Numerous newcomers at SMM 2008The global shipbuilding industry is racing from record to record. And this unbroken boom is also bound to boost business at SMM 2008, which will make Hamburg hub of the sector for four days, from 23-26 sept. 2008. Many shipyards and marine equipment suppliers are making the most of the market opportunities and will be using the SMM as showcase for their innovations for the first time.
Forging ahead for Hamburg: Over 1,600 exhibitors and 46,000 trade visitors from every continent are expected to come to Hamburg to attend SMM 2008.
Next year the shipyard association of the top shipbuilding country, The Korea Shipbuilders´ Association (KOSHIPA), will be making its debut at the SMM. Apart from KOSHIPA, numerous newcomers, including many yards, have registered for SMM 2008, 23rd Shipbuilding, Machinery & Marine Technology, International Trade Fair Hamburg. This confirms the outstanding status of the leading trade fair for shipbuilders and marine equipment suppliers.
The new SMM exhibitors are represented in all exhibition areas, including shipbuilding, navigation and communications, propulsion, equipment and service.
The run on SMM 2008 is already so impressive weeks before the closing date for registrations that even the offer of increased space compared with the previous SMM will probably not suffice to meet all requirements for larger stand areas. A waiting list will also probably be unavoidable. “It looks like we won’t be able to provide any more exhibition space for companies that haven’t registered by November 15th 2007,” admits Martin Greve, SMM project director at Hamburg Messe.
Apart from four existing halls, six new halls with a total of 75,000 sq.m. of space will be available for exhibitors at SMM 2008.
The overall economic environment could scarcely be better for the next SMM. Contracts for new ships are filling yards’ orderbooks, and the mood among marine component suppliers is nothing short of euphoric. The world market for first-rate equipment is growing by leaps and bounds. European suppliers are convinced that the shipbuilding boom will continue “at least” until 2010. Quite a few engine makers have booked orders for main engines up into 2012.
The odds are that the top sector event SMM 2008 will prompt another rush of orders.
SHIP FINANCE again at SMM
The first international ship financing conference SHIP FINANCE staged by Hamburg Messe and Financial Times Deutschland proved to be a very successful “curtain raiser” at the last SMM. This conference will thus be held again at SMM 2008, spotlighting financing aspects in connection with technical parameters. The symposium will be on 22 sept. 2008, the day preceding the first day of the leading shipbuilding trade fair.
The No.1 among the world's largest shipbuilding companies according to Clarkson is the Korean "productionline"shipyard Hyundai Heavy Industries(HH).
TheEuropean shipbuilding industry is a high tech sector with a great future and is a key economic and locational factor. It also plays a pioneering role in terms of environmental and climate protection,” confirmed the German federal economics minister Michael Glos at the first European shipbuilding confer-ence held recently in Nuremberg attended by about 200 prominent representatives of the governments of the member states and the European shipbuilding industry. Günter Verheugen, Vice President of the EU Commission, also emphas-ised the great importance of the shipbuilding sector in Europe and the excellent market outlook.
Günter Verheugen, Vice President of the EU Commission: "I believe that Europe's world-class shipyards and maritime industires can face the future with confidence".
The first European shipbuilding conference marked the start for a dialogue throughout Europe to ensure the future capabilities of the European shipbuilding. The conference focused on how the goals of the initiative LeaderSHIP 2015, with which the European shipbuilding industry has embarked on an ambitious future-oriented programme, can be reached.
Registration for SMM 2008:
November 15th 2007
The registration deadline for SMM 2008 is
November 15th 2007.
If you require registration forms or visitor information on SMM 2008, please contact:
The aim of No.2: "Samsung Heavy Industries is continuing its voyage towards its goal as the Worlds's No.1 Shipyard," says President&CEO Kim Jing-Wan."
The Korea Shipbuilders’ Association (KOSHIPA) will be presenting the Korean shipbuilding industry for the first time at the leading shipbuilding fair next year. It is the clear leader among the top shipbuilding countries, but faces fierce competition within Asia. Six of the nine KOSHIPA members are among the seven largest shipyards in the world. Jang-Sop Han, Executive Vice Chairman of KOSHIPA, explains to SMM NEWS Korean yards’ strategy for defending their leadership.
Mr Han, where do you see the special strengths of the Korean shipbuilding industry?
