ANNUAL REPORT - Marine Institute Open Access Repository

Marine Institute Annual Report 2008
Irish Maritime Development Office (IMDO)
Director’s Statement
The perfect economic storm that appeared
on the horizon during the last quarter of
2007 eventually hit Ireland’s shores in 2008.
The ensuing tidal wave of bad news brought
to an end the longest period of sustained
economic expansion and growth in the
history of the State. The resulting market
conditions provided a stern test for Irishbased
shipping companies active in the
maritime cluster.
In its own right, the Irish shipping market is a very reliable barometer of
activity in the real economy, with a strong correlation between GDP and
shipping activity. A problem that appeared remote and specific to the
US housing market, spread sector by sector and economy by economy,
taking down with it major blue chip firms that had previously seemed
impervious to most market shocks. The first signs of a slowdown in Irish
economic activity became apparent during last quarter 2007 when
shipping volumes started to show signs of weakness. This steady decline
then became evident elsewhere in the economy and, by the end of
second quarter of 2008, Ireland eventually slipped into recession.
Our initial estimates for the full year in 2008 indicate that the market
shrank by 5% in roll on/roll off (ro/ro) trades and by approximately 10%
in load on/load off (lo/lo) container routes, while bulk volumes declined
by about 5%t for the year. The IMDO will publish a full analysis of 2008
trends and developments in the Irish and Global shipping markets in April
2009, with its 6th Annual Maritime Transport Economist bulletin.
While the full year picture looks particularly gloomy there were still
some room for optimism with several notable developments during
2008, including significant fleet expansion and also our hosting of two
important International conferences.
Mr. Glenn Murphy
Director: Irish Maritime Development Office (IMDO)
Focus on Business Development
After the longest ‘Bull Run’ in its history, the global shipping markets’
five-year party ended abruptly in 2008. In spite of the difficult global
conditions, the IMDO pursued more than 45 development projects which
included supporting new investment by foreign groups into Ireland,
assisting the creation of new shipping funds while also supporting Irish
companies to win new contracts in overseas markets.
In June, 7 Irish-based shipping companies, assisted by IMDO, announced
total investments in new and second-hand vessels of just over €635
million. In the first six months of 2008, 21 new and second-hand vessels
had already been acquired, with a further 27 vessels expected to be
delivered over the next 2 years, most of which will be newly built. The
investment should assist in sustaining the existing onshore employment
of some 300 people in Ireland. By the end of 2008, 21 companies had
elected to Irish Tonnage Tax regime with a further 9 applications pending
at the beginning of 2009.
The current global and economic downturn are likely to see international
shipping groups continue to consolidate and seek locations that provide
a stable and cost efficient operating base. The IMDO believe that Ireland is
extremely well positioned to capitalise on this current market downturn.
Indications are positive that if a sustained effort is made to continue to
target and support these developments, Ireland is well positioned to
continue to attract and secure fresh investment into its international
maritime services sector.
The IMDO also provided business direct support to two foreign companies
that established new shipping lines between Ireland and Continental
Europe in 2008.
Supporting Education Development
The IMDO manages the administration the government’s Seafarer
Training Grant scheme. In 2008, more than 65 cadet students benefited
from seagoing training payments and company support. A further 14
graduate engineering cadets were provided with funding that enabled
them to complete their OOW Engineering degrees. The office also
provided direct funding support for the upskilling of 20 qualified Irish
seafarers to gain higher certificates of professional competency. In
2008 the office also agreed to provide direct financial support to the
establishment of NMCI services. We hope this initiative will support
additional third party training at the College while also maximising its
overall utility potential.
Last year the IMDO partnered the Institute of Chartered Shipbrokers (ICS)
to establish a new lectureship program which was held at DCU in Dublin.
As a result of this latest initiative, the ICS has confirmed record numbers
of students registered to undertake exams in 2009.
The Follow the Fleet program continued to grow with 150 schools and
9,000 students around the country participating in the programme.
We aim to double the numbers of schools participating in the program
in 2009.
10