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French orders to foreign shipyards

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The Asian challenge is clearly felt in this country, whose<br />

<strong>shipyards</strong> still produce many standard vessels such as<br />

containerships. The country has already seen its market<br />

share fall from 14 <strong>to</strong> 10%. Worse yet, German <strong>shipyards</strong><br />

that may take advantage of the dynamism of shipping<br />

companies operating in the post-Panamax containership<br />

sec<strong>to</strong>r, are having trouble getting <strong>orders</strong>.<br />

This obliges them <strong>to</strong> pursue other orientations such as<br />

ro-pax vessels and cruiseships. Aker MTW has signed a<br />

major order for two 40,000 gt cruiseships for the<br />

German subsidiary of P&O.<br />

Italy<br />

Italy’s orderbook of 1.93 million gt in September 1999<br />

ties with Germany this year.<br />

There are three dominant vessel types being built in Italy<br />

this year:<br />

• Cruiseships (49%).<br />

• Ro-pax vessels (20%).<br />

• Chemical carriers (18%).<br />

The relatively good performance of Italian shipbuilding<br />

acitvity barely hides the difficulties that its <strong>shipyards</strong> must<br />

face, even domestic shipowners are looking away from them<br />

more and more. This implicates not only standard vessels,<br />

which several years ago were still built in the country, but<br />

also more specialised ships. Moby Lines has ordered three<br />

ferries from Daewoo and Lloyd Sardegna placed an order<br />

with the Polish shipyard Szczecin for two ro-pax vessels.<br />

State-owned <strong>shipyards</strong> have also run in<strong>to</strong> major financial<br />

difficulties. Fincantieri lost money in 1998 and 1999 and<br />

hopes <strong>to</strong> redress by 2001. As such, its position as cruiseship<br />

leader is not full insurance against financial failure.<br />

Privately owned <strong>shipyards</strong> are doing no better. SEC, in<br />

Viarreggio, encountered major financial difficulties following<br />

the cancellation of four ro-ro ships out of five in 1995.<br />

This brings on bankruptcy <strong>to</strong> the Ferrari yard, which built<br />

the hulls.<br />

With this situation as a backdrop the Italian government<br />

is seeking <strong>to</strong> privatise through acquisition of the three large<br />

<strong>shipyards</strong>, Fincantieri, INMA and Apuania. INMA was sold<br />

<strong>to</strong> an Italian-Argentinean inves<strong>to</strong>r that may likewise be<br />

interested in Apuania. However, the government may not<br />

bail out Fincantieri without breaching EU regulations, which<br />

forces its bank credi<strong>to</strong>rs <strong>to</strong> convert their debts in<strong>to</strong> assets.<br />

Spain<br />

Spanish <strong>shipyards</strong> are also encountering enormous<br />

difficulties. They have lost their position as world leader<br />

in the ro-pax vessels market <strong>to</strong> Germany, dropping <strong>to</strong><br />

the third position with only 14% of the market in the<br />

third quarter of 1999, compared <strong>to</strong> 33% a year before.<br />

Most domestic production is still centred on shuttle<br />

S<strong>to</strong>lt Span<br />

22,460 dwt,<br />

blt 1998<br />

by Juliana,<br />

owned<br />

by S<strong>to</strong>lt Nielsen<br />

T h e s h i p b u i l d i n g m a r k e t<br />

S H I P P I N G A N D S H I P B U I L D I N G M A R K E T S 2 0 0 0<br />

17

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