What s next? Building sophisticated vessels, LNG carriers?

Transcription

1 The Shipbuilding Industry Innovation in action Exciting new ideas in the Turkish Shipbuilding Industry What s next? Building sophisticated vessels, LNG carriers? What is the competitiveness of Turkish yards in the present situation of world wide shipbuilding? How will it develop after the crisis? presented by Metin Düzgit, Managing Director and Board Member of Düzgit Group at Mare Forum Istanbul event on 22 March 2011

2 Before What s Next?, the recent past World Shipbuilding Output data: In 1997, according to: Numbers: Asia (60%) Europe (32%) Brazil+US ( 6%) DWT: Asia (86%) Europe (13%) Brazil+US ( 1%) CGT: Asia (68%) Europe (28%) Brazil+US ( 3%) In 2011, according to: Numbers: Asia (88%) Europe ( 9%) Brazil+US ( 2%) DWT: Asia (97%) Europe ( 2%) Brazil+US ( 1%) CGT: Asia (92%) Europe ( 6%) Brazil+US ( 2%) Value: Asia (91%) Europe ( 7%) Brazil+US ( 2%) Source (Clarkson Research Services)

3 Before What s Next?, the recent past Place of Turkish Shipbuilding within Europe, according to: Deliveries: DWT: 1997 (11th) 2007 (3rd), 2008 (2nd), 2009 (1st) Number: 1997 (7th) 2009 (1st) CGT: 1997 (10th) 2007 (2nd), 2008 (2nd), 2009 (1st) Value: 2009 (6th) Orderbook: DWT: 1997 (9th) (1st) Number: 1997 (7th) 2009 (2nd) CGT: 1997 (11th) 2007 (2nd), 2008 (2nd), 2009 (3rd) Value: 2009 (4th) Source (Clarkson Research Services)

4 Before What s Next?, the recent past What was mainly built between ? (in numbers) %48 Chemical / Oil Tankers av dwt ( dwt) %19 Tugboats av. 285grt (73-730grt) %9 General Cargo Vessels av dwt ( dwt) %8 Containership av. 900TEU ( TEU) %4 MPP Vessels av dwt ( dwt) %2 Ferry + RoPax av grt ( grt) %2 Fishing Vessels av grt ( grt) %2 Bulk Carriers av dwt ( dwt) %2 Offshore Vessels av grt ( grt) Source (Lloyd s List Intelligence, Informa Plc)

5 Before What s Next?, the recent past Why they were the trend in Turkish shipbuilding? %48 Chemical / Oil Tankers DH Req, IMO Req, market dynamics %19 Tugboats Turkish Port Privat., Old World Fleet %9 General Cargo Vessels Cust. Turkish fleet, renewal+additions %8 Containership Several Turkish Owners + Operators %4 MPP Vessels GC Owners switching to Cont. Car.Cap. %2 Ferry + RoPax Local Operator IDO requirements %2 Fishing Vessels from Hull Builder to Turnkey Delivery %2 Bulk Carriers brave initiatives supp. with market dyn. %2 Offshore Vessels from Hull Builder to Turnkey Delivery

6 Before What s Next?, the recent past What helped Turkish shipbuilding rise in the recent past? Brave Initiator Shipowners Stable Turkish Economy and Local Banks getting into the game A supportive government authority Relatively cheaper workforce than Europe but still building within Europe European yards moving out/made to move out of the game Continuously booming world economy filling all shipyards worldwide Project management flexibility Increased credibility

7 What s next? Building sophisticated vessels, LNG carriers? What s next? Relatively larger Turkish owned fleet, will it also help local shipbuilding? Relatively better Turkish economy but reluctant banking sector globally A supportive government? (KGF, VAT and Tax issues, subcontracting, etc.) EU: Best Customer but Worst Hit Economy post-lehman Brothers European yards moving out of the game further German, Croatian, Polish, Spanish, Italian, Danish, Greek examples Slowly recovering world economy not enough to fill all shipyards worldwide Turks are still flexible on project management but they are not the only ones Continuing credibility Reality: Not enough space for all in Turkish Shipbuilding The customer no longer comes to your door Technical & Financial capacity has a key role at Turnkey projects Pricing is very tough under low profit margins (overshoot, undershoot?)

8 What s next? Building sophisticated vessels, LNG carriers? Tanker Orderbook coming to an end in Beg-Mid 2012 Opportunities arise as European yards further move out Small size tankers (St.Steel Tank, Bunker, Bitumen, LPG types) Offshore industry slowly kicking-in (AHTSs, PSVs, SSVs, Crew Supply) New concepts & prototypes (LNG/Dual fuel, new designs for efficiency) Small ferries Other Tugboat requirements from developing economies Fleet renewal of Turkish/Med Coastal General Cargo Fleet Fleet renewal potential of Fishing/Trawler Vessels (av. age is 29years) Naval projects (Patrol Boats, SAR Boats, FACs, Supply/Support Ships) Turkish, Middle East and African markets Early for? LNG Carriers, bigger Ferries, Cruiseships, Offshore Platforms Difficult to Compete with FE? Larger Vessels (Bulkers, Tankers, Containers)

9 What is the competitiveness of Turkish yards in the present situation of world wide shipbuilding? How will it develop after the crisis? Strengths Brave Shipowners/Yard Owners Flexibility at Project Manag. Brand in Tankers & Tugs Past Credibility/ProvYards+Desg Stronger Banking sector locally Close distance to Europe Weaknesses Lack of Capital Lack of Eximbank Buyers Credit Productivity Issues Rel. less local suppliers of SB Smaller facilities No protective ind. like US, Brazil Opportunities Closing European yards Strategic location & Repair alternative Turkish/Med Coastal GC Fleet renew. Tanker Orderbook coming to end Tugboat fleet renewal and expansion at developing world Booming Offshore Industry? Threats Too many shipyards globally competition from FE mainly China not improving or nonstableworld Economy hence the Trade non-supportive gov. post-june 11 elections Appreciating Turkish Lira

10 THANK YOU FOR LISTENING presented by Metin Düzgit, Managing Director and Board Member of Düzgit Group at Mare Forum Istanbul event on 22nd March 2011