CESA_Final Version 2011-2012

7/27/2019 CESA_Final Version 2011-2012

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With this publication, we wish to introduce SEA Europe, the joint

European association created on 1 June 2012 by the members o the Community o European Shipyards’ Associations (CESA) andthe European Marine Equipment Council (EMEC). With SEA Europe,a strong common voice or the maritime technology industry inEurope has set its sails.

This industry is a major asset or Europe. The ability to develop,produce and serve top perormance ships and other maritimeequipment is the key not only or a competitive and sustainablesea-borne transport o the uture but also or a wide range o otherbusiness activities at the oceans, seas and inland waterways. The world is increasingly depending on resources orm the oceans romenergy to ood, rom minerals to space. SEA Europe’s core missionis to make the public as well as policymakers understand betterthe strategic importance o the sector and to deliver results or itsmembers and or the society.

Shipyards and equipment manuacturers mostly share common in-terests, concerns and policy objectives. They serve global, highly com-petitive markets with the highest technology requirements. The mar-ket conditions are under considerable pressure as demand in many segments continues to be weak. At the same time, due to sharply increasing uel costs, regulatory pressure to reduce emissions to theenvironment and strong growth prospects or o-shore hydrocarbonas well as renewable energy, investments in maritime industries are

expected to see strong long term growth. A continued and expandedstrong presence in various maritime markets will substantially con-tribute to Europe’s prosperity. Joint eorts rom industry and policy makers are required to achieve this objective. The call by the EuropeanCommission or a new industrial revolution is highly encouraging in this context and sets theoptimal rame or the renewal o the LeaderSHIP initiative – LeaderSHIP 2020. SEA Europe isully committed to make LeaderSHIP 2020 a success or the industry and a new role model orthe European industrial policy.

With the continuation o the activities carried out by CESA and EMEC, SEA Europe will conduct its work in a wide array o working groups and committees. Thereore, the here presented activity reports o CESA and EMEC also serve as an introduction to our new organisation.

The creation o SEA Europe sends out a clear signal that the European maritime technology industry is actively addressing its challenges with joint orces.

Las Gøvll-Dahll Bad My Chairman o SEA Europe Vice-Chairman o SEA EuropePresident o EMEC Chairman o CESA

Foreword

Foreword

Bernard Meyer

Lars Gørvell-Dahll





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1. Market development 6

2. Introduction o SEA Europe 15

3. LeaderSHIP 2020 16

4. Activities’ reports o CESA 17

5. Activities’ reports o EMEC 38

6. SEA Europe society 51

Annex 1: Statistics 2011 54

Annex 2: SEA Europe Member Associations 62

Annex 3: SEA Europe organisation 65

Annex 4: Picture reerences 66

Index

Index



Introduction

The commercial shipbuilding and the marine equipment industry operate in a truly global marketand is uniquely positioned to address the new challenges o population growth, economic development and environment protection. Nevertheless, ater a huge speculative boom, marked by the creation o large new building capacity mainly in Asia and eet overcapacities, the fnancialmarkets collapsed, severely aecting the entire maritime sector. The recovery signs showing atthe beginning o 2011 in the seaborne trade volumes were not strong enough to compensateor the excess eet and generate new demand.

In shipbuilding, massive overcapacities have led to ferce and sometimes unair competition orscarce new building orders; a situation lasting or our years now. This, coupled with deliveriescontinuing at excessive heights, has put orward pressure on ship prices, while materials andlabour costs have remained at pre-crisis rather high levels.

On the shipping side, the historical world eet increase has prompted cost-controlling measuresin every shipping segment as charter rates remained low compared to the operating costs. Thecurrent world eet has been built during a low-bunker price era. Fuel has always been a majorcost or shipping companies, but in these times it replaces capital as key input. High uel priceshave not enabled operators to run the ships at proftable levels, let alone to provide adequatecash ow or investments in new ships or linked to energy-saving green technology.

Baltic Dry Index, 2007-2012

The ship fnancing markethas been heavily aected

by the new disciplineon the fnancial marketsconsequent to Basel III. The abundant supply o cheap credit has almostdried up with the collapseo Lehman Brothers. Maineconomic powers aredealing, in the currentperiod, with measurescharacterised by largescale macro-economic

stimulus programmes tocombat the impact o thefnancial and economic crisis. Funds or new projects are scarce and expensive, and there ishardly any desire to invest in new, unproven albeit state-o-the-art technologies.

Three major trends impact the state o the maritime industry and inuence the directions it couldgo in the near-long term:

Economic outlook - global economic problems are continuing to suppress shipbuilding ordersand it is not solving the problem o production capacity and overcapacity within the global eet. The economic power is shiting rom OECD to non-OECD countries and net exporters becomenet importers.

1. Market development

Source: Bloomberg.com



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Energy prices – in recent years there has been a dramatic increase o bunker uel price, whichis expected to act as a break to the overall competitiveness o the sector. On the other side, in-crease in energy prices will push urther in the ocean exploratory work or new sources o energy.

Social sensitivity - the social sensitivity to the environmental impact o human activities has

spawned the drive or new regulations being placed on the maritime industry.

As it stands now, the global crisis in shipping, shipbuilding and ship fnancing is ar rom beingover and the industry will continue to be exposed to major risks or quite some years. At thesame time, it is necessary to recognise that shipbuilding and shipping will have a key role notonly in sustainable transport but also in sustainable energy supply, particularly by a rigorous o-cus on innovations, which oer good new market opportunities.

Crude oil and Bunker Fuel Prices

With the high uel prices, there are big margins to improve energy efciency and to reduce emis-sions rom ships, provinding good market opportunities or equipment suppliers and shipyardsoering relevant technical solutions. However, fnancial constraints o shipowners and difcultfnancing conditions risk jeopardising the ability o European producers to grasp these marketopportunities and the achievement o environmental targets as well. The same applies to mari-time companies aiming at the diversifcation o their products to serve the new maritime indus-trial activities.

World market

In hindsight, it turned out that the global shipbuilding experienced an enormous boom between2004 and 2008, resulting in a sharp increase in new capacity in Asia and excessive tonnage onmost market segments. In 2011-12, the world eet continued to increase, passing or the frsttime over 1 billion GT. Due to huge orderbook built during the new ordering boom o the pastdecade, the planned deliveries continue at a high level in 2012.

Earlier demand expectations or 2012 were higher than the actual fgures and the newbuildingdemand or the period till 2020 is most likely to remain inerior to available capacity as thetraditional shipping markets have built signifcant overcapacities.

1 Market development

S

o u r c e : B u n k e r w o r l d . c o m



The production capacity is expected to continue to increase as many greenfeld yards have not yet been fnished. At the same time, resource-rich countries have made plans to strengthen theirshipbuilding capacity, i.e. Brazil and Russia, in order to have better control over the supply chainand cargo transport costs. Consequently, the peak available capacity is yet to materialise and thecompetition is expected to remain tight as the shipyards building conventional cargo ships willtry to climb the complexity ladder to cope with low demand or cargo ships.

S o u r c e :

C E S A b a s e d o n I H S - F a i r p l a y a n d U N d a t a

D a t a s o

u r c e : I H S F a i r p l a y ,

F o r e c a s t : C E S A



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In 2011, the global new orders stood at year 2000 level. However, the market shares balance hasshited undeniably in avour o Asian shipyards, with European yards attracting only 6% o orderscompared to 18% in 2000. South Korean yards have maintained their lead, recovering partially rom the disastrous 2009. By the end o 2011, the global orderbook slipped to 111Mln CGT asthe annual demand was too weak to counterweigh the production.


D a t a s o

u r c e : I H S F a i r p l a y

D a t a s o u r c e : I H S F a i r p l a y d a t a f r o m I H

S - F a i r p l a y



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Cargo ships account or 25 Mln CGT or 82% o the total ordered in 2011, but the proportionschanged compared to previous years. As the energy demand and the oil prices increased, thedemand or non cargo vessels increased to 4.6 Mln CGT, and together with passenger segmentpassed over 18% o the total annual orders.

Looking at the market rom the value point o view, it is noticeable that the 2011 recovery hasseen strong investments in the specialised vessels segment. I in CGT terms, this reached 18%,in dollar terms investments in specialised ships were boosted to 60% o the total 96 bn USD. Asthe majority o orders were or the big oshore units, in 2011the Korean yards took 54.4% o thetotal oshore investment market. In the frst hal o 2012, 15.7 bn USD have been invested in theoshore sector, compared to 24 bn USD in 2011 - a record investment fgure next to year 2007.Investments in cruise vessels are down to only 1.4 bn USD rom 5 bn USD in the previous two years or hal the amount invested in record year 2007.

Yards and supplier companies will continue to battle with the supply-demand balance, most o them having already modelled their strategies along the specialised markets. Investment trendshave switched rom investing into cargo ships to spending in specialised vessels. With overca-pacity in mass segments acute, many o the shipyards have already started to oer products orthese markets and competition is expected to be very severe.

The small number o transactions both in newbuilding and second hand markets or transport-related ships during the last period has been ar rom sufcient to estimate newbuilding pricesor ship values. With the continuous depressed level o earnings, ew shipowners have the ap-petite to order new cargo ships and even expenditures on repair and maintenance have beenrumoured to be sacrifced. Increasing costs put pressure on shipowners revenues‘, especially as the reight rates remain below OPEX across most ship types and sizes. In such conditions,interest has grown in managing the uel cost. Solutions vary rom retroftting to slow steamingand increasingly, to a non-cost actor - scrapping. Depressed market and growing bunker pricesduring 2011-2012 accelerated the scrapping o inefcient tonnage.

D a t a s o u r c e : C l a r k s o n ’ s r e s e a r c h



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Due to the strong increase in rates during the last decade, the owners have kept trading shipsthat otherwise would have been sold or demolition. As the table above shows, tankers werescrapped around age o 26 beore 2000, but reached an average scrap age o 31 in the lastperiod as the charter rates were growing to historical peaks. As the market reversed duringthe economic crisis, the average scrap age or tankers in 2011 dropped to 25 years. Clarkson’sResearch reports an average age o demolished tankers o 22.5 at the end o June 2012. Similartrends are valid or the rest o the cargo ship types. Due to the prolonged period o low neworders, the European orderbook ell to 6.3 Mln CGT at the end o the year, roughly 1.5 years

production.


D a t a s o u r c e : C l a r k s o n ’ s r e s e a r c h

Average age o broken-up ships, by type in years



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In the context o the current eet surplus, low reight rates and an increased demand or uel e-fcient ships due to rising bunker uel prices and regulatory requirements, the intensive scrappingactivity is expected to continue.

European MarketWith new orders less than hal the production capacity or more than 4 years, the Europeanshipyards are conronted with a dramatic decline o their orderbooks and a drastic loss in marketshares. The European production continues to slow down as the yard workloads are diminishingat a ast pace. An aggregate fgure o 5.6 mln CGT on the orderbook provides workload or lessthan a year and a hal, with some yards better occupied than others. This could only translate intoproduction stoppages unless urgent new orders are placed.

Some yards have repeatedly stated that access to fnance has become one o the most importantactors in the international competition or shipbuilding contracts. There are strong indicationsthat sometimes availability and terms o fnance decide on placement o important contracts with a specifc yard rather than technical competence. Funds or innovative and especially un-

proven projects are not only scarce but also very expensive. Many European commercial banks which had been leading global providers o shipping fnance have reduced their exposure to thesector or various reasons. In the absence o commercial banks fnancing, state supported exportcredits have gained importance all over the world, in particular in the large shipbuilding nations.State support credits’ availability in Europe is limited, due to budgetary constraints o MemberStates and difculties to refnance loans or long maturities. In addition, in some important coun-tries the availability o fnance has been linked to local content requirements or build-at-homepolicies.

Nevertheless, the industry’s long term confdence is strengthened by GDP growth in emergingcountries and to a lesser extent by the slow recovery in the developed world. There are many developments in shipbuilding towards new market segments in felds such as oshore wind,marine energy conversion (tidal and waves), arctic exploration and deep sea mining.

D a t a s o u r c e : I H S F a i r p l a y



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Strong prospects in deep sea market, new subsea explorations, feld developments and addi-tional oshore feld discoveries are expected to activate new ordering or support vessels whilearctic developments will create demand or new ships designed or various tasks at sea that areequipped with advanced zero-pollution technology. These developments are oreseeable in thenear term as the energy demand is expected to upsurge and the supply will remain predomi-

nantly ossil-uels based. Decommissioning o the old oil and gas platorms and installations innew areas will also generate some demand or oshore works and specialised ships.

Growing ship requirement is expected also rom oshore renewables sector. Purpose-built shipsor the commissioning, operation and maintenance and even decommissioning o wind turbines will be required as the wind arms are spreading deeper into the sea. However, the Europeancountries are reducing public budgets and fnancing or renewable energies is under constraintsat least or the shortterm period. Unless the oil price level continuous above 100 USD perbarrel, the prospects or this segment to become market driven are weak as fnancing remainsheavily depending on governments, now seeing deep budgetary cuts.

Much o the developments in the fshing segment depend on the increase o the world popula-

tion on one side and replenishing fsh stocks on the other side. According to the UN approxi-mately 25% o the world’s marine fsh stocks are considered overexploited and an additional50% are ully exploited. New legislation to deal with this will heavily inuence the demand orships. However, the old fshing eet is presumed to be replaced by modern, better perormingships at some point in the near uture. The result will thus be visible not in the total eet increasebut in new building requirements to replace the scrapped capacity.

A number o the above identifed new market segments can be characterised as a potentialEuropean home market. This applies certainly to the oshore wind, whereby at present some75% o the global oshore wind capacity up to 2020 is to be installed in European waters. Othergeographical markets, especially Asia and South America, are developing rapidly and they orma sizeable export potential or European technology in the medium term. It was recognisedthrough various market reports that none o these market segments will become game-changersin the short term, replacing mainstream shipbuilding markets, but that these are rather nichemarkets as part o diversifcation o the maritime manuacturing industry with signifcant growthpotential on the medium to long run, which European companies should be able to beneft rom.


