Nanogemi Kitaplik-Cesa Annual Report 2010-2011

ANNUAL REPORT 2010-2011
Foreword
The global order volume for new ships has started to recover. In 2010, orders at European yards increased almost fivefold compared to 2009. Also the volume of ships delivered increased slightly while turnover grew by 20%. Despite these positive figures, still a weak demand as well as structural imbalances in the global market with unprecedented overcapacities continue to be a source of deep concern. The coming two years will remain very difficult for the industry. Only a few yards have been able to secure healthy orderbooks for 2012 and beyond. Consequently, the employment impact resulting from the demand collapse from 2008 and 2009 will hit the European shipbuilding industry mainly in 2011 and 2012. Despite the current struggle, the European shipbuilding industry is convinced that medium-longterm prospects for the sector are bright. The use of the seas and oceans will significantly diversify in the coming decades. Based on their unmatched engineering competence, flexibility and innovation tradition, European shipyards are well equipped to supply highly specialised vessels to existing and new growth markets such as off-shore production of fossil and renewable energy, security and defence, ocean tourism, deep sea mining and many others. The new push for environmentfriendly maritime applications will boost business opportunities. Relevant system suppliers and ship repair and conversion yards will help the existing fleet to up-grade performance. New optimised vessels often offer fuel savings of 30% and more, thus providing good reasons to consider accelerated replacement investments. The maritime engineering and manufacturing industry will continue to be a growth market. The European industry must adapt to a rapidly changing business environment. The Asian maritime dominance, which began in shipbuilding, is spreading to all business segments. Local content requirements are attracting more and more the production of marine equipment. The collapsed ship financing market is slowly recovering. However, in the meantime, Asian banks have stepped in and will continue to expand their market share. It comes as no surprise that China is making best use of the surplus yard capacity and surplus tonnage to take care of their transportation needs. As China has been the biggest source of cargo volume growth, their domestically built ships can be quite sure to always have some work to do. The European maritime industries in all segments are feeling the pinch. A business as usual strategy will, in future, no longer succeed. It is high time, to close the ranks in the European business community and to define new ways making better use of the maritime excellence that Europe hosts in unmatched quality and quantity.
Brussels, August 2011
CESA 2010 - 2011
Foreword
Bernard Meyer CESA Chairman
CESA represents the shipyards in 17 European countries and covers 99% of the EU shipbuilding production and more than 85% of wider geographical Europe. European shipyards build, maintain, repair and convert complex ships and marine hardware for various commercial activities at sea, as well as naval vessels. With a total turnover of more than 30 bn EUR, CESA members provide more than 100,000 direct jobs for highly skilled employees, with a total employment effect of approximately 500,000.
CESA 2010 - 2011
Index
1. Market development 2. Ship financing market 3. LeaderSHIP 2015 4. International relations 5. Research, development & innovation 6. Safety & environment 7. Social dialogue 8. Ship maintenance, repair & conversion sector 9. Naval sector 10. Renewable off-shore energy 11. Intellectual property rights 12. Reports of the National Associations 13. CESA Society
4 11 13 14 17 23 28 31 34 35 37 38 69
Annex 1: Statistics 2010 Annex 2: CESA Member Associations Annex 3: CESA internal Annex 4: Glossary Annex 5: Picture references
71 77 79 84 86 Index
CESA 2010 - 2011
1. Market development
Introduction
The global shipbuilding industry supplies the most essential tool for the world economy to conduct global trade. Without ships, less than 10% of global trade as we know it would take place. Consequently, as long as the world economy grows, the shipbuilding market will remain a growth sector.
Accelerated tonnage replacement towards more efficiency could reduce the supply and demand imbalance.
Chinas rise in the output of manufactured goods as well as the need to imported energy and raw materials has fuelled the unprecedented boom which peaked in 2007. In shipbuilding, this rise accelerated significantly over the past decade, as the chart below depicts.The plan to become the largest shipbuilding nation in the world by 2015 was announced in Beijing in 2005. The goal was reached in 2010, in half the time foreseen.
Massive Capacities Built Up (Production in CGT)

*
Others
1
* CESA membership
1990
2000
2010
Such a fast and forceful rise has brought supply and demand out of balance. Also shipping markets are negatively impacted as too much new tonnage is entering the market. It will take considerable time to bring oversupply down and return to a healthy and sustainable level of business activities. Market development With the outlook for meagre earnings in the coming few years, cost considerations are gaining additional importance. For the shipbuilding industry, this is a helpful trend because operating costs at time of increasing fuel prices give good reason to advance tonnage replacement provided substantial jumps in fuel efficiency can be obtained. Already the increased ordering activity for containerships at the beginning of 2011 can be linked to such concepts. With 40% higher efficiency, the new vessels will be able to operate profitably at freight rates insufficient to cover operating costs of older vessels. A change in mind-set, taking much more consideration to full life-cycle costs, has started and will certainly see many followers in the future.
CESA 2010 - 2011
Source: LR- Fairplay data
World market
During 2010, the seaborne trade recovered the ground lost in 2009 and certain segments saw significant improvements in demand for shipping services. Demand across complex and specialised activities at sea also picked up. As the consumer confidence started to restore, demand for merchandised goods picked up. Raw materials and bulk cargo was up in the market and offered some relief to bulk vessels owners. Slow and fragile, but the recovery in the maritime sector is underway.
World Commercial Shipbuilding Supply and Demand

new orders
90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0
completions
2011- based on planned deliveries
1,000 CGT
H1 H1
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011 based on H1
One of the first positive signs came from liner shipping companies which started to report returning to black figures after the losses suffered a year ago. Control of the capacity through lay-ups and slow-steaming helped to improve the earning from the low levels of 2009. At the middle of 2010, several owners were already suggesting appetite for ordering new ships. Overall demand for new tonnage during the year recovered from the very low 2009 baseline. Global new orders reached 38.5Mln CGT in 2010, compared to 16.5Mln CGT a year ago.
Source: CESA based on data from IHS Fairplay
World Commercial Shipbuilding Activity

200.000
orderbook
new orders
completion
175.000
150.000
125.000 1.000 CGT

100.000
75.000
50.000
25.000
0 orderbook new orders completions
1998 36.595 18.379 18.244
1999 37.513 18.926 18.241
2000 45.881 29.431 20.346
2001 48.271 23.341 20.187
2002 48.946 20.471 21.396
2003 70.806 41.705 22.824
2004 92.800 45.128 25.461
2005 107.200 39.588 29.353
2006 138.000 57.315 34.123
2007 183.740 85.277 34.640
2008 194.166 42.953 41.873
2009 156.200 16.554 44.401
2010 128.013 38.581 51.573
H1 2011 126.802 17.248 26.406
CESA 2010 - 2011
Market development
Still, the future demand for cargo carrying ships remains uncertain as cargo growth is not enough to balance the fleet oversupply resulting mainly from the exaggerated order boom before the economic crisis. The global orderbook is still big compared to historical figures, standing at 128Mln CGT. The production capacity, particularly in several Asian countries, was expanded so forcefully that todays world shipbuilding industry could build nearly twice the ships needed. In 2010, 3,706 ships totaling a record of 51.5Mln CGT were delivered, an increase of 16% compared to 2009. Also this year, further growth is likely.
M. Dwt Fleet 1400 1200 1000 800 600 400 200
Seaborne Trade Volumes
Bill. Tons Cargo 11 10 9 8 7 6 5 4 3 2 1 0
Sea Trade Trade scenario World Fleet (Dwt)
Shipbuilding associations in China and Japan acknowledged that the production overcapacity could remain at a level double the newbuilding requirement. A downward capacity adjustment is hardly seen. Therefore, the global shipbuilding industry will continue to face an World completions by shiptype overcapacity crisis. Its consequences in 2010 (outer circle) are globally felt up- and down-stream, across nearly all maritime sectors. compared to 2009 (inner circle) Despite the 5.1Mln CGT cancellations of contracts for bulk carriers, the deliveries of this shiptype increased significantly. Within only one year, the production doubled, as the graph shows.
Bulk Carriers 18,398 9,715 4,547 1,498 4,342 12,709 Non Cargo Vessels 4,609 Containerships 7,942 Other/General Cargo Ships 5,574 4,793
1963 1965 1967 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013
Source: Trade & Fleet- Clarksons; Trade Scenario CESA
6,796
Market development
Gastankers 2,813 Ferries/Pass. Ships 1,890
Tankers 10,347
CESA 2010 - 2011
Deliveries of containerships and other general cargo ships also accelerated compared to last year while tanker and gas tanker deliveries reduced. Slight increase of delivered tonnage was reported also for the non-cargo and passenger ships segments, but the market remains healthy and without indication of oversupply. In 2010, the owners of specialised ships gained some confidence in the markets. This resulted in an increase of ordering to 7.4Mln CGT from 2.4Mln CGT in 2009. European shipyards, specialised in the complex and demanding shiptype segments, managed to attract 30% of these orders.
CESA Working Group on Market Forecast

The main task of the Market Forecast Group is to look into further developments in the market with regards to supply and demand balance and shipyard capacity. The findings are discussed with experts from shipbuilding associations from China, Japan and South Korea during annual meetings. It is hoped that through such continuous dialogue an improved understanding can be reached and thereby contribute to a healthier and more stable development of the global shipbuilding market.
European market
The shipbuilding market in Europe improved in the course of 2010.The total new orders during the year were five times higher than the low 2009 level, reaching 2.5Mln CGT, according to LR-Fairplay. However, due to the prolonged period of low new orders, the European orderbook fell to 6.3Mln CGT at the end of the year, roughly 1.5 years production.
CESA Commercial Shipbuilding Activity

orderbook
20000 17500 15000 12500 10000 7500 5000 2500 0
orderbook new orders completions
new orders
completion
1.000 CGT
1998 11.264 5.494 4.925
1999 11.056 4.213 4.637
2000 13.267 7.591 4.794
2001 12.723 4.533 4.870
2002 9.652 2.262 4.816
2003 9.609 3.951 4.478
2004 12.406 6.798 4.194
2005 15.738 7.226 3.851
2006 16.885 5.379 4.642
2007 16.752 5.425 4.870
2008 13.692 2.114 4.820
2009 9.470 561 3.895
2010 6.394 2.459 3.947
Q12011 6.401 472 742
Shipbuilding production increased marginally in 2010 compared to the past year but remains lower than average for 2006-2008 levels. With the orderbook at the lowest level in a decade, the output
CESA 2010 - 2011
Market development
level is expected to fall further, as new orders often have a lead time of more than one year. The demand gap has hit all shipyards around the world very hard but the impact on European companies may be significantly deeper for several reasons: Smaller size made European companies much more vulnerable Banking crisis cut off access to financing in Europe more than in Asia Governments in several Asian countries responded very fast and consequently Regardless of the fact that the European shipyards lost market shares, the fundamental prospects remain positive. The use of the seas and oceans is going increasingly beyond a mere transporting of cargo from one continent to another. The vast maritime space offers a host of business activities including fishing, off-shore oil and gas exploitation, maritime tourism, cable and pipeline laying, offshore renewable energy generation, sub-sea mining, security and defence, various research activities and many more. European yards strength lies with complex solutions for the various sea applications which can contribute substantially to harvest these opportunities. One prominent case may be the cruise sector. Nearly all cruise ships on the world market are made in Europe. However, within shipping, which understands itself mainly as a mode of transport, the cruise sector is peculiar, seen as operating floating hotels. In this sense, European yards CESA Orderbook by Shiptype at 1 January 2011 contribute today to a small extent to the global cargo transportation. Much of Non-cargo vessels Tankers 24% the portfolio focuses on 5% specialised tasks like super yachts, fishing, dredging, Bulk carriers 5% demanding services for the Containerships off-shore oil and gas indus5% try, coast guards, naval ves86% specialised ships sels and many others. Also for specific transport tasks General cargo ships 14% including short-sea shipping and inland navigation, project cargo with heavy Ferries lifting requirements, transGas Tankers & Passenger Ships port under ice-conditions 0.4% 47% or other particularly challenging cargos, Europe ofSource: CESA based on data from IHS Fairplay fers the solutions. European shipyards have focused on building technologically complex hardware for use at sea, facilitating the creation of an excellent European network of suppliers of advanced maritime equipment. The European orderbook is covered more than 85% with contracts for such complex vessels. As the market fundamentals recover, the past years lack of orders are following suit and translate into dynamic ordering activity for specialised vessels. Ferries and passenger ships remain the segment dominating the CESA orderbook with 44%. From 3.6Mln CGT in the global orderbook, 3Mln CGT are contracted with European yards. The industry is confident on the outlook as popularity of cruising among Europeans but also in other parts of the globe continues to increase. During past years, the number of European tourists opting for a cruise increased by double digits, from 14% in France to 41% in Scandinavian countries. As cruise lines reveal new itineraries for each season, the growing trend is set to continue, bringing a wealth of benefits along the chain, from ship manufacturers to providers of tourist services.
Market development
CESA 2010 - 2011
CESA Orderbook by Shiptype

100% 90% 80% 70%
000 CGT
60% 50% 40% 30% 20% 10% 0%

2003
2004
2005
2006
Non cargo vessels
2007
Gas tankers
2008
Tankers
2009
Containers ships
2010
Bulk carriers
Ferries&Passenger ships
General cargo ships
The outlook for non-cargo vessels, covering more than 22% of the European orderbook, also remains positive. This segment includes a wide array of ships - offshore supply vessels for oil and gas energy, vessels with heavy lifting capacity, dredgers, research vessels, cable laying vessels, wind turbine installation vessels as well as wind farm service vessels, fishing vessels - in total 271 ships for various complex tasks. A pick-up in industrial activities will have positive implications on demand for such type of vessels, as well as for the general cargo segment.Vessels for transport of specialised cargo cover another 13% of the European orderbook. The other 14% remain contracts for various types and sizes of tankers, bulkers and containerships. The strategy of focusing on highly valued specialised ships has paid-off as the turnover figures show and helped Europe over a decade to be the leader of niche markets.
CESA Member Yards Turnover - Commercial Newbuilding Market

Turnover in mln EUR
1
Source: CESA based on data from NA
20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0
2003 2004 2005 2006 2007 2008 2009
19,366 16,256 15,669
14,328 12,968 10,463 9,041
15,213
2010
CESA 2010 - 2011
Market development
Besides the natural growth of the market, there are additional growth prospects arising from regulatory requirements on ship emissions and safety. There will be a lot of testing of new concepts, which is good for smaller, flexible yards.There will be a lot of retrofitting, good business for the producers of respective systems and for repair and conversion shipyards. There will be a much more fundamental recognition of life-cycle costs with a more pronounced approach on maintenance. We will see new business models which engage the value chain in a different manner than traditionally known. Perspectives for new businesses can only be good news for the European shipyards as currently production is set to be interrupted at several facilities as the orderbooks of European yards have decreased both in cgt and value terms as an effect of the global economic crisis. A careful planning is needed to maintain a critical mass of the excellent supply chain, including its labour force in order to respond to the future demand.
Value of Orderbook - Commercial Newbuilding Market

58,554 60,000 50,000
Mln Euro
Source: CESA based on data from NA
49,945
52,616
40,000 30,000 20,000 10,000 0 22,174 23,491
37,583
36,558 27,031
2003
2004
2005
2006
2007
2008
2009
2010
CESA Working Group on Market Monitoring

Tasked to monitor the general economic and policy developments related to the global shipbuilding market, the Market Monitoring Working Group of CESA also serves as an interface on these issues to the European institutions by offering quarterly briefing and discussion sessions.
Market development
For several years, these meetings are regularly attended by officials 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.
CESA 2010 - 2011
10
2. Ship financing market

The ship financing market has continued its consolidation path in 2010. After the collapse in mid 2008 and a difficult year 2009, the return of more healthy charter rates in some market segments has helped to ease the tight situation. However, substantial financing gaps from the over-heated market, still weak earnings in many market segments and a substantial decline of asset values have remained a burden from the industry.The newbuilding price index, after dropping more than 40 points, stabilised at the beginning of 2010 at a level seen last in 2004. In addition, most currencies of the main shipbuilding areas, with the exception of the Korean Won, appreciated strongly against the US$ and led to further concerns to the export oriented shipbuilding sector.
Clarksons' Newbuilding Price Index

Jan 2000=100
220
in $
in
in Won
in Yen
in Yuan
200
180
160
140
120
100
80
Jan -0 0 n Ju -0 0 N ov 00 Ap r-0 1 Se p01 b Fe -0 2 lJu 02 D ec -0 2 M ay 03 O ct -0 3 M -0 ar 4 Au g04 Jan -0 5 n Ju -0 5 N ov 05 Ap r-0 6 Se p06 b Fe -0 7 lJu 07 D ec -0 7 M ay 08 O ct -0 8 M -0 ar 9 Au g09 Jan -1 0 n Ju -1 0 N ov 10 Ap r-1 1
At the same time, shipyards had to face rising costs of raw materials, especially steel plates and other metals like copper, nickel and aluminum. During 2010 alone, the prices of hot rolled steel plates used in shipbuilding increased 33% in Europe and 17% in Asia, reaching already the 2007 level. With the recovery of the ordering activity in 2010, financing of new orders has been the most important factor for the shipyards to solve. In Europe, this has remained a critical matter throughout the year. Many of the traditionally strong players in the ship financing market were still occupied with the consolidation of their shipping portfolio and reduced the capacity for new projects. Additionally, changing regulatory requirements created further constraints on liquidity. According to Basel III, commercial banks will have to separate their lending portfolios, grade them according to risk and provide extra capital for loans to those falling in the high-risk categories. Particularly smaller companies and those where changes in the product portfolio increase the technical risk level have experienced a challenging market environment. In several Asian countries, state-owned banks have committed to offer financial relief from the first signs of the financial sectors meltdown. Many yards turned to their governments and Export Credit Agencies. In 2008, the Korean government had already called for more insurance coverage to boost exports and help Korean businesses, among which exports of ships. The total aid from the Korean government to domestic shipbuilding and shipping sector surpassed EUR22Bn in guarantees, restructuring funds, loans and other instruments. In China, the official position was announced that after having taken the lead in the shipbuilding sector, the supporting services would need to be built up domestically. Several of the large state owned banks committed to build up expertise and experience to serve shipping projects. The much noted credit package of initially USD5billion credit volume to
Source: CESA based on data from Clarksons and www.x-rates.com
CESA 2010 - 2011
11
Ship financing market
Greek shipowners willing to buy Chinese made ships are examples of the approach. The offer was even doubled early 2011. Other state-owned banks injected at least USD10Bn as refund guarantees for yards and regional banks also joined to support regional interests. Also in Europe, governments have recognised that guarantee instruments have become a necessity in the sector. Existing instruments were strengthening to the degree allowed under European competition rules, which include tight provisions for any financing instrument provided by state-owned banks. The so-called Temporary Framework, which allowed certain measures to facilitate liquidity to the market, was practically discontinued at the end of 2009. The remaining provisions for 2010 had no relevance to the shipbuilding sector. Despite the fact that the use of instruments under these provisions were very expensive, i.e. were mainly supporting the banks rather than the real economy, yards which used such facilities had to find again new arrangements.The competitive advantage of the high level of ship financing expertise in Europe and the high market volume has substantially eroded since 2008.Today, supported by competitively priced state instruments, several Asian nations seem to take the lead also in this field.
Common European guarantee instruments to complement existing national systems, as foreseen within LeaderSHIP 2015, had unfortunately not matured. They could have been the ideal tool to respond to the crisis situation. Already in 2003, the Council requested the European Commission to examine, together with the shipbuilding industry, whether a European entity, such as e.g. the European Investment Bank, could take a leading role in pre and post-delivery financing for shipbuilding projects. With meagre progress at hand, another study was undertaken for the Commission in 2010. A workshop with Member States as a follow-up on these activities was held in May 2011. It remains to be seen whether Member States are prepared to decisively tackle the challenges jointly.
Also on the side of the European Investment Bank, ship financing has come into the spotlight in the context of the review of the transport lending policy. The process is still on-going, with results expected for the end of 2011.
CESA Working Group on Financing

