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30 September 2020 The on-line newspaper devoted to the world of transports 04:48 GMT+2



September 11, 2020

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To support European shipbuilding, Germany's VSM proposes EU funding programme to establish a European fleet "green"

According to President Laken, in the current situation of market needs to support the market's investment plans. shipping industry

German and European shipyards must be further supported by the Berlin government and the European Union to prevent the measures already taken to help the industry to withstand the strong negative impact caused by the effects of Covid-19 pandemics have the result of ensuring only temporarily the survival of the naval companies but not their medium- and long-term future. This, in short, the warning issued by Reinhard Laken, President of the Verband f'r Schiffbau und Meerestechnik e.V (VSM), the German shipyards association, in its editorial contained in the latest issue of the semi-annual magazine Germanic naval engineering organization.

Emphasizing that this health crisis, which is the first pandemic spread throughout the globalized world and none of which could have foreseen the scope and different outcomes of its effects, it will not save governments or companies, L'en noted that entire industries that were still in perfect health now have to proceed to a deep restructuring if they want to have a future. Relatively shipbuilding industry, Mr. that the crisis caused by the health emergency has had a strong negative impact on the sector and not only limited to the segment cruise ship: "Almost all segments of the market business - he specified - are characterized by a demand extremely weak', while the ship's only sector military and government continue to be a reliable base to ensure production.

He also focused on the different impact crisis has had and is having on European shipyards and on Asian ones, with the first that before the health emergency they generally had swollen order books that ensured prolonged periods of activity, while in Asia last year a number of construction sites were forced into inactivity. Recalling that in general European shipyards they build more complex ships than Asian ones, L'ken noted that this can paradoxically "In Germany," he explained, "the our production portfolio of complex specialized ships it also takes considerably longer delivery times. A shipyard - noted the president of VSM - can start tomorrow to build the hundredth ship made in series while drafting plans to build a complex prototype often takes well over a year. This -- pointed out L'ken -- it's also why we have to be in a hurry solutions to address falling demand. All experts agree that demand will recover, but until then this difficult moment will require a lot to us."

The President of VSM recalled that in Germany the value production of commercial ocean ships amounts to more than one year three billion euros, which doubles when combined with that production of boats for inland navigation value of ship repair and processing activities. Mr. L'en has specified that in the absence of a request for commercial shipbuilding these figures cannot be maintained as well as the jobs of 200,000 specialists in the well-trained sector.

In order to ensure that this heritage is not to be dispersed, asked that, in order for the stimulus plan adopted economy by the German federal government has an effect in the short-term funding instruments are being strengthened existing ones, but also that funding rates are adopted much less burdensome. Also noting that if it is right that funding programmes are generally aimed at building cleaner and more innovative ships, Laken specified that this can lead to difficulties investment by the shipping industry, in particular current market situation. In this regard, He suggested the launch of a European-wide initiative sufficient funding, with the aim of establishing a fleet European Union's "green" traffic vessels EU's internal maritime system.

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