The Korean shipbuilding industry has succeeded despite severe competition in the world shipbuilding market. The main factors are as follows. First, design flexibility supported by expert technicians and cutting-edge technology makes it possible to deliver vessels required by shipowners on time. Second, the large-scale facilities which make it possible to achieve econo-mies of scale in the shipbuilding industry. As a result, several Korean shipyards rank among the top ten shipyards in the world. Third, Korean shipbuilders possess great advantages in securing the highest quality ship machinery and equipment, especially steel plates and marine engines. The localization of the ship machinery and equipment product-ion is more than 90%, and about 80% of this is installed in our domestically produced vessels.
In what shipbuilding technologies is the Korean shipbuilding industry investing to a particular extent?Korean shipbuilders are further reinforcing their competitiveness with investment in new technologies such as advanced CAD system for ship design; on land construction technology including skid-launching system; underwater welding technology; mega block technology; various technolo-gies related to LNG carriers like integrated automation system, cargo containment system and propulsion system; ice class & Arctic ship construction technolo-gy; fuel-saving vessel design technology; super speed hydrofoil boat technology; basic design system for submarines, etc.
Construction of cruise ships has so far been a strong point of European shipyards. When will we see the first luxury liner being built at a Korean yard?
Considering Korean shipbuilders’ current orderbook status equivalent to more than 4 years’ workload and related resources including yard facilities, they do
not seem ready to enter the luxury cruise ship market in the near future. However, some shipyards have already delivered Ro/Pax ferries to foreign owners and are making feasibility studies for the cruise ship market.
Jang-Sop Han,Executive Vice Chairman of KOSHIPA, The Korea Shipbuilders' Association
In what areas do you think there might be joint ventures between Korean and foreign shipyards? Could European companies be involved?
Member companies of KOSHIPA have already started to operate or decided to in-vest in shipyards with hull block production facilities and technical tie-up in Romania, China, Vietnam, the Philippines and the USA.
What do you expect from SMM 2008 in Hamburg?
Korean shipbuilders are very pleased to attend this SMM for the first time, the SMM being one of the largest maritime events in the world, and believe it will give them a good opportunity to improve their networking with their clients. And also we hope to enhance cooperation with ship-owners around the world.
There continue to be reshuffles in the rankings of the shipbuilding countries. The People’s Republic of China is meanwhile hot on the heels of the front runner Korea. In terms of newbuilding order
volume, Chinese shipbuilders with orders for 2,341 vessels even have a thicker orderbook than Korean yards (1,793).
The world shipbuilding market continues to be in very robust shape. According to Clarkson Research, shipyards worldwide delivered 812 vessels totalling 15.2m cgt and received newbuilding orders for 1,778 units/35.8m cgt in the first half of 2007. Orders on hand thus leaped to an unprecedented 7,770 newbuildings/150m cgt. This was well up on the tally at the end of 2006 (6,090/118.3m cgt), even if the comparison is not exact, as the cgt calculation was modified from 1.1.2007.
Korea has received orders totalling 53.7m cgt (35.8%) and thus the largest slice of the order cake. China follows with 38.8m cgt (25.9%), ahead of Japan with 29.6m cgt (19.7%), Germany (3.8m cgt/2.5%) and Italy (2.5m cgt/1.6%).
Many more mega containerships
In virtual reality, mega containerships carrying 12,000 TEU have already been riding the waves and across the pages of trade journals for some years now. In September 2005, HHI and Germanischer Lloyd presented a sophisticated design study for a 13,000 TEU leviathan. This year the leading container carrier, A.P. Møller-Maersk, commissioned the first 12,000 TEU giant, the “Emma Maersk”. The dam now seems to have been broken: container carriers are bombarding yards with inquiries for 12,000 TEU vessels, also designated Supra-Panamax. The main beneficiaries are Korean shipyards, which claim 75% of the orders for Very Large Container Ships (VLCS) with over 7,500 TEU capacity. The chief Korean yards in this segment are Hyundai and Samsung. In July, Nordcapital Group ordered eight containerships each of 13,100 TEU capacity for an overall US$1.4 billion from Hyundai Heavy Industries (HHI). The VLCS fleet comprised 174 ships with a total capacity of 1.51m TEU in late August 2007, according to AXS-Alphaliner. There will be a further 7 vessels with over 10,000 TEU capacity in 2007 and in subsequent years 13, 27 and in 2010 as many as 34 of these mega containerships.
Strong segment at Damen: High-speed and naval craft business
The Dutch shipyard group Damen is a global player with 25 production locations in 8 countries. With 8,500 employees, Damen built 125 vessels and achieved sales of €1.2 billion last year. In an exclusive interview with SMM NEWS, René H. Berkvens, CEO of Damen Shipyards Group, describes the course Damen will be taking in future.
