Developing the Shipping Ecosystem Ship Repair and Dry Docks. R.V.Vimal Head Offshore & Commercial Chowgule Lavgan Yard.
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1 Developing the Shipping Ecosystem Ship Repair and Dry Docks R.V.Vimal Head Offshore & Commercial Chowgule Lavgan Yard.
2 History Evolution Current Scenario Practices Innovation Challenges
3 History Not long back history. 80 s 90 s shipyards are demographically distributed by the broad product range. Japan Gas carriers / Chemical carriers. Koreans Container Carriers / Complex Custom Build FPSO s /FSU /FSRU China Tankers / Bulkers. Caribbean / Canada Cruise Liners. Australasia Yachts / Ferries. Singapore Rigs / FPSO Conversions. It doesn t mean that the shipyards in Korea will not build tankers or shipyards in Singapore doesn t build bulkers, some shipyards in those countries tried but the demographical distribution based on product prevailed. The entire support structure / system to execute the product range were locally developed in those country. So they were very successful and sustained in their business.
4 Evolution During the evolution Core Focused yards started integrating non-core business, which resulted in Integrated shipyards with Ship Repair, Ship Building, Rig Repairs, Rig Building and EPCI projects. Successful integrated yards around the world has developed different hard and soft infrastructure to carry out the respective business. Defence ships have very specific requirement and those were catered by govt yards or nominated private yards, the skill set requirement and the timeframe for these projects are different from those of commercial ships. These yards have to develop support system & separate skill set which suits the defence requirements Same applies for Oil & Gas.
5 Current Scenario The commercial shipping industry is in a prolonged downturn due to weak economic activity (mainly in China) and low oil prices. This has led to high competition among shipyards, leading to lower margins and even losses in some cases. The global ship building industry is dominated by Asian shipyards in South Korea, Japan, and China due to their sheer size, government subsidies, and low interest costs to manage working capital.
6 Practices Indian Shipyards basically are not focussed same as that of shipyards in other successful maritime nations like Singapore and Norway. From 80 s almost all major yards PSU / Private were attempting to enter in to rig building PSU in collaboration and private player s standalone but no one succeeded or continued and mastered the art of rig building. This applies for Tanker & Bulker buildings too. Product / services specific shipyards will be able to deliver better results with core focus on to particular vertical Defence, offshore vessels / liners / Dredgers. Ports should direct ship repairs to shipyards rather allowing ship-owners to carry out major repairs at anchorages. ( * Regulated ). Shipyards with huge infra investments is forced to compete with smaller ship repair units which hires port DD and carry out repairs. Government should set up national level institute to certify certain skill sets which are required for shipyards. For example Singapore government has its own certification body (ASMI) which certifies SRM / HSE / Lifting / Scaffolding.
7 Practices L1 is not the game where for a particular project private and govt shipyards wage a price war. Private Shipyards are not getting quality and quantity projects as majour projects are nominated to PSU / Govt yards. Centralised tariff is practiced in SE Asian shipyards to maintain min threshold level which will result in shipyards undercutting on prices with each other. Early 90 s Shipyards from Singapore / Malaysia / Vietnam / Thailand & Indonesia sat down and drafted an min support price, shipyards did not go below the thresh hold level which resulted in survival of all shipyards in SE Asia and certain shipyards by increasing their safety, quality and delivery standards stood out and charged a premium for the product / services depending on the yard and its reputation.
8 Innovation Shipyards existing to be equipped to take on complex modern vessels for repairs and new builds. Shipyards should develop the infrastructure and skillset to meet the huge expectations by the technology driven world and be ready for the future. Future ready yards. Technology is revolving faster than the world and taking huge leap and strides. For example yards are in the process of Research and development to carry out 3D printing of spares, Drones are already been used for close up inspection of hull / cargo holds and tanks which will avoid huge time & cost. Unmanned or min manned vsls will be the future of the shipping. Indian shipyards should not lose the edge of getting into these technologies. Battery Powered / Solar Powered / Unmanned DP vessel trials are in progress in various parts of the world. Innovation is the need of the hour for Indian shipyards for sustainability.
9 Challenges Meeting the Manpower Challenge. Developing a Quality Work-Force Working Smarter & Safer. Regulatory ( Customs Dept takes days to clear off imported goods/ Immigration facility not available in all ports ) GST ( Ship repairs - 18% as against nil in Sri Lanka and ME ) Huge Cost of Loans - Capex ( 9% against 4% ) & Opex ( 12% against 6% in Korea, 4% in China & lesser in Japan ) Lack of Funds - South Korea, China and Japan have pursued a mix of fiscal and nonfiscal incentives for encouraging growth and development of their shipbuilding & repair industry. ( AIIB / ADB / WB can come into play via media some mode of funding )
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