vulnerable 10 CESA 2009 - 2010 Value of Orderbook Commercial Newbuilding Market Mln Euro Source: CESA 37,583 49,945 58,554 52,616 36,558 0 10,000 20,000 30,000 40,000 50,000 60,000 2005 2006 2007 2008 2009 CESA has actively advocated the adoption of appropriate conditions aimed at generating orders for markets, which are in need for new, safe and clean ships. A targeted leet renewal programme could boost regional investments and industrial activity, improve the infrastructure, regional cohesion, reduce signiicantly dangerous emissions from ships and thus contribute to a healthier environment. CESA Working Group on Market Monitoring Tasked to monitor the general economic and policy developments related to the global ship- building market, the CESA Working Group on Market Monitoring also serves as an interface on these issues to the European institutions by offering quarterly brieing and discussion sessions. For several years, these meetings are regularly attended by oficials from six Commission General Directorates. During these meetings, the group presents the latest market picture on the basis of statistical material and factual information and exchanges information relating to the world shipbuilding market developments and trends on supply & demand, cost factors, global production capacity. 1 Market development 11 CESA 2009 - 2010 The global economic and inancial crisis created unprecedented policy challenges. The responses by govern- ments around the world entailed market interventions of a magnitude, pr eviously not thought possible. In Europe, public interventions were mainly limited to the inancing sector with only limited stimulus initiatives for the so-called "real economy". Particularly in the framework of the G20, efforts were undertaken to avoid market distortions by uncoordinated government action, albeit with apparently limited impact. Even within the European Union, coordinated crisis response at sector level has met with dificulties. CESA proposed to build up on the success of the LeaderSHIP 2015 initiative, which had pioneered sectoral industry policy for the EU to establish a credible and effective European crisis response. This ambitious goal met with a challenging timetable. The political season of the EU institutions in 2009, starting a new legislative period in the European Parliament as well as seeing the change of ofice of the European Commission at the beginning of 2010, hampered the political decision making. However, the market situation required swift action leaving no time for policy delays. Therefore, under the regime of the out-going Commission Vice-President Günter Verheugen, a High Level LeaderSHIP 2015 meeting was held in Bremerhaven in September 2009. The participants conirmed that the long-term orientations of the policy framework established under the LeaderSHIP 2015 process remain valid with their clear focus on a highly research based, innovative industry produ- cing safe and environmentally friendly ships that can successfully compete globally if a level playing ield and suficient IPR protection is ensured. However, they also agreed that in light of the current crisis, additional measures that could alleviate the short-term pressure should be taken in order to ensure a critical mass of this strategic industry sector. The following action areas were identiied: • Global le vel playing ield • T emporary demand stimulus measures for safer and less polluting ships • Impr oved instruments to safeguard access to inance • Str engthened instruments to foster research and innovation • Pr oactive measures to maintain quality jobs and high levels of employment 2 LeaderSHIP 2015 2. LeaderSHIP 2015 Can LeaderSHIP turn Europe towards a credible and effective crisis response? 12 CESA 2009 - 2010 While substantial detailed work was carried out by experts, the political decision and implemen- tation process have built, unfor- tunately, little momentum in the following months, leaving the in- dustry in an increasingly vulnerable situation. Several initiatives aimed at tackling this unsatisfactory situ- ation. A "Joint Declaration of Eu- ropean Shipbuilding Regions" has received wide support. The elected heads of 36 Regions throughout Europe representing more than 60 million people have signed the declara- tion, which was handed over to the Presidents of the European Parliament and the Committee of the Regions as well as to high level represen- tatives of the Council and the Commission on 8 April 2010. With Spain holding the rota- ting Presidency of the Council, a LeaderSHIP High Level Confe- rence was held on 21 April 2010 in Bilbao hosted by the President of the Basque Country. Follo- wing the clear conclusions of this event, the situation in the ship- building sector was added on the agenda of the spring meeting of the European Council of Minis- ters on Competitiveness. An important contribution to the Bilbao LeaderSHIP Conference was prepared by the Economic and Social Committee, which adopted a report with conclusions and recommendations that were to a large extent relected in the inal statement from Bilbao. The industry is attaching particular expectations to the Shipbuilding Conference at the European Parliament on 24 June 2010. Hosted by the Members of Parliament Andrea Cozzolino (Italy) and Ville Itälä (Finland) and supported by the major political parties, the event provides a forum to form pressure from the Parliament, which under the Lisbon Treaty has signiicantly strengthened its power. 2 LeaderSHIP 2015 Handover to EP President Jerzy Buzek Bilbao European LeaderSHIP Conference 13 CESA 2009 - 2010 Organisation for Economic Co-operation and Development (OECD) At its April 2010 meeting, participants of the OECD's Council Working Party on Shipbuilding (WP6) have agreed in principle to resume negotiations on a Shipbuilding Agreement that were paused in September 2005. The Secretariat of the WP6 has prepared a revised Mandate for Negotiations based on the 2002 mandate with slight modiications to relect the passage of time. According to the draft Mandate, the resumed negotiations would cover all market distorting factors, in particular government support measures, pricing and other practices which distort normal competitive condi- tions in the world shipbuilding industry. If the essential elements for re-launching could be agreed by WP6 members by June 2010, it is ex- pected that by the end of 2010 the Special Negotiating Group would be re-established and that the negotiations should be completed by the end of 2012. CESA welcomes the resumption of the negotiation process. However, in view of the severe crisis situation, careful consideration must be given to the timing of the initiative. All parties should be prepared to conclude a comprehensive and effective agreement within a reasonable period of time. During the April WP6 meeting, WP6 members also agreed that the work on the Inventory of Sub- sidies and other Support Measures should continue, as this enhanced transparency would be very important for the effective conduct of the negotiations. Maintaining and updating of the Sector Understanding on Export Credits for Ships would also remain as a WP6 responsibility. In addition, due to its important position in the global shipbuilding market as well as its active con- tribution to WP6 activities including the Shipbuilding Agreement negotiations between 2002 and 2005, the WP6 has proposed inviting China as a full participant in the WP6. Bilateral dialogues and upcoming FTAs In October 2009, the EU-South Korea free trade agreement (FTA) has been concluded and is awaiting ratiications from the European Parliament and the Council. CESA expects that this new level of trade relations would be relected for the shipbuilding sector. In the context of the existing 3 International relations 3. International relations OECD Headquarters – Château de la Muette Effective Trade Rules are needed to stabilise Global Markets 14 CESA 2009 - 2010 bilateral agreement on shipbuilding, the so-called Agreed Minutes, the South Korean government agreed that the level of ship prices should relect all of the factors of costs according to the deinition of "normal value" under the WTO Antidumping Agreement. On the basis of the Agreed Minutes, the European industry has initiated a cost investigation in a case of injurious pricing by a Korean shipyard and has requested the European Commission to launch consultation. CESA be- lieves that only if South Korea demonstrates that it is prepared to have a constructive dialogue on this matter and that it is willing to prevent injurious pricing practice, it could be assumed that South Korea is truly committed to the FTA as well as to the renewed efforts at the OECD. Launched in May 2009, three rounds of EU-Canada FTA negotiations have already taken place. Both negotiating partners are aiming at a very advanced agreement, exceeding in its level of ambition any trade and economic agreement negotiated either by the EU or by Canada to date. The negotiations are expected to be concluded within two to two and a half years. Sofar, the negotiations have not yet touched upon shipbuilding. Nevertheless, it is likely that the high import tariffs (25%) would be abolished for certain ship types as the Canadian shipyards do not have the ambition to build certain shiptypes. The Department of Finance of Canada has initiated in October 2009 a "duty remission to be applied for all tankers, bulkers, unloaders and cargo vessels greater than 129 meters in length that are imported into Canada on or after January 1, 2010". The EU-ASEAN FTA negotiations were launched in April 2007. The negotiating process is based on a region-to-region approach, while recognising and taking into account the different levels of development and capacity of individual ASEAN members. The EU-India FTA negotiations were launched in June 2007 and, so far, ive negotiating rounds have been held. On 2 March 2010, the EU and Vietnam have agreed to start the bilateral FTA negotiations. Furthermore, the EU and Russia are currently negotiating a new agreement replacing the 10-year old Partnership and Cooperation Agreement. This new legally binding agreement should provide a comprehensive framework for bilateral trade and investment relations. In March 2007, the EU and Ukraine launched bilateral negotiations of a new Association Agreement that will replace the present Partnership and Cooperation Agreement that dates from 1998. The FTA will be embedded in the new Association Agreement as an integral element alongside others, such as political, social, and sectoral co-operation. It will cover all trade-related areas and tackle non-tariff obstacles through deep regulatory approximation with the trade-related European Com- munity laws and policies. JECKU Europe hosted the 18th JECKU top executive meeting on 29 October 2009 in Berlin, Germany. Almost one hundred senior executives, the largest participation ever, from the leading shipbuilding companies in Japan, Europe, China, Korea and the United States attended the meeting. The meeting covered extensive discussions on the global challenges that all shipbuilders are facing, i.e. market crisis, signiicant imbalance of supply and demand, higher requirements for environment friendly and energy saving ships. Many participants expressed their opinion that careful and disciplined adjustment of shipbuilding capacity based on market principles would be necessary and unavoidable. Governmental interven- tions should be restricted so that the supply-demand problem would not increase and be pro- longed. Furthermore, views on the possible re-launching of the OECD Shipbuilding Agreement were exchanged. 3 International relations 15 CESA 2009 - 2010 In addition, the meeting noted that positive effects of collaboration among shipbuilding nations have been witnessed at the technical level. For instance, international coordination at the IMO with regard to balance design transparency and intellectual property protection has proven to be successful sofar. The participants endorsed the proposal to continue the cooperation through the JECKU meeting process and to hold the next meeting in China in October 2010. Additional information on the international relations in the context of global regulatory develop- ments can be found in chapter ive. Russia - EU Shipbuilding Round Table at Neva Exhibition The tradition of European shipyards and maritime equipment companies to participate at NEVA Shipbuilding exhibitions in Saint Petersburg in September 2009 progressed further with the irst EU-Russia shipbuilding Round Table which CESA organised together with the Krylov Shipbuilding Research Institute. More than 60 industry experts exchanged views on the state of play of the sector both regionally and globally, challenges and prospects arising from the current economic conditions as well as innovative technologies to increase eficiency to protect the environment. The Round Table provided an important platform to explore how to facilitate wider technical and com- mercial cooperation with regular exchanges on shipbuilding market and technology developments and related areas. In the context of the Russian government's initiatives to develop its shipping and shipbuilding in- dustries through considerable investments both in leets and building capacity, the Round Table enabled the participants to identify possible synergies such as support to Russian yards to better beneit of specialised European producers facilitating joint participation in the Russian leet renewal programme. 3 International relations 16 CESA 2009 - 2010 4 Research, development & innovation Summary The year 2009 has been the year of the crisis response. The ield of Research, De- velopment and Innovation has contributed with the CleanSHIP initiative that can be regarded as the technical/ scientiic pillar of the Lea- derSHIP 2015 approach con- cluded in Bremerhaven. Based on the recommenda- tions of COREDES (the R&D Working Group of CESA), the Waterborne Technology Platform and the European Commission agreed to focus on Green Retroitting with two topics having been inserted in the draft Work Programme 2011 for the 4 th Call of Sustainable Surface Transport (SST), chapter within the 7 th Framework Programme (FP7). 2009 has also been the year of the "new markets" such as the offshore wind and ocean energies for which an intense and extraordinary effort in terms of basic and industrial research is required. Consequently, related topics are also covered by the 4 th Call under the chapter of Oceans of Tomorrow in which a large scale project is foreseen for the theme "Multi-use of Offshore Plat- forms". It is evident that the currently available volume of Community funding is a drop in the ocean. Nevertheless, this action demonstrates the attention given to these new exciting challenges. Vorticiy and Axial Velocity ields on a 4 blades propeller - Particle Image Velocimetry Measurement Within the 3 rd Call (Work Programme 2010), COREDES has been involved in six project proposals covering SST, OCEANS of TOMORROW and Horizontal and Cross Cutting Activities. Going through the project proposals submitted (see provisional table at the end of this section), it can be noted that the submitted projects are around 20 (oficial data are not yet available) for a re- quested budget under SST of not less than 30 M€ against an available budget of 22 M€. The project proposals evaluation is ongoing and inal results are expected for early summer. 4. Research, development and innovation 17 CESA 2009 - 2010 strategic research agenda implementation Waterborne transport & operations Key for europe's development and Future route map 2007 4 Research, development & innovation WATERBORNE TP The major effort during 2009 has been the work carried out to deliver the research topics for the 4 th Call to the European Commission DG RTD. CESA, as the Secretariat of the platform, has been the focal point for the input collection, har- monisation, negotiation and delivery to the Commission. The process started in autumn 2009 and the irst document was issued early December 2009. A more reined version was then released in January 2010. A way forward to further improve the procedure has been developed in close consultation with the European Commission. Continuous contacts with other European Technology Platforms are in place to identify areas of common interests and to develop synergies on research topics. A similar analysis is ongoing inside the platform itself to identify new areas and themes to be included in the platform horizon. As of January 2010, the Chairman of the Support Group is Mr. Oyvind Andrensen from DNV who succeeded Mr. Vaughan Pomeroy from Lloyds' Register. The WATERBORNE TP General Assembly was held at the occasion of the third European Maritime Day in Gijón on 20 May 2010. A number of initiatives have been endorsed like the proposal to welcome the Ocean Energy Association as new member of the platform. EU R&D Framework Projects CESA is coordinator of three newly launched Coordination and Support Actions and participant in several other projects (some of them still running from FP6). The inal negotiations have been car- ried out during 2009 and all the new projects have meanwhile started. CASMARE This Coordination Action is intended as the continuation of ACMARE and is continuing in feeding the WATERBORNE TP and providing support to this action. A number of initiatives have been carried out during the irst year of the project including a successful workshop in Delft alongside the Delft Research Days in September 2009. The workshop was a brainstorming opportunity for the update of the strategic documents of the Technology Platform. A High Level Event took place in Le Havre with an extraordinary number of valuable presentations and contributions and a strong participa- tion of the European Ports. The revision of the Waterborne Strategic Research Agenda which will contain the re-prioritisation of the various topics is one of the irst deliverables. EMAR 2 RES The scope of this Coordination Action, under the perspective of Transport, is to establish a liaison among the Marine and the Maritime Community and to identify possible common strategic objec- tives. The project's governing bodies are all in place and are having the irsts meetings while this report is being written. The irst important appointment will be the two workshops foreseen for the end of June that will have as principal themes: •WS1: Biological/chemical impacts of the Maritime transport on the marine environment •WS2: Physical impacts of the Maritime transport on the marine environment 18 CESA 2009 - 2010 •WS3: Monitoring marine environment and the beneits of metocean data to maritime trans- port and climate change •WS4: Impacts of climate change on maritime transport VISIONS OLYMPICS The Support Action Visions Olympics (continuation of the Network of Excellence VISIONS) will aim at capturing from the unbiased minds of European universities students' revolutionary concepts for maritime transport and ocean exploitation. The irst loop is ongoing; the deadline for the ideas submissions closed at the end of May 2010 and the evaluation process has started. In the meantime, the fourth loop of the Network of Excellence VISIONS, which is not funded under the project, has been completed and three project ideas have been awarded and sponsored by CESA. In the following table, a list of the submitted projects: Collaborative & Integrated Projects TARGETS Targeted Advanced Research for Global Eficiency of Transportation Shipping CONNECT Continental Shipping for the Networking of European Transport TEFLES TEchnologies and Scenarios For Low Emissions Shipping HELIOS High-pressure Electronically Controlled Gas Injection for Marine Two-Stroke Diesel Engines ULYSSES Ultra Slow Ships ThroughLife Development and proof of new approaches for through-life asset manage- ment based on next generation of materials and production technology EXTREAM Advanced after treatment solution for the mitigation from the emission from ships VECTORS Vectors of changes in Oceans and Seas Marine Life, Impact on Economic Sectors INOMANS²HIP INOvative energy MANagement System for cargo SHIP ECO-REFITEC Eco-innovative reitting technologies and processes for shipbuilding indus- try promoted by European Repair Shipyards Coordination and Support Actions ENTRANCE Enhancing Technology Transfer to Small and Medium Companies in the European Shipbuilding Sector EuroVIP Virtual Integrated Partnering (VIP) for SME service, technology and information providers in the European maritime sector Green Transport Encourage the Transport Weaker Players to overcome the Green Barriers MARTRAIN Maritime Workshops for Training and Dissemination EUROTRANS 2050 Challenges for a true, balanced and optimised European Transport system of the future MARK-UP Analysis of Market Uptake of transport research results in Europe 4 Research, development & innovation 19 CESA 2009 - 2010 International Maritime Organisation (IMO) As the only non-governmental representative in IMO of the shipbuilding industry, CESA is actively involved in all IMO issues where shipbuilders and shiprepairers can contribute. CESA participates at the sessions of the Maritime Safety Committee (MSC) and Marine Environment Protection Committee (MEPC) as well as at the meetings of their Sub-Committees on Bulk Liquids and Gases (BLG) and on Ship Design and Equipment (DE). The protection of intellectual pro- perty rights is essential to maintain sustainable knowledge-based ship- building in Europe and elsewhere. A new draft SOLAS instrument "Ship Construction File" (SCF) which aims at safeguarding ship safe- ty provides more transparency of the ship design. While this requires a broad disclosure of sensitive de- sign data, a careful balance with IP protection is required. In close co- operation within a cross industry working group comprising asso- ciations of shipbuilders, shipowners and classiication societies, CESA has developed the SCF concept, so that it incorporates IPR protection provisions into an IMO Con- vention for the irst time. In order to better balance design transparency and know-how protection, the MSC agreed, in May 2010, to a concept of two storage locations. Only safety related information necessary for ship operation would be stored on board whereas detailed design documentation would be stored in an access protected on shore archive, where the probability of product piracy can be effectively reduced. In addition, CESA continuously promotes the replacement of prescriptive regulations by functional requirements within both mandatory and recommendatory IMO instruments. In close collabora- tion with European lag states, shipbuilders were successful in basing more and more new regula- tory initiatives on a goal or risk oriented approach, which facilitates technical lexibility necessary for the development of innovative ship designs and making techno-logy transfer to competitors more dificult. These principles should also account for the development of Code for "Ships operating in polar waters" and the "Interna- tional Code of Safety for Gas- fuelled Ships" (IGF Code). The development of these instru- ments as mandatory regulations is actively supported by CESA and will signiicantly affect the future market opportunities for the European producers of complex high tech ships. 