Ship financing market Ever since LeaderSHIP 2015, the CESA Working Group on Financing is exploring the possibilities of creating additional financing instruments for the shipbuilding industry and expanding the availability of pre- and post-delivery financing. The long-term priority is to establish European wide instruments to increase the available volume for financing of shipbuilding projects to enhance the competitiveness of the sector. As described above, the availability of financing has become a decisive factor for investments in new projects and especially in new technologies. In such situation, the EIBs Clean Transport Facility could be a suitable instrument to achieve the Europe2020 targets. On the short term, CESA Ship Finance experts aim at revitalising the constructive dialogue with the EIB and other stakeholders in order to make effective use of such instruments.
CESA 2010 - 2011
12
3. LeaderSHIP 2015
During the past 12 months, Europe has gone through a period of deep political crisis. The great success story of the Euro was contrasted by the sovereign debt crisis in the Eurozone periphery. The near collapse of several smaller Eurozone economies revealed the architectural shortcomings of the common currency. The lack of sufficient economic and budgetary policy coordination has been considered the main structural cause of the trouble. The recognition that further progress of the European integration is a necessity to safeguard future prosperity can turn the current crisis into a major boost for Europe. There are some similarities in the Eurozone difficulties which LeaderSHIP 2015 shares. The industrys hopes that LeaderSHIP 2015 could provide a solid base to forge a common and effective crisis response were not fulfilled. All efforts in 2010 to activate European policy makers in this direction have borne no fruits. The willingness of the Member States to coordinate their efforts and to find common solutions was insufficient and the European Commission was not in the position to drive such a process. The CESA Board concluded that a full rebuilding of the initiative appeared necessary and appropriate.The lessons learned over the past eight years provide a valuable base to launch renewed efforts with an improved structural architecture. In particular Member States must be convinced to hold ownership of the initiative. Also the industry itself has to review its own commitment within the process. And finally a wider conceptual approach is to be conceived, covering not only classical shipbuilding, which a wider public understands as the construction of cargo ships, but encompassing all aspects of maritime engineering and manufacturing of any type of hardware applications for the oceans and seas. The new approach will be developed under the heading PartnerSHIP 2020.While this new initiative is still young, it will be important to ensure that already at its very start the initiative is accompanied by sound policy decisions. CESA, therefore, considers on-going policy issues with relevance for the sector already in that context. With PartnerSHIP 2020, Europe will build on its strength and unmatched maritime expertise, and facilitate a sound future for an industry indispensible to make the best and sustainable use of the oceans of opportunities.
CESA 2010 - 2011
13
LeaderSHIP 2015
4. International relations
Organisation for Economic Co-operation & Development (OECD)
For some time, the highest priority activity in the programme of the OECD Council Working Party on Shipbuilding (WP6) has been the recommencement of the Shipbuilding Agreement negotiations that were paused in September 2005. In December 2010, the OECD Council decided to terminate the negotiations because the differences of view among the key participants on the treatment of pricing have proven impossible to bridge. As a consequence, the WP6 will need to review its Programme of Work with the possibility of broadening the WP6 mandate, especially in the longer term (as from 2013) after the current mandate expires. Besides Shipbuilding Agreement negotiations, the WP6 Programme of Work for 2011-2012 includes: Market distorting factors Export credits for ships Review of existing OECD shipbuilding instruments Shipbuilding market (supply/demand; characteristics) Environmental best practices Shipyard order books Inventory of governmental support measures
International relations
The OECD Council has invited the WP6 Members to consider among the above listed items which should be kept in the future and which should be worked on more in terms of in-depth and scope. In addition, the WP6 Secretariat has proposed greater engagement of industry and enhanced contacts with NMEs (Non-Member Economies). Even though the Shipbuilding Agreement negotiations have failed, CESA sees WP6 as the only existing global platform to address market distortions in shipbuilding and, therefore, should be kept in place. Concerning the future mandate of the WP6 and aiming at generating more concrete results, CESA takes the view that the WP6 Secretariat should conduct a market and policy monitoring exercise which could provide valuable information to the industry and governments as a neutral and independent organisation. Information to be gathered could cover, for instance, governmental support measures, the development of shipbuilding cost elements and shipbuilding market development including up- and down-stream markets as well as shipbuilding policies and public support measures. Such exercise could better facilitate a common understanding on shared concerns and form the basis for common objectives to be regulated.
CESA 2010 - 2011
14
Bilateral dialogues & upcoming free trade agreements (FTAs)

The EU-South Korea FTA was signed on 6 October 2010. The European Parliament gave its consent to the Agreement and approved the Regulation implementing the bilateral safeguard clause of the FTA on 17 February 2011. The Council approved the Regulation implementing the bilateral safeguard clause of the FTA on 11 April 2011. The Korean National Assembly ratified the FTA on 4 May 2011. The provisional application of the FTA is expected on 1 July 2011. CESA expects that this new level of trade relations would positively impact the trading conditions also in the shipbuilding sector. In the context of the existing bilateral agreement on shipbuilding, the socalled Agreed Minutes, the South Korean government agreed that the level of ship prices should reflect all of the factors of costs according to the definition 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. EU-Canada FTA negotiations were launched in May 2009 and are expected to be finished by the end of 2011. The content of the CETA (Comprehensive Economic and Trade Agreement) and its general modalities were agreed in June 2009. Seven negotiating rounds have been held until June 2011. So far, 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 containerships, tankers or bulkers. In October 2010, the Canadian Minister of Finance announced a waiver of Canadas import tariff on imports of all general cargo vessels and tankers, as well as ferries longer than 129 meters. The Commission supports the goal of the European shipbuilding industry that the Canadian shipbuilding import market should be liberalised for all ship types. The key discussion would be when and how such liberalisation should process. Regarding public procurement issues, under the WTO Agreement on Public Procurement (GPA partners), the EU has bond itself much more than other parties. Thus, the purpose of this FTA is to have Canada follow the same binding obligations as the EU at this bilateral level. The EU-ASEAN FTA negotiations were launched in April 2007. The negotiating process is based on a region-to-region approach. In December 2009, EU Member States agreed that the Commission will pursue FTA negotiations in a bilateral format with countries of ASEAN. Negotiations with Singapore, Malaysia and Vietnam were launched in 2010. The Commission continues exploratory informal talks with other individual ASEAN members with a view to assessing the level of ambition at bilateral level. The EU-India FTA negotiations were launched in June 2007. So far, 10 rounds have been held of which the last one took place in October 2010, followed by a number of intersessional meetings including chief negotiators meetings during the last week of January 2011 in India and the first week of March 2011 in Brussels. Important issues include how to get improvements on market access for goods and inclusion of government procurement. The EU-Mercosur FTA negotiations were officially re-launched at the EU-Mercosur summit in Madrid on 17 May 2010. Five negotiation rounds have taken place since then. Until now, rounds have focused on the normative part of the agreement. The parties are working towards exchanging market access offers. Furthermore, the EU and China have launched negotiations in 2005 to replace the trade and investment part of the old Partnership and Cooperation Agreement (PCA) from 1985. Trade and investment negotiating track 6th formal round took place in Beijing on 8-12 March 2010. A technical round was held on 16-17 September 2010 in Beijing. One quarter of the economic and trade chapters is finalised and both sides are still hoping to close another quarter by the end of the year, but negotiations continue to be slow in major areas. The last round took place on 11 May 2011.
CESA 2010 - 2011
15
In the context of the EU-China Shipbuilding Dialogue established by the Memorandum of Understanding signed in May 2007, the first meeting took place in August 2010. Information on capacity and market development has been exchanged. The second meeting is expected to be held in September 2011 where shipbuilding strategies, policies and measures, and strategies for promoting innovation and green technologies in the sector could be discussed. EU and Russia are currently negotiating a new agreement replacing the 10-year old PCA as well. This new legally binding agreement should provide a comprehensive framework for bilateral trade and investment relations. The 12th formal round of negotiations took place mid December 2010. The chief negotiators have agreed that work should focus now on the trade and investment provisions and, until there is sufficient progress in this area, the working groups covering non-trade areas of the new agreement will not be convened. In March 2007, the EU and Ukraine launched bilateral negotiations of a new Association Agreement that will replace the present PCA that dates from 1998. So far, 16 rounds of negotiations have been held. The last one took place on 4-8 April 2011 in Brussels. There has been progress in different areas, but still some outstanding key issues remain.
JECKU
The 19th JECKU top executive meeting was hosted by China in Nantong on 28 October 2010. More than one hundred senior executives from the leading shipbuilding companies in Japan, Europe, China, South Korea and the United States attended the meeting. The meeting covered extensive discussions on the global economic environment and the development of shipbuilding industry. Overcapacity has once again been identified as a real obstacle for recovering of shipping and shipbuilding market. In order to limit the damage to the industry to the minimum, the delegates agreed that careful and disciplined assessment of shipbuilding capacity based on market principles is necessary.
CESA introduced environment protection as a new agenda item for JECKU. All delegates realised that environmental protection will impact the shipbuilding and shipping industry greatly which may enlarge the demand of highly efficient ships and meanwhile bring new challenges for ship design and construction. A wide range of technologies is available to reduce greenhouse gas emissions and other air and water pollutions. The shipbuilding industry, therefore, jointly advocates a change of mind set in the shipping industry to embrace the advanced technologies. The participants endorsed the proposal to continue the cooperation through the JECKU meeting process and hold the next meeting in the fall of 2011 in South Korea.
CESA 2010 - 2011
16
5. Research, development and innovation

Summary
Research, Development and Innovation are essential to provide better maritime hardware to the markets and to sustain the competitiveness of the European industry. Therefore, CESA invests a lot of efforts in this area through its dedicated working Group COREDES as well as by running the Secretariat for the Waterborne Technology Platform. During the reporting period, the efforts focused on two main strands: (1) preparation topics and research proposals for the remaining calls under the Community Research Framework Programme 7 (FP7) and (2) preparation for the next Framework Programme 8 (FP8). As outcome of the dialogue started inside COREDES, the WATERBORNETP and the European Commission developed the topics list, which has been inserted in the draft Work Programme 2012 for the 5th Call of FP7-Cooperation-Sustainable Surface Transport (SST). The element of novelty in the 5th Call preparation was the process which has been followed; a preparatory meeting together with ECMAR and EMEC was held to set the basis for the topics, creating a kind of maritime engineering and manufacturing cluster facilitating the basis for a stronger collaboration and co-ordination in this area. In the meantime, the response of the sector to the 4th Call was excellent in terms of quality and quantity of the proposals submitted. Around six projects have been funded under the two topics on green retrofitting. The FP8 preparation was developed in the frame of the WATERBORNETP with the main objective to create a solid entry into the programme for the maritime sector. COREDES has been active in the WATERBORNETP Support Group to sustain the work, which included a submission to the public consultation on the Green Paper on Research and Innovation. In addition, contributions were made also to consultations on the Strategic Transport Technology Plan which the European Commission expects to issue in autumn 2011. This master plan will strategic research agenda establish the focal technologies to be supported by various Community initiatives.
implementation
Finally, in June 2011, the CESA General Assembly appointed Mr. Luciano Manzon as new COREDES route map 2007 Chairman, thanking Mr. Willem Laros for the successful work during his terms of office.
Waterborne transport & operations Key for europes development and Future
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Research, development and innovation
CESA 2010 - 2011
WATERBORNETP
The WATERBORNETP undertook the preparatory work for the Calls mainly in the Support Group following an agreed procedure worked out by the Secretariat and adopted already in early 2010. The Topics for the 5th Call were delivered to the European Commission in December 2010. The document prepared by the platform was undoubtedly of good quality in terms of content provided and timely on the Commission schedule. Nevertheless, not all the Topics proposals have been taken
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on board by the Commission, because a new fact came into the picture: a decision was taken at the level of Commissioners for Research and for Mobility to exploit synergies between the two areas and to establish a new method of work for which the R&D priorities will be from now on under the responsibility of both departments. This decision means that the R&D topics have to take into account policy priorities of the Directorate General for Mobility (DG MOVE) as well. Measures reflecting this development have been taken already in the preparatory work for the 6th Call. The WATERBORNETP consultation process went faster than the previous year and the Topics were delivered already mid July 2011 to both DGs. The proposed topics cover the following area: (1) Towards Zero Emission; (2) Safety in Operative Conditions; (3) Competitiveness for SMEs; (4) Goal Based Standards preparatory work for application; (5) Shaping the R&D needs for the WATERBORNE Sector. With regard to the FP8 preparation, a Working Group of the Support Group was established with nearly ten participants from the main WATERBORNETP areas. This group met four times over the past months and finally published the WATERBORNETP Declaration, which draws the focal line for the maritime sector in FP8. The European Commissioner for Research and Innovation, Mrs. Mire Geoghegan-Quinn, presented on 21 June 2011 the outline for the future EU R&D funding programme under the title: Horizon 2020 - the Framework Programme for Research and Innovation. It will enter into force on 1 January 2014, with an allocated budget of around 80b (nearly 30b more than FP7). With Horizon 2020 a new, integrated funding system will be implemented covering all research and innovation funding currently provided through the Framework Programme for Research and Technical Development, the Competitiveness and Innovation Framework Programme (CIP) and the European Institute of Innovation and Technology (EIT). These different types of funding will be brought together in a coherent and flexible manner. Research and innovation funding will focus clearly on addressing global challenges.The initiative aims at reducing bureaucracy making access to programmes and participation easier and simpler. In this new landscape, the WATERBORNETP Declaration is the cornerstone document which sets the strategy in 2020 perspective.
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2011 updates of the WATERBORNE Strategic Research Agenda and WATERBORNE Implementation Plan have been released.
VisiOn 2020
Waterborne Transport & Operations A Key Asset for Europes Development and Future
STRATEGIC RESEARCH AGENDA

OVERVIEW - ISSUE II - May 2011
Waterborne Transport & Operations Key for Europes Development and Future
WATERBORNE TP Secretariat c/o CESA Rue Marie de Bourgogne 52-54 B-1000 Brussels, Belgium http://www.waterborne-tp.org
STRATEGIC RESEARCH AGENDA

IMPLEMENTATION
Waterborne Transport & Operations Key for Europes Development and Future
Route Map Issue 2 - May 2011
The 2nd European Maritime Research and Innovation Policy Conference was held in Brussels in June 2011. Nearly 200 participants attended the conference aiming at introducing the WATERBORNETP Strategy to the wide industrial stakeholders and to the policy makers.
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During the Annual WATERBORNE General Assembly in Brussels, the WATERBORNETP Board was partly renewed. Mr. Govert Hamers fulfilled his term of office after four years of successful and committed work. Likewise, also Mr. Bernard Anne from Bureau Veritas as Vice-Chairman as well as Mr.Willem Laros as Secretary completed their terms.The new Secretary is Mr. Luciano Manzon and the new Vice-Chairman is Mr. Mario Dogliani from Rina. Mr. Willem Laros agreed to serve as Chairman for a transitional period until a new chairman will be appointed.
EU R&D Framework Projects

CESA is the co-ordinator of three Co-ordination and Support Actions in Call 2 and participant in several other projects, some of which still running from calls under FP6.
CASMARE
The WATERBORNETP mechanism has successfully fulfilled its scope throughout the reporting period: aligning and co-ordinating the research efforts at European level in the maritime sector. The co-ordination action CASMARE has put in place a number of actions and tools to support the functioning of WATERBORNETP. Among the foreseen deliverables, in particular the detailed mapping on the status of the Waterborne Strategic Research Agenda (WSRA) against running projects under FP7, an update of the WSRA and a review of WATERBORNEs scope can be highlighted. In the monitoring process, 56 projects established under FP7 on several thematic priorities have been taken into consideration and mapped against the WATERBORNETP Strategic Documents.
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The mapping shows that around 22% of the total number of projects which are running under the transport heading are not or scarcely related to the WATERBORNE Research Priorities. This could be explained by the fact that the impact of WATERBORNETP at the time of the projects preparation was not yet widely recognised. The feeling is that this trend has already changed significantly in 2009 and 2010 due to the time elapsed after the first release of the Strategic Documents and a more precise internal organisation. With regard to improved protection of intellectual property, the recommendations provided could be included in the general condition for the IP protection in the European funded projects. The recommendations are directed to the participants and to the policy makers. They are divided in three phases: before the proposal, along the duration of the project and after the end of the project. The most important one is that the project consortium must be committed to the European interests and refrain for a fixed period of time from transferring, giving access to or disseminating the project results to third parties established in a country not associated to the EU. In the review of the WATERBORNETP scope, three main areas are identified: Sustainable maritime transportation. Low GHG emission Waterborne products and processes. Sustainable energy generation and conversion from the sea.Waterborne products for renewable energy generation form the sea (including offshore wind energy). Sustainable food generation from the sea. Waterborne products for the exploitation of the seas for the societal needs (food from the seas, aqua-farming, fisheries, coastal spatial planning, floating structures). More info can be found on http://www.waterborne-tp.org
EMAR2RES
The scope of this Co-ordination Action, under the perspective of Transport, is to establish a liaison among the Marine and the Maritime Community and to identify possible common strategic objectives. The project has successfully achieved all its targets for the first period installing the foreseen committees and panels and running six technical workshops attended by more than 70 experts to sketch the future of Marine and Maritime Research under the transport perspective identifying the main areas for R&D collaboration among the two communities. These are: Impact of maritime transport on the marine environment [biological and chemical impacts] Treatment of ballast water Accidental and operational emissions to the sea Accidental and operational emissions to the air Development of hull coatings/anti-fouling
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Water as a common medium [physical relationships] Resistance and propulsion Underwater noise and vibration Impact on seabed morphology in restricted waters Monitoring climate change and the benefits of operational oceanography to maritime transport, e.g. Collection of meteorological and oceanographic data [ship to scientists], Sensors, Telemetry Provision of end user information services through the integration of measurement, modeling, and prediction, using meteorological and oceanographic data Marine core information services to support e-maritime, e-navigation, traffic management, weather routing, arctic navigation, weather and sea state (tides, currents, waves) forecasts, oil spill monitoring, ballast water dispersion and global ship routing, etc. Relationship between maritime transport & climate change, e.g. Impacts on operations on ports & harbours, navigation & routing Impacts on vessel design, consequences of extreme weather, low carbon objectives More information to be found on http://www.emar2res.eu
VISIONS OLYMPICS
The Support Action Visions Olympics (continuation of VISIONS NoE) will aim at capturing revolutionary concepts for maritime transport and ocean exploitation from the unbiased minds of European universities students. The project will offer out of the box concepts and ideas for the future of European maritime transport, develop these ideas within an environment where purpose driven innovation is cultivated and performed in a risk free environment, build bridges between universities and industry, enhance the skills of future employees in a highly competitive environment, and offer targeted dissemination to industry. The Year 2010 Contest has been launched and successfully carried out during the academic Year 2009-2010. After an in-depth analysis of the European market and technological situation, three thematic areas have been identified by a panel of Maritime Experts as: Research Area 1 (RA1): Transport challenges for offshore energy generation & conversion. Research Area 2 (RA2): Transport challenges for sustainable food generation from the sea. Research Area 3 (RA3): Sustainable waterborne transportation On these 3 areas, student teams have been called to submit their project ideas in two steps: Step 1 - Abstract submission (by January 2010) Step 2 - Full project idea submission (by April 2010)
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Results of the first submission round are: 136 students originally registered for the competition. The students are from 7 European countries plus 1 EU candidate country (Turkey). 10 universities participated in the competition. 32 ideas were registered of which 27 abstracts were finally accepted. 22 final projects were submitted by the time of the deadline of 31 May 2010. Among those 22 project ideas, 6 were shortlisted for in-depth experts evaluations. Building on the experts analysis, a High Level Jury of maritime personalities formed by 6 industrial and research representatives awarded the three winning ideas. The Award Ceremony took place during the 2nd European Maritime Research and Innovation Policy Conference in Brussels on 16 June 2011.
1st prize: Ultra Large LNG Carrier 3rd prize: Ballasting System of the NOBAX vessel
2nd prize: River - Sea Shipping Concept
The second LOOP is progressing along the same scheme of LOOP I. Also for this LOOP II, after an in-depth analysis of the market and the technological situation, special focus has been given to the Green Shipping research area consisting of three sub items:
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(RA1) Safety at sea (RA2) Green logistics (RA3) Energy efficient ship On these three areas, student teams have been called to submit their project ideas in two steps: Step 1 - Abstract submission (by January 2011) Step 2 - Full project idea submission (by April 2011) More information can be found on http://www.visions-olympics.eu CESA is also involved as partner in the following projects: VECTORS TRA2012 THROUGHLIFE FLAGSHIP http://www.marine-vectors.eu http://www.traconference.eu http://www.throughlife.eu http://www.flagship.be
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6. Safety and environment

