Page 39: of Maritime Reporter Magazine (August 2017)

“ “Only a few shipyards are capable of designing and delivering these vessels (small cruise ships) without losing money. The shipyards in

Europe, of course. We’ve seen attempts by Asian yards to undertake such projects, but they’ve proven a complete technical-? nancial failure.” “Within the ship management divi- ing and delivering these vessels without to fully functioning, depending on the equipment and technology, unlike a few sion, we have a specialized, dedicated losing money. The shipyards in Europe, infrastructure. The main challenge is to years ago when they were too busy and entity, that helps develop and execute of course. We’ve seen attempts by Asian ? nd experienced people to manage the ? ooded with orders and they exercised newbuilds, and that’s Schulte Marine yards to undertake such projects, but shipyard and work there, but once you the policy of “Take it or leave it,” and

Concept. We try to be a one-stop shop they’ve proven a complete technical- dismiss people it’s hard to get them they were afraid to move away from a for clients,” said Kozdron. SMC has ? nancial failure.” back. The maintenance of these and oth- vessel’s standard design. At this mo- now overseen more than 450 vessel proj- Mr. Kozdron says the cruise industry er complexities is the main challenge. ment, you can get the vessel you want ects — from an advanced wind-service boom still underway means, that if you Shipyards were forced by the market to made with the equipment you want at a vessel in Norway to work for U.S. yards want a slot to build a new cruise vessel, review their capacity, and they’ve done good price.” SMC, he says, would make building drydocks at other U.S. yards. then “You’ll have to wait until 2025 or this by closing down ? oating docks, dry sure the design is optimized for cash val-

The number includes ballast-water sys- 2026.” European shipyards, he suggests, docks, production lines and by dismiss- ue, the customer’s actual needs, re-sale tem installs, modi? cations and new- will survive by excelling in niche sec- ing personnel. value and a particular competitive edge. builds. Lately, though, the market has tors like Cruise. SMC, for its part, is in- “Today’s shipbuilding prices are low. “We add value to the build.” been “imploding” somewhat, although volved in development-stage tenders for They’re very tempting, and it’s the per- in China, at least, mergers have proven smaller, adventure vessels. fect time for owners who can arrange The Challenge “very successful.” Elsewhere, things are Outside of cruise, overcapacity has ? nancing and have employment for the “The hardest thing is to make sure the different. ravaged shipyards. “You can build a vessels. Shipyards today are ? exible and shipyard and the ship owner speak the “Everybody’s kind of in survival mode, shipyard within two years from scratch open to discussing (customization), new same language, that they understand including shipyards. Some of them are struggling to exist. Some survive mostly because of help rendered by local ship- owning companies or via the ? nancial sector and their government. Ship own- ers are also struggling with charters that are (inexpensive). They’re struggling to arrange ? nancing for newbuilding proj- ects, and shipyards are struggling with low prices and a low number of (new)

Standard ISO Shipping

Container Corner Bracket

Photo by Dave Gingrich Photo by TheEgyptian orders.”

Much of SMC’s recent business has been carried out on new-builds in Asia — China, Korea and Japan — in that or- der. “We actually managed a newbuild project in Europe last year (the Windea vessel at Ulstein).” Most of the recent work has been “very specialized, high- volume vessels. When it comes to bulk orders, big vessels, large numbers Asian shipyards are unbeatable.”

The Market

That,“the market hasn’t moved much the last years,” isn’t lost on Mr. Kozdron. “We’ve seen some movement into cruise liners or at least the small, adventure cruise sector. It’s an interesting sector.

It’s always kind of a new sector. Only a few shipyards are capable of design- www.marinelink.com 39

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