5 Safety and environment 5. Safety and environment Safety Related IP Sensitive Information Yard Property Information Highly IP Sensitive Information SCF Supplement ashore SCF onboard SCF ashore Archive Information 20 CESA 2009 - 2010 The goal of the Polar Code is to enable the sustainable economic use of Polar Regions taking into account the highest safety and environmental standards. The Polar Code will cover the full range of design, construction, equipment, operational, training, search and rescue and environmental protec- tion matters relevant to ships operating in the remote and ice covered waters with limited SAR capacities. Gas-fuelled ships are a key technology for the reduction of greenhouse gases in order to contribute to the ight against climate change. IMO has developed rules for certain gasfuelled ships and C ESA is participating in the formulation of a comprehensive code for gasfuelled ships. A rapidly increasing market for ships using LNG for propulsion or utilising fuel cells as auxiliary power units could only be achieved by means of broad safety provisions covering all relevant energy converters and fuel types. To this end, CESA successfully proposed to expand the scope of the Code to fuel cells as well as LPG, Hydrogen and low lash-point luids such as Ethanol and Methanol. The efforts to regulate the emission of greenhouse gases from international shipping have not been very conclusive sofar. The UN Climate Change Con- ference 2009 (COP15) in Copenhagen did not agree on any mandatory initia- tives for the shipping sector. CESA supports in principal the European strategy to reduce emissions from in- ternational shipping by 20% by 2020 with 2005 emission levels as reference. Globally applicable regulations as well as the retroitting of existing ships are prerequisites to achieve this goal. In addition, the principle of "common but differentiated responsi- bility" has to be avoided in this context to ensure a level playing ield for all lag states. Market based instruments, such as emission trading schemes or a contribution to an international compensation fund, are the solutions preferred by the European shipbuilders. Such instruments could provide both the incentives and lexibility necessary to stimulate the technical innovation and to enforce the demand of available technology. Unfortunately, IMO has continued to focus much effort on the development of complex indexing systems for individual newbuildings and existing vessels. Because of persistent grave conceptional laws, the Energy Eficiency Design Index (EEDI) still does not do justice to the large number of vessel types and transport concepts. In the last twelve months, CESA continued to submit evidence that fast and energy-eficient pas- senger and RoRo ships such as those built in Europe are still threatened by operating restrictions, while slow standard types of vessel scarcely optimised are subject to less ambitious requirements only. A mandatory application of the EEDI concept especially on ferries and cruise ships would be extremely premature and could yield only minor reductions of air pollutants from shipping. On the other hand, negative effects on the modal split could hamper the European short sea shipping threatening also the competitiveness of European shipbuilders. The CESA position has recently been backed by scientiic evidence provided by an independent study commissioned by the Euro- pean Maritime Safety Agency. 5 Safety and environment 21 CESA 2009 - 2010 5 Safety and environment A topic which has started to attract more attention is noise emission, on board in ports and under water. A submission to the IMO by the EU on on-board noise required substantial correction, which CESA has sucessfully brought forward. On underwater noise, CESA has joined the Correspondence Group established in the MEPC. Technical Advisory Committee The Technical Advisory Committee (TAC) was established in 2005 focusing on safety and environ- ment related regulatory support to CESA members. Mr. Willem Laros is the Chairman of TAC and Mr. Lanfranco Benedetti is its Secretary. During 2009, the Technical Advisory Committee met four times. Committee for Expertise of Shipbuilding Speciics (CESS) CESS intends to act as a body representing ive shipbuilders associations (Japan, Europe, China, South Korea and the USA) on technical matters and has intensiied the relation with related indus- tries such as shipping, classiication societies and equipment manufacturers in the past years. In addition to the joint tasks on PSPC (Performance Standards for Protective Coating) and COTCPS (Cargo Oil Tank Coating Performance Standards), since the second half of 2009, two more coor- dination groups were formed to work on GHG and Goal Based Standard (SCF and related IPR) issues. In September, in preparation of the Tripartite meeting 2009, a meeting has been held in Hamburg. At that occasion, views were exchanged on positions on GHG issues, on Ship Recycling, Ship Con- struction File (SCF), Waste Management and Green Ship Design. Particularly the SCF is the demonstration how the Shipbuilding Industry can signiicantly increase its inluence when working together on issues of common interest and on which the same opinions are shared. The repeated presence of Asian shipbuilders colleagues in the CESA delegation at the IMO indicates that this delegation is able and willing to involve and represent also other geographi- cal shipbuilding areas. Tripartite The most signiicant outcome of the Tripartite in the reporting period has been the successful endorsement by MSC87 of the SCF philosophy on the protection of the IPR. The cross-industry commitment has been elaborated alongside the Tripartite meeting (mid September 2009) to arrive well prepared for the MSC87. But not only SCF has been targeted during the past year. An initiative born inside the Tripartite on GHG emissions reduction has been established. Two workshops have been held in Japan and China to openly discuss the problems related with the EEDI approach for certain ship categories and to discuss GreenShip Technologies in general taking advantage of the new available tools and technolo- gies to design an energy eficient ship. 22 CESA 2009 - 2010 Among the several issues touched upon during the Workshops, some might be of interest for future important developments: (1) It has been shown how the correlation is not satisfactory for con- tainer vessels in general and specially for smaller vessels; (2) It has been shown how the inclusion of velocity in the denominator of the formula improves the correlations and it is hydro-dynamical consistent; (3) Safety issues related to underpowered ships (fully loaded or in ballast condition) have to be clariied since there are at present no rules concerning power for navigation in adverse conditions; (4) There is a general agreement on having segmented baselines to take into account the high scatter of the data; (5) Because of the speed reduction, it will not be possible anymore to order certain kinds of ships, which must have consequenses for the strategies pursued by ship owners; (6) EEDI veriication process has been recognised to be a key element to address in future and it is common understanding that the crucial phase will be in the sea trials veriication process. 5 Safety and environment 23 CESA 2009 - 2010 Under the auspice of the European Commission DG Employment and Social Affairs, CESA and EMF established in 2003 the Social Dialogue Committee on Shipbuilding and Shiprepair (SDC), the irst social dialogue committee in the metal sector. Both CESA and the European Metalwor- kers' Federation (EMF) share a common view on the prospects and challenges European shipyards are facing. As the core objec- tive of the committee, the social partners want to contribute to the viability and perspectives of the European shipbuilding sector, supporting competitiveness and a high degree of employment with high quality jobs. The sound cooperation of the social partners is giving substantial value added to the sector by building common understanding and trust enabling the parties to join forces for common goals. Market and Policy Developments WG The active exchange about market and policy development which facilitates a common understan- ding of the partners is a permanent agenda item of all Social Dialogue Committee meetings. The respective working group is following-up this exchange and develops joint statements and supports mutually consulted contributions to the LeaderSHIP process, to which the social partners have been a part from the beginning. 6 Social Dialogue 6. Social Dialogue "In our regions, shipbuilding is an essential sector for the prosperity of our people." Joint Declaration of 36 European Regions, April 2010 24 CESA 2009 - 2010 This joint work took also place in the run-up to the LeaderSHIP High Level Meeting in Bremerhaven in September 2009, chaired by Günther Verheugen, then Commission Vice-President in charge of In- dustry. CESA and EMF considered the action programme that resulted from that meeting the right way ahead for the industry, if implemented without further delay, fully recognising that the industry needs irst of all new orders to limit the employment impact to the minimum. At the end of 2009, on average about 20% of the jobs at shipyards were affected already. Without new contracts before summer 2010, an employment crisis with half the jobs at stake will be unavoidable. To avoid such an employment crisis, the group advocates complementing temporary employment measures that could help to avoid a social crisis and maintain a skilled workforce. Image WG The creation of the image working group resulted from the LeaderSHIP action item "access to qua- liied workforce". The SDC noted that improvements of the public perception for the shipbuilding and shiprepair industry would help to attract talented young people to work for the industry. The SDC considered highly-qualiied and highly-motivated employees as a cornerstone to guarantee the productivity, innovation and competitiveness of European shipbuilding and shiprepairing industry. Today, the public opinion is largely taking good note of the fascinating technologies applied in and produced by shipyards across the continent. To ensure that this message is not lost in dificult economic times, the Social Dialogue Committee decided to organise, in 2009, the third European Shipyard Week. Various events were organised across Europe at national, regional and company level in the irst week of Octo- ber. During the Opening Conference in Brussels, CESA and EMF had called for a look beyond the crisis, as a temporary lack of long- term thinking during cyclical downwards periods can be dificult to compensate du- ring upswing phases. With a special focus on young generation's input during the conference, at this edition, the young workers and young professionals had a much appreciated opportunity to share their current ex- periences and relect together with European policy makers on their future careers in the sector. Training and Qualiication WG In view of the comprehensive involvement in activities related to address the economic chal- lenges, the SDC decided to reduce temporarily the actions related to training and qualiication. The general initiative of the European Commission to develop Sector Skills Council relects the 6 Social Dialogue European Shipyard Week Conference (Brussels) 25 CESA 2009 - 2010 acknowledgment that an ade- quate and sustainable industrial base can be enhanced through technological innovation which relies on advanced technical skills. CESA and EMF monitor the developments and consider the application of such instru- ments. The message of retaining skills and safeguarding key technolo- gies, know-how and technical education during economic downturn is actively debated also within the Maritime Industries Forum's HR Working Group, as the preservation of maritime competence is a challenge and goal of the entire cluster. Social Standards WG On the initiative of the EMF, CESA has agreed to enter into a carefully balanced discussion on social standards. As a irst step, the SDC has agreed to create a very small task group to consider also ways to approach the topic. Basic elements include the development of a joint perception of the industry as a workplace in the sense that it offers many opportunities for highly skilled people, lexible working places and access to latest technologies. As for the respect of core labour standards, there remains a continuing gap between the European and global recognition of core labour standards and their application. In the context of improving social standards, the industry proposed to go beyond the generally accepted ILO principles already in place and take as point of reference the Acquis Communautaire. The SDC agreed to mutually support the full implementation of the Acquis in case where dificulties still persist. The Social Dialogue Working Group of CESA was created to pursue constructive dialogue related to social matters. Through the Social Dialogue Committee, CESA and EMF received the status of European social partners. As such, they are consulted about social policy pro- posals and, if they wish, conclude contractual agreements. At the end of 2009, the group thanked Mr. Ruud Schouten for his hard work as the Chairman of the group and elected Jenny Braat as the Chairwoman of the Social Dialogue Working Group and the Chairwoman of the Social Dialogue Committee. 6 Social Dialogue 26 CESA 2009 - 2010 Market Situation This section provides a picture of the ship maintenance, repair and conversion business, built up over the course of 2009 from the national situation reports that form a regular and important part of the exchanges of information that take place in the SMRC Group at its Standing Committees. Information on individual countries can be found in the 'Reports of the National Associations' sec- tion of this publication. Ship maintenance, repair and conversion is not the same business as newbuilding. Ship maintenance and repair is typically a short term activity, with estimated average time a ship is with a yard for maintenance and repair work being about 12 days. The sector has more of the characteristics of a service industry than of a manufacturing industry. Ship conversion is closer to newbuild in time scales for each job, and often has a higher manufacturing content than does a maintenance/repair job. There is a fundamental difference in approach between newbuild on one hand and maintenance and repair on the other, in that successful newbuild depends on making a robust build plan and sticking to it, while maintenance and repair depends on making a good plan but having the lexibility to accommodate changes to it. The year 2009 marked a return to more normal market conditions for the maintenance, repair and conversion yards in Europe, after the extremely good market they had enjoyed from early 2005 – in the opinion of most yards, the best market they had seen for more than a quarter of a century. While there was a decline in the market for maintenance and repair in 2009, it was certainly not a collapse. However, over the year, there were more reports of competition for work, though at the same time some yards were reporting problems in inding the skilled people they required. It is fair to say that, at the beginning of 2009, there was a high degree of uncertainty about where the market would go during the year. At the irst SMRC Group meeting of 2009, which took place in early April, some participants were, perhaps surprisingly, able to report that activity was at a higher level than in the inal quarter of 2008, though the majority reported activity levels down on the previous year. By the next meeting, at the end of May, there was a marked divergence of opinion, with some participants reporting that they had done almost as well in the irst part of 2009 as they had in 2008, but others expecting a signiicant drop in turnover over the whole of 2009. 