CASE STUDY- CROATIA Page 1
Table of Contents 1. REVIEW OF NAUTICAL SECTOR IN CROATIA... 3 1.1 ECONOMIC FRAMEWORK OF THE NAUTICAL SECTOR IN THE ZADAR COUNTY... 3 1.2 CURRENT SITUATION IN THE NAUTICAL SECTOR OF CROATIA... 4 1.3 PRECONDITIONS AND DEVELOPMENT POTENTIAL OF THE NAUTICAL SECTOR IN THE ZADAR COUNTY... 5 2. REVIEW OF THE EDUCATION AND VET CAPACITY OF CROATIA IN THE MARITIME SECTOR... 5 2.1 SECONDARY EDUCATION... 5 2.2 HIGHER EDUCATION... 9 3. REVIEW OF SME s TRAINING CAPACITY IN THE NAUTICAL SECTOR OF ZADAR COUNTY... 11 Page 2
1. REVIEW OF NAUTICAL SECTOR IN CROATIA In Croatian ship building is present since the mid of 19ᵗʰ century. It has experienced the great economic progress after the World War II. At that time, the focus was set on making big ships and all the shipyards were state owned, while small boat building was a private business. That is the reason why small boat building was less developed at time. With the opening and development of the market in the 90's, small boat builders have slowly begun to develop, so the number of them started increasing. A small boat building recorded notable economic success until 2008, after which Croatian government adopted a special tax on new boats and vessels in order to fill the state budget due to the economic crisis that occurred and whose consequences are still present. This is substantiated by the data that in 2009 on the territory of whole Croatia 352 small shipyards were registered, while in 2015 only 50 of them were still active and working. Small shipyards that were able to survive the economic crisis are now oriented toward foreign customers who appreciate good, quality product and they have expanded the scope of their business. That means they are not only in boat building business, but they also offer the maintenance services, etc. Another indicator of small boat buildings success is the number of employees who worked in that sector before crisis in 2008 at that time, 1.700 people were working in the sector of the small boat building, while today there are only around 300 people employed. Unfortunately, nowadays it is common that one employee in the company is responsible for few different jobs because there is not enough financial resources for additional workers. 1.1 ECONOMIC FRAMEWORK OF THE NAUTICAL SECTOR IN THE ZADAR COUNTY The main characteristics of small boat building (in comparison to the large ship building) are less employees, the purpose of the boat, using different materials and technologies in the production, the use of various technological know-how, high competition and low profitability. For newly opened small shipyards the expected return of investment is not expected until the fifth year of operation. It is interesting to note that in the Zadar County uptrend of establishing new companies in the sector of small boat building is present after the so-called crisis year. Approximately 66% of currently active small shipyards were established after 2008, while only Page 3
12% were active in the most successful period until 2000. The reason of their survival, emerges from offering different services, not only the production of boats. Many of these companies are even engaged in tourist business during the tourist season in order to subsist on the market and have greater financial stability, so they could invest more in the further development and production. There are 45 companies in the Zadar County who are working and who are associated with small boat building several dozen manufacturers of small boats and services for maintenance of boats, as well as several manufacturers of components for the nautical sector. Three out of 45 are in bankruptcy process. The large number of small shipyards is located in Zadar or in his vicinity (mostly in Biograd na Moru), while the lowest number of active shipyards is on the islands nearby. Nowadays, more and more companies who perform different services in small boat building are opening new facilities in the interior of the county due to the adopted policies for reducing taxes that local governments provide for them. 1.2 CURRENT SITUATION IN THE NAUTICAL SECTOR OF CROATIA Small boat builders are faced with lots of problems. One of the biggest problem is the inability of financing, which is associated with the lack of understanding that policy makers have for the needs of the small boat builders. It is evident that policy makers on the national level are ignoring the sector of small boat building there is still no clear definition of what is a small boat and small boat building, also, it is not even included in the new Industrial strategy which is under construction. Therefore, it is very difficult for those companies to get bank loans, they can rarely look for subsidies on national tenders (small boat buildings is not sufficiently attractive) or apply project for EU funds (because they are classified with large ship building to which cannot compete). Furthermore, there is not enough capable boat designers or adequate design studios (unlike Slovenia). Although some small shipyards have designers as employees, most of the projects are still being ordered from abroad because of their quality. Regarding to the profits, Croatian boat builders will be able to compete with the European when they introduce mass production of boats, which is not expected to be happening soon due to the lack of financial and human resources, but as well due to the need of investment in technology and modernization of production processes. Most of the ships manufactured in Croatian small Page 4