Data source: CESA based on NA data



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D a t a s o u r c e : C E S A b a s e d o n N A d a t a

D a t a s o u r c e : C E S A b a s e d o n

N A d a t a

D a t a s o u r c e : C E S A b a s e d o n N A d a t a



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The Ships and Maritime Equipment As-sociation, SEA Europe, was establishedon 1 June 2012 by the members o CESAand EMEC. This joint association willrepresent the interests o the Europeanmaritime technology in Brussels and in-ternationally by speaking with one strong voice.

The Association represents an industry which has an annual turnover o ap-proximately 72 billion € and a workorceo more than 500,000. Members o thisAssociation comprise o leading ship-building, ship repairer companies and

maritime equipment manuacturers. SEAEurope has as its main objectives:

1. To promote the mutual interests o the member associations and thecommon interests o the maritimeindustries who are members o these associations;

2. To promote the design, construction, reft, maintenance and modernisation o excellent saeand environmentally sound ships, maritime structures, products and services by using state-o-the-art technologies, irrespective o their ag or area o operation;

3. To promote air trade and normal competitive conditions in Europe and worldwide;4. To represent the interests o the sector with European and global institutions/organisations

and general public in order to maintain and enhance its recognition as strategic industry;

5. To inorm European and global institutions and organisations o relevant technical,economic and legislative/administrative issues;

6. To promote cooperation between all companies covered by the membership;

7. To promote co-operation between the member associations, to acilitate contacts and networking between members and non-members;

8. To participate in and inorm the member associations about international developments inthe maritime industry and to develop arrangements or the exchange o general market and

policy inormation;9. To promote and acilitate research, development and innovation in the sector including the

promotion o relevant projects and the dissemination o results among its members;

10. To support and strengthen the respect and protection o intellectual property rights.

SEA Europe will continue to build upon the well-established work o CESA and EMEC through adiverse range o policy initiatives and working areas whilst reafrming the close working relation-ships with International and European Institutions and wider maritime stakeholders.

2. Introduction o SEA Europe

2 Introduction o SEA Europe



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A decade ago, the European shipbuilding industry launched its initiative to build a comprehen-

sive policy approach or the sector. The European Union embarked upon LeaderSHIP 2015 andset course or a new modern orm o industry policy. The world has gone through a decade o change. The fnancial crisis in Europe strengthened the understanding that industry is the back-bone o our economy and it gave renewed motivation to ensure sound conditions or industriesto thrive. Europe discovers that it needs its so-called real economy now more than ever. Industry is the key to recovery o economic growth and jobs and maritime industry is an excellent pointin case. Despite all the advances made in the recognition o shipbuilding as a high-tech sector,the current crisis has quickly brought back or some policy makers the perception o a sun-setsector. Similarly, shipping is today more oten criticised or its critical environmental perormancerather than or its vital role as saeguard or the daily supply o energy and goods to our people. The industry’s eorts to push or renewal o LeaderSHIP 2015, taking on-board the undamen-tally changed conditions in the global maritime industry and rebuilding eective short and long-

term action were well received. Commission Vice-President Antonio Tajani presented a report tothe Competitiveness Council on 5 December 2011 in which he proposed to review LeaderSHIP2015 in close cooperation with all stakeholders in order to establish a new LeaderSHIP 2020strategy. This strategy aims at ostering the maritime technology industry, encompassing produc-tion and maintenance o ships and other maritime hardware including the ull supply chain o system, equipment and service providers. The involved stakeholders include also representativeso user-groups such as shipping, dredging or o-shore wind energy generation.

In an intensive process involving, apart rom relevant industry representatives, also trade unions,NGOs and policy makers rom regional and national level as well as various European institu-tions, extensive working papers have been prepared in the areas o (A) competitiveness andfnance, (B) research, development and innovation and (C) employment and skills. These orm

the basis on which the strategy paper will be crated. The document, which will be presentedearly in 2013 will set the rame or immediate actions in 2013 as well as beyond next year. Itis intended to complement policy action by initiatives to improve the collaboration within theindustry.

Maritime industries will be among the top growth sectors o the 21st century. Substantially im-proved sustainability and new industrial activities on the oceans will drive investments. Progressin maritime technology is the key to uture business success. Thereore, Europe maritime tech-nology leadership oers a sound basis or a European success story. I LeaderSHIP 2020 suc-ceeds in passing this message, the right basis will be achieved or new comprehensive actions.

3. LeaderSHIP 2020:A new Industrial Revolution or the European Maritime Technology Industry



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4.1. International relations

OECD

At its meeting in November 2011, the OECD WP6 agreed to introduce a process o peer reviewo government support measures provided by governments to their shipbuilding sectors. Japan volunteered to be the frst economy to be reviewed, and all WP6 members will eventually be reviewed in turn. The objectives o the peer reviews are: to strengthen the identifcation o govern-ment subsidies, policies, practices and measures that should be reported in the WP6 Inventory o Subsidies and Other Support Measures; and to enable such policies, practices and measuresto be discussed within the WP6 so that their impact on the shipbuilding industry can be betterunderstood. The next economies in the roll are: Sweden, South Korea, Greece, Germany, Portu-gal, Italy, etc. in total 17 countries.

During the same meeting, a proposal to carry out signifcant multilateral negotiations to overhaulthe Sector Understanding on Export Credits or Ships (SSU) was considered. It was advised thatin its current ormat the SSU would be unlikely to provide “sae haven” protection at the WTOi being challenged. The WP6 Secretariat is currently preparing a detailed scoping document torefne the negotiating ormat and lay out the resource requirements. Nevertheless, the absenceo China and other major non-OECD economies in such negotiations will pose obstacles to thedevelopment.

Furthermore, Japan has tabled a proposal to introduce an environmental actor (CO2

emissions)into the SSU in order to promote low carbon emission ships by mitigating the fnancing condi-tions or them. CESA welcomes in principle the concept, but suggests that alternative assess-ment criteria other than the Japanese proposal should be explored.

In parallel, WP6 is considering the extension o the application o SSU to ship machinery andequipment.

In addition to debates on the above listed topics, the WP6 meeting held on 21-22 June 2012 hasorganised a special session on market distorting actors to reconsider market distorting actorsin light o the experiences gained during the Shipbuilding Agreement negotiations and provideguidance to the WP6 on possible direction and extent o uture work regarding this subject.Moreover, a workshop with non-OECD economies is proposed or November 2012, based on atheme o “Emerging rom the crisis: Strategies or the shipbuilding industry”.

For the WP6 2013-14 work programme, the ollowing are identifed as the priority areas: marketdistorting actors (and their reduction), export credits, industry support measures (the WP6inventory) and “green ships” as the issues o most interest to members.

4. Activities’ reports o CESA

4 Activities’ reports o CESA



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Bilateral dialogues and upcoming FTAs

The EU-South Korea FTA has been signed on 6 October 2010. The provisional application o theFTA took place on 1 July 2011. Since it has been the most advanced FTA so ar achieved by the

EU, the EU-South Korea FTA is now used as a template or all the other FTA negotiations.

On 27 October 2011 ,a conerence was held in Brussels to communicate the EU-South Korea FTAimplementation with all stakeholders. At this conerence, voices concerning on-going shipbuil-ding trade dispute with South Korea and its attitude in complying with the existing bilateralagreement or shipbuilding (i.e. the Agreed Minutes) were raised. The European shipbuildingindustry requested better cooperation rom the South Korea government in this regard and un-derlined the expectation or a mutually benefcial FTA and improved partnership.

EU-Canada FTA negotiations were launched in May 2009. Soar nine rounds have been car-ried out. The ocus o the negotiations includes competition, sustainable development, rules o origin, tari and government procurement. Government procurement is a complex issue due tothe independence o each province. Regarding shipbuilding, the aim o the Commission is to

eliminate the current tari and this negotiation is still on-going. The original plan was to con-clude the FTA by end 2011. However, at present, the negotiations have been suspended withouta concrete date or the next round.

At the EU-Japan Summit o May 2011, it was decided to start preparations or both an FTA anda political ramework agreement. In July 2012, the scoping exercise or Japan was successully concluded. On 18 July 2012, the European Commission decided to ask the Member States ortheir agreement on opening negotiations or an EU-Japan FTA. Shipbuilding is covered by thescoping exercise.

The EU-Singapore FTA negotiations were launched in March 2012. A urther ministerial meetingis scheduled or 18 July 2012 to review progress on the key outstanding issues, such as market

access in services, government procurement, non-tari barriers, geographical indications, tarisand rules o origin.

The EU-Vietnam FTA negotiations were ofcially launched in Brussels on 26 June 2012. A frstround is scheduled to be held in the second week o October 2012. Both sides seek or a com-prehensive agreement covering taris, non-tari barriers and commitments on procurement,regulatory issues, competition, services and sustainable development.

The EU-Malaysia FTA was launched in October 2010. Soar seven rounds have been carriedout. Negotiations on imported duties (on cars and machineries) are advanced in general. There would be possible eliminations on export duties on metal, timber and other raw materials.

The EU-India FTA negotiations were launched in June 2007. Soar 11 rounds have been heldo which the last one took place on 26 June 2012, ollowed by a number o technical meetingsby the end o 2012. Important issues include market access or goods (improve coverage o both sides’ oers) and the overall ambition o the services package and achieving a meaningulchapter on government procurement. Government procedure is a difcult area and only centralgovernment procedure will be negotiated excluding state/provincial levels. State aid remains asensitive issue which India has reused to include in the competition chapter.

The EU-Mercosur FTA negotiations were ofcially re-launched at the EU-Mercosur summit inMadrid on 17 May 2010. The objective is to negotiate a comprehensive FTA covering not only trade in industrial and agricultural goods but also services, improvement o rules on governmentprocurement, intellectual property, customs and trade acilitation, technical barriers to trade.



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Furthermore, the EU and China have launched negotiations in 2005 to replace the trade andinvestment part o the old Partnership and Cooperation Agreement (PCA) rom 1985. About onequarter o the chapters o the trade and investment track are concluded. The last meeting washeld in September 2011 and no urther meetings were held since.

On 14 May 2007, the EU (DG Enterprise and DG Trade) and China (Commission o Science, Tech-nology and Industry or National Deence o which the ship division was taken by the currentMinistry o Industry and Inormation Technology in 2010) signed a Memorandum o Understan-ding to establish an EU-China Shipbuilding Dialogue. The aim o such dialogue is to set up aplatorm to exchange market inormation, industry policies and government support measuresand acilitate R&D cooperation and IPR protection. The kick-o meeting took place in Brusselsin autumn 2010 only between the ofcial representatives where mainly market inormation wasexchanged. The 11 June 2012 meeting in Beijing is the second meeting and the industry re-presentatives were invited. Both parties agreed that there is certainly room or cooperation. Thecooperation can be at three levels: industry policy, international regulation and private business.Among various possibilities, a separate orum may be set up under the umbrella o this dialogueto bring in the industry and maritime cluster. One pilot project may be launched beore the next

EU-China High Level Dialogue in the end o November 2012. Such pilot project can be on EEDItechnical cooperation or a seminar on new markets. The pilot project will be able to serve as agood test or uture concrete cooperation.

EU and Russia are currently negotiating a new agreement replacing the 10-year old PCA. Thisnew legally binding agreement should provide a comprehensive ramework or bilateral tradeand investment relations. A high level brain-storming meeting took place in May 2012 whereboth sides agreed to exchange lists o important elements to be covered in the trade and invest-ment chapter. The Commission has agreed not to cover market access issues as the agreementis non-preerential and not to diminish WTO rights.

Negotiations or a deep and comprehensive EU and Ukraine FTA, as part o the EU – UkraineAssociation Agreement, were concluded in December 2011. A technical initialing took placeon 19 July 2012. Further technical steps towards signature will be taken according to relevantinternal EU procedures.




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4.2. Research, development & innovation Research, development and innovation are essential

or providing better maritime hardware to the marketsand to sustain the competitiveness o the Europeanindustry. Thereore, CESA has continued to invest alot o eort in this area through its dedicated Working

Group COREDES as well as by running the Secretariat or the Waterborne Technology Platorm.Last year, eorts were ocused on two main strands: (1) preparation o topics and research pro-posals or the 6th Call under the Community Research Framework Programme 7 (FP7) and (2)preparation or the next Framework Programme (HORIZON2020).

As an outcome o the dialogue started inside COREDES, the WATERBORNE TP and the EuropeanCommission developed the topics list, which has been inserted in the drat Work Programme2013 or the 6th Call o FP7-Cooperation-Transport-Sustainable Surace Transport (SST).

As with the 5th Call, the preparation o the topics was a joint eort between CESA and EMEC which set the goals or the maritime engineering and manuacturing cluster acilitating the basisor a stronger collaboration and coordination in this area.

In the meantime, the response o the sector to the 5th Call was excellent in terms o quality and quantity o the proposals submitted with more than 50 project proposals and a request o unding or nearly 120 Mln €€against around 24 Mln€€made available by the EC.

HORIZON2020 preparation has been developed within the rame o the WATERBORNE TP withthe main objective to create a solid entry into the program or the maritime sector. The WATER-BORNE TP Support Group has been ocusing its eorts to work towards a Public Private Partner-ship or the Maritime Sector emphasizing the ‘vessel’.

In early spring 2012 SEA Europe (COREDES / EMECrid) organised, or its members, the frst o a two day annual ‘technical visit’. The goal is to create a network o industrial experts to oerthe opportunity to exchange views on technical issues o interest and starting a collaborativeapproach that could enhance the industrial relationships, which can acilitate the preparation o proposals or working together in possible uture research activities as well. This frst visit washosted by the Barkmeijer Stroobos Yard in the Netherlands and Meyer Wert Yard in Germany.