7 Ship maintenance, repair and conversion sector 7. Ship maintenance, repair and conversion sector 27 CESA 2009 - 2010 The inal Group meeting of the year took place early in November. At that meeting, a clearer and more consistent picture emerged. Most participants reported that, after a reasonable irst quarter and, for some, second quarter, the market had been quiet in the third quarter, but was showing signs of recovery in the inal quarter of 2009. The Group consensus was that turnover across Europe in the sector would be about 20% down on 2008. Given that 2008 was for most a record year, this was seen as a satisfactory outcome, and certainly not a crisis for the sector. Some participants were able to report positive signs for the development of the market in 2010 in terms of enquiries received towards the end of 2009. Taking a medium term view, the market for maintenance, repair and conversion yards in Europe looks promising. The global economy is beginning to recover, albeit in a patchy way. Shipowners are continuing to spend on the maintenance and repair of their vessels, though the evidence from SMRC Group participants is, not surprisingly, that owners are spending less on each vessel that goes into yards. Ship scrapping rose signiicantly in 2009 from the near-zero levels of the previous few years. But it still only amounted to about 900 ships, when deliveries of new vessels into the global merchant leet were around 2,000 ships annually, with some 10,000 ships in the orderbooks of the world's newbuild yards. The net position, therefore, is that there are a lot more ships that will re- quire the services of maintenance, repair and conversion yards over the coming years. M AINTENANCE , R EPAIR & C ONVERSION T URNOVER 2005-2009 2005 2006 2007 2008 2009 Croatia 38 34 33 55 49 Denmark 85 100 140 170 160 France 90 100 135 135 123 Germany 601 747 955 1,100 1,100 Greece 50 86 108 117 87 Italy 300 330 351 395 350 Lithuania 62 66 74 87 61 Malta 46 57 49 n/a n/a Netherlands 250 525 664 750 485 Norway 50 90 90 110 48 Poland 155 180 304 235 250 Portugal 108 121 132 172 146 Romania 55 69 54 46 26 Spain 270 275 350 403 280 UK 391 300 252 270 280 TOTALS 2,551 3,080 3,691 4,045 3,445 7 Ship maintenance, repair and conversion sector 28 CESA 2009 - 2010 The formalities Mr. Werner Lüken of Lloydwerft, Bremerhaven, served his second year as Chairman of the SMRC Group, stepping down at the 2009 Annual General Meeting. Elected as incoming Chairman was Mr. Frederico Spranger of LISNAVE, the former Vice-Chairman, with Mr. Costas Kokkalas (Neorion/Elefsis) elected as the new Vice-Chairman. In accordance with usual practice, the SMRC Group held three meetings during 2009. The irst Standing Committee took place in Paris on Friday 6 April. The second Standing Committee was coupled with the Group Annual General Meeting, held in Bucharest on 29 May as part of the CESA General Assembly. The third meeting was held in Brussels, at the CESA ofices, on 3 November. Special topics In 2009, the Group continued to work on the basis of targeted activity. Each year, Group partici- pants are invited to consider the targets selected and to decide whether they remained valid for the year ahead or should be changed. • Raising a wareness of the sector. • Repr esenting the maintenance, repair and conversion yard interests in specialist CESA working groups. • Encouraging innovative thinking about ways to make best use of European yard capacity and capability. In pursuit of the irst target, work continued, and was discussed and agreed stage by stage with the Group, on the development of a promotional brochure for the sector, which will be made available early in 2010. This brochure is intended for opinion-formers in Europe, so they will be properly aware of the size and the signiicance of the maintenance, repair and conversion sector in Europe. A second meeting was held during the year with oficials from the EC Research and Development Directorate, to further the case for supporting the R&D requirements of the sector. The Executive Secretary spoke about the sector to conferences in London on Shiprepair Contract Management in 2009, and, early in 2010, in Hamburg on Optimising Ship Maintenance. In the second target area, the Group maintained its involvement with the CESA Technical Advisory Committee. In this Committee, there is an SMRC Group input to consideration of matters such as the development in IMO of a Ship Construction File (information about how a ship was built that will stay with the ship through its life) and a Coating Technical File (similar through life information about coatings) and with the Shipbuilding Social Dialogue Committee, which is an EC-promoted forum for the employers and the trade unions to meet and discuss topics of mutual interest, mainly in ways of attracting and retaining skills, and training and development issues in the sector. During 2009, the SMRC Group accepted an invitation to join the CESA Market Monitoring Group, thus providing the sector with an opportunity to provide a regular market update in reports that had previously featured newbuild only. In the third area, the 'think tank' discussion format had to be put to one side in 2009 because of pressure of other agenda items, but the broad target area was continued, by discussion at Group 7 Ship maintenance, repair and conversion sector 29 CESA 2009 - 2010 meetings about the research, development and innovation needs and priorities of the sector. The effect of these discussions during 2009 was to enable the SMRC Group to make a clear and speciic input through the CESA Working Group COREDES, which oversees R&D matters for the industry, to WATERBORNE, which is the grouping intended to cover R&D needs of the wider maritime industries sector. The expectation is that this clear statement of the sector's requirements will be relected in EC calls for project proposals in future funding programmes. At the inal SMRC Group meeting of 2009, it was agreed that the think tank format should be re- vived for the irst meeting in 2010, at which the topic would be to consider whether there might be a market for European maintenance, repair and conversion yards in the ship recycling business. 7 Ship maintenance, repair and conversion sector 30 CESA 2009 - 2010 8 Naval sector The CESA Naval Group facilitates a shipyard-centred cooperation structure. In its 2010 annual meetings, the group decided to strengthen its activities in particular with regard to the cooperation with the European Defence Agency. The following text contains some general view points by the Groups' Secretary Willem Laros. The European naval sector has sofar not seen the dramatic downturn in terms of new building orders due to the economic crisis as European commercial shipbuilding. Partly because of the long lead times of the projects and partly because of the start of programmes already decided upon, the level of activities within the naval sector have remained relatively stable over the past period and will stay so in the immediate future. However, even this sector is facing the negative effects of this crisis. As stated in earlier annual reports, European Naval Shipbuilding is depending to a large extent on the domestic demand of the Member States. A recent (2010) study: "Naval shipbuilding in Europe; Current Developments and Perspectives 2020" ini- tiated by the European Metalworkers' Federation (EMF) with the support of the European Union demonstrated once again that this demand is not suficient to main- tain the European naval sector in its present form. The export market can provide the necessary additional turnover, either directly by building in Europe or indirectly through building outside Europe under licence and/or by subsidiaries. The large bud- get deicits in most of the European countries are to be compensated in the coming years by large cuts in Government spending - defence and thus navies not excluded. The informa- tion available seems to indicate combinations of early decommissioning of existing material, slowing down of already planned acquisitions and review of existing long term procurement plans in terms of limiting numbers or even scrapping. Furthermore, naval budgets for research & development, which have already seen structural cuts over the past years, are expected to be further reduced. This will have without doubt an impact on the European naval shipyards as we know them today. The above mentioned EMF study is making reference to the historical national focus of the navies in terms of procurements of naval capital goods and thus the limited motivation for cross border consolidation of the yards and concludes that a number of yards could face a shortage of critical mass in terms of technology, manufacturing capacity and project management with closure as a realistic outcome. At the same time, on a world scale, the European navies are giving way to fast growing navies such as China and India. The anticipated budget cuts would certainly accelerate this process. Normally budget cuts are met by cutting spending across the board. This time, the announced budget cuts are so large that, without a major change of course, a number of navies themselves are threatened to become sub-critical across the same board in a matter of years. Only by pulling the resources together, there is a chance that a European Navy can claim a position of inluence compatible with our world-wide political and maritime interests. This cannot be achieved by co-operation and rationalisation only. Integration of multi nation sub-critical capabilities into a credible whole would take substantial time with an uncertain outcome. An alternative way would be to build with complementary but credible blocks of capabilities based on national specialisation of tasks and knowledge. Thus, capabilities both in terms of numbers and experience remain credible at national level albeit limited to certain areas. This option requires choices and European direction. Not an easy way to go, but to meet the required cuts, large players as the UK, Germany and Spain are forced to consider this scenario. If this is the way to go, then the European Naval Industries need to prepare themselves to follow their respective navies. This would result in a new landscape of centres of excellence in certain naval technologies spread over Europe such as: submarines, surface-combatants (air defence/sub- marine warfare), offshore patrol, expeditionary support vessels, logistic support, mine counter measure, etc. Each centre focussed on design, construction, testing and life cycle support with suficient mass to serve the European market and the export market at a competitive level. In this respect, CESA welcomes the recent decision to strengthen the CESA Naval Working Group and the actions undertaken to develop in support of the European Defence Agency a Naval (platform) Strategic Research Agenda as a tool to manage and plan future naval R&D at European level. 8. Naval sector 31 CESA 2009 - 2010 Under the current mar- ket situation, some com- panies might deem intel- lectual property (IP) protection concerns as a lower priority matter. To compete for scarce new orders, many may be prepared to accept for weaker contractual terms. CESA, however, is advocating the mes- sage that IP protection has become more rele- vant than ever. The crisis has led to iercer competition not only on pricing but also on rule compliance. With orders for standard ship types "dried out", the other part of the shipbuilding countries and regions is increasingly seeking to take European spe- cialised ship orders, further elevating the importance of shielding knowledge. In addition, unavoi- dable restructurings and consolidations during this dificult period would result in a further change of supply chains and transfer of know-how. Nevertheless, CESA also realised that it may not always be realistic for companies to "chase" infringement cases in order not to endanger business rela- tions with customers. Thus, GuardSHIP, the European shipbuilding IP protection initiative under the CESA umbrella, has put its focus in the coming years on "prevention". Research and innovation activities are the source of knowledge creation. IP protection should start from the stage of creation. During the period of 2009-2010, GuardSHIP has been involved in large European R&D projects and assisted project partners in designing their IP plan- ning and implemen- tation. In the mean- while, the second and third updates to the GuardSHIP Handbook are ready for publi- cation which would cover new case stud- ies, IPR tool examples, and new guidelines for various departments in a yard. The aim of publishing those guidelines is to help companies "audit" their daily operation and raise IP protection awareness and take preventive measures at all levels. Funded by the European Commission, two European shipbuilding IP Protection workshops were held on 4 February 2010 in Rotterdam and on 26 March 2010 in Hamburg. All major players in the maritime sector, i.e. ship yards, marine equipment suppliers, classiication societies and others have taken part. 9 Intellectual property rights 8. Naval sector 9. Intellectual property rights 32 CESA 2009 - 2010 10 Maritime policy With the successful introduction of the new integrated maritime policy, the European Union ac- complished an essential irst step towards an appropriate relection of the importance of maritime affairs. Considering the wide scope of maritime affairs, it seems so obvious to have a distinct policy area to deal with all the related issues that one should wonder why it was not put in place already decades ago. Addressing the lack of awareness in the wider public will require a long process, which has now been irmly launched. As a new policy area in its infant stage, answers to a number of fundamental questions need yet to be developed. Identifying the core objectives, establishing optimal organisational structures and allocating appropriate resources and policy instruments are on-going tasks. Obviously, the core objectives of the EU as a whole will have to be at the heart also of maritime affairs: the environment and growth & employment. The stakeholder on the centre stage on both subjects is the industry. Industrial maritime operations are cause for concern in terms of pollution. At the same time, feasible remedy to such concerns can only come from appropriate technologies. The maritime industries have, therefore, a special responsibility. Many companies, in particular in Europe, not only fully accept this responsibility but are convinced that they are part of the solution, rather than the problem. From maritime affairs, major contributions can be expected to the new Europe 2020 strategy. Wa- terborne transport consumes less energy than any other mode of transport and has a lot potential for further growth. Particularly with regard to short-sea-shipping and inland navigation, waterborne transport contributes to addressing congestion and is a key element for an eficient and sustainable transport concept. More energy eficient hull forms and propulsion concepts and alternative forms of power generation based on much cleaner fuels will revolutionise waterborne transport over the coming decade and will enable even zero emission solutions. With off-shore wind energy, Europe is on track to build the largest source of renewable energy based on proven technologies. In the future, off-shore wind parks could be combined with ocean energy plants harvesting the much denser power of waves, currents, etc. New business opportunities will also arise from trading and exploiting natural resources in arctic waters. Off-shore mining could play an essential role in secu- ring some of Europe's raw material needs. Maritime tourism, particularly cruising and yachting, have seen strong growth over the past ten years and have continued on their path also during the cri- sis. Europe's maritime manufacturing industry, shipyards, maritime systems and equipment makers, 10. Maritime policy 33 CESA 2009 - 2010 research and education institutes and many others, provide the most advanced hardware, which is a precondition for any of these growth opportunities. In order to ensure Europe's maritime capabili- ties and competences to lourish, sound competitive conditions must prevail. The considerations above are only a small sample of the wide range of issues discussed during the European Maritime Day events all across the EU. The central event in Gijón illed almost a full week from 18-21 May 2010. With 2,000 participants and more than 60 workshops and sessions, several of which with an active contribution from CESA, all aspects of maritime activities were addressed. After the formal inauguration by His Royal Highness Prince of Asturias, Ministers, Commissioners, Members of Parliaments, and high ranking stakeholder representatives presented their views du- ring the Plenary Sessions. The maritime industry was represented by the CESA Honorary Chairman Corrado Antonini. The Maritime Industries Forum, in which CESA, as a founding member, functions as one of ive coordinators, held its plenary session focusing on key competitiveness factors for the entire mari- time industry in Europe. The Waterborne Technology Platform held its General Assembly, endorsing the report on activities and agreeing on the main tasks for the up-coming period. CESA also used the opportunity of the European Maritime Day for the award ceremony in the context of the VISIONS project. A team of the University of Liège (Anast) with their project "The Ferrybird" was chosen as the 2009 winner of the CESA SMART Award. Second place was achieved by a team of the University of Newcastle upon Tyne and the third place by another team of the same university. During a panel discussion on the future directions of the Integrated Maritime Policy, CESA's Secretary General Reinhard Lüken underlined the great progress made on IMP and reminded also that yet a lot of work needed to be done by all parties including the EU Institutions, Member States, Regions and all stakeholders to ensure that the impact of maritime affairs is fully recognised. 10 Maritime policy The Ferrybird General arrangement of the Ferrybird 34 CESA 2009 - 2010 11 New Markets The EU is confronted with twin challenges: sustainable growth and scarce natural re- sources. The maritime industries are pio- neering the development of new markets with high growth potential, like energy and food from the seas, pollution control, clean and safe transport of passengers and goods, deep-sea mining for minerals, etc. Shipyards are taking all necessary measures on their side to adjust to the changed business environment and beneit from growth markets. CESA Orderbook by Shiptype 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2003 2004 2005 2006 2007 2008 2009 % CGT Ferries&Passenger ships General cargo ships Non cargo vessels Gas tankers Tankers Containers ships Bulk carriers Data source: IHS Green Shipping The rising concerns on environment and climate issues will help the shift of a part of the volume of freight transport from road and rail to inland waterways and short sea shipping, thus increasing the demand for building but also repairing ships. According to the European Barge Union, only around 25% of the European inland leet is less than 20 years old. In the deep sea leet, there are more than 300 trading ferries older than 30 years. While demand for standard shiptypes is expected to remain weak for several years, the right regulations towards green shipping could stir the demand for en- ergy eficient new generation of designs, forcing old and polluting vessels out of the markets and improving further the carbon footprint of shipping. Improving the footprint of the vessels trading in all European waters should be at the forefront of the political and business agenda. Offshore Renewable Energy A number of new markets for European yards are anticipated to grow in addition to new designs for low emission ships. In the context of the 20% renewable energies target, the shipyards can Europe's pursuit of growth opportunities 11. New Markets 35 CESA 2009 - 2010 provide valuable expertise for eficient, reliable and environ- mentally friendly services for offshore wind, wave, tidal and ocean thermal energy har- vesting. In February 2010, CESA and the European Wind Energy Association (EWEA) organised a cross industry workshop bringing together about 80 participants from the shipbuilding and the wind energy industry, oficials from the European Commission and the European Invest- ment Bank. The participants discussed the business op- portunities and technologi- cal challenges linked to the offshore wind energy market. The workshop reviewed the wide range of technology ap- plications already available in Europe and discussed how to organise most effectively further advances to optimise cost-effective installation and maintenance of offshore wind park projects. Within the fair- ly mature wind sector, the off- shore wind energy is still at an infant stage and lacks the expertise related to the harsh sea conditions. The European shipyards demonstrated that they hold the necessary engineering power to develop innovative solutions for dedicated offshore installations and service vessels ensuring maximum operation times also in harsh sea conditions. In the joint call for investments in ships for offshore wind expansion, CESA and EWEA urged the European Commission to develop programmes and funding mechanisms to ensure that a suficient number of installation vessels are available to the offshore wind industry and called on the Euro- pean Investment Bank to take the necessary measures to support the risk related to these signii- cant investments. The two associations will further collaborate in order to support the European institutions in taking appropriate action. Maritime Tourism In addition, well established growth markets, such as the cruise industry will continue to de- velop positively following the current increase in passenger numbers in Europe. Over 10 years from 1998 till 2008, demand for cruising worldwide had increased by 110%. In Europe, the cruise 11 New Markets 11. New Markets 36 CESA 2009 - 2010 11 New Markets demand increased by 165% for the same period, and European destinations became more and more demanded by tourists from across the globe. Global demand for private luxury yachts has been in- creasing steadily over the past years and recreational boat ownership is growing annually at 5-10%. These are dynamic sources of economic activity supporting ports, shipbuilders, ship maintenance and repairers and equipment suppliers, not to mention the well known beneits for the on-shore businesses. Arctic Resources New researches in the Arctic region conirm that ice covers vast areas containing mineral and hydrocarbon resources. In its Communication on the Arctic Region from November 2008, the European Commission called for a structured and coordinated approach to arctic matters under strict environmental standards that take into account the reduced accessibility and vulnerability of the region. With the right development programmes and acting in line with the principle of sustai- nability, the Arctic region could contribute to EU's security of supply concerning energy and raw materials. These challenging goals cannot be achieved without the latest technological advances from the shipyards. The manifold perspectives offered by eco-innovation, energy and food security, sustainable trans- port of goods and persons, leisure and tourism, deep sea mining, etc. enable Europe to achieve sus- tainable growth and economic competitiveness. The economic crisis provides momentum to sup- port - via regulatory and iscal measures - this shift towards new market opportunities. Shipyards deliver the hardware needed to exploit their potential in a clean and safe way. Loss of the shipbuil- ding capabilities means loss of opportunities to explore these emerging new maritime markets. 