shipyards belong to the small series production therefore, every boat is a prototype for itself and as such can be easily adapted to the wishes of the customer. Another problem is insufficiently developed marketing approach of Croatian small boat manufacturers who produce high quality product, but they don't know how to sell it on market. 1.3 PRECONDITIONS AND DEVELOPMENT POTENTIAL OF THE NAUTICAL SECTOR IN THE ZADAR COUNTY In the future, it is expected that the small boat building will continue with its progressiveness and it will achieve significant success. Despite all the obstacles that boat builders faced over the years, it's evident they're not giving up easily and they are making great effort to succeed. According to the latest available data, the sector of small boat building is showing significant signs of recovery and we can expect good news and great products from them. 2. REVIEW OF THE EDUCATION AND VET CAPACITY OF CROATIA IN THE MARITIME SECTOR 2.1 SECONDARY EDUCATION Maritime secondary schools educate staff in national, European and international/global frameworks to actively participate in the creation, development and implementation of appropriate multi-disciplinary marine science and it strongly emphasizes the maritime orientation of the Croatia in the world. The first Nautical school on the east coast of the Adriatic Sea was founded in Bakar in 1849, after which Maritime school in Split, Mali Losinj, Zadar and Dubrovnik were established. In Croatia there are eight schools in Maritime sector: Secondary school Korčula Secondary school Ambroz Haračić Mali Lošinj Maritime school Zadar Maritime technical school Dubrovnik Maritime school Bakar Technical school Šibenik Traffic and technical school Šibenik Maritime school Split Page 5
MARITIME SCHOOL ZADAR http://www.ss-pomorska-zd.skole.hr/index.php?lang=en Maritime High School Zadar is situated on the Zadar peninsula, next to the Land Gate in a small harbour called Foša. The school was founded in 1957. More than 4000 students are proud of having the school s diploma. The school today trains students in three main departments: o Nautical department o Marine engineering department o Technician for logistics and shipping The courses in the Nautical High School Zadar comply with the STCW standards of navigation and have to meet all the requirements set by IMO (International Maritime Organization). After successful completion of education, students acquire internationally recognized certificates and as su.ch are fully competitive on the world s market. There are 50 members of school s staff, 38 of them are highly qualified teachers and others are employees in the accompanying departments. The classes are held in the morning exclusively. Workshop exercises and practice, extra classes for weaker students and additional for stronger students, as well as those preparing for the State Final Exam are held in the afternoon. Starting from 2012, the school has introduced a new department Technician for yachts and marines. MARITIME TEHNICAL SCHOOL DUBROVNIK http://ss-pomorsko-tehnickadu.skole.hr/ Maritime Technical School Dubrovnik has 12 classrooms, administration rooms, accounting, staff room, computers which are equipped with modern technologies, classroom for general and vocational contents (ARPA - simulators according to STCW-convention simulators and auxiliary ship engines) and nautical classroom equipped with resources and devices according to the same convention, physical cabinet and workshops for training and practicing engineering, sailing skills and electronic exercise. School also has its own sports hall and outdoor sports field with lights. They are independent Internet user, and soon will be eligible for ISO 9002 certification, which will have a significant impact on improving the reputation of the school, for students this means numerous benefits and privileges. School has Maritime nautical department (since 1852) which includes: o Marine Engineering (since 1956) o Department of electronic (since 1961) o Mechanical Department (since 1993) o Electronics technician (since 2000) o Computer technician for mechanical engineering (since 2001) Page 6
MARITIME SCHOOL BAKAR http://ss-pomorska-bakar.skole.hr/ The name Maritime Merchant Academy was given to the school in 1932. During World War II, in 1941, the Italians occupied the school building, and many of it's students went to fight for the Partisans. After the liberation in 1947, according to the decision by the Ministry of Maritime Affairs, maritime academies were renamed into Maritime technicums. The nautical department of the school in Bakar was moved to Rijeka, while only the ship engineering department remained in Bakar until 1954. According to the decision by the Council for Education, Science and Culture, nautical department was transferred back to Bakar on 2ⁿ August 1954. The school got the name Maritime School in 1958. The Maritime School Centre Bakar was founded on the 18ᵗʰ December 1973, consisting of the Maritime School, the Adult Education Department (Centre for Professional Education of