Mr Berkvens, where do you see the core competencies of Damen Shipyards Group?
Damen Shipyards Group is a diversified group of companies active in some 8 different product/market combinations. Particularly strong niche markets are the tugboat area as well as our high speed and naval craft business, but we also have a strong position in certain short sea shipping products and repair in the North Sea.
How fast has your group grown in percentage terms in the last five years?
We practically doubled business during the past 5 years.
What is your growth strategy for the next few years?
For the next few years growth will be focussed on improving our profitability and stability.
How important is the mega yacht segment for Damen Shipyards Group?
The mega yacht business has been part of Damen Shipyards Group since 1987. After some turmoil, the business has been firmly established at the Vlissingen facility and is thriving as never before with an order book comfortably filled into the next decade.
How significant is naval shipbuilding in your group? What share of group sales is accounted for by naval shipbuilding?
From its inclusion into the Damen Shipyards Group in 2000, naval business has been contributing to the group in terms of both financial results and technologically useful cross fertilization between our civil and naval business, making both stronger. With the recent deliveries of the LPD to the Royal Netherlands Navy and the corvette programme for Indonesia, we feel that our naval business is on track to a bright future.
René H. Berkvens, CEO of Damen Shipyards Group
Royal Schelde Group has developed a modular design method for corvettes. Could you envisage closer cooperation with other European shipyards active in naval shipbuilding?
Ever since our take-over of Royal Schelde, we have maintained excellent
relations with other naval yards in Europe.
We have followed with interest the discussion on the so-called “Seabus” initiative but see this more as a subject for large state owned naval shipbuilders. Of course we are always open for dialogue or cooperation, but at the same time we realize that the speed of such discussions is such that we must continue all our efforts to remain profitable and if necessary independent.
Demand for ship newbuildings re-mains high thanks to the ongoing upsurge in world sea transport.
We are thus witnessing an impressive expansion of newbuilding capacities.
And not just in Asia. The Turkish Hay Shipbuilding and Maintenance & Rep-airs Inc. (HGS) began work on capacity expansion this summer. According to the HGS board chairman Bülent Uzunsaç, the yard is to become the largest Turkish shipbuilder and the second largest worldwide producing 35 newbuildings annually by 2009. Shipbuilding groups in Asia are certainly not lagging behind in the race to expand capacities. The four main Korean shipyard groups Hyundai, Samsung, Daewoo and Hanjin are increasing their local and foreign capacities. Hyundai will be setting up its tenth drydock for building new vessels totalling 1m dwt annually in Ulsan by 2009. Samsung’s projects include construction of a floating dock for LNG tankers. Daewoo intends to have lengthened its drydock to 570m by 2008 and put a new mega floating dock into operation by 2009. Hanjin is investing US$1.65 billion in the construction of a new yard in the Philippines. The Japanese Oshima Shipbuilding intends to boost its annual capacity of currently 36 vessels to 60 newbuildings.
India also wants to play a greater rolein shipbuilding in future. Shipping Corp.
of India (SCI) plans to invest US$125m in building a new yard in India and is seeking a partner for this project. China is also keeping up a cracking pace. Kawasaki intends to set up one of the
Capacity extensions with clear goal: Daewoo Shipbuilding & Marine Engineering Co., Ltd. (DSME) is to become “the world's best shipbuilder”, according to its president S.T. Nam.
largest shipyards in China with its Chinese partner COSCO in Dalian to build vessels for transporting iron ore and petroleum from 2010.
The third large Chinese shipbuilding group alongside CSSC and CSIC, Shipbuilding Industry Corp. of China Chang-jiang National Shipping Group (SBICO), plans to double the production of its four shipyards in three years.
Multifunction systems on the bridge: VisionMaster FT™ from Northrop Grumman’s Sperry Marine
The trend was already apparent at the last SMM: the networking and integration of various functions in the equipment on the ship’s bridge is continuing. All suppliers of sophisticated navigation systems – such as Kongsberg, Northrop Grumman Sperry Marine, Raytheon and SAM – are interested in integration. Multifunction workstations for the bridge will also be showcased by the relevant suppliers at SMM 2008.
For the officers of the watch on the bridge, these jacks of all trades make life a lot easier by making it possible at the press of a button to switch on each of the flat screens from radar to ECDIS or the display of vital ship operating data such as course and speed or wind speed.
These allrounders have meanwhile entered the bridges of the most recent cruise ships such as “AIDAdiva”, which is equipped with the integrated NACOS system with three Multipilot 1100 systems from SAM.