37 CESA 2009 - 2010 The following reports are written by the National Associations who are members of CESA. They represent the situation and views of the industry in the respective country. Note: This chapter reports the results recorded by the National Member Associations of CESA. Differences between CESA data and data from other sources, in particular Lloyd's Register – Fairplay (LR–FP), result from different methodologies and deinitions related to the data-collection (e.g. LR–FP's point of determination is the hull-construction, for CESA it is the ship delivery by the contracted yard. Consequently, countries with strong outitting activities on sub-contracted hulls record substantially higher values in the CESA statistics compared to LR-FP and vice versa). CESA considers LR-FP data well suited for international comparisons, whereas real economic performance is better relected by the CESA approach. 12 Reports of the national associations 12. Reports of the National Associations 38 CESA 2009 - 2010 Overview Source: CESA NEW ORDERS DURING 2009 CGT 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 CROATIA NETHERLANDS ITALY GERMANY SPAIN NORWAY ROMANIA POLAND FINLAND BULGARIA LITHUANIA FRANCE DENMARK GREECE PORTUGAL UK Source: CESA COMPLETIONS IN 2009 CGT 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 GERMANY NETHERLANDS ITALY NOR WAY ROMANIA CROA TIA SP AIN FINLAND POLAND DENMARK FRANCE PORTUGAL BULGARIA LITHUANIA GREECE UK Source: CESA ORDERBOOK - 31.12.2009 CGT 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,000 GERMANY ITALY NETHERLANDS SPAIN ROMANIA CROATIA NORWAY FINLAND DENMARK FRANCE POLAND BULGARIA LITHUANIA POR TUGAL UK GREECE 12 Reports of the national associations 39 CESA 2009 - 2010 in mill. EUR SHIPREPAIRING AND CONVERSION TURNOVER 2009 GERMANY NETHERLANDS SPAIN ITALY UK POLAND PORTUGAL DENMARK FRANCE GREECE NORWAY LITHUANIA CROATIA ROMANIA 0 200 400 600 800 1,000 1,200 Source: CESA Source: CESA VALUE OF COMPLETIONS in 2009 SP AIN 11.6% ROMANIA 3.1% POLAND 2.8% PORTUGAL 0.6% NORWAY 18.7% NETHERLANDS 1 1.4% LITHUANIA 0.4% ITALY 15.3% GREECE 0.1% GERMANY 16.7% FRANCE 4.8% FINLAND 7.6% DENMARK 3.2% CROATIA 3.6% BULGARIA 0.2% UK 0.1% 15 669 MLL. EUR Source: CESA VALUE OF ORDERBOOK AT 31.12.2009 SPAIN 13.9% POLAND 1.0% PORTUGAL 0.1% ROMANIA 3.8% NORWAY 12.0% NETHERLANDS 10.9% LITHUANIA 0.2% ITALY 17.0% GERMANY 26.4% FRANCE 3.8% FINLAND 4.7% DENMARK 1.9% BULGARIA 0.3% CROA TIA 4.0% 36 558 MLL. EUR Source: CESA WORKFORCE 2009* GERMANY FRANCE POLAND NETHERLANDS ITALY ROMANIA CROATIA UNITED KINGDOM SPAIN NORWAY BULGARIA FINLAND DENMARK GREECE PORTUGAL 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 * See notes Annex I LITHUANIA 12 Reports of the national associations 40 CESA 2009 - 2010 Bulgaria National economy and policy de velopment - gener al situation Bulgaria was not in the position to re- main in isolation from the global inancial crisis and its indirect and direct impact, that was felt in 2008, continued into 2009. The principal data for Bulgaria show de- creased GDP, reduced direct foreign investments, reduced import, growing unemployment that is expected to aggravate in 2010, reduced revenue from foreign capitals, less local demand, dificult access to credits and embarrassed condition of the borrowers: • GDP slump for 2009 as compared to 2008 was by 5.1%. The estimated current amount of GDP for 2009 was at the rate of 66.2 billion BGN. The gross value added for the economy was 55,632 billion BGN, and it actually shrunk by 3.6%, the level reached in the respective period of 2008. •At the end of 2009, the number of persons employed decreased to 2,254,029 persons as compared to the end of 2008 when the number of persons employed was 2,436,128 persons. •The number of unemployed within the country in the last quarter of 2009 reached 272,800 persons. The unemployment ratio was 7.9% and it increased by 2.9% as compared to the last months of 2008 i.e. based on the national statistics data for the year, the number of unem- ployed in the country raised by 95,000 persons. •The average monthly salary of the persons employed under labour and oficial legal relations in December 2009 reached 625.00 BGN. (Sources: National Statistical Institute, National Employment Agency) Introduction of the national shipbuilding industry Association portfolio At the end of 2009, the number of BULNAS members was 29, and in March 2010 it reached 37. BULNAS members are the 6 shipbuilding and ship repair yards in Bulgaria having more than 20 years of experience: Bulyard – Shipbuilding industry EAD, Bourgas Shipyards JSC, MTG - Dolphin PLC, Rousse Shipyard JSC, Odessos Shiprepair Yard S.A., TEREM - KRZ Flotski Arsenal - Varna Ltd; the two ship machine building yards in Bulgaria: Ship Machine – Building JSCo - Varna and KMM JSCo – Shumen; the two universities in Bulgaria training marine specialists, namely The Technical Univer- sity of Varna, and N.Y. Vaptsarov Higher Naval School and 27 design, classiication and scientiic or- ganisations and companies involved in shipbuilding and shiprepairing related activities: Abemar Ltd, Black Sea Jacht Service Ltd, Bulmar Consult Ltd, Bumerang Shiping Ltd, Varna Maritime Ltd, Varna Pro JSC, DZZD Balans electronic; Maiak-K Ltd, Morgan Ltd, TEVA Marin Ltd, Ula Ltd, Uniel Ltd, Uta - Dik Ltd, Association of "Small graft design", Bulgarian Register of Shipping Ltd, Bureau VERITAS Varna Ltd, Wartsila IHB Ship Design Bulgaria AD, Vripak Engineering EOOD, Germanischer Lloyd Bulgaria Ltd, Bulgarian Ship Hydrodynamics Centre – BAS, Keppel FELS Baltech Ltd, Ship Engineer- ing, Design & Investigations Ltd, Lawrazia Ltd, MAN – Diesel Bulgaria EOOD, Marine Design Ltd; Smart design 2006 Ltd, Scientiic and Technical Unions – Varna. 12 Reports of the national associations 41 CESA 2009 - 2010 Shipyards' Employees The economic crisis had also a negative impact on the shipbuilding and ship repair sector in Bulgaria, leading to curtailments in this sector. At the end of 2009, the total number of persons employed, BULNAS members, was 4,968, of whom 2,100 persons were employed in newbuilding. Products The product portfolio of the shipbuilding and ship repair yards includes: • Pr oduct Carriers • Bulk Car riers • General Garg o Ships •Passenger Vessels • Offshor e Supply Vessels (including Anker Handlers Tug Supply) • Y achts, Barges, etc. • Shipr epairs & ship conversions • Na val vessels • Construction of loating r einforced concrete facilities Development in shipbuilding and shiprepair industry As a whole, 2009 was very dificult for the marine business in Bulgaria and shipbuilding declined by approximately 30-40 %. There was a long period with no contracts for new orders for shipbuilding and, as a whole for 2009, there were contracts for only 2 new ships (13,736 CGT). For the same period, orders for the construction of 5 new ships (79,857 CGT) were cancelled. Despite the crisis, the Bulgarian shipbuilding industry registered some progress in the past year such as the construction of the training sail ship "Royal Helena" and the revival of the construction of loating reinforced concrete facilities, i.e.: • The training sailing ship "Royal Helena" is the only sailing ship Class "A" entirely built in a Bulgarian shipbuilding yard, MTG-Dolphin Pls, the production being Bulgarian from the pro- ject itself to the construction and sailing preparation. With the construction of this ship, the shipbuilding yard MTG-Dolphin Pls ranks itself amongst the seven yards in the world building sailing ships of that class. • F ollowing about 20 years of suspension of the construction of loating facilities of reinforced concrete in Bulgaria, dating back to 1939, Ship Machine - Building JSCo resumed the produc- tion of reinforced concrete structures by using unique technologies that guarantee full water density and resistance to corrosion. After the modernisation and improvement of the tech- nologies and hauling facilities in Bulgaria, there are opportunities for design and construction of not only reinforced concrete workshops, hostels, pump stations, barges, ish factories, etc., that were built up to 1991, but also loating hospitals, hotels, parking lots, etc. for which there are conceptual projects. 12 Reports of the national associations 42 CESA 2009 - 2010 Shipbuilding data for the year 2009 N GT CGT Completed (of which for foreign account) 5 5 19.931 19.931 24.718 24.718 New orders (of which for foreign account) 2 2 11.470 11.470 13.736 13.736 Orderbook (of which for foreign account) 7 7 128.034 128.034 74.593 74.593 The year 2009 was not easy for the Bulgarian ship repair industry, as well. Since the beginning of the year, the ship repair yards have worked with heavily reduced capacity, the normal load having dropped to about 60%. Although it was hard and is still dificult to ind orders for the repair of ships, the greatest ship repair yard in Bulgaria, Odessos Shiprepair Yard S.A., invested 22.5 million USD in a new loating dock of 20,000 t elevating power which is able to repair ships of about 60,000 t DWT and width of slightly over 32 m. – an investment that will make Odessos Shiprepair Yard S.A. one of the most serious competitors in the Black Sea region. Expectations for 2010 Until the end of 2010, unexpected declines in the shipbuilding and ship repair sector are not fore- seen. However, it is being hoped for that, by the end of 2010, there will be sound indications for business recovery! Croatia National economy and policy de velopment - gener al situation The unpredicted scope of the global cri- sis affected the Croatian economy and shipbuilding industry, as well. All mea- sures of economic policy in Croatia are now focused on reducing the con- sequences of such crisis. Strengthening of entrepreneurship, reduction of taxes, 12 Reports of the national associations 43 CESA 2009 - 2010 increasing of employment, strengthening of the social security system, reduction of public spending and an increased emphasis on the role of science and implementing of new technologies in the economy are the main priorities of the Government's economic policy, which should increase the production rate. Economic indicators for 2009 GDP, bn USD 69.3 GDP per capita, USD 15,631.5 Population, m (census) 4.44 Industrial production (%) -9.2 Inlation rate (%) 2.4 Unemployment rate (%) 14.9 Exports, m EUR 7,516.7 Imports, m EUR 15,218.5 Net wage and salary, EUR 724 Exchange rate HRK:USD 5.280370 Exchange rate HRK:EUR 7.339554 CNB's international reserves (m USD, end of period) 12,958.1 Persons in employment 1,531,595 Sources: Central Bureau of Statistics (CBS), Croatian National Bank (CNB), Ministry of Finance (MF), Financial Agency (FINA) The Croatian Government's policy to close the negotiation for EU accessing was one of the most important processes in 2009. Negotiations were focused primarily on the adjustment of the Croa- tian economy and industry with the standards, rules and regulations prevailing in the EU. In terms of exports, shipbuilding, reined petroleum products, chemicals and chemical products, food and beverages traditionally lead the way. Introduction of the national shipbuilding industry The shipbuilding sector is still one of the most important industrial sectors of the Republic of Croa- tia both by its share in employment (2.5%), by its GDP share (1.4%) and by exports (12 to 15%). Due to the size and complexity of the construction of ships, a signiicant part of the Croatian in- dustry, especially small and medium-sized enterprises, are, on the basis of subcontracts and their operations, directly dependent on this sector of industry. This branch of industry represents a sig- niicant source of employment in Croatia's regions (Istarska County, Primorsko-goranska County, Splitsko-dalmatinska County). The Croatian shipyards (excluding Viktor Lenac as the only privatized Shipyard) are still state- owned, but in forthcoming time they need to be restructured and/or privatized. Their weaknesses, such as technological lagging, lower productivity, inadequate structure of skilled workers, low inan- cial potential are the main obstacles which should be resolved during the process of restructuring. The principal objectives of restructuring of the Croatian shipbuilding sector should enable the Croatian shipbuilding industry to operate on an international shipbuilding market eficiently and under market principles, all in accordance with existing EU rules and regulations. 12 Reports of the national associations 44 CESA 2009 - 2010 The expected revival of the shipbuilding industry (which hopefully shall be reached) should largely contribute to regional and social stability as well as to the national economy. Association portfolio As the construction of ships is concentrated along the Adriatic coast, all major shipyards are almost evenly distributed from the far north to the far south of the Adriatic. There are six large shipyards: • Uljanik Shipyard in Pula, newbuilding(s) shipyard • 3.Maj Shipyard in Rijeka, newbuilding(s) shipyard • Shipyard Viktor Lenac in Rijeka, shiprepairing, conversions and offshore construction (fi rst privatized shipyard) • Kraljevica Shipyard in Kraljevica, newbuilding(s) and shiprepairing shipyard • Brodotrogir Shipyard in Trogir, newbuilding(s) and shiprepairing shipyard • Brodosplit Shipyard (including Brodosplit Special Objects Shipyard) in Split, newbuilding(s) and special objects All above shipyards are associated in the Croatian Shipbuilding Corporation (CSC) which was established by the Croatian Government in 1994, as the corporative organisation covering the co- ordination of the Croatian Shipbuilding Industry on the international shipbuilding market. In 1997, CSC merged with Jadranbrod (a coordination body, linking and associating shipyards and Croatian marine equipment manufacturers for nearly 50 years) into Hrvatska Brodogradnja-Jadranbrod d.d (Croatian Shipbuilding Corporation – CSC). The CSC is located in Zagreb and beside other duties is also acting as National Association of major Croatian Shipbuilders. The total workforce in all Croatian shipyards amounts to 8,851 employees in shipbuilding activities (newbuilding and shiprepairing). The production portfolio consists of different kinds of newbuildings of various size(s), repair, con- version and offshore constructions. By the end of 2009, the orderbook consisted of: • TR/TC (56%) • WA (18%) • WD (4 %) • PV (8,7%) • GF (8%) • BN (5%) WA 18% WD 4% PV 9% BN 5% GF 8% TR 15% TC 41% 12 Reports of the national associations 45 CESA 2009 - 2010 Shipbuilding data for the year 2009 N GT CGT Mill. EUR (approx. value) Completed (of which for foreign account) 14 11 498.598 406.059 308.417 252.727 559 464 New orders (of which for foreign account) 8 4 174.640 54.640 148.358 50.914 214 66 Orderbook (of which for foreign account) 30 22 757.635 544.714 579.337 420.214 1.479 1.210 Denmark Shipbuilding In 2009, the members of Danish Maritime com- pleted ten merchant ships totalling 440,000 gt or 202,000 cgt. In addition, two naval ships were completed. For comparison, ten merchant ships – totalling 568,000 gt or 273,000 cgt – and two naval ships were completed in 2008. Direct and indirect employment at the shipyards was ap- proximately 4,200 people at the end of 2009 of which 3,200 were in newbuilding and 1,000 in repair. After ive years of strong growth, the global shipbuilding industry was greatly affected by the eco- nomic crisis in the second half of 2008 and in 2009. In the summer of 2009, the largest shipyard in Denmark, Odense Steelshipyard, announced that it is to stop building ships when the last order is delivered in 2012. The shipbuilding capacity has recently been increased in several countries now leading to an overca- pacity. However, Danish yards have built up unmatched expertise in building small specialised ships and these segments are not in a similar way characterised by structural overcapacity. Towards the end of 2009, the global shipbuilding market began to show small signs of improvement and also Danish shipyards and suppliers of maritime equipment look to the future with optimistic eyes. 12 Reports of the national associations 46 CESA 2009 - 2010 Shiprepair and conversion The level of activity at the Danish repair and conversion yards was high in 2009 though lower than in 2008. In Denmark, two repair yards offer dock capacity for ships with a length of more than 200m. and a number of yards offer dock capacity for smaller vessels. In addition to shipyards, the Association of Danish Maritime also includes producers of maritime equipment and suppliers of maritime services as members. Finland General economic situation The Finnish economy contrac- ted substantially in 2009. GDP shrank by 7-8%. For this year, the growth rate will be 1.5-2% and for next year 2-3% positive. The main reason for the plunge in industrial production was the drop in exports by nearly 25% last year, but the 13% fall in invest- ments was also an important factor. Private consumption fell by 2%. This year exports will pick up somewhat from the low level, but investments will continue to fall slightly. Private consumption will be almost lat. For 2010, the industrial production is foreseen to increase by 5% and for 2011 by around 5-10%. The unemployment rate is climbing this year to an average of 10%. The consumer price inlation slowed down considerably last year and was negative during the last part of 2009. This year, the price level will increase slightly. Shipbuilding The Association operates as a branch association of The Federation of Finnish Technology Indus- tries. Leading shipbuilding and ship repair yards, marine equipment manufacturers, turn-key suppliers in the ield of marine technology, ship designers and the Finnish off-shore industry companies have joined the Association as members. The Association coordinates cooperation in industrial and eco- nomic policy among the companies in the sector. The number of members is 56 in April 2010. The shipbuilding activities in Finland are situated in three big shipyards in Helsinki, Turku and Rauma. They are concentrated mainly on new buildings of cruise and ferries and special vessels. The total order book at the end of 2009 included 4 vessels or 290 000 cgt. The value of the order book was at the end of 2009 approx. EURO 1.7 bn. The newbuilding shipyards have received only one new order during 2009. 12 Reports of the national associations 47 CESA 2009 - 2010 The global shipbuilding industry is immersed in the worst crisis in its history, the situation is most critical in Finland at the Turku shipyard, where a lack of new vessel orders means that employment will cease for all shipyard employees after the delivery of the world biggest cruiser by the end of 2010. The global recession has also relected at the workload of the marine equipment manufacturers and ship design ofices and the whole network of shipbuilding industry. The activities in the ship repair were at reasonable level. The offshore sector has been under low working load, but in 2010 the sector has been activated with more enquiries and, because of the rising oil price, more activity has already been seen. Some countries like Russia and Brasil have announced major investment plans regarding offshore explora- tion and shipbuilding. At the end of 2009, the direct employed workforce at the yards consisted of about 3,200 people, including offshore and ship repair. At the same time, 2,400 persons were working at the same yards employed by subcontractors. As the high retirement level in the branch in the near future requires to recruit new people to the branch, a special imago campaign is still going on with an aim at attracting young people to study the branch for the times when the demand will recover. France The new French maritime industries' asso- ciation, GICAN, has been formed in 2009, by merging the French shipyards' associa- tion and the French defence and marine equipment association. Developments in merchant shipbuilding STX-France S.A., with two yards in Saint-Nazaire and Lorient, is one of the major cruiseship builders. In 2009, it delivered "MSC-Splendida", second in the serie of the biggest cruiseships delivered to a European owner (and also irst to have received from Bureau Veritas a "6 golden pearls" notation, recognising the high level of quality, safety, and health and environment protection). Saint-Nazaire is currently also building the mega-ship "Norwegian Epic" (up to nearly 7,000 persons onboard), which will offer innovative entertainments. Lorient built, in 2009, three LNG-powered ferries. Though discussions for new cruise vessels are still very lively, the world economic crisis had a strong impact. Smaller players are globally well doing. In 2009, in particular, CMN delivered two 60-meters mega yachts, PIRIOU delivered two very big ishing vessels and a 78-m double-ended ferry, while SOCARENAM is building two 75-m multipurpose supply vessels. 