International Maritime Organisation (IMO)
Within the European shipbuilding industry the International Maritime Organisation (IMO) is recognised as the appropriate institution for setting the legal framework for ship technology. High standards are not only crucial for further improvements in ship safety and marine environment protection but also form the basis for the competitiveness of innovative high-tech shipbuilders. Therefore, industry organisations and flag states must speak with one voice in order to counter balance the dominance of flags of convenience and sub-standard shipowners when developing binding technical regulations. European shipyards and marine equipment suppliers can benefit equally from more stringent safety and environmental standards if these requirements are implemented homogenously world-wide. CESA is an active IMO member since 1979, but still the only non-governmental organisation of the shipbuilding industry covering all IMO issues of significance to shipbuilders, shiprepairers and equipment manufacturers. CESA regularly participates in the meetings 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) and actively contributes to various Correspondence Groups working intersessionally. The work in the MEPC during the last twelve months was focussed on the efforts to regulate the emission of greenhouse gases from international shipping. CESA supports in principle the European strategy to reduce emissions from international shipping by 20% by 2020 with 2005 emission levels as reference. Globally applicable regulations as well as the retrofitting of existing ships are, however, prerequisites to achieve this goal. Market based measures (MBM) such as emission trading schemes or a bunker levy in conjunction with an international compensation fund, are the solutions preferred by the European shipbuilders. Such instruments could provide both the incentives and flexibility necessary to stimulate the technical innovation and to enforce the demand of available technology as well as a level playing field for all flag states. However, since no consensus has been reached with the developing countries on the IMO principle of no more favourable treatment, it is unlikely that a MBM will be approved in July 2011. Also the development of the complex energy efficient design index (EEDI) has not reached a sufficient level of a technical maturity to be applied to the large variety of newbuildings. CESA has continued to submit evidence that fast and energy efficient passenger and RoRo ships as well as small specialised general cargo ships (in particular heavy lift vessels) are still threatened by operating restrictions, while slow scarcely optimised standard vessels are subject to less ambitious requirements only. Because of persistent grave conceptional flaws, CESA recommends to limit for the time being the EEDI application to standard shiptypes, such as container ships, tankers and bulk carriers, which are by far responsible for the majority of maritime CO2 emissions. Significantly higher reductions are achievable if the world merchant fleet will become subject to mandatory operational measures as well as requirements and incentives for the retrofitting with efficiency increasing technology. Retrofitting of the existing merchant fleet is also the key issue for the implementation of low sulphur shipping in European waters and in other ecological sensitive sea areas world-wide, which has been unanimously adopted by IMO. CESA reaffirms that the 2008 MARPOL Amendments have been established for good reason: sulfur dioxide emissions are harmful to human health causing asthma, lung cancer, cardiovascular diseases and premature death. Bearing in mind that the future
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Safety and environment
limit of the sulfur content of ships bunker to be used in Sulfur Emission Control Areas (SECA) to 0.1% exceeds the requirements for land based transport by the factor 100 is both politically necessary and technically feasible. In order to avoid a modal back shift from European short sea shipping to land transport, it is necessary to use the alternative methods of compliance, namely the installation of exhaust gas cleaning systems. European equipment manufacturers and repair yards specialised in innovative conversions provide sufficient capacities for a timely retrofitting of existing vessels, whereas newbuilding yards offer advanced designs of LNG fuelled ships, which could enter into service by 2015. The shipbuilding industry and proactive ship owners, which have already invested in advanced technology in order to meet both emission targets and deadlines, require the protection of their investments. In addition, CESA recommends to advance the issue of the designation of the Mediterranean and Black Sea as new SECAs in order to provide a level playing field in all EU waters and to avoid redistribution of seaborne trades to and from Europe that might yield a sulfur leakage to southern Europe. Finally, the market entry of advanced technology should be supported through pilot projects and environmental investment aid for the early implementers. Also in the field of ship safety, CESA promotes the replacement of prescriptive regulations by functional requirements within IMO instruments. In close collaboration with European flag states, shipbuilders were successful in basing more and more regulatory initiatives on a risk oriented approach, which facilitates technical flexibility necessary for the development of innovative ship designs and making technology transfer to competitors more difficult. Recent examples for this new regulatory style are the draft International Code for Gas-fuelled Ships and the International Code for Ships Operating in Polar Waters, which soon will replace recommendatory Guidelines by advanced mandatory requirements covering a broader scope. Gas-fuelled ships are a key technology for the reduction of greenhouse gases in order to contribute to the fight against climate change. 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 initiated an expansion of the scope of the Code to fuel cells as well as LPG, Hydrogen and low flash-point fluids such as Ethanol and Methanol.
Polar regions offer significant market opportunities for the European producers of complex high tech ships, which can only be utilized through the harmonisation of national legislation. The goal of the Polar Code is to enable the sustainable economic use of the Arctic and Antarctic in the field of exploitation of offshore energy, marine mineral resources and ecological tourism. The Polar Code will cover the full range of design, construction, equipment, operational, training, search and rescue and environmental protection matters taking into account the highest safety and environmental standards. Even in an environment governed by global warming, the risk factors in polar shipping, such as remoteness, temperature, ice coverage and limited SAR capacities, can only be mitigated by the use of highly specialised ships that are purposely designed or retrofitted for this demanding service. New on the IMO work programme is the development of an international Code on the Protection against Noise on Board Ships, which should make the recommendatory Assembly Resolution A.468(XII) mandatory. CESA welcomes this important initiative aiming at improvements of the living conditions and occupational health standards of seafarers. The implementation of homogeneous and demanding noise emission limits could set a competitive edge for European shipbuilders that have gained technological leadership in the optimisation of ship design and components
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concerning noise and vibrations. The shipbuilding industry favours to concentrate the reduction efforts on the living area of the crew and those work places, where no ear protection is necessary and seafarers fully benefit from the improvements implemented.
During the last twelve months, IMO has considered or decided a large number of work programme items, which are of utmost significance for the shipbuilding industry. CESA has contributed very actively and the technical input provided was acknowledged by the Organisation. The intensified international networking among shipbuilders (through CESS) and with other industry associations (through Tripartite meetings) has yielded an increasing influence of the European shipbuilders, which is also demonstrated by a significant number of (joint) submissions: EE-WG 1/2/8 - FURTHER IMPROVEMENT OF THE DRAFT TEXT FOR MANDATORY REQUIREMENTS OF EEDI AND SEEMP - Comments on the draft EEDI Regulations 1 and 4 DE 54/14/3 - PROTECTION AGAINST NOISE ON BOARD SHIPS - Proposal for mandatory, technical feasible noise protection on board ships MEPC 62/6/12 - CONSIDERATION AND ADOPTION OF AMENDMENTS TO MANDATORY INSTRUMENTS - Comments on energy efficiency related amendments to MARPOL Annex VI MEPC 62/5/19 - REDUCTION OF GHG EMISSIONS FROM SHIPS - Consideration of the Energy Efficiency Design Index for New Ships Minimum propulsion power to ensure safe manoeuvring in adverse conditions (joint submission with BIMCO, CESA, IACS, INTERCARGO, INTERTANKO and WSC) MEPC 62/5/21 - REDUCTION OF GHG EMISSIONS FROM SHIPS - Report of the Joint Industry Working Group preparing Industry Guidelines to facilitate consistent application of the EEDI (joint submission with BIMCO, CESA, IACS, ICS, INTERCARGO, INTERTANKO and OCIMF) MEPC 62/INF.17 - CONSIDERATION AND ADOPTION OF AMENDMENTS TO MANDATORY INSTRUMENTS - Recommendations regarding appropriate reference lines for ro-ro ships MEPC 62/INF.21 - REDUCTION OF GHG EMISSIONS FROM SHIPS - Consideration of the Energy Efficiency Design Index for New Ships Minimum propulsion power to ensure safe manoeuvring in adverse conditions (joint submission with BIMCO, ACS, INTERCARGO, INTERTANKO and WSC)
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Committee for Expertise of Shipbuilding Specifics (CESS)

In August 2010, the Annual Meeting of CESS took place in Qingdao (China). CESS continued its activities for the fifth year where efforts were made particularly in respect of coating, steel structure issues and environmental issues, namely the Cargo Oil Tank Coating Performance Standard (COT-PSPC), the Goal Based Standards for new ship construction with respect to the protection of intellectual property rights and the current topic on reduction of GHG emissions from ships. A cross-industry submission to the IMO 87th Maritime Safety Committee of the proposal to develop industry guidelines to strike a good balance between design transparency required under the Goal Based Standards and the intellectual property rights protection required by the shipbuilders was approved and endorsed by the IMO. The action was coordinated by CESA and was supported by active participation from Chinese, Japanese and Korean shipbuilders. It is considered an important milestone for reflecting the voices of the shipbuilders towards shipowners and class. The PSPC for cargo tank coating was also finalised at the 87th Maritime Safety Committee and was successfully concluded as a result of close coordination of the CESS member specialists attending the Design and Equipment subcommittee which enabled to fend off some undesirable proposals put forward by other parties. As to the GHG issue, the recognition shared was to have a closer dialogue between the Tripartite members. Three Tripartite GHG Workshops were held in Japan, China and Korea in chronological order, which promoted the understanding of the issue particularly in respect of the shipbuilding related technological solutions. The CESS Annual Meeting discussed future issues laying ahead of us and, while achievements are made in respect of coating, structure and environmental issues, further coordination needs to be done to reflect our voices to the shipowners and class, and eventually to IMO or other rule making bodies. Furthermore, there are other issues emanating which the shipbuilding industry needs to keep a steady eye on.
CESS has remained active in participating in various opportunities of enhancing relationship with related industries to serve its members with opportunities of taking action. The CESS Annual Meeting also discussed the situation on Port State Control and welcomed the activities which lead to better quality ships and shipping activities, while noting that the records on detention continued to indicate that the shipbuilding quality related items are on a gradual decrease and that the main cause of deficiencies are related to the ship operators human element aspects.
The CESS Chairmans term of office, extended at last years Annual Meeting, has ended this year, but it was decided that his term will be extended again for another year.
Tripartite
The Tripartite forum once again has demonstrated itself to be very effective in terms of results delivered especially in the regulatory IMO area. The cross industry initiatives have in general major chances of success than isolated attempts. On the issues for which a cross-industry approach is possible, CESA should continue to support and provide technical positions.
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In that respect, CESA actively participated in several initiatives mainly in the area of the GHG for the EEDI frame.This work has delivered technical substance for two joint submissions on the definition of the minimum power requirements for ships that will be subject to the EEDI legal framework. This work needs further investigations to achieve a full assessment. On the same subject, a Joint Industry Working Group has been established to draft the applicative guidelines for the EEDI. In that respect, CESA took the lead on the Validation and Verification process organising a dedicated workshop with the participation of shipowners, shipyards, classification societies and towing tank institutions with the objective of establishing a technically sound frame for the EEDI verification phase maintaining at the same time the intellectual rights duly protected. In the same area of GHG, CESA participated in the Green Shipping Conference in Oslo with a lecture and a panel discussion on ship categorisation for the EEDI frame. During the Annual Tripartite meeting in Tokyo in October 2010, CESA was present with four presentations on: (1) Goal Based Standards Ship Construction File; (2) Noise Levels on board of ships; (3) Underwater Noise; (4) Boilers and Low Sulphur fuels.
Coatings and Antifouling

In this area, the European Commission has the intention to replace the current Biocidal Products Directive 98/8/EC with a European regulation opening to the industry the opportunity to contribute with comments and suggestions to the regulation proposal. To be more effective, CESA developed with CEPE (The Voice of paint, printing ink and artists colors in Europe) a common strategy and built a solid technical base for a report to be submitted to the European Commission. In that respect, CESA launched a survey among the European yards to assess the status of the painting practices in the industry. The survey was conducted by means of a questionnaire which was answered by 66 shipyards representing more than the 80% of the painted surface in Europe. The detailed results are available to the CESA Members in the survey. In extreme synthesis, it has been demonstrated that 100% of the shipyards apply a Dock Cleaning Management Discipline and that more than 90% contain measures for dusts emissions.
Technical Advisory Committee

The Technical Advisory Committee (TAC) was established in 2005 focusing on safety and environment related regulatory support to CESA members. As of November 2007, Mr. Willem Laros is the Chairman of TAC.
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7. Social Dialogue
The European social dialogue is an indispensible part of the European social model. 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, the first social dialogue committee in the metal sector. Both CESA and the European Metalworkers Federation (EMF) share a common view on the prospects and challenges European shipyards are facing. During the last year, considerable efforts were made aiming at developing efficient strategies to meet the current economic and societal challenges in the sector.
Market and Policy Developments WG

Overcoming the crisis in shipbuilding remained a constant item of discussion within the Social Dialogue Committee. In response to market contraction, CESA and EMF as social partners coordinated their activities and staged and contributed to an unprecedented number of joint policy events: LeaderSHIP 2015 High Level Group meeting on 11 September 2009, Bremerhaven, Germany EESC hearing on the shipbuilding crisis, 1 December 2009, Vigo, Spain European Shipbuilding Regions handover of the declaration to European Commission and European Parliament, 8 April 2010, Brussels LeaderSHIP conference, 21 April 2010, Bilbao, Spain Conference on the Future of Shipbuilding in Europe, hosted by MEPs Ville Itla (EPP) and Andrea Cozzolino (S&D) in the European Parliament, 24 June 2010 Europes successful path over the past years was broadly discussed and valued during these occasions. That Europe needs to put in place decisive response measures to avoid irreparable structural damages resulting from massive global unbalances and unfair trade practices in Asia that unleashed during the crisis was widely consented. In a joint statement, the Committee submitted its views to the public consultation on the review of the Framework on State Aid to Shipbuilding (2003/C317/06). The Committee requested a continuation and further improvement of provisions to support innovation and an amendment of new provisions to facilitate the improvement of the environmental performance of the European maritime sector. Strengthening the competitiveness of the European maritime industry should be the objective of all provisions included in the Framework.
Social Dialogue
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Skills and Qualifications WG

To ensure prosperity and progress through technological innovation, any company relies on advanced technical skills. Aside engineering and craftsmanship staff, shipbuilding requires advanced qualified personnel in financing, management and marketing. As the crisis unfolded however, the working group considered as top priority complementing temporary employment measures that could help preventing a social crisis and maintain a sufficiently large skilled workforce. The group discussed with DG Employment possibilities to avoid losses of jobs and shipbuilding competence via such instruments as the European Social Fund and the European Globalisation Fund. As long term strategy, the group focused on the Europe2020 flagship initiative An Agenda for new skills and jobs: A European contribution towards full employment. In this context, the EC proceeded with promoting EU level Sector Councils for Employment and Skills. Sector councils are platforms at sector level where stakeholders seek to gain insight into the likely developments in employment and skills needs, with the aim of assisting policy making within or for the sector. The Skills and Qualifications WG agreed to submit an application for a project aiming at identifying the actors in the sector in view of setting up a European Shipbuilding and Repair Council on Jobs and skills.This initiative could eventually be facilitating the cooperation and exchange of information in the sector in particular on the evolution, changes, solutions of skills requirements in the shipyard sector in the context of anticipation of change at European level, as well as securing access to a skilled workforce.
Image WG
During his speech at the European Shipyard Week event in 2009, the former Vice-President of the European Commission Gnter Verheugen said Today the seas connect the peoples of Europe and of the world, instead of separating them. There is growing awareness of the value of our oceans and seas and the critical role of shipbuilding in achieving its potential. CESA is convinced that the maritime engineering and manufacturing sector will continue to grow and tremendous opportunities lie ahead. Maritime tourism, renewable energies and deep sea mining are just a few examples of existing prospects but all require innovative, top performing hardware. A precondition of this is to have the best available talents for the industry and a continuous influx of fresh ideas into the stream. For the past years, the European Shipyard Week brought together European youngsters to debate on the future and spread their messages.
European Shipyard Week

European
SHIPYARD WEEK
2011
InvITATIon
Thursday 29 September 2011
At the European Economic and Social Committee Room JDE 62 (6th floor) Rue Belliard 99, 1040 Brussels
Please register on: www.cesa.eu/shipyard_week_2011
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Social Dialogue
Sea your futu
re - an ocean
of opportunit
ies
The European Shipyard Week will take place again this year across Europe to inform the public of the exiting career opportunities in maritime engineering and manufacturing and the critical role the sector plays in helping Europe to achieve its 2020 objectives. The event will bring at the debate table young maritime professionals, industry stakeholders, members of the European Commission, the European Parliament, representatives of Europes shipbuilding regions, etc. The campaign will be launched on 29 September 2011 in Brussels with a conference under the well-known logo Sea your future! Further activities will unfold in several European countries, promoting increased interaction among the industry and young professionals and strengthen the connections with the maritime communities.
Social Standards WG
During 2010, the working group continued the discussion on two topics of mutual interest: image and respect of core labour standards. The social partners agree that modern shipbuilding is an attractive sector with an innovative character that offers many opportunities for highly skilled people, flexible working places and high-tech job environment. In respect to core labour standards, the working group is focusing on best practices in the European industry and improvement of ILO principles outside Europe, so that shipbuilding workers around the globe are provided with decent working conditions.
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 proposals and, if they wish, conclude contractual agreements.
Following successful activity in 2009, in 2010 the group re-elected Jenny Braat as the Chairwoman of the Social Dialogue Working Group and the Chairwoman of the Social Dialogue Committee.
Social Dialogue
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8. Ship maintenance, repair and conversion sector