Northrop Grumman’s Sperry Marine supplies VisionMaster FT™, the integrated bridge system of the next generation, for the giant cruise ships of the “Genesis class” under construction at Aker Turku in Finland. The complete suite of navigation, communications and control systems also includes a total of 13 TotalWatch™ multifunction workstations on the bridge, as well as a TabletBridge™ wireless node in the captain’s cabin.
Focusing on boosting efficiency
Multifunction systems on the bridge: VisionMaster FT™ from Northrop Grumman’s Sperry Marine
The subjects of environmental protection and efficiency increases are basically Siamese twins. No one knows that better than the companies that will be displaying new engine technology at SMM 2008, because cutting fuel consumption means releasing fewer pollutants into the air. SMM visitors will thus see in the engine hall the latest competition between the innovations for increasing cost-efficiency.
That electronics and common rail technology are indispensable has long since been a matter of course for the designers at Caterpillar, MAN, MTU, Niigata or Wärtsilä. Common rail technology permits free selection of injection parameters, sequential turbo charging, variable valve control, etc., all of which leads to more precise combustion and thus also reduced fuel consumption and pollutant emissions, i.e. lower CO2 and NOx levels.
The technology has meanwhile also arrived for large engines. Wärtsilä successfully tested the largest common rail engine in the world, the 14-cylinder RT-flex96C (80,080 kW (108,920 bhp), at the HHI shipyard in Ulsan in mid-2007.
Prof. Dr. Wolfram Lausch, Senior Vice President of MAN Diesel, considers an 8% increase in the efficiency of the entire propulsion system to be conceivable.
TU is focusing on innovations inside the engine for cutting pollutant emissions. The new 4000 engines comply with the more stringent US emission limit values, which prescribe above all a significant reduction in nitrogen oxide levels. Caterpillar has meanwhile successfully run two Cat C18 engines installed in a yacht on B30 biodiesel.
Much younger global merchant fleet
The world merchant fleet is a good mirror of the globalisation of the economy. According to the statistics of Lloyd’s Register, gt merchant tonnage has soared by close on 50% since 1995. The expansion of world trade in recent years is reflected in the age structure of the fleet. The Bremen-based Institute of Shipping Economics and Logistics (ISL), claims that 28.8% of all dwt tonnage was built in 2002 or later. And 49.5% of fleet tonnage is younger than ten years.
The dynamic world economy is reflected even more impressively in the age struct-ure of the main ship types: 38.8% of all containerships are at most five years old, while 33.9% of oil tankers were commissioned after 2002 – certainly a sign of the surging demand for global energy, as well as a consequence of the IMO regulations for withdrawing all single-hulled tankers entirely from service by 2015.
Cutting edge: The latest 68m yacht “Aviva”, delivered by Abeking & Rasmussen in May 2007, has an almost vertical stem, which ensures excellent seakeeping behaviour and low fuel consumption by the Caterpillar 35/16 engine plant.
The small but stylish super yacht segment is certainly a very attractive market for shipyards. That’s hardly surp-rising, as owners are primarily conc-erned not with the most favourable production price but with high quality and state-of-the-art equipment. And these will be presented by SMM 2008 in all areas – propulsion (with makers such as Caterpillar and MTU popular for super yachts), ship management, navigation and communications equipment (Ray-theon, SAM, Kongsberg, etc.)
or internal fixtures. All leading suppliers of equipment for super yachts will be represented at SMM 2008. For owners and builders of super yachts, next year’s SMM will thus be the main marketplace for fitting out the floating luxury villas with the latest equipment.
Exhibitors at SMM will thus have plenty to handle. According to the well-informed British journal The Yacht Report, there are 160 super yachts with a length of 50m and over on order worldwide. Italian yachtbuilders head the field with 41 orders and 2,539m total building length, trailed by Germany (23 orders/2,000m) and the Netherlands (20 orders/1,228m).
Managers of cruise lines have always made their way to Europe to order new luxury liners. But quite a few could be going elsewhere in future if the new strategic plans of some Korean yards mature fast. In August, Daewoo Shipbuilding & Marine Engineering (DSME) announced its decision to enter the high-end cruise shipbuilding segment, founding a cruise ship project team and starting studying vibration and noise phenomena on cruise ships.
Samsung Heavy Industries (SHI) also has its sights set on the luxury liner segment.