12 Reports of the national associations 48 CESA 2009 - 2010 Developments in ship maintenance, repair & conversion The year 2009 started well for merchant repairs. However, the end of the year has been subject to a downward trend. The French navy market is now a very open one and is seeing a tendency towards globalised (leet) contracts. From its side, the main actor in this ield, DCNS, is also taking orders from other players than the French navy. Developments in naval shipbuilding In 2009, the two main contracts for the French navy, the "Barracuda" nuclear submarines, and the FREMM-frigates have been continued. Export activities were also a hot point, with in particular a huge submarine deal with Brazil being conirmed. The French navy ordered a third LHD and command vessel (BPC), sistership to "Mistral" and "Tonnerre", highly manoeuvrable (pod-propulsion), versatile and eficient vessels. CMN is delivering the irst of the "Baynunah" corvettes to Abu Dhabi. Germany General situation In the second half of 2009, the German economy started recovering from a se- vere recession that followed the col- lapse of world trade. However, the GDP for the whole year decreased strongly by 5%. The crisis has demonstrated the high exposure of the economy to global developments. The recovery was mainly underpinned by iscal stimulus and expansionary monetary conditions. Due to past labour market reforms and more lexible working time arrangements, the employment situation has remained surprisingly stable during the year. The economic crisis worsened also the situation of the German shipyards. Extremely low demand, order cancellations and dificult inancing conditions jeopardized the survival of some yards. The total turnover of all shipbuilding activities decreased by more than 25% to 5.3 bn € and forced the companies to restructuring measures which i.a. lead to personnel reductions by about 15% resp. 3,400 employees. Shipnewbuilding During 2009, the crisis in the shipbuilding industry got worse as the demand nearly stopped and, in addition, a signiicant number of existing orders placed in 2008 or earlier were cancelled. During the year, only 20 newbuildings have been ordered with 68,000 cgt and a value of less than 0.5 bn €. These new contracts were more than compensated by 31 cancellations with an order value of 1.4 bn € raising severe problems for the future workload of the yards involved. Due to cancellations and insolvency of a few shipyards, the deliveries of newbuildings did not reach the record level of 2008. The production comprised 54 ships with 0.7 m cgt and a value of 2.6 bn €. 12 Reports of the national associations 49 CESA 2009 - 2010 Export deliveries made up about 71%. Furthermore, seven additional ships have been completed but, due to inancial problems, have not been taken over by the owner. Hence, these ships are still registered in the orderbook. About one third (based on cgt) of the production, in which 18 yards were involved, were allotted to containerships and a further third to ferries/passenger ships/yachts. The orderbook as per end of 2009 decreased to 106 ships with 1.9 m CGT resp. 9.6 bn € and focused on different shiptypes compared to completions. About 62% of the total CGT orderbook fell upon ferries/passenger ships/yachts followed by ro-ro cargo vessels with 16%. The share of containerships diminished to 10%. The remaining share of 12% contained general cargo ships, LPG tankers and non cargo carrying ships. 67 contracts with a value of 8.3 bn € were destined for foreign customers corresponding to a share of 86% of the total orderbook. Repairs and Conversion The repair and conversion business of German yards also suffered from the crisis and led to a decrease on turnover by about 20% to 0.9 bn €. Due to the lower rates in shipping, shipowners reduced their budgets for maintenance, repairs and conversions. Owners also tried to restrict the volume of single repair contracts to a necessary minimum. Furthermore, because of the break down in the newbuilding market, more yards are competing for repair and conversion contracts. Naval Shipbuilding The situation of shipyards with naval shipbuilding activities was again exceedingly dificult as de- mand, especially in the international surface ship market, was rather low and the competition with mostly state owned or state dominated shipyards in other countries remained extremely tough. Additionally, governments in many developing countries required large local contents for potential orders of their navies in order to build up own competence for their yards. The naval repair busi- ness was rather stable. The total turnover in naval decreased by about 10% to 1 bn €.However, towards the end of the year, the demand slowed down. Due to the negative trend of earnings in the shipping markets, shipowners reduced their budgets for repairs and maintenance or even cancelled planned docking contracts. Furthermore, the competition with other European or even Far East yards intensiied with increasing pressure on prices and expanding repair capacities due to lower demand in the new building markets. Greece National economy By the end of 2009, as a result of a combi- nation of international (inancial crisis) and local factors, the Greek economy faced its most severe crisis since 1993, with the high- est budget deicit as well as the second high- est debt to GDP ratio in the EU. The budget deicit stood at 12.7% of GDP. The economy went into recession and contracted by 2.5% as a result of the world's inancial crisis. Unemployment rose to 9.8% in 2009 while inlation subsided to 1%. 12 Reports of the national associations 50 CESA 2009 - 2010 Introduction of national industry The Association of Hellenic Shipbuilding and Shiprepairing Industries (EENB) numbers 3 member com- panies. •Hellenic Shipyards S.A. (HSY) •Elefsis Shipyards •Neorion Syros Shipyards Developments in shipbuilding Elefsis shipyards dealt with the delivery of two aluminium 16 m. boats for the Hellenic Ministry of Finance (Customs Service) and also with the delivery of two 84 m. car - passenger ferries (open type). Main issue were the efforts of the new Government for the sale of Hellenic Shipyards S.A. which inally was partly "in principle" achieved during the irst weeks of March 2010 when a MOA was signed with the potential new owners appearing to be a group represented by ABU DHABI MAR and Thyssen Krupp (the previous owner). Developments in ship maintenance, repair & conversion During the irst semester of 2009, HSY received equal number of enquiries relevant quotations sub- mitted and vessel awarded comparing to the previous year 2008. During the second semester, there was a reduced number of enquiries relevant quotations submitted resulting less vessel awarded com- paring to 2008. The order ratio Greek clients with International clients was about 80:20. Most of the repaired vessels were tankers (wet cargos) and bulk carriers (dry cargos) with ratio 60:40. The owners' intention was to do limited repairs just to fulill the classiication / lag requirements. Elefsis Shipyards continued with repairs and upgrading works of the semisubmersible drilling unit Pride North America that took place in the second half of 2009. The total of 98 vessels (various types) were stemmed in comparison to 129 vessels repaired in 2008. The total number of enquiries received was 311 versus 423 in 2008. Neorion faced a signiicant if not dramatic reduction in the activity of repairs during 2009 due to the current economic downturn and a subsequent decrease in demand. Member yards had to cope with the competition coming from low cost repair centres such as Montenegro,Turkey and the other Black Sea yards. The prices in these countries decreased, as a result of the world shipping crisis and the internal economic situation/competition with some of these (Tur- key) from the previous years and the price difference between them and our member yards (whose prices remained steady) increased to such levels that it became impossible to compete for any job that involves effecting big steel repairs (especially big damage). As a result, the jobs awarded tended to be al- most always with very limited scope of work, other than the regular drydocking and maintenance jobs. The total turnover of repair works amounted to € 87 m. 12 Reports of the national associations 51 CESA 2009 - 2010 Developments in naval shipbuilding Until the termination of the submarine contracts by HSY and HDW (on 21 September 2009), HSY was occupied with the materialization of submarine programmes involving the construction of new class 214 submarines and the modernization and repair of class 209 Submarines. Concerning surface vessels, HSY continued the work for the modernization of the last S-class- frigate, which presently is in the Sea Trials phase. This frigate is anticipated to be delivered in the next 2 months. Elefsis Shipyards continued the Naval new-construction programme involving the completion and delivery of two (2) Fast Attack Missile Crafts for the Hellenic Navy as well as the construction of two more vessels of the same class. Italy National situation Within the context of the worldwide crisis, the Italian situation does not seem to be, on the whole, worse than the situation of the other major economies in the EU area. This evaluation is based upon the actual structure of the country's economy which is focused more on industry – with a great amount of small-medium companies - than on inance, which can furthermore rely upon a rather conventional banking system (moderately involved in "derivate instruments") and on a solid level of private savings which somehow makes up for the high public debt. In 2009, the deicit/GDP rate reached 5.2%, worse than the 2008 result (2.7%) and grew conside- rably with the implementation of the government anti-crisis measures. For the coming years, Italy's real GDP is projected to grow at 0.8% in 2010, edging up to 1.2% in 2011 (Source IMF). In 2009, the industrial production index decreased by 17.5% compared to the average of the previ- ous year. The worsening of these indexes - as well as of orders, backlogs and investments - shows the period of recession that the Italian industry and the country's economy as a whole is experiencing. More complex is the situation in the maritime sector. Within the national cluster, for instance, the port system evidently shows the signs of the crisis, due to a drastic decrease of trafic of goods, but the situation is better in the ield of passengers where, in particular, cruisers increased by 16% compared to 2008. The leet can rely upon a high incidence of passenger ships (cruise and ferry), a sector that reacted to the crisis well, and of tankers comparatively less affected by the crisis. Different conditions are registered as well between the merchant and naval sector, the last being characterised by an acceptable level of activity. 12 Reports of the national associations 52 CESA 2009 - 2010 Shipbuilding The national yards and the supplier chain outline an increasingly worrying situation. The impact of a reduced orderbook is affecting in different ways the activity of many national shipyards. Several social measures were also adopted in this period of time. Some small-medium yards are suffering from credit crunch and a company has been pushed into insolvency. As to cruise ships – a fundamental sector of Italian shipbuilding – it must be underlined that the sharp fall in new order acquisition is continuing. In 2009, 1 ship was ordered worldwide, a 130.000 gross tonnes unit commissioned to Fincantieri by Carnival Corporation. In addition, the Carnival Group and Fincantieri reached a pre-agreement to build two prototype ships for Princess Cruises, inalised in May 2010. The slowdown of the US holiday market on one hand, and the huge investments' programmes still underway, on the other hand, have pushed major operators to adopt a wait-and-see policy as far as new investments are concerned. Shipbuilding No.GT CGT Euro Mil. (approx. value) Production 32 524.314 628.445 2.391 (of which for foreign account) 8 174.077 212.954 905 New Orders 1 130.000 130.779 491 (of which for foreign account) 1 130.000 130.779 491 Orderbook 47 1.247.020 1.508.906 6.227 of which for foreign account) 21 781.796 963.850 4.140 The orderbook at the end of 2009 decreased by 28% compared to end 2008 (2.090.126 cgt). Pas- senger ships (cruise and ferry) continue to qualify the country's merchant shipbuilding industry accounting for about 90% in terms of tonnage. Important remains, however, the incidence of typolo- gies such as product/chemical tankers and AHTS units. As for naval shipbuilding, the following main events have to be reported: a. the delivery of the second Horizon frigate Caio Duilio to the Italian Navy ordered within the French-Italian Horizon co-operation programme; b. the deliv ery of four patrol vessels ordered by the Iraqi Navy to Fincantieri; c. Fincantieri' s acquisition of a second leet tanker for the Indian Navy and a corvette for the United Arab Emirates Navy. Shiprepairing The year 2009 has been a positive year for this sector, both in terms of ships repaired and turn-over. All dry-docks have been booked with a 90% occupancy rate. 12 Reports of the national associations 53 CESA 2009 - 2010 Several conversions have been carried out in Genoa premises and in Fincantieri shipyards at Palermo and Trieste. There has also been a revitalisation of the off-shore market with a number of enquiries and projects to be carried out in connection with the improving of exploration activities in the Mediterranean sea. Association portfolio Assonave represents almost the totality of the Italian shipbuilding industry with 1 large company (Fincantieri), 1 medium-size company (Nuovi Cantieri Apuania), 1 Association which groups 8 small-medium yards (ANCANAP), 2 marine engine manufacturing companies (Wärtsilä Italia and Isotta Fraschini Motori), and 1 Marine Research Center (Cetena). The total amount of newbuilding yards is 17, including 2 Fincantieri yards for naval units. Moreover, Assonave groups 19 shiprepair yards and about 100 marine equipment suppliers. The total shipyards' workforce amounts to 11,790, of which: • 8,592 in merchant shipbuilding • 2,198 in naval shipbuilding • 1,000 in shiprepairing. The total employment relevant to the marine suppliers' basis - beyond the igures strictly relating to the 100 suppliers present in the Association - is of about 20,000 units. The merchant units portfolio basically includes cruise ships, ferries, mega-yachts, LPG, AHTS units and chemical/product tankers, together with some more conventional ships. The naval portfolio ranks from patrol boats and supply vessels to aircraft carriers, going through corvettes, frigates and submarines. Lithuania General economic situation The annual GDP growth rate is -1%; nominal GDP in 2009 amounted to Euro 26.75 billion. Accor- ding to the revised data, in IV quarter 2009, GDP at current prices amounted to Euro 6893,4 mil- lion and, against the same period in 2008, dropped by 12.8%, while against III quarter 2009 – by 4.6% (the changes have been estimated using a chain-linked volume indices). In IV quarter 2009, based on provisional data, negative results were observed for all business activities and non-market services. The hugest drop in the value added was observed in construc- tion (43.2%), trade, transport and communication (13.2%), inancial intermediation, real estate and 12 Reports of the national associations 54 CESA 2009 - 2010 other business services (11.6%), industry and energy (8.7%). A slower decrease in the value added was observed in public administration and defense, education, health care and social work activi- ties (1.9%) and agriculture (0.3%). A considerable reduction in demand in foreign markets and domestic consumption conditioned a decrease in both exports and imports of goods and services in IV quarter 2009, against the same period in 2008, by 8% and 18.5% respectively. Economic indicators for 2009 GDP, bn EURO (2009) 26,75 Population, m 3,33 Industrial production (%) 1.6 Inlation rate (%) 1,3 Unemployment rate (%) 13.7 Exports, m EURO 11794,8 Imports, m EURO 13072,9 Net wage and salary, EUR 463,2 Exchange rate EUR:LTL 3,4528 Persons in employment, thous. (2009) 1415,9 In 2009, the main activity of the Government of the Republic of Lithuania was addressed to the curbing of the crisis and the introduction of reforms. The key results of the Government activity last 2009 year: stabilisation of public inance, introduction of the economic promotion package, breakthrough in the energy sector; successful introduction of higher education reform, enhanced cooperation between research and business sectors; implementation of an ambitious health care system reform; guaranteed continuation of social security payments during hard times and sup- port for socially vulnerable sections of the society; introduction of a public administration reform on a systematic basis; resolute ight against corruption. In 2009, the Government of Lithuania assigned inancing for establishing of ive integrated science, studies and business centers (Valleys). Baltic valley has been developed in Klaipeda and aims at es- tablishing a nucleus of maritime knowledge economy by concentrating territorially scattered and functionally non-integrated academic marine research-oriented institutions and their divisions, to optimise institutional co-operation by means of the development of the common infrastructure, and to create conditions for a closer interrelationship of the marine research, studies, and busi- ness. Association portfolio The Lithuanian Shipbuilders and Repairers Association (LLSRA) comprises 31 companies. The largest association members are Western and Baltija shipyards. These enterprises employ about 65% of all LLSRA corporate employees and their turnover is about 80% of all LLSRA company turnover. An average of 4,200 employees are working within all LLSRA member companies. Within seven years, since the LLSRA establishment, member company business turnover has increased by 168% to EUR 235.67 million in 2009, in comparison with 2003, when it was EUR 88.05 million. The total 2009 production of metal constructions was 67,409 CGT. In 2008, LLSRA turnover was EUR 248.98 million., i.e. only 5.6% higher than the previous year. In 2007 - € 186.06 million, 12 Reports of the national associations 55 CESA 2009 - 2010 in 2006 - € 172.27 million, in 2005 - € 139.92 million, in 2004 - € 130.96 million. Each year, the LLSRA member companies export makes 85-90% of all sales. The year 2009 has been most successful for constantly expanding LLSRA largest member company Western Shipyard in its whole lifetime which it counts from 1969. The successful WSY company group, which currently brings together closely related 22 companies, activity evidences of the works carried out in 2009 that really were numerous and important. Last year turnover amounted to EUR 107.65 million. The completed metal constructions made 17,781 CGT. The most important event of 2009 – the completed wind farm and offshore service ship WINDLIFT1 – the biggest project over the lifetime of the company. This is one of the irst ships of this type also in the European shipbuil- ding history. Western Shipyard delivered to customers the upbuilt transformer platform, passen- ger and car ferry "Saaremaa 1"," Saaremaa 2", "Lifjord", ice-class ferry "Skarven". Also technically complex "Thorshovdi", "Mikal With", "Sentinel", "Dirk Diederik" and other ship modernisation was made. For example, "Thorshovdi" has been converted from container carrier to krill processing fac- tory. In 2009, Western Shipyard began the construction of an environmentally friendly gas-powered ferry; it has started with the construction project of two bulk carriers and continued other unique projects. Western Shipyard established itself well in ferries, offshore and multi-function ship con- struction business and has gained its irm market share in ship repair. The company is the irst ship industrial enterprise in the Baltic countries, engaged in the construction of the required offshore renewable energy sources facilities. The year 2009 was also successful for another LLSRA member company - Baltija shipyard, whose turnover amounted to EUR 41.46 million. The company produced 23,287 CGT metal structures. In 2009, Baltija Shipyard has successfully realised the order for European shipbuilding leaders - "STX Europe". The company produced steel blocks for the world's largest cruise liners "Oasis of the Seas" and "Allure of the Seas", which are designed according to the Genesis project. Baltija shipyard produced not only steel blocks for the world largest container carrier "Emma Mærsk", but also made huge superstructure of the vessel with the length of as much as 397 m. and the width - 56 m. The company has launched a fully modernised ishing vessel construction and realises other projects. Though the unfavourable economic situation also affected the Lithuanian ship repair and building industry, LLSRA member companies take a positive view into the future. Klaipeda port saw 121 ships for repair and modernisation in 2009. Small and medium-sized LLSRA member companies, lexibly and quickly responding to market needs, carried out the major part of the work on ships under repair in various European countries and other continents in 2009. The production of Lithuania Shipbuilders and Repairers obliges LLSRA member companies to com- pete with the best global examples, render customers increasingly higher quality services, introduce innovative technologies, make added value, develop not only ship repair and shipbuilding industries, but also total Lithuanian business. The integrated study and business centre "Baltic Valley", for the development of Lithuanian maritime sector with the programme for shipbuilding and repair, and technology improvements, started its activity in Klaipeda in 2009. The Lithuanian Shipbuilders and Repairers Association prepared the Lithuanian shipbuilding and repair industry development strategy. The Lithuanian Government has allocated additional research funding in a number of industries. 