Market situation
This chapter provides an overview of the ship maintenance, repair and conversion business, built up over the year 2010. Information is gathered by national situation reports that form a regular and important part of information exchange in the SMRC Group meetings. Ship Maintenance, Repair and Conversion is a special business segment, in many aspects different from the ship newbuilding industry. Ship maintenance and repair is typically a short term activity. Most of the time, the ship is drydocked and stays in dock on average between 10 to 12 days.The sector has the characteristic of a service industry with the aim to assure safe shipping and maritime operations and clean seas. Ship conversion is closer to newbuilding yards activities in time scales for each job. However, a refit requires a totally different approach in having the flexibility to constantly accommodate changes in the work plan, according to the satisfaction of the client(s). 2009 marked a return to more normal market conditions for the maintenance, repair and conversion yards in Europe, after the very 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. In the beginning of 2010, the economic recession stroke the industry hard. Shipowners cut in the budget for the maintenance of their fleet. Hardly any conversions were reported. A repair bill in normal economic circumstances exceeds one million in average reaching values of around three million . The actual market conditions have seen a reduction of about 25% on work content as ship operators/owners try to reduce costs due to lower freight rates on one side but also because that bill would be settled by using bank credit allowances and repaid to the lender during the next ship operation period (usually three years). The actual credit restrictions in shipping are creating additional difficulties to the ship operators/owners and consequently to SMRC yards. The real danger of such a situation is that the actual crisis causes a reduction of quality on the ship operations with the natural consequences to safety and environmental operations. After the summer of 2010, the market felt a little increase by means of the number of enquiries, signed contracts and a wider scope of work. Most yards had a work horizon of more than 3 weeks compared to the horizon of one to two weeks earlier in the year. In the 1st quarter of this year, the industry looks with some optimism to the period ahead. In the North West European yards, conversion contracts are reported, enquires for offshore maintenance works grow and shipowners have made budgets on the maintenance of their fleet. Strong competition is felt from the Black Sea area due to lower labour cost. Margins and budgets for 2011 are more or less the same as in 2010.
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Ship maintenance, repair and conversion sector
CESA 2010 - 2011
31
SMRC Meetings
In accordance with usual practice, the SMRC Group held three meetings during 2010. The first Standing Committee was held in Londen on 15 March, the second Standing Committee was coupled with the Group Annual General Meeting held in Amsterdam on 10 June as part of the CESA General Assembly. The third meeting was held in Athens on 24 September. The SMRC meetings remained focused on goals mentioned in earlier reports: Raising awareness of the sector Representing the maintenance, repair and conversion yards interests in CESA working groups Encouraging innovative thinking about ways to make best use of European yard capacity and capability Awareness was raised as the group succeeded to participate in European funded project proposals which will hopefully be granted in 2011.The Groups expertise will be used for EU funded research and development projects.The COREDES working group was a trigger to get R&D going for the ship repair yards. Result of all this work in 2010 is that ship maintenance and repair is reflected in EC calls for project proposals in the context of the 7th Framework Programme for Research and Technological Development. The Brochure for the SMRC was developed and circulated all over Europe. This brochure is intended for opinion-makers in Europe, so they will be properly aware of the size and significance of the sector in Europe. The Executive Secretary represented the Group in Hamburg on an Optimising Ship Maintenance Conference and during the SMM also in Hamburg in November 2010. The SMRC group delivered input to the Technical Advisory Committee of CESA. It is a high priority of the Group to be and stay involved in IMO developments like Performance Standard Protective Coatings, Ship Construction File and Energy Efficiency Design Index.
MAINTAINING, REPAIRING & CONVERTING SHIPS IN EUROPE
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MAINTENANCE, REPAIR & CONVERSION TURNOVER 2006-2010 2006 34 100 n/a 100 747 86 330 66 57 525 90 180 121 69 275 300 3080 2007 33 140 n/a 135 955 108 351 74 49 664 90 304 132 54 350 252 3691 2008 55 170 n/a 135 1100 117 395 87 n/a 750 110 235 172 46 403 270 4045 2009 49 160 n/a 123 1100 87 350 61 n/a 485 48 250 146 26 280 280 3445 2010 46 180 45 120 937 38 270 60 n/a 420 50 350 90 34 253 284 3177
Croatia Denmark Finland France Germany Greece Italy Lithuania Malta Netherlands Norway Poland Portugal Romania Spain UK TOTALS Source: SMRC - CESA
The formalities
Mr. Frederico Spranger from Lisnave served his second year as Chairman of the SMRC group. Mr. Costas Kokkalas (Nerion/Elefsis) served as well his second year as Vice-Chairman of the Group. The handover of the secretariat was planned and scheduled for the 1st of January 2011. After nearly 15 years of good work, Mr. Nick Granger resigned from his position and the Group unanimously choose Mr. Sieger Sakko (Holland Shipbuilding) as his successor.
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9. Naval sector
In line with the measures taken by most of the Member States of the European Union to reduce their deficits, their respected Defence budgets are under heavy pressure. This has or will result for the Navies in less new building in combination with putting out of service of existing ships.This situation is expected to continue, at least for a couple of years. It means that, for our naval yards, the export market will be even more important than in the past. Fortunately, the on-going shift in the worlds economic balance and trade patterns and the on-going increase of piracy acts have generated an additional need in naval presence and thus in naval equipment. This is especially the case in Asia and to a lesser extent in the Middle-East and Latin America. Although the recent developments in the Arab world have slowed down a number of projects, the overall outlook has not changed. A number of developments are to be watched. First, the ever growing tendency for countries to increase their local content either by building locally under licence or by other forms of compensation. This means that new business models need to be developed incorporating local industry, equipment manufactures and/or the client itself. As a next step, participation in the local in-service support of the vessels will create new business opportunities and a basis for on-going presence. Secondly, a number of fast growing economies such as China and India are now concentrating on the construction of equipment for their home market but they will soon be in the position to offer products on the open market. Here, only product superiority will count and thus the on-going need to improve our products both in capability and in production cost. It is obvious that both these developments go hand in hand. Finally, there is the availability of wellmaintained ships on the second hand market as a result of the shrinking Western fleets. Although the respected selling Governments will be in control, in many cases the transfer of these vessels may result in considerable business for some of our yards in terms of maintenance, upgrading and training. The coming years will demand a lot of initiatives of our naval yards to secure their global position. It will mean a shift of focus from the production of the initial hardware towards the creation of very flexible naval capabilities both at home and in the export market. This will change our companies into smaller operations with a higher quality workforce with more focus on operational knowledge, product development (R&D), project management and in-service support (monitoring, maintenance and operational services). Last year has seen five of the CESA naval yards join forces together with CESA to collectively develop a first draft of a Naval Strategic R&D Agenda.This document which is due in September 2011, will not only help the European Defence Agency (EDA) to plan its R&D agenda for the next years, but gives each company insight in its individual R&D needs as well as in the needs of our business at large. This exercise involved the exchange of privileged knowledge of a large number of experts from the companies as well as from institutes and our clients without disturbing the individual commercial interests.The exercise covered both the system itself and the in-service support of the systems in line with the direction business is developing as described above. At this moment, the next steps are discussed (where appropriate in consultation with EDA) to improve the conditions to carry out the necessary R&D and to get access to funds of the European Commission (FP8) in line with the Lisbon Treaty. During the last CESA General Assembly, it was decided to highlight naval shipbuilding as a significant part of CESAs interest and, consequently, in its initiatives. In this respect, the CESA Naval Group will raise its profile in the coming period.
Naval sector
CESA 2010 - 2011
34
10.
Renewable off-shore energy
In the upcoming years, the harvesting of the potential of oceans and seas will play a critical role in helping Europeans to achieve the Europe 2020 objectives of smart, sustainable and inclusive growths. There is a high level of awareness of the need to reduce our dependence on fossil fuels due to technology, climate based or geopolitical threats. The development of a sustainable energy strategy requires increasing use of renewable energy and exploitation of alternative sources.
According to the Ocean Energy: Prospects & Potential study of Isaacs & Schmitt, the ocean energy potential could reach 102,000TWh/year, accumulated from wave energy (45,000 TWh/year), ocean currents (400 TWh/year), tidal (1,800 TWh/year), ocean thermal (33,000 TWh/year) and osmotic (20,000 TWh/year). Exploration of ocean energy state has matured significantly over the last 5 years and large scale test installations are either developed or under development. It needs, however, further technological development to become economically viable and enter the markets. Off-shore wind energy has already been able to develop mature technologies and enter the energy mix in several European countries, revealing a huge potential. The European Environment Agencys Europes onshore and offshore wind energy potential study conducted in 2009 evaluated that offshore wind powers technical and economically competitive potential in 2020 is 2,800 TWh. In 2030, this could rise to 3.500TWh, enough to fulfill about 78% of the projected electricity demand in Europe for 2030 estimated at 5.100TWh. Should no spatial restrictions apply (use of space by shipping, military exercise, etc.), the technical potential for 2030 based on existing technologies rises to 30,000 TWh in 2030, seven times greater than the projected electricity demand. There is no doubt that there are many opportunities in this sector. There is a lot one can do on the oceans and seas, but very little without the right vessel that can do the job. European Shipyards have centuries of experience in developing and building hardware for the operation under tough sea conditions and their vast experience is already playing an essential role in progress to develop the off-shore renewable energy sector. The shipbuilders knowledge of the sea is an essential asset which can help to make the wind energy sector competitive also off-shore. European yards have gradually reduced their engagement in the commodity-carrying markets of tankers, bulk carriers and containerships. Instead, European yards have focused on niche products with high technology content, such as cruise ships, dredgers, off-shore support and many other specialised vessels where they have successfully established and defended their market leadership. They are, therefore, ideally placed to serve also the wind energy sector. Generally, customers that are seeking an off-the-shelf ship with low functional requirements and which do not operate the vessel but trade the ship as an asset prefer mass production shipyards in Asia. To harvest offshore renewable energy, the priority lies on a vessel which will perform soundly and will operate cost effective over its life-span. For many maritime operations, it is applicable what every craftsman can confirm: one cannot afford cheap tools. It is clear that wind farm developers require a wide range of services that can be done most efficiently with specialised vehicles, most of which have been designed and built at European yards.
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There were often reported bottlenecks in the supply chain, especially various types of ships for creation of the farms that could hinder their development. In terms of capacity, CESA member yards have delivered last year more than 300 ships with an average size of some 13,000 gross tons, which is approximately the size of a wind tower installation vessel ordered at the end of last year in Germany.Yards along the European coasts can successfully meet the requirements for additional vessels from the off-shore wind sector and the operators can greatly benefit from their proximity to the offshore wind farm. Many European shipyards can demonstrate a long list of references of highly satisfied customers from various maritime sectors. They offer in particular top engineering capabilities for new solutions, flexibility & optimal design for customer needs, low emission concepts, through life cost competitiveness and long-term competitive capabilities. Often the primary attention seems to go to the installation vessels. However, a number of additional products will be necessary. The sector expects that future developments will increasingly include wind farms at greater distance from shore as well as in deeper waters. Specialised vessel solutions will increasingly be required.There is no doubt that European yards can offer adequate solutions, with realistic potential to substantially decrease installation, operation and maintenance costs. European yards are particularly attractive in these markets because of their long track records and proven solutions. This is only a small list of examples of what has been built and is currently marketed by our member yards: research vessels, foundation installation, tower installation, cable layers, transition platforms, service, maintenance & crew vessels, floating structures/foundations, emergency & rescue vessels, etc. Strong growth is anticipated for decated crew and service vessels which provide safe and comfortable passage of service and maintenance personnel. Also in this area, the ideal solution depends on the local requirements. It is in yards across Europe that the most demanding operational requirements are turned into hardware solutions for services linked to off-shore renewable energy projects. CESA anticipates that new alliances and new business models will be developed in the future, which will engage the engineering and service competence of shipyards as an integral part. The European shipbuilding industry is looking forward to serving the off-shore renewable energy sector for joint and sustainable prosperity.
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11.
Intellectual property rights
In the context of shipbuilding IPR protection/IP leakage prevention awareness raising activities, CESA has realised the importance of IT security in yards daily operation.The perhaps single most important IP leakage results from lack of care in the daily communication of shipyards with their business environment. Large amounts of data are exchanged via various soft- and hardware applications. Due to the unique characteristics of shipbuilding production logistics and regulatory environment different from other high tech sectors, shipbuilding manufacturers are facing more challenges in applying traditional IPR protection tools. CESA believes that with a doubled layered protection, i.e. company IP policies and specific IT security measures, it would be much more effective to prevent yards IP leakage. Against such background, GuardSHIP (the European shipbuilding IP collective management organisation set up by CESA) has initiated a workshop in April 2011 inviting IT experts to inform yards about available IT security and examine the need to develop a shipbuilding specific IT security tool. The supply chain for shipbuilding is complex. The information flow during the building process is complex (class, owner, supplier, design offices, ). There are more joint research programmes where so many parties with different interests are involved. GuardSHIP believes that good IT tools can improve yards IP planning and management. In addition, at the IMO (International Maritime Organisation) rule making level, there is increased demand on design transparency where shipyards have to provide a lot of sensitive information which has never been provided before to owners and other relevant parties. A shipbuilding specific IT security tool will be able to play an important role in securing shipbuilding knowledge embedded in Ship Construction File (required by IMO GBS design transparency) to be stored on board of ships and at ashore archive centre(s) in the near future. An additional challenge will emerge with the mandatory requirement of the Energy Efficiency Design Index, which includes sensitive information which so far was not subject to regulatory requirements. The requests from China supported by other delegations to complement climate action by a technology transfer is viewed with substantial concerns. However, it can also be underlined that such technology transfer can be organised in a commercially attractive manner, which fulfils the need of both sides, i.e. technology providers as well as technology seekers. GuardSHIP has, therefore, included the IPR brokerage among its tasks. In this way, GuardSHIP could also facilitate such a request in a fair and sustainable way. Furthermore, the other prior areas of activities of GuardSHIP at present include also joint patent search (to prevent others from unfair market restrictions and avoid duplication of R&D efforts) and the development of a GuardSHIP Label to document a strict IP compliance policy.
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Intellectual property rights
12. Reports of the National Associations
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.
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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 Lloyds Register Fairplay (LRFP), result from different methodologies and definitions related to the data-collection (e.g. LRFPs point of determination is the hull-construction, for CESA it is the ship delivery by the contracted yard. Consequently, countries with strong outfitting 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 reflected by the CESA approach.
Reports of the national associations
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38
CGT
CGT
CGT
1,000,000
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
100,000
0
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
1,200,000
1,400,000
1,600,000
200,000
400,000
600,000
800,000
G ER M AN Y
N ITA Y AN ER M
ER
Overview
AN
N O RW AY E N C
IT
ET
AL
ER
LA
FR A
RO
AN
IA
N ET H ER LA N D S
C RO AT I A FR AN C E RO M AN IA AR K D EN M FI N LA N D PO LA LI IN SP A
ITA LY
LY ET H ER LA N D S N O RW AY
SP
AI N
RO M AN IA N IA
RW AY
RO
AT
IA
FR
C RO AT N D D
SP AI
AN
FI
LA N
PO LA FI N LA N M AR K U AN IA
N
PO
LA
EN
D EN
COMPLETIONS IN 2010
NEW ORDERS DURING 2010
ORDERBOOK - 31.12.2010
BU
AR
LI
LG AR
LI TH
TH U
IA
AN
IA
D TH U AN IA BU LG AR IA U K PO RT U G
PO
R TU
AL
RE
EC
U K BU LG AR IA G RE EC E PO RT U G AL
AL
Source: CESA
Source: CESA
Source: CESA
CESA 2010 - 2011
39
12
VALUE OF COMPLETIONS in 2010

UK 0.1% BULGARIA 0.6% SPAIN 11% ROMANIA 3.1% POLAND 2.8% PORTUGAL 0.04% FRANCE 7.2% CROATIA 3.5% DENMARK 2.8% FINLAND 5.2%
VALUE OF ORDERBOOK at 2010

SPAIN 12% BULGARIA 0.5% CROATIA 5% DENMARK 1% FINLAND 3% FRANCE 4.4%
PORTUGAL 0.1% ROMANIA 4% POLAND 1%
NORWAY 16%
19 366
MLL. EUR
NORWAY 15%
27 041
MLL. EUR
GERMANY 24%
GERMANY 27%
NETHERLANDS 10% LITHUANIA 0.7%
GREECE 0%
NETHERLANDS 10% LITHUANIA 0.4%
ITALY 15%
Source: CESA
ITALY 17%
Source: CESA; *CESA estimations based on IHS-Fairplay data
SHIPREPAIRING AND CONVERSION TURNOVER 2010

1,200
1,000
800 in mill. EUR
600
400 Source: CESA
200
AN IA
AL
IA
AN D
RE EC
AN
AY
ER M
PO RT
PO
FR
ER L
TH
RO
IT
RW
12
ET H
WORKFORCE 2010 *
18,000
16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0

IA IA IA S D D IA Y K AY IN LY AN LA N AN AR AN AT LA N EC AR C N U SP A ITA AN RW LA M FI N PO ER FR EN RT U RO M U LG H RE M G AL E D K E
Source: CESA
RO
ER
LI
BU
LI T
N O
ET
* Please consult notes on p. 72

CESA 2010 - 2011
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PO
RO
EN
M AN
SP AI
LA N
AR
AL
AN
AT
IA
Bulgaria National economy and policy development general situation

2010 marks a trend for slow growth of the Bulgarian economy in general. This growth is witnessed since the second quarter of 2010 with two consecutive quarters the second and the third ones showing growth compared to the previous quarter (0.5% in the second quarter and 0.7% in the third quarter). On annual basis, those figures are respectively 0.5% and 1%. In the fourth quarter, the growth of the economy increased to 1.5-2% on annual basis. Thus, the cumulative growth in 2010 is slightly over 1% compared to 2009; the expectations are this growth to continue, but not to exceed 3%. The main data for Bulgaria reveal slight increase in the GDP, continuing increase of the unemployment, slow recovery of the internal consumer demand, insignificant increase of the investments. The GDP for 2010, calculated in euro, amounts to 36,033 million euro in total and 4786.8 euro per capita.The gross added value by the national economic agents amounts to 60,645.7 million leva.The real amount of this parameter is 0.2% higher compared to 2009.The industrial sector creates 31.2% of the value added, which is 0.5% higher than in 2009. The annual inflation for 2010 (December 2010 compared to December 2009) surpassed 4% according to all three indices: 4.5% ICP (0.6% for 2009), 4.4% HICP and 4.2% for the small consumer basket (compared to 2.7% for 2009). In the fourth quarter of 2010, the average monthly salary increased with 4.9% compared to the third quarter and reached 669 leva. The total number of employed people, at the end of December 2010, decreased with 50,000 and reached 2.15 million people. At the end of December 2010, the number of employed on labour agreements decreased with 106,000 (4.7%) compared to the same period of the previous year.
(Sources: National Statistical Institute, National Employment Agency)
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Association portfolio
At the end of 2010, the number of BULNAS members was 35, and, in March 2011, it reached 38 including all Bulgarian Shipyards and Marine Equipment producers, Design Offices,Technical University and Naval Academy, etc.
Shipyards Employees
The trend for reduction of the personnel in the shipbuilding and shiprepair sector continued in 2010 as well. At the end of 2009, the total number of employees in the shipbuilding and shiprepair branch was 4,968 people, while at the end of 2010 this parameter is 4,250 people, or the reduction of the personnel is with 17%.
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Introduction of the national shipbuilding industry
Products
The product portfolio of the shipbuilding and ship repair yards, members of BULNAS, includes: Product Carriers Bulk Carriers General Cargo Ships Passenger Vessels Offshore Supply Vessels (including Anker Handlers Tug Supply) Yachts, Barges, etc. Shiprepairs & ship conversions Naval Vessels Construction of floating reinforced concrete facilities
Development in shipbuilding and shiprepair industry

While the Western European shipbuilding showed the first signs for overcoming the recessions, in Bulgaria the pessimistic scenario unfolded and, in 2010, the country suffered the worst phase of the economic crisis. The Bulgarian shipbuilding and shiprepair yards had and are still having problems with securing financing of the shipbuilding contracts which was combined with lack of new orders.
Shipbuilding data for the year 2010

N Completed (of which for foreign account) New orders 4 4 0 0 3 3 GT 43. 480 43. 480 00.000 00.000 96.300 48.807 CGT 36.274 36.274 00.000 00.000 96.300 48.807
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(of which for foreign account) Orderbook (of which for foreign account)
In 2010, two 21,100 DWT bulk carriers and two 9,800 DWT General Cargo ships were built in the Bulgarian shipyards. The total GT of the newbuildings is 43,480 GT. There are no new orders.
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Croatia National economy and policy development general situation

Croatian economy and shipbuilding industry, as well, passed through tough times. The main goal of economic policy is to strengthening the national economy, through strengthening of entrepreneurship, increasing of employment, strengthening of the social security system, reduction of public spending and an increased emphasis on the role of science and the implementation of new technologies in the economy.
Economic indicators for 2010

GDP, bn USD GDP per capita, USD Population, m (census) Industrial production (%) Inflation rate (%) Unemployment rate (%) Exports, m USD Imports, m USD Net wage and salary, EUR Exchange rate HRK:USD Exchange rate HRK:EUR CNB's international reserves (m EUR, end of period) Persons in employment 60.8 13,750 4.42 -1.4 1.1 17.6 11,806.9 20,053.9 733 5.500015 7.286230 10,660.0 1,418,779
Sources: Central Bureau of Statistics (CBS), Croatian National Bank (CNB), Ministry of Finance (MF), Financial Agency (FINA)
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Introduction of the national shipbuilding industry

The shipbuilding sector is still one of the most important industrial sectors of the Republic of Croatia, by its share in employment (~ 2.5%), by its GDP share (~ 1.2%) and by exports (~ 12%). Due to the size and complexity of the construction of ships, a significant part of the Croatian industry, especially small and medium-sized enterprises, are, on the basis of sub-contracts and their operations, directly dependent on this sector of industry. This branch of industry represents a significant source of employment in the Croatian regions (Istarska County, Primorsko-goranska County and Splitsko-dalmatinska County).
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The Croatian Governments policy to close the negotiation for EU accession is still one of the most important processes in 2010. Negotiations are focusing on the adjustment of the Croatian economy and industry with the standards, rules and regulations valid in the EU.
The Croatian shipyards (excluding Viktor Lenac as the only privatised shipyard) are still stateowned, but within process of accessing EU, they are offered for privatisation (international public tender) and need to be restructured.Through restructuring process, they need to implement financing, organisational, technological and employment restructuring. The restructuring process should enable the Croatian shipyards to work efficiently on the international shipbuilding market and under market principles, all in accordance with existing EU rules and regulations. Also, all existing State Aid(s) are adjusted according to EU regulations (Shipbuilding framework). Expected revival of the Croatian shipbuilding industry (which is a final goal) should largely contribute to regional and social stability, as well as to the national economy.
Since 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 (first privatised 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 within the Croatian Shipbuilding Corporation (CSC).The CSC is located in Zagreb and beside other duties is also acting as National Association of major Croatian Shipbuilders.
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The total workforce in all above shipyards amounts to 8,792 (newbuilding and shiprepairing). The production portfolio consists of different kinds of newbuildings of various size(s), repair, conversion and offshore constructions.
By the end of 2010 the orderbook consist of: TR (7,3%), WA/WD (11,05%) BC (12,19 %) PV (9,47%) GF/GS (15,47%)
TR (7,3%) GF/GS (15,47%)
WA/WD (11,05%)
PV (9,47%) BC (12,19 %)
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N Completed (of which for foreign account) New orders (of which for foreign account) Orderbook (of which for foreign account) 14 10 8 4 26 18 GT 394.067 300.024 171.986 52.586 624.924 385.524 CGT 277.709 215.669 126.486 64.230 510.607 350.907
(approx. value)
Mill.EUR
682 565 315 119 1.322 1.043
Denmark Shipbuilding
In 2010, member yards of Danish Maritime completed ten merchant ships totalling 463,300 gt or 204,700 cgt. In comparison, 14 merchant ships totalling 555,600 gt or 274,500 cgt were completed by members of Danish Maritime in 2009. Direct and indirect employment at the shipyards was approximately 2,800 at the end of 2010 of which 1,700 were in newbuilding and 1,100 in repair. After five years of strong growth, the global shipbuilding industry was greatly affected by the economic crisis in the second half of 2008 and in 2009. In the summer of 2009, the largest shipyard in Denmark, Odense Steel Shipyard, announced that it is to stop building ships when the last order is delivered at the beginning of 2012. Shipbuilding capacity has consistently been increased in several countries in the past years leading to overcapacity. During the crisis, this has contributed to the closing of many yards all over the world. However, Danish yards have built up expertise in building small specialised ships and these segments are not in a similar way characterised by structural overcapacity. In 2010, the global shipbuilding market began to show signs of improvement even though the extraordinarily high level of orders which was seen in 2008 and the first half of 2009 was far from achieved. Also Danish shipyards and suppliers of maritime equipment look to the future with optimistic eyes.
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Shiprepair and conversion

The level of activity at the Danish repair and conversion yards was high in 2010. In Denmark, two repair yards offer dock capacity for ships with a length of more than 200 m. and a number of yards offer dock capacity for smaller vessels. In addition to shipyards, Danish Maritime also includes producers of maritime equipment and suppliers of maritime services as members.
Finland General economic situation

The Finnish economy has recovered partly from the economic crises. GDP growth for 2010 was about 3% and the forecast for 2011 is 4% and for 2012 about 3%. In 2009, GDP contracted by over 9%. The main reason for the plunge in 2009 was the drop in exports by 20%, but the 15% fall in investment was also an important factor. Last year, both of these demand sectors recovered by 6%. Private consumption advanced by 3%. This year, export and construction will pick up nearly 10%. Private consumption will increase slower than in 2010. The employment situation has improved more quickly than anticipated. In 2011 and 2012, the number of employed people will grow and the number of unemployed people will fall. The unemployment rate will fall to under 8%. Consumer price inflation increased slightly during the last year.This year, the price level will increase faster and reach 2.5%. Reports of the national associations
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Shipbuilding
The Association operates as a branch association of The Federation of Finnish Technology Industries. Leading shipbuilding and ship repair yards, marine equipment manufacturers, turn-key suppliers in the field 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 economic policy among the companies in the sector. The number of members is 61 in April 2011. 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.
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The total order book at the end of 2010 included 6 vessels or 149 000 cgt. The value of the order book was at the end of 2010 approx. EURO 0.9 bn. The new building shipyards have received three new orders during 2010. The global recession has reflected to the whole network of shipbuilding industry, the most to shipyards themselves and their close subcontractors. After strong boom of cruise and car ferries, shipbuilding in Finland has been able to expand their order portfolio to specialised vessels like polar research vessels and multifunctional ice breaking supply vessels again. The Turku shipyard has delivered the world biggest cruiser by the end of 2010. After this delivery, Turku shipyard is working with lower capacity. In October 2010, Turku shipyard received an order of a new cruise ferry which will be the most environmentally friendly big passenger vessel to date; it will use LNG as the fuel. The ship has no marine emissions and its aerial emissions are extremely low. The ship has been specially designed to operate in the delicate and shallow-water archipelago environment.The wave forming and noise generation have been minimised. The cruise ferry will operate on a route between Turku and Stockholm.
Ship maintenance, repair & conversion

The activities in the ship repair were at the same level as in 2009.
Offshore sector
The offshore sector is under low working load, but in 2010 the sector has been activated with more enquiries and, because of rising oil price, more activity has already been seen. Some countries like Russia and Brazil have announced major investment plans regarding offshore exploration and shipbuilding. At the end of 2010, the direct employed workforce at the yards consisted of about 3,800 people (in 2009 there were 3,200 blue collar workers and at end of 2010 2,700) including offshore and ship repair. At the same time, 400 people were working at shipyards employed by subcontractors. Because of the high retirement level in the branch and trust to the future require to recruit new people, a special imago campaign is still going on with an aim to attract young people to study the branch for the times when the demand will recover.
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France
GICAN, the French marine industry association, is now representing the interests of an industry with a workforce of 40,000 yards, equipment and services providers, active in naval as well as civilian spheres, for the building and maintenance of sophisticated ships and equipment, having also interests for offshore and marine renewable energies.
Developments in civilian shipbuilding

