1. General 1.1. Shipbuilding 1.1.1 Developments in the shipbuilding industry 1) According to the World Shipbuilding Statistics compiled by IHS Fairplay (former Lloyd s Register), Japan s new shipbuilding orders remained stable throughout the four quarters of 2015, marking 20.58 million GT in 2015. This was up 6.6 percent from 19.31 million GT recorded in 2014. In the first quarter of 2015, Japan received more new orders than any other country with 6.21 million GT, exceeding those of South Korea (4.16 million GT) and China (4.79 million GT). In December 2014, we saw the yen s foreign exchange rate against the US dollar above the 120 yen mark for the first time in seven years. After this, the yen hovered around the 120 yen mark, and marked the average rate of 121.0 yen against the dollar in 2015. Other major developments in the shipbuilding sector included the Panama Canal s announcement of its new toll structure in April, the Philippine s ferry disaster in July, the opening of the new Suez Canal in August, major South Korean shipbuilders financial losses caused by their involvement in marine plant projects reported in September and Japanese fifth largest shipbuilder filing for corporate rehabilitation in the same month. 1.1.2 Developments about ship orders and completions 1) The World Shipbuilding Statistics noted that the world new orders from January through December of 2015 reached 76.57 million GT, down 6.2 per cent from the previous year. On a country share basis, China topped the rank with 33.0 per cent, followed by South Korea (30.9 per cent), Japan (26.9 per cent), CESA members in Europe (4.4 per cent) and others (4.8 per cent). In comparison to the previous year, China saw a 19.4 per cent GT reduction, with South Korea s GT down 3.9 per cent and Japan s GT up 6.5 per cent. The world completions were 67.412 million GT in 2015, up 4.3% from 2014. By country, China grabbed the top spot with 37.3 per cent of the global GT, followed by South Korea (34.4 per cent), Japan (19.3 per cent), CESA members in Europe (2.3 per cent) and others (6.8 per cent). In terms of completions, China s GT shot up 10.7 per cent from the previous year while South Korea saw a 2.6 per cent GT increase and Japan s GT dropped by 3.1 per cent. 1.1.3 Developments about global regulations 2) In 2015, the International Maritime Organization (IMO) hosted the 68th Marine Environment Protection Committee (MEPC68) meeting in May and the 95th Marine Safety Committee (MSC95) meeting in June. Concerning GHG and air pollution issues, MEPC68 member states adopted a proposal to introduce strengthened safety standards for the interim guidelines that determine minimum propulsion power to maintain the maneuverability of ships in adverse conditions applicable during the Energy Efficient Design Index (EEDI) implementation. They also made good progress in discussing concrete details of which vessels (those of 5000 GT and above engaged in international navigation) should be subjected to the fuel consumption data collection system, which is currently under consideration. On the subject of the International Convention for the Control and Management of Ships Ballast and Sediments, member states agreed that they will work to ensure that future guideline amendments will not disadvantage ship owners who earlier had their ships installed with ballast water treatment facilities. 1
Separately, the MEPC adopted the environmental requirements of the International Code for ships operating in polar waters, which are expected to come into force together with the safety part of the Code on 1 January 2017. At the MSC95, member states adopted a mandatory safety code for ships using gas as fuel (IGF Code) and reviewed performance standards for polar operation. They also requested that the International Association of Classification Societies (IACS) keep MSC member states informed on any developments about a possible review of specific rule requirements of classification societies as a way to guarantee the safety of large scale containers. 1.1.4 Industry topics This section outlines new developments taking place in the shipbuilding and marine shipping sectors from January through December of 2015 based on press releases issued by major players in these industries. 1.1.4.1 Japan Marine United (JMU) Corporation 3) -Delivering the 1000 ton class patrol ships Tarama and Ikema Japan Marine United Corporation delivered the 1,000 ton class patrol ships Tarama (PL85) and Ikema (PL86) to the Japan Coast Guard in 2015. The two vessels, constructed at the company s Isogo Works, Yokohama Office (Yokohama, Kanagawa Prefecture), are the first and second of the six Kunigami patrol ships, whose construction costs were included in the FY 2012 supplementary budget. The ships were named after isolated islands within the Okinawa Prefecture where the 11th Regional Coast Guard Headquarters are located. Fig.1 Tarama (Upper) and Ikema (Lower) -Delivering an ocean-going vessel to Tuvalu 2