12 Reports of the national associations 56 CESA 2009 - 2010 The Netherlands Newbuilding of seagoing vessels Thanks to well illed order books and rela- tively few cancellations and delays, Dutch ship- builders in 2009 experienced another rather busy year, in terms of production. Deliveries from Dutch shipyards amounted to 176 seagoing ships, totalling 684,000 CGT - production at foreign facilities belonging to Dutch large and smaller yard groups is seen to be increasing, and foreign afiliates of Dutch yards also turned out a very respectable production. Roughly 65% of the ships produced in The Netherlands are destined for export. Deliveries of seagoing ships Number GT CGT Miscellaneous cargo and tank ships 25 127,242 167,801 Dredging material 28 62,702 121,672 Fishing vessels 2 400 2,052 General cargo ships 24 102,400 133,508 Passenger ships 19 22,531 84,988 Work boats/other vessel types 78 59,392 173,612 Total 176 374,667 683,633 In terms of sales, 2009 was a dificult year. Newbuild orders dropped more than 80% compared to 2008, in number of ships as well as in CGT. This trend parallels the developments in other shipbuil- ding nations since the start of the economic and inancial crisis in 2008. As a consequence of the order drought, the orderbook is starting to decrease – at the end of 2009, it contained orders for 226 seagoing ships (2008: 369), totalling approximately 1.2 million CGT (2008: 1.7m) and a value of nearly € 4 billion. The availability of inance is crucial for the delivery of the ships still in the orderbook as well as for reviving order intake. Dutch yards and their national shipbuilding association have intensively talked about measures that could make inance available. Other shipbuilding categories Apart from yards focusing on the production of seagoing cargo vessels and NCCVs, The Nether- lands is home to numerous yards producing specialised vessels. Inland vessel builders often rely on the import of foreign hulls, which are outitted to client's wishes at national yards – this process involves a close cooperation with many specialised equipment sup- pliers. In 2009, a total of no less than 166 inland ships have been delivered, totalling nearly 400,000 12 Reports of the national associations 57 CESA 2009 - 2010 GT. Looking forward, Dutch inland vessel builders are facing an inland shipping market with a rather severe overcapacity. Dutch superyacht builders in 2009 delivered nearly 20 vessels. The superyacht orderbook in The Netherlands is still rather healthy, with nearly 80 yachts worth over € 2.5 billion scheduled to hit the water over the next few years. Naval shipbuilding in The Netherlands, with an orderbook of some 14 vessels (small and large), was given new perspective by a new order for a Joint Logistic Support Ship for the Royal Dutch Navy. Production abroad and export are increasingly becoming key words in Dutch naval shipbuilding as well. Ship maintenance, repair and overhaul Turnover in Dutch ship MRO decreased compared to 2008, but, over all, proitability remained at healthy levels. Apart from regular maintenance and repair docking, Dutch MRO yards also specialise in complex conversions, reits and overhauls of a wide variety of vessel types. Equipment suppliers Shipbuilding in The Netherlands is closely linked with approximately 750 companies supplying ser- vices and marine equipment to national and international yards and other maritime companies. Some of these companies are independent niche players, some are afiliated to the larger Dutch shipbuilding groups, others are subsidiaries of international companies. The majority of them are SME companies. Export accounts for approximately 65% of the turnover of Dutch suppliers. Employment and turnover in the total Dutch shipbuilding cluster Employment in the total Dutch shipbuilding cluster amounted to 34,500 full time jobs in 2009. The total turnover of shipbuilders and suppliers combined was an estimated € 7.3 billion. Norway Norwegian shipyards delivered 76 ves- sels in 2009, vessels mainly serving the offshore industry. The value of the de- liveries is approx 25,6 billion NOK. The orderbook with the 25 shipyards with the main activities of building ves- sels has been substantially reduced in 2009, adding only 17 vessels to a con- tract value about 3,1 billion NOK. As usual, the main customer is an owner in the offshore business. The advanced vessels on order shall meet the high expectations in the rough and deep seas in extreme areas of the world. 12 Reports of the national associations 58 CESA 2009 - 2010 Compared to some European yards, the Norwegian yards are small in size even if they are amongst the most eficient and well equipped in the world. The large shipbuilding group STX Europe has its main ofice and 6 shipyards in Norway. Other shipyard groups are Bergen Group, Havyard Group, Kleven Maritime and Ulstein Group. A list of shipyards is available on our web. The shipyards have in total approximately 5,000 employees. In addition, there are hired personnel from different European countries. Some 400 people are busy with repair and maintenance. Throughout the history, the close cooperation between the owners, technical consultants, equip- ment suppliers and the shipyards, has resulted in the development of the advanced vessels from Norway. Through advanced ishing vessels, the demands in the North Sea oil ield called for the multipurpose offshore vessel. The design of many ships has been exported to shipyards in other countries. All told, the Norwegian shipyards consist of approximately 75 units, including small repair yards along the coastline and in the fjords of Norway. There are some larger yards, according to a Nor- wegian scale, for repair and conversion. The activity in Norway cannot be compared with the repair activity in Europe. Poland Developments in shipbuilding The Polish shipbuilding production de- creased in 2009 due to the global crisis and liquidation of the 2 biggest newbuil- ding yards in Gdynia and Szczecin, con- trolled by the State Treasury. Liquidation, decided by the Polish Government, was an implementation of the EU decision rejecting public support given to these yards. The produc- tion activity in the yards was inished by 30 June and all of not completed commercial contracts had been dissolved. Almost 9,000 employees left jobless getting enrolment to a social support programme specially invented for this case. Shipyards' assets were divided into number of packages. In Gdynia Shipyards, most of them, except the big dry dock, had been sold to different enterprises and the new activity is being slowly initiated unfortunately at a far lower scale. In contrary, main shipyard assets in Szczecin have not yet been bought and consequently there is practically no acti- vity over there. For already privatised Gda ń sk Shipyard, the EU accepted received public support being in agree- ment with the EU rules and regulations. Northern Shipyard, member of Remontowa Group, successfully continued shipbuilding produc- tion in 2009 able to ind niche segment in the market. The global crisis also affected the yard but fortunately to a lesser extent. The yard offers highly specialised ships, some of them being of a truly unique design. Gas carrier LNG/LPG/LEG "CORAL METHANE" was awarded as a RINA Signiicant 12 Reports of the national associations 59 CESA 2009 - 2010 Ship of the 2009 Year. Double ended gas fuelled car-passenger ferry "MOLDEFJORD" was awarded as a Green Ship of the 2010 Year by Informa Maritime Events – Lloyd's List. Developments in ship maintenance, repair & conversion Despite the crisis in shipping, lower number of contracts and ierce competition in repair market, the 2009 year can be seen as a relatively successful one in said conditions. All repair yards reported black igures at a total revenue of about EUR 250 mln. Developments in naval shipbuilding The Naval Shipyard joined FORUM OKR Ę TOWE in March 2010. The yard management inalized a court agreement with creditors in December 2009. Therefore, a restructuring process can be implemented now. Activity in 2009 concentrated on navy units and repairs. Quarterly statistics for full year 2009 as deined including values No. of ships cgt mln EUR* Production (2009 deliveries) 25 241.889 432 (Gdynia & Szczecin only) (6) (144.766) Orderbook as of 31.12.2009 25 129.711 360 new contracts 4 18.147 50 * Note: all igures estimations only (data from shipyards not available). Portugal General situation The Portuguese economy recorded a contraction of 2.7% in 2009, after a zero growth in 2008. This economic downturn is having a signiicant impact on jobs and unem- ployment. Imbalances existing before the crisis, notably the external deicit, have remained sizeable, even if slightly reduced, relecting low domestic savings, low productivity growth and eroded competitiveness. The current crisis has severely affected public inances, with the govern- ment deicit and the debt reaching also record highs. The policy response to the crisis has consisted mainly of the implementation of measures to stimulate the econo- my, together with the pursuit of some structural reform efforts. The iscal measures focused on public investment, social protection and support to employment, investment and exports by the private sector. At the same time, while the direct impact of the inancial crisis on the Portuguese banking sector has been contained and no credit crunch has been observed, a series of measures were implemented to strengthen inancial stability. 12 Reports of the national associations 60 CESA 2009 - 2010 Against this backdrop, the challenge is to improve competitiveness and narrow macroeconomic imbalances, which is a necessary condition for a sustained reduction of the large external deicit as well as to put the Portuguese economy on a footing of higher and steady long-term GDP growth. In the negative context, the inancial and economic crisis the world is still living will not allow a irm recovery on trade and on a need for shipping, which will relect negatively on the activity of ship- building and ship repair. This year, the shipbuilding and ship repair activities were extremely affected having the turnover recorded a contraction of 35.0% relatively to the previous year, to 182 million Euros, mainly due to the sharp downturn on shipbuilding revenues. In 2009, the Association of Portuguese Maritime Industries changed the name for Association of Naval Industries (AIN). AIN continues being an Employers Association, with the main objective of representing shipbuilding and ship repair, and a diversiied number of companies operating in related ields, notably, consulting services, equipment suppliers and maritime-harbour operators. Within this group assumes a greater importance the yards subcontractors that represented around 14% of total turnover. There is a large diversity among AIN members, in terms of dimension and technologies employed, ranging from the maintenance of the largest merchant marine ships or the construction of complex ships for both the merchant and ishing leets, as it is the case of Lisnave and Vianayards, the main- tenance of the Navy leet, up to the small units for leisure or ishing. AIN maintains the responsibility of being the Sectorial Body for shipbuilding standardisation by delegation of the Portuguese National Standardisation Body, co-ordinating the Portuguese Technical Committee for Shipbuilding and Marine Technologies. The outlook for shipbuilding and ship repair in 2010 is still uncertain. AIN has inquired his members regarding their market expectations. The employers' expectations for 2010 are negative for both shipbuilding and ship repair, relecting the uncertainty for inancial and economic crisis outcome. Shipbuilding In 2009, the Portuguese Merchant shipbuilding turnover on the largest shipbuilding yard decreased by 66% to € 30.626 thousand. This was mainly due to the cancellation of 4 contracts. The sales volume on small and medium yards registered a decrease of about 12% on their business. Vianayards is the largest Portuguese shipbuilding yard. In 2009, their turnover represented 66% of total volume of business of AIN shipbuilding members. Vianayards is integrated in a Portuguese public holding for Defence Industry, representing the turnover on building of navy vessels 15% of total shipbuilding. Vianayards still is on the way of modernising the yard and reinforcing its design ability, in order to respond to the increase on demand for building new naval vessels. In 2009, the sales for the Portuguese Navy decreased 67%, corresponding to around € 6 million. However, new contracts were signed for the Navy in 2009, namely 5 new coastal patrol vessels. Ship maintenance, repair & conversion The year 2009 marked a return to more normal market conditions for maintenance and repair, after the extremely good market enjoyed from 2005. In 2009, there was a decline in the market for ship maintenance and repair in Portugal. The turnover decreased by 15.2% to € 145.796 thousand. However, this igure still represents an annual average increase of 8% relatively to the ship repair turnover relatively to 2005. 12 Reports of the national associations 61 CESA 2009 - 2010 On the local and coastal market, there are 13 small and medium size yards, some of them still going through a process of restructuring having their sales increased by 2.3% in 2009, but they only represented 7% of the total repair market. The maintenance and repair activity at medium term view looks promising. The global economy is recovering. According the MIF World Economic Outlook, April 2010, global recovery is proceeding better than expected in many advanced economies and in most emerging and developing econo- mies. World growth is now expected to be 4¼ percent. This will encourage shipowners to continue to spend on the maintenance and repair of their vessels. Actually, despite the ongoing global economic and inancial situation, Lisnave, the largest Portuguese yard, has reported a ship repair activity in line with expectations during the irst three months of 2010, repairing 22 ships originating from 18 clients of 14 countries with the tankers contributing signiicantly to the total activity. Romania National economy & policy de velopment In 2009, the Romanian economy has a de- scending trend, the Gross Domestic Product (GDP) recorded a value of 118.4 mld Euro with an inlation rate of 4.74%; the Harmon- ised Index of Consumer Prices (HICP) was abt. 5.6% and the unemployment rate was abt. 6.3%. Regarding the GDP, the forecasts indicate an increase of 0.4% in 2010 and of about 3.5% in 2011. Romania's trade deicit narrowed to 9.74 billion Euros in 2009 from 23.51 billion Euros a year earlier. In December 2009 alone, Romania's trade deicit was 850 million Euros, compared to 1.56 billion Euros in the same month of 2008. It is estimated that this trade deicit will be kept at -6% over the GDP on a yearly basis. FOB exports during 1.01-31.12.2009 amounted to 29116.3 million euro. Compared with the cor- responding period of 2008, exports decreased with 13.7%. The difference between exports dyna- mics is due to national currency depreciation by 7.9% to 19.6% during January - December 2009 as compared to the corresponding months of 2008. According to the data published by the National Ofice of the Trade Registry, at the end of Decem- ber 2009, there were 166,289 companies registered in Romania with foreign participation in social capital, total foreign investment amounting to EUR 24.83 billion. The top of the irst ive foreign investors was led by the Netherlands, with 3,572 companies registered and a total invested capital of EUR 4.03 billion, followed by Austria with 5,582 companies and a total investment of EUR 2.95 billion, Germany with 17,073 companies and a total investment of EUR 2.69, France with 6,076 companies and an investment of EUR 2.11 billion, and Greece with 4,685 registered companies and a total investment reaching EUR 1.3 billion. 12 Reports of the national associations 62 CESA 2009 - 2010 The ship export represents 99.2% of the total production of the Romanian shipyards, thus ship- building improves the export / import balance. Introduction in national shipbuilding industry Membership: At the end of March 2010, the Romanian Shipbuilder's Association (logo ANCONAV) counted 45 members, of which 8 shipyards (STX RO Offshore Tulcea, Damen Shipyards Galati, Constanta Ship- yard, STX RO Offshore Braila, DMHI Mangalia, Severnav Drobeta Turnu Severin, Orsova Shipyard, Shipyard ATG Giurgiu) and 37 support companies (Avemar Constanta, Bureau Veritas Romania Control International SRL Galati, CAD Resource Centre Ltd. Galati, Det Norske Veritas Roma- nia SRL Constanta, Ductil Buzau, Dutch Marine Trading Design Galati, SC Edilbalk SRL Mangalia, Eekels Romania SRL Galati, En Vogue Industries SRL Tulcea, Germanischer Lloyd Romania, Green Yard Braila, Heinen si Hopman MAR SRL Galati, Helmers SRL Galati, Hidropneumatica SRL Galati, ICEPRONAV Galati, Industrial Cruman SRL Ploiesti, PA Libra SRL Galati, Liebherr Romania SRL, Lloyds Register EMEA Constanta, Marine Engineering Galati, Maritime Interior SRL Braila, Mediator Romania, Metal Group Industrie SRL, Menarom PEC Galati, Metchim SA Galati, Microplasma Con- stanta, Nasdis Galati, Omnisud Bucuresti, Only SRL Galati, Promex Braila, Retec Galati, Romlotus Galati, Sanco SRL Braila, Ship Design Group Galati, Suszi Industrial SRL Constanta, Tripomet Galati, Van der Velden Romania). Shipyards Turnover •Turnover ~ 742,5 mil EUR •Ship repair ~ 28 mil EUR •Merchant Newbuilding ~ 705 mil EUR •Naval ~ 9,5 mil EUR Shipyards Employees •Total = 8,160 •Ship repair = 230 •Merchant Newbuilding = 7,820 •Naval = 110 Products •Merchant Vessels (Tankers, Bulk Carriers, Anchor Handling Vessels, Tugs, Container Feeders, Dredgers, LPG, Offshore Supply Vessels, Yachts, Barges, Patrol Vessels, etc) •Ship repairs & ship conversions •Naval Vessels Developments in shipbuilding In 2009, the Romanian shipyards completed and delivered ships totalling 364,923 cgt. The order- book of the Romanian shipyards is expected to be 605.007 cgt at the end of 2010. Shipbuilding as a global industry is greatly affected by the current economic crisis. By the end of 2010, more than 48% of the shipbuilding capacity in Romania will face major production disruptions. 