STX-France, with a main yard in Saint-Nazaire and a smaller in Lorient, is one of the major cruiseship builders, and as such is on a relatively healthy market. The last cruiseship, Norwegian Epic, delivered mid-2010, with 153,000 GT, is the biggest built by the yard to-date, and also a revolutionary one by its esthetics and by offered entertainments. Presently, Saint-Nazaire is building three cruiseships (one luxury medium-size ship, and two very large ships), and Lorient is building a dredger and an offshore patrol vessel. Following the deliveries of LNG-fuelled ferries built in Lorient in 2009, STX-France is developing projects for much bigger vessels with such propulsions, and is also innovating with a recent order received for a small electric ferry, having energy storage through super-capacitors. Smaller players, PIRIOU, CMN, SOCARENAM and ALLAIS, builders of fishing vessels, various offshore vessels, medium-sized ferries and megayachts, are globally well doing, for French owners as well as for export, as illustrated by a four tugs order won by PIRIOU for Algeria.
Developments in ship maintenance, repair & conversion
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In a context of international strong competition, main yards (Arno-Dunkerque and Sobrena) have managed to have a steady business. Two repair yards have re-started: Saint-Nazaire under the Eiffel group banner and Marseille yard in the San Giorgio del Porto group. Also, there are new common offers from newbuild and repair yards, towards lifecycle services. There is a tendency towards globalised (fleet) naval contracts. From its side, the main actor in this field, DCNS, is also taking orders from other players than the French navy.
Developments in naval shipbuilding

The two main programmes for the French navy, the Barracudanuclear submarines and the FREMMfrigates are on their way. Submarine programmes co-operations with India and Brazil are on-going. STX France will, this year, transfer to DCNS, for completion of work, the third LHD&command vessel to the French navy (sister ship to Mistral and Tonnerre, highly manoeuvrable (pod-propulsion), versatile and efficient vessels). CMN is delivering the first of the Baynunah corvettes to Abu Dhabi.
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Germany General situation

The economic development during the year 2010 improved faster and stronger than expected. Based on the recovery of world trade and the strengthening of the companies competitiveness, the export-oriented industry was able to expand its production again. Due to economic stimulus packages of the government, past labour market reforms and more flexible working time arrangements, the employment situation has remained relatively stable. All this helped to strengthen the domestic demand too. Hence, the GDP for the whole year increased strongly by 3.6% compensating most of the decreases in 2009. However, the German shipyards did not benefit from the general economic improvement. In order to reduce the increased deficit financing, the government did not prolong the financial support programmes for the companies, which were also helpful for the shipbuilders. Combined with the reluctance of banks concerning ship financing, it became very difficult for the yards to offer attractive financing arrangements for potential customers. As the production based on orders before the crisis was rather stable during the year, the total turnover of all shipbuilding activities increased to more than 7.5 bn including an export share of nearly 75%. However, the utilization of the yards decreased step by step over the year and forced the companies to personnel reductions. Thus, the total number of employees decreased by about 1,200 persons resp. 6%.
Shipnewbuilding
During the first three quarters, the newbuilding demand remained sluggish. In the fourth quarter, however, some considerable newbuildings were ordered bringing the total new order volume for 2010 to 24 ships with 653,000 CGT and a contract value of 2.7 bn . The export share climbed to 97%. This volume was significantly higher than 2009 but too low for a full year employment of the yards. About two thirds of the new orders (in CGT) fell upon passenger vessels and yachts. With a contract for a wind turbine installation vessel, one yard succeeded in entering the promising offshore wind market. Additionally, another yard got an order for the construction of a transformer platform for an offshore wind farm. The production was still rather high and comprised 49 ships with 975,000 CGT and a contract value of 4.7 bn . Export deliveries made up 87%. Deliveries showed a broad diversity of ship types but passenger ships and yachts reached the main share with 49% whereas containerships decreased to 15%. As the volume of new orders was much lower than the deliveries and, in addition, seven contracts with 116.000 CGT and 0,3 bn have been cancelled, the orderbook as per end of the year fell to 74 ships with 1.5 m CGT and a value of 7.4 bn . That means that the production level during the next two years will be lower than before raising severe problems for the future workload of the yards involved. The yards have already made substantial progress with focusing on high-value ships. Passenger vessels reached a share of 60% of the orderbook (CGT) followed by roro cargo vessels
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with 15%, mega yachts with 10% and ferries with 5%. The remaining 10% included product tankers, containerships, heavy load carriers and 26 non cargo carrying vessels like patrol boats, research vessels, dredgers, pilot boats and wind turbine installation vessels. However, further new contracts are urgently needed and the yards are making every endeavour to find new markets and technological innovations. Nevertheless, to remain competitive against the subsidised yards in Korea and China, the German yards need political support from the German Federal Government as well as from the EU Commission.
Repairs and Conversion

The repair and conversion business of German yards also suffered from the crisis and led to a decrease on turnover by 12% to about 940 mill . 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 and sometimes only rent the docks and doing the work on their own responsibility. Furthermore, because of the break down in the newbuilding market, more yards are competing for repair and conversion contracts. The competition also increased with yards in Eastern Europe and new repair capacities in the Middle East. However, there are some promising potentials for the yards by the increasing world fleet, the high share of old vessels and the refitting demand due to tightened rules for ballast water management, slow steaming operations, emission reduction and exhaust gas cleaning.
Naval Shipbuilding
The German shipyards with naval shipbuilding activities are totally privately owned and are also engaged in merchant shipbuilding. Their situation remains very difficult as demand especially in the international surface ship market was rather low and the competition with mostly state owned or state dominated shipyards in other countries was 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. More and more yards in these countries are also trying to enter the export market.The total turnover in naval shipbuilding and repairs in Germany amounted to about 1 bn .
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Greece
Reports of the national associations The Greek economy is in the midst of a deep crisis, characterised mainly by a large fiscal deficit, huge debt and continued erosion of its competitive position. Meanwhile, the global crisis amplified the cumulated negative effects of these chronic weaknesses and accelerated the downturn of the economy. In 2010, the general government deficit widened to a double-digit percentage of GDP (15.4%) while the public debt climbed to 127% of GDP.
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Greece is now under the EU-IMF financial rescue plan - which the government has activated severe austerity measures were decided that will drastically increase tax revenues and cut spending. Inflation is at 4.5% and the unemployment rose to 14.5% of GDP.
Developments in shipbuilding
Nothing spectacular towards improvement of the shipbuilding industry was noted in 2010. Building facilities concentrated on naval work. No new orders were placed with our member yards. During 2010, Hellenic Shipyards S.A. (HSY) had no commercial shipbuilding / ship-repairing activities. HSY is now part of Privinvest Shipbuilding, an affiliated company of Abu Dhabi Mar.

Despite the fact that the world financial situation has given the ship repair and shipbuilding industry a severe blow, a problem which especially for the EU yards is still continuing, our member yards managed during 2010 to survive although the competition from the yards east of us (especially from the region of Tuzla in Turkey, the prices in these yards continued to remain at very low levels and this coupled with the weak US dollar made Turkish yards an unbeatable opponent for most cases, particularly those requiring large steel repairs) and in the Adriatic (where several ships were diverted due to prices) is our main problem as usual causes us great concern. With a total ship repair revenue of 16.4 million euros, Elefsis repair turnover was down 43% from the previous year.

HSY continues its activities for the submarines programmes of the Hellenic Navy. Elefsis shipyards continue the Naval new-construction programme involving the completion and delivery of three Fast Attack Missile Crafts for the Hellenic Navy; delivery of one vessel of the same class.
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National situation
The strong global recovery registered in 2010 had allowed to look at 2011 as the year of a possible positive stabilization of expectations. On the contrary, the first months of 2011 have reported a slow-down trend which, although not expected to endanger recovery, will make it weaker. Many are the factors that are playing against: increase of commodities prices, the political turmoil in North Africa and in the Middle East and the problematic control of some sovereign debts.
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Italy
In Italy, the growth of GNP has registered 1.1%, which is encouraging, but still below the eurozone average figure. This result was achieved thanks to a good recovery of exports towards emerging markets, pushed by the strength of the Made in Italy brand. Positive has also been the trend of orders in the manufacturing sector, particularly for SMEs. Industry expectations show that the fall of employment in 2010 is wearing out. However, workforce utilization is expected to remain low in those sectors where production is very much below the pre-crisis level. Forecasts for 2011 show that the country GNP should not exceed 1%, also due to a likely contraction of exports following the already mentioned political tensions in North Africa an important market outlet for Italian companies (6.7% of foreign turnover) and in the Middle East (5.2% of sales abroad). Even if the growth in 2011 shall be moderate, Italy should not be threatened by the debt crisis in the Eurozone. As a matter of fact, the national public debt, although considerably high, is under control and it is moreover balanced by a high level of private saving.
Shipbuilding
Notwithstanding a slight increase in 2010 (39 Mill. cgt), the demand for newbuildings remains insufficient to feed the worldwide productive system with continuity.This situation, which applies to both standard and high-tech productions, is creating a worrying unbalance between offer and demand with a consequent pressure on prices. As for cruise ships the leading product of Italian shipbuilding 11 orders only were achieved in the period 2008-2010 compared with 38 of the years 2005-2007. However, the national industry has proved capable of maintaining its market share in this segment having achieved, in the last three years, 45% of the available orders: the same share of the previous boom period, clearly characterised by greater volumes. Particularly significant is the contract for 2 new-class cruise ships concluded in 2010 by Fincantieri with Princess Cruises.
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The cruise sector appears still sound even if the demand for new ships is expected to remain practically on half the levels of the past. As a matter of fact, in this market phase, shipowners aim at improving profitability at the detriment of growth, thus pursuing a policy of investments restraint. Diversification through alternative civilian productions, such as mega-yachts and offshore units, however, has not proven sufficient, at present, to ensure the production continuity required to make up for the order decrease in core productions. In the light of the above considerations, and of the Italian shipbuilding assets, high value products such as cruise ships will remain, therefore, the reference segments, even in a weaker market context. Medium-small yards are basically positioned in marginal market segments - both for products, dimensions and characteristics in order to limit competition. However, notwithstanding this choice, they are facing problems in putting together a sufficient workload. A way out from this situation could be the launching of a programme for the replacement of small size obsolete units with new, eco-friendly ones.
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In short, in the medium-term, shipbuilding is confronted with a smaller and more competitive market which will make the objective of ensuring production continuity very difficult to achieve for the existing yards. Thus, an adjustment of capacity to the more challenging market situation seems necessary.
Shipbuilding Production (of which for foreign account) New Orders (of which for foreign account) Orderbook of which for foreign account)
No. 35 15 5 3 21 13
GT 609.104 396.771 287.425 282.475 944.700 703.700
CGT 766.122 516.868 289.729 278.287 1.085.688 815.687
Euro Mil.
(approx. value)
2.926 2.149 1.181 1.119 4.490 3.330
Naval shipbuilding
As for naval production in Italy, it is totally represented by Fincantieri, who is the reference partner for the Italian Navy and Coast Guard as well as for other State Corps. Moreover, the company takes part in important European co-operation programmes, such as the one with the German Submarine Consortium for a new generation of air independent submarines, and the one with DCNS for the binational FREMM programme, concerning frigates of new generation for the Italian and French navies. At international level, the company has obtained significant achievements in India, Turkey, Malta, Iraq, United Arab Emirates. Moreover, through the acquisition of Manitowoc Marine Group, the company has secured its access to the US defence market. During 2010, the following important events have been registered: the delivery of 26 RB-M units commissioned by the US Coast Guard and built by Fincantieri Marine Group; the acquisition of two stealth units for the United Arab Emirates; the acquisition by Fincantieri Marine Group of 2 additional LCS (Littoral Combat Ship) units, of 1 oceanographic ship for the National Oceanographic and Atmospheric Administration and 39 RB-M units for the US Coast Guard. In the light of the recent achievements, the weight of the naval segment has grown and now accounts for more than one third of the orderbook.
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Shiprepairing
The worldwide economic crisis has negatively affected also shiprepairing and conversion activities. In 2010, the Italian turnover reduced by approximately 15% compared to the previous year. In the Mediterranean area, the competition carried out by Turkish yards, as Gemak-Tuzla and others, is heavily felt, the same accounting for a big portion of the repair market. Also strong is the competition from yards located in Montenegro, Croatia and Greece. In addition, Bulgarian and Romanians yards continue to be quite attractive for owners due to their low labour cost. Some signs of improvement have been recorded in the last months with an increase of quotation enquiries for repair works, for tankers in particular. Due to budget restrictions, shipowners tend to reduce the entity of repair works or to postpone dry-docking, up to the limit allowed by Classification Societies. However, this situation should produce a positive spin-off in terms of improved demand in the near future.
Assonave represents almost the entire national shipbuilding industry with 1 large company (Fincantieri), 1 medium-size company (Nuovi Cantieri Apuania), 1 Association which groups 7 smallmedium yards (ANCANAP), 2 marine engine manufacturing companies (Wrtsil Italia and Isotta Fraschini Motori), and 1 Marine Research Center (Cetena). The total amount of newbuilding yards is 16, including 2 Fincantieri yards for naval production. Moreover, the Association groups 19 shiprepair yards and 86 marine equipment suppliers. The total workforce of associated shipyards amounts to 11,640, of which: 8,538 in merchant shipbuilding 2,102 in naval shipbuilding 1,000 in shiprepairing The total employment in the marine suppliers sector - beyond the figures strictly relating to the Assonave group of suppliers - is well over 20,000 units. Reports of the national associations The merchant units portfolio basically includes cruise ships, ferries, mega-yachts, PSV units, 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.
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Lithuania
Macroeconomics the state and prognosis
According to the Statistics Department, the countrys GDP in the fourth quarter of 2010 as compared with the corresponding 2009 quarter increased by 4.8%. During the last quarter of the last year, most business activities were recording positive results.The surplus value grew fastest in industry - 12.2%, construction - 7.8%, trade, transport and communications - 6.0%. In the middle of the year 2010, the apparant public financial tendencies dominated. Though the total national revenue collection situation remained tense, the collection of many taxes is slowly returning to normal. Last year has been called the export year, but not the Renaissance period of the internal market. By the latest data from the Statistics Department, the transport sector actively runs up through the rapid export growth. In 2010, Klaipeda State Sea Port, together with Bting Terminal, loaded and unloaded 40.3 million tons of cargo, namely 11.1% more than in 2009. Klaipeda State Sea Port handled 31.3 million tons of cargo, namely 12.2% more, and Bting Terminal handled 9 million tons, namely 7.5% more than in 2009.
Economic indicators for 2010

GDP, bn EURO (2010) Population, m Industrial production (%) Inflation rate (%) Unemployment rate (%) Exports, m EURO Imports, m EURO Brut wage and salary, EURO Exchange rate EURO/LTL Persons in employment, thou. (2010) 27.41 3.244 1.6 1.2 17.8 15715.9 17650.2 614.4 3.4528 Reports of the national associations
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1344.0
Shipbuilding and repair industry

Situation and development
The Lithuania Shipbuilders and Repairers Association (LLSRA) brings together 29 companies. The largest association member companies - Western Shipyard Company Group members: Western Baltija Shipbuilding and Western Shipyard, Klaipeda Ship Repair Yard.These companies employ about 67% of the total LLSRA corporate employees and their turnover is around 80% of the total turnover of LLSRA. Lithuania Shipbuilders and Repairers Association companies currently employ 3,682 employees.
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During the eight years of the Association activity, the business turnover has increased 143% to 214 million in 2010, compared with 2003, when it was 88.05 million. In 2010, the produced metal constructions made 57,768 CGT. In 2010, LLSRA member companies turnover was 214 million, i.e. about 10% lower than the year 2009. LLSRA turnover and workforce dynamics within the whole life cycle is presented in the table below. Business year 2003 2004 2005 2006 2007 2008 2009 2010 Turnover (in mio EUR) 88 131 140 172 186 249 236 214 Employees (in numbers) 5092 5030 4464 4525 4832 4452 4111 3682 49 7 23 8 34 -5.5 -10 Turnover dynamics (%)
Lithuania Shipbuilders and Repairers Association member companies export makes around 90% of the total sales.
Key products developed by the members of the Association

Shipbuilding Ship repair, modernisation and conversion Repair of ships, boats, auxiliary port fleet Production of metal constructions Ship maintenance and repair Engineering-technological activity Technical research and analysis
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Western Shipyard Company Group acquired Baltija Shipyard and Baltic Engineering Centre.The acquisition of the companies will allow for strengthening of the position in the shipbuilding market. The managment of the aquired companies was handed over to the Western Shipyard. Thus, after the reorganisation and the merging of Western Shipyard with the Baltija Shipyard, all shipbuilding projects will be realised by Western Baltija Shipbuilding company, and ship design by Western Baltic Engineering. Though the continuing unfavourable economic situation last year affected and influenced the Lithuanian ship repair and construction industry, the LLSRA member companies are looking positively into the future. In the 2010, 9 vessels were built and 195 vessels were repaired, modernised and converted in Klaipeda. Small and medium-sized LLSRA member companies, flexibly and promptly responding to market needs, carried out the major part of the repair works on ships from various European countries and other continents in 2010. For the second year, Klaipeda city is successfully developing an integrated education and business center for the development of the Lithuanian maritime sector Baltic Valley; this programme includes the improvement of shipbuilding and repair technologies.The shipbuilding and repair industry development strategy, shaped by the Lithuanian Shipbuilders and Repairers Association, allows for:
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a monitoring system for the supervision of the development of initiatives, the possibilities for the development and correction of the strategy, the analysis and evaluation of the external business environment, the analysis and evaluation of the inner business environment, and the identification of the potential sector development initiatives and their evaluation in the context of the EU shipbuilding sector strategy LeaderSHIP 2015.
The Netherlands
The Shipbuilding cluster 2010
Newbuilding of seagoing vessels
Thanks to well filled order books, relatively few cancellations, and successful re-sales, Dutch shipbuilders in 2010 have been able to maintain production at a good level. Deliveries from Dutch shipyards amounted to 141 seagoing ships, totalling nearly 600,000 CGT and representing a value of over 2 billion euro. Production at foreign facilities belonging to Dutch large and smaller yard groups is seen to be increasing, and foreign affiliates of Dutch yards also turned out a very respectable production. Roughly 65% of the seagoing ships produced in The Netherlands are destined for export. In terms of sales, 2010 was a year far better than 2009, when newbuild orders dropped more than 80% compared to the preceding year. In 2010, approximately 70 orders for new seagoing ships have been booked, totaling 300,000 CGT, almost double the intake noted in 2009. The order book, slowly decreasing, at the end of year 2010 contained orders for 178 seagoing ships, totalling approximately 900,000 CGT and a value of nearly 2.8 billion euro. The availability of finance is crucial for the delivery of the ships still in the order book as well as for reviving order intake. Dutch yards and their national shipbuilding association have intensively talked about measures that could make finance available.
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Other shipbuilding categories

Apart from yards focusing on the production of seagoing cargo vessels and NCCVs, The Netherlands is home to numerous yards producing specialised vessels. Inland vessel builders often rely on the import of foreign hulls, which are outfitted to clients wishes at national yards - this process involves a close cooperation with many specialised equipment suppliers. In 2010, 130 inland ships have been delivered, totalling nearly 270,000 GT.These included also a relatively large number of non-cargo carrying vessels, ranging from dredgers to patrol ships or river cruise vessels.
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Looking forward, Dutch builders of river cargo carrying vessels are facing an inland shipping market with a rather severe overcapacity in the short term. However, infrastructural and maritime policy will increasingly be favouring inland shipping as an environmentally more friendly way of transporting goods within the country and to the European hinterland, which means a healthy long term business outlook. Dutch superyacht builders in 2010 delivered 30 vessels.The superyacht order book in The Netherlands is still at a healthy level, with 64 yachts worth over 2 billion euro scheduled to hit the water over the next few years.
Ship maintenance, repair and overhaul

Turnover in Dutch ship maintenance, repair and overhaul decreased compared to 2009, but, overall, profitability remained at healthy levels. Apart from regular maintenance and repair docking, Dutch maintenance, repair and overhaul yards also specialise in complex conversions, refits and overhauls of a wide variety of vessel types.
Equipment suppliers
Shipbuilding in The Netherlands is closely linked with approximately 750 companies supplying services and marine equipment to national and international yards and other maritime companies. Some of these companies are independent niche players, some are affiliated to the larger Dutch shipbuilding groups, others are subsidiaries of international companies. The majority of them are SME companies. In 2010, Dutch marine suppliers provided jobs to nearly 20,000 people, and total turnover amounted to approximately 5 billion, of which nearly half for export. Dutch marine equipment suppliers are, like the larger Dutch shipbuilders, increasingly internationalising their businesses, adding new global customers, outsourcing production work to foreign facilities and often setting up worldwide after sales networks to service demanding customers.
Employment and turnover in the total Dutch shipbuilding cluster

Employment in the total Dutch shipbuilding cluster amounted to nearly 33,000 full time jobs in 2010. The total production value of shipbuilders and suppliers combined was 7.2 billion euro.
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Norway
Norwegian shipyards delivered 58 vessels in 2010, vessels mainly serving the offshore industry. The value of the deliveries reached approximately 25 billion NOK. The year 2010 improved considerably the order reserve for the shipyards. 52 vessels were contracted to a value of approximately 19 billion NOK.
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The orderbook of the 25 shipyards with the main activities of building vessels, is approximately 32 billion NOK, containing 78 vessels. 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. A trend is that the value of each contract of an offshore vessel is higher than earlier as the ship contains more advanced equipment. The market for these vessels is global with rough and extreme areas. Compared to some European yards, the Norwegian yards are small in size even if they are amongst the most efficient and well equipped in the world. The large shipbuilding group STX Europe has its main office 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, equipment suppliers and the shipyards has resulted in the development of the advanced vessels from Norway. Through advanced fishing vessels, the demands in the North Sea oil field 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 Norwegian scale, for repair and conversion. The activity in Norway cannot be compared with the repair activity in Europe.
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Poland Developments in shipbuilding
Polish shipbuilding production decreased in 2010 again mainly as a result of the liquidation of the 2 biggest newbuilding yards in Gdynia and Szczecin. Gdynia Shipyards assets had been sold to different enterprises and, fortunately, on the area of shipyard currently production activities have already started by new shipbuilding and ship repairing companies. Reports of the national associations
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On the contrary, main shipyard assets in Szczecin had not yet been bought and consequently there is practically no activity so far. Successfully privatised Gdask Shipyard currently concentrates production activities in three main fields: shipbuilding, steel construction and for fast growing renewable energy sector (wind towers and foundations). Formar Northern Shipyard, member of REMONTOWA Group, currently acting successfully as REMONTOWA Shipbuilding, continued shipbuilding production in 2010 able to find niche segment in the market. The yard offers highly specialised ships, some of them being of a truly unique design. The wholly new phenomenon of Polish maritime market services is the network of design offices established in Poland during the last few years, acting globally on the basis of Polish graduates from our technical universities and academies.