Seafarers since 1974), the Dormitory and the Department of Shared Services. The name Maritime School was restored on 5ᵗʰ April 1993. Today school has two departments: o Nautical department o Marine engineering department SECONDARY SCHOOL KORČULA http://ss-psegedina-korcula.skole.hr/ The school on island Korčula was established in the 1950s. It has several departments and one of them is Marine engeering. The school also educates students in general high school, electrical engineering, mechatronics, marine engineering and hotel and tourism technicians and sales. School is currently working on three different locations. SECONDARY SCHOOL AMBROZ HARAČIĆ MALI LOŠINJ http://www.ss-aharacicamalilosinj.com.hr/ Secondary School Ambroz Haracic is the legal successor of the former Secondary School Center (COUO) which was created by consolidating three schools - maritime, economic and catering school. From three above mentioned schools the oldest one is Maritime school which started as private school in 1780s. In the 1990, school got name after the famous professor of Lošinj's Maritime school Ambroz Haracic. Today school has two departments in nautical sector: o Nautical department o Marine engineering department Page 7
TEHNICAL SCHOOL ŠIBENIK http://ss-tehnicka-si.skole.hr/ Technical School Šibenik is educating students and adults in the areas of mechanical engineering, civil engineering and electrical engineering. In the school, students are trained for the profession of technicians in those disciplines through the four-year program. The school has been operating since 1971, first under the 'Metalsko metallurgical training center' (MMSC), and from 1979 in the framework of the 'Centre for education and vocational education' (CCUO) in Šibenik. Since 1991, the school operates independently. Today technical school has the option of educating students for the following professions: o Electrical engineering (in electronics technician and computer technician) o Mechanical engineering (computer technician for mechanical engineering and marine engineering technician) o Building (construction technician and architecture technician) TRAFFIC AND TECHNICAL SCHOOL ŠIBENIK http://ss-prometno-tehnickasi.skole.hr/ Traffic and technical school Šibenik was established on 23 November 1992 by the decision of the Municipal Assembly of Šibenik as the legal successor of the Center for education and vocational training, continuing the long tradition of high school students in the traffic occupations. Since 8ᵗʰ of February 1995 school is a member of UNESCO's school and since June 2010, the school has a standard ISO 9001: 2008. In the school students are trained in four-year programs: o Technician of road traffic technician for postal and financial services (PT technician transport), o Maritime sailor and technician for logistics and freight forwarding, o Driver of a motor vehicles (three-year program) School is located on two locations. Most of the classes take place in the building of the City Gymnasium and partly in a former vocational school at King Zvonimir 2 (opposite the National Theatre). Office City Gymnasium, is also shared with two other schools, Gymnasium Antun Vrancic, and this Economic and Administrative Administration Page 8
MARITIME SCHOOL SPLIT http://www.pomsk.hr/ Maritime School in Split was established by the imperial command of 24ᵗʰ September 1849, classes have started on 1ˢᵗ March 1850. In the first school year there were nine students registered. On the September 24ᵗʰ 1874, school was abolished. In 1960s Maritime School in Split was reopened. Since then the school has three departments: o Nautical, o Marine engineering, o Shipbuilding. 2.2 HIGHER EDUCATION In Croatia, universities are providing training for seafarer, yachtsmen, sailors and other workers in the maritime industry for the acquisition of maritime professions and certificates of seafarers in accordance with all relevant regulations. There are four University studies in maritime sector in Croatia: Faculty of Maritime studies Rijeka Faculty of Maritime studies Split University of Dubrovnik-Maritime studies University of Zadar- Maritime studies MARITIME DEPARTMENT, UNIVERSITY OF ZADAR http://www.unizd.hr/default.aspx?alias=www.unizd.hr/promet-pomorstvo& The Maritime Department (known as the Professional Faculty in Zadar) started working in the academic year 2001/2002 as a dislocated study of the Faculty of Maritime Studies of the University of Rijeka. The Maritime Department as a component of the University of Zadar (at first known as the Department of Transport and Maritime Studies) was founded at the end of the 2004. After the department had been founded, from the academic year 2005/2006 mentioned study programs started functioning as the studies of the University of Zadar with new structure in line with the Bologna Declaration. The Department is involved in Erasmus and CEEPUS mobility programmes. Organizational units of the Department are two divisions, namely: - Division of Nautical Studies - carrying out study program of Nautical Studies and Maritime Transport Technology. This 3 year study program is credited with 180 ECTS. The program enables students to operate a ship, participate in management of shipping companies etc. Teaching program contains information related to the field of ship operating, management, technology, information science, maintenance, environment Page 9