The increasing enthusiasm for cruises is leading to a steady increase in orders for yards specialising in building this sophisticated ship type. As of mid-2007, there were as many as 38 cruise liners on order due for delivery from October 2007 to 2012, according to Maritime Business, LLC. Except for three ships with 32,000 gt, all are over 65,000 gt, including the 220,000 gt “Genesis”, the biggest cruise ship of them all.
Excluding two of the smaller vessels, which the Italian yard T. Mariotti is building, all orders have gone to the big three cruise ship builders, Fincantieri, Meyer Werft and Aker Yards. The Italians are the undisputed leaders with 16 cruise ships (claiming as many as 18). The Germans are designing and building 10 luxury liners. Aker France and Aker Turku have 9 orders.
Near completion: The 93,500 gt cruise ship “Norwegian Gem” is to be delivered by Meyer Werft to the US shipping line Norwegian Cruise Line (NCL) in 2007.
New super yacht builders
Established builders of super yachts such as Amels, A & R, Benetti, Feadship, Lürssen, TKMS and Yaretti have to contend with new competitors. One is Fincantieri. After its first order for a 134m yacht, the keel of which was laid this May, Fincantieri is negotiating with “several” potential owners. The Italian cruise ship specialists have commissioned prestigious yacht designers such as Tim Heywood and Camillo Costantini to create extravagant beauties. They have also entered into a joint venture with Benetti.
The Chinese shipbuilding group China State Shipbuilding Corporation (CSSC) also intends to step up its involvement in the super yacht segment.
New super yacht vision: Fincantieri’s 102m yacht project “Marco Polo”
Impressive expertise for off-shore and marine technology
German companies and institutes from the offshore and marine technology area will share a joint stand under German Maritime Technology at SMM 2008. As at the last fair, the joint presentation is being organised by InWaterTec in close cooperation with Gesellschaft für mari-time Technik (GMT). The line-up of approx. 20 exhibitors includes such prestigious suppliers as EDUR-Pumpenfabrik GmbH, GISMA Steckverbinder GmbH, STEEN Maschinenfabrik Engineering Works GmbH & Co. and Wirth Group.
Impressive light art in the Port of Hamburg: Over 30 laser and 200 searchlights transform the newly named “AIDAdiva” into a light sculpture. The 252m long club ship built at Meyer Werft is starting her cruise programme from the Elbe metropolis. 30 cruise ships are calling at Hamburg in 2007, many even several times. Photo: Hasenpusch
SMM visitors know Hamburg as a business centre for shipbuilding and shipping in Northern Europe. The metropolis on the Elbe is not only a world port but also a centre for media, cultural highlights, fine cuisine and superlative shopping in the north.
But if after a busy SMM day you prefer to take a stroll in natural surroundings you don’t have to venture far: almost 50% of the city area comprises park areas, water and forests – there’s more green to be seen in Hamburg than in any other major German city.
If you’d rather celebrate a good day at the SMM in a top international restaurant, Hamburg as capital of cuisine will certainly meet your taste. The prestigious gourmet guides – Michelin, Gault-Millaut, Varta or Aral Guide – are always full of praise for the Hamburg restaurant scene. Nine city gourmet temples have earned at least one star.
Hamburg is also regarded as one of the most diverse cultural centres in Europe, boasting three state theatres, over 40 private theatres and just as many museums and some 160 galleries.
Unique ensemble: Hamburg’s historic Speicherstadt, the world’s largest warehouse complex on oak piles, where Hamburg merchants stored and processed imported merchandise duty free at the end of the 19th century.
A number of new hotels that are bound to be particularly appealing for visitors to SMM 2008 are opening in Hamburg this year. They include the new Mövenpick Hotel Hamburg in the 60m high water tower protected as a historic monument in the heart of the city, just ten minutes’ walk from the trade fair grounds.
The Arcotel Rubin, a business hotel featuring state-of-the-art technology, a spacious conference area and 217 rooms, opened near the station this September.
From November 1st 2007, the Empire Riverside Hotel will offer on 20 floors a total of 328 rooms, many with a view
over the Port of Hamburg. The highlight is
the Bar 20up with its nearly 7m high panoramic windows.
The new Hotel Boston with its unusual and elaborate interior design is a smal but stylish establishment.
Lindner Hotel Am Michel will be opening in the city centre in February 2008 promptly in time for SMM 2008.
Hotel reservation service for SMM visitors
Already reserved your room for SMM 2008? Hamburg Messe offers you in cooperation with the FIRST travel agency Rauther a comprehensive service for your trip to Hamburg plus accommodation and leisure activities – before, during and after the fair.
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September 2007 – Printed in Germany
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