The initiative was very well received and it was attended by around 20 proessionals rom Euro-pean yards and equipments manuacturers.

With the creation o SEA Europe, the COREDES Committee will undergo an important evolution.

The new Working Group will be named SEA Europe RDI Group.

2012 has also seen the launch o theSEA RDI News (letters): (1) the Firston Research Topics and Opportunitiesin the 6th Call and (2) the Second ageneral update on “high on the Agen-da” topics such as Public Private Part-nership preparation and the Leader-SHIP2020 RDI Group Interim Results.

SEA Europe RDI News Is sues 1 and 2



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WaterBorne TP

The WATERBORNE TP undertook the preparatory work or the6th Call mainly in the Support Group ollowing an agreed

procedure worked out by the Secretariat and adopted al-ready in early 2010.

Topics or the 6th Call were delivered in November 2011 tothe European Commission. The large majority o the Topics proposals have been taken on boardby the EC or the work programme 2013 showing and reconfrming once again the success o the WATERBORNE TP working model and the added value or SEA Europe o being in a leadingseat o the ETP.

The proposed topics looked at are:(1) Towards Zero Emission(2) Saety in Operative Conditions(3) Low Cost Mechanization

(4) Enhanced Ships’ Inspections(5) Shaping the R&D needs or the WATERBORNE Sector(6) Oshore installation Vessels(7) Antiouling

With the upcoming HORIZON 2020 (FP8) programme and ollowing the publication o theWaterborne Declaration in 2011, major eorts have been directed towards the implementationo the proposed technology platorm strategy. To help the decision making process, WATER-BORNE TP, with the support o CASMARE project organised a Technical Workshop among majorindustrial stakeholders in February 2012 in Brussels. The result o this exercise was a clear deci-sion to ocus on the development o a contractual Public Private Partnership in HORIZON 2020ocusing on Vessels.

2011 has seen the publication o the updated WATERBORNE TP Strategic Research Agenda andImplementation Plan. The updated VISION 2025 has also recently been published.

The WATERBORNE TP was also present during the TRA2012 – TransportResearch Arena 2012 in Athens, a stakeholder conerence organisedby the EC in collaboration with and or the surace transport (rail, road, waterborne transport). WATERBORNE TP perormed excellently in theArena with an impressive stand, a special WATERBORNE TP session, pre-sentations and speeches at the opening session in the presence o theEuropean Commissioner or RTD Máire Geoghegan-Quinn.




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WATERBORNE TP stand at TRA2012

During the Annual WATERBORNE General Assembly in Brussels, the WATERBORNE Board hasbeen reconfrmed: Secretary is Luciano Manzon, Vice-Chairmen are Mario Dogliani rom Rinaand Stelios Kyriacou rom Wärtsilä. Chairman o the Support Group is Pierre Sames rom Ger-manischer Lloyd, Chairman o the Mirror Group is Jean-Yves Leven rom CETMEF and fnally WATERBORNE Chairman is Willem Laros, Group Damen who agreed to serve as Chairman or atransitional period until a new chairman can be appointed.

EU R&D Framework Projects

CESA is coordinator o three Coordination and Support Actions in Call 2 and

participant in several other projects, some o which still running rom calls un-der FP6 and FP7.

▪ CASMARE

The WATERBORNE TP support mechanism has successully ulflled its scopethroughout the reporting period: align and coordinate the research eorts atEuropean level in the maritime sector. The coordination action CASMARE has put in place a number o actions andtools to support the unctioning o WATERBORNE TP .

More ino under: www.waterborne-tp.org

▪ EMAR 2RES

Scope o this Coordination Action, under the perspective o Transport, is to es-tablish a liaison among the Marine and the Maritime Community and to identiy possible common strategic objectives. The project has successully achieved allits targets or the frst period installing the oreseen committees and panels, andrunning six technical workshops attended by more than 70 experts to sketchthe uture o Marine and Maritime Research under the transport perspective

identiying at the main areas or R&D collaboration among the two communities.



23

These are:

Impact o maritime transport on the marine environment[biological and chemical impacts]

Water as a common medium [“physical” relationships] Monitoring climate change and the benefts o operational oceanography to maritime

transport

Relationship between maritime transport & climate change

Proo that the overall process was successul in triggering joint research themes or the marineand maritime community can be seen in the EC 2012 Work Programme on Under Water Noiseunder the OCEAN o TOMORROW Call identifer. The topic was indeed identifed during the development o the project and the outline or uture research was worked out in the EMAR2RESexpert group and was aterwards endorsed in the WATERBORNE process as a Topic to be pro-posed to the EC.

Furthermore, two extra workshops were proposed and carried out during the last year o work:the frst ocusing on arctic navigation and the second on under water noise. In particular thelast one (the Topic and the Expert Group) was then chosen as the topic to be brought into theMARCOM+ Forum as prototype o sustainable permanent collaboration among the two com-munities.

The fnal FISH & SHIPS joint conerence o MARCOM+ andEMAR2RES (March 2012) was the occasion to launch the Per-manent Marine Maritime Forum o which EMAR2RES is con-tributing being part o it or the Transport related issues andor which the Under Water Noise Expert Group is now in placeand active in defning a joint European Road Map or RDI on

the topic.

More ino under: www.emar2res.eu

▪ VISIONS OLYMPICS

The Support Action Visions Olympics (continuation o VISIONSNoE) will aim at capturing revolutionary concepts or maritimetransport and ocean exploitation rom the unbiased minds o European universities’ students.

The Visions Olympics contests Year 2010 and Year 2011 involved more than 200 students and

50 new concepts o projects ideas were submitted. Two brochures with the collection o theinnovative ideas submitted or the contests have been published and disseminated. The twoAwards have been sponsored by two major European Maritime Industries IHC Merwede andMeyer Wert. A third contest is on-going while the ourth is now under preparation. All togetherthe “Visions Olympics Contests” have seen 8 editions (dating back to the VISIONS NoE project)establishing this Students’ Competition as the most known and best attended in Europe or theMaritime Sector.

The 2011 Award was presented during the TRA 2012 Conerence in Athens in April 2012 and wassponsored by Meyer Wert.




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Awards 2012 at TRA2012 with Commissioner Máire Geoghegan -Quinn, Bernard Meyer and winning students

More ino under: www.visions-olympics.eu

CESA is also involved as partner in the ollowing other on-going projects:

VECTORS www.marine-vectors.euTRA2012 www.traconerence.euTHROUGHLIFE www.throughlie.eu

CESA is also involved as partner in the ollowing recently approved projects:

AQUO – on Under Water NoiseLEAF – on Antiouling innovative Techniques

▪ VECTORS

The scope o this large scale integrating project is the investigation o the drivers, the pressuresand the vectors causing change in the marine lie clariying their impact on the ecosystem struc-tures and on the economics on marine sector and society. On the basis o the results o thatinvestigation, the project aims at fnding actions or the adaptation and mitigation o the nega-tive eects, with the introduction o new technologies, new fshing strategies and new policy

proposals.

The project activities started in February 2011, or a period o 4 years; the partners (37 in total,coordinated by the Plymouth Marine laboratory) are (in large majority) marine scientists romuniversities and oceanografc institutes and research institutions in the felds o economics andsustainable development.

More ino under: www.marine-vectors.eu



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4.3. Saety & environment

Introduction

The Technical Advisory Committee (TAC) - now SEA Europe Technical Committee - has to analysethe technical details o regulatory developments and to advise authorities at various level.

The TAC itsel has met our times during the reporting period, contributing with qualifed inputsin several international appointments :

• at the IMO the ollowing meetings have been attended by CESA delegations: MSC 90, MEPC62, Intersessional WG EE2, MEPC 63, DE 56, BLG 15

• the CESS annual meeting under the umbrella o JECKU

• the Tripartite annual meeting

• several Tripartite initiatives also continued in 2011-2012: EEDI industrial meetings or mini-

mum power requirements o EEDI ships, EEDI electric power tables, EEDI Joint WorkingGroup Meetings or applicative guidelines

• the organisation (jointly with EMEC) o the annual CESA/EMSA Workshop with major agen-da items on LNG/Sulphur Regulation, Ship Saety, Oshore Servicing Ships, Watertight Com-partment Testing

• EC stakeholders conerence and EMSA Workshop on Passengers Ship Saety

• several international conerences such as Green Shipping Conerence

Main agenda items during in the period 2011-2012 have been: climate action, air pollution, GoalBased Standards (GBS) and the Ship Construction File (SCF), the noise level on board and under water, gas uelled ships, polar code and ship saety.

International Maritime Organisation

Within the European shipbuilding industry, the “International Maritime Organisation” (IMO) isrecognised as the appropriate institution or setting the legal ramework or ship technology. Highstandards are not only crucial or urther improvements in ship saety and marine environmentprotection but also orm the basis or the competitiveness o innovative high-tech companies.

Thereore, shipyards and equipment manuacturers must speak with one voice in order tobalance the dominance o ags o convenience and sub-standard ship-owners when developingbinding technical regulations. European shipyards and marine equipment suppliers can beneftequally rom more stringent saety and environmental standards i these requirements are imple-

mented homogenously world-wide.

CESA is an active IMO member since 1979, but still the only non-governmental organisation o the shipbuilding industry covering all issues o signifcance to shipbuilders, ship-repairers andequipment manuacturers. CESA regularly participates in the meetings o the Maritime Saety Committee (MSC) and Marine Environment Protection Committee (MEPC) as well as at themeetings o their Sub-Committees on Bulk Liquids and Gases (BLG) and on Ship Design andEquipment (DE) and actively contributes to various Correspondence Groups working interses-sionally.




6

The work in the MEPC during the last twelve months was ocused on the ollowing issues:

• European shipbuilders supported the eorts to regulate and reduce the emission o green-house gases (GHG) rom international shipping, which were adopted by the IMO in 2011.Based on a CESA intervention, the energy efcient design index (EEDI) will or the time

being not be applied to cruise ships, RoRo vessels as well as small specialised general cargoships (in particular heavy lit vessels). CESA is leading the development o modifed EEDIconcepts or complex ship types and continues to promote Market Based Measures (MBM),such as emission trading schemes or a bunker levy, as preerred reduction options oeringthe technological exibility required by high-tech shipbuilders.

To this end, CESA led a Workshop hosted in the IMO on the EEDI Verifcation Guidelines,participated in the Joint Industry Working Group on the same subject in view o submissionto MEPC 64 (as it happened) and fnally participated in the Working Group on MinimumPower Requirements to address the issue o underpowered ships which may raise rom theEEDI application. In this respect, CESA decided not to co-sponsor the submission to MEPC64 as the proposed measures were elt as not mature enough.

•

Gas-uelled ships are a key technology or the reduction o greenhouse gases in order tocontribute to the fght against climate change. A rapidly increasing market or ships usingLNG or propulsion or utilising uel cells as auxiliary power units could only be achieved by means o broad saety provisions covering all relevant energy converters and uel types. To this end, CESA initiated an expansion o the scope o the IGF Code to uel cells as wellas LPG, Hydrogen and other low ash-point uids. The drat Code has, thereore, been re-named “International code o saety or ships using gases or other low-ashpoint uels”.

• The development o the new mandatory international “Code on the Protection against Noiseon Board o Ships” was fnalised in February 2011. The IMO ollowed to a large extent CESA’sproposal o technically easible noise reductions in the living area o the crew and those work places while maintaining the current noise limits in machinery spaces where protection willbe improved by advanced ear protection. The Code approved by MSC 90 will improve the

living conditions and occupational health standards o seaarers and set a competitive edgeor European shipbuilders that have gained technological leadership in the optimisation o ship design and components concerning noise and vibrations.

• Participation in the Correspondence group on minimizing underwater noise in view o sub-mission to DE 57. The Sub-Committee established a Correspondence Group on MinimizingUnderwater Noise, under the coordination o the United States, and instructed it (1) to takeinto account document DE 56/24 and the inormation contained in documents MEPC 59/19and MEPC 60/18, giving special consideration to the priority ocus areas identifed in thetwo latter documents, continue to examine the available options or ship-quieting technolo-gies and operational practices; (2) to develop non-mandatory drat guidelines or reducingunderwater noise rom commercial ships;

• Polar regions oer signifcant market opportunities or the European producers o complexhigh tech ships, which can only be utilised through the harmonisation o national legislation. The “International Code or Ships Operating in Polar Waters” will enable the sustainable eco-nomic use o the Arctic and Antarctic in the feld o exploitation o oshore energy, marinemineral resources and ecological tourism. The Code will cover the ull range o design, con-struction, equipment, operational, training, search and rescue and environmental protectionmatters taking into account the highest standards. Due to the risk actors in polar shipping,such as remoteness, temperature, ice coverage and limited SAR capacities, CESA promotesthe position that only highly specialised ships that are purposely designed or retroftted orthis demanding service should be admitted to polar regions. CESA is participating in theestablished CG submitting its own views and position on the issue.



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• Oshore wind energy is an emerging market o utmost signifcance or the European ship-building industry, which is generating a large variety o novel ship types specifcally de-signed or new transport and erection tasks on or beyond the continental shel. The lack o international requirements or saety and environmental protection has led to an inconsis-tent implementation o diverse national standards resulting in signifcant variations in the

saety levels inducing market distortions. Thereore, CESA together with Germany and ICSproposed to develop international guidelines or oshore wind arm vessels, clariying theapplication o existing IMO instruments to these types o vessels, since oshore wind armsgenerate the design and construction o novel specialised ship types. This initiative has beenapproved by DE 56.