The shipbuilder also delivered the 1,337 GT ocean-going vessel NIVAGA III to Tuvalu. The vessel, ordered by Tuvalu, was built at its Tsurumi Works, Yokohama Office (Yokohama, Kanagawa Prefecture), as one of the Japanese Government s ODA projects called the project to build charter ships carrying both freight and passengers. The vessel has replaced the NIVAGA II. The name NIVAGA is very familiar to people in Tuvalu as it means the sea god in Tuvalu language. Fig.2 NIVAGA III -Delivery ceremony for the helicopter destroyer Izumo Japan Marine United Corporation held a delivery ceremony for the helicopter destroyer Izumo at its Isogo Works, Yokohama Office in 2015. The construction was funded through the FY 2010 budget for the Defense Ministry. Being the advanced model of the destroyers Hyuga and Ise, the Izumo can function as a hub for operating aircraft as well as an offshore transport base in international peace cooperation activities. It is the first of Japan s through-deck helicopter destroyers with the displacement standard of 19,500 tons, and it is also the Maritime Self Defense Force s largest ever destroyer, surpassing the displacement standard of the Hyuga and Ise (both 13,500 tons). The Izumo also has landing spots for five helicopters. Fig.3 helicopter destroyer Izumo -Christening and launching ceremony for helicopter destroyer The company organized a christening and launching ceremony for the second ship of the Izumo model Kaga at its Isogo Works, Yokohama Office. Kaga is the name of an old province once located in the Nanbu region, Ishikawa Prefecture. The ship is expected to be completed and delivered in March 2017. -Receiving an order to build large ferries with a high efficiency hybrid CRP (Contra-Rotating Propeller) propulsion system Japan Marine United Corporation received an order from Ferry Sunflower (Oita City, Oita Prefecture) to build two large ferries. The construction is scheduled to be completed at the Isogo Works, Yokohama 3
Office, in 2018. After completion, the ferries will be put into a regular sea route connecting the Osaka Minami Port (Osaka Prefecture) and the Shibushi Port (Kagoshima Prefecture). The ferries feature high quality environmental characteristics, including a contra-rotating propeller (CRP) system, several energy-saving devices and optimized ship design. They also adopt a hybrid propulsion system consisting of the main engine and an electric motor, making it possible to change operational priorities between propulsion efficiency and maneuverability depending on where the ship operates. 1.1.4.2 Kawasaki Heavy Industries 4) Receiving an order for two 177,000m 3 LNG carriers Kawasaki Heavy Industries (KHI) has received an order for an LNG carrier for Trans Pacific Shipping7 Limited, a 50-50 joint venture by Chubu Electric Power Company (CEPC) and Nippon Yusen Kabushiki Kaisha (LYK Line). It was also asked to build an LNG carrier by Trans Pacific Shipping8 Limited, which is equally owned by CEPC and Mitsui O.S.K. Lines. Deliveries of the two ships are expected in 2018 after construction at KHI s Sakaide Shipyard. These vessels are being developed to be used for shale gas projects in North America, and they will transport LNG that CEPC procures from Freeport. The vessels will be able to pass through the new Panama Canal scheduled to be completed in 2016. Their optimized hull structures make their bodies lighter, and twin-screw systems and their optimal hull designs culminate in maximum propulsion performance. The adoption of a dual fuel diesel (DFD) electric propulsion system will enable high fuel efficiency in waters with various speeding requirements. 1.1.4.3 Mitsubishi Heavy Industries 5) Receiving an order for two next-generation LNG carriers Mitsubishi Heavy Industries (MHI) received an order in 2015 from Mitsui & Co. to produce two next-generation LNG carriers. The carriers will have an efficient hull structure and a hybrid propulsion system and adopt a significantly improved hull design with an expanded LNG handling capacity and better fuel economy. They will be constructed at MHI s Nagasaki Shipyard and Machinery Works, and are scheduled for completion and delivery in 2018 or 2019. For MHI, the order represents its first construction of carriers used for transport of shale gas produced in North America. The company received the order through MI LNG Company, Limited, a joint venture with Imabari Shipbuilding Co., Ltd. Mitsui & Co. plans to use the carriers for the Cameron LNG project in the United States. The carriers will have four apple-shaped tanks with their upper half having rounder bodies developed from reputable spherical MOSS types. Their tanks have a holding capacity of 177,000 m 3, and the size of the carriers will enable them to pass through the new Panama Canal where travel by ships is expected to become possible from early 2016. The carriers feature a STaGE (steam turbine and gas engines) hybrid propulsion system. This system is made up of the Ultra Steam Turbine Plant (UST), which is MHI s original high efficiency reheating steam type marine turbine, a gas and oil dual-fuel diesel engine and an electric propulsion system. By effectively utilizing waste heat from the engine for the UST, the carrier can achieve a significant improvement in plant efficiency and conduct high-efficiency navigation at wide-ranging speeds. Receiving an order for two Sayaringo STaGE next-generation LNG carriers MHI will build two Sayaringo STaGE next-generation LNG carriers for Nippon Yusen Kabushiki Kaisha (LYK Line) at its Nagasaki Shipyard and Machinery Works. The carriers will be the latest model of LNG carriers with an expanded LNG carrying capacity and improved fuel efficiency resulting 4
from their highly efficient hull structure and hybrid propulsion system. They are expected to be completed and delivered in 2018. The carriers will be used to transport LNG that Mitsubishi Corporation procures from the Cameron LNG project in the United States. Fig.4 Sayaringo STaGE next-generation LNG carriers (Written by Shigeyuki Shibata) References 1) The Shipbuilders Association of Japan (SAC) News Vol. 208 and 209 2) Ministry of Land, Infrastructure and Transport Press Release http://www.mlit.go.jp/ 3) Japan Marine United Corporation Press Release http://www.jmuc.co.jp/press/ 4) Kawasaki Heavy Industries Press Release http://www.khi.co.jp/pressrelease/ 5) Mitsubishi Heavy Industries News Release http://www.mhi.co.jp/news/ 5