protection, economy and law. In all three years attention is paid to the contents in accordance with the STCW Convention 78/95 which is necessary for obtaining the highest positions in the field of maritime affairs (chief officer and master of a ship over 3000 gt). The qualification awarded is Bachelor (baccalaurea/baccalaureus), engineer of Nautical Studies and Maritime Transport Technology. - Division of Maritime Engineering - carrying out study program of Marine Engineering and Maritime Transport Technology. This 3 year study program is credited with 180 ECTS. It enables students to maintain and operate ship facilities, participate in managing shipping companies, getting employment in shipyards etc. The teaching program encompasses knowledge from the fields of technics, technology, marine engineering, electro-technics, electronics, maintenance, information science, environment protection, economy, law and management. In all tree study years attention is paid to the contents in accordance with the STCW Convention 78/95 which is necessary for obtaining the highest positions in the field of maritime affairs (second engineer officer on a ship powered by the main propulsion machinery of over 3000 kw and chief engineer on a ship powered by the main propulsion machinery of over 3000 kw). The qualification awarded is Bachelor (baccalaurea/baccalaureus) engineer of Marine Engineering and Maritime Transport Technology. Special Education Program for Seafarers On the basis of the Senate decision from February 25, 2011, the Department is a representative of the lifelong education program called Special Education Program for Seafarers. Similar program was launched at other maritime higher education insitutions (Faculty of Maritime Studies in Rijeka, Faculty of Maritime Studies in Split and the Maritime Department of the University of Dubrovnik). Teachers and external associates of the Department were entrusted with teaching activities within this program. The program was organized is accordance with the Ordinance amendments to the Ordinance on Vocations and Certificates of Competencies for Seafarers (OG 142/10). Study courses encompass obligatory contents according to the Convention STCW 78/95 i.e. the Ordinance on Vocations and Certificates of Competencies for Seafarers at Merchant Navy Ships of the Republic of Croatia. After the attendants of the program had passed all exams, they may take an exam with the Department approval for the highest vocations in accordance with the Maritime Law (OG 181/04, 76/07, 146/08, i 61/11) and Ordinance on Amendments to the Ordinance on Vocations and Certificates of Competencies for Seafarers (OG 142/10). At the end of the program the attendant receives a certificate. Page 10
3. REVIEW OF SME s TRAINING CAPACITY IN THE NAUTICAL SECTOR OF ZADAR COUNTY Regarding to the companies in Zadar County, there are only few companies in which students can do capacity training. Those companies are: Jadrolinija D-Marin Dalmacija D-Marin Borik Tankerska plovidba JADROLINIJA http://www.jadrolinija.hr/ Jadrolinija is Croatia s largest liner shipping company for the maritime transport of passengers and vehicles, with a hundred year long tradition. The Company was founded on 20ᵗʰ January 1947 in Rijeka as a successor of various mergers of small-sized shipowners having taken place since 1872. The basic purpose of Jadrolinija is to connect major centres along the Croatian coast as well as numerous islands with the mainland. The carriage of passengers and vehicles is of seasonal character and closely related to the travel and tourism industry. There are 3 spacious car ferries: Marko Polo, Dubrovnik and Zadar operating on the international lines towards Italy (Ancona and Bari). 33 smaller car-ferries, 3 classic passenger ships, 8 catamarans and a water bus sail on the regular local car ferry and ship lines in the Adriatic, divided into 3 districts: Rijeka, Zadar & Šibenik and Split & Dubrovnik. Jadrolinija has rendered booking and ticketing possible for its guests at their own place of residence, as its sales network comprehend all the tourists generating countries: Italy, Germany, Bosnia and Herzegovina, Slovenia, Poland, Great Britain, France, Belgium and Australia. Besides at the agencies, all the relevant information may be obtained via internet www.jadrolinija.hr as well. There were 9.981.949 passengers and 2.530.434 carried on board Jadrolinija s 50 ships (3 large passenger ferries in coastal and international services, 33 ferries in local passenger services, 8 catamarans, 1 hydrobus and 3 conventional ships). Based on the last year data there are 600 departures daily envisaged for the next summer, with 24 hour service to be provided on most frequent routes. Page 11