• CESA continued its eorts to strengthen the protection o Intellectual Property Rights (IPR) within the regulatory work o IMO. These activities comprise the introduction o IPR clausesand secrecy agreements in new mandatory instruments requiring the disclosure o sensitivetechnical documentation, such as the “Guidelines on Survey and Certifcation o the EEDI”and the “Ship Construction File” (SCF). Within a Cross Industry Group o shipowners, clas-sifcation societies and shipbuilders, CESA leads the development o an industry standardregulating in detail access and protection on SCF documents in order to adequately balancedesign transparency and IPR protection.

• CESA continued to support the implementation o the 2008 MARPOL Amendments man-dating signifcant reduction o sulphur emissions in “Emission Control Areas” (SECA) in Eu-ropean water. Thereore, the industry welcomes that the revised EU Sulur Directive willbe amended such that it will be consistent with IMO legislation, providing also alternativemethods o compliance, namely the installation o exhaust gas cleaning systems. Innova-tive shipbuilders and proactive ship owners should be supported through pilot projects andenvironmental investment in order to meet both emission targets and deadlines. In addi-tion, CESA recommends to advance the issue o the designation o the Mediterranean andBlack Sea as new SECAs in order to provide a level playing feld in all EU waters and to avoidredistribution o seaborne trades to and rom Europe that might yield a sulur leakage to

southern Europe.• In May 2012, IMO launched an initiative to review and improve Passenger Ship Saety in

reaction to the tragic loss o the cruise ship Costa Concordia. The MSC embarked on a set o immediate operational measure to be approved this year and identifed ongoing activitiesrelevant to this incident. All design, structural and equipment issues were introduced into along term work plan, which will be based on the results o the accident investigation.

CESA has contributed very actively and the technical input provided was acknowledged by theOrganisation. The intensifed international networking among shipbuilders (through CESS) and with other industry associations (through Tripartite meetings) has yielded an increasing inuenceo the European shipbuilders. Within the reporting period, the ollowing (joint) submissions werepresented at IMO:

• DE 56/12 - CLASSIFICATION OF OFFSHORE INDUSTRY VESSELS AND CONSIDERATION OF THE NEED FOR A CODE FOR OFFSHORE CONSTRUCTION SUPPORT VESSELS - Towards ap-propriate international standards or oshore industry vessels or the sae and sustainableexploitation o renewable energy sources (joint submission with Germany and ICS)

• EE-WG 2/2 - FURTHER IMPROVEMENT OF GUIDELINES ON SURVEY AND CERTIFICATION OF THE EEDI - Proposal or a Secrecy Agreement or better IPR protection

• MEPC 64/4/14 - AIR POLLUTION AND ENERGY EFFICIENCY - Proposal or the inclusion o the ro-ro cargo and ro-ro passenger ship types into the energy efciency regulatory ramework submitted by Germany, Sweden and CESA




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TRIPARTITE and CESS

The Tripartite orum is defnitively increasing its profle in terms o results delivered especially onthe regulatory IMO matters. The cross industry initiatives have in general major chances o suc-

cess than isolated attempts; on matters or which a cross-industry approach is possible, CESAshould continue to support and provide technical positions.

During the annual Tripartite meeting, which took place in Bejing in November 2011, CESA waspresent with fve presentations on:

European Developments on SOxEmissions;

Protection o IPR - IPR vs. SCF, LSA, EEDI & Co. – update and new aspects o an unsolvedregulatory problem;

Protection against Noise on board ships;

EEDI or the Ro-Ro Segment;

Underwater noise – a new indexing story? State o the play.

In August 2011, the annual meeting o CESS took place in Gyeongju, South Korea.

CESS continued its activities or the sixth year where eorts were made particularly in respect o the Goal Based Standards (ship Construction File) or new ship construction with respect to theprotection o intellectual property rights, and the current topic on reduction o GHG emissionsrom ships.

Participation in CESS is o crucial importance or inormation circulation and or being inormedabout the numerous initiatives running in the sector especially in view o the uture work thathas to be done in SEA Europe.

The CESS Annual Meeting discussed uture issues and, while achievements are made in respecto coating, structure and environmental issues, urther coordination needs to be done to reectour 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 asteady eye on.

CESS has remained active in participating in various opportunities o enhancing the relationship with related industries to serve its members with opportunities o taking action.

The CESS Annual Meeting also discussed the situation on Port State Control and welcomed theactivities which lead to better quality ships and shipping activities, while noting that the recordson detention continued to indicate that the shipbuilding quality related items are on a gradualdecrease and that the main cause o defciencies are related to the ship operators’ human ele-ment aspects.

The CESS Chairman’s term o ofce has ended this year, but it was decided that his term will beextended or another year.



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4.4. Social dialogue

The European social dialogue is a unique and indispensable part o the European social model.Under the auspices o the European Commission DG Employment and Social Aairs, CESA and

EMF established in 2003 the Social Dialogue Committee on Shipbuilding and Shiprepair, the frstsocial dialogue committee in the metal sector. SEA Europe, as successor o CESA and EMEC andIndustriAll, as successor o the European Metalworkers’ Federation (EMF), have committed tobuild a common strategy or the European maritime industry.

The European network o shipyards, equip-ment suppliers, research centres and otherproviders o advanced technologies andengineering services counts about 9,000companies and a workorce o more than500,000 people. The European industry holds strong market positions in building

complex and high-tech vessels and in shiprepair while companies in the value chainare world leaders in a wide range o techno-logically advanced products. Today’s struc-ture o the European industry, with a greatdiversity o advanced yards and suppliers isthe result o severe restructuring processesto ace the ferce competition and growtho the sector in the Far East countries. Thekey actor to success is the people who car-ry out the business. As social partners, theemployers and employees representativeshave made considerable eorts to promotethe importance o qualitative developmentor the long term competitiveness o theEuropean maritime manuacturing industry and the adaptation o the entire system tothe challenges o the 21st century.

Market and Policy Developments WG

Overcoming the crisis in shipbuilding and decisive response measures to avoid irreparable struc-tural damages resulting rom massive global unbalances remained the core activity o the sub-

group. Strengthening the competitiveness o the European maritime industry was the objectiveo all voiced messages. In December 2011, the Social Partners have met the Deputy DirectorGeneral o DG Enterprise and Industry, Daniel Calleja Crespo and discussed the situation in theindustry. In his address to the SSDC, Mr. Calleja has confrmed DG Enterprise and Industry’s com-mitment to pursue a coordinated European policy or shipbuilding. He underlined that Europe isliving the worst crisis since the end o WWII, and like other economic sectors, shipbuilding hasbeen severely hit as the average orderbooks o European shipyards are at historical low levels.As many yards are running out o work already, restructuring is unavoidable. European politicalleaders participating in the previous Competitiveness Council acknowledged that urgent actionmust be taken. He also reinorced the European Commission’s wide support rom Member




0

States to “put in place policies or growth, not austerity only” and to ensure survival o industriesin the atermath o the recession. With the strategic importance o the shipbuilding sector recog-nized, the Social partners have ully engaged into the renewal process o the LeaderSHIP2015 tocreate competitive ramework conditions or the European shipbuilding industry.

Skills and Qualifcations WG

During the past two years, the Skills and Qualifcations WG continued to ocus on the long termstrategy o the Europe2020 agship initiative “An Agenda or new skills and jobs: A Europeancontribution towards ull employment”. The group started the project aiming at identiying theactors in the sector in view o setting up a European Shipbuilding and Repair Council on Jobsand Skills. This project o the European Sectoral Social Dialogue Committee aims at identiyingthe actors involved in training and education in the shipbuilding sector, establishing the contact with them, analysing their activities and evaluating the possibility o launching a council on jobs and skills or the shipbuilding and ship repair sector at European level. The social partnersagreed that the most eective way to aggregate the inormation was to involve a sectoral expert

who knows and understands the mechanisms o the shipbuilding labour market. IKEI Consul-tancy and Research has been contracted to execute the study. A kick-o meeting was held inMarch 2012 where the external expert and social partners agreed on the project objectives and working methodology. With this started the research work, ocused on identiying and map-ping the structures/actors involved at national/regional/local level in labour market and skills

development in the shipbuilding sector in EU countries. Once the structures identifed, IKEIinvestigated through a questionnaire their interest to engage in a European council on skills and jobs or the shipbuilding sector and gathered inormation on what they would be ready to share with other national bodies and what kind o activities and inormation they would look or inrelation to this initiative. The IKEI experts then produced a report on activities in each country with relevant activities and aggregated the results o the investigation.



31

Representatives rom the Social Dialogue Committee and rom regional organisations and edu-cational institutions met IKEI on 19 July 2012 or a workshop to discuss the fndings o the re-search work, exchange opinions on existing actions at national level and reect on the possibility o establishing a European Shipbuilding Council on Jobs and Skills. Following this event, the ex-perts will prepare a fnal report incorporating the inormation, eedback and comments rom the

workshop. The closing meeting planned or October 2012 will provide a orum or discussing thefnal results o the study and reect on the recommendation o establishing or not a Europeansectoral jobs and skills council or the shipbuilding sector, the shape and the added-value it couldeventually provide to the already on-going activities.

Image WG

Getting top talent into the sector has been challenging in the past due to the cyclical nature o the shipping and shipbuilding market, with many boom and bust periods bringing uctuations inthe employment and skills needs. The coincidence o a business cycle with the global economiccrisis brings even more difculties and impacts the results on the industry’s image. While this

is not surprising, the stakeholders must learn rom previous recessions and make sure that theeorts to get talented people into the industry are renewed to ensure we can avoid uture skillsshortages. Already in 2003, on the initiative o CESA, industry stakeholders and the EuropeanPolicy makers have jointly elaborated “LeaderSHIP 2015”1, the comprehensive policy approachor the shipbuilding sector, and the European Shipbuilding Social Dialogue Committee has takena ocal role to respond to the recommendations related to the key point “Securing access to askilled workorce”. The LeaderSHIP 2015 initiative has already brought important results and thesector is increasingly recog-nised as a high technology innovative industry requiringadvanced skills. This messagehas reached some o the ocalgroups via the European Ship-

yard Weeks which took placebetween 2006 and 2011.During the our “ShipyardWeek” campaigns at EU, re-gional and company levels,presented through open days,conerences and other ac-tivities to the public - schools, young people, people working within the sector or in a re-levant one, media, politiciansand fnancial bodies - an authentic picture o the industry and its contribution to the implementa-

tion o Europe’s employment and growth objectives has been projected.

The stakeholders have reached the consensus that the eorts in spreading the message mustbe continued and stepped up within the LeaderSHIP 2020, advocating or concrete actions andpolitical support, rom EU to local level, to enhance the image o the sector over the long termconcretely by:

• Raising awareness about an innovative sector, with visions and uture that oers responsesto many o the modern challenges and, in the same time, new business and entrepreneurialopportunities.

1 COM(2003) 717 fnal o 21.11.2003




2

• Improving the visibility and general public perception o the sector, increasing the under-standing o youngsters and o people who might enter rom other sectors o how their pro-essional interests potentially match the career opportunities the sector has to oer.

Social Standards WGAgainst the background o the increasing migration and increased subcontracting o work, theSSDC has created a special Working Group on Social Standards as good social standards are o mutual interest or employees and employers alike. In 2010, the discussion started on two topicso shared interest – image and respect o the core labour standards. During 2011, the delegatescontinued the discussion on defning a minimum oor o social standards in order to achieve alevel playing feld or all workers. The special negotiation group, created in 2011, has submittedto the Committee two drat versions, approving that the Social Charta should, inter alia, adhereto and promote the undamental principles and rights at work established by the InternationalLabour Organisation and the European Union’s standards already set by European agreementssuch as the Charter o Fundamental Rights and Acquis Communitaire.

4.5. Ship maintenance, repair and conversion

Market situation

This chapter provides an overview o the ship maintenance, repair and conversion business, builtup over the year 2011.

Inormation is gathered by National Situation Reports that orm a regular and important part o inormation exchange in the SMRC Group meetings.

The Ship Maintenance, Repair and Conversion yards carrying out is a special kind o shipbuilding,incomparable to the ship new building industry. Ship maintenance and repair is typically a shortterm activity. Most o the time, the ship is drydocked and stays in dock in average 10 to 12 days. The sector has its own characteristic o a service industry with the aim to assure sae shippingand clean seas.



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Ship conversion is closer to newbuilding yards activities in time scales or each job. However,a reft requires a total dierent approach in having the exibility to constantly accommodatechanges in the workplan, according to the satisaction o the client(s).

SMRC Group participants have concluded that the ship repair industry sector is doing moderately

air. The market is back on the level o 2006. Turnover fgures show 2011 to be about 28% downon top year 2008, Europe-wide, which is more or less the same fgure as last year. Ship repairis, compaired to the main shipbuilding, a constant actor in our industry. We oresee more shipsin the drydock in the next year due to not only compulsory drydocking rom ships which cameon top o the market in the oceans, but also due to new legislation with regard to ballast watertreatments systems and exhaust new SOC and NOX legislations in European Waters.

Shipowners mostly come to our yards or minimum repair which indicates that the shipownersstill suer badley rom the economic downturn. Our yards are competing or work.

Competition is elt rom the Black Sea area (Turkey). Turkey is still able to quote with low pricesand shipowners chose at the moment still or low costs.

SMRC yards cannot yet see a clear picture or 2012, but the general view is that the market isincreasing a little. World trade and reight rates still uctuate.

Conversion enquiries come to the yards which might be signs o modest improvement. Also thenew NOX and SOX legislation requires retroftting, SMRC yards have the expertise and acilitiesto carry out these outstanding works.

In the last quarter o 2011, North Western Europe yards have booked a number o conversions,mostly oshore vessels.

The oshore wind market produces work or some North European yards which indicates thatthe oshore market is doing moderately well.




