Cabinet and sector strengthen shipbuilding: need for greening and safety | News item

News item | 26-10-2023 | 2:00 PM

The maritime sector and the government are taking measures to keep our feet dry, accelerate the energy transition and guarantee economic and military security. These are included in the sector agenda that envoy Marja van Bijsterveldt presented in Rotterdam to ministers Micky Adriaansens (Economic Affairs and Climate), Mark Harbers (Infrastructure and Water Management) and State Secretary Christophe van der Maat (Defence). The government and sector have agreed to immediately start working on an active industrial policy. In 2024 and 2025, they will therefore jointly invest €60 million in innovative shipbuilding.

The sector agenda indicates how important shipbuilding is for the Netherlands, where the opportunities lie, how we strengthen the maritime sector again and prevent undesirable dependencies in the area of ​​safety, for example. It turns out that the critical lower limit is in sight. Among other things, the Netherlands has insufficient competitive construction capacity for naval ships and specialist work ships, while this is desperately needed for our safety, our vital infrastructure, protection against water and the energy transition. The government and sector will therefore each allocate €30 million for technological and sustainable innovation over the next two years.

Marja van Bijsterveldt (cabinet envoy): Our maritime manufacturing industry is wrongly regarded as a quiet asset. Together with other countries in Europe, we have lost a large part of our global market share for commercial seagoing vessels to Asia in just a few decades. From 45% percent in the 1980s to 4% now measured in built ship volume. With vision and strong government support for companies, Asia and recently China in particular are taking over our industry step by step, including for more complex ships. According to shipowners, building a ship in the Netherlands is now 20% to 40% more expensive than in Asia. Shocking figures that will ultimately be disastrous if we do not manage to turn the tide. The Netherlands depends on ships for our safety, dry feet, energy transition and prosperity. We can no longer afford the laissez-faire policies of recent decades.”

Minister Micky Adriaansens (Economic Affairs and Climate): “Investing in a future innovative and clean economy is necessary to keep the Netherlands liveable, prosperous, safe and competitive. We must first earn in order to distribute. The maritime manufacturing industry is an excellent example of a sector that faces challenges in terms of sustainability, protecting national security and maintaining competition. So we want to keep that industry here in the Netherlands and not only that: we want to strengthen and innovate. That is why it is good that there is now an agenda including available financing that clearly explains with actions how the sector and government should ensure this together.”

Minister Mark Harbers (Infrastructure and Water Management): “It is important that the Netherlands itself builds the ships that are necessary for our safety. Consider, for example, the ships of the National Shipping Company, such as dredgers that ensure that our rivers remain safe and navigable, or naval vessels. Or think of trailing suction hopper dredgers: they spray sand to protect the Netherlands against flooding. The Netherlands Waterland has traditionally been a seafaring country with a strong maritime sector. We have a lot of knowledge and skills in-house to build these complex ships. And we want to keep it that way. The Maritime Manufacturing Industry sector agenda presented today presents actions that should ensure this.”

State Secretary Christophe van der Maat (Defence): “The Dutch maritime manufacturing industry is of essential importance to Defense. Not only because of their knowledge and skills, but for military security. I am therefore pleased that cooperation between the sector and the government is getting this extra boost. This strengthens the ecosystem surrounding the maritime industry, which is essential for European autonomy. This requires the industry to unite better, also internationally, in order to get more out of the new construction orders and outsourced maintenance of the Royal Navy. Sitting still is not an option for either party. It is not without reason that Defense invests €50 million annually in maritime innovation such as robotization and sustainability. Apart from innovation, collaboration in the field of personnel is also part of the sector agenda, such as recruitment of reservists and the exchange of qualified personnel.”

Five lines of action from innovation, business climate to purchasing

The sector and government will work on 25 measures for 25 bottlenecks, bundled into five lines of action. For example, a formal instruction (instruction) for the entire central government stipulates that national interests must be better taken into account when purchasing ships. The government and sector will work on improving financing and fiscal shipping regulations. An inventory is also being made of how attractively located shipyards can be better protected against the threat of housing construction. The sector itself will start tackling the staff shortage.

Five frontrunner projects for impetus

In response to the agenda, the sector and the government are also jointly developing five frontrunner projects. These projects provide a major boost for the use of new technologies, working methods and revenue models in the production, conversion and repair of ships. Examples of leading projects are The shipyard of the future and Nuclear propulsion of ships.

With The Shipyard of the Future, construction costs should be reduced by 10-15% and construction should be made more sustainable through digitalization and robotization. Nuclear propulsion of ships explores how nuclear technology can be applied to make our shipping more sustainable and allow it to remain at sea for the long term. Also the Maritime Master Plan is one of the leading projects. This plan to build up to 40 sustainably sailing ships that run on, for example, LNG, methanol, hydrogen and even CO2 received €210 million in support from the National Growth Fund this year.

Better sector cooperation, establishment of the National Steering Office and appointment of envoy

On average, the world fleet is now 22 years old, while a ship has a lifespan of approximately 30 years. Within seven years there will be a major replacement demand. The sector can use this agenda to prepare for this. In addition, the government is setting up a so-called National Maritime Manufacturing Industry Management Agency, modeled on the British National Shipbuilding Office. In addition, the cabinet has decided to appoint a long-term maritime manufacturing industry envoy to succeed temporary envoy Van Bijsterveldt. The Minister of Economic Affairs and Climate Policy will appoint these.

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