Despite the crisis in shipping, lower number of contracts and fierce competition in repair market, the year 2010 can be seen as a relatively successful one in said conditions. All repair yards and enterprises reported figures at a total revenue of about EUR 350 mln.

The Naval Shipyard Yard management reached a court agreement with creditors in December 2009 and has started with a restructuring process. Activity in 2010 was concentrated mainly on navy units and repairs.
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Portugal
General situation
The Portuguese economy is going through a painful but gradual process of external adjustment. After a GDP contraction of 2.7% in 2009, last official information confirms a GDP annual growth in volume of 1.2%. The current account deficit of Portugal remained excessively large at 9.9% of GDP in 2010.
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There are signs of a turnaround in Portugal. In real terms, exports grew strongly. In terms of saving and investment, the adjustment has so far consisted mainly of a contraction in investment. Wage moderation has played a relatively modest role in Portugal, where labour markets are less flexible than in other European countries. In terms of macroeconomic forecasts for Portugal, it is pointed to a real change of -1.4% of GDP in 2011 and 0.3% in 2012, and the values of CPI inflation of 2.7% in 2011 and 2.1% in other years. It also emphasized the forecast of an unemployment rate of 11.2% in 2011 decreasing to 9.8% in 2014 and a current account deficit of 8.3% of GDP in 2011. In 2010, the shipbuilding and ship repair activities were still affected by the international financial crisis. Turnover recorded a contraction of 29% to 130 million Euros after having registered a contraction of 35% in 2009, mainly due to the sharp downturn on shipbuilding revenues. The Association of Naval Industries (AIN) is an Employers Association, with the main objective of representing shipbuilding and ship repair, and a diversified number of companies operating in related fields, notably, consulting services, equipment suppliers and maritime-harbour operators. Within this group assumes with a greater importance the yards subcontractors who represented around 13% of the total turnover in 2010. 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 fishing fleets, as it is the case of Lisnave and Vianayards, the maintenance of the Navy fleet, up to the small units for leisure or fishing. 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 2011 is still uncertain. AIN has inquired his members regarding their market expectations.The employers expectations for 2010 are positive for shipbuilding and negative for ship repair, reflecting the uncertainty for the financial and economic crisis outcome.
Shipbuilding
In 2010, the Portuguese merchant shipbuilding turnover registered a sharp downturn of 72% to 8.5 million Euros. The turnover of Vianayards, the largest Portuguese shipbuilding yard reduced to only 21% 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 79% of the total shipbuilding in 2010.
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Ship maintenance, repair & conversion

The well-known economic and financial crisis had a strong negative effect during 2010 on the maintenance/repair market, following what happened in the second half of 2009, with a significant reduction of the activity, caused by the natural reaction of ship owners to the freight rates reduction by cutting their operation costs either by postponing visits to shipyards within the Classification Societies allowances or by reducing the work content of the repair.
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In 2010, there was a decline in the market for ship maintenance and repair in Portugal.The turnover decreased by 20% to 116 million Euros. However, this figure still is in line with expectations for the year having in consideration the financial crisis. Thus, reflecting this reality, Lisnave, the largest Portuguese yard ended the year 2010 with a total of 114 vessels repaired, two less than last year, continuing, however, to bet on all types of vessels such as bulk carriers, dredgers, port-container general cargo, Ro-Ro, etc., with the tankers contributing significantly to the total of the activity. It is noteworthy that the 114 vessels repaired during this period were from 71 customers out of 24 countries, such as Germany (20 vessels), Singapore (15), Greece (13), Italy (8), Japan (7), as well as 6 from Denmark, 5 from Norway and 5 from Cyprus. Despite the difficult market situation, the geographic location remains a benchmark of competitiveness in the global Portuguese maintenance/repair industry.
Romania
National economy & policy development
Romania is the 22nd largest economy in Europe (and the 17th in the EU) by total Gross Domestic Product (GDP). Going through the most severe recession in two decades, Romania is relying on a 20 billion Euro package in loans from the International Monetary Fund (IMF) and the European Commission to finance its deficit. Romania began to feel the effects of the global downturn in financial markets and trade in the last quarter of 2008. In 2009, the GDP dropped by more than 7 percent, prompting the Government to seek an emergency assistance package from the IMF, the EU and other international lenders. In 2010, drastic austerity measures were implemented as part of IMFled agreement, and a further 1.9% contraction of the GDP was registered.The economy is expected to return to growth in 2011. Analysts forecast a growth in GDP of 1.5% in 2011, followed by a growth of 4.4% in 2012. Reports of the national associations
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Economic highlights
Inflation: The inflation rate rose to 8% in December 2010, more than double than the forecast percent of 3.4. IMF predicts that inflation will average 5.2% in 2011. Budget Deficit: The administration plans to narrow the budget deficit to 4.4% GDP in 2011, compared to the 7.8% in 2010, in line with its international borrowing agreements. In December 2010, Romanias Parliament approved an austerity budget for 2011 that will allow for these budgetary cuts.
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Minimum base gross salary: From 1 January 2011, the guaranteed minimum base gross salary is established at RON 670 per month for a work schedule of an average of 170 hours monthly, representing RON 3.94 per hour. Unemployment: As key-reforms in public sector are advancing and a unified wage law for the public sector was approved, the unemployment rate has begun to stabilize. At the same time, the creation of new jobs in the private sector is more difficult. Unemployment will be around 7% in 2011 (i.e. the lowest in the region in all three years), according to the IMFs forecast. Exports: With consumer confidence and economic sentiment gradually improving and exportoriented industry continuing to grow, recent indicators suggest that the growth will turn to be positive in 2011.
Main country data

Total area: 238,391 sq. km (11th largest in Europe and 79th largest worldwide) Population: 21,462,000 (Jan 2010) Capital: Bucharest, 1,944,451 population Main cities, above 300,000 population: Brasov, Cluj-Napoca, Constanta, Craiova, Galati, Iasi, Timisoara Currency: Romanian Leu (RON) ISO 3166 code: RO Internet TLD: .ro (the .eu domain is also used, as in other European Union member states)
Economic indicators
Indicator GDP per head (Euro) GDP per head ($ at PPP) Economic Growth (% GDP change) Government consumption (% of GDP) Budget balance (% of GDP) Consumer prices (% change per year) Public debt (% of GDP) Labour costs per hour (USD) Recorded unemployment (%) Current-account balance (% GDP) Foreign-exchange reserves (mUS$) 2010 5,903 11,203 -1.9 12.9 -7.8 5.9 40.1 4.7 9.0 -5.5 32,4300 2011 forecast 6,400 11,700 1.5 N/A -6.4 5.2 N/A 7.5 -6.0 N/A Reports of the national associations
CESA 2010 - 2011
12
40.0
The ship export represents 96% of the total production of the Romanian shipyards, thus shipbuilding improves the export/import balance.
63
Introduction in national shipbuilding industry

Membership
At the end of April 2011, the Romanian Shipbuilders Association (logo ANCONAV) counted 44 members, of which 8 shipyards (STX OSV Tulcea, Damen Shipyards Galati, Constanta Shipyard, STX OSV Braila, DMHI Mangalia, Severnav Drobeta Turnu Severin, Orsova Shipyard, Shipyard ATG Giurgiu) and 36 support companies (Germanischer Lloyd Romania, Ship Design Group Galati, Bureau Veritas Romania Control International Galati, Retec Galati, Dutch Marine Trading Design Galati, Ductil Buzau, ICEPRONAV Galati, PA Libra Galati, Eekels Galati,Helmers Galati, Metchim Galati, Menarom Pec Galati, Det Norske Veritas Constanta, Avemar Constanta, Liebherr Romania, Marine Engineering Galati (MEGA), Omnisud Bucuresti, Romlotus Galati, Van der Velden Galati, CAD Resource Centre Ltd.Galati, Edilbalk Mangalia, En Vogue Industries Tulcea, Green Yard Braila, Heinen&Hopman,Galati, Industrial Cruman Ploiesti, International Paint - representative office Constanta, Maritime Interior Braila, Mediator Bucuresti, Microplasma Constanta, NASDIS Galati, Ronomar Constanta, Sanco Braila, Suszi Industrial Constanta, Turom Steel Galati,Vacon Cluj Napoca, RO Shipping and Trading Orsova). Shipyards Turnover Turnover ~ 1,004 mil EUR Ship repair ~ 34 mil EUR Merchant Newbuilding ~ 942 mil EUR Naval ~ 28 mil EUR Shipyards Employees Total = 8,075 Ship repair = 190 Merchant Newbuilding = 7,790 Naval = 95 Products Merchant Vessels (Tankers, Bulk Carriers, Anchor Handling Vessels, Tugs, Container Feeders, Dredgers, LPG, Offshore Supply Vessels, Yachts, Barges, etc) Ship repairs & ship conversions Naval Vessels
12
Developments in shipbuilding
In 2010, the Romanian shipyards completed and delivered 23 ships totalling 260,334 cgt. The order book of the Romanian shipyards was expected to abt. 656,860 cgt at the end of 2010. 21 new orders totalling 192,120 cgt were placed during Jan.-Dec. 2010.
Development in ship maintenance, repair & conversion

The total turnover related to ship repair & conversion activity increased in 2010 with 21.4% in comparison with 2009.
Development in naval shipbuilding

Among ANCONAV members, only Damen Shipyards Galati is involved in naval shipbuilding in cooperation with Damen Schelde Naval Shipbuilding (The Netherlands).
CESA 2010 - 2011
64
Spain
National economy
During 2010, the Spanish economy moved on to a mildly recovering path subject to some fluctuations as a result of the effect that certain temporary measures had on the course of domestic spending. Estimates based on the conjunctural information available suggest that the recovery continued in Q4, posting a quarter-on-quarter increase in GDP of 0.2%, entailing a rise of 0.6% in the year-on-year rate. On the expenditure side, national demand fell off slightly (0.7% year-on-year) while the contribution of net external demand to GDP increased by 0.3 pp to 1.3 pp. Despite this gradually improving pattern, GDP fell by 0.1% over the whole of 2010 owing to the effect of the significant fall-off in output in 2009 (-3.7%).The decline in output in 2010 was the result of the fall in national demand (-1.2%), although this was far lower than the rate observed in 2009 (-6%). On the supply side, services were more sustained.Adding to this was the slight rise in manufactures in the closing months, while the contraction in the value added of construction intensified owing to the more unfavourable behaviour of the non-residential construction segment. Overall, the subdued increase in output did not suffice to generate net employment, which continued to contract for the tenth consecutive quarter with a fall of 2.3%, weighed down by the unfavourable performance of non-residential construction but also by the difficulties in generating jobs in other activities.The labour supply rose somewhat during 2010, which also contributed to the increase in the unemployment rate, up to 20.3% in Q4 according to EPA. Lastly, inflation quickened during the year, up to a rate of change of 3% in December and placing the average increase in the CPI at 1.8% (compared with a decline of 0.3% in 2009). The outlook for 2011 in Spain, but also in the euro area, is for a slow recovery highly dependent on the external sector, and one conditioned by the fiscal adjustment and the restructuring process facing the private sector.This scenario is, moreover, subject to great uncertainty and to the risks associated with the tensions on sovereign debt markets which, should they continue, might prompt further tightening of financing conditions and a deterioration in economic agents confidence.
12
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 24 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 2,146 merchant ship newbuilding, about 908 in repairs and conversions and about 3,126 in naval shipbuilding. Spanish newbuilding yards are an international reference in the design and construction of high addedvalue vessels, thanks to its constant commitment to innovation and technology, developing Ro-Pax,
CESA 2010 - 2011
65
Introduction of the national Industry
ferries, offshore platforms and FPSOs, chemical and gas carriers, dredgers of all types and high standard yachts and fishing 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 floating docks), able to accommodate vessels up to 400,000 dwt, 385.25m long and 66.65m wide.Two of the yards have installed shiplifts with a combined capacity of 19,928 tons for vessels up to 180m long, 30m wide and 36,000 dwt.
Development in shipbuilding
For the last years, Spanish shipbuilding industry became an innovative industry, having built highly integrated very complex vessels which required a remarkable amount of scientific knowledge as well as intelligent manufacturing technologies. The research, development and innovation (R&D&i) investment in the shipbuilding sector increased to 0.8 bn, about 10% of their annual turnover during the last four years. Spanish shipbuilding industrys export share of more than 75% of the annual turnover reflects 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 other industrial and service sectors. In 2010, Spanish yards spent 2.2 bn on materials, equipments and services from over 1,500 suppliers. During 2010, 25 contracts were reported with 148.051 CGT, 216% up on 2009 years figure. New orders increased from 13 ships with 61.880 CGT to 25 ships, of which 21 ships with 137.883 CGT were from foreign owners. The value of new orders was about 1.0 bn . In 2010, Spanish shipyards completions raised slightly at 357 mCGT, due to the excellent activity of private shipbuilders. The number and tonnage delivered ships were 55 ships with 357,683 CGT. Spanish orderbook fell down at 31.12.2010, 80 ships with 549.963 CGT, from 115 ships with 815.1340 CGT at the end of 2009, with a decrease by 33%. Finally, the financial crisis impact is hitting the shipyards and the subcontracting companies, as much as 30% of the shipbuilding capacity in Spain will face major production disruptions by the end of 2011.
12

No. Production (of which for foreign account) New Orders (of which for foreign account) Orderbook
CESA 2010 - 2011
GT 278,155 182,912 91,469 88,885 361,327 282,145
CGT 357,683 256,226 148,051 137,883 549,963 441,291
Euro Mil.
(approx. value)
55 39 25 21 80 62
2,157 1,681 912 844 3,223 2,704
of which for foreign account)
66
Developments in ship maintenance, repair and conversion

In 2010, the figures for shiprepair and conversion works carried out by Spanish yards have shown a downward trend, again.The total turnover for 2010 amounted to 253 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 fishing and factory vessels, oceanographic research vessels and reefers. Union Naval Barcelona closed down its facilities and it is being prepared for repairing of yachts and recreational boats. NAVANTIA carried out a total of 30 LNG projects in 2010 it became the worlds leading repairer of this shiptype. The company has carried out substantial investments in their yards including the construction of new cryogenic workshops with all the necessary tools and equipment. The European Commission has funded under the VII Framework the Research Project ECO-REFITEC Eco innovative refitting technologies and processes for shipbuilding industry promoted by European Repair Shipyards aims at improving the competitiveness of the European shipyards and SMEs involved in shipbuilding, ship repair & recycling. The project will help repair shipyards and ship operators to perform a refitting of existing fleet, through technological development and new tools, helping shipping benchmark their performance, improving the retrofit processes and products, and assessing environmental and life cycle cost impact. SOERMAR is the Project Coordinator and ASTANDER is one of the partners.

Navantia has delivered the LHD Juan Carlos I to the Spanish Navy in the Military Arsenal of Ferrol. The LHD Juan Carlos I has been designed to carry out amphibious missions, force deployment, humanitarian assistance and to act as an auxiliary aircraft carrier. With an overall length of 230.82 metres, 32 m. beam and full load displacement of more than 27,500 tones, this is the biggest ship ever made available in the Spanish Navy. She is also the first of such size with podded electrical propulsion. The Combat Replenishment Ship Cantabria, built by Navantia Shipyard in San Fernando-Puerto Real, has been officially received in July by the Spanish Navy at a ceremony which took place at the Naval Base of Rota.With a dead weight of 9,800 tons, she is a 174 m long ship displacing 19,600 tons, which makes it the second largest of the Navy ships after the LHD Juan Carlos I. The ship can maintain a speed of 20 knots (maximum speed exceeding 21 knots) and its autonomy to 13 knots (speed economic) will be of 6,000 miles. It has a flight deck, with hangar, from which may operate helicopters. Her five replenishment stations (one aft) can supply 8,000 cubic meters of fuel to ships and 1,500 cubic meters of fuel to aircraft, as well as ammunition, repair parts and food to a force in the sea. The state-of-the-art Combat System permits the ship to operate within a Naval Force. The Combat System is a Spanish R&D product. The Cantabria has an integrated and highly automated Platform Control System designed by NAVANTIA, thus reducing the size of the crew.
12
CESA 2010 - 2011
67
United Kingdom
Developments
Manufacturing has been, and continues to be an important part of the UK economy. UK manufacturing has well established strengths in sectors such as aerospace, pharmaceuticals and electronics. Recognising the need to evolve and embrace new and evolving markets through diversification, UK manufacturing including the Maritime sector is in a strong position and well placed to respond to new challenges and future opportunities. The coalition government has been very supportive, recognising the valuable contribution the UK marine industries make towards the economy and the employment opportunities it provides. Under the co-chairmanship of Minister Mark Prisk & Alan Johnson MD BAE systems Maritime, the Marine Industries Leadership Council has estimated the industry is worth 10bilion to the UK economy. Many of our member yards, large and small, concentrate 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 significant growth, with the implementation of the 2005 Defence Industrial Strategy. The announcement of the Type 26 ships has come as a further boost to the defence capabilities.The UK naval sector is dominated by QE2 Class aircraft carrier, Astute submarine and Type 45 Destroyer programmes run by the MOD. These provide valuable work across our member yards both big and small which will continue as the Type 26 Frigate programme takes off. SSA provides support to the UK maritime industry across the broadest range of business issues from International Trade, Business Development, Innovation & Technology research and training, Health & Safety and Environmental issues and currently has over 164 members.
12
The main focus at SSA has been business support through increased international exposure for our members and the development of innovative solutions to industry challenges. With UKTI support, we are now looking at promoting our products at other international markets such as Brazil and Russia. The national association is also actively working in 10 major European R&D projects looking at issues such as reduction of Nox & Sox emission, better coatings technologies for hull, light weight structure and use of composites for boat building. UK is also at the forefront for the installation of wind farms across our coastline and is the world leader in the renewable sector, investing up to 75bn in offshore wind farms by 2020, and a further growth of our wave and tidal industry could attract further investment offering business opportunities for many parts of the maritime industry, including the exploitation and transfer of technology and knowhow from the UKs existing shipbuilding and oil and gas businesses. Some of the major wind farm projects launched recently include The Dogger Bank Zone, yielding 9 gigawatts, the The Hornsea Zone, yielding 4 gigawatts and the The Norfolk Bank Zone yielding 7.2 gigawatts. Turbines in the recently launched nine zones could generate up to 32 gigawatts of power, a quarter of the UK's electricity needs. The offshore wind industry is at the heart of the UK economy's shift to low carbon and could be worth 75bn and support up to 70,000 jobs by 2020.
CESA 2010 - 2011
68
13.
CESA Society
General Assembly, The Netherlands

The Holland Shipbuilding Association chose the beautiful city of Amsterdam as venue for the CESA General Assembly 2010 which was, as traditionally, well attended by many top executives of major shipyards and national associations.
13
CESA 2010 - 2011
69
CESA Society
Annexes
Annexes
CESA 2010 - 2011
70
Annex 1 Statistics 2010

SHIPBUILDING IN CESA COUNTRIES DURING 2010 IN GT
Orderbook N BULGARIA CROATIA DENMARK FINLAND FRANCE GERMANY GREECE ITALY LITHUANIA NETHERLANDS NORWAY POLAND PORTUGAL ROMANIA SPAIN UNITED KINGDOM TOTAL 3 26 10 6 12 74 0 21 6 172 58 21 2 45 80 5 541 GT 96.300 624.924 99.372 167.000 284.786 1.416.234 0 944.700 15.000 615.310 289.960 83.777 8.000 1.197.294 361.327 1.000 6.204.984 Completions N 4 14 10 1 9 49 0 35 6 141 43 22 1 23 55 6 419 GT 43.480 394.067 463.347 225.000 260.967 957.182 0 609.104 0 372.136 255.733 37.775 9.000 459.216 278.155 1.000 4.366.162 New orders N 0 8 6 3 12 24 0 5 4 67 42 18 0 21 25 2 237 GT 0 171.986 7.275 57.000 284.786 628.839 0 287.425 10.000 150.342 182.272 77.077 0 267.372 91.469 1.000 2.216.843 Cancellations N 0 0 0 0 0 7 0 0 0 0 0 0 0 0 0 7 GT 0 0 0 0 0 150.928 0 0 0 0 0 0 0 0 0 150.928
Source: CESA
SHIPBUILDING IN CESA COUNTRIES DURING 2010 IN CGT

Orderbook N CGT 3 26 10 6 12 74 0 21 6 172 58 21 2 45 80 5 541 48.807 510.607 100.527 148.691 294.594 1.537.939 0 1.085.688 31.000 897.879 517.793 117.592 14.000 656.860 549.963 5.000 6.516.940 Completions N 4 14 10 1 9 49 0 35 6 141 43 22 1 23 55 6 419 CGT 36.274 277.709 204.667 188.868 277.639 974.548 0 766.122 42.000 599.029 409.791 87.155 9.000 260.334 357.683 5.000 4.495.819 New orders N 0 8 6 3 12 24 0 5 4 67 42 18 0 21 25 2 237 CGT 0 126.486 22.148 47.610 294.594 652.569 0 289.729 19.000 279.282 352.536 104.257 0 192.120 148.051 3.000 2.531.382 Cancellations N 0 0 0 0 7 0 0 0 0 0 0 0 0 7 CGT 0 0 0 0 116.127 0 0 0 0 0 0 0 116.127
BULGARIA CROATIA DENMARK FINLAND FRANCE GERMANY GREECE ITALY LITHUANIA NETHERLANDS NORWAY POLAND PORTUGAL ROMANIA SPAIN UNITED KINGDOM TOTAL Source: CESA
CESA 2010 - 2011
71
Annex 1
CESA TOTALS - NEW ORDERS BY SHIPTYPE

N Orders placed in 2010 Of which for foreign account Types of ships ordered in 2010 Crude Oil Tankers (double hull) Product and Chemical Carriers Bulk Carriers excl. Combined Carriers Combined Carriers General Cargo Ships Reefers Full Containers Ships Ro-Ro Vessels Car Carriers LPG Carriers LNG Carriers Ferries Passenger Ships Fishing Vessels Offshore Supply Vessels (incl. AHTS) Other Non-Cargo Vessels Cancellations reported during 2010 Of which for foreign account 0 0 8 2 13 0 5 3 0 0 0 21 18 10 46 98 7 Total 0 116.477 293.600 14.850 66.455 0 119.805 66.710 0 0 0 97.206 1.015.090 18.032 181.666 215.952 150.928 0 0 5,3 13,2 0,7 3,0 0 5,4 3,0 0 0 0 4,4 45,8 0,8 8,2 9,7 100 0 0 109.014 140.644 16.572 79.521 0 86.661 45.836 0 0 0 144.825 1.065.781 48.075 340.706 408.518 116.127 0 0 4,3 5,6 0,7 3,1 0 3,4 1,8 0 0 0 5,7 42,1 1,9 13,5 16,1 100 0 237 189 GT 2.216.843 2.023.571 % 100 91,3 CGT 2.531.382 2.133.616 % 100 84,3
Source: CESA DIRECT WORKFORCE IN CESA COUNTRIES

COUNTRY BULGARIA CROATIA DENMARK FINLAND FRANCE GERMANY GREECE ITALY LITHUANIA NETHERLANDS NORWAY POLAND PORTUGAL ROMANIA SPAIN UNITED KINGDOM TOTAL 2007
Total Newbuildings* Total
2008
Newbuildings* Total
2009
Newbuildings* Total
2010
Newbuildings*
5.400 9.811 3.500 4.700 17.200 22.500 2.434 12.245 5.100 14.272 6.000 17.000 1.652 10.800 7.678 8.500 148.792
2.400 8.200 3.000 4.700 3.350 15.900 400 8.925 2.800 11.635 5.500 12.800 893 10.700 2.129 500 93.832
4.977 9.553 3.700 4.630 17.100 23.600 2.324 12.142 4.800 14.400 5.000 15.000 1.592 10.100 6.490 8.300 144.608
2.200 8.738 2.800 4.630 3.400 16.500 8.858 3.000 12.260 4700 7.900 914 9.350 2.995 200 89.145
4.968 8.851 3.000 4.500 16.400 19.200 2.487 11.790 4.200 13.500 5.000 7.300 1.572 8.160 5.666 8.300 124.894
*
2.100 8.645 2.300 3.200 1.900 12.600 8.592 2.200 11.600 4.600 2.600 505 7.820 2.291 200 71.153
4.250 8.792 1.830 3.800 16.400 18.000 2.319 11.640 3.682 13.219 5.000 7.000 1.304 8.075 6.180 3.000 114.491
8.376 1.250 3.800 2.100 10.800 0 8.538 10.889 4.600 1.800 565 7.790 2.146 200 62.854
Annex 1
Source: CESA
Including new merchant and new offshore
CESA 2010 - 2011
72
CESA TOTALS - ORDERBOOK BY SHIPTYPE

N Total tonnage on order book on 31.12.2010 Of which for foreign account Types of ships according to orderbook on 31.12.2010 Crude Oil Tankers (double hull) Product and Chemical Carriers Bulk Carriers excl. Combined Carriers Combined Carriers General Cargo Ships Reefers Full Containers Ships Ro-Ro Vessels Car Carriers LPG Carriers LNG Carriers Ferries Passenger Ships Fishing Vessels Offshore Supply Vessels (incl. AHTS)
Other Non-Cargo Vessels
GT 6.195.992 5.794.724 0 428.305 767.520 71.503 364.207 0 640.797 490.442 0 2.300 0 329.306 2.197.890 24.632 333.553 530.529 27,041 18,707
% 100 93,5 0 6,9 12,4 1,2 5,9 0 10,3 7,9 0 0 0 5,3 35,5 0,4 5,4 8,6
CGT 6.502.954 5.900.340 0 370.828 315.115 91.065 473.924 0 387.986 358.748 0 5.112 0 373.930 2.492.806 67.106 602.997 927.322
% 100 90,7 0 5,7 4,8 1,4 7,3 0 6,0 5,5 0 0,1 0 5,8 38,3 1,0 9,3 14,3 100 69
541 467 0 22 15 14 88 0 18 21 0 1 0 30 47 15 77 180
Approximate value of order book on 31.12.2010 in mEuro Of which for foreign account in mEuro
Source: CESA
CESA TOTALS - COMPLETIONS BY SHIPTYPE N Completed in 2010 Of which for foreign account Types of ships completed in 2010 Crude Oil Tankers (double hull) Product and Chemical Carriers Bulk Carriers excl. Combined Carriers Combined Carriers General Cargo Ships Reefers Full Containers Ships Ro-Ro Vessels Car Carriers LPG Carriers LNG Carriers Ferries Passenger Ships Fishing Vessels Offshore supply vessels (incl. AHTS) Other Non-Cargo Vessels Approximate value of completions During 2010 in mEuro Of which for foreign account in mEuro 19.366 13.148 100 68 6 12 13 5 23 0 14 15 1 2 0 18 26 9 66 192 18.345 257.181 740.802 25.946 115.852 0 331.624 373.967 40.619 27.758 0 282.407 1.310.392 10.863 306.487 454.409 0,4 5,9 17,0 0,6 2,7 0 7,6 8,6 0,9 0,6 0 6,5 30,1 0,2 7,0 10,4 25.727 197.091 272.767 32.284 137.790 0 233.896 266.816 25.247 28.482 0 281.088 1.454.996 31.347 539.236 834.379 0,6 4,4 6,1 0,7 3,1 0 5,2 5,9 0,6 0,6 6,3 32,4 0,7 12,0 18,6 0 419 223 GT 4.356.162 2.846.201 % 100 65,3 CGT 4.486.828 2.944.258 % 100 65,6
Source: CESA
CESA 2010 - 2011
73
Annex 1
CESA COMPLETIONS 2004 - 2010

2004 N CGT - Export Total value in mEuro - Export in mEuro N CGT - Export Total value in mEuro - Export in mEuro N CGT - Export Total value in mEuro - Export in mEuro N CGT - Export Total value in mEuro - Export in mEuro N CGT - Export Total value in mEuro - Export in mEuro N CGT - Export Total value in mEuro - Export in mEuro N CGT - Export Total value in mEuro - Export in mEuro N CGT - Export Total value in mEuro - Export in mEuro N CGT - Export Total value in mEuro - Export in mEuro N CGT - Export Total value in mEuro - Export in mEuro N CGT - Export Total value in mEuro - Export in mEuro N CGT - Export Total value in mEuro - Export in mEuro N CGT - Export Total value in mEuro - Export in mEuro N CGT - Export Total value in mEuro - Export in mEuro N CGT - Export Total value in mEuro - Export in mEuro N CGT - Export Total value in mEuro - Export in mEuro N CGT - Export Total value in mEuro - Export in mEuro 2005 2006 2007 2008 6 29 157 6 48 48 21 400 811 375 579 629 582 10 273 363 10 600 600 5 291 113 257 917 1 145 1 015 11 251 220 237 367 1 051 1 000 84 1 311 904 776 623 4 449 3 176 0 0 0 0 0 20 684 134 463 490 2 374 1 945 3 16 900 14 703 54 47 378 1 567 815 1 307 000 3 400 2 900 71 572 865 162 636 1 749 490 20 330 296 328 608 511 505 2 17 098 17 098 41 41 28 346 979 346 979 550 550 64 347 513 194 852 1 022 602 3 4 100 0 13 0 726 6 445 268 4 756 215 17 636 13 453 2009 4 22 892 22 892 30 30 14 308 417 203 632 559 464 9 201 876 0 500 0 3 260 674 260 674 1 190 1 190 13 175 635 109 187 750 650 52 945 383 504 408 2 618 1 871 2 4 095 4 095 11 11 32 628 455 174 077 2 391 905 2 16 377 63 176 683 663 1 786 61 518 083 159 277 2 932 25 241 889 241 889 432 432 3 28 983 18 212 90 44 31 364 923 364 923 482 482 50 287 167 216 687 1 825 1 441 2 2 076 9 481 4 478 180 2 261 061 15 669 8 650 2010 4 36 274 N/A 109 N/A 14 277 709 682 203 632 565 10 204 667 N/A 550 N/A 1 188 868 188 868 1 000 1 000 9 277 639 253 777 1 400 1 300 49 974 548 826 951 4 657 4 055 0 0 0 0 0 35 766 122 516 868 2 926 2 149 6 42 000 42 000 129 129 41 599 029 328 429 2 032 1 163 43 409 791 108 646 3 125 843 22 87 155 87 155 170 170 1 9 000 N/A 9 N/A 23 260 334 256 936 397 392 55 357 683 175 160 2 157 1 681 6 5 000 N/A 23 N/A 419 4 486 828 2 944 258 19 366 13 148
BULGARIA
20 430 750 402 636 466 432 9 203 444 479* 4 266 419 210 899 975 820 15 105 592 90 816 370 61 907 320 536 321 2 306 1 550 1 897 897 49 49 27 633 603 382 870 2 212 1 423
21 381 545 420 569 460 376 8 327 964 550* 1 13 800 6 900 65 65 16 75 363 572 270 69 1 163 146 548 012 2 581 1 390 1 894 2 982 49 49 19 398 676 220 876 1 310 939
21 368 719 489 184 500 464 8 363 979 522 5 294 190 269 700 935 935 14 265 060 91 280 900 450 70 1 174 241 707 088 2 919 1 746 0 0 0 0 0 21 546 565 27 500 1 761 1 178
23 466 733 740 803 547 356 8 353 066 0 700 0 5 283 936 315 400 1 165 1 165 7 192 317 93 440 650 450 74 1 171 314 658 562 3 126 1 796 0 0 0 0 0 32 806 203 452 000 2 566 1 629
CROATIA
DENMARK
FINLAND
FRANCE
GERMANY
GREECE
ITALY
LITHUANIA
114 449 710 293 780 1 050 770 34 194 583 91 507 501 25 448 684 448 684 607 607 54 9 93 865 93 865 134* 41 376 781 290 561 1 248 1 052 360 4 111 648 2 842 836 10 282 6 703
100 417 643 172 080 1 150 610 47 289 798 49 537 991 30 565 973 751 686 751 751 4 34 781 21 010 69* 33* 18 246 915 331 52 177 516 57 782 444 230 20 386 4 094 014 2 252 006 9 041 4 443
236 850 637 308 052 1 574 1 061 68 424 562 40 637 1 764 0 24 494 601 693 104 765 765 4 21 184 14 504 63 71 574 456 447 704 580 461 47 226 493 64 549 665 286 2 3 701 20 591 5 608 389 3 153 302 12 968 6 204
271 1 057 941 355 561 2 152 1 474 15 84 024 0 2 159 0 30 396 514 530 279 584 424 3 23 254 0 90 0 27 262 475 312 883 410 300 64 347 753 191 313 1 050 770 2 3 906 0 14 0 561 5 449 436 3 650 241 15 213 8 364
NETHERLANDS
NORWAY
POLAND
PORTUGAL
ROMANIA
Annex 1
SPAIN
CESA TOTAL
Source: CESA
CESA 2010 - 2011
74
* estimated
UNITED KINGDOM
SPECIFICATION IN COMPENSATED TONNAGE OF TYPES OF SHIPS

- of order book at end of DECEMBER 2010 - completed during JANUARY - DECEMBER 2010 - ordered during JANUARY - DECEMBER 2010
Order Book Type

Crude Oil Tankers (double hull tankers only) Under 4,000 dwt 4 - 10,000 dwt 10 - 30,000 dwt 30 - 50,000 dwt 50 - 80,000 dwt 80 - 160,000 dwt 160 - 250,000 dwt 250,000 dwt and over Product Carriers Under 4,000 dwt 4 - 10,000 dwt 10 - 30,000 dwt 30 - 50,000 dwt 50 - 80,000 dwt 80,000 dwt and over Chemical Carriers Under 4,000 dwt 4 - 10,000 dwt 10 - 30,000 dwt 30 - 50,000 dwt 50 - 80,000 dwt 80,000 dwt and over Bulk Carriers (exl. Combined Carriers) Under 4,000 dwt 4 - 10,000 dwt 10 - 30,000 dwt 30 - 50,000 dwt 50 - 80,000 dwt 80 - 160,000 dwt 160,000 dwt and over Combined Carriers Under 10,000 dwt 10 - 30,000 dwt 30 - 50,000 dwt 50 - 80,000 dwt 80 - 160,000 dwt 160,000 dwt and over General Cargo Ships Under 4,000 dwt 4 - 10,000 dwt 10 - 20,000 dwt 20 - 30,000 dwt 30 - 50,000 dwt 50 - 80,000 dwt 80 - 160,000 dwt 160,000 dwt and over Reefers Full Container Ships and High Speed Liners Under 4,000 dwt 4 - 10,000 dwt 1,85 1,2 0 7 0 41.370 1,85 1,35 1 0,85 0,7 0,75 1 84 1 0 0 0 0 0 8.835 445.965 12.816 0 0 0 0 0 1,1 0,9 0,75 0,6 0,5 0,4 0 0 0 0 0 0 0 91.065 0 0 0 0 1,6 1,1 0,7 0,6 0,5 0,4 0,3 0 0 0 0 4 4 4 0 0 0 0 62.256 78.388 125.664 2,3 1,6 1,05 0,8 0,6 0,55 0 3 3 6 4 0 0 32.603 41.114 137.025 97.444 0 2,3 1,6 1,05 0,8 0,6 0,55 1 2 1 1 1 0 1.656 11.359 12.376 18.219 19.032 0 1,85 1,3 0,85 0,7 0,55 0,45 0,35 0,3 0 4 0 0 0 0 0 0 0 21.242 0 0 0 0 0 0
Completions No. CGT
New orders No. CGT
Coef. No. CGT
1 1 0 0 0 0 0 0
207 4.278 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 3 0
0 0 0 0 59.023 0
1 0 1 0 0 0
1.656 0 12.376 0 0 0
3 1 0 4 1 0
16.420 9.438 0 87.570 24.645 0
0 0 4 14 0 1
0 0 27.626 67.356 0 0
0 2 0 1 2 4 3
0 8.779 0 12.376 31.205 123.700 94.248
0 0 0 0 4 4 0
0 0 0 0 62.256 202.088 0
0 5 0 0 0 0
0 32.284 0 0 0 0
0 2 0 0 0 0
0 16.572 0 0 0 0
0 18 2 0 0 0 0 0
0 101.051 26.759 0 0 0 0 0
0 11 0 0 0 0 0 0
0 73.213 0
0 0 0 0 0
0 4
0 24.021
0 1
0 3.942
CESA 2010 - 2011
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Annex 1
10 - 20,000 dwt 20 - 30,000 dwt 30 - 50,000 dwt 50,000 - 80,000 dwt 80,000 dwt and over Ro-Ro Vessels Under 4,000 dwt 4 - 10,000 dwt 10 - 20,000 dwt 20 - 30,000 dwt 30,000 dwt and over Car Carriers Under 4,000 dwt 4 - 10,000 dwt 10 - 20,000 dwt 20 - 30,000 dwt 30,000 dwt and over LPG Carriers Under 4,000 dwt 4 - 10,000 dwt 10 - 20,000 dwt 20 - 30,000 dwt 30 - 50,000 dwt 50,000 dwt and over LNG Carriers Ferries Under 1,000 gt 1 - 3,000 gt 3 - 10,000 gt 10 - 20,000 gt 20,000 gt -40,000 gt 40,000 gt and over Passenger Vessels Under 1,000 gt 1 - 3,000 gt 3 - 10,000 gt 10 - 20,000 gt 20 - 40,000 gt 40 - 60,000 gt 60,000 gt -100,000 gt 100,000 gt and over Fishing Vessels Under 1,000 gt 1 - 3,000 gt 3,000 gt and over Offshore Supply Vessels (incl. AHTS) Under 1,000 gt
0,9 0,8 0,75 0,65
1 0 2 8 0
9.106 0 39.702 283.142 0
3 0 6 2 0
26.743 0 133.784 60.356 0
0 0 3 0 0
0 0 58.947 0 0
1,5 1,05 0,8 0,7 0,65
1 11 5 5 0
636 130.513 102.173 126.062 0
1 5 4 5 0
1.605 68.180 77.849 119.182 0
0 1 2 0 0
0 618 45.218 0 0
1,1 0,75 0,65 0,55 0,45
0 0 0 0 0
0 0 0 0 0
0 0 1 0 0
0 0 25.247 0 0
0 0 0 0 0
0 0 0 0 0
2,05 1,6 1,15 0,9 0,8 0,7
0 1 0 0 0 0
0 5.112 0 0 0 0
0 0 2 0 0 0
0 0 28.482 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0 0
3 2,25 1,65 1,15 0,9
6 3 0 4 2 2
22.421 19.073 0 108.184 60.022 85.526
4 3 1 0 3 3
9.386 4.358 10.771 0 81.803 147.496
3 4 1 0 2 0
894 20.356 6.162 0 50.760 0
6 4 3 2 1,6 1,4 1,25
10 9 3 3 1 1 6 12
32.935 77.875 60.248 82.399 51.127 47.610 528.941 1.578.100
4 5 4 2 1 0 4 6
11.173 39.335 61.442 51.726 51.127 0 396.886 843.308
3 1 1 1 0 1 1 6
5.737 5.978 20.196 32.133 0 47.610 87.451 829.727
4 3 2
10 2 0
23.716 9.865 0
2 2 0
3.605 15.486 0
5 0 0
3.605 15.486 0
6 12 14 0
12.972 43.742 129.697 0
0 10 12 0
0 43.624 119.696 0
5 4 2 2
10.661 15.908 17.658 29.474
Annex 1
1 - 3,000 gt 3 - 10,000 gt 10,000 gt and over Other Non Cargo Vessels Under 1,000 gt 1 - 3,000 gt 3 - 10,000 gt 10,000 gt and over Total 5 3,2 2 1,5
71 17 76 11
541
144.506 120.099 437.148 190.318

6.502.954
37 21 118 12
419
74.468 140.861 494.479 115.885

4.486.828
24 9 56 5
237
44.936 46.668 220.041 65.727

2.531.382
Source: CESA
CESA 2010 - 2011
76
Annex 2 CESA Member Associations
Port of Antwerp Havenhuis - Entrepotkaai 1 - 2000 Antwerpen Tel: +32 - 3 205 20 11; Fax: +32 - 3 205 20 28 info@portofantwerp.com - www.portofantwerp.com 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 info@bulnas.org - 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 hb@hb.hr - 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 mail@danishmaritime.org - danishmaritime.org Association of Finnish Marine Industries Etelranta, 10 - 00131 Helsinki - Finland Tel: +358 - 9 1923 385; Fax: +358 - 9 624 462 merja.salmi-lindgren@techind.fi - www.marineindustries.fi Groupement des Industries de Construction et Activits 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 info@gican.asso.fr www.gican.asso.fr Verband fr Schiffbau und Meerestechnik e. V. Steinhft, 11 (Slomanhaus) - 20459 Hamburg - Germany Tel: +49 - 4028 0152 0; Fax: +49 - 4028 0152 30 info@vsm.de - 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 hellass@otenet.gr 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 assonave@assonave.it - www.assonave.it
CESA 2010 - 2011
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Annex II
Association of Lithuanian Shipbuilders and Shiprepairers Pilies Str.4 - LT 91240 Klaipda - Lithuania Tel: +370 - 46 490970; Fax: +370 46 490971 info@llsra.lt - www.llsra.lt Scheepsbouw Nederland Boerhaavelaan, 40 - Postbus 138 - 2700 AC Zoetermeer - The Netherlands Tel: +31 - 79 353 11 65; Fax: +31 - 79 353 11 55 info@scheepsbouw.nl - 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 egil.holland@norskindustri.no - www.norskindustri.no Forum Okrtowe ul. Uphagena, 23 - 80-237 Gdask - Poland Tel: +48 - 58 520 7091; Fax: +48 58 520 7090 forum@forumokretowe.org.pl - www.forumokretowe.org.pl Associao das Indstrias Martimas Rua Jorge Afonso, 31- 6 - 1600-126 Lisboa - Portugal Tel: +351 - 21 781 8770; Fax: +351 - 21 781 8779 a.i.maritimas@mail.telepac.pt - www.aim.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 gelu.stan@anconav.ro - www.anconav.ro Unin Espaola de Constructores Navales Cardenal Herrera Oria, 57; 2 - 28034 Madrid - Spain Tel: +34 - 91 417 04 37; Fax: +34 - 91 729 36 47 uninave@uninave.es - www.uninave.es Shipbuilders and Shiprepairers Association Pallion Yard - Sunderland SR4 6LL - United Kingdom Tel: +44 191 567 8965; Fax: +44 191 510 0082 office@ssa.org.uk - www.ssa.org.uk Annex II
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Annex 3 CESA organisation

Chairman and Chairman Committee
Chairman Mr. Bernard Meyer Managing Partner of Meyer Werft Mr. Jacques Hardelay General Manager of STX France Mr. Frederico Spranger CEO of LISNAVE Shipyards Mr. Corrado Antonini President of Fincantieri Mr. Reinhard Lken
Vice-Chairmen
Honorary Chairman Secretary General
Chairmen and Directors of CESA National Associations

Chairman
Belgium Port of Antwerp Bulgaria Bulgarian National Association of Shipbuilding and Shiprepair Croatia Croatian Shipbuilding Corporation Denmark Danish Maritime Finland Association of Finnish Marine Industries France Chambre Syndicale des Chantiers Navals Germany Verband fr Schiffbau und Meerestechnik e.V. Greece Association of Hellenic Shipbuilding and Shiprepairing Industries Italy Associazione Nazionale dell industria Navalmeccanica Lithuania Association of Lithuanian Shipbuilders and Shiprepairers The Netherlands Scheepsbouw Nederland Norway Norsk Industri Poland Zwiazek Pracodawcw FORUM OKRTOWE Portugal Associao das Indstrias Martimas Romania Asociatia Nationala a Constructorilor de Nave din Romania Spain Unin Espaola de Constructores Navales United Kingdom Shipbuilders and Shiprepairers Association Mr. Eddy Bruyninckx Mr. Svetlin Stoyanov Mr. Niko Rai Mr. Thomas S. Knudsen Mr. Timo Suistio Mr. Jean-Marie Poimboeuf Mr. Werner Lken Mr. Costantinos G. Kokkalas Mr. Corrado Antonini Mr. Arnoldas ileika Mr. Sjef van Dooremalen Mrs. Kjersti Kleven Mr. Piotr Soyka Mr. Frederico Spranger Mr. Radu Rusen Mr. Jos Francisco Gonzlez Vias Mr. Alan Dickinson
Director
Mr. Christiaan De Block Mr. Svetlin Stoyanov Mrs. Nada Braovi Mrs. Jenny Braat Mrs. Merja Salmi-Lindgren Mr. Jean-Marie Carnet Mr. Werner Lundt Mr. Costantinos G. Kokkalas Mr. Livio Marchesini Mrs. Alina Rubeien Mrs. Mieke BakkerMantjes Mr. Egil Holland Mr. Stanislaw Ciesilka Mr. Jos Ventura de Sousa Mr. Gelu Stan Mr. Jos Ramn Lpez Eady Mr. Ashutosh Sinha
CESA 2010 - 2011
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Annex III
CESA Working Groups and Committees COREDES

Chairman: Secretary: Mr. Luciano Manzon (CESA) Mr. Lanfranco Benedetti (CESA) Mr. Hotze Boonstra (WEGEMT) Mr. Giovanni Caprino (Cetena) Mr. Johan de Jong (MARIN) Mr. Francisco del Castillo (Soermar) Mr. Franois Duthoit (DCNS) Mr. Boris Fedorovsky (GICAN) Mr. Michael Goldan (FME) Mr. Paolo Guglia (Fincantieri) Mrs. Emma Harrison (BAE Systems)* Mr. Georgios Kokkalas (Elefsis)* Committee Members: Mr. Stphane Klein (STX France SA) Ms. Kirsti Koivulampi (AFMI) Mr. Marnix Krikke (Scheepsbouw Nederland) Mr. Stelious Kyriacou (Hamworthy) Mrs. Susana Lapique (Navantia) Mr. Xavier Leclerq (STX France SA) Mr. Reinhard Lken (CESA) Mrs. Cecilie Lykkegaard (Danish Maritime) Mr. Ralf Sren Marquardt (VSM) Mr. Luciano Manzon (Fincantieri)* Mr. Laurent Morel (Damen Shipyard) Mr. Matti Nallikari (STX Finland)
* National Contact Point
Mrs. Eva Novoa (Soermar) Mr. Theodoras Papakonstantinou (Hellenic Shipyard) Mr. Michael Prehn (Danish Maritime)* Ms. Ilkka Rantanen (STX Finland) Mr. Frank Roland (CMT)* Mr. Gvozden Rukavina (3MAJ)* Mr. Lucio Sabbadini (Fincantieri) Mrs. Merja Salmi-Lindgren (AFMI)* Mr. Carlos Snchez Lafuente (Innovamar)* Mr. Ashutosh Sinha (SSA) Ms. Harriet Slager (EC Liaison) Mr. George Smyrnakis (WEGEMT) Mr. Florin Spataru (Damen Shipyards Galati)* Mr.Yannis Tavoularis (Elefsis Shipyard) Ms. Marloes Telgenhof (EC Liaison) Mr. Fabrice Theobald (GICAN) Mr. Robert van de Ketterij (MTI Holland) Mr. Henk van Muijen (MTI Holland) Mr. Peter van Terwisga (Damen Shipyard) Ms. Elena Velikova (Bulnas) Mr. Leszek Wilczyski (CTO)* Mr.Vedran ani (University of Zagreb)
Working Group on Market Monitoring

Chairman: Secretary: Mr. Jos Ramn Lpez Eady (Uninave) Mrs. Lidia Luca (CESA) Mrs. Jenny Braat (Danish Maritime) Mr. Gerhard Carlsson (VSM) Members: Mr. Jos Mara Domingo Briones (Navantia) Mr. Boris Fedorovsky (GICAN) Mr. Paolo Lotti (Fincantieri) Mr. Reinhard Lken (CESA) Mr. Eero Mkinen (STX Finland) Mrs. Jing Shen (CESA) Mr. Pascal van Kuijen (Scheepsbouw Nederland) Mrs.Vedrana Vukman (Brodotrogir Shipyard)
Annex III
Working Group on Market & Forecast

Chairwoman: Secretary: Mrs. Jenny Braat (Danish Maritime) Mrs. Lidia Luca (CESA) Mr. Dragan Badek (Kraljevica Shipyard) Mr. Gerhard Carlsson (VSM) Members: Mr. Paulino Fernndez Rodrguez (Navantia) Mr. Knut Helge Osmundsvg (Research Council of Norway) Mr. Thorsten Kroes (Meyer Werft) Mr. Paolo Lotti (Fincantieri) Mr. Jess Querol (Uninave) Mr. Pascal van Kuijen (Scheepsbouw Nederland) Mr. Thomas Weigend (Meyer Werft)
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80
Working Group on Trade Issues

Chairman: Secretary: Mr. Fabrice Theobald (GICAN) Mrs. Jing Shen (CESA) Mr. Arkadiusz Aszyk (Gdask Shipyard) Mr. Christian A. Schilling (VSM) Members: Mr. Thorkil H. Christensen (Danish Maritime) Mr. Jos Mara Domingo Briones (Navantia) Mr. Jos Ramn Lpez Eady (Uninave) Mr. Paolo Lotti (Fincantieri) Mrs. Lidia Luca (CESA) Mr. Reinhard Lken (CESA) Mr. Eero Mkinen (STX Finland) Mr. Michael Prehn (Danish Maritime) Mr. Thomas Weigend (Meyer Werft)
Working Group on Social Dialogue

Chairwoman: Mrs. Jenny Braat (Danish Maritime) Secretary: Mrs. Lidia Luca (CESA) Mr. Ulf Bischoff (VSM) Members: Mr. Enrique Calvet Chambon (Uninave) Mr. Emmanuel Lavergne (DCNS) Mr. Paolo Lotti (Fincantieri) Mr. Reinhard Lken (CESA) Mr. Jos Pimentel das Neves (ENVC) Mr. Fabrice Theobald (GICAN) Mr. Pascal van Kuijen (Scheepsbouw Nederland)
Technical Advisory Committee

Chairman: Secretary: Mr. Willem Laros (CESA) Mr. Lanfranco Benedetti (CESA) Mr. David Anink (Scheepsbouw Nederland) Mr. Gennaro Ametrano (Cantieri Apuania) Mr. Alfonso Carneros (Soermar) Mr. Alberto Coda (Cantieri Apuania) Mr. Javier de Juana (Navantia) Mr. Jan Wim Dekker (Damen Shipyard) Members: Mr. Michael Prehn (Danish Maritime) Mr. Boris Fedorovsky (GICAN) Mr. Nenad Flesch (Brodotrogir) Mr. Ulf Jensen (Thyssen Krupp) Mr. ivoje Krstulovi-Opara (Brodosplit Shipyard) Mr. Marnix Krikke (Scheepsbouw Nederland) Mr. Jos Ramn Lpez Eady (Uninave) Mr. Reinhard Lken (CESA) Mr. Alessandro Maccari (Fincantieri) Mr. Eero Mkinen (STX Finland) Mr. Hermann Mammes (Meyerwerft) Mr. Ralf Sren Marquardt (CESA representative at IMO) Mr. Livio Marchesini (Fincantieri) Mr. Rolf Nagel (Flensburger Schiffbau-Gesellschaft) Mr. Antonio Prez de Lucas (Navantia) Mr. Sieger Sakko (Scheepsbouw Nederland) Mr. Marcus Schwaeppe (Lisnave) Mr. Ashutosh Sinha (SSA) Mrs. Jing Shen (CESA) Mr. Frederico Spranger (Lisnave Shipyard) Mr. Lorka Pavleti (3. Maj Shipyard) Ms. Elena Velikova (Bulnas) Mr. Karpen Volker (VSM) Mr. Thomas Witolla (Meyer Werft)
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Annex III
Ship Maintenance, Repair and Conversion Group

Chairman: Vice-Chairman: Secretary: Mr. Costas Kokkalas (EENB) Mr. Willy Salamon (ARNO) Mr. Sieger Sakko (Scheepsbouw Nederland) Mr. Francisco Arderius (Unin Naval Barcelona) Mr. Chris Bell (A&P) Mrs. F. Cachia (Malta Shipyard) Mr. Stanislaw Ciesiolka (Forum Okretowe) Members: Mr. Marko Domjan (V. Lenac Shipyard) Mr. Juan Luis Sanches (Astander) Mr. Werner Lundt (VSM) Mr. Jos Ramn Lpez Eady (Uninave) Mrs. Lidia Luca (CESA) Mr. Rdiger Pallentin (Lloydwerft) Mr. Giorgio Rizzo (Fincantieri) Mr. Arnoldas ileika (Western Shipyard) Mr. Ashutosh Sinha (SSA) Mr. Heikki Sipil (STX Finland) Mr. Frederico Spranger (Lisnave Shipyard) Mr. Rudolfo Teresi (Fincantieri) Mr. Fabrice Theobald (GICAN) Mr. Dirk Van Vaerenbergh (Gemeentelijk Havenbedrijf Antwerpen) Mr. Mannfred van der Wal (Scheepsbouw Antwerpen)
Naval Yard Group

Chairman: Secretary: Mr. Corrado Antonini (Fincantieri) Mr. Willem Laros (CESA) Mr. Klaus Borgschulte (Lrssen Yachts) Mr. Stanislaw Ciesiolka (Forum Okretowe) Mr. Antonio Criado (Navantia) Mr. Javier de Juana (Navantia) Mr. Franois Duthoit (DCNS) Mr. Gianmaria Gambacorta (Fincantieri) Members: Mr. Egil Holland (Norsk Industri) Mr. Costas Kokkalas (EENB) Mrs. Susana Lapique (Navantia) Mr. Giorgio Lauro (Fincantieri) Mr. Reinhard Lken (CESA) Mr. Jos Ramn Lpez Eady (Uninave) Mr. Paolo Lotti (Fincantieri) Mr. Werner Lundt (VSM) Mr. Livio Marchesini (Fincantieri) Mr. Jacques Mouysset (DCNS) Mr. Sinisa Ostojic (CSC) Mr. Antonio Prez de Lucas (Navantia) Mrs. Merja Salmi-Lindgren (AFMI) Mr. Christian Stuve (Thyssenkrupp Marine Systems) Mr. Svetlin Stoyanov (BULNAS) Mr. Fabrice Theobald (GICAN) Mr. Arnoldas ileika (Western Shipyard) Mr. Ashutosh Sinha (SSA) Mr. Gelu Stan (ANCONAV) Mr. Hein van Ameijden (Schelde Naval Shipbuilding)
Annex III
CESA 2010 - 2011
82
Intellectual Property Expert Group

Secretary: Mrs. Jing Shen (CESA) Mr. Pierre Berseneff (STX France) Mr. Piero Boico (Fincantieri) Mr. Thomas Forss (STX Finland) Mr. Mario Herrebout (Schelde Naval Shipbuilding) Members: Mr. Udo Janssen ((Meyer Werft) Mr. Ulf Kopf (Thyssenkrupp Marine Systems) Mr. Marnix Krikke (Scheepsbouw Nederland) Mr. Reinhard Lken (CESA) Mr. Juuso Maattanen (STX Finland) Mr. Eero Mkinen (STX Finland) Mr. Alessandro Margiotta (Fincantieri) Mr. Rolf Nagel (Flensburger Schiffbau-Gesellschaft)
Mr. Christian Nelte (Howaldtswerke-Deutsche Werft)
Ms. Amra Pende (Uljanik Shipyard) Mr. Christian Popall (Thyssenkrupp Marine Systems) Mr. Michael Prehn (Danish Maritime) Mr. Heye Waldecker (Lindenau Shipyard) Mr. Thomas Witolla (Meyer Werft) Mr. Hans Pieter Slappendel (IHC Merwede) Mr. Jaco van der Hoeven (MTI Holland)
CESA Secretariat
Secretary General Technical Director Policy Advisers Financial Officer Office Manager Mr. Reinhard Lken Mr. Lanfranco Benedetti Mr. Willem Laros Mrs. Lidia Luca Mrs. Jing Shen Mrs.Vronique Verhoeven Mrs. Delphine Fagot
CESA 2010 - 2011
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Annex III
Annex 4 Glossary
ASD AWES CANSI CASMARE CCNR CESA CESS CGT COREDES CSERC CSIC CSSC DE DG COMP DG EMPL DG ENTR DG RTD DG TRADE DG TREN DWT EC ECSA EEIG EMARRES EMEC EMECRID EMF EMSA EMSA DH HLP ERAMAR ERASTAR ESC ESDP ESPO ETA ETF EU EURACS FLAGSHIP FP FPSO FSU GBS GDP GT European Aerospace and Defence Industry Association Association of European Shipbuilders and Shiprepairers China Association of the National Shipbuilding Industry Coordination Action to maintain and further develop a Sustainable MAritime Research in Europe Central Commission for the Navigation of the Rhine Community of European Shipyards Associations Committee for Expertise of Shipbuilding Specifics Compensated Gross Tonnage Committee for Research and Development in European Shipbuilding (the R&D Working Group of CESA) Shipbuilding Economy Research Centre of China China Shipbuilding Industry Corporation China State Shipbuilding Corporation IMO Sub-Committee Ship Design and Equipment EC Directorate-General for Competition EC Directorate-General for Employment, Social Affairs and Equal Opportunities EC Directorate-General for Enterprise and Industry EC Directorate-General for Research EC Directorate-General for Trade EC Directorate-General for Energy and Transport Dead Weight Tonnage European Commission European Community Shipowners Association European Economic Interest Grouping Support action to initiate cooperation between the Communities of European MARine and MARitime REsearch and Science European Marine Equipment Council EMEC RDI working group European Metalworkers Federation European Maritime Safety Agency High Level Panel on Double Hull Tankers European Maritime Research Area European Research Area Thematic Network for the Shipbuilding Technology Applied Research European Shippers Council European Security and Defence Policy European Sea Ports Organisation European Tug-owners Association European Transport Workers Federation European Union European Association for Classification Societies European Framework for Safe, Efficient and Environmentally-friendly Ship Operations EU Framework Programme for Research & Development Floating Production Storage and Offloading Floating Storage Unit Goal-based Standards Gross Domestic Product Gross Tonnage
Annex IV
CESA 2010 - 2011
84
IACS ICS IMO INTERCARGO INTERSHIP INTERTANKO IP IPO IPR ISM ISPS JECKU KSA LNG LPG MARPOL MEPC MIF MSC NGO OCIMF OECD P&I R&D RDI SAJ SCM SME SNG SOLAS TAC TDM TEU TRA2012 ThroughLife VDR VECTORS WG WTO
International Association of Classification Societies International Chamber of Shipping International Maritime Organization International Association of Dry Cargo Shipowners Integrated Collaborative Design and Production of Cruise Vessels, Passenger Ships and RoPax International Association of Independent Tanker Owners Integrated Project on R&D Initial Public Offering Intellectual Property Rights International Safety Management Code International Ship and Port Facility Security Code Japanese, European, Chinese, Korean, US - Top Executive Meeting Korea Shipbuilders Association Liquefied Natural Gas Liquefied Petroleum Gas International Convention for the Prevention of Pollution from Ships Marine Environment Protection Committee of the IMO Maritime Industry Forum Maritime Safety Committee of the IMO Non-Governmental Organization Oil Companies International Marine Forum Organisation for Economic Co-operation and Development Protection and Indemnity Research & Development Research, Development and Innovation Shipbuilding Association of Japan WTO Agreement on Subsidies and Countervailing Measures Small and Medium Enterprise OECD Special Negotiating Group IMO Convention for the Safety of Life at Sea Technical Advisory Committee Temporary Defensive Mechanism Twenty-foot Equivalent Unit (i.e. standard container) Supporting the Transport Research Arena 2012 conference Development and proof of new approaches for through-life asset management based on next generation of materials and production technology Voyage Data Recorder Vectors of Change in Oceans and Seas Marine Life, Impact on Economic Sectors World Trade Organisation Working Group
CESA 2010 - 2011
85
Annex IV
Annex 5 - Picture references*
Annex 5
Page 1 Page 12 Page 13 Page 14 Page 16 Page 19 Page 22 Page 25 Page 27 Page 28 Page 29 Page 31 Page 32 Page 34 Page 35 Page 36 Page 36 Page 37 Page 41 Page 43 Page 45 Page 46 Page 48 Page 49 Page 50 Page 51 Page 55 Page 57 Page 58 Page 59 Page 60 Page 62 Page 65 Page 68 Page 69
Courtesy of Meyer Werft Courtesy of Flensburger Schiffbau-Gesellschaft Courtesy of STX Europe Courtesy of STX Europe Courtesy of China Shipbuilding Association Courtesy of Mareforum Courtesy of Waterborne TP Courtesy of STX Europe Courtesy of STX Europe Courtesy of BAE Systems Courtesy of BAE Systems Courtesy of Lisnave Shipyard Courtesy of Lisnave Shipyard Courtesy of Damen Shipyard Group Courtesy of Ulstein Group Courtesy of Ulstein Group Courtesy of European Wind Energy Association Courtesy of Kleven Maritime Courtesy of Bulnas Courtesy of CSC Courtesy of Danish Maritime Courtesy of STX Europe Courtesy of STX Europe Courtesy of VSM Courtesy of EENB Courtesy of Fincantieri Courtesy of Western Shipyard Courtesy of IHC Merwede Courtesy of Kleven Maritime Courtesy of Forum Okrtowe Courtesy of Lisnave Shipyard Courtesy of ANCONAV Courtesy of UNINAVE Courtesy of SSA Courtesy of Holland Shipbuilding
*Image/photo courtesy of all above mentioned companies
CESA 2010 - 2011
86
Ships made in Europe
Graphic Design: 2011 by CESA Community of European Shipyards Associations Rue Marie de Bourgogne 52-54 B-1000 Brussels, Belgium
www.creatin.be
Community of European Shipyards' Associations Rue Marie de Bourgogne 52-54 1000 Brussels, Belgium
tel.: +32 2 230 2791 fax.: +32 2 230 4332 info@cesa.eu www.cesa.eu

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ANNUAL REPORT 2010-2011

Brussels, August 2011

CESA 2010 - 2011

Bernard Meyer CESA Chairman

CESA 2010 - 2011

Massive Capacities Built Up (Production in CGT)

CESA 2010 - 2011

Source: LR- Fairplay data

World Commercial Shipbuilding Supply and Demand

2011- based on planned deliveries

Source: CESA based on data from IHS Fairplay

World Commercial Shipbuilding Activity

125.000 1.000 CGT

0 orderbook new orders completions

1998 36.595 18.379 18.244

1999 37.513 18.926 18.241

2000 45.881 29.431 20.346

2001 48.271 23.341 20.187

2002 48.946 20.471 21.396

2003 70.806 41.705 22.824

2004 92.800 45.128 25.461

2005 107.200 39.588 29.353

2006 138.000 57.315 34.123

2007 183.740 85.277 34.640

2008 194.166 42.953 41.873

2009 156.200 16.554 44.401

2010 128.013 38.581 51.573

H1 2011 126.802 17.248 26.406

CESA 2010 - 2011

M. Dwt Fleet 1400 1200 1000 800 600 400 200

Seaborne Trade Volumes

Bill. Tons Cargo 11 10 9 8 7 6 5 4 3 2 1 0

Sea Trade Trade scenario World Fleet (Dwt)

Source: Trade & Fleet- Clarksons; Trade Scenario CESA

Gastankers 2,813 Ferries/Pass. Ships 1,890

Source: CESA based on data from IHS Fairplay

CESA 2010 - 2011

CESA Working Group on Market Forecast

CESA Commercial Shipbuilding Activity

1998 11.264 5.494 4.925

1999 11.056 4.213 4.637

2000 13.267 7.591 4.794

2001 12.723 4.533 4.870

2002 9.652 2.262 4.816

2003 9.609 3.951 4.478

2004 12.406 6.798 4.194

2005 15.738 7.226 3.851

2006 16.885 5.379 4.642

2007 16.752 5.425 4.870

2008 13.692 2.114 4.820

2009 9.470 561 3.895

2010 6.394 2.459 3.947

Q12011 6.401 472 742

CESA 2010 - 2011

CESA 2010 - 2011

CESA Orderbook by Shiptype

60% 50% 40% 30% 20% 10% 0%

General cargo ships

CESA Member Yards Turnover - Commercial Newbuilding Market

19,366 16,256 15,669

14,328 12,968 10,463 9,041

CESA 2010 - 2011

Value of Orderbook - Commercial Newbuilding Market