STAR LIBRA from Meyer Werft

GERMAN SHIPBUILDING:

CRUISE SHIPS, RO/ROs KEEP YARDS ROLLING

by Tom Todd

Orders taken last year by big German shipyards, worth more than DM 6 billion, were mainly for Roll-on/Roll-off, passenger and cruise newbuildings. While those orders should keep German yards busy into next year, the real mystery is what happens after that.

At least the maritime sector has found a strong supporter in German chancellor Gerhard Schröder. In June, Schröder initiated the first National Maritime Conference to demonstrate his support for the creation of strong shipping, shipbuilding and seaports and encourage their development. That came after his government reversed previous policies on shipbuilding subsidies and earmarked millions to help yards combat "ruinous" Korean price dumping.

Schröder has also pledged to seek an extension of EU shipbuilding subsidies beyond this year and has said he will fight for a relaxation of crippling quotas on east German shipyards.
He demonstrated his leadership again this Fall by becoming Patron of SMM 2000 -the first Chancellor ever to accept the title.

"I am pleased," said Dirk Rathjens, head of Germany's biggest shipyard, HDW in Kiel, "that after such a long time the German Government has finally recognized the problems the shipbuilding industry here has to face and how important that industry is for this country."

In the big-yard RO/RO and cruise sector, new orders appeared slow to emerge as the fall approached. There was word of a possible major new cruise ship order for Lloyd Werft in early August. Reports also persisted that Flensburger Schiffbaugesellschaft (FSG) might be in line for more Turkish tonnage--if not for British RO/RO newbuildings, which appear unlikely to materialize for political reasons. Both Blohm + Voss and Schichau Unterweser (SSW) were keeping their fingers crossed for more RO/RO-PAX ship work.

As of August however, only one new contract of note had been announced this year and that was Superfast's order for two newbuildings placed at Flender Werft in April. Despite that, many faced a busy Fall.

Late September, Aker MTW was to hand over the 260 m long hull of a $351 million cruise ship for NCL which will be completed at Lloyd Werft for delivery in about a year's time as Norwegian Sun. The hull is Aker MTW's first cruise ship since it built the 14,900 gt C.Columbus in 1997. Flender and Stahlbau Nord have also been involved in the latest hull work.

Aker MTW gets its teeth back into cruise ships when it starts work on the biggest built in east Germany, or anywhere in Germany apart from Meyer Werft, for a long time. The two 42,200 gt vessels are for delivery to Aida Cruises in 2002 and 2003 and together worth DM 700 million.

Premier cruiseship builder Meyer Werft, which delivered the 76,000 gt Aurora earlier this year, was busy with the first of two 91,000 gt ships for Star Cruises for delivery next year and in 2002. The first of two 88,000 gt gas turbine, podded drive ships for RCI was also being built with four more expected to follow up to 2006.

Meyer may not be too worried about the immediate order situation, but with its inland location on the Ems at Papenburg it has been demonstrably concerned about longer-term competition for ever-bigger vessels, particularly from Asia. However, the controversial Ems Dam has now been approved, guaranteeing passage to the North Sea for bigger ships like the planned 112,000 gt newbuildings for Star Cruises. Meyer has now also begun building a bigger hall, dock and other facilities costing DM100 million.

HDW was delivering the first two 31,500 gt versions of its six Superfast RO/RO ferries later than planned-in August and September-after delays caused by gearing problems. Some delivery reshuffling was also likely on four smaller versions being delivered next year. Flender Werft was to start work on its Superfast duo, for delivery in early 2002, after November. That's when the yard will deliver the last of three 13,000 dwt RO/RO freight ships worth DM200 million to Wagenborg.
Small RO/ROs are also proving lucrative for German yards. East Germany's Peene-Werft has completed two more of its versatile 8,831 gt RO/RO/LO-LO newbuilds this year, bringing to nine the number completed since 1996-six for Scanscot.

Well-booked FSG meanwhile was to deliver the second of six, possibly seven, 14,200 gt RO/RO trailer ships to Turkey's UND in October. The first was completed earlier this year and two more will follow in May and August 2001. Next February, the busy yard will also start building a 36,000 gt RO-PAX newbuilding for Smyril Line in the Faroes for delivery in spring 2002.

After marking its first launch of a newbuilding in more than three years, Schichau Seebeck-
werft was readying the first of two ultra-modern 34,500 gt RO/RO-PAX vessels for delivery to TT Line in February. The second is for delivery about August next year after which the yard will need new work.

So will Blohm + Voss which has already said it is hoping for a follow-up contracts from Royal Olympic Cruises when it completes the last of two 25,000 gt, 27 knot monohull cruise ferries next April. They are among the fastest of their kind in the world. The first was delivered in April
marking B + V's return to passenger ship building after a 30 year gap.

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