12 Reports of the national associations 63 CESA 2009 - 2010 The capability of the industry to bridge temporary employment gaps is exhausting fast and irrepa- rable structural damages could result. The Romanian shipyards will continue to give special attention to Human Resources issues by edu- cation and training, improvement of eficiency and productivity. Development in ship maintenance, repair & conversion Due to workforce shortage and reduced total number of orders, the total turnover related to ship repair & conversion activity decreased in 2009 by 56.3% when comparing with 2008. Development in naval shipbuilding The newbuilding, repairs and conversions of naval ships are mainly in the hands of the two main shipyards Damen Shipyards Galati and Constanta Shipyards. Spain Following a brisk and severe decelera- tion in activity in Spain, resulting in nega- tive GDP growth rates since mid-2008, the recession was at its worst in 2009 Q1 when GDP fell by 1.7% in quarter- on-quarter terms. In the year as a whole, output fell by 3.6%, meaning that 2009 was clearly the worst year on record in terms of economic performance in several decades. The projections for Spain envisage a gradual improvement in activity in 2010, albeit insuficient to bring annual average growth back into positive territory, with GDP posting a decline of 0.4%. In 2011, GDP growth is expected to be somewhat more dynamic, climbing at a still moderate rate of 0.8% for the year as a whole. Inlation dynamics have also changed markedly in the recent crisis. Compared with relatively high price growth rates – higher than those of the rest of the euro area – since the start of the monetary union in 1999, the Harmonised Index of Consumer Prices (HICP) fell by 0.3% on average in 2009, 0.5 pp below the rate observed in the euro area as a whole. In sum, following the sharp contraction the Spanish economy underwent in 2009, the outlook for 2010 and 2011 is one of a scenario of slow recovery and improvement, albeit not one free of ob- stacles. On the one hand, an ongoing adjustment is required of certain imbalances that built up in the upturn, the relection of which was a high level of private-sector debt, a heavy concentration of resources in the real estate sector and, as a corollary, a sizeable external deicit. These imbalances have been adjusted at differing speeds in the past two years, but their correction is not complete; ac- cordingly, they will continue to check national demand to some extent over the projection horizon. On the other hand, the need to partially withdraw the stimuli and to bring public inances back onto a path of stability will affect growth possibilities in the short run, despite the expansionary role that the monetary policy stance may be expected to play in the projection horizon, given the containment also observable in euro area inlation. 12 Reports of the national associations 64 CESA 2009 - 2010 Introduction of the national Industry UNINAVE is the Association of Spanish Shipbuilders and Shiprepairers. It was set up by thirteen newbuilding and shiprepairing companies on February 10th, 1988. Currently, UNINAVE has 23 members, six large scale yards, seventeen medium and eight small shipyards, of which eleven are devoted to repairing. The shipyards are active in merchant shipbuilding, repairs/conversions and naval shipbuilding. The employment in member companies is 2,291 in merchant ship newbuilding, about 991 in repairs and conversions, and about 2,384 in naval shipbuilding. Spanish newbuilding yards are an international reference in the design and construction of high added-value vessels, thanks to its constant commitment to innovation and technology, developing Ro-Pax, ferries, offshore platforms and FPSO's, chemical and gas carriers, dredges of all types and high standard yachts and ishing vessels and off-shore units. Spanish naval yards have an extremely wide range of products, going from sophisticated frigates to aircraft carriers, submarines, corvettes, strategic projection ships, amphibious multipurpose ships, mine hunters to the manufacture of engines, platform control systems and naval weapons. Spanish repair and conversion shipyards offer a combined capacity of 8,946 m. of berths and 4,824 m. of docks (655.85 m. in loating docks), able to accommodate vessels up to 400,000 dwt, 385.25 m. long and 66.65 m .wide. Two of the yards have installed shiplifts with a combined capacity of 19,928 tons for vessels up to 180 m. long, 30 m. wide and 36,000 dwt. Development in shipbuilding For the last years, the Spanish shipbuilding industry became an innovative industry, having built high- ly integrated very complex vessels which required a remarkable amount of scientiic knowledge as well as intelligent manufacturing technologies. The research, development and innovation (R&D&i) investment in the shipbuilding sector increased to €1.0 bn, about 10% of their annual turnover during the last four years. The Spanish shipbuilding industry's export share of more than 75% of the annual turnover relects the competitiveness of our industry in world market. The shipbuilding and shiprepairing sector has today important links with not only the rest of the maritime industry but also with other industrial and service sectors. In 2009, Spanish shipyards spent €2.4 bn on materials, equipment and services from over 1,500 suppliers. During 2009, 13 contracts were reported with 62,000 CGT, - 83% down on 2008 year's igure. New orders decreased from 75 ships with 364,000 CGT to 13 ships with 62,000 CGT, of which 12 ships with 59,700 CGT were from foreign owners. The value of new orders was 344 m€. In 2009, the deliveries were 50 ships with 287,000 CGT, - 16% down on the previous year igure. Completions decreased from 62 ships with 343,000 CGT to 50 ships with 287,000 CGT, of which 31 ships with 217,000 CGT were from foreign owners. The value of deliveries was 1,825 m€. The Spanish orderbook has sharply decreased to 115 ships with 815,000 CGT, from 153 ships with 1,053,000 CGT at the end of 2008. 12 Reports of the national associations 65 CESA 2009 - 2010 Shipbuilding data for the year 2009 No.GT CGT Euro Mil. (approx. value) Production 50 205,623 286,899 1,825 (of which for foreign account) 31 168,832 216,687 1,441 New Orders 13 28,979 61,880 344 (of which for foreign account) 12 28,484 59,725 328 Orderbook 115 581,583 815,134 5,065 of which for foreign account) 85 409,742 615,173 4,092 Developments in ship maintenance, repair and conversion The igures for shiprepair and conversion works carried out by Spanish yards in 2009 have shown a downward trend. The total turnover for 2009 amounted to 280 million Euro, mainly from cruise vessels, passenger, gas carriers and offshore repairing activities. Responding to customers' demands, Spanish repair yards have taken a step forward by gaining a reputation for work on cruise vessels, passenger and ro-ro ferries, chemical and product tankers, gas carriers (LNG and LPG) and container ships, while maintaining the former specialisation for large ishing and factory vessels, oceanographic research vessels and reefers. NAVANTIA has consolidated its position as one of the leading European gas carrier repair centres. Due to the substantial increase of gas carrier vessels, NAVANTIA has decided to concentrate most LNG work at its Cadiz – San Fernando yard complex in future. The Cadiz yard can dock vessels up to VLCC size in graving dock number 4, which is 386 m. long by 67 m. wide, allowing the larger, new generation LNG vessels to be repaired within these facilities. Developments in naval shipbuilding The second of the series of two Scorpene submarines built by the consortium NAVANTIA-DCNS, named "Tun Razak", has been delivered in Toulon (France) on 5 November 2009. The consortium and the Royal Malaysian Navy signed the contract for the construction of 2 Scorpene submarines, in which Navantia has built the aft halves and DNCS the fore halves in 2002. On 16 October, the irst Maritime Action Ship (BAM) "Meteoro" P-14 for the Spanish Navy has been launched at the NAVANTIA San Fernando-Puerto Real Shipyard. The ship is the irst of an initial series of four that NAVANTIA will build in line with the Execution Order signed on 31 July. 12 Reports of the national associations 66 CESA 2009 - 2010 United Kingdom National economy UK gross domestic product (GDP) in volume terms rose by 0.4% compared with the previous quarter. This was re- vised from a rise of 0.3% published last month. GDP in volume terms fell by 4.9% during 2009, the largest fall on record, compared with a rise of 0.5% in 2008. Shipbuilders & Shiprepairers Association Number of member companies – 144 Employment – Ne wbuild (Commercial) 200 Repair 3,000 Developments The association has had a very successful year in terms of growth and services for its members. With the help of a dedicated team, SSA has gone from strength to strength and now has over 144 members across the UK. The global inancial and economic turmoil of the last two years has not passed our industry by. But it is fair to say that the UK shipyards have been less exposed than many to the downturn in activity in the maritime industry sector. The last ive years of unprecedented activity in the merchant newbuild market, from 2004 to 2008, has ended with the world's shipowners deciding that either they do not want to order any more new ships or just simply are unable to secure the required inancing for the build slots they booked. Nonetheless, the UK commercial maritime sector continues to be signiicant to the UK economy. Many of our member yards, large and small, are concentrated on the service industry which is ship maintenance, repair and conversion and supply chain. Recognising the 'cradle to grave' aspects of caring for ships, a number of UK establishments have secured the necessary licences to perform environmentally friendly ship recycling. The UK Naval sector has seen signiicant growth, with the implementation of the 2005 Defence In- dustrial Strategy. The UK naval sector is dominated by QE2 Class aircraft carrier, Astute submarine and Type 45 Destroyer programmes run by the Ministry of Defence. These provide valuable work across our member yards both big and small which will continue as the Type 26 Frigate programme takes off. The emerging sectors for the maritime industry are the wind, wave and tidal energy sector, offering big opportunities over the next two decades and beyond. The UK is at the forefront, investing up to £75bn in offshore wind farms by 2020, and a further growth of our wave and tidal industry could attract up to £4bn per annum of investment by 2050, offering business opportunities for many parts of the maritime industry, including the exploitation and transfer of technology and knowhow from the UK's existing shipbuilding and oil and gas businesses. 12 Reports of the national associations 67 CESA 2009 - 2010 The major development in the UK for the marine industry has been the launch of the Marine Industries Strate- gic frame work by the UK government department for Business Innovation and Skills [BIS]. As co-chair of the Marine Industries Leadership Council (MILC), a joint Government and industry body, Minis- ter Ian Lucas launched the UK Marine Industries Strategic Framework along- side Alan Johnston, MILC co-chair and Managing Director of BAE Systems Surface Ships. Speaking at the event, Ian Lucas, Business Minister said: "The UK's Marine sector is a big contributor to our economy, but without industries joining up we can only get so far. Government, industry and stakeholders must all work together to maximise the sector's full potential. The challenge for the UK Marine Industries over the next ten years is to continue to build and maintain this diverse, world class sector and ensure it plays a key role in our future advanced manufacturing and low carbon economy. This framework sets the pathway to achieving this, but this vision can only become reality by the work of a committed, uniied sector." The purpose of the Marine Industries Strategic Framework document is: •To provide an overview of the industries, their importance to the UK economy and the key issues for the future. •To unite the industries and their stakeholders behind a shared vision of a globally competitive industry producing high technology products and services. To engage stakeholders in delivering an action plan to turn that vision into reality and increase market share for UK companies. 12 Reports of the national associations 68 CESA 2009 - 2010 General Assembly, Romania The CESA General Assembly 2009 was hosted by the Romanian Shipbuilders' Association (ANCO- NAV) and took place in the prestigious JW Marriott Grand Hotel in Bucharest on 28 May 2009. In this beautiful surrounding, located next to the stunning Parliament Palace, many top executives of major shipyards and national associations attended the event. 13 CESA Society 13. CESA Society 69 CESA 2009 - 2010 Annexes Annexes 70 CESA 2009 - 2010 Annex 1 Annex 1 – Statistics 2009 SHIPBUILDING IN CESA COUNTRIES DURING 2009 IN GT Orderbook Completions New orders Cancellations N° GT N° GT N° GT N° GT BULGARIA 7 128,034 4 19,354 2 11,470 5 155,700 CROATIA 30 757,635 14 498,598 8 174,640 2 29,400 DENMARK 14 555,544 9 439,799 0 0 2 184,000 FINLAND 4 335,000 3 302,400 1 12,000 0 0 FRANCE 9 255,334 13 148,423 1 182 0 0 GERMANY 106 1,869,708 54 767,008 20 42,668 31 635,425 GREECE 0 0 2 1,800 0 0 0 0 ITALY 47 1,247,020 32 524,314 1 130,000 0 0 LITHUANIA 2 9,685 2 9,685 2 6,400 0 0 NETHERLANDS 226 820,136 176 374,667 37 69,238 0 0 NORWAY 59 363,421 61 318,962 8 20,584 0 0 POLAND 25 67,087 25 279,039 4 7,699 0 0 PORTUGAL 1 8,750 3 24,527 0 0 3 11,020 ROMANIA 36 1,183,297 31 541,180 6 10,809 10 293,410 SPAIN 115 581,729 50 205,715 13 29,033 0 0 UNITED KINGDOM 4 - 2 - 0 0 0 0 TOTAL 685 8,182,380 481 4,455,471 103 514,723 53 1,308,955 Source: CESA SHIPBUILDING IN CESA COUNTRIES DURING 2009 IN CGT Orderbook Completions New orders Cancellations N° CGT N° CGT N° CGT N° CGT BULGARIA 7 74,593 4 22,892 2 13,736 5 79,857 CROATIA 30 579,337 14 308,417 8 148,358 2 60,920 DENMARK 14 274,507 9 201,876 0 0 2 61,850 FINLAND 4 289,949 3 260,674 1 15,555 0 0 FRANCE 9 273,730 13 175,635 1 966 0 0 GERMANY 106 1,933,082 54 732,974 20 68,007 31 501,033 GREECE 0 0 2 4,095 0 0 0 0 ITALY 47 1,508,906 32 628,455 1 130,779 0 0 LITHUANIA 2 16,377 2 16,377 2 9,456 0 0 NETHERLANDS 226 1,205,803 176 683,663 37 140,109 0 0 NORWAY 59 575,048 61 518,083 8 44,759 0 0 POLAND 25 129,711 25 241,889 4 18,149 0 0 PORTUGAL 1 9,106 3 28,983 0 0 3 31,917 ROMANIA 36 605,007 31 364,923 6 24,833 10 240,650 SPAIN 115 816,081 50 287,167 13 62,014 0 0 UNITED KINGDOM 4 3,456 2 2,076 0 0 0 0 TOTAL 685 8,294,693 481 4,478,180 103 676,721 53 976,227 Source: CESA 71 CESA 2009 - 2010 Annex 1 CESA TOTALS - NEW ORDERS BY SHIPTYPE N° GT % CGT % Orders placed in 2009 103 514,723 100 676,721 100 Of which for foreign account 36 131,481 25.5 323,537 47.8 Types of ships ordered in 2009 Crude Oil Tankers (double hull) 0 0 0 0 0 Product and Chemical Carriers 0 177,277 34.4 152,636 22.6 Bulk Carriers excl. Combined Carriers 0 0 0 0 0 Combined Carriers 3 10,335 2.0 15,212 2.2 General Cargo Ships 7 50,289 9.8 52,596 7.8 Reefers 0 0 0 0 0 Full Containers Ships 0 0 0 0 0 Ro-Ro Vessels 5 1,900 0.4 6,733 1.0 Car Carriers 0 0 0 0 0 LPG Carriers 0 0 0 0 0 LNG Carriers 0 0 0 0 0 Ferries 4 7,435 1.4 18,147 2.7 Passenger Ships 7 147,650 28.7 188,096 27.8 Fishing Vessels 5 3,923 0.8 7,891 1.2 Offshore Supply Vessels (incl. AHTS) 8 37,564 7.3 71,198 10.5 Other Non-Cargo Vessels 53 66,880 13.0 145,806 21.5 Cancellations reported during 2009 53 1,308,955 100 976,227 100 Of which for foreign account 31 645,690 49.3 584,965 59.9 Source: CESA WORKFORCE IN CESA COUNTRIES COUNTRY 2007 2008 2009 Total Newbuildings* Total Newbuildings* Total Newbuildings* BULGARIA 5,400 2,400 4,977 2,200 4,968 2,100 CROATIA 9,811 8,200 9,553 8,738 8,851 8,645 DENMARK*** 3,500 3,000 3,700 2,800 3,000 2,300 FINLAND 4,700 4,700 4,630 4,630 3,200 3,200 FRANCE 17,200 3,350 17,100 3,400 17,100 1,900 GERMANY 22,500 15,900 23,600 16,500 19,200 12,600 GREECE 2,434 400 2,324 - 2,487 - ITALY 12,245 8,925 12,142 8,858 11,790 8,592 LITHUANIA 5,100 2,800 4,800 3,000 4,200 2,200 NETHERLANDS 14,272 11,635 14,400 12,260 13,500 11,600 NORWAY** 6,000 5,500 5,000 4,700 5,000 4,600 POLAND 17,000 12,800 15,000 7,900 7,300 2,600 PORTUGAL 1,652 893 1,592 914 1,572 505 ROMANIA 10,800 10,700 10,100 9,350 8,160 7,820 SPAIN 7,678 2,129 6,490 2,995 5,666 2,291 UNITED KINGDOM 8,500 500 8,300 200 8,300 200 TOTAL 148,792 93,832 144,608 89,145 124,294 71,153 Source: CESA * Including new merchant and new offshore ** Onl y member yards *** Denmark - cor rected 2008 igure 72 CESA 2009 - 2010 Annex 1 CESA TOTALS - ORDERBOOK BY SHIPTYPE N° GT % CGT % Total tonnage on order book on 31.12.2009 685 8,182,380 100 8,294,693 100 Of which for foreign account 280 4,404,653 53.8 4,819,030 58.1 Types of ships according to orderbook on 31.12.2009 Crude Oil Tankers (double hull) 1 13 0 207 0 Product and Chemical Carriers 27 528,629 6.5 442,833 5.3 Bulk Carriers excl. Combined Carriers 20 1,150,649 14.1 435,441 5.2 Combined Carriers 20 89,947 1.1 120,208 1.4 General Cargo Ships 95 433,333 5.3 534,500 6.4 Reefers 0 0 0 0 0 Full Containers Ships 30 848,069 10.4 550,811 6.6 Ro-Ro Vessels 35 776,074 9.5 570,147 6.9 Car Carriers 1 40,500 0.5 25,195 0.3 LPG Carriers 5 44,924 0.5 53,574 0.6 LNG Carriers 3 104,900 1.3 99,382 1.2 Ferries 30 418,592 5.1 433,891 5.2 Passenger Ships 56 2,443,347 29.9 2,793,848 33.7 Fishing Vessels 11 16,003 0.2 43,223 0.5 Offshore Supply Vessels (incl. AHTS) 124 530,544 6.5 919,876 11.1 Other Non-Cargo Vessels 226 756,613 9.2 1,269,610 15.3 Approximate value of order book on 31.12.2009 in mEur o 36,558 Of which for foreign account in mEuro 25,194 Source: CESA CESA TOTALS - COMPLETIONS N° GT % CGT % Completed in 2009 481 4,455,471 100 4,478,180 100 Of which for foreign account 155 2,389,802 53.6 2,256,966 50.4 Types of ships completed in 2009 Crude Oil Tankers (double hull) 1 59,315 1.3 25,135 0.6 Product and Chemical Carriers 25 467,460 10.5 392,450 8.8 Bulk Carriers excl. Combined Carriers 5 319,405 7.2 118,018 2.6 Combined Carriers 11 55,702 1.3 69,207 1.5 General Cargo Ships 32 185,883 4.2 210,252 4.7 Reefers 0 0 0 0 Full Containers Ships 44 986,783 22.1 685,817 15.3 Ro-Ro Vessels 11 323,039 7.3 221,528 4.9 Car Carriers 4 197,012 4.4 115,212 2.6 LPG Carriers 6 49,107 1.1 60,656 1.4 LNG Carriers 1 10,000 0.2 16,794 0.4 Ferries 22 231,728 5.2 258,010 5.8 Passenger Ships 33 977,642 21.9 1,098,700 24.5 Fishing Vessels 13 9,096 0.2 29,730 0.7 Offshore supply vessels (incl. AHTS) 82 283,205 6.4 545,846 12.2 Other Non-Cargo Vessels 187 280,740 6.3 607,905 13.6 Approximate value of completions During 2009 in mEuro 15,669 Of which for foreign account in mEuro 8,650 Source: CESA 73 CESA 2009 - 2010 Annex 1 * estimated 2004 2005 2006 2007 2008 2009 BULGARIA N° CGT - Export Total value in mEuro - Export in mEuro - - - - 6 29 157 6 48 48 4 22 892 22 892 30 30 CROATIA N° CGT - Export Total value in mEuro - Export in mEuro 20 430 750 402 636 466 432 21 381 545 420 569 460 376 21 368 719 489 184 500 464 23 466 733 740 803 547 356 21 400 811 375 579 629 582 14 308 417 203 632 559 464 DENMARK N° CGT - Export Total value in mEuro - Export in mEuro 9 203 444 - 479* - 8 327 964 - 550* - 8 363 979 - 522 - 8 353 066 0 700 0 10 273 363 10 600 600 9 201 876 0 500 0 FINLAND N° CGT - Export Total value in mEuro - Export in mEuro 4 266 419 210 899 975 820 1 13 800 6 900 65 65 5 294 190 269 700 935 935 5 283 936 315 400 1 165 1 165 5 291 113 257 917 1 145 1 015 3 260 674 260 674 1 190 1 190 FRANCE N° CGT - Export Total value in mEuro - Export in mEuro 15 105 592 90 816 370 - 16 75 363 572 270 - 14 265 060 91 280 900 450 7 192 317 93 440 650 450 11 251 220 237 367 1 051 1 000 13 175 635 109 187 750 650 GERMANY N° CGT - Export Total value in mEuro - Export in mEuro 61 907 320 536 321 2 306 1 550 69 1 163 146 548 012 2 581 1 390 70 1 174 241 707 088 2 919 1 746 74 1 171 314 658 562 3 126 1 796 84 1 311 904 776 623 4 449 3 176 52 945 383 504 408 2 618 1 871 GREECE N° CGT - Export Total value in mEuro - Export in mEuro 1 897 897 49 49 1 894 2 982 49 49 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 4 095 4 095 11 11 ITALY N° CGT - Export Total value in mEuro - Export in mEuro 27 633 603 382 870 2 212 1 423 19 398 676 220 876 1 310 939 21 546 565 27 500 1 761 1 178 32 806 203 452 000 2 566 1 629 20 684 134 463 490 2 374 1 945 32 628 455 174 077 2 391 905 LITHUANIA* N° CGT - Export Total value in mEuro - Export in mEuro - - - - 3 16 900 14 703 54 47 2 16 377 - 63 - NETHERLANDS N° CGT - Export Total value in mEuro - Export in mEuro 114 449 710 293 780 1 050 770 100 417 643 172 080 1 150 610 236 850 637 308 052 1 574 1 061 271 1 057 941 355 561 2 152 1 474 378 1 567 815 1 307 000 3 400 2 900 176 683 663 - 1 786 - NOR WAY N° CGT - Export Total value in mEuro - Export in mEuro 34 194 583 91 507 501 - 47 289 798 49 537 991 - 68 424 562 40 637 1 764 0 15 84 024 0 2 159 0 71 572 865 162 636 1 749 490 61 518 083 159 277 2 932 - POLAND N° CGT - Export Total value in mEuro - Export in mEuro 25 448 684 448 684 607 607 30 565 973 751 686 751 751 24 494 601 693 104 765 765 30 396 514 530 279 584 424 20 330 296 328 608 511 505 25 241 889 241 889 432 432 PORTUGAL N° CGT - Export Total value in mEuro - Export in mEuro - - - 54 - 4 34 781 21 010 69* 33* 4 21 184 14 504 63 - 3 23 254 0 90 0 2 17 098 17 098 41 41 3 28 983 18 212 90 44 ROMANIA N° CGT - Export Total value in mEuro - Export in mEuro 9 93 865 93 865 134* - 18 246 915 - 331 - 71 574 456 447 704 580 461 27 262 475 312 883 410 300 28 346 979 346 979 550 550 31 364 923 364 923 482 482 SPAIN N° CGT - Export Total value in mEuro - Export in mEuro 41 376 781 290 561 1 248 1 052 52 177 516 57 782 444 230 47 226 493 64 549 665 286 64 347 753 191 313 1 050 770 64 347 