D-MARIN http://www.d-marin.com/en/homepage.aspx D-Marin is a Doğuş Group company that was established to set a new benchmark in design and operations of the marinas. The Group considers the marina and yachting industry as an area with high development potential. By managing 11 unique marinas in Ionian, Aegean & Adriatic Seas, D-Marin creates one of the largest international chain of marinas in the Eastern Mediterranean that promotes recreational yachting; provides critical waterfront infrastructure that allows community access to the natural waterways; and develops sustainable businesses that encourage local employment and growth within the economy. Company started its operations in 2003 in Turkey with its first marina, D-Marin Turgutreis. In 2009, D-Marin Didim commenced operations as the second marina in the network, and furthermore, in 2010 D-Marin Göcek joined to the D-Marin. In 2009, D-Marin expanded outside of Turkey and entered Croatia through D-Marin Mandalina located in Šibenik. In April 2012, D-Marin Dalmacija, which is the largest marina in Croatia, and D-Marin Borik joined D- Marin. The group has increased its stake in Adriatic Croatia International ACI (Group) to 10.86% by 2014. In December 2012, entering into partnerships with Lamda Development and Kiriacoulis Mediterranean Cruises Shipping resulted in adding a world class superyacht marina - Flisvos Marina, also 3 other premium marina destinations in Greece; Gouvia, Lefkas and Zea to its portfolio. In June 2015, D-Marin s total capacity increased to 8,570 berths by the management agreement made with Dukley Marina Budva d.o.o. in Montenegro. D-MARIN DALMACIJA http://www.dmarin.com/en/marinas/croatia/dalmacija/overview.aspx D-Marin Dalmacija, the largest marina in Croatia, is located in a naturally protected bay, 7 km south of the ancient port town of Zadar. The marina is easily and safely accessible by modern motorway and is only 5 km far from the Zadar International Airport. From March to October airport is connected with direct flights to the biggest European cities. With safe and fully serviced berths, experienced staff, excellent maintenance and repair services D-Marin Dalmacija ensures peace of mind for all its clients and provides them with the opportunity to relax and enjoy the perfection of this archipelago, which surely features in the dreams of all who love boats and the sea. Marine meets the highest international standards for environmental management and has been awarded with the blue flag each year since 2000. D-Marin Dalmacija is the perfect superyacht homeport due to its central position. Yachts can access any area of the Adriatic Coast at only a-day cruising distance from the marina. High quality berths can easily accommodate superyachts up to 80 m in length and their users benefit Page 12
from vehicle access directly adjacent to berths and impressive shopping & dining in nearby Zadar. D-Marin Dalmacija is also a haunt for the superyachts; it provides special and differential treatment to the distinguished guests. D-Marin Dalmacija provides berths for 1,200 yachts up to 80 m in length, the marina includes wide fix piers with adjacent car parking and superyacht berths. The depth at the entrance to the marina is between 5 to 8 meters, however in the central part of the bay ranges change from 3 to 8 m. The marina provides necessary electricity connections and waste removal services at all berths. Also, marine is adequately equipped to service and repair any and all yachts at the marina. D-MARIN BORIK http://www.d-marin.com/en/marinas/croatia/borik/overview.aspx D-Marin Borik is situated on the west coast of the 3,000 year old city of Zadar, in the centre of the beautiful Croatian coast. With the capacity of 177 berths and all services, marina users can say D-Marin Borik is truly a boutique marina. It is easily accessible by land or sea and is at a distance of only 13 km from the Zadar Airport which is connected to more than fifty major European cities with seasonal flights. The town of Zadar is served by ferry connections with Ancona in Italy as well as with ports up and down the Croatian coast. Accommodating as many as 177 yachts up to 30m in the water with an additional 50 berths on the hardstand, the marina features water depths of between 2-6 m and an entrance depth of 6,5 m. Dry dock facilities include also well equipped water and electricity connections. D-Marin Borik is ISPS certified marina. TANKERSKA PLOVIDBA http://www.tankerska.hr/en/ Tankerska plovidba is a shipping company since 1955. At company they are proud to have various of certificates; some of them are obligatory - like ISM Documents of Compliance - but some of them are on voluntary basis (ISO 14001, for example). Company is in the process of obtaining ISO 50001 standard, which should be done by the end of this year. The departments are regularly checking internal procedures and striving to gain better KPIs in OCIMF's Tanker Management Self Assessment program. There are several courses and refreshment classes for seafarers developed by their employees and held in company premises on daily basis. Main topics are safety, prevention and maintenance routines. Shore staff is having their knowledge and routines tested and upgraded by regular visits and lectures of Class, P&I club and manufacturer representatives. Page 13
Furthermore, it is important to emphasise that since 1ˢᵗ of January 2012 we are considered as "dry company" - there is zero alcohol policy on all of their vessels. Another interesting thing about company is that on July 26ᵗʰ 27 ᵗʰ, their boat M/T Kornati took part in rescuing immigrants from a sinking boat in Libyan territorial waters. On that occasion 22 immigrants were saved and taken to the Italian island of Lampedusa where the Italian coast guard took charge of them. Page 14