4

SMRC Meetings

In 2011, the SMRC held three standing committee meetings and one Annual General meeting. The SMRC meetings remained their goals as mentioned in earlier reports:

• Raising awareness o the sector

• Representing the maintenance, repair and conversion yards interests in CESA working groups

• Encouraging innovative thinking about ways to make best use o European yard capacity and capability

The Group’s expertise is used or EU unded research and development projects. The COREDES working group was a trigger to get R&D going or the ship repair yards. Result o all this work in2011 is that ship maintenance and repair is reected in two EC unded projects, RETROFIT andECOREFITEC.

The SMRC Group is a sounding board or both projects and or the ECOREFITEC project installed

as an expert board. These projects are unded by the 7th Framework Programme or Researchand Technological Development. The frst results o these projects are expected at the end o 2012. The Executive Secretary represented the Group in Hamburg on an optimising Ship Mainte-nance Conerence and during the SMM also in Hamburg.

The SMRC group delivered input to the Technical Advisory Committee o CESA. It is a high priority o the Group to be and stay involved in IMO developments like the Polar Code, Ship ConstructionFile (GBS), Asbestos and Energy Efciency (Design) Index, steel structure issues and environmen-tal issues, namely the Cargo Oil Tank Coating Perormance Standard (COT-PSPC), the Goal BasedStandards or new ship construction with respect to the protection o intellectual property rightsand the current topic on reduction o GHG emissions rom ships.

Maintenance, Repair & Conversion Turnover 2006-2011

2006 2007 2008 2009 2010 2011

Croatia 34 33 55 49 46 45

Denmark 100 140 170 160 180 180

France 100 135 135 123 120 90

Germany 747 955 1100 1100 937 770

Greece 86 108 117 87 37,7 30

Italy 330 351 395 350 270 265

Lithuania 66 74 87 61 60 59

Malta 57 49 n/a n/a n/a n/a

Netherlands 525 664 750 485 420 487

Norway 90 90 110 48 50 51

Poland 180 304 235 250 350 289

Portugal 121 132 172 146 89,6 94

Romania 69 54 46 26 26 26

Spain 275 350 403 280 280 285

UK 300 252 270 280 250 250

TOTALS 3080 3691 4045 3445 3116,3 2921

Source: SMRC - CESA



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Formalities

Mr. Costas Kokkalas rom Nerion/Elesis served his frst year as Chairman o the SMRC group.Mr. Willy Salamon (Arno Dunkerque) served as well his frst year as Vice-Chairman o the Group.

In accordance with usual practise, the SMRC Group held three meetings during 2011. The frstStanding Committee was held in Brussels on Monday 1 March, the second Standing committee was coupled with the Group Annual General Meeting held in Oslo on Thursday 9 June as part o the CESA General Assembly. The third meeting was held in Brussels on Thursday 8 December.

4.6. Naval sector

In line with the measures taken by most o the Member States o the European Union to reducetheir defcits, deence budgets are under heavy pressure. This has or will result or Navies in

less new building in combination with putting out o service o existing ships. This situation isexpected to continue, at least or a couple o years. It means that, or our naval yards, the exportmarket will be even more important than in the past. The on-going shit in the world’s economicbalance and trade patterns and the on-going increase o piracy acts have generated an addi-tional need in naval presence and thus in naval equipment. This is especially the case in Asiaand to a lesser extent in the Middle-East and Latin America. Although the recent developmentsin the Arab world have slowed down a number o projects, the overall outlook has not changed.A number o developments areto be watched. First, there is theever growing tendency or coun-tries to increase their local con-tent either by building locally un-der licence or by other orms o compensation. This means thatnew business models need to bedeveloped incorporating local in-dustry, equipment manuacturesand/or the client itsel. As a nextstep, participation in the local in-service support o the vessels willcreate new business opportuni-ties and a basis or on-going presence. Secondly, a number o ast growing economies such asChina and India are now concentrating on the construction o equipment or their home marketbut they will soon be in the position to oer products on the open market. Here, only productsuperiority 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 isthe availability o well-maintained ships on the second hand market as a result o the shrinkingWestern eets. Although the respected selling Governments will be in control, in many cases thetranser o these vessels may result in considerable business or some o our yards in terms o maintenance, upgrading and training.

The coming years will demand a lot o initiatives o our naval yards to secure their global posi-tion. It will mean a shit o ocus rom the production o the initial hardware towards the crea-tion o very exible naval capabilities both at home and in the export market. This will changeour companies into smaller operations with a higher quality workorce with more ocus onoperational knowledge, product development (R&D), project management and in-service support(monitoring, maintenance and operational services).






37

More:• consolidation, work sharing and interdependencies

• ocus on Centres o Excellence

• integration into the wider industrial base (dual use)

Less:• dependence on non-European sources or key deence technologies

During the last CESA/SEA Europe General Assembly, the Naval Group reconfrmed the willing-ness to continue to ollow the developments in the EU Institutions in a pro-active attitude andin close collaboration with them.

4.7. Intellectual property rights

The work o the CESA IPR expert group in 2011 and2012 has ocused on shipbuilding knowledge leakageprevention. New projects carried out by GuardSHIP(the European Shipbuilding Intellectual Property Pro-tection Collective Management Organisation) include: joint patent monitoring, opposing non-patentable ap-plications, drating non-disclosure agreements and IPplanning or EU unded projects.

With the establishment o SEA Europe, the IPR groupas well as GuardSHIP welcome the participation o marine equipment representatives and will identiy additional points o interests and IP protection issuesto be worked on in the uture.

In the context o the IMO rule making process, CESAIPR group has been actively involved in developingthe Ship Construction File (SCF) Industry Standardtogether with the international shipbuilders and theSecrecy Agreement between yards and verifers underEnergy Efciency Design Index (EEDI).

CESA anticipates that the SCF requirement will be imposed on all ship types even though, at themoment, it covers only tankers and bulkers. Moreover, or repair yards in Europe, the current

SCF requirement will have an immediate eect. In order to better prepare ourselves beore SCF becomes mandatory to our ship types, CESA has initiated a brainstorm session on setting up aEuropean SCF archive system in April 2012. Preliminary investigation shows that technology isalready available and the cost is easible to set up a SCF archive system within Europe. CESAplans to initiate a pilot project by the end o 2012 to design our own SCF archive managed by GuardSHIP, calling or participation or the test period with ship types as diverse as possible. Yards may beneft rom such system as well when EEDI becomes mandatory.

Being involved in the bilateral trade discussions with China, CESA attended in June 2012 in Bei- jing the EU-China Shipbuilding Dialogue as well as the EU-China IP Dialogue in September 2012in Brussels. A pilot project on shipbuilding technology cooperation/transer is being assessedunder both rameworks.

GuardSHIP stand at SMM (Hamburg, September 2012)




8

2010 - 2011 Policy Background

The European marine equip-ment industry is a high valueadded sector. Competing ina global market, a leadingposition cannot be sus-tained on prices alone. Theindustry derives its competi-tiveness through innovativeand reliable high quality products and ongoing policy developments.

Politically, 2010 was a very important year or Europe. The Barroso II Commission was appointed and set outthe objectives, targets and

goals or the orthcoming Commission term and decade. The overarching Vision o the presentcollege o Commissioners can be ound in the Agenda 2020. The European marine equipmentmanuacturers should bear in mind the Agenda priorities and targets when developing or ad- vancing policy in the short to medium term:

Priorities:

•

Smart growth: developing an economy based on knowledge and innovation• Sustainable growth: promoting a more resource efcient, greener and more competitive

economy

• Inclusive growth: ostering high-employment economy delivering social and territorial cohe-sion

Headline targets:

• 3% o the EU’s GFP should be invested in R&D.

• The “20/20/20” climate/energy targets should be met (including an increase to 30% o emissions reductions i the conditions are right.

• 75% o the population aged 20-64 should be employed.

With this Agenda setting, the scene on several key policy and legislative initiatives took place or were advanced in 2011:

Integrated Maritime Policy

The European Commission is continuing the development o the Integrated Maritime Policy,as defned in the “Blue Book” o 2008. 2010 showed that there was renewed support or theIntegrated Maritime Policy. The European Commission put orward its proposal or continuedfnancial support to the EU’s Integrated Maritime Policy or the period between 2011 and 2013and a Communication has been published by the Council o the European Union. The proposal

5. Activities’ report o EMEC



39

is designed to enable the Commission, Member States and maritime stakeholders to keep upthe good work in avour o a sustainable use o oceans, seas and coasts.

The proposed budget or the implementation o the programme is 40 million EUR or the period2011 to 2013 in line with the Communication o the Council.

In October 2010, the EC set out concrete steps to enhance the eectiveness and cost efciency o surveilling European Seas by presenting a roadmap towards more efcient and cost-eectivemaritime surveillance.

The Commission spells out how to bring together relevant Member States’ authorities acrossall maritime sectors to allow or the exchange o maritime surveillance data, held by authori-ties such as coast guards, trafc monitoring, environmental monitoring, pollution prevention,fsheries, border control, tax and general law enorcement authorities, as well as navies. Thisincreased cooperation would also help cope more efciently with real time events at sea.2

The European Maritime Days in Gijón (2010) and Gdansk (2011) have provided stakeholders,policy makers and the public a perect platorm where pertinent issues related to the European

oceans and seas can be discussed. At both events, EMEC has made active contributions on the various panels and workshops which have been organised to coincide with the event. The Euro-pean Maritime Day is just one such example which has been adopted by the European Institu-tions to raise awareness and show the impact that maritime aairs have in our daily lives.

Transport Policy

In 2011, DG MOVE has launched its white paper titled “Roadmap to a single EuropeanTransport Area – Towards a Competitive and Resource Efcient Transport System” . This papertakes a global look at the developments in the transport sector, at its uture challenges and at thepolicy initiatives that need to be considered:

• Transport has to use less and cleaner energy and become more efcient• Promote multi modal solutions and relying on waterborne mode or long-haul

• Freight multimodality has to become economically viable or shippers

• Better sea, port and hinterland connections. Integration with inland waterways

• Promote a global level playing feld

• Enorce with the IMO high standards o saety, security, environmental protection and working conditions

• Improved technology, better uel and efcient operations

• CO2

emissions should be cut by 40% (i easible 50%) by 2050 compared to 2005

• Increased use o intelligent transport systems

•Promote innovation

• A single European Transport Area will be created. For maritime transport, a ‘Blue Belt’ in theseas around Europe shall simpliy the ormalities or ships travelling between EU ports and asuitable ramework must be established to take care o European tasks or inland waterway transport.

• Common maritime space

The European Commission is continuing its ongoing observation o the implementation o the3rd “Erika” Package, which includes Regulation (EC) 391/2009 and Directive 2009/15/EC. Thesaid Regulation is paving the way or a new approach or the defnition o standards, promotingharmonisation o class rules and o the interpretation o international conventions, leading to thegeneral application o mutual recognition o certifcates.

2) DG MARE, http://ec.europa.eu/maritimeaairs/press/press_rel211010_en.html

5 Activities’ reports o EMEC



0

Meanwhile, the European Commission is continuing the revision o the Directive 96/98/EC (theMarine Equipment Directive), the instrument governing the use o the wheelmark, with a viewto acilitating the ree movement o marine equipment and improving maritime saety: the Com-mission has asked the industry to provide its contribution on this piece o legislation in order toenhance its eectiveness3.

Research & Innovation Policy

The structure and development o Framework Programme 8 (FP8) has been under discussionand will be mapped out against the already existing landscape o EU policy and initiatives. It isimportant or the European marine equipment industry to take this landscape into account whenpositioning itsel within the new structure or Research and Innovation.

The European Commission has communicated that ‘Horizon 2020’ will be developed against thebackdrop o a number o signifcant political initiatives, namely: the Europe 2020 Strategy (March2010), the Innovation Union Communication (October 2010), a European Research Area (ERA)

Action Plan (2011) and an EC proposal or the next fnancial perspectives (2011).

A number o other initiatives also already underway will ‘uel’ the discussion o ‘Ho-rizon 2020’: The EC Communication onSimplifcation (April 2010), the FP7 InterimReport (November 2010) and the ongoingimplementation o activities related to theERA’s (2008).

It becomes clear that a number o recurringstrands appear which will be undamentalor the positioning o the maritime sector

within the uture developments o FP8:

• Reaching the Europe 2020 objectives o smart, sustainable and inclusive growth

• Viewing research and innovation askey driver to address the challenges o social prosperity and economicprogress

The content and structure o ‘Horizon 2020’has been urther developed and expandedin 2011.

3) http://europa.eu/rapid/pressReleasesAction.do?reerence=IP/10/1268&ormat=HTML&aged=0&language=EN&guiLanguage=



41

Climate Change and Environment Policy

As o 1 July 2010, new uel sulphur limits contained in the 2008 amendment o IMO MARPOL73/78 Annex VI entered into orce. As a consequence, the maximum permitted sulphur content

o uels used in SOx Emission Control Areas (SECAs) will be lowered to 1% by weight (rom theprevious 1.5%). The Baltic Sea, North Sea and English Channel have been designated as SECAsby the IMO.

In addition, EU law requires all ships at berth oranchorage in EU ports to use uels with a sulphurcontent o less than 0.1% by weight. This provisionentered into orce on 1 January 2010. However,some types o ships need to undergo an adapta-tion o their boilers in order to be able to use 0.1%sulphur uels saely and not all o these adaptations were completed beore the entry into orce o thenew requirements.

The Europe 2020 Strategy includes the commitmentto reduce greenhouse gas emissions by at least 20%compared to 1990 levels or by 30% i the conditionsare right.

In 2010, the European Union has been pursuing ac-tion in international ora, but negotiations at inter-national level, both UNFCCC and the IMO, have notresulted so ar in any agreement on a legally bindingmechanism that includes these emissions and re-duction commitments. Emissions rom international

shipping are currently outside any binding emissionreduction commitments.