513 194 852 1 022 602 50 287 167 216 687 1 825 1 441 UNITED KINGDOM N° CGT - Export Total value in mEuro - Export in mEuro - - - - - - - - 20 - 2 3 701 - 20 - 2 3 906 0 14 0 3 4 100 0 13 0 2 2 076 - 9 - CESA TOTAL N° CGT - Export Total value in mEuro - Export in mEuro 360 4 111 648 2 842 836 10 282 6 703 386 4 094 014 2 252 006 9 041 4 443 591 5 608 389 3 153 302 12 968 6 204 561 5 449 436 3 650 241 15 213 8 364 726 6 445 268 4 756 215 17 636 13 453 481 4 478 180 2 261 061 15 669 8 650 CESA COMPLETIONS 2004 - 2009 74 CESA 2009 - 2010 Annex 1 Type Coef. Order Book Completions New orders No.CGT No.CGT No.CGT Crude Oil Tankers (double hull tankers only) Under 4,000 dwt 1.85 1 207 0 0 0 0 4 - 10,000 dwt 1.3 0 0 0 0 0 0 10 - 30,000 dwt 0.85 0 0 0 0 0 0 30 - 50,000 dwt 0.7 0 0 0 0 0 0 50 - 80,000 dwt 0.55 0 0 0 0 0 0 80 - 160,000 dwt 0.45 0 0 1 25,135 0 0 160 - 250,000 dwt 0.35 0 0 0 0 0 0 250,000 dwt and over 0.3 0 0 0 0 0 0 Product Carriers Under 4,000 dwt 2.3 2 10,926 3 14,041 0 0 4 - 10,000 dwt 1.6 2 11,359 0 0 0 0 10 - 30,000 dwt 1.05 0 0 0 0 0 0 30 - 50,000 dwt 0.8 1 18,355 1 16,488 1 18,355 50 - 80,000 dwt 0.6 3 57,096 3 60,948 0 0 80,000 dwt and over 0.55 0 0 0 0 0 0 Chemical Carriers Under 4,000 dwt 2.3 1 4,278 0 0 1 4,278 4 - 10,000 dwt 1.6 4 43,108 7 22,742 3 32,559 10 - 30,000 dwt 1.05 1 13,488 0 0 3 0 30 - 50,000 dwt 0.8 7 157,234 7 155,516 2 0 50 - 80,000 dwt 0.6 6 126,989 1 24,361 4 97,444 80,000 dwt and over 0.55 0 0 0 0 0 0 Bulk Carriers (exl. Combined Carriers) Under 4,000 dwt 1.6 0 0 0 0 0 0 4 - 10,000 dwt 1.1 0 0 0 0 0 0 10 - 30,000 dwt 0.7 1 7,091 0 0 0 0 30 - 50,000 dwt 0.6 1 12,376 2 24,752 0 0 50 - 80,000 dwt 0.5 2 31,128 0 0 0 0 80 - 160,000 dwt 0.4 0 0 0 0 0 0 160,000 dwt and over 0.3 10 312,196 3 93,266 0 61,850 Combined Carriers Under 10,000 dwt 1.1 0 0 0 0 0 0 10 - 30,000 dwt 0.9 0 0 0 0 0 0 30 - 50,000 dwt 0.75 0 0 11 0 0 15,212 50 - 80,000 dwt 0.6 0 0 0 0 0 0 80 - 160,000 dwt 0.5 0 0 0 0 0 0 160,000 dwt and over 0.4 0 0 0 0 0 0 General Cargo Ships Under 4,000 dwt 1.85 0 0 2 25,088 0 0 4 - 10,000 dwt 1.35 0 0 0 0 0 0 10 - 20,000 dwt 1 7 58,463 3 38,169 2 25,632 20 - 30,000 dwt 0.85 2 32,570 0 0 0 0 30 - 50,000 dwt 0.7 82 426,141 24 0 0 0 50 - 80,000 dwt 0.75 0 0 0 0 0 0 80 - 160,000 dwt 0 0 0 0 0 0 160,000 dwt and over 0 0 0 0 0 0 Reefers Under 4,000 dwt 2.05 0 0 0 0 0 0 4 - 10,000 dwt 1.5 0 0 0 0 0 0 10,000 dwt and over 1.25 0 0 0 0 0 0 SPECIFICATION IN COMPENSATED TONNAGE OF TYPES OF SHIPS - of order book at end of DECEMBER 2009 - completed during JANUARY - DECEMBER 2009 - ordered during JANUARY - DECEMBER 2009 75 CESA 2009 - 2010 Annex 1 Full Container Ships and High Speed Liners Under 4,000 dwt 1.85 5 24,594 0 0 0 0 4 - 10,000 dwt 1.2 6 44,749 3 27,590 4 5,128 10 - 20,000 dwt 0.9 2 17,637 11 127,749 0 0 20 - 30,000 dwt 0.8 0 0 6 86,442 0 0 30 - 50,000 dwt 0.75 8 173,486 3 57,437 0 0 50,000 - 80,000 dwt 0.65 8 283,141 10 37,131 0 0 80,000 dwt and over 0 0 5 210,467 5 142,662 Ro-Ro Vessels Under 4,000 dwt 1.5 2 2,241 1 3,682 1 1,605 4 - 10,000 dwt 1.05 12 204,749 1 12,305 0 0 10 - 20,000 dwt 0.8 14 273,417 5 100,590 0 0 20 - 30,000 dwt 0.7 3 84,612 3 84,544 0 0 30,000 dwt and over 0.65 0 0 0 0 0 0 Car Carriers Under 4,000 dwt 1.1 0 0 0 0 0 0 4 - 10,000 dwt 0.75 0 0 0 0 0 0 10 - 20,000 dwt 0.65 1 25,195 2 50,662 0 0 20 - 30,000 dwt 0.55 0 0 0 0 0 0 30,000 dwt and over 0.45 0 0 0 0 0 0 LPG Carriers Under 4,000 dwt 2.05 1 5,112 1 6,857 0 0 4 - 10,000 dwt 1.6 0 0 2 20,206 0 0 10 - 20,000 dwt 1.15 2 28,390 3 28,481 0 0 20 - 30,000 dwt 0.9 0 0 0 0 5 0 30 - 50,000 dwt 0.8 0 0 0 0 1 0 50,000 dwt and over 0.7 0 0 0 0 0 0 LNG Carriers Under 4,000 dwt 1.25 0 0 0 0 0 0 4 - 10,000 dwt 1.15 3 99,382 0 0 0 0 10 - 20,000 dwt 1 0 0 0 0 0 0 20 - 30,000 dwt 0.75 0 0 0 0 0 0 30 - 50,000 dwt 0 0 0 0 0 0 50,000 dwt and over 0 0 0 0 0 0 Ferries Under 1,000 gt 3 4 9,398 3 7,710 0 0 1 - 3,000 gt 2.25 3 17,642 5 9,213 1 4,358 3 - 10,000 gt 1.65 0 0 3 27,283 0 0 10 - 20,000 gt 1.15 2 57,424 2 43,452 0 0 20,000 gt -40,000 gt 0.9 3 88,861 2 55,587 0 0 40,000 gt and over 4 186,604 2 89,119 0 0 Passenger Vessels Under 1,000 gt 6 12 46,498 3 11,167 0 0 1 - 3,000 gt 4 7 63,335 21 10,624 1 8,761 3 - 10,000 gt 3 12 101,623 0 0 0 48,556 10 - 20,000 gt 2 2 47,532 0 0 0 0 20 - 40,000 gt 1.6 2 102,253 2 106,451 0 0 40 - 60,000 gt 1.4 5 470,260 1 104,190 0 0 60,000 gt -100,000 gt 1.25 4 363,748 2 219,048 0 0 100,000 gt and over 12 1,586,069 4 562,232 1 130,779 Fishing Vessels Under 1,000 gt 4 7 8,076 5 6,585 2 6,202 1 - 3,000 gt 3 2 7,865 3 17,123 0 0 3,000 gt and over 2 2 15,759 0 0 22 0 Offshore Supply Vessels (incl. AHTS) Under 1,000 gt 35 78,862 22 48,691 2 3,971 1 - 3,000 gt 18 71,458 5 25,782 0 0 3 - 10,000 gt 24 232,218 5 47,563 1 8,467 10,000 gt and over 3 67,800 2 29,474 1 28,667 Other Non Cargo Vessels Under 1,000 gt 5 52 125,943 47 77,349 24 38,137 1 - 3,000 gt 3.2 30 184,613 7 37,373 3 14,134 3 - 10,000 gt 2 124 125,284 114 62,218 2 73,875 10,000 gt and o ver 1.5 3 94,649 1 36,238 1 15,555 Total 685 8,294,693 481 4,478,180 103 676,721 76 CESA 2009 - 2010 •Bulgarian National Association of Shipbuilding and Shiprepair 8, Drazki Str. - 9000 Varna - Bulgaria Tel: + 359 52 - 60 20 74; Fax.: + 359 52 - 63 29 63 email@example.com - www.bulnas.org •Hrvatska Brodogradnja – Jadranbrod d.d. (Croatian Shipbuilding Corporation) Avenija V. Holjevca, 20 - 10020 Zagreb - Croatia Tel: + 385 - 1 6596 959; + 385 - 1 6596 970; Fax.: + 385 - 1 6596 980; + 385 - 1 6596 985 firstname.lastname@example.com - www.hb.hr •Danish Maritime Amaliegade, 33B, 4. sal - 1256 Copenhagen K - Denmark Tel: +45 - 33 13 24 16; Fax: +45 - 33 11 10 96 email@example.com - danishmaritime.org •Association of Finnish Marine Industries Eteläranta, 10 - 00131 Helsinki - Finland Tel: +358 - 9 1923 385; Fax: +358 - 9 624 462 firstname.lastname@example.com - www.marineindustries.i •Groupement des Industries de Construction et Activités Navales 19-21 rue du Colonel Pierre Avia - 75015 Paris – France Tel: +33 - 1 47 36 80 80; Fax: +33 - 1 40 93 57 72 firstname.lastname@example.com – www.gican.asso.fr •Verband für Schiffbau und Meerestechnik e. V . Steinhöft, 11 (Slomanhaus) - 20459 Hamburg - Germany Tel: +49 - 4028 0152 0; Fax: +49 - 4028 0152 30 email@example.com - www.vsm.de •Association of Hellenic Shipbuilding and Shiprepairing Industries Akti Miaouli, 67 - 185 37 Pireaus - Greece Tel: +30 - 210 41 84 960; Fax: +30 - 210 41 84 961 email@example.com •Associazione Nazionale dell' industria Navalmeccanica Via Tevere, 1/a - 00198 Rome - Italy Tel: +39 06 84 240 400 / 84 514 229; Fax: +39 96 84 514 243 firstname.lastname@example.com - www.assonave.it •Association of Lithuanian Shipbuilders and Shiprepairers Pilies Str.4 - LT 91240 Klaip ė da - Lithuania Tel: +370 - 46 490970; Fax: +370 – 46 490971 firstname.lastname@example.com - www.llsra.lt Annex 2 Annex 2 – CESA Member Associations 77 CESA 2009 - 2010 Annex 2 •Scheepsbouw Nederland Boerhaa velaan, 40 - Postbus 138 - 2700 AC Zoetermeer - The Netherlands Tel: +31 - 79 353 11 65; Fax: +31 - 79 353 11 55 firstname.lastname@example.com - www.scheepsbouw.nl •Norsk Industri Oscars gate, 20 - PO box 7072 Majorstuen - 0306 Oslo - Norway Tel: +47 - 22 59 00 00; Fax: +47 – 22 59 00 01 email@example.com - www.norskindustri.no •Forum Okr ę towe ul. Uphagena, 23 - 80-237 Gda ń sk - Poland Tel: +48 - 58 520 7091; Fax: +48 – 58 520 7090 email@example.com - www.forumokretowe.org.pl •Associação das Indústrias Navais Rua Jorge Afonso, 31- 6º - 1600-126 Lisboa - Portugal Tel: +351 - 21 781 8770; Fax: +351 - 21 781 8779 firstname.lastname@example.com - www.ain.pt •Asociatia Nationala a Constructorilor de Nave din Romania 132, Moruzzi Street - 800223 Galati - Romania Tel: +40 - 236 307 111; Fax: +40 - 236 307 211 email@example.com - www.anconav.ro •Unión Española de Constructores Navales Cardenal Herrera Oria, 57; 2 - 28034 Madrid - Spain Tel: +34 - 91 417 04 37; Fax: +34 - 91 729 36 47 email@example.com - www.uninave.es •Shipbuilders and Shiprepairers Association Pallion Yard - Sunderland SR4 6LL - United Kingdom Tel: +44 – 191 567 8965; Fax: +44 – 191 510 0082 firstname.lastname@example.com - www.ssa.org.uk 78 CESA 2009 - 2010 Chairman and Chairman Committee Chairman Mr. Kommer Damen President of Damen Shipyards Vice-Chairmen Mr. Bernard Meyer Managing Partner of Meyer Werft Mr. Frederico Spranger CEO of LISNAVE Shipyards Honorary Chairman Mr. Corrado Antonini President of Fincantieri Secretary General Mr. Reinhard Lüken Chairmen and Directors of CESA National Associations Chairman Director Bulgaria Bulgarian National Association of Shipbuilding and Shiprepair Mr. Svetlin Stoyanov Mr. Svetlin Stoyanov Croatia Croatian Shipbuilding Corporation Mr. Niko Rai ć Mrs. Nada Braovi ć Denmark Danish Maritime Mr. Thomas S. Knudsen Mr. Thorkil Christensen Finland Association of Finnish Marine Industries Mr. Martin Landtman Mrs. Merja Salmi-Lindgren France Chambre Syndicale des Chantiers Navals Mr. Jean-Marie Poimboeuf Mr. Jean-Marie Carnet Germany Verband für Schiffbau und Meerestechnik e.V. Mr. Werner Lüken Mr. Werner Lundt Greece Association of Hellenic Shipbuilding and Shiprepairing Industries Mr. Costantinos G. Kokkalas Mr. Costantinos G. Kokkalas Italy Associazione Nazionale dell' industria Navalmeccanica Mr. Corrado Antonini Mr. Livio Marchesini Lithuania Association of Lithuanian Shipbuilders and Shiprepairers Mr. Arnoldas Šileika Mr. Algirdas Renkauskas The Netherlands Scheepsbouw Nederland Mr. Sjef van Dooremalen Mr. Martin Bloem Norway Norsk Industri Mrs. Kjersti Kleven Mr. Egil Holland Poland Zwiazek Pracodawców FORUM OKR Ę TOWE Mr. Piotr Soyka Mr. Jerzy Czuczman Portugal Associação das Indústrias Marítimas Mr. Frederico Spranger Mr. José Ventura de Sousa Romania Asociatia Nationala a Constructorilor de Navedin Mr. Radu Rusen Mr. Gelu Stan Spain Unión Española de Constructores Navales Mr. José Francisco González Viñas Mr. José Ramón López Eady United Kingdom Shipbuilders and Shiprepairers Association Mr. Alan Dickinson Mr. Ashutosh Sinha Annex 3 Annex 3 – CESA organisation 79 CESA 2009 - 2010 CESA Working Groups and Committees COREDES Chairman: Mr. Willem Laros (CESA) Secretary: Mr. Lanfranco Benedetti (CESA) Committee Members: Mr. Hotze Boonstra (WEGEMT) Mr. Matti Nallikari (STX Finland) Mr. Giovanni Caprino (Cetena) Mrs. Eva Novoa (Soermar) Mr. Johan de Jong (MARIN) Mr. Theodoras Papakonstantinou (Hellenic Shipyard) Mr. François Duthoit (DCNS) Mr. Michael Prehn (Danish Maritime)* Mr. Boris Fedorovsky (GICAN) Mr. Frank Roland (CMT)* Mr.Sergio Fonseca (ENVC)* Mr. Gvozden Rukavina (3MAJ)* Mr. Michael Goldan (Scheepsbouw Nederland) Mrs. Merja Salmi-Lindgren (AFMI)* Mr. Paolo Guglia (Fincantieri) Mr. Carlos Sánchez Lafuente (Innovamar)* Mrs. Emma Harrison (BAE Systems)* Mr. Ashutosh Sinha (SSA) Mr. Georgios Kokkalas (Elefsis)* Mr. George Smyrnakis (WEGEMT) Mr. Marnix Krikke (Scheepsbouw Nederland) Mr. Florin Spataru (Damen Shipyards Galati)* Mrs. Susana Lapique (Navantia) Mr. Yannis Tavoularis (Elefsis) Mr. Xavier Leclerq (STX France SA) Mr. Bob van de Graaf (Schelde Naval Shipbuilding) Mrs. Cecilie Lykkegaard (Danish Maritime) Mr. Leszek Wilczy ń ski (CTO)* Mr. Ralf Sören Marquardt (VSM) Mr. Vedran Žani ć (University of Zagreb) * National Contact Point Working Group on Market Monitoring Chairman: Mr. Thorkil Christensen (Danish Maritime) Secretary: Ms. Lidia Luca (CESA) Members: Mr. Gerhard Carlsson (VSM) Mr. Eero Mäkinen (STX Finland) Mr. José María Domingo Briones (Navantia) Mr. Radu Rusen (Constanta Shipyard) Mr. Boris Fedorovsky (GICAN) Mrs. Jing Shen (CESA) Mr. José Ramón López Eady (Uninave) Mr. Pascal van Kuijen (Scheepsbouw Nederland) Mr. Paolo Lotti (Fincantieri) Mrs. Vedrana Vukman (Brodotrogir Shipyard) Mr. Reinhard Lüken (CESA) Annex 3 80 CESA 2009 - 2010 Working Group on Market & Forecast Chairwoman: Mrs. Jenny Braat (Danish Maritime) Members: Mr. Dragan Badžek (Kraljevica Shipyard) Ms. Lidia Luca (CESA) Mr. Gerhard Carlsson (VSM) Mr. Knut Helge Osmundsvåg (Research Council of Norway) Mr. Thorkil H. Christensen (Danish Maritime) Mr. Thorsten Kroes (Meyer Werft) Mr. Paulino Fernández Rodríguez (Navantia) Mr. Jesús Querol (Uninave) Mr. Ireneusz Kara ś kiewicz (NED, Remontowa Group) Mr. Pascal van Kuijen (Scheepsbouw Nederland) Mr. Paolo Lotti (Fincantieri) Mr. Thomas Weigend (Meyer Werft) Working Group on Trade Issues Chairman: Mr. Fabrice Theobald (GICAN) Members: Mr. Arkadiusz Aszyk (Gda ń sk Shipyard) Mr. Paolo Lotti (Fincantieri) Mr. Thorkil H. Christensen (Danish Maritime) Ms. Lidia Luca (CESA) Mr. Sergio Fonseca (ENVC) Mr. Michael Prehn (Danish Maritime) Mr. Alexander Geisler (VSM) Mrs. Jing Shen (CESA) Working Group on Social Dialogue Chairwoman: Mrs. Jenny Braat (Danish Maritime) Secretary:Ms. Lidia Luca (CESA) Members: Mr. Enrique Calvet Chambon (Uninave) Mr. José Pimentel das Neves (ENVC) Mr. Sergio Fonseca (ENVC) Mr. Christian Schilling (VSM) Mr. Nick Granger (SMRC) Mr. Pierfrancesco Tartarelli (Fincantieri) Mr. Emmanuel Lavergne (DCNS) Mr. Fabrice Theobald (GICAN) Mr. Christophe Mabit (STX France SA) Technical Advisory Committee Chairman: Mr. Willem Laros (CESA) Secretary:Mr. Lanfranco Benedetti (CESA) Members: Mr. Marijan Antonja (Uljanik Shipyard) Mr. Ralf Sören Marquardt (CESA representative at IMO) Mr. Michael Prehn (Danish Maritime) Mr. Michael Prehn (Danish Maritime) Mr. Boris Fedorovsky (GICAN) Mr. Sieger Sakko (Scheepsbouw Nederland) Mr. Nenad Flesch (Brodotrogir Shipyard) Mrs. Jing Shen (CESA) Mr. Nick Granger (SMRC) Mr. Frederico Spranger (Lisnave Shipyard) Mr. José Ramón López Eady (Uninave) Mr. Lorka Pavleti ć (3. Maj Shipyard) Mr. Alessandro Maccari (Fincantieri) Mr. Thomas Witolla (Meyer Werft) Mr. Eero Mäkinen (STX Finland) Annex 3 81 CESA 2009 - 2010 Annex 3 Ship Maintenance, Repair and Conversion Group Chairman: Mr. Werner Lüken (Lloydwerft) Vice-Chairman: Mr. Frederico Spranger (Lisnave Shipyard) Secretary:Mr. Nick Granger Members: Mr. Francisco Arderius (Unión Naval Barcelona) Mr. Hans-Michael Meissner (Blohm + Voss Repair) Mr. Lanfranco Benedetti (CESA) Mr. Peter Moore (Malta Shipyard) Mr. Vito Busalacchi (Fincantieri) Mr. Rüdiger Pallentin (Lloydwerft) Mr. Marko Domjan (V. Lenac Shipyard) Mr. Ashutosh Sinha (SSA) Mr. Alexander Geisler (VSM) Mr. Heikki Sipilä (STX Finland) Mr. José Ramón López Eady (Uninave) Mr. Fabrice Theobald (GICAN) Ms. Lidia Luca (CESA) Naval Yard Group Chairman: Mr. Corrado Antonini (Fincantieri) Members: Mr. Sylvain de Mullenheim (DCNS) Mr. Paolo Lotti (Fincantieri) Mr. Sergio Fonseca (ENVC) Mrs. Merja Salmi-Lindgren (AFMI) Mr. Nick Granger (SSA) Mr. Ton Rietdijk (Merwede Shipyard) Mr. Egil Holland (Norsk Industri) Mr. Philippe Riot (DCNS) Mr. Roman Krai ń ski (Naval Shipyard Gdynia) Mr. Christian Stuve (Thyssenkrupp Marine Systems) Mr. Živoje Krstulovi ć -Opara (Brodosplit Shipyard) Mr. George Thompson (BAE Systems) Mr. Willem Laros (CESA) Mr. Hein van Ameijden (Schelde Naval Shipbuilding) CESA Secretariat Secretary General Mr. Reinhard Lüken Technical Director Mr. Lanfranco Benedetti Policy Advisers Mr. Willem Laros Mrs. Jing Shen Assistant Policy Adviser Ms. Lidia Luca Financial Oficer Mrs. Véronique Verhoeven Ofice Manager Mrs. Delphine Fagot 82 CESA 2009 - 2010 ASD European Aerospace and Defence Industry Association AWES Association of European Shipbuilders and Shiprepairers CANSI China Association of the National Shipbuilding Industry CASMARE Coordination Action to maintain and further develop a Sustainable MAritime Research in Europe CCNR Central Commission for the Navigation of the Rhine CESA Community of European Shipyards' Associations CESS Committee for Expertise of Shipbuilding Speciics CGT Compensated Gross Tonnage COREDES Committee for Research and Development in European Shipbuilding (the R&D Working Group of CESA) CSERC Shipbuilding Economy Research Centre of China CSIC China Shipbuilding Industry Corporation CSSC China State Shipbuilding Corporation DE IMO Sub-Committee "Ship Design and Equipment" DG COMP EC Directorate-General for Competition DG EMPL EC Directorate-General for Employment, Social Affairs and Equal Opportunities DG ENTR EC Directorate-General for Enterprise and Industry DG RTD EC Directorate-General for Research DG TRADE EC Directorate-General for Trade DG TREN EC Directorate-General for Energy and Transport DWT Dead Weight Tonnage EC European Commission ECSA European Community Shipowners' Association EEIG European Economic Interest Grouping EMAR²RES Support action to initiate cooperation between the Communities of European MARine and MARitime REsearch and Science EMEC European Marine Equipment Council EMECRID EMEC RDI working group EMF European Metalworkers Federation EMSA European Maritime Safety Agency EMSA DH HLP High Level Panel on Double Hull Tankers ERAMAR European Maritime Research Area ERASTAR European Research Area Thematic Network for the Shipbuilding Technology Applied Research ESC European Shippers' Council ESDP European Security and Defence Policy ESPO European Sea Ports Organisation ETA European Tug-owners Association ETF European Transport Workers' Federation EU European Union EURACS European Association for Classiication Societies FP EU Framework Programme for Research & Development FPSO Floating Production Storage and Ofloading Annex 4 – Glossary Annex 4 83 CESA 2009 - 2010 Annex 4 FSU Floating Storage Unit GBS Goal-based Standards GDP Gross Domestic Product GT Gross Tonnage IACS International Association of Classiication Societies ICS International Chamber of Shipping IMO International Maritime Organization INTERCARGO International Association of Dry Cargo Shipowners INTERSHIP Integrated Collaborative Design and Production of Cruise Vessels, Passenger Ships and RoPax INTERTANKO International Association of Independent Tanker Owners IP Integrated Project on R&D IPO Initial Public Offering IPR Intellectual Property Rights ISM International Safety Management Code ISPS International Ship and Port Facility Security Code JECKU Japanese, European, Chinese, Korean, US - Top Executive Meeting KSA Korea Shipbuilders' Association LNG Liqueied Natural Gas LPG Liqueied Petroleum Gas MARPOL International Convention for the Prevention of Pollution from Ships MEPC Marine Environment Protection Committee of the IMO MIF Maritime Industry Forum MSC Maritime Safety Committee of the IMO NGO Non-Governmental Organization OCIMF Oil Companies International Marine Forum OECD Organisation for Economic Co-operation and Development P&I Protection and Indemnity R&D Research & Development RDI Research, Development and Innovation SAJ Shipbuilding Association of Japan SCM WTO Agreement on Subsidies and Countervailing Measures SME Small and Medium Enterprise SNG OECD Special Negotiating Group SOLAS IMO Convention for the Safety of Life at Sea TAC Technical Advisory Committee TDM Temporary Defensive Mechanism TEU Twenty-foot Equivalent Unit (i.e. standard container) VDR Voyage Data Recorder WG Working Group WTO World Trade Organisation 84 CESA 2009 - 2010 Annex 5 - Picture references* Page 1 Courtesy of Damen Shipyards Page 5 Cour tesy of Ulstein Group Page 11 Cour tesy of Fincantieri Page 12 Cour tesy of Basque Maritime Forum Page 13 Cour tesy of OECD Page 15 Cour tesy of VSM Page 16 Cour tesy of STX Europe Page 16 Cour tesy of Network of Excellence Visions Page 19 Cour tesy of Norsk Industri/ Fiskerstrand Yard AS Page 20 Cour tesy of IHC Merwede Page 23 Cour tesy of DCNS Group Page 25 Cour tesy of BAE Systems Page 26 Cour tesy of Lisnave Shipyard Page 29 Cour tesy of SMRC Group Page 30 Cour tesy of BAE Systems Page 31 Cour tesy of Flensburger Schiffbau Gesellschaft Page 31 Cour tesy of Austrian Marine Equipment Manufacturers Page 32 Cour tesy of EC – DG Maritime Affairs & Fisheries Page 33 Cour tesy of University of Liège (Anast) Page 35 Cour tesy of European Wind Energy Association Page 36 Cour tesy of STX Finland Page 40 Cour tesy of BULNAS Page 42 Cour tesy of Brodosplit Shipyard Page 45 Cour tesy of Danish Maritime Page 46 Cour tesy of STX Finland Page 47 Cour tesy of Constructions Mécaniques de Normandie Page 48 Cour tesy of Meyer Werft Page 49 Cour tesy of EENB Page 51 Cour tesy of Fincantieri Page 53 Cour tesy of LLSRA/Western Shipyard Page 56 Cour tesy of Holland Shipbuilding Association/Peters Shipyard Page 57 Cour tesy of Norsk Industri/Kleven Maritime Page 58 Cour tesy of Forum Okr ę towe Page 59 Cour tesy of Lisnave Shipyard Page 61 Cour tesy of ANCONAV/Damen Shipyards Galati Page 63 Cour tesy of Unión Naval Barcelona Page 66 Cour tesy of BAE Systems Page 68 Cour tesy of ANCONAV *Image/photo courtesy of all above mentioned companies Annex 5 85 CESA 2009 - 2010 Ships made in Europe © 2010 by CESA Community of European Shipyards' Associations Rue Marie de Bourgogne 52-54 B-1000 Brussels, Belgium Graphic Design: www.creatin.be tel.: +32 2 230 2791 fax.: +32 2 230 4332 email@example.com www.cesa.eu tel.: +32 2 230 2791 fax.: +32 2 230 4332 email@example.com www.cesa.eu Community of European Shipyards' Associations Rue Marie de Bourgogne 52-54 1000 Brussels, Belgium CESA ANNUAL REPORT 2009-2010