Cruise ship repairs / Africa / Offshore vesselsTurbocharger maintenance / 1st Quarter 2014

SRCT 1st Q 14 - P1.indd 1 19/02/2014 09:45:37

Editorial CommEnt

Offshore and cruise orders give yards positive perspective

Saga Ruby at Gibdock

A number of yards in different parts of the world report a good start to 2014, offering up hope

that the industry has turned a corner.The first few months of this year have

seen some very positive news stories from across the industry. Business appears to be brisk, especially in the offshore, cruise and ferry and LNG sectors, and there are signs that globally the ship repair industry will enjoy its best year for some time.

In the UK, for instance, A&P Falmouth has indicated a much busier period after a difficult end to 2013, when a number of workers had to be laid off and discussions were held with staff and trade unions about a possible major restructure as a result of a gap in the company’s Royal Fleet Auxiliary refit schedule and a depressed commercial market. However, in February the company was talking more positively, with additional workers being taken on for short-term contracts.

Early-year visitors to the Falmouth dockyard have included the tanker FSL Hamburg, ferries for Condor Line and a pipeline trenching vessel, Calamity Jane. The P&O Ferries Pride of Kent and the Irish Ferries Oscar Wilde were also docked, as was the reefer ship Star Standard. Other notable projects are said to be in the pipeline, with bookings up to June. However, the yard still faces tough times ahead as it has no major MoD refits scheduled until April 2015, and these contracts have provided the yard with a core workload in recent years.

Another yard that has been through tough times but now seems to be emerging

as a regional force is Damen Shiprepair Brest (DSB). The former Sobrena yard has recently handled another major LNG carrier docking, with the maintenance and repair of Bachir Chihan for Hyproc Shipping, involving around 30,000 man-hours over a period of a month. More recently, DSB has won a double order from Knutsen NYK Offshore Tankers. The 88,109grt sister vessels Karen Knutsen and Sallie Knutsen, two shuttle tankers, have been booked in for delicate repair works, as has an Italian owned LPG carrier Pertusola and Jan De Nul’s dredger Simon Stevi.

Damen has signalled its commitment to the ship repair industry by opening up a new repair facility at the Hamriyah Free Zone in Sharjah recently. This facility is expected to focus in particular on the offshore and workboat segment, a market which is relatively buoyant across the Middle East.

Competition is however tough in the region, but one yard that is highly optimistic about its prospects is the Oman Drydock Company (ODC), which recently completed its 200th drydocking since the facility was launched in 2011. The landmark ship was the 4388TEU Maersk Wisconsin.

ODC says it sees real potential for growth particularly in becoming a centre of excellence for the repair of container ships. Elsewhere ODC is chasing down major growth opportunities in the offshore market, including repairs to drilling rigs, drill ships and FPSOs in particular.

The offshore business is probably still the sector with the biggest growth potential worldwide at the moment. It is not just yards in the Middle East that are thriving on work generated as a result of heightened levels of oil exploration and production. This pattern is evident in Northern Europe, the Americas, Africa and the Far East as well. The starting up of a new venture in Rotterdam, Rotterdam Offshore Group, is perhaps an indication of this trend. Leading German yards, such as Lloyd Werft and Blohm + Voss also report that significant offshore related work is helping to keep their facilities busy in 2014.

The two German yards are also securing their share of cruise ship upgrades, as operators in this sector continue to invest in upgrading their existing ships, both to meet passenger expectations and regulatory requirements. Navantia in Spain is increasing its cruise ship repair market share, while the volume of cruise work being handled at market leader Grand Bahama Shipyard remains at a high ebb. Saga Cruises has also highlighted Gibraltar’s continuing attractions for cruise owners, returning to Gibdock for repair and maintenance work on one of the ‘grand old ladies’ of the cruise industry, the 24,492grt, 670-passenger capacity Saga Ruby (delivered by Swan Hunter in 1972 to Norwegian American Line as Vistafjord, the ship has some historic significance as it is the last cruise vessel built on the Tyne).

All in all 2014 has started well it would seem. These are early days, but key shipping markets are moving in the right direction and that would auger well for prospects over the coming 12 months. SCRT

Shiprepair and Conversion Technology 1st Quarter 2014 7

SRCT 1st Q 14 - p7.indd 5 19/02/2014 09:36:44