In the event that no international agreement which includes international maritime emissionsin its reduction targets has been approved by the Community in 2011, the Commission shouldinclude international maritime emissions in the Community reduction commitment, with aim o the proposed act entering into orce by 2013.

I emissions rom international shipping are not included into international agreement’s reduc-tion commitments, harmonised action to reduce the GHG emissions rom the maritime sectorbased on trafc into and out o EU ports could be secured by adopting legislation at a Union levelthereby largely avoiding the risk o leakage while tackling the environmental issue.

It is against this backdrop that EMEC’s working groups carry out their policy activities,

developing the initiatives.




2

Climate Change and Environment

Green Marine Equipment

Today’s world trade would not be able to unction without ships. Considering the staggeringpercentages o world trade ows vessels carry (90%), it is remarkable to see that shipping isalready the most environmentally riendly mode o transport and that CO2 emissions rom shipsare small (3%).

Notwithstanding the signifcant improvements o ship hull design, leading to a decrease o emis-sions through ostered uel efciency, a large part o the improvements in the environmentalootprint o shipping is achieved through the contribution o the marine equipment industry.

The European marine equipment industry supports cooperation between its members, ship-owners and the shipyards throughout a ship’s ull lie cycle (i.e. “rom cradle to grave”), in orderto guarantee an efcient and competitive advantage or the shipping industry.

Green Ship Technology Book

Existing Technology by the Marine Equipment Industry: A Contribution to the Reduction o theEnvironmental Impact o Shipping.

The Green Ship Technology Book was produced by the EMEC Working Group or Climate Changeand Environment with the aim o showing what the industry could deliver in terms o technology to beneft the environmental impact o ships. The 2nd edition has been published.

The book aims at increasing awareness amongst the maritime community as well as thegeneral public, o the contribution that marine equipment can make to the greening o maritimetransport as well as saety and reliability. The publication applies the principle o technologicalneutrality and is designed in such a way that it is user-riendly or non-experts in the feld o maritime technology.

The Green Ship Technology Book can be viewed and downloaded rom EMEC’s dedicated ‘green’ webpage: www.emec.eu/green.

Greening the Industry

EMEC has been very active in 2011 in ocussing its eorts on raising the profle o sustainableshipping and has undertaken a number o activities aimed at ‘greening the industry’.

▪ EMEC 10 Green Principles

Promote sustainable development o maritime transport, minimising shipping’s impact onthe environment

Advocate a sustainable use o the oceans and seas, meeting the society’s needs whilstguaranteeing air access to all

Facilitate the deployment o all existing ‘green technology’ with the capacity o contributingto a saer and cleaner environment

Support investment in research, development and innovation with the aim o urtheradvancements o ‘green technologies’



43

Cooperate with policy makers in the defnition o legislative measures providing or standardson environmental protection

Implement saer, greener and innovative production processes, including corporate socialresponsibility schemes

Advocate or policies that reward industry’s eorts to meet environmental standards

Reward innovators and inventors by eectively saeguarding and enorcing their intellectualproperty rights

Engage in an open dialogue with civil society and NGOs to create awareness on the benefcialrole o green technologies.

Commit to implement the principles and keep on the horizon the idea o ‘environmentally conscious shipping’

▪ European Commission High Level Platorm on Greenhouse GasEmissions rom Ships

The European Commission has established a High Level Platorm on reducing Greenhouse GasEmissions rom ships to enable a high level strategic discussion directly with Vice President Kal-las (MOVE) and Commissioner Hedegaard (CLIMA). Three meetings have taken place in parallel with the ormal technical stakeholder consultation under the ECCP throughout 2011.

EMEC has been invited and represented at this high level platorm through its EMECnet mem-bers Wärtsilä and Rolls Royce on separate occasions.

Efcient ClassifcationBackground

At present, the European marine equipment industry allocates a very important share o its eco-nomic resources to multiple certifcations: given the lack o harmonised standards at Europeanlevel, certifcation or each component (even i complying with ISO standards) must be repeatedtoday or each classifcation society beore the same component can be installed onboard a ship.Needless to say, repeating the same tests in order to obtain certifcates rom more than one clas-sifcation society does not add any value in terms o saety and environmental protection. On thecontrary, it causes the dispersion o European know-how to the beneft o non-European indus-tries, rustrating Europe’s continuous eorts to deliver the most advanced and efcient solutions.

The Working Group on Efcient Classifcation is the oldest Working Group established by EMECin 2002. Ater a successul lobbying campaign, the Class Regulation (EC) 391/2009 was adoptedand published in May 2009.

Class Study

EMEC has undertaken an impact assessment on the implementation and the best practicesor the achievement o Article 10 rom the European marine equipment industry perspective.EMECs study provides inormation on the unctioning o class certifcation and on the practicesthat could serve as a model or the achievement o harmonisation and mutual recognition.




4

The study describes the current unctioning o the market or class certifcates, the activities car-ried out in order to achieve the harmonisation o class rules, and the practices o mutual recogni-tion o certifcates.

With regard to the frst issue, it emerges rom the study that class certifcation is a very impor-tant part o the shipbuilding process. In their capacity as classifcation societies, ROs occupy akey position in the supply chain o shipbuilding, reason being that they act as gatekeepers o the market: ROs determine whether new products can be placed on the market and set thespecifcations that have to be met. Likewise, they ascertain the conormity o marine equipmentto class rules and authorise their placement onboard a vessel. The importance o ROs’ role ormaritime saety is not being questioned. Nevertheless, the study reects suppliers’ demand orradical improvements in the way the said role is perormed. The main issue is that o multiplecertifcations: in order to be able to compete on a the global scale, (and to have access to the widest range o shipowners and shipyards), both LEs and SMEs are required to obtain, or thesame piece o equipment, a certifcate rom several ROs attesting the conormity with the samerequirements.

Since neither class rules are harmonised nor international law requirements interpreted consis-tently, multiple certifcation also implies the necessity or suppliers to comply with dierent sets

o rules. This means that they need to predict how the said rules will be concretely applied totheir situation.

The study confrms, in this respect, that Article 10 o Regulation 391/2009 meets a real need orclarifcation o the current ramework. Besides generating costs, the system in place leaves sup-pliers in a situation o uncertainty and has a negative impact on innovation by creating obstacles/ barriers to the introduction o new products on to the market.



45

Intellectual Property Rights

Sailing in a Sea o Knowledge: the Maritime Industry or enhan-ced protection o Intellectual Property Rights and know-how

The maritime industries’ community comprises o all the actors in the maritime world: shipping,ports, shipyards, marine equipment, oshore oil and gas, ship repair, scrapping, fshing, logisticsservices, reight handling, aquaculture, boatbuilding, research, classifcation, dredging, engineering,consulting, tourism, submarine, telecom, civil engineering, environment, security, saety renewableenergies and surveillance.

These maritime stakeholders are engaged in the constant development o new solutions to en-hance the efciency, saety and sustainability o maritime activities. They support the EU’s policy objectives in the feld o transport, environment and economic competitiveness. Bearing this inmind, it is generally regarded that the generation, the development and the protection o Europeanknowledge is a key actor or the EU to keep a leading role in the global market.

Investments in research, development and innovation are a key actor or the achievement o saer,cleaner and more efcient maritime activities. Only through these investments can the Europeanmaritime sector meet the challenges that it is acing in the contemporary era: handling increasedsea trafc, becoming increasingly energy efcient, limiting emissions, preserving the integrity o the

marine environment, maintaining the saety o humans involved in the operation o ships and ship-ping inrastructures, and reducing external costs society has to meet in connection with transport.

Against this background, it can be argued that the maritime community strongly believes that it isa shared task o the industry and o the EU to encourage, support and protect the developmento new technologies, particularly ensuring that piracy and countereiting do not undermine Euro-pean investments or a knowledge economy. The maritime community and EMEC, in particular, welcome and support all initiatives, whether public or private, aiming at:

• Defning new policy instruments to stimulate and acilitate investments aimed at generatingEuropean knowledge in the maritime feld




6

• Raising awareness on the importance o protecting European Intellectual Property Rights(IPRs) in the global market through the development o industry best practices

• Strengthening the protection o IPRs within and outside the EU borders through prevention o countereiting and enactment and enorcement o anti piracy law

•

Ensuring that recognition and protection o IPRs fnds an adequate and solid legal base in anever increasing number o third countries, particularly those where the EU industry has pro-duction bases

EMEC, through its working group or the protection o intellectual property rights calls, or the EU,national authorities, regulators and partners in the maritime community to enhance their coopera-tion with a view to achieving the goals outlined above.

It is time to join orces to protect the European Sea o Knowledge.

EMEC IPR Study

At the beginning o 2011, EMEC published its in-house study assessing the impact intellectualproperty rights inringement has on the marine equipment sector. The study came to some strikingconclusions: one among many is that the value o marine equipment produced in Asian countriesin violation o European patents and designs, or simply countereited, may vary between 7 and 10billion Euros.

The study and policy recommendations are available to view on the EMEC website: www.emec.eu

The Marine Equipment Directive (MED)

The Directive and its Purpose

Free movement o goods is a cornerstone o the single European market. The European Unionhas developed original and innovative instruments to remove the barriers to ree circulation o goods. The mechanisms in place to achieve this objective are based on prevention o new bar-riers to trade, mutual recognition and technical harmonisation. The Marine Equipment Directive(MED) is one o these mechanisms. The purpose o the directive is “… to enhance saety at seaand the prevention o marine pollution through the uniorm application o relevant internationalinstruments …” (MED Article 1).

The MED covers certain statutory equipment carried and used on ships registered under the ags

o the EU Member States (including Norway and Iceland) and which are required to meet certainIMO conventions. The Directive is currently still under revision and is likely to be published indue course.

EMEC is also a regular participant at the MarED meetings. These are meetings o theNotifed Bodies and take place twice a year. MarED provides a ramework or co-ordination andco-operation between its members, the Commission and observers in the application o the MED.



47

International Activities & Cooperation

The Working Group met several times in 2011 during trade exhibitions. The active memberso this group are the national marine equipment associations in Denmark, Finland, France,

Germany, the Netherlands, Norway, UK and Spain. Worldwide, the European marine equipmentindustry has over 30 pavilions at exhibitions each year, accounting or approximately 5 millionEuros in yearly expenses.

One o the aims o the Working Group is to have a clear ocus on markets and best events. Ex-change o views about recent shows and the expectations about upcoming shows take placeamong the members. Regarding the issue o competing events in strategic markets, membersexchange views about their preerences. Another important aim is the better use o synergiesbetween European participants at exhibitions. The group also makes an eort to exert inuenceat new events.

Maritime Industries Forum (MIF) – WG Rules Rights and Regulations

EMEC has been raising awareness o the problems relating to IPR within the maritime commu-nity at large. As coordinator o the MIF’s WG or Rules, Rights and Regulations, EMEC has pushedIPR to the top o the agenda and has developed a Joint Industry Statement in conjunction withother maritime stakeholders in 2011. It will also look to participate in the European Commis-sion’s observatory or countereiting and piracy.

The Rules Rights and Regulations have also published positions on maritime governance anddrated a set o Guiding Principles or public intervention in the maritime sector.

Maritime Governance

The MIF strongly supports maritime governance models based on the ull and impartial assess-ment o all the stakeholders’ positions. Only through these models, it shall be possible:

• to reach a balanced approach between the dierent legitimate interests at stake includingthose o the maritime industry

• to avour a ruitul exchange o inormation and knowledge on all the issues that need tobe solved in relation with the governance and sustainable use o the oceans and the seas.

Guiding Principles or Public Intervention in the MaritimeSector

• Principle o incompatibility : a general agreement exists that the EU Internal Market should work on the basis o undistorted competition. The use o EU or State resources constitute anexception and should take place only in the pursuit o general policy goals that cannot beachieved with the normal unctioning o the market, or in the light o exceptionally adverseeconomic circumstances

• Sustainability : public unds are scarce resources. Their sustainable use should be promo-ted. Priority should be given to Public programmes, whether or not entailing State aid, whichare likely to guarantee a return on the investments made or are designed to play a positive




8

eect on society as a whole. Purely economic considerations, related to the situation o oneor more individual undertakings, should not be considered as sufcient to require publicinterventions. Member States remain ree, within the limits o EU Law, to grant individual aidto one or more undertakings or merely economic reasons. However, these do not generally all within the policy that the MIF is trying to promote;

• Link with EU policies: Public programmes are not only tools to prevent or remedy marketailures. They can, and should, be used as instruments to pursue EU public policies. In themaritime sector, they should acilitate the achievement o the ollowing goals: environmen-tal protection, maritime saety, efciency o transport and provision o services o generaleconomic interest.

• Beneft or the general interest: Public programmes that can bring a clear advancementin the policies above should receive priority over those who only (or mainly) beneft therecipients.

• Coordination: market players operate today in a context that is radically dierent rom thato 50, 20 or even 10 years ago. Competition takes place at the global level and it is necessary that Europe provides a coordinated response to the pressure coming rom Asian markets.Hence, support programmes should no longer be conceived as national initiatives. On thecontrary, whenever possible, they should be coordinated and brought orward by a largenumber o Member States, across the continent.

Research and Innovation

EMEC, through its R&D working group EMECrid has been committed to European RDI and the work o the WATERBORNE Tech-nology Platorm. It has been closely

involved with the setting up o thepriorities or the 3rd Call o the ECResearch Framework Programme7 (FP7) and collating ideas or the5th and 6th Calls, always bearing inmind the WATERBORNE StrategicResearch Agenda. EMEC / EM-ECrid will continue to promote thepriorities o the shipbuilding sec-tor and ensure that the interests o the marine equipment sector willbe well represented.

Oshore Industries

Under the consideration that a lot o marine equipment suppliers are also equipment suppliersor the o-shore industry, EMEC has utilised the opportunity to gain and develop the representa-tion o the o-shore equipment industry in Brussels, at European level by creating a dedicatedWorking Group or Oshore in 2011.

Mr. Jerome De Roys has been appointed the acting Chairman o the Working Group until theinaugural meeting has been called.



49

Brussels political experience shows that innovative programmes and technologies require dedi-cated associations and unanimous political support in order to achieve critical mass and growthpotential.

Many emerging renewable technologies will be used in the oshore industry as it is currently happening with European unded projects and thus becoming an attractive choice or many companies.

The ull transition rom the traditional ossil energy sources to renewable energy sources willhappen during the next decade, and establishment o appropriate instruments inside EMEC ol-lowing the introduction o renewable energies and its impact in the marine equipment industry is one o the most signifcant challenges or our members and associations.

European Commission Public Consultations

Throughout 2011, the European Commission has launched a number o public consultations on

a range o issues which are o relevance to EMEC.

Framework or EU Research and Innovation Funding(Horizon 2020)

February – May 2011 The EU is strongly committed to unding research and innovation. The Europe 2020 strategy, en-dorsed by Member States, places investment in research and innovation at the heart o EU policy or smart, sustainable and inclusive growth. When EU heads o state and government discussedinnovation at their meeting on 4 February 2011, they called on the European Commission tobring together all o the EU’s research and innovation unding under a single common strategic

ramework.

In consequence, the European Commission launched a wide-ranging consultation involving allkey stakeholders which has led to Horizon 2020.

EMEC responded to the written questions and the answers can be ound on www.emec.eu.

Strategic Transport Technology Plan

March – May 2011 The Europe 2020 Strategy includes the “Resource efcient Europe” agship initiative, under which the European Commission will present proposals to modernise the transport sector and

thereby contributing to increasing competitiveness and lowering emissions.

This will involve transorming the transport system, promoting independence rom oil, creating amodern inrastructure and multimodal mobility assisted by smart management and inormationsystems.

The Commission intends to issue a Strategic Transport Technology Plan (STTP) to present thetechnology areas where it pays or those involved in transport to work together.

EMEC contributed to this consultation by answering the online questionnaire. The response tothe questionnaire and the results o the consultation can be ound on: http://ec.europa.eu/ transport/research/sttp/doc/report_sttp_public_consultation.pd




0

EMECnet

NEW EMECnet MEMBERS 2011

The EMEC Network o leading companies can welcome three new members in 2011:

• EATON

• Ala Laval

• Hamworthy Krystallon

EMECnet successully raises awareness among the leading companies in the marine equipmentindustries about the importance o lobbying in Europe. Having these additional members on-board as leading companies strengthens the overall network and add their weight behind theinuencing o policy development in Europe.

Eaton, Ala Laval and Hamworthy Krystallon join ten other leading marine equipment companies

within EMECnet: Becker Marine Systems, Caterpillar, Converteam, Germanischer Lloyd, Hatlapa,Kongsberg, Rockwell Automation, Rolls Royce, Sam Electronics and Wärtsilä.



51

SEA Europe Chairman, Lars Gørvell-Dahll (Let) and SEA Europe Secretary General, Douwe Cunningham (Right)

On 3 October 2012, SEA Europe organised its inaugural reception at the Bibliothèque Solvay inBrussels. The occasion was also a celebration o theanniversaries o CESA (75th ) and EMEC (21st ).

6. SEA Europe society

6 SEA Europe Society

In its Founding Assembly held inParis on 1 June 2012, 22 nationalassociations rom 18 countrieslaunched SEA Europe, Ships andMaritime Equipment Association.



2



53

Annexes

Annexes



4

Annex 1: Statistics 2011

S o u r c e

: C E S A

S o u r c e : C E S A




55 Annex 1



Source: CESA Source: CESA



6

SHIPBUILDING IN CESA COUNTRIES DURING 2011 IN GT

Orderbook Completions New orders

N° GT N° GT N° GT

BULGARIA 1 31.617 3 43.239 0 0

CROATIA 22 348.024 13 379.439 9 101.444

DENMARK 13 11.635 5 6.677 7 5.960

FINLAND 6 132.270 1 49.000 0 0

FRANCE 10 322.564 9 3.360 5 40.164

GERMANY 71 1.479.247 31 405.681 28 471.771

GREECE 0 0 0 0 0 0

ITALY 21 806.515 16 368.890 10 301.065

LITHUANIA 7 11.066 2 9.170 1 4.400

NETHERLANDS 131 424.983 119 296.883 85 158.915

NORWAY 69 267.860 37 166.623 39 120.953

POLAND 19 69.156 9 49.021 17 68.080

PORTUGAL 0 0 0 9.000 0 0

ROMANIA 38 628.777 25 605.529 18 38.558

SPAIN 39 139.564 44 161.079 7 7.341

UNITED KINGDOM 0 1.000 0 1.000 0 0

TOTAL 447 4.673.278 314 2.544.591 227 1.318.651

Source: CESA

SHIPBUILDING IN CESA COUNTRIES DURING 2011 IN CGT

Orderbook Completions New orders

N° CGT N° CGT N° CGT

BULGARIA 1 16.119 3 29.974 0 0

CROATIA 22 314.055 13 297.424 9 98.603

DENMARK 13 36.507 5 18.411 7 19.332

FINLAND 6 128.464 1 42.763 0 0

FRANCE 10 346.728 9 15.358 5 62.560

GERMANY 71 1.624.901 31 442.465 28 531.217

GREECE 0 0 0 0 0 0

ITALY 21 885.897 16 442.591 10 332.805

LITHUANIA 7 18.407 2 15.141 1 9.270

NETHERLANDS 131 662.868 119 470.738 85 302.394

NORWAY 69 535.753 37 289.008 39 255.905

POLAND 19 128.492 9 53.175 17 123.614

PORTUGAL 0 0 0 9.000 0 0

ROMANIA 38 412.267 25 330.936 18 84.537

SPAIN 39 234.949 44 266.377 7 21.847

UNITED KINGDOM 0 0 0 0 0 0

TOTAL 447 5.345.407 314 2.714.361 227 1.842.084

Source: CESA



57

CESA TOTALS - NEW ORDERS BY SHIPTYPE

N° GT % CGT %

Orders placed in 2011 227 1.318.651 100 1.842.084 100

O which or oreign account 0 0 0 0 0

Types o ships ordered in 2011

Crude Oil Tankers (double hull) 0 0 0 0 0

Product and Chemical Carriers 0 21.938 1,7 28.016 1,5

Bulk Carriers excl. Combined Carriers 1 30.092 2,3 15.641 0,8

Combined Carriers 17 81.810 6,2 95.924 5,2

General Cargo Ships 7 48.528 3,7 48.945 2,7

Reeers 0 0 0 0 0

Full Containers Ships 0 0 0 0 0

Ro-Ro Vessels 5 52.204 4 50.613 2,7

Car Carriers 0 0 0 0 0

LPG Carriers 0 0 0 0 0LNG Carriers 1 13.893 1,1 21.002 1,1

Ferries 8 32.240 2,4 55.030 3

Passenger Ships 20 663.439 50,3 742.780 40,3

Fishing Vessels 13 31.564 2,4 71.438 3,9

Oshore Supply Vessels (incl. AHTS) 41 135.978 10,3 277.820 15,1

Other Non-Cargo Vessels 112 206.965 15,7 434.875 23,6

Source: CESA

DIRECT WORKFORCE IN CESA COUNTRIES

COUNTRY **€€2007 2008 2009 2010 2011

Total Newbuildings* Total Newbuildings* Total Newbuildings* Total Newbuildings* Total Newbuildings*

BULGARIA 5.400 2.400 4.977 2.200 4.968 2.100 4.250 - 4.215 1.950

CROATIA 9.811 8.200 9.553 8.738 8.851 8.645 8.792 8.376 8.506 8.300

DENMARK 3.500 3.000 3.700 2.800 3.000 2.300 1.830 1.250 800 150

FINLAND 4.700 4.700 4.630 4.630 4.500 3.200 3.800 3.800 3.000 2.400

FRANCE 17.200 3.350 17.100 3.400 16.400 1.900 16.400 2.100 16.400 2.100

GERMANY 22.500 15.900 23.600 16.500 19.200 12.600 18.000 10.800 17.200 9.700

GREECE 2.434 400 2.324 - 2.487 - 2.319 - 2.139 -

ITALY 12.245 8.925 12.142 8.858 11.790 8.592 11.640 8.538 11.260 8.200

LITHUANIA 5.100 2.800 4.800 3.000 4.200 2.200 3.682 - 2.865 -

NETHERLANDS 14.272 11.635 14.400 12.260 13.500 11.600 13.219 10.889 12.200 8.350

NORWAY 6.000 5.500 5.000 4.700 5.000 4.600 5.000 4.600 4.500 4.300

POLAND 17.000 12.800 15.000 7.900 7.300 2.600 7.000 1.800 6.954 1.430

PORTUGAL 1.652 893 1.592 914 1.572 505 1.304 565 1.177 84

ROMANIA 10.800 10.700 10.100 9.350 8.160 7.820 8.075 7.790 9.850 9.050

SPAIN 7.678 2.129 6.490 2.995 5.666 2.291 6.180 2.146 5.473 1.436

UNITED KINGDOM 8.500 500 8.300 200 8.300 200 3.000 200 2.700 200

TOTAL 148.792 93.832 144.608 89.145 124.894 71.153 114.491 62.854 109.239 57.650

Source: CESA

Annex 1

* Newbuildings merchant vessels*€* Only member yards



8

CESA TOTALS - ORDERBOOK BY SHIPTYPE

N° GT % CGT %

Total tonnage on order book on 31.12.2011 447 4.673.278 100 5.345.407 100

O which or oreign account 264 3.817.114 81,7 4.144.480 77,5

Types o ships according to orderbook on 31.12.2011




Combined Carriers 23 102.306 2,2 134.341 2,5

General Cargo Ships 54 234.231 5 294.646 5,5

Reeers 0 0 0 0 0

Full Containerships 5 245.090 5,2 141.022 2,6

Ro-Ro Vessels 14 263.874 5,6 207.130 3,9


LPG Carriers 0 0 0 0 0

LNG Carriers 1 13.893 0,3 21.002 0,4

Ferries 19 164.774 3,5 210.685 3,9

Passenger Ships 44 2.207.880 47,2 2.430.732 45,5

Fishing Vessels 18 38.964 0,8 91.589 1,7

Oshore Supply Vessels (incl. AHTS) 103 406.861 8,7 730.868 13,7


Approximate value o order book

on 31.12.2011 in mEuro 23.639 100%

O which or oreign account in mEuro 17.865 76%

Source: CESA

CESA TOTALS - COMPLETIONS BY SHIPTYPE

N° GT % CGT %

Completed in 2011 314 2.544.591 100 2.714.361 100

O which or oreign account 198 1.790.234 70,4 1.713.366 63,1

Types o ships completed in 2011




Combined Carriers 11 50.118 2 64.020 2,4

General Cargo Ships 26 156.141 6,1 172.354 6,3

Reeers 0 0 0 0 0

Full Containers Ships 12 359.826 14,1 223.192 8,2

Ro-Ro Vessels 9 191.246 7,5 133.511 4,9


LPG Carriers 1 2.300 0,1 5.112 0,2

LNG Carriers 0 0 0 0 0

Ferries 19 157.107 6,2 177.287 6,5

Passenger Ships 23 565.532 22,2 690.384 25,4

Fishing Vessels 10 16.304 0,6 43.904 1,6

Oshore supply vessels (incl. AHTS) 49 212.135 8,3 376.955 13,9


Approximate value o completions

During 2011 in mEuro 11.410 100%

O which or oreign account in mEuro 6.393 56%

Source: CESA



59

2005 2006 2007 2008 2009 2010 2011

BULGARIA

N°CGT- Export Total value in mEuro- Export in mEuro - - -

629 157

64848

422 89222 892

3030

436 274

-109

-

329 974

-90

-

CROATIA

N°CGT- Export Total value in mEuro- Export in mEuro

21420 569381 545

460376

21489 184368 719

500464

23740 803466 733

547356

21400 811375 579

629582

14308 417203 632

559464

14277 709203 632

682565

13297 424203 632

824673

DENMARK


8327 964

-550*

-

8363 979

-522

-

8353 066

0700

0

10273 363

10600600

9201 876

0500

0

10204 667

N/A550N/A

518 411

-49

-

FINLAND


113 8006 900

6565

5294 190269 700

935935

5283 936315 400

1 1651 165

5291 113257 917

1 1451 015

3260 674260 674

1 1901 190

1188 868188 868

1 0001 000

142 76342 763

178178

FRANCE


1675 363

572270

-

14265 060

91 280900450

7192 31793 440

650450

11251 220237 367

1 0511 000

13175 635109 187

750650

9277 639253 777

1 4001 300

915 3589 238

7045

GERMANY

N°CGT- Export Total value in mEuro

- Export in mEuro

691 163 146

548 0122 581

1 390

701 174 241

707 0882 919

1 746

741 171 314

658 5623 126

1 796

841 311 904

776 6234 449

3 176

52945 383504 408

2 618

1 871

49974 548826 951

4 657

4 055

31442 465392 918

1 989

1 827

GREECE


1894

2 9824949

00000

00000

00000

24 0954 095

1111

00000

00000

ITALY


19398 676220 876

1 310939

21546 565

27 5001 7611 178

32806 203452 000

2 5661 629

20684 134463 490

2 3741 945

32628 455174 077

2 391905

35766 122516 868

2 9262 149

16442 591175 608

1 835703

LITHUANIA

N°CGT- Export Total value in mEuro- Export in mEuro - - -

316 90014 703

5447

216 377

-63

-

642 00042 000

129129

215 14115 141

6060

NETHER-

LANDS


100417 643172 080

1 150610

236850 637308 052

1 5741 061

2711 057 941

355 5612 1521 474

3781 567 8151 307 000

3 4002 900

176683 663

-1 786

-

41599 029328 429

2 0321 163

119470 738260 000

1 541862

NORWAY N°CGT- Export Total value in mEuro- Export in mEuro

47289 79849 537

991-

68424 56240 637

1 7640

1584 024

02 159

0

71572 865162 636

1 749490

61518 083159 277

2 932-

43409 791108 646

3 125843

37289 008

-2 361

-

POLAND N°CGT- Export Total value in mEuro- Export in mEuro

30565 973565 973

751751

24494 601494 601

765765

30530 279396 514

584424

20330 296328 608

511505

25241 889241 889

432432

2287 15587 155

170170

953 17553 175

142142

PORTUGAL


434 78121 010

6933

421 18414 504

63-

323 254

0900

217 09817 098

4141

328 98318 212

9044

19 000

N/A9

N/A

00000

ROMANIA

N°

CGT- Export Total value in mEuro- Export in mEuro

18

246 915-331

-

71

574 456447 704580461

27

262 475312 883410300

28

346 979346 979550550

31

364 923364 923482482

23

260 334256 936397392

25

330 936330 936531531

SPAIN


52177 51657 782

444230

47226 49364 549

665286

64347 753191 313

1 050770

64347 513194 852

1 022602

50287 167216 687

1 8251 441

55357 683175 160

2 1571 681

44266 377229 955

1 7401 372

UNITEDKINGDOM


---

20-

23 701

-20

-

23 906

0140

34 100

0130

22 076

-9-

65 000

N/A23

N/A

00000

CESA TOTAL


3864 094 0142 252 006

9 0414 443

5915 608 3893 153 302

12 9686 204

5615 449 4363 650 241

15 2138 364

7266 445 2684 756 215

17 63613 453

4814 478 1802 261 061

15 6698 650

4194 486 8282 944 258

19 36613 148

3142 714 3611 713 366

11 410

CESA COMPLETIONS 2005 - 2011

Annex 1

* Turnover estimated by CESA



0

Type Coe.Order Book Completions New orders

No. CGT No. CGT No. CGT

Product Carriers

Under 4,000 dwt 2,3 0 0 1 1.656 0 0

4 - 10,000 dwt 1,6 0 0 0 0 0 0

10 - 30,000 dwt 1,05 0 0 1 12.376 0 0

30 - 50,000 dwt 0,8 0 0 1 18.506 0 0

50 - 80,000 dwt 0,6 0 0 1 19.032 0 0

80,000 dwt and over 0,55 0 0 0 0 0 0

Chemical Carriers

Under 4,000 dwt 2,3 0 0 0 0 0 0

4 - 10,000 dwt 1,6 2 16.228 2 10.746 0 0

10 - 30,000 dwt 1,05 4 56.032 2 27.518 19 28.016

30 - 50,000 dwt 0,8 5 113.334 1 23.232 0 0

50 - 80,000 dwt 0,6 1 24.361 3 73.367 0 0

80,000 dwt and over 0,55 0 0 0 0 0 0

Bulk Carriers (exl. Combined Carriers)

Under 4,000 dwt 1,6 0 0 0 0 0 0

4 - 10,000 dwt 1,1 0 0 0 0 0 0

10 - 30,000 dwt 0,7 0 0 1 7.091 0 0

30 - 50,000 dwt 0,6 0 0 0 0 0 0

50 - 80,000 dwt 0,5 4 62.333 1 15.641 1 15.641

80 - 160,000 dwt 0,4 4 78.388 3 94.247 0 0

160,000 dwt and over 0,3 1 31.416 0 0 0 0

Combined Carriers

Under 10,000 dwt 1,1 5 21.460 2 8.532 0 0

10 - 30,000 dwt 0,9 0 9.271 3 23.722 16 87.914

30 - 50,000 dwt 0,75 15 98.756 4 26.912 1 8.010

50 - 80,000 dwt 0,6 0 0 0 0 0 0

80 - 160,000 dwt 0,5 0 0 0 0 0 0

160,000 dwt and over 0,4 0 0 0 0 0 0

General Cargo Ships

Under 4,000 dwt 1,85 26 94.511 8 32.522 4 13.482

4 - 10,000 dwt 1,35 4 39.456 16 103.244 1 10.047

10 - 20,000 dwt 1 24 160.679 1 12.816 2 25.416

20 - 30,000 dwt 0,85 0 0 0 0 0 0

30 - 50,000 dwt 0,7 0 0 0 0 0 0

50 - 80,000 dwt 0,75 0 0 0 0 0 0

80 - 160,000 dwt 0 0 0 0 0 0 0

160,000 dwt and over 0 0 0 0 0 0 0

Full Container Ships and High Speed Liners

Under 4,000 dwt 1,85 0 0 2 7.049 0 0

4 - 10,000 dwt 1,2 1 6.404 4 27.917 0 0

10 - 20,000 dwt 0,9 0 0 0 0 0 0

20 - 30,000 dwt 0,8 0 0 0 0 0 0

30 - 50,000 dwt 0,75 0 0 2 39.702 0 0

50 - 80,000 dwt 0,65 4 134.618 4 148.524 0 0

160,000 dwt and over 0 0 0 0 0 0 0

SPECIFICATION IN COMPENSATED TONNAGE OF TYPES OF SHIPS

- o order book at end o DECEMBER 2011- completed during JANUARY - DECEMBER 2011- ordered during JANUARY - DECEMBER 2011



61

Ro-Ro Vessels

Under 4,000 dwt 1,5 3 13.411 3 3.846 2 12.326

4 - 10,000 dwt 1,05 10 174.000 1 15.835 2 18.568

10 - 20,000 dwt 0,8 1 19.719 3 57.453 1 19.719

20 - 30,000 dwt 0,7 0 0 2 56.377 0 0

30,000 dwt and over 0,65 0 0 0 0 0 0

LNG Carriers

Under 4,000 dwt 1,25 0 0 1 5.112 0 0

4 - 10,000 dwt 1,15 1 21.002 0 0 1 21.002

10 - 20,000 dwt 1 0 0 0 0 0 0

20 - 30,000 dwt 0,75 0 0 0 0 0 0

30 - 50,000 dwt 0 0 0 0 0 0 0

50,000 dwt and over 0 0 0 0 0 0 0

Ferries

Under 1,000 gt 3 5 2.630 18 25.752 1.290 6.922

1 - 3,000 gt 2,25 6 41.791 1 6.162 2 7.700

3 - 10,000 gt 1,65 1 9.696 0 0 1 9.696

10 - 20,000 gt 1,15 1 19.289 1 38.135 0 0

20,000 gt -40,000 gt 0,9 2 53.790 2 30.011 0 0

40,000 gt and over 0 1 42.763 1 42.763 0 0

Passenger Vessels

Under 1,000 gt 6 2 7.477 6 13.882 6 12.706

1 - 3,000 gt 4 15 120.512 12 65.775 705 42.519

3 - 10,000 gt 3 6 100.809 1 19.856 3 40.221

10 - 20,000 gt 2 1 24.540 0 0 1 24.540

20 - 40,000 gt 1,6 6 353.238 1 51.127 5 294.365

40 - 60,000 gt 1,4 1 47.610 0 0 0 0

60,000 gt -100,000 gt 1,25 3 256.933 2 189.980 1 0

100,000 gt and over 0 23 3.150.818 3 365.476 4 567.868

Fishing Vessels

Under 1,000 gt 4 12 11.592 6 5.796 192 10.626

1 - 3,000 gt 3 1 5.298 3.000 3 1 5.299

3,000 gt and over 2 0 1 2.800 0 0 0

Oshore Supply Vessels (incl. AHTS)

Under 1,000 gt 268 52.872 18 37.593 1.040 3.780

1 - 3,000 gt 10 53.655 6 26.829 5 33.831

3 - 10,000 gt 12 106.160 10 94.648 3 25.680

10,000 gt and over 6 113.236 0 0 0 0

Other Non Cargo Vessels

Under 1,000 gt 5 271 123.635 123 137.736 71 105.084

1 - 3,000 gt 3,2 22 112.033 38 152.681 408 72.722

3 - 10,000 gt 2 28 238.442 4 50.174 9 111.381

10,000 gt and over 1,5 8 119.049 3 58.742 4 65.716

Total 826 6.343.248 6.129 2.286.096 3.801 1.700.797

Source: CESA

Annex 1



2

Port of Antwerp

Havenhuis

Entreportkaai 12000 Antwerpen www.portoantwerp.com

Bulgarian National Association of Shipbuilding and Shiprepair

8, Drazki Str.9000 VarnaBulgaria www.bulnas.org

Association of Croatian Marine Equipment Manufacturers

Croatian Chamber o Commerce

Draskoviceva 45/IV1000 ZagrebCroatia www.hgk.hr

Hrvatska Brodogradnja – Jadranbrod d.d.

(Croatian Shipbuilding Corporation)Avenija V. Holjevca, 2010020 ZagrebCroatia www.hb.hr

Danish Maritime

Amaliegade, 33B, 41256 Copenhagen K.Denmark www.danishmaritime.org

Finnish Marine Industries

Eteläranta, 1000131 HelsinkiFinland www.marineindustries.f

Groupement des Industries de Construction et Activités Navales

67, rue de Monceau75008 ParisFrance www.gican.asso.r

Verband Deutscher Maschinen- und Anlagenbau e.V.

Weidestrasse 13422083 HamburgGermany www.vdma.org

Annex 2 – SEA Europe Members



63

Verband für Schiffbau und Meerestechnik e. V.

Steinhöt, 11 (Slomanhaus)

20459 HamburgGermany www.vsm.de

Association of Hellenic Shipbuilding and Shiprepairing Industries

Akti Miaouli, 67185 37 PireausGreece

Associazione Nazionale dell’ industria Navalmeccanica

Via Tevere, 1/a00198 Rome

Italy www.assonave.it

Association of Lithuanian Shipbuilders and Shiprepairers

Pilies Str.4LT 91240 KlaipėdaLithuania www.llsra.lt

Scheepsbouw Nederland

Willemswer Boompjes 40

3011 XB RotterdamPO BOX 235413001 KM Rotterdam The Netherlands www.scheepsbouwnederland.nl

Norsk Industri

Oscars gate, 20PO box 7072 Majorstuen0306 OsloNorway www.norskindustri.no

Forum Okr ętowe

ul. Uphagena, 2380-237 Gdaėsk Poland www.orumokretowe.org.pl

Associação das Indústrias Navais

Rua Jorge Alonso, 31- 6º1600-126 LisboaPortugal www.ain.pt



4

Asociatia Nationala a Constructorilor de Nave din Romania

132, Moruzzi Street800223 GalatiRomania www.anconav.ro

AEDIMAR

Cluster o the Galician Naval SectorEdifcio Feuga, Rua Lope Gomez de Marzoa s/n15705 Santiago de CompostelaSpain www.aclunaga.es

The Basque Maritime Forum FORO Maritimo Vasco

c/Buesnoas Aires 2 - 1 Isqdo48001 BilbaoSpain

www.oromaritimovasco.com

Unión Española de Constructores Navales

Cardenal Herrera Oria, 57; 228034 MadridSpain www.uninave.es

Turkish Association of Ship Industrialists

Evliya Celebi Mah., Rau Orbay Cad., Hayat Sokak Göl Evleri, E Blok, D.234944 Istanbul

Turkey www.gesad.org.tr

Shipbuilders and Shiprepairers Association

Pallion YardSunderland SR4 6LLUnited Kingdom www.ssa.org.uk

Society of Maritime Industries

28-29 Threadneedle StreetEC2R 8AY London

United Kingdom www.maritimeindustries.org



65

Chairman:

Lars Gørvell-Dahll, Senior Vice-President o Kongsberg Gruppen ASA

Vice-Chairmen

• Bernard Meyer, Managing Partner o Meyer Wert, Germany • Govert Hamers, President and CEO o IHC Merwede, the Netherlands• Willy Salamon, President and CEO o Arno Dunkerque, France• Dirk Lehmann, Managing Director Becker Marine Systems, Germany • Kjeld Dittmann, Managing Director Lyngsø Marine A/S, Denmark • Santiago Crespo, Managing Director Marine Business Unit Ingeteam S.A., Spain

Honorary Chairmen

• Corrado Antonini, Honorary CESA Chairman• Hans Homann, Honorary EMEC Chairman

Secretariat

• Douwe Cunningham, Secretary General• Luciano Manzon, Senior Technical Adviser• Lanranco Benedetti, Technical Director• Jing Shen, Policy Adviser•

Sarai Blanc del Val, Policy Adviser• Véronique Verhoeven, Financial Ofcer• Delphine Fagot, Ofce Manager

Annex 3 – SEA Europe organisation

Annex 3 - SEA Europe organisation



6

Page 3 Meyer Wert and Kongsberg Gruppen AS

Page 16 Brodotrogir Shipyard

Page 29 Fincantieri

Page 30 Rolls Royce

Page 31 Kongsberg Gruppen AS

Page 32 SMRC Group

Page 33 SMRC Group

Page 35 BAE Systems

Page 38 Danish Maritime

Page 40 STX Finland

Page 41 STX France

Page 44 Rolls Royce

Page 45 Rolls Royce

Page 48 Kongsberg Gruppen AS

Page 51 GICAN

*Image/photo courtesy o all above mentioned companies

Annex 4 – Picture Reerence*



© 2013 by SEA Europe

Rue Marie de Bourgogne 52B-1000 Brussels, Belgium



Rue Marie de Bourgogne 521000 Brussels - Belgium

tel. +32 2 230 27 91ax +32 2 230 43 32

[email protected]

www.seaeurope.eu

Documents